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32X

'' speeich:

OP THE

HONORABLE A. T. GALT,

MINISTER OP FINANCE OP CANADA,

IN INTRODUCING THE BUDGET.

(le^JI^I^HsTTEIDJ

©ttaiua:

PRINTED By HUNTER ROSE & CO., SALLY STREET.

1866.

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SPEECH

or Tni

HONORABLE A. T. GALT,

LEGISLATIVE ASSEMBLY, CANADA.

Ottawa, Tuesdai/, June 26, 1866.

In Committee of Ways and Means,

Hon. Mr. Galt made his financial statement as follows : — Mr. Chair-
man, when I last had the honor ofaddressing the Committee with reference
to the financial position of the Province, it was my duty to refer to the
financial transactions of a year which had been marked, not by those satis-
factory features which have characterized the past year, but by others of a
much less promising character. Iwasobligedtopointout to the Commit-
tee that there had been aserious deficiency, amounting to a million dollars,
between the receipts and expenditure for the year 1864-5. 1 am glad to be
able, on this occasion, to congratulate the House on a much more favorable
state of affairs. Wo have had to pass through a period of great difiiculty
since the financial year commenced. We have had it marked by some
events which certainly will be historical in this country — by the aboli-
tion of the Reciprocity Treaty as regards our commercial affairs, and by
the attacks upon the integrity of the country made by a lawless band called
Fenians, in the latter part of the year. Both these events may have
been supposed to have injuriously affected the resources of the country,
and no doubt they have done so. At the same time it is satisfactory to
know that, thanks to the good harvest with which we were blessed last
year, and the industry and energy of our people, we have been able to
meet those difficulties in a manner which leaves us now, at the com-
mencement of another financial year, in a much better position in every
respect than we occupied twelve months ago. The Accounts for the
past year have been made up absolutely to the 20th June, and estimated
for the last ten days of the year to the 30th June. They are, I believe,
in the handis of honorable members of this House, and I shall now briefly

refer to them, because I thiok that reference will be satisfactory to the
House and to the country. The expenditure of all kinds during
the past year has been ^12,106,786, of which there has been applied
to the redemption of the Public Debt, $270,393, leaving as the
ordinary expenditure, 811,836,393. On the other hand it will be found
that an income has been obtained during the past year of not less than
$12,432,748. Consequently, after meeting all the charges that have
been brought against us during the past year, wo have had a surplus
of 8596,355 — (hear, hear) — and, after making provision for the re-
demption of the Public Debt that has matured during the past year,
we have carried to the credit of the country no less than 8325,962.
(Cheers.) I may refer briefly to the estimates which were laid before
the House last year. The estimated outlay was 811,074,000. The
actual outlay has been $11,836,393. But of that there is no less than
81,150,000 to represent the unexpected charges to which the country
has been subjected, owing to the lawless attempts of bodies of men to
invade our territory. And, from the manner in which the country has
met, physically, these attempts, and from the manner in which this
House has responded to the application of the Government to indemnify
them for the expenditure, I know it will be satisfactory to the country
to learn that all these expenses have been [met, and no greater charge
brought against us than what the ordinary revenue has been more than
able to cover. (Cheers.) I may remark here that the amount set down
for Militia expenditure covers not only the actual payments to the 20th
June, but no less a sum than 8675,000 in addition, which is the total
estimated outlay that will have to be made in connection with the last
and most serious danger, and the calling out of the militia connected there-
with. The estimated income was 811,136,000, and the actual amount
received 812,433,000, being an increase over the estimate of 8 1,297,-
000. It may be proper I should advert to the principal sources of rev-
enue from which this additional sum has been derived, and I have great
pleasure in doing so, because they are those which best indicate the
prosperous condition of the country, and its ability to meet the charges
which from time to time have come upon it. The minor sources of
revenue — the Post OflGice, Public Works, Territorial, and all those minor
revenues — have remained very much es they were before. But the
consumption of products from abroad, as indicated by the Customs
revenue, has been very much larger. We have received from Customs
last year 87,233,248, against an estimate of 86,160,000 — an excess over
the estimate of 81,073,248. From Excise we have received 81,732,075,
against an estimate of 81,550,000 — an excess of 8182,575. Various
causes have undoubtedly operated to produce the increased imports
during the past year. It is pretty well known to the Committee that
the stocks of goods in the country had been to a great extent ex-
hausted before the termination of the last financial year. It was then
believed that a considerably increased import would take place, and it

