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The question, Mr. Speaker, which should engage the serious attention of us all is not so much how we got into our present financial difficulties as the best means to be devised and employed to retrieve our position and how we may best bring down our annual expenditure within our ordinaiy annual revenue at the very least, and provide for the gradual extinguishment of our provincial debt. There is no denying the fact that for several years past our ordinary revenue, aside from unexpected extra revenue, and I might say, even with unexpected revenue, has not been sufficient to meet the expenditure made. There have been annual deficits, larger or smaller, as the figures were manipulated, for several years, but beyond question deficits from $300,000 to $500,000 a year have occurred. This state of things it is impossible can be allowed to exist any longer, unless we make up our minds to perpe- tual embarrassment and practical insolvency at no very distant period. To do this would destroy our credit at home and abroad, bring dishonour upon our province, and on all connected w^ith the administration of public affairs. Upon this part of the question there is no difference of i 6 opinion I'ither in this House or the country. No one with even a pretonco of wishing for the prosp^'rity of our pro- vince would venture to recommend an expenditure above our receipts or the - largo annual deficits as heretofore. We may therefore conclude, I think, with (confidence, that all are convinced that the former financial state of things must cease, that radi.al changes are recpiired in our disposal of public; funds, and that some means must be devised to bring our finances into a sound, healthy state. (Hear, hear.) THE CAUSE OF EMBARRASSMENT. It is hardly necessary to state to this House, that it is the large expenditure on railway construction which is the principal cause of our temporary financial difficulties, and by this expenditure the province has largely benefitted m almost every section thereof Our entire funded debt, the interest and sinking fund upon which press so heavily upon the treasury annually, was contracted for railway purposes. At the same time I may be allowed to say that we have been extravagant in our expenditure upon other branches of the public service, which, in view of our large expenditure on railways, should have been curtailed, but which was kept abov, vnat our annual revenue would warrant. I must acknowledge that I have been puzzled a good deal as to the best means to be adopted to equalize our expendi- ture and our receipts, and in the means I propose to this end I trust I shall have the assistance of the honourable members of both sides of the House ; feeling sure that though some difl^erence of opinion may exist as to the means to be employed to accomplish the desired result, still the result to be obtained is so important, so necessary to the prosperity of our province, in which we are all interested, that all will unite with me in devising and 6 cirrying out sudi moiuiH as will phuo our finain'os in a bouiul bu!siiu.'Ns-liki' coiulition. (Applause.) To do this it stH'inK to mi' wo must cither iufivuso our annual revonuu very tonsiderahly, to moot a like expenditure with Ibrnier years, or we must materially reduce our expenditure if no .snital)le means are found at oi\r disposal to inerease our revenue. REVENUES CANNOT HE INCREASED. I think this proposition will comuiend itself to all onr minds as sound and Judicious, and with respect to increas- ing our revenue, it must be appan-nt to everyone who is a.quainted with oixr iinancial position, that, aside from the amount receivable from the Dominion Government, it will be exceedingly difficult to increase our revenue much from the ordinary sources upon which we have hitherto relied. Our Crown Lauds reveniie cannot be expected to reach in any future year even so high a figure as it did in 1882-83, but must in the nature of things gradually diminish as our woods and forests are depleted of their valuable timber. Our revenue from Law Stamps will not increase and in fact is now as high as with propriety ought to be exacted and many think the tax should be reduced. Our revenue from Licenses must, by the Dominion License Act of last session, l)e mattn'ially reduced. If the Dominion Law is declared constitutional, and if the right oT (titles to limit the mxmb.^r of hciinses to bL^ issued is carried into operation, the only recourse we have is to increase the License fees. If a monopoly is given to liquor sellers, they must pay for the privilege somewhat in proportion to the redu tion made in the number of t'lose who are licensed to sell liquors. This is only fair a id will be gladly aci^'ded to. Our other sources of revenue are few and fluctuating and cannot with propriety be increased. And there we are, as respects our former genei-1 revenue. TlIK PEOPLE THE TAX-PAYEllS. It should be always borne in mind that when we speak of revenue from the province, it is from the people that it must x-ome directly or indirectly. Many people have an indefinite idea that somehow or other, revenue can be collected without troubling- the people in any way ; they can't explain how or in what way revenue is deriv- able, and never seem to think that money for expenditure by the Legislature must come from the people in one way or another. The people must furnish our revenue in some way and it should always be remembered that the Legi-.- lature in appropriating monies for any publi.- service, is disposing of the people's money and is responsible to them for the disposition made of their funds. (Hear, hear.) If then our expenditure for the purposes of government 18 continued as large as heretofore, there must be addi- tional burdens placed upon the people in some shape, and a resort to direct taxation of the people has been suggested as the best means to supply funds for the public services of the province. THE REDUCTION OP EXPENDITURE. But, Mr. Speaker, there is another way to equalize our expenditure to our receipts than by taxation of the people, which, in my humble opinion, is a "more excellent way '' and that is to reduce our annual expenditure largely upon the various services which the aoverument is called upon toMmiuister. In the first place the public business of the country must be attended to, and although there are certain services and expenditures which we cannot reduce without injuring our credit and doing injustice to third parties and to the general public, still there are— without injuring the public service of the country— retrenchments which should be made in almost every department of the public service. Every item not actually required in the public iii 8 interest should be cut off, and things brought down to a business basis. (Cheers.) I see no good reason -^vhy our departments should not be conducted as a larg«i com- mercial establishment would be, our expenses scrutinized, and our receipts as carefully looked alter as a commercial firm would do. This then is our position ; all agree that our former large expenditure must cease, or increased taxation must be placed upon the people. I cannot for a moment conceive that any member of this House would advocate continuing our course as heretofore,which would entail annual deficits upon the province, and the question naturally comes as to what is the best course to pursue, — increased contribution from the people or a largely diminished expenditure. Before considering this qviestion, I will now proceed to give a short summary of the receipts and expenditure for the fiscal year ending the 30th June last. I need not go into details, ?.s the public accounts, now in the hands of honourable members will explain these, but a short resume may help members in the examination of those accounts and be of some service to the general public. I have had pre- pared a summary of the receipts from all sources and of the expenditures for the last year, whitsh will, I think, as nearly as possible discriminate between ordinary and extraordin- ary receipts and expenditures. Upon the former there is evidently a deficit of nearly |300,000, taking the most favor- able view of the position, and the only way to know how we are progressing from year to year, is not to include loans and other extraordinary receipts amongst ordinary revenue, or on the other hand extraordinary expenditure among ordinary payments, in judging whether we are paying our way or running behindhand in our business, thai is, paying our expenditure for the ordinary services of the country out of our ordinary revenue. There are certain items of expenditure beyond the control 9 of the legislature or the executive which must be met at all hazards. For instance the interest and sinking fund upon our lunded debt, the care of lunati<-s, certain expenses connected with legislation, the administration of justice education, etc. ; but on these in part and many other services the expense can be (Controlled to some extent, and It IS to these which I would call the attention of the House and in respect to which I rely on the common sense, good jxidgment and patriotism of honourable members to sustain the Grovernment. Allow me first, howe. to give a brief approximate statement of the LIABILITIES AND ASSETS of the province made up to the Slst December, 1883 :— LlADILITIBK. Funded debt at 31st December, 1883, outstanding.. $18,307,826 67 Less amount includetl in api)ropriation for 1883-84 for Sinking Fund 57,730 83 $18,250,095 84 temporary loans and doix)sits 45'' 665 24 Kailway subsidies, authorized but not yet earned. 