;?^>

itory to the
ids dariDg
len applied
ng as the
ill be found
ot less than
i that have
,d a surplus
for the re-
past year,
. 9325,962.
laid before
,000. The
10 less than
the country
9 of men to
country has
which this
o indemnify
the country
sater charge
a more than
int set down
to the 20th
is the total
ith the last
lected there-
tnal amount
of $1,297,.
irces of rev-
'. have great
ndioate the
the charges
r sources of
those minor
]3ut the
he Customs
•om Customs
fixccss over
$1,732,575,
5. Various
iscd imports
umittee that
t extent ex-
it was then
)laoe, and it

was felt that, if we were blessed with the harvest then looked forward
to, the people of this country would be much more able to consume im-
ported goods than they were during the year then past. I confess it was
not in my expectation that the amount would bo anything like what it
has turned out to bo. And I do not think we would be justified in as-
suming that the normal condition of the country is such as would per-
mit a consumption of that amount every year. As regards the increase
of the Excise, I may remark that T estimated a distillation of 3,250,000
gallons of proof spirits, whereas we have received duty on 4,030,000
gallons — a very much larger quantity than was expected. The receipts
from beer and tobacco do not vary much from the estimate. The great
difference in the revenue has arisen from the increased consumption of
imported goods, and the increased distillation of spirits. With regard
to the increased expenditure, to which I have already partially adverted,
it was estimated that the expenditure for Militia purposes would have
been covered by the sum of $500,000. But the acconnts shew that
before the close of the year it is expected that no less than 81,638,868
will have been expended under that head. And I need not point out
to the Committee that, had that expenditure come upon the country un-
der circumstances less favorable than those which actually have occurred,
it would have caused very great inconvenience indeed. With regard there-
fore to the accounts of the past year, I am happy to be able v^ a this oc-
casion to make this statement, that all the engagements of the country,
both those which were contemplated by Parliament last year, and those
unexpected then and thrown upon us since, have been met by the ordi-
nary revenue of the country, and that we have still been able to carry
forward a considerable sura to the service of the following year. (Cheers.)
As regards the trade of the country, the Statements which have been
distributed to the members of this House, are, 1 think, of a character to
give satisfaction to every one. Comparing the actual trade of 1864 5
with that of 1865-6, as established by the Custom-house returns for the
eleven months beginning July 1st and ending May 30th, we find that
the imports in the eleven months of the previous year were, in value,
$40,955,509, against, during the current year, $49,034,045, and that for
the whole twelve months, making an estimate for the results of the last
month of the present year, the imp .ii of last year were $44,620,469,
against $53,034,045 during the year tc close on the 30th instant. Con-
sequently there has been an excess of imports, as compared with the
previous year, of no less than $8,413,576. Now, Mr. Chairman, had this
increase of imports not been attended with an increase of exports, instead
of its boing a subject of congratulation, it might possibly have been a
subject of considerable apprehension. In that case we should have
concluded that there had been an excessive importation of goods,
that it had gone much beyond what a provident course of action would
have dictated, and that, consequently, we might anticipate very shortly
in the future the samo sort of financial revulsion which has been expe-

.If

[if

rienced in all countrios that have traded beyond their means. Kut it it,
with pleasure that, on the other hand, I call the attention of the House
to the statement of exports. The exports for the previous year were
$42,481,1^1) against $51,984,375 during the current year, which shews
an excess over the previous year of no less than $0,503,224, or upwards
of one million of dollars greater than the amount by which our imports
this year have exceeded those of the previous year. (Hear, hear.) Con-
sequently, though our import trade has been largo, we find, in reality,
that the export trade of the country has more than met it, and that
the people of this country have been justified iu going to foreign
countries and getting from thence the goodf> they have required for con-
sumption, because they have really exported to those countries a larger
amount than they have imported from them — and we need not therefore
auticipatc that the results of the trade of last year will be in any way
embnrras.sing to us in the future. If the same prudence characterises
the p( ople of Canada in the future as in the past — if we import no more
than we have the ability to pay for — we shall not be exposed to those re-
vulsions of trade which are now the source of misery and anxiety in many
countries. In further reference to our commerce, I cannot help point-
ing out that the aggregate trade of the country has risen in one year from
«87,101,620 to no less than $105,018,420— a difference of $17,916,800
in the volume of trade which the people of this country have carried on
with foreign countries — which exceeds, by more than $10,000,000,
the volume of Irade in any previous year in the history of this country —
and marks an advance in the prosperity and prospects of the country which
may well form a subject of congratulation to this Committee and the
people of this Province. CCheors.) I do not think, in view of the num-
ber of subjects which I intend to bring as briefly as possible beibre the
attention of the Committee, that I should be warranted in dwelling at
any length on those Statements which are in the hands of hon. members.
They will, to a great extent, explain themselves, and if any points arise
requiring further explanation, there will be ample opportunity in Com-
mittee of Supply to give any information that may be desired. I
think, therefore, I may be permitted at once to turn to what is the con-
dition of the country now — the estimates which have been framed for
the public service lor the coming year, and the means by which the
Government trusts that Parliament will make provision for that service.
I have caused to be distributed a Sjmmary Estimate of the Expenditure
of the country for next year — the year commencing 1st July. By
reference to that statement, it will appear that the total estimated
expenditure of the country — excluding $2,570,500 of public debt which
matures during the year, and on which I shall have occasion to offer
some observations hereafter — is put down by the officers of the Govern-
ment at $12,370,150. With regard to the items of that expenditure, I
may be permitted to remark that many of them are increased from the
same causes which have necessitated aa increased estimate for the Militia

Hut it it,

f the H0U80

8 year wero

vhiuh shews

or upwards

our importfl

icar.) Oon-

1, in reality,

t, and that

to foreign

red for con-

ric8 a larger

ot therefore

in any way

haracterises

ort no more

to those rc-

icty in many

< help point-

ae year from

$17,916,800

e carried on

10,000,000,

is country —

untry which

tee and the

of the num-

e before the

dwelling at

m. members.

points arise

lity in Com-

dcsired. I

b is the con-

i framed for

y which the

that service.

Expenditure

J uly. Uy

tl estimated

debt which

sion to offer

the Govern-

penditure, I

>ed from the

r the Militia

J^^

expenditure of the country. Some, however, have not arisen in that
way. As regards the item for Civil Qovernment, it will be observed
that under the provisions of the Civil Service Act, a continual increase
must arise in the salaries of the public officers, oonscquont on the promo-
tions to which they are entitled under the Act. Accordingly, there will
always bo an increase, though not very largo, in that item, only reduced
when the public officers, through age, cease to be servants of the public.
I may add that, under the head of Civil Government, it has also been
found necessary to make a considerable addition to the item for Contin-
gencies, that item having, to a certain extent, been swelled by the cir-
cumstanc of our having moved into these magnificent buildings at Ottawa.
It has been found that we cannot live in a largo house quite as cheaply
as we have lived in a small one, and when the Province of Canada has
found it necessary to build a palace for our accommodation, it has become
necessary to have a greater number of servants to occupy it. (Hear, hear.)
As regards the Adminisiration of Justice (East and West,) wo have been
obliged to frame estimates founded on the probability that the adminis-
tration of criminal justice will be considerably more costly during the
year about to commence than in the year which is past. To show this
I need only advert to the number of criminals who are under incarcera-
tion, charged with attacks on this Province, and to the necessity
under which the Law Officers of the Crown have felt themselves of
taking this year more than ordinary precautions for the peace and order
of the country. The cost of these precautions, I do not hesitate to say,
is the cheapest and bestinvestmentof the public money that could be made.
It is much better that we should spend the amount required to make need-
ful preparation.s, than fiad ourselves hereafter, for the want of these
preparations, subjected to much heavier charges. Consequently the
Government have felt it was their duty to invite the House to vote sums
for the Administration of Justice, not very much, but somewhat larger
than were given in the previous year.

The same remark applies to the item of Police, on which there is an
increase of about $16,000, and I hope the Committee will agree with the
Government as to the necessity of providing that increase for a force,
which, under certain circumstances, must bo kept up in a more than
ordinarily efficient condition. Wc cannot, under present circumstances,
avoid the employment either of a large police force, or of a much more
expensive force, the volunteers. With regard to the expenses of Legis-
lation, I may remark that the sum estimated last year was considera-
bly in excess of that actually expended. This year the estimate is
$452,000 : the same cause which has operated to induce the Government
to ask a larger sum for Civil Government having also tended to swell
the sum for the two Houses of Parliament. At the same time it
proper I should remark that this item includes the expense esti-

mated for the Legislative Council elections, which will take place
this fall, but that it does not include the expense of a general election.

I thick the Houm will aeree with me in bolieying that it is not probable
the Parliament of Canada wilt be required to provide the means for
another general election. I trust the Union of the Provinoes will have
taken place in such time, that the next election will bo a general election
for the Federal Parliament of all the Provinces — (hear, hear)— and con-
sequently the Qovernment does not think it necossarj for the Parlia-
ment of Canada to make any provision for the expenses of that election.

lion. Mr. HoLTON — Who will pay for it 'f

Atty. Gen. Cartier — The people.

Hon. Mr. Galt. — Passing overbeveral of the other items, I come to
that of Militia. I regret to be obliged to state to the Committee that
the Government do not feel themselves to be in a position to be respon-
sible for the safety of the country, unless they obtain from the Houso
the grant of a very large sum for the Militia expenditure. Instead of
asking, as last year, for a grant of $500,000, the Government feel it
their duty to state that they believe it to be necessary— though they
may not require to expend the whole — that they should be provided
with a credit under this head of no less than $1,500,000. (Hear, hear.)
The Government are perfectly conscious of the responsibility they in-
curred durinp' the year now closing, in violating the provisions of the
law in regard to the public expenditure, and they do not desire to be
again put in that position. They prefer very much to state to the
House what are their apprehensions in regard to the safety of the
country, and what, therefore, are the powers with which they consider
they should be armed by Parliament. And, though the explanation of
this item will more properly come from the Minister of Militia, when
the Militia estimates are before the House, still it may not perhaps bo
considered amiss that I should say two or three words now in explanation
of the sum required for this purpose, which is very much larger than the
Parliament of Canada has ever before been called upon to vote. In the first
place, I think it will be admitted to be desirable that the volunteer force,
to which the country owes so much during the last few weeks, should
receive a still larger development— that we should give the youth of
this country a fuller opportunity of lending their physical support to the
Government, by increasing the number of the force. And, therefore, my
^M^n. friend will ask the House, when the detailed estimates are
brought down, for means to arm and equip a force of 35,000 volunteers
instead of 25,000. (Hear, hear.) Connected with this subject also is
plainly the necessity of providing, within the reach of the people of the
country, depots of arms at convenient points. A vote will be asked
from the House for that purpose also. It will further be necessary to con-
tinue the existing drill of the volunteers, and to maintain in still greater
efticiency the military schools, which are now furnishing hundreds, I
might almost say, thousands of young men to be the future officers of
our militia. These objects must be provided for now, as it is too late
to begin to provide for them when the country is threatened with inva-