1,605075 75 lialance of appropriation and special warrants for 1883-84 , ,,, Olio Balanceof estimated cost of Parliament" i?ui"ldinir' ' ' ^^ say ' Balance of land debte Q.' *m'.," O. '&a Eailway"not ^^^'^ ^ mcluded in appropriations and balance due con- tractor , , , „„ 111,936 86 Amounting in all to $22m,mm Amms. Part price of Q. M., O. &. O. Railway paid and in- vested 1^ BalanceofpricoofQ.M.:o:'&ap.aii;;aynoVy;; '^ "" ' due „„„ 7,000,000 GO Appropriated by law ae sinking fund upon the first three loans • • _ ,„ -' 7,600,00000 10 Quebec Court House debonturos to bo issued 150,000 00 Deposit in Bank of Montreal, part proceeds of loan of 1882 1,500,000 00 . Cash in Bank 157,2()1 03 Balance estimated receipts for 1883-84 1,750,353 03 City of Montreal, ditferonco between $132,000 and cost of lands expropriated between Dalhousie Square and Hochelaga 74,507 58 City of Montreal subscription to Hull Bridge 50,000 00 Loans and balance of interest on school lands due by Ontario 136,000 00 $11,424,182 24 Leaving balance of liabilities over assets $11,259,202 52 It will be observed that I have included in the above statement the balance of appropriations made by the Legis- lature and of special warrants for the current year and not paid at the Slst December last, amounting to |2,113,611.0'7, which is a claim upon the province, and on the other side I have included the amount of the estimated receipts not received on the 31st December last, so that, in case the appropriations are all called for and paid, and the receipts as estimated are all received, there is a difference against the province of some $357,258.04. I am satisfied, however, from the large amount contained in the supplementary estimates for the current year for services over what was appropriated at last session that the difference will be larger than I have stated. It will be noticed also that I have not included in our liabilities the amount claimed by the Dominion Government up to the 30th June, 1882, of $889,551 for over-payments on subsidy and interest, because I do not consider the amount claimed as either just or equitable. Nor have I on tbe other hand included what may hereafter be realized from the Municipal Loan Fund debt, leaving these two accounts open in the meantime. COMPARISON WITH ONTARIO. Let me remark here that while we would not rejoice at our sister province Ontario falling behindhand in its 11 finances, at the same time that province has been held up from time to time as a model for our imitation, and its large surplus from year to year has been pointed to as showing good management as compared with our reckless manage- ment. I copy the following from a statement in a lead- ing newspaper compiled from the Budget Speech of the honourable Treasurer of Ontario and from our public accounts. The article goes on to say : " If we take the ordinary expenditure of the two pro- vinces for a period of two years we have this result :— ■ Ontario , J .... 1«71- 1883. Ovn Govornment n^i^ * 1; g Public In,stitution,s l!! gjg ?]Kg Immigration 29 71" d7 7rl Agriculture 74-927 *^'^*p Miscellaneous 34;55,j J^^'go ^^^**^ $1,0941)54 $2,065,066 In this period the public expenditure of the province has increased about a million dollars while the revenue has remained about stationary, the receipts from Crown lauds having been as large in 1873 as last year, the result being the conversion of a substantial surplus into a deficit of «450,000. To-day the province is living upon the surplus and It IS only a matter of time when the resource will disappear altogether, it having been reduced from |5 756 - 352 in 1874 to $4,384,241 at the close of 1883. ' ' The expenditure of Quebec has been as follows :— X . , .. 1871. 1872. lAigisiation (E 1 00 001 a. 1 „., , „ Civil Govornmont :. * Jgfe * J- g {^Sion::::::;:::::;::-:: -• ^ S S"'«.J. Works ?3lfe iS '^°**^ $1,420,001 $1.7"27i017 12 The increased expenditure in Quebec in twelve years has thus been only three hundred thousand dollars, against an increased expenditure in Ontario of a million dollars in. the same period. It will be answered doubtless that Ontario has provided asylums, prisons, reformatories, etc., to a much greater extent than our own province, that the wants of the people are better supplied, and education has been more widely disseminated, but when it suited the political exigencies of the reform party to misrepresent the financial condition of Quebec, to slander the administration of the Conservative p. "ty, none of these considerations were obtruded. The item of civil government is not unfairly deemed a fair test of the economy of government. In Ontario, the expenditure under this head has augmented ^,285 since IStl ; in Quebec the increase has been only ),.561, or not much more than one-half, and a similar favorable comparison may be instituted of nearly every item of expenditure in the two provinces. It is true that Quebec has had defitnts for some years past, and that once or twice these have been as large as that of Ontario last year, but this fact is not in any sense a sign of extra- vagance or misgovernment. Ontario has no debt ; it has abstained from liberally subsidizing railways ; it has con- tribu,ted not a dollar to the construction of the great national highway, the Pacific Railway, from the provincial treasury. Quebec, on tht other hand, has not only subsi- dized purely local roads, to the same extent as Ontario, but it has paid the whole cost of construction and equipment of 300 miles of railway from Ottawa to Quebec, a national work accruing to the advantage of the Dominion treasury. In 1883, the receipts of Ontario were, $2,439,941 and the expenditure $2,887,037, a deficit of $447,09(3. The interest on the debt has been omitted in the payments by Quebec, but this must be done in order to fairly compare the posi- tion of the two provinces." (Cheers.) 13 ^ t^! ^f?' '^ '" "° "'^^*®'' oi' rejoicing that Ontario had a dehcit of 1447,09(3 and an estimated deficit for next year of a like airount ; at the same time it shows that our province IS not alone in not reducing- the expenditure to the receipts with this difference against us, that we, having a lar-o debt for railway purposes, should have been more careful than was necessary in Ontario, inasmuch as she had no debt and had a large surplus to fall back upon. In this connection it should always be kept in mind that we are under the necessity of keeping up two languages in all ot our proceedings, involving the employment of educated men as translators, the printing in both languages of all our public documents, thus more than doubling the ex- pense of most of our proceedings, over what the other provinces have to incur. This is frequently overlooked m comparing our expenditure with that of other provinces, and injustice is done us in such comparisons, because our peculiar position is not remembered with respect to the extra unavoidable expense connected with our two languages in all our public documents. (Hear, hear.) RECEIPTS AND EXPENDITURE IN 1882-83. I now come to the receipts and expenditure for the year ending 30th June last, which I need not refer to at length, as the public accounts contain all the details, I only notice some of the prominent items on either side of the account. RECEIPTS. Dominion of Canada $1,014 712 12 Ontario— Intoi-est on procoods sales Common School ^'^"^V; 25,00000 Crownlands 807,91100 Y'^^^^^ 298,931 19 •i;tr":« 218,42640 riiDlic oihcers— percentage 7 080 86 '^?'«i^tion ;;;;; ^'^^^,^^ Ulhcml Gaisette 18,020 21 14 Asylums — contributions from patients 6,623 88 Public buildings 2,244 06 Casual revenue 1,572 80 Pension grant contriljutions 0,494 87 Interest 10,216 92 Repayments 11,000 GO Quebec fire loan — 701 67 Municipal loan fund 34,120 10 Traflic receipts— (J. JI. O. and 0. Railway 54,949 89 Interest on price, do 259,384 40 Direct taxes 15,895 73 Teachers' pension fund — contributions 16,893 16 Refunds 2,955 42 $2,817,841 73 Trust funds, marriage licenses and interest on R.C. Sup. Ed. deposit 35,272 03 Special security deposit — (Forget and Co. loan con- tract) 30,000 00 Instalments— price of Q. M. O. and O. Railway. . . . 600,000 00 Sale of railway material, &c 56.146 20 Proceeds of loan, 45 ^'ic., Cap. 18 1,116,500 00 .f4,655,759 96 EXPBNDITUEB. Public debt $ 889,794 00 Legislation 191,841 81 Civil Government 205,258 64 Administration of justice, including police, reforma- tories and inspection 445,989 94 Riblic instruction including teachers' iiensions 354,457 00 Litt^rary and scientific institutions 14,91)0 00 Arts and manufactures 10,000 00 Agriculture 84,768 00 Immigration and repatriation 15,000 00 Colonization 76,392 72 Public Works $184,528 57 Less to be paid out of loans (see below) 10,043 46 174,485 11 Lunatic asylums 232,000 00 Charities., fi!»,121 61 Miscellaneous— Creneral $ 22,735 76 Do.— Damairea defective surveys 15,443 00 38,178 76 u Engineers for mining' pur|)Ow,h o mo oa Agent in France -M08 30 Municipal loan fund-salary un.l' oxihuihoh of con'.^ "'""^ °^ missionor Crown lands oxiwnditurn , 1,'!'^'' "" Stamps, licensee, & 139,0:J5 00 Revonuo Police i^'isg 04 , Official Gazette "'"°" ^^ Pensions \\]\\ ^^'^t^ ^'^ Municipalities' fund ..'.....'.'... 1 4,0r)2 01 Liconses-Paymenta by revenue "o/ik'„rH"out "of '''^^ "° collections Justice-Do. do .;;;; 21,11422 Traffic expenses-Q. M. 0. and 0, Kallway ." .' ,' .' '. ." .' .' „0,621 90 Trust funds (distribution nmrriaKoli,«mHeMnin.land'^'''^""'^"^ ^^ payment of $500 on R. ('. Sup. Kd. dc.poHJt) .... 7 noo nn Special security deposit-Kej.ayment .,„ nm "n Payments out of proceeds of loan I'nrlian.ent ' building Quebec Court House ........'..'.'.."."' '''7"? ^^ Quebec Central Railway guarantiw'dmioNJt .'.',' '.''.',* iioaon S Railway subsidies ii^.i-.) 