Sl(

fr
th
af
th

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to
vi(
xm

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ot probablo
means for
) will havo
ral elcotion
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it election.

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be respon-
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tnt feel it
3Ugh they
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ear, hear.)
y they in-
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esire to be
ite to the
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n the first
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should

youth of
•ort to the

olore, my
nates are

olunteers

ct also is

pie of the
asked

ry to con -
11 greater
adreds, I
fficers of
too late
ith inva-

sion. Though it may bo perfectly true t^at wo are aloogsido of a
friendly country, and though wo willingly recognise the mode in which
the United StatcH (jovcrnniunt have diMohargcd their duties towards us
after the inroad into Cannda, still we must all foci that the foourity of
the country is to bo found in its own power — not in the forbearance
of another, or in the disohargo of duty by another, but in its own ability
to maintain our independence and safety. (Cheers ) Having those
view.s, the Government desire ihcy should bo in a position, whatever
may happen, to defend our borders against liiwless attacks. We do not
apprehend anything beyond that. But no one enn look at tho events
which are passing in the United States^ without feeling that tho
Fenian Snake is scotched, but not killed — that it may revive at any
moment — and that this eountry may again require to call its young men
to the front to meet a lawless horde. Under these cireurastanoes it is
necessary we should be in a position still more ciTeetually to meet the
dithculty, and repel any aggression that may be attempted. (Hear, hear.)
With regard to Public Works and Buildings, which is the next item
^ to which I would call the attention of the Committee, it will bo observed
that the estimate is considerably in excess of tho amount expended last
year. Tho Government on this occasion have felt it necessary to include
in the estimate all the expenditure that they believed could come
within the your, and I may add that thut consideration has
guided the Government in the preparation of (ho estimates in every
particular item — and for this very manifest reason, that, unless suffi-
cient provision were made now, very considerable inconvenience might
arise in the event of any delay occurring in the bringing about of Con-
federation J therefore, a much larger amount than the probablo expen-
diture has been estimated for the public works. I will not enter into
the particulars of it, however, beeause they will be brought down to the
House in a day or two by the Commissioner of Public Works. 1 merely
state that a large portion of the amount is to provide for liabilities in-
curred for work to be done in completing the Parliameut Buildings.
With reference to tho item of Heads and Bridges, I may mention that
the policy which has been pursued by the Government has been to ex-
clude all works of a merely local charactrr. The estimates embrace the
usual vote for colonization roads, which it has not been thought proper
to stop for tho current year, and an item of 39,000 for the completion of
the Matapedia military road ; but no work of a local character will be pro-
ceeded with. Expenditure of that kind the Government look upon
as belonging more partieularly to the governments of Upper and Lower
Canada, which, it is hoped, may in a short time be in operation.
With regard to the Seigniorial Indemnity to the Townships, tho amount
voted last year has not been wholly expended, and the balance of $20,000
has been carried forward in the usual mode. If the estimate for thd
past year was larger than the expenditure under this head, it was only
because parties did not apply for the amount to which they were entitled,

! I

and there has been for the comiDg year no actual increase in the amount
voted by Parliament. I have now endeavoured, briefly, to bring under
the notice of the Committee the several items in the estimates of the
expenditure of the country which I thought would be likely to attract
their more immediate attention. Of course there will be ample oppor-
tunity hereafter, when the details of this expenditure are before the
House, to consider the loisons which have actuated the Government in
including those sums in the estimates, and more particularly the grounds
on which the necessity for each expenditure may rest. I now propose to
proceed to the provision for the estimated expenditure which it will be
necessary for the Province to make. I have already stated that the amount
we have to provide for, exclusive of redemption of the public debt, is
$12,376,150. In making provision for that amount, I think it is proper
for us first to consider those items which, under ordinary circumstances,
are not much changed, and which cannot be materially altered by the
action of Parliament. I refer more particularly to the Post Office — to
American Postage — to the Public Works, in which it is not proposed to
make any change — to the Territorial llevenue — and to the Miscellaneous
Revenue, that is to say, the revenue connected with the Municipal Loan
Fund, with the various Law Fees, and, I may add, with the Stamps.
Those items together have been estimated relatively to the returns of
former years, and it is believed a sum, in all, will be received, of
$3,925,333, from all sources except Customs and Excise. Consequently
the amount which it will be necessary i'or the Committee to provide,
either by way of Customs or by way of Excise, or by way of both, is
$8,450,817. But under the present laws which govern the Customs
and Excise, I think we should not be warranted in framing an estimate
upon the receipts of the year now about to close. I think we must
necessarily admit that various circumstances of an exceptional character
have tended to swell the revenue certainly from Customs, and possibly
from Excise, during the past year. When we remember the position in
which the United States stood at the termination of their civil war —
when we recal to mind the excessive prices which ruled in that country
for almost everything — when we remember that their citizens came over
to this country and purchased very largely of all sorts of necessaries dur-
ing the first nine months of the fiscal year now closing — when wc remem-
ber that, in view of the abrogation of the Reciprocity Treaty, I may eay
an unnatural stimulus was given to our export trade with the United
States- -when we remember all these things, I think wo arc justified in
the belief that the state of affairs which gave us the very largo Customs
revenue last year of upwards of $7,000,000, cannot safely be reckoned
upon in the estimates for next year. In making these estimates, wc
must 'ook to the fact that the ordinary supply of goods in this country
has to a certain extent been filled. "VVe must also anticipate a derange-
ment, more or less, in the course oF our commerce, precluding our
people from buying to the same extent as last year, and interfering