07 09,057 90 Q. MO. & O. Railway constru.ition and lands 551 025 616 Do. Changing line from Prince Edwar.I Htr.n.t to bo met by subscription of City of qmhu: 31 875 00 Balance. $3,962,015 77 • 093,744 19 Memo ; Cash on hand Ist July. 1882. $4,055,759 96 $370,172 78 40,632 37 Less unpaid warrants at 30th June, 1HH2 (since paid) Balance of receipts and payment* for year 1882.83. . ^Sljti 19 Cash on hand 30th June, 1883. . ,. $1 125 '(35 24 *^'^^2,284 60 Less unpaid warrants ' „;,;,;,o ,,4 ^^ ,032,284 60 Character of the Revenue It will be observed in the ntateinent «ubmittod that our tr'>wii iand« revenue for the year undiiiff 80th June last is 16 larg-er than for any previous year. In view of the depres- sion ot the lumber trade at the present time and th(^ fact that the quantity of lumber cut during the present winter is by no means up to the average, our Crown lands receipts for the current year and especially for the next fiscal year will probably bo very much diminished, and I have therefore not estimated the receipts from this sources as large as some previous yiuirs' receipts might at first seem to warrant. The receipts from licenses last year were large, but in view of the Dominion Liquor License Act, 1883, and the confusion consequent upon the uncertainty of the constitut'onality of that law which involves the constitu- tionality of the Quebec License Law of 18*78 and amend- ments, it is very difficult to 'foresee what the effect will be on our revenue from this source. The Dominion G-overn- ment by statute has declared that the holders of pro- vincial licenses shall not be prosecuted by the federal authorities for the next license year pending the decision as to the constitutionality of the Dominion and Provincial license acts so that we shall proceed as heretofore under our own law. The other items of revenue submitted are pretty much the same as in former years, except the interest on the price of the G-oveniment railway sold, whic'h under the law must be applied only to payment of interest on part of our funded debt. CONSIDERATION OF THE EXPENDITURE. As to the expenditure, the largest item is interest upon our debt, $889,794, which we cannot reduce and which must be punctually met in order to preserve our credit abroad. The next largest item of expenditure is fo» the administration of justice, $445,989. I am in hopes that we shall be able to effect some considerable reduction upon this item next year. Then cotties public instruction, $354,45'7 ; upon this I do not propose to effect any material ivdu.tion. The important, of oducating our people is so apparent that I r,>el sure that it.is one of the hist objects thi. House would wish to see the expenditure diminished upon. One of the lirst thin-s which I would like to do would be to in.rease th,. grant for educational purposes due regard beuig had to a proper use being made of the appropriation. The next largest item is for civil govern- ment including (•ontingen.i..s, .i;205,258.64. I am in hopes w.^ can reduce this amount considerably next year The other items do not call for r.-mark except agriculture and colonization. It should be borne in mind in this connec- tion that the railway focilities obtained by the grants ol the province towards railwav construction alford one of the best means for coloni^^ation purposes, and that those counties which have had railways built through them since Confederation should be content with much less tov^rards colonization roads than heretofore. !o Vt^ "'''** ^'''*"^ ^^*''''' *^''' ordinary receipts amounted to $2,817,811, and the ordinary expenditure to $3,120,502 The other items of receipts are trust funds, proc^eeds of loans, and the other items of expenditure are for railwav subsidies, public buildings, &c. SUPPLEMENTARY ESTIMATES FOR THE (CURRENT YEAR. n^Iv^'lT- ''T'' ^"^ *^*' supplementary estimates for the curient hscal year, amounts eith(>r not provided for in the regular appropriations mad(^ by the House, or expenditure over and above the appropriations made, and which I preier to bring directly before the House' for (consideration rather than to issue spe.-ial warants to be voted en bloc after the money is paid, or to have payments made on special warrants, instead of a vote of this House. I would here remark that these supplementary estimates are for indebt- edness contracted by the former government, and will increase the expenditure for the present year over and above 18 what was voted by the Houso for the respective services mentioned, and which the i)rosent government could not control as the debts were contracted and obligations incurred belbre they assumed olHce. I rogrot the amount isso large and unexpected, but I lay them ))efore the House for adoption. And first on Legislation : — Ii(i;;iHlativo Council. Salaries and t'ontin^;oiit(ix[Kinso.s, catLsod by tliofiro.. $10,000 00 Logislativo Assombly. Salaries, contingent ox{)on8o«, nalurios of extra derks, stationery, printing and bindiiij:, i*i;(' ]ii,Ono 00 Library of tlie Iie^'i.slature ]5,(K)0 00 Exjmii.'^os of elections 5,000 00 Printinji, biiulini? and distril)iitinj; tlio laws l,'2o7 29 Bourinot's Parliamentary pi^vx-eduro 750 00 Total for legislation ii!51,017 29 The first item, Legislative Council, is for contingen- gencies caused by the burning of the parliamentary build- ings and has been already authorized by vote of the House. The next item. Legislative Assembly, is for increase of salary to the Speaker's messenger, $200, to correct an error in the statutes which contains |7,167 instead of $t,617, a clerical error, six and a half months rent of house of the sergeaut-at-arms caused by the fire, $130, and on contingencies to buy articles indispensably necessary destroyed by the fire, !|2;j0, making together $1,030 ; and also for sessional clerks $2,400, messengers and pages $1,800, stationery $2,000, printing and binding $10,000, and sundries, 1,800, for library $15,000, in all making under the head of Legislation $51,011,29. Of this amount special warrants w^ere issued for part of the amount which the vote of the House will cancel. Contin^'oncios of Pulilic Dopartnionts $4,385 00 For contingencies of departments, to finish the year $4,385 is required, principally for extra help required to make out returns to the House, &rc. IP HofommtorioK iit Mimtmal ami Jxn'Ls l A;/rirH/ltir,; ,sli(,rt ap,.r(ipriiit(«l $i ,-,(,0 Inimi«rati.)ii and ri«i.iaiiati„n r/d,,,, BridKo ovor Kivcr Sto, An.nv ( I!a,.on'..,) (.M.nn.'ploto " ',-„•;.. $7,05(» Public works an.l l)uil(li„;.s, rents, in.surancas, renair.s to public l)uil.linKH Konorally ,<42,282 Of) lu.MHl not ivfer to those items particular! v ; the «,sti- ma .s show what they aro tbr-ou Publi.- work« and H n f ;?''^7^"\^*'''^ '^"^"^"'t lor temporary a.-rommo- (lation lor the Loyislaturc, in all, !|42,2H0. Then we have the following items :— Cbarition Mi,scoiianoon« .■■■.'.';.■'.■.;;;; ^ '■""!;" Gonoral oxpun.lituro Crown Lands' to' provl.io' for '''^"' "" ovor.lrawn umnint ,...„ .„ Railways ..'.'.'.'.'.'.'.['.[ 't-? f ■ IJcing for construction purposes Q. M. O." aiid O ' " Railway, balanco on land cxproi)riat«l, riKht of way, $lf»0,000 on account of award infavorof Hon liionias McGroovy.an.l $(i,70() fortrallic cx,x''i for the next year. It ib well known that the City Council of Montreal, and . I'rom the he Hurplus t)7, and lal- ihi' inlercfst itt'vest at 5 (>r. Ill tho vor*' ciM'tiiiii tht> iiitfivs-L "ditcd to us iveiniludt'd d not havo mt with the loixld Kiand. a statenit'ut ?ive in addi- iswcr a tole- ioncd ahovo, gvin.ooo 00 1 Lands sold $225,000 00 hat we may 1 part of the lly with our rtainty v lii>t leuhito upon Iff the Domi- nil be insti- our Li«'cnse r licenses as be materially Montreal, and 21 other cities acting under the Dominion Licens,. A.t of 18h:5, redm-ed larg,>ly the number oflicenHcfl whuh could be issued umlcr if i„ ,hosc .itics, but in carrying out the fyuebe.' license law of 1H7« and amendments we could not recogni/e for the next year the right of the City tounci to enact any such provision. Hereafter, if our law is d^K-lared to be .-onstitutional, as I have no doubt it will be, I shall be pleased to limit the number of licenses in Montreal and other .ities to.orrespond in some men> ure with the publi,! sentiment. We eould not get throu-h a measure this session in the uncertainty which exists iw o the .constitutionality of both the federal and provincial laws without in a .ertain degree at least acknowledging th < rights oi the federal authority to interfere with the right and privileges of this Province, which we must protect at all hazards. Krom Crown Lands j,,,,,^^ The Crown Lands Department estimatetheir receipts Irom all sources for the next year at 1 600,000, an amount 1 hope to see increased even under the depressed state of the lumber trade. This sum is about $200,000 less than was received during the past year in that department. Achnini,stration of Justice :-From this source the amount is ostimatod in all at the sum of $ 227 90) oo mado up as follows :— ' ^ ^^'':f"T S170,00000 RoK'i«trut.on.lo jj. ,)oo ^^^ -Law lo*)s exclusive of stami)s o,5()() 00 Building and jury fund i4|oo() oO Maintenance of vagrant prisoners 8,000 fX> Houso of Corroctiou, Montreol s'ooo 00 Uaol.^ds ^'4(,oyQ !''««« 100000 Montreal CouriHouse .5 000 00 From I'ublic Officers.— I estimate the receipts to be- On percentage on their fees $ 0,000 00 Fees oil roaewaio i i^ooo ,|(, Casual revenue 2 000 (lO Pension fund contributions (j^odo o(i Interest on deposits, &c 75,0(i(i OO Quebec tiro loan ] 000 00 80,000 00 Interest on (J., .M., o. and 0. Uaihvuy ijso (kki (mi Municipal loan fund io„|„„(, ,„, yv(^K(vm(»/s.