P. \

n the amount
I bring under
mates of tbe
ly to attract
ample oppor-
re before the
)vernment in
^ the grounds
ow propose to
ich it will be
it the amount
iblic debt, is
k it is proper
ircumstances,
iltered by the
(St Office — to
ft proposed to
Miscellaneous
unicipal Loan

the Stamps,
he returns of

received, of
Consequently
e to provide,
ay of both, is

the Customs
g an estimate
link we must.
)nal character

and possibly
he position in

civil war —

that country
3ns came over
ccssaries dur-
2n wc rcniem-
ty, I may pay
h the United
c justified in
urge Customs

bo reckoned
estimates, wc

this country
itc a derange-
•ecluding our
id interfering

iyj

to a certain extent with their finding an immediate market for their
productions. I use the word " immediate" advisedly, for much of our
produce that used to be sold in the United States will ultimately find
ns good markets elsewhere. But I say, taking all these circumstances
into account, we would not be justified in expecting that the import
trade of the country, that which yields us our Customs revenue,
will be equal to what it has been during the last twelve months. It may
be considered a large, but it is, I certainly think, not an excessive esti-
mate, to say we should derive a Customs revenue of $6,400,000 under
existing laws. With reference to the Excise, I think the estimate
msde last year of $1,550,000 will be found nearer the mark for the nor-
mal state of the country, than the amount wo received last year of
$1,700,000. I think, therefore, on the two items of C .3toms and
ICxcise, we could not, under our laws, as they now stand, expect a
larger revenue during the approaching year than about $7,900,000. The
actual result may, under exceptional circumstances, exceed that amount,
but on the other hand exceptional circumstances of a dilFerent character
may make it fall under the estimate. If, therefore, we have to provide
for an expenditure of $8,450,000 out of Customs and Excise, and
existing laws will only give us $7,900,000 under those heads, it is clear
that Parliament must uia'ce provision lor the difference in some mode
or other. The (jovernnient find themselves therefore in this position —
they cannot, in compliance with what they believe to be their duty to
the country, neglect providing for those large expenditures which are
necessary for its defence. The whole difficulty arises out of the
increase of the Militia estimates from $500,000 to .$1,500,000. If,
with justice to the people of this country, we could confine our militia
expenditure to $500,000, the difficulty wou^d be at an end. But the
Government feel they cannot do so, and T think, in that opinion, they
will be sustained by the House and the people at large. (Hear, hear.)
Consequently, we have to consider the neeos.sity for increased duties.
But at the time wc are obliged to con.sider that necessity, we find that
the agricultural interest, forming the great bulk of our population, the
stem and trunk of the social tree, has been more or less affected by the
shutting of the ITiiitcd States markets through the abrogation of re-
ciprocity. The question therefore forces itself upon us now, are we
to allow the great interest of this country, which tills the public chest
by its contributions, to be at the same time burdened with increased
taxation and subjected to the loss of markets? Is it not rather our
duty to relieve the burden of taxation under which it labors, and
when possible even afford it new markets? To accomplish this
is the problem now before us. On tb.e part of the Government, I may
say we should have been glad, ior manifest reasons, that the considera-
tion of these subjects had not been forced on us at this moment. It is true
that on several occasions during the last two years, the Government have
stated that they would have invited the consideration of the House to the

mode in which our taxation is levied, except for two reasons — one, that
after the expected Confederation of the Provinces, an assimilation of taxa-
tion must prevail through all the North American Provinces, — the
other, that we helieved the negotiation which was to take place
with the United States for a continuance of the lleoiprooity Treaty
would equally require the fiscal system of this country to ba reconsider-
ed and readjusted. For these reasons it has been stated on two former
occasions by myself, that the Government were not prepared to invite
the House to enter on the consideration of this subject. But we meet
Parliament now under diflferent circumstances. We meet theoi after
the refusal of the United States to enter upon the consideration of a now
treaty with us. AVe now have to encounter duties imposed by the United
States, of a very onerous character, on all the articles which were in-
cluded ill the iVce list, and at the same time we find ourselves — I
do not say, owing to any want of good faith on their part, but ow-
ing to the disturbed state of society in the United States —
called upon to take much more extensive precautions against aggression
from that quarter. Consequently, the Government are of opinion that
this question must be submitted to the judgment of the House now ;
that we must now consider whether we can so re-adjust the duties of
Excise and Customs, as to cheapen to a great extent the articles which
go into the consumption of the vast body of the people of the country,
and at the same time impose heavier duties on those articles which will
furnish alarger amount of revenue with less cost for collection. It is not
simply a question of increased taxation. If it were, there is no doubt
it could be met in a variety of ways — by an increase of Excise
duties, or by an increase of certain Customs duties. But we have
to solve other problems. We have not only to obtain increased reve-
nue, but we have, as far as possible, to impose the increased taxation so
as to open new markets for the productions of this country, and I
trust the measures which I shall submit to the judgment of the Com-
mittee will be considered by the House as calculated to achieve that
very important object. Before I advert more particularly to those
measures, I would remark that I think it must be admitted we have
now a choice between two systems. We have the choice of the Ameri-
can system or of the European. The making of that choice T do not
think we can well postpone. I do not see how we can avoid taking that
question up now, if we arc to meet the difficulty we now experience.
If we take the United States' system of protective duties, of pro-
tecting every branch of industry, we shall, to a certain extent, assimi-
late our system with theirs — a course which I do not think the people
of this country would approve. (Hear, hear). On the other hand, if
we adopt what I called the European system — because the policy of
England is now being generally adopted by other European countries —
if we adopt (hat system as opposed to the American system, then I
think we shall stand in the position of offering to the people and

ns — one, that
lationof taxa-
ovinccs, — the
;o take place
rocity Treaty
l33 rcconsider-
)n two former
ired to iavite
But we meet
it theiu after
ation of a new
by the United
liich were iu-
ourselves — I
part, but ow-
ited States —
nst aggression
r opinion that
House now ;
the duties of
articles which
f the country,
iles which will
iion. It is not
e is no doubt
ase of Excise
But we have
ncreased reve-
led taxation so
)untry, and I
of the Corn-
achieve that
arly to those
tted we have
jf the Ameri-
lice 1 do not
id taking that
experience,
uties, of pro-
|xtent, assimi-
k the people
ther hand, if
the policy of
1 countries —
stem, then I
people and

the capital, which for various causes are now seeking new homes and
employment, a country possessing more advantages than any other on
this continent. I do not believe that the United States can continue
f'" any great length of time to absorb the redundant population of
iope, subject as they are to very high rates of taxation. If on the
iicr hand we in Canada, or, I would rather say, in British North America,
are able to oflfer those people land of equal fertility, and at least equal
security for life and property, and if at the same time we can shew them
that every article that enters into ordinary consumption can be bought
very much cheaper here than in the United States, I think we may rea-
sonably hope to be able to attract to our shores much of that immigration
which of recent years has swelled more than anything else the wealth
and prosperity of the neighbouring republic. We are entering on a
new state of political existence. If there is any prominent feature in
the future we have designed for ourselves, it is the establishment
of a separate and distinct nationality ; and this can only bo ac-
complished in one way. If we are in every respect to copy the policy
of our neighbours across the line of 45°, the natural course would
be to become one with them. But if, on the other hand, we believe,
as we do all believe, that the continent of North America is suffi-
ciently extensive for two nations, two empires, then it is time that, tak-
ing lessons from those great authorities on political economy who have
shed light on the commercial transactions of Europe during the last
few years, we should endeavour so to adjust our system that we may be
able to invite immigrants here, telliLg them that this is a better
country, and governed by wiser principles, than the country along
our borders. At the same time the advances we may make in this
direction cannot fail to be acceptable to our friends of the Maritime
Provinces. If the Government supposed that the policy we were sub-
mitting to the House and the country to-night would have a prejudicial
eflfect on the great question of Confederation, we should hesitate very
much lefore proposing it. But we feel convinced that in approximating
our system to that of England, and thereby levying our duties more in
accordance with those of the Lower Provinces, so far from creating difficul-
ties in the way of our union, we are removing obstructions from its
path, and taking away from the adversaries of Confederation in those
Provinces some of the arguments with which they have been accustomed
to combat the project ; and, moreover, if it is necessary to make
further changes in assimilating our tariffs — and it can scarcely be
supposed that the system of taxation which Canada adopts now will
be adopted without any change by the other Provinces — then we
shall have the satisfaction of having come much nearer to the point
at which we can mutually agree, and the shock arising from the change
and the interference with business will be much less than if we
postpone any alteration of our system until we have to maky a com-
plete change of it in all its parts. I think too that a change in tbia