— ]5eanf(jrt asylum s 4,000 00 St, Jean do Dieu 4 5,1,, ,„, ,. , 8,500 00 Quol)ec Court House debentures loo.ooo 00 '^^^^^ $3,112,022 80 As we have appropriated the full amount of the grant lor building the Quebec Court House, I take credit for the full amount of debentures to be issued. If, however, the whole grant is not paid, the whole of the debentures will not be issued. I want to have no loss of interest to the government upon the bonds when issued. THE COMMERCIAL C^ORPORATIONS TAX. It may not be improper, Mr. Speaker, to refer to the legislation had two years ago by this House with respect to the at;t entitled " An Act to impose certain direct taxes on certain commercial corporations." Everyone knows that many suits were instituted to recover the taxes imposed by that act. That ther(> are one or two suits pending before the Privy Council in England is also well known. Upon the result of the decision of the Privy Council de])ends whether the province will receive some $200,000, or have to refund what has already been paid, together with a largo sum for costs in the suits instituted— the whole of th(>so, as I understand the question, to be 28 governed by the judgment of the Privy Comwil I need express no opinion as to the wisdom of the course pursued on the subject alluded to. I shall" only be too glad to receive a considerable increase to our revenue, rather than have to disburse a considerable sum of money, to repay amounts received some years ago and the costs incurred m the suits now pending. If our law is declared consti- tutional, we shall receive additional revenue, and if othp- wise we shall have to disburse a considerable sum not provided for in the estimates submitted. I have, Mr. Speaker, given the estimated revenue for the next fiscal year as near as circumstan(;es would permit which I hope will be realized, and have laid before the House the appropriations asked for the same period in the printed estimates now in the hands of the members. THE PROPOSED EXPENDITURE. I will now give a synopsis of the differences between the amounts actually spent for the various public services during the year ending 30th June last, and the amounts voted last session and asked for by supplementary estimates tor the current fiscal year, both these being compared with the amounts asked for for next year's expenditure, in order that the honourable members may be better able to judge of the reduction made, so as to enable them— if I have not gone far enough in cutting down expenditure— to make suggestions as to other sums which may be reduced, to which I will be much pleased to give everv consideration. LEGISLATION. To show what retren( hment has been made in various branches of the several departments. I find there was paid - T -Tislation in the fiscal year 1882-83 the sumof .$191,- and the estimated expenditure for the current year for 841 ^' 24 wss pvit down and voted by the house at $10(;,'772,20 and the appropriation asked I'or next fiscal year I put down at >^145,482.o0, showing an estimated expenditure for next year of |4t5,3.3!t.;Jl h)ss than was paid for 1882-83, and $51, - 289.79 kiss than was voted the current year, including always the supplementary estimates, a beginning, at least, in the right direction. CIVIL (lOVERNMENT. The cost of this branch of th(\ public service for the year 1882-83, was ^ir)2,908.(i4 and the estimated expenditure for the current year voted by the house was $169,305. The appropriation for the next year is $141,150. Upon Contin- gencies of the departments* there was paid out in 1882-83 $52,328.85, and appropriations I'or the current year were $51,985. The vote asked for now for Civil Grovernment including Contingencies, amounts to $185,750, being less by $19,487.49 than was spent during the year 1882-83, and $35,540 less than the appropriations made for the cairrent year 1883-84. This reduction, I hope, will be satisfactory to the House, and I am not without hope we may succeed in making some further reduction without interfering with the efficiency of thi)^ branch of the public service, (hear hear.) As I have repeatedly stated in the House I am no advocate for obliging public servants to work for a bare livelihood. I am in favor of good iiiir salaries being paid to good faithful employi-es and dispiinsing with the services of those who are inefficient, or who neglect their duties. In some cases employees are not paid enough. ADMINISTRATION OF .JUSTICE. The amount paid for the year 1882-83 on Administration of Justice was $372,400.87. The amount voted by the house for this yeiu' was $387,052, and the ajipropriation I ask for the year beginning the 1st July, 1884, is $347,367. This 25 shows a reduction of $25,033.87 upon the expenditure of l«HL-83, and a reduction of $30,685 on what was voted last year. I need hardly repeat what I have for the past ten years •said to this House, that th. expense of criminal justice should be paid by the Dominion Government, inasmuch as It IS lor the enforcement of their laws; and the fm^t that the administration of criminal justice was q-iven to the local authorities by the Confederation Act by no means implies that it was to be at their expense, but as we had courts ol justice established, and had the exclusive right to estaJ>lish such courts, that it was more convenient for us to administer the criminal law than for the Dominion authorities to do it. From some hints which fell fi'ora some members of the Privy Council in Ottawa I am in hopes we shall be relieved from the burden, or compensa- tion will be made to us, so as to assist in the administra- tion of criminal law. If no assistance should be rendered by the Dominion Government, it may hereafter become a question of necessity with us whether we must not resort to the same plan adopted by, I believe, all our sister pro- vinces, to place a larger share of the criminal justice upon the muni.ipal authorities than is now done, in order to relieve the provincial authorities from bearing, I may say, the whole of such expense, as at present is the case In the meantime, I hope that this will not be necessary. I now come to Police Keformatories and Inspectors of public offices. These combined cost the province in 1882- 83 the sum of $73,589.07, and the appropriation for the current year was $81,000, and the amount asked for in the estimates for next year is $65,800, showing a reduction in 1882-83 and oi $15,200 less than voted in last session for the present year. 26 PUBLIC INSTRUCTION. This item includes not only superior edut;atiou and com- mon schools, but expenses connected with these services, such as normal schools, school inspectors' salaries, deaf and dumb institutions, scientific and literary institutions, printing legal reviews, arts and manufactures, etc., etc. The amount spent in 1882-3 for these services was $3t9,- 417, and voted for the current year $376,980, and proposed to be voted for the coming fiscal year i|358,985, a reduc- tion over 1882-83 of |20,432, and over amount voted last year of $17,995. "With respect to the appropriation for common schools I have made no reduction. This is one of the last services which should be curtailed. The youth of our province should hav(^ as far as possible the means afforded them of obtaining at least the rudiments of edu- cation, more especially the children of our poorer citizens, and I should be sorry indeed to cut off" any amount from the usual grant for the maintenance and support of our common schools, and in this I am sure of the support of this House and the country. (Cheers.) I have, however, in view of the state of our finances, cut oflfthe usual grants to scientific and literary institutions which I would have gladly continued, were it not neces- sary in order to reduce our expenditure within our receipts. These institutions have, however, been sub- sidized for many years and are of such a character as should be self-sustaining, and in the meantime till our finances are in a more flourishing condition I thought the cutting off" from these institutions would do less harm than from some other objects heretofore receiving assis- tance from the Legislature, and which must in part at least be continued. There are some grants towards the reconstruction of educational buildings which have been promised heretofore, and contracts entered into on the strength of these grants I did not feel justified in not con- 21 tinuiug ; these will, however, be paid offin a year or two and will not be required, I hope, for other iustitntious. AORICULTUIiE, IMMIGRATION, UEPATRIATION AND COLONI- ZATION. These services Mr. Speaker, I know an, of a delicate nature, and knowino- the feeling of the House, with respeet especially to agriculture and colonization, and consideriuo- n' Tffl' ,r'^'^"'' oi' the province, I must <.onfess I had some difficulty in making up my mind as to the amount to be placed in the estimates for these two services. The importance of fostering agriculture and colonization in the th'T l!^7^r. "^ '^'' ^^''''' ^ ^•^^ know, and on the other hand the large expenditure on railways which prove the best possible colonization roads, pressed itself upon my mmd, but finally it was decided to place the same amount on the estimates as last year for agriculture and c-olonization, although I must say I felt that it was more than could be well aftbrded, and I trust hon mem- bers will be prepared to retrench on other services in order not to exceed our revenue for the coming year I recollect distinctly when bringing down the railway policy of the Government years ago, that I explained to the House that it so large an outlay was sanctioned for railway purposes honourable members would understand that of necessity the grants for agri<.ulture and colonization purpose must be diminished as the province coi^ld not bear the m erest on so large a railway debt and continue at the same time as large grants as formerly to those important objects. At that time the subject was perfectly unde- stood and the universal feeling was that railways must be encouraged at all hazards, as being most pressing and important for the interest of the province if we ^ou^d k.