^?y-

III

* u

particular in the fiscal policy of Canada may be advocated, and advooaterl
strongly in this House, on the ground of its being desirable with a view
to our relations with the mother country. I do think that now, when
we have to look to the support of England on most important ques-
tions — when we arc looking to Great Jiritain to defend us on our inland
waters — and nothing can bo more important than that — and when we
look, on the other hand, to her naval force being employed for the defence
and the maintenance of our rights in the valuable fishing districts on the
American coast — when we are calling on England, too, to assist us with
the whole force and power of the empire in any possible quarrel that
may grow out of her relations with the United States — I say that, under
these circumstances, it is well worthy the consideration of this House
whether we cannot adopt such a policy as will be more in accord
with her views, as will meet more clearly the requirements of the great
public of the British empire at large — and whether in meeting our own
immediate diihculties, we may not, at the same time, have the opportun-
ity of doing that which is at once both graceful and useful to our
fellow-subjects in the mother land. (Hear, hear.)

After referring to the state of our trade with England, I am induced to
say a few words with reference to our trade with another nation, the most
injportant European country aitcr England — the Empire of France.
1 think, addressing as I do an assembly composed of Englishmen and
Erenehmon, it is unnecessary for me to apologise for saying a few words
with reference to the importance of drawing more closely together
the bonds of sympathy and interest with a country to which many of
our fellow subjects are united by the tics of race and kindred. (Cheers.)
It is not mere words of sympathy that ought to unite us, but those ties
between friendly nations that benefit each materially. On reference to
the statistics ol' trade we find that no country in Europe is, setting aside
England, as large a dealer with us as France, or has a trade more advan-
tageous to lis. Franco, following up the free trade policy initiated by
Kngl;uid, has opened to Canada all the ports of the empire and her colo-
nies. Duties upon all the products of our country, except one, have
been rodueeii your by year, till they have almost entirely disappeared.
There has been one exception, which was of great moment to ua, as
it. aftccfed one of the largest Interests of the country — the ship-building
iutenist. In the case of ships, the policy of France was not immediately
as i'roe and liberal as it was in regard to every other article. I have
now, however, the satisfaction to state, with the permission of the
Consul-! J eneral of Franci; in Canada, that the duty on Canadian
fillips going into French ports is now reduced from twenty francs
per ton to two francs. (Cheers). [ congratulate the ship-building and
lumbering interest, on this great leduetion, which T regard as important
not merely with leii-rencc to the particular advantage it willgive us in
selling ships in i-'rc'ich ports, but as regards the greater probability of
inducing merchants to place cargoes in those vessels to seek a market in

-' J.L. ■- ■LU-.W

nd advocate fi
3 with a view
at now, when
portant quea-
on our inUind
nd when wc
)r the defence
stricts on the
issist us with
quarrel that
ly that, under
»i' this House
re in accord
3 of the great
jting our own
the opportuu-
uscful to our

SL\n induced to
ation, the most
re of France,
glishmcn and
g a few words
jsoly togetliev
vhich many of
[ed. (Cheers.)
)ut those ties
reference to
setting aside
more advan-
;y initiated by
md her eolo-
ept one, have
disappeared,
cnt to ug, as
ship-building
immediately
icle. 1 have
lission of the
on Canadian
wenty francs
-building and
as important
illgive us in
probability of
ik a market in

France. (Cheers.) It would not become me to enter at any length
into the consideration of the difl&culties that attend trade with France ;
but the fact is, we buy so little from her that wc cannot expect to sell
much to her. If we expect to sell our ships, lumber, and other Cana-
dian productions in France, we must make up our minds to deal with
her and purchase her products in return. With regard to our existing
trade, it may bo interesting to give the Committee a few figures showing
its amount. Our import trade fromGreat Britain during 186i-5 amount-
ed to twenty-one millions of dollars. T am sorry I cannot now give the
figures showing the trade of the year just closing. 1 am, therefore,
compelled to use the figures belonging to a year not so lavorable. Our
imports from the United States for the year 1864-5 amounted to
nineteen and a half millions, and from all other countries, say, in round
numbers, four millions. AVe know very well that what we imported
from Clreat Britain consisted almost entirely of manufactured goods.
There may have been small quantities of teas and other commodities,
but the great bulk of the importations from that country, say ninetecn-
twentieths, were the products of the industry of Great Britain. When
wc apply the same Mualysis to our imports from the United States we
find a great difterence. We discover that of our total imports from that
country, $4,700,000 consisted of coin and bullion, and that free goous
accounted for $10,000,000 more. I do not propose to enter into expla-
nations on this matter at present, because it is well known that the free
goods imported by us from tiie States were almost, without exception,
represented by similar goods exported from Canada to the States. This
trade was no doubt beneficial to both countries, as representing a carrying
trade, but our imports under this head could not be rejrarded in the same
l"_"-ht as articles entering Canada for home consumption. It is a uselul
and profitable trade, but not one of the same character as that in manu-
factured goods. The dutiable goods we imported .from ail other countries
during the same year amounted to about lour millions of dollars, of
which upwards of two million dollars woilh was composed of West
Indian, including Spanish vVmerican products. The amount of goods
we were able to purchaso from the Americans, out of the very
large trade between them and us, came to only about two millions of
dollars. That result was largely owing to the derangement of trade
consequent upon the late civil war. The great and projuinent point to
be remembcr(id, then, in this connection, is that our trade with the
Americans was very much of this kind — that we sent them articles of
the same character as wc imported. (Hear.) I take this opportunity ol
referring for a few moments to a letter which Mr. Brydges has been kind
enough to place at my service, containing the results of uis recent visit
to the Lower Provinces, with respect to their trade, — I refer to a letter
addressed by that gentleman to the Chairmen of the Boards of Trade
of Quebec, Toronto, Montreal, and other Canadian cities. I call attention
to the statement therein contained of the quantity of flour consumed in
the Lower Provinces during the past year : —