^p pace with our sister provinces and do our part in building up our Dominion. (Hear, hear.) 28 I should have been much pleased to have seen my way clear to have increased the j>Taut for colonization purposes, but my iirst duty is to reduce expenditure within our receipts, the next to make such reductions as will pro- duce the least harm to the public service, and in doing this I have acted according to the best of my judgment, which I hope will meet with the approbation of hon- ourable members and the country. "With respect to the grants for agricultural societies I have long been of opinion that the money thus spent did not produce the results we had a right to expect, and I am satisfied that a change in our law might be made, which would do much more good to our farmers than to continue our present system of small local exhibitions. The Government had, however, not time to prepare a new system lor this session matured sufficiently to be sub- mitted to the House. This must be deferred until another opportunity. Had it not been that the agricultural socie- ties had already made their annual subscriptions towards their respective societies, I should have suggested a cut- ting down from the usual amount, and I am satisfied that a change can be made in the law relating to agriculture which will give much better results than under the pre- sent system. The reduction made under this heading, aside from grants to agricultural societies and coloniza- tion roads, which remain the same as last year, is as fol- lows :— Paid in 1882-83, |1Y6,160.72, and voted for this year, f 190.'450, and the estimates for the coming year are 1162,100, showing a proposed expenditure of $14,060.72 less than was paid last year, 1882-83, and $28,350 le^s than appropriated lor this year by the House. PUBLIC WORKS AND BUILDINGS. Rents, insurances, ropairts of public buildings and inspections and surveys $ 46,394 New parliament buildings to come out of loans 110,000 29 New court Iionso, (iiuihttc .... Hepairs of ,.onrt I.ousc* an,| Kai-lH,' m^^n ' itnil 'inHu-' "''^'" rencos 15,257 In all nmoniiliii.' to « .,-1 ,--, In instituting a comparisrm of thn nxpondituro for last year 1 havo doductod tho amount ,,„id towards depart- mental and parhamont buiIdi.,i.H, ...s thny are not chLe- able properly as against ordinary revenue, hut are provided Jlol.702 14, and appropriated for the nirrent year ^^1%. 219, and the estimated exiKMulilur- lo he *141,(;r,l shew- :S{^:Zf'T''' ''''''' vvhat vva.paid in issts. and $13o,G28 from the amount ol' th.. eHtimate for 1883-84. OHAIUTIRM. The next iten. in order is eharitien. under which head we have lunatic asylums, misrelhuu-ous charities and relormatory and industrial schools. Lunatic asylum, Beauport, estimated at $] 22,500- St As to miscellaneous charities, the plan I have adopted s this :-The late government by (,rd.,r.in-(;ouncil deduc- ted ten per cent on all appropriations lor the current year. I have followed the same prin.uple with the exception of grants for the blind and deaf and dumb institutions, which retain their original grants. I ,,,uld not think of any redm^tion at present on these important and absolutelv necessary institutions. Provid.-nce has seen fit to inflict upon certain of our people the Iohm of sighi and upon others of hearing and spee.;h, and 1 consider it not merely a duty of the state, but a privilege, to endeavour to ameliorate their deplorable condition as much as possible 1 am sure the House will agree with me, that those 30 benovoleut and Christian institutions should not bo reduced in their grants. (Hear, hear.) Some years a"-o I visited these institutions in Montreal, and I was not only g-ratiiied and surprised at the improvement mani- fested by the pupils und(n- the care and instructions they received, but full of admiration at the Christian and philanthropic spirit manifested by th'^se in charge of these institutions and then made up my mind that every assistance I could render them I would gladly do to th(> best of my ability. All honour to the philanthropic individuals and communities who devote their means and personal efforts in aid of those so grievously afflicted by Divine Providence. With respect to the two last items in miscellaneous charities, reformatory and industrial schools. I am afraid some abuses have crept in as respects admission to these institutions, and the attention of the government having been called to the subject, means will be taken to remedy the abuses complained of and confuui these institutions to their legitimate purposes. The amount paid out upon charities of all kinds in the year 1882-83 was $301,121.0], and voted for the year !$299,080. The present estimated expenditure for next year is .|28(),464, showing an estimated expenditure of $14,057.01 less than in 1882-83, and $13,210 less than was appropriated for the present fiscal year. The next item in order is MISCELIiANEOU8 (GENERALLY, which does not require any particular remarks. Th(^ amount spent on this service in 1882-83 was $.')9,038.2!), and voted for the current year $72,490.20, I propose asking $43,750, being 15,888.29 less than spent last year, and $28,740.20 less than voted by the House for the current year. 31 COLLECTION OF REVENUE. The next item is collection, mauao-ement and other charges on revenue. The Crown lands exp.uiditure has been curtailed considerably, limiting the expenditure to those services actually required. .AIunicii,aIitio.s fund L. C, cap. KjO $ .. ^j^^, Registration sorvico tlirou(;h Crown lands i-'nnn Snrvoy.s do ,'Y'"^' General expenditure .."."'.."'.!!.'.".", , 'J^*^' Deposits Crown land ,snsp(ui,so account '..'. '.'. '.'.'. il'nnn Otiioial (tazotte ■"• ^'""'^ Stamps, licen.ses, etc ," i-'^** 1 »>j(n )0 .*ir)7,30S There is one item in Crown lands expenditure which is new, and to which I wish to call attention, viz., deposits Crown ands suspense account, $15,000. It is customarv ior parties to deposit monies with the Crown Lands Department awaiting enquiry whether the land asked for IS for sale. If not for sale, parties making such deposits have a right to have their money returned. Heretofore the money returned to such parties has been taken from general expenditure" item. Now, I think that inasmuch as the money received on deposit as mentioned is placed among'st Crown lands receipts year by year, and in some years larger sums were repaid, thus showing a larger expenditure than was actually the case for services ren- dered the department, there should be a special appro- priation made by the House for such repayments, and that the amounts repaid on deposit should not be chargeable to general expenditure. I have introduced this new item for the purpose of discriminating in future between the two Items mentioned. The amount paid out during the year 1882-83 on the services mentioned was $1^6,881.64, and voted at last ses- sion lor the current year $202,809.49, and the amount 82 ank.-d for the next year is $U1,nOH, nhowiiiff an fstiniated oxpoiulitun> for iu>xt y.'ar of !ii;l!>,r,7.'?.(i4 lo«s than was paid for thoyoar ending BOth .Tniu" hvst and i«;4a,r,()1.4!) less than was voted for oxpenditnre during the current year. I now come to a very important item PTTBI.If! DEUT. The amount for interest, sinking tund, etc., paid for the year 1H82.8:] was ^SS0,7!)4, and voted for expenditure dur- nig this year i^927,883.81, wherens the vote rec|UMvd for next year is p,m,m.V.\. showing an incrensed exp<>ndi- ture for next year of $101,993.-..3 over the amount paid for the past year 1882-83, and,!8!(i:3,!)04.12more than was voted lor this y(>ar. This inc^reased amount arises from being o1)liged to pay the interest on the balance of the last loan of $3,500,000 which becomes due n-xt year, over and above what was necessary before. This must be met at all hazards and irrespective of any other dt'mand upon the treasury. KAILWAYS. The expenditure on railways for the next year will be much less than before, that is 1378,104.46 less than paid m the year 1882-83, and $320,150.09 less than voted for the present year, the amount asked for being $394,475.50. As the expenditure for railways comes out of loans I do not think we should calculate the amounts paid out year by year, whether more or less, as alfecting or shoeing receipts and expenditures on the general ordinary busf- ness of the Province. We do right in charging, as against ordinary revenue the interest and sinking fund upon rail- way loans, that is upon our public debt, but the paying out on principal should not be charged as against annual revenue. 88 Tho total oHti.uatoa oxpendituro for tho fiscal vear ondlnj/3..th Juno, 1885, amountn to . ..^-i.i,... .4 Of wlach .« to 1,0 „ai,l out of proceeds of tho laJt ' ' loan, to Ix) do(lu(^t(Hl •— For railways sioj arr rn rori.ariian,out,.ui,di„«s i::::'^!;^^ $504,475 50 I^mvinj; to i)o provided Z " '"il^dlr:"'^'"' -vonuo fb;-ti^-;;,;-;;;;^;f '«^"''^^« '^ 3,112,022 80 LoaviiiR a dillbronco of Z Choers.) Honorable gentlomou will undorsfmd fhnt h^-s a great difteren<.o often hotweeu "t^^e Jp^ 11; '^ n.=eipts, and also a difference between eTt tv,;,.t ^y "i^ loaii/ea. 1 he expenditure proposed is I the result .i^^ r LSfed juj ^ h "";' '™°"' nn««i-hl > f I, ^ T ^""i^^'iiea, It IS, at the same time, on te po Mble that I may have been too sanguine in my est La- reduced .some items ol proposed expenditure on some ser vices too much, but it is difficult to tell predlelv X expenditure as much as poss ble Th ' /" ^™'* *^^ Pected claims, which J^bf met^erb^;:^^^^^^^^^^ IS impossible to foresee with any certainty. '' A WORD AS TO THE RETRENCHMENTS I am well aware, Mr. Speaker, that I am not only risk- "i^rrt"'' " '""^"^^^•' ^"* '^^' of the'e, te .o.errmont m endeavouring to cut down our annual ex' J?4 pondituro in the way just ('xplaiiied to th(> House. T am quilt' aware that to })(> n popular treasurer in the usual ai)tati()n of the word jiopular, I should grant money freely, hand it out right and lel't and promise to comply with every demand, of course with the intention ol' |)ro- motiuff th(> pxiblic good. T am aware that the fricMuls of the government expect fav«n-« ibi- their constituents from the government, and I am also aware that nnniy con- Ktituenci(>s press claims upon their mcMnbers of various kinds wilhout considering always or caring much whether the linances of the province can afford to grant the mouthy asked for. Now no one appreciat(>s more than I the intelligent independent liberal support which has beeu accorded to the various governments I have had the honor to form a part of by the members of this House and the country for many years. At the sam.o time our circumstances have changed, and what might have been at one time (^uite proper to do, in our changed position would be the reverse, and instead of yearly surplus we we have lately had yearly, delicits. The increase of our funded debt for railways necessarily absorbs most of our subsidy from the Dominion in payment of interest and sinking fund upon that debt. Our sources of revenue otherwise are not likely to increase. Our expenditure in many respects is increasing, and must necessarily increase, and the necessities of our financial position force r.'tren(;h- ment upon the government, not altogether of their own free choice, but in the interest of the people of the provin(>e. (Hear, hear.) My primary duty as treasurer I tak(^ to be the collection of amounts due the province as fast as possible, and specially to see that no money is improperly expended, and over and above all to watch that our expenditure shall not exceed our regular revenue. If I am correct in this definition of my duties I trust honourable members will 8« aid mo in ovo.vy possil,!,. way to perform my flutv hy not look.no. for or asking lor ..xp.Mulilur., ox.-,.,",! n,, 'pu ',,,,, absolutoly roquirccl in th. pal.li- inturo.st, an.I in no ...s. to ask lor or allow mon- oxptMulituro than our nvoints permit I know that som. may obj.vt to o,,t„t.s h.L cut off wlu.h seom to hoar h.^avily upoii parti.ula";^ hrau.-hos o the public sorvi.. so callod, in wL-h itv aro partK-ularly intorosto.l or which tourh parli.ultrlv thoir <.onstitm.nts. Somo, whilo advo.-atinc. <.uttino. olf lor instan.u. on a-rionlturo and ••oloni.ation purposes dopro<-ato .uttino' off on othor sorvi.-.-.s ; whilo thoso interested in agri-ulturo or .-olonization are indio.„,„t that these acknowledged objects of vital imp.,r(a,UT to our ovneral prosp,.rity should have the pruning- knife applied to what they consider the most in.portant indus- tnes m the comniuuity. Now, Mr. Speaker, I hope honor- able members will bear in mind that if one member of the body politic suliers, all the other members must suffer also, and lor a time at least, till our linancial position is improved, so that g-rants may he renewed in the future all must consent to a reduct^-on of the expenditure, if we would avoid placing increased taxation upon tJie people I have had parti(,s come to me and say, " Mr. Treasurer I presume you will have to diminish 'your expe d u'l: <'onsiderably in order to hring it down to your norm annual receipts.' " Yes," I replied, " it will havetl^^ done by me or some one else, if we would avoid financi-d embarrassment, and I hope the House will sustain the government in what may be necessary to restore the equilibrium o our linances." He would reply, " f hin^^ the House will do so, or do worse, and I understand th t matter pretty well, and would take the liberty of suHs" ing that you don^ interfere with, say, grants'to sur^^'o,- education ; you know that in order to keep pace with ou sister provinces we mu.st have our academies, coiieoc. 86 and universities well sustained by government aid, and It would be much better to diminish our common school grant, and throw the whole cost of these upon the municipalities, now somewhat accustomed to taxation for common school purposes, than to interfere with our superior education, literary and scientific institutions," etc. Possibly the next man, who looked at things from another point of view would say to me, " Allow me, Mr, Treasurer, to suggest what might be done, and I think I know public sentiment pretty well. Cut off, without mercy, all grants in aid of superior education. If the rich want their children educated in academies, colleges, and universities, let them pay for it out of their own pockets. The state has no right to ^pay out money in aid of colleges and universities and colleges to educate the children of the wealthy, and as for grants to literary and scientific institutions, these are unpardonable. These societies are mere humbugs, intended to give an opportunity for certain parties to air their opinions at public expense, and make a spread of their little learning at a cheap rate to their own pockets. Cut these all off, wipe out their grants from government, and if they want such institutions let them pay for them by subscription, and then you will soon see in what their real or pretended interest consists. Cut oft' all these, and give more money to common schools, where every child, no matter how poor, ,can be educated to perform his duties in after life." Again some have said, " What ! cut oft" a few clerks in the civil service departments, and reduce the salaries of others ; why it's barbarous. They have vested righLs, being once placed upon the stafi" you are bound to keep them on, they are gentlemen of education, well connected, have many in- fluential friends, much influence in the country, and why turn them off to effect a mere bagatelle of saving, by such a course ; 'tis mere cheese paring, saving candle ends ; SI cal ed. These latter are like leeches, sucking the life blood ol the province. They should be «upporte5, as in o her countries by private benevolence, and the p^or will no be allowed to suiFer ; put the c-osts on the munic-hiiities making each one take care of its own poor a d TnS' "irstr: ' ^^^ "^ *'^ -^^^^*^^- p-*' ^ those nots ZZT T"^^'"''^ ''' government expense work- are^bundrZ^bf- ™ ''''''- '' *^«^^ '^'^-^^ who 7emZ T^\tVT"''^ ''''' '' '''^^''' *^«- poor relatives, but shirk the responsibility, will not a low hem to suffer. That's the plan I wouli adopt and tl country will sustain you in adopting this cours^' Othet have hin ed in pretty plain terms "that the present system of indemnity to members should be sCned altogether. Possibly they might be allowed $100 ase'sion for expenses, but the idea of paying members 1500 1^ sometimes more, for a session avLging only a^^^^^ two ofTrt^^aM's tf ^^ "^^T -^ P^^'^-S-s in ttlha^ should S '*f 7^^^' ^^d goodness knows what more. Such, Mr. Speaker, are merely specimens of advice ten. subiects or ha aKi^ 4. ■, J' a(ea, auout classuial subjects, or be able to understand diff^ent languagas, or 88 in the ius aud outs of professional mattm-s, but as regards ligures, as respe(;ts the keeping of accounts, why the country is lull of fiuauciers. They could conduct a bank- ing institution aud make mere play of it, aud as to the management of the treasury department of a province or the tinance department of the Dominion, it could be done without the slightest dilficulty, aud still I venture to say that special traiuiug is as much required to properly understand not the mechanical part of mere bookkeeping, but the proper system and management of business, where the handling of monej and the proper and judicious spend- ing of it are concerned, as is iu>cessary to train men for any of the learned professions, and to persons who under- stand how business should be conducted it is surprisiu"- to see many attempt to manipulate ligures in accounts, of the first principles of which they are as ignorant as they are of the dead languages. (Hear, hear.) 1 do not pretend to know mu(^h about financial questions, or to be much of a financier, but I know as much as this, that if an individual, a commercual firm, or a government spend more from year to year than they receive, or their income can afford, it is only a question of time how soon they will eome to grief. Aud it is with the view of avoiding finan- cial embarrassments for our province and to avert calamity aud ruin to our people to endeavour to put our finances once more into a good, sound, healthy condition and save the credit of our province that I have ventured to suggest to the House and the country, certain economies and retrenchments, which I ask this House and the country to pronounct^ upon. (Cheers.) It is quite possible I may have failed to indicate the proper services upon which restrictions should l)e made ; it is possible I may not have gone far enough in the direction of reducing expenditure, but I have done the best I could at th(; present time. I did uot wish to make reductions so immediate and complete 39 as to cans,) too much distivss to those heretolbro ac-cus- omod to aid from the public purse, and with this view the time may come in the future when further retrench- ment must be made, but I hope that the begiuning- we have made may with prudence and care in the realization of our assets require no further reduction, and if our country prospers as I hope it will prosper, we may even be able to resume our gi-ants to objects which nec-essity now compels us to dimmish. (Applause.) Heave the matter, Mr. Speaker, in the hands of the hon rnembei^, with them rests the responsibility, and I trust they wil calmly, in no party spirit, in no spirit of criti- cism, but from a patriotic standpoint, deliberately study the whole question and act according to the dictates of conscience, and I have no fear if this is done but our pro- viuce will soon again be in a position, not only to meet all Its engagements with ease and promptness, but that we will be able to resume our efforts to advame the material prosperity of the province in ways which at the present must remain in abeyance. CLAIMS ON THE DOMINION GOVERNMENT. It may not be out of place, Mr. Speaker, to refer for a lew minutes to the mission of certain members of the Gov- ornment to Ottawa with the view of presenting to the Trivy Council certain .claims our province has against the Dominion. It was stated freely in the press that we went to Ottawa for the purpose of coercing the Dominion Qov- ernment into a favourable consideration of our claims at a critica moment during the session, that we took advan- tage ol the Pacific Railway discussion and the excitement consequent upon the consideration of the important ques- tion oi granting a large loan to the Pacific Syndicate to press our c-laims and to have our claims supported by the members of Parliament from Quebec before voting upon 40 the Pacific Loan— that in fact the members of the Quebec Government were using the influence of the Conservative members m Ottawa to withhold their support from the Pacific Loan resohitions unless our provincial claims were fivvourably considered by the Ottawa Government. Such statements as these I am bound to say were not true. The same day that the elections of the honourable Attorney-Gen- eral and myself were over we came to Quebec, and one day was spent in considering the best mode of presenting our claims, and the same evening the deputation left for Ottawa. We could not well present our demands to the Government at Ottawa until our Government was formed and approved by the electors, and in view of the approaching session and our financial difficulties, we could not do otherwise than at the earliest moment possi- ble present what we conceived were our just claims for consideration at the hands of the Federal Government. (Hear, hear.) You will observe, Mr. Speaker, and honourable mem- bers will also take notice, that we were not presenting any new claim against the Dominion. Three yoars ago a deputation from the Chapleau administration presented precisely the same t laims, which were promised considera- tion by the then Ottawa Government, and in almost every budget speech which for several years I have had the honour of presenting to this House, I kept alluding to these demands and reiterated our determination to press them upon the Dominion Government until they were allowed as only being justice to our province. These in brief may be alluded to as, — 1st. Compensation to the Province of Quebec, for tlie amount paid by the Dominion Government in aid of the construction of the Canada Central Railway and for the railway from Gravenhurst to Callander in the Province of Ontario out of the Dominion funds. to\ ards win' rmct we wa 41 contributed, and Governmeut expenditure on other rail- ways. 2nd. An additional per capita subsidy over the amount mentioned in the B. N. A. Act, 1807, consequent upon our mcreased population and increased expense connected with carrying on provincial affiiirs debfom' Trf ''^■"'' '^' "^^^'^^^ ^^^^^ «f the surplus debt of the late^rrovmce of Canada over the 62* million \ T ;^''^"^«^ by the Dominion from 1867 to 1873 when the Dominion relieved the provinces of Ontario and iiiuebet; from said surplus debt. 4 That the Province of Quebec be relieved from the cosi oh' ^'^™.""fr*^'^ "^"^^""^^"^^ justice-that is the cost of the criminal laws of the Dominion-a cost increas- ing yearly as our population increases, while the Dominion je^^|iiues are alone benefitted by the increased population m the consumption of dutiable goods. THE RAILWAY SUBSIDY. We prepared a memorandum of our demands upon the two first propositions, and had it printed, with res" the latter, merely reiterating and renewing our claims and protesting against any waiver of these on our Zt W ^™g them for future consideration and adju tment e^ter d offi """""' 'l"""- ""'• ^^^enzie when he entered office as premier that two lines of railroad would be subsidized :n co..ection with the Pacific Railway one through the Province of Ontario and the other throuTi; the Provmce of Quebec. Sir John A. Maodonald made^m lar declarations subsequent to his assuming the office of premier. These promises have been fulfilled by grantino- to the Canada Central Railway $12,000 a mile for LTn i^e leng h as a part of the Canada Pacific, and |12 000 a mile granted for the railway from Graveniurst to 'ctlH..^ ^ m miles in length, forming no part of the Can^l ^ t 42 • Pacific Railway, but intend od to open up to the Ontario system of railways a connection with the Pacaficline. So far so good for Ontario, but our claim for compensation to at least an equal amount per mile for the Q M, O. & O. Railway from Quebec to Ottawa has hitherto been kept in abeyance by the Dominion Government and nothing but promises of consideration at some future time could be obtained. We thought the time had come for a recog- nition and adjustment of this claim along with the other*^, and accordingly through the hon. Commissioner of Crown Lands the matter was laid before the Privy Council in a <'lear and able manner. (Hear, hear.) I am happy to say that subsequently to our visit the Dominion government acceded to our demands in part, and have agreed to allow us .$12,000 a mile for the length of the road between Montreal and Ottawa, and 6,000 a mile from Montreal to Quebec, but I am sorry to say, diverting a portion of our claim to building another railway against our protestations. I explained to the Privy Council in answer to a question of the honorable Minister of Finance that we did not want the money paid us in cash. I was afraid it might slip through our lingers in some way : but what we wanted was that the Dominion government should assume a certain portion of our funded debt, pay the interest thereon for the currency of our bonds' and retire them at maturity. (Applause.) That they could borrow money for such purposes at 4 per cent, to pay our interest with, thus effecting for thtfm a saving of upwards of $30;000 a year for say 20 years, and by thus investing this amount annually with annual interest thereon from year to year, they would save a large portion of what they assumed for us, while at the same time it would wipe ofl' so much of our liabilities. That having already paid in cash the subsidy to Ontario railways, they were obtainino- an advantage in dealing with us in the manner proposed! 48 With rospert to this •■luiia it wiiH on a diflbront footino- Irom our other rhiiin.s. This wan a dvhi dxw by tho DonT- miou to the Province of Qu..|.h,. whi.h we wanted paid and the payment of whi.h involved no eompensation to the other provin.es as th.^y ha.l already received their equiva- lent in the shape of railways huilt lor th.-m and in subsi- dies towards construction of otli,,,- road«. (C'heers.) THE PER CAPITA HJUWIDY. As regards an additional per ra/n(a subsidy to Quebec the granting of this would rec^uire granting an equal amount to the other provin.vs, and oiir demand of a sub- sidy ol one dollar a head based up„n the population of 1881 as estabhshed by the census of that year, instead of eighty cents per head, upon the population of 18f;i, would require a large outlay by the Domii.ion (lovornment to equalize the amount asked by us payable to all the other provinces On this point the Dominion Government thought proper to express no opinion, and the qu«8tiou was postponed for future discussion and consideration. REMISSION OF INTEUKHT ON DEBT. As regards our third informed by the hon. premier that he was willing to submit a ciise to the Supreme Court or the Privy Council in England, at our (<^^tion, so as to have a d(>(>ision on the subject. To this we could have no objection, and expressed our will- ingness to this course. Since we left Ottawa, I am happy to say, the Dominion government have taken the subject into (•onsideration and have fixed a principal sum of about $2,o50,000, upon which we will receive interest annually. I have taken that into account in the estimated receipts for next year (Cheers.) THE (,'OST OF CIUMINAri .TUSTICE. As to the cost of the admiuist-aiion of criminal justice, this question is in abeyance for the present, but it war, promised serious consideration by the Dominion Govern- ment, and there will be opportunity herealter of exrressing our views upon it. It looks to me that as a matter of justice to us the Dominion ought to pay for the administration of its own criminal law, or else make compensation to us for what we havt) expended for years past and are yearly expending upon this servi.;e. (Hear, hear.) It would be ungenerous on my part not to publicly state that the hon- ourable Privy Council received the government deputation in the most courteous manner, listened to our representa- tions with the closest attention, and I have to say further that the members of the Privy Council from this province and the members of parliament from Quebec assisted us in every way possible, and to these gentlemen, on behalf of our province, I beg to return our hearty thanks. While we had i'onfidence in the justice of our demands and did war, 4t not go b.>gging or asking for favours, at tho same time ovoryon.. knows that it was of importaiuo to be well sustainod by friends from this j>rovin.v who aidc-d and assisted us materially in our mission. (Applaus*' ) Before closing this part of my subjoet I may say that T ddler entn-ely with the Dominion authority upon the account rendered of $889,000 being due by Quebec at June 80th, 1882, to the Dominion on amounts overpaid us smco 18.;7. I have not had time to examine into the account submitted, being too busy in other matters but I cannot admit the principle of being .-barged compound ntennst at the .Mid ot ,>v.>ry six months, nor do I think the Dominion authorities will insist upon it when the accouuts are gone into by both governments. THE NECESSITY FOR RETRENCHMENT. Now I Wish to impress upon the house that notwith- standing we hav.> iveeived substantial aid from the Dom- mion Government which prop..rly belonged to us, we are not therefore to suppose that by this addition to our revenue we are relieved from the necessity of retrench- meut and economy in our expenditure in everv Dossiblo way. Why, Mr. Speaker, the addition thus imLTou receipts does not amount to half our normal deficits for many Y^^ars, and we have our large funded and other debts to provide for ; our sinking fund to provide for year by year, and besides we have been carrying on our establishment on too large and expensive a scale? and the necessity tor economy no less exists than formerly with this important dillerence that, with strict economy in our oxpenditure we can hope to meet our liabilities without placing additional taxation upon the peopl.., which other- wise might not have been within our power. (Hear, ht") It, sir, the aid we have received has the efTect of l^adipo- us to suppose we can continue our former expenditiire 48 without rotreuchment and economy in the future it were better for the province not to have received a dollar from Ottawa, as in that case direct taxation stared us in cho face, waa impossil)le to avoid ; and then th- peopl(> of the province would take the matter into their own hands and placo such men only in power us would insist upon and carry out the principle of keeping down our expenditure within our receipts. I have heard parties saying, " Well with so large an amount from Ottawa," always placing it more than it was actually, " there will be no need of cut- ting down expenditure, we can go on as before, spending money right and left. The usual grants will be continued, etc., etc.," but these parties forgot or overlooked the fact that the additional interest we will have to pay next year upon part of our last loan, if deducted from the additional amount receivable from Ottawa would not leave enough to make up half the deficiencies for a series of years which have occurred in our province, that is, we need to retrench upon our usual expenditure at least half of our usual deficits to enable us, after payment of the extra interest alluded to, to make both ends of the year meet. At the same time it is only right to say that the additional aid from Ottawa, just and proper as it was to us, in payment of just claims, is and will prove of great benefit to ns J>y enabling us to carry on the allairs of the country, if proper exertions are made to keep down our expenditure within proper limits without placing burdens upon the people m such a way as to interfere with the advancement of the country and the individual prosperity of our citizens. (Cheers.) I hopc^ I hav(^ made clear to honorable members the necessity of economy and retren<;hment in every depart- ment of the public service. I know it is not a pheasant subject to dwell upon, but it is not the less necessary in our present circumstances, and on the proper action in • i 49 this matter clop.uidH tho prosperity of our province, and I know the great body of i he people are auxiou^slv waiting the artion of the government and of the House with respect to the course whist of such sale receivable each year m redu.-tion of interest, and finally of a certain part of the principal of our debt that we owe over and above what we may receive from the railway, between eleven and twelve mill.on dollar., which we must at all hazards provide for out of our ordinary receipts, in so far as interest and smkmg fund are concerned, for the gradual extin- guishment o[ our debt. I have shown that the amount asked for from the House for the next fiscal year is $3,010,- 646.14 for ordinary expenditure. It must be noticed however, that the estimated receipts for the current yea^ may not correspond with the actual re.eipts-may be more or may be less-and the estimated expenditure for the same period is liable to the same (luctuation, and actual results must be waited for to know how our affairs stand as respects the business of this year. At any rate it is ap- parent that we have for several years been spending more than our ordinary revenue warranted, which, with our large railway debt, places the province in its present fanancial position. It is equally clear that this state of things must cease if the good name of the province is to be laeiintamed at home and abroad. 4 50 In order to bring our finances into a proper healthy condition certain reductions upon our former expenditure have been proposed, if we would avoid placing additional burdens upon the people, and at the same time bring our expenditure within our receipts, and it remains for this House and the country to adopt or reject the economies proposed. If rejected, I fear for the future of our pro- vmce. We cannot go on as heretofore without damaging the credit of our province and imposing burdens upon the people which will press so heavily upon them as to seri- ously retard the settlement of the country, induce or force our citizens to seek some other country where the burden of taxation will be lighter, and paralyze every branch of industry amongst us to such an extent as will entail ruin on many of our people and make us a byword and reproach amongst our sister provinces. It will be asserted of us and of our public men that we are incapable of self-government, that we have wilfully and deliberately contracted obligations and borrowed money which we have not the honesty or disposition to pay. We can meet an expenditure equal to former years and meet all our obligations if this House and the country will consent to have additional taxation placed upon the people. If the country wants a certain percentage in the way of tax either upon the acreage of the country or its assessed value as placed in municipal valuation rolls, or upon income, or by any other mode of levying moneys directly from the people sufficient to meet our expendi- ture, this can be done, but any person can easily see and foretell the result of such a proceeding. In the first place I conceive it is not needed, and our people will not con- sent to it, and I feel sure whenever the sense of the coun- try is taken as to whether the plan the Grovernment now propose to cut off expenditure in the meantime, it may be iu 51 on objects which deserve support to some extent, and which would receive it if we had the means, or tax the people to urnish the money, there will be an unanimous cry from all parts of the province to adopt and carry out the system proposed and to carry it even farther than has reZir,-"" ! .' "^T""' ^"'*'^'' if necessary rather than resort to direct taxation. (Cheers.) If on the other hand this House agree with the Govern- ment and undertake to carry out the plan of retrenchment proposed, I see no reason to fear for the future of our province. Our claims against the Dominion Government for ius- tice have been m part allowed and adjusted, and we have every reason to believe the balance will receive equal con- sideration, not as a favour but as a right We have an immense field for settlement upon our Crown lands in various parts of the province, which, though not adding very much to our direct revenue stH increases the wealth of our country and population, and by means of their industry afibrds markets for our manu- factures. (Hear, hear.) Education is gaining slowly but surely amongst our people, our country is becoming better known to Euro- Cr:^ t. "^"^^ f '^' P^°P^^ ^^^ ^«^« left for the United States would like to ^eturn to the land of thei birth, and If we as legislators do our duty by enacting wise, judicious laws, by guarding faithfully o ar finances by economy and retrenchment in every department of the public service, if we show that we place L realt re« of the country first and foremost in our programme of proceedings, that we prefer the prosperity of the country above even party lines or party cries, tha[ we are re^dyTf Pl7sh 'f *r 7"T'^ '''''^''' individually to accom- phsh the desired result of having our receipts every y«ar exceed our expenditure, then the temporary clou(^ of 52 embarrassment which are to be found floating over our heads will soon disappear, and we will emerge into the clear sunshine of prosperity and show to our sister pro- vinces that the descendents of the two great nations in Europe, England and France, are to be found, notwith- standing their difference of race and creed, working har- moniously and shoulder to shoulder for the common good of our common .country. (Loud applause.) That our province has so far done its share in building up the Dominion no one can deny ; that we have gone beyond our means in opening iip the province with rail- ways, thereby enhancing largely the wealth and pros- perity of the country out of the public funds, is patent to everyone. > Mr. Speaker, I leave the question for the careful con- sideration of hon. members, on them the responsibility rests. (Hear, hear.) I would merely urge upon my col- leagues in the House to use their best efforts to bring our expenditure within our ordinary receipts. If I have not gone far enough in the way of economy and retrenchment I shall be glad to proceed farther in that direction. The fate of the province is hanging in the balance. If this House shows a determination to practise economy in every possible way, by a reduction on our present expen- diture and carefully husbanding our revenue, we will soon be in a position to devote more attention and means to fostering our important industries, and thus increase our prosperity so as to leave no portion of our Dominion in a better position than we are. By following such a course we will have the satisfaction of feeling that we have done our part in developing the resources of our country, and leave to our descendants a happy heritage in their possession. (Cheers) Under the flag of our country, we will find substantial liberty exceeded in no part of the civilized globe. With col- li. 68 good laws well administered, with education progressing amongst our people,, with industry, perseverance in the discharge of our duties, public and private, with full liberty, notwithstanding some differences of opinion, to worship Ood according to the dictates of our conscience, the Province of Quebec will do her part to make this Dominion of ours one of the brightest jewels in the crown ot our beloved sovereign Queen Victoria, whom God long grant to reign over us. • ^^! '^r^asurer sat down amid hearty cheering, announc mg that his intention was only to pass one item to-day, a«d then the committee would rise and report progress k I i 1 t 1 , • J ' " * lit