i! :

! ^1

|1 1

New Brunswick 256,000 bbls.

Nova Scotia 382,000 «

Prince Edward Island 33,000 "

Newfoundland 203,000 "

Making a total of 874,000 "

This is more than the average importation of flour into the United
States from Canada. Mr. Brydges goes on to point out the channels
of trade by which this flour and similar products of Canada are sent to
the Lower Provinces ; and it will be evident to any one giving the mat-
ter consideration, that by using properly the existing sources of trade
now at our command, and by constructing at an early day the Interco-
lonial Kailway, we may expect to find very soon a market for our pro-
ducts in the Lower Provinces which will be very beneficial to this
country. (Cheers.) 1 think it would be interesting to the Committee
to have some slight return made of the results of our Commission to the
West Indies. Unfortunately, notwithstanding vigorous exertions on
the part of the Hon. Provincial Secretary and his colleagues in the
mission, the full results of the inquiry are not yet in the possession of the
Government. The truth is that in dealing with the subject under their
consideration, dividing it into so many branches, they have obtained or
opened up a greater amount of valuable information than was originally
anticipated j and in ultimately endeavoring to compress the whole into
a compeodious report they have been delayed in placing the result of
their operations before the House. If I had time to read the statistics of
the trade of the United States with the West Indies and South America,
I could convince the House of the very great opening that exists there
for trade from this country, provided there is sufficient energy and
enterprise among our mercantile men to take advantage of the field. I
shall mention a few articles which we might furnish as well as the
United States. The first I shall take is fish, the trade in which between
the lattor and the West Indian Islands amounts to very considerably
over a million of dollars. Then the article of house furniture may
be referred to, as representing a trade of half a million dollars j and the
trade in ice, which amounts to one hundred thousand dollars. All these
articles wo could surely supply as easily and cheaply as the United
States. (Hear, hear.)

Hon. Mr. Holton. — To what countries does your return apply?

Hon. Mr. Galt— The British, French and Spanish West Indies,
Hayti, St. Domingo, Venezuela and Brazil. There is a variety of other
articles with which we might be able to supply those countries, extend-
ing materially our trade with them. We might furnish many of the ar-
ticles now going from the States, which are not in as favorable a position
to carry on a trade of this kind as Canada, owing to the heavy
duties there imposed upon all commodities. The amount of lumber
exported to those countries is enormous, the quantity going to Jthe

)0 bbls.
[)0 "
00 "

OO "

00 "

the United
:hc channels
a arc sent to
nng the raat-
:ces of trade
• the Interoo-
i for our pro-
ficial to this
10 Committee
nission to the
exertions on
agues in the
session of the
(t under their
e obtained or
Bras originally
le whole into

the result of
le statistics of
nth America,
t exists there

energy and

the field. I

wbll as the
hich between

considerably
irniture may
ars ; and the

8. All these
the United

a apply ?
West Indies,
riety of other
ries, extend -
ny of the ar-
ible a position
the heavy
nt of lumber
;oing to Jjthe

British West Indies amounting in value to about $350,000, and to the
Spanish, exclusive of shooks and staves,upwardsof$l,500,000, while the
value of all kinds of lumber exported to those islands, including shooks
and staves, reaches $2,500,000. Then vegetables, oats, peas, barley and
numerous other articles annually sent to the West Indies might form part
of the cargoes leaving this country and the other British Provinces, in-
stead as at present of those leaving the United States. The American
export trade with those countries is no less than sixty millions of dol-
lars, and it is not assuming too much to suppose that with the intelli-
gence and energy of our merchants directed to that end, we may before
long succeed in engrossing a very considerable portion of that trade, and
decreasing, of course by the same amount, that now enjoyed by the
United States. We know that a large portion of the former export
trade of the United States embraced merely goods in transitu to these
countries. But subjected, as goods manufactured in and entering the
States are now, to heavy duties, they no longer stand in a favorable
position, and the result must be that either the United States will supply
goods from their own stocks, at enhanced prices, or the exports will be
kept down.

Hod Mr. Holton. — Were there any obstacles to our trade with those
countries heretofore ?

Hon. Mr. Galt. — I am not aware; but the fact is we found a
.majrket for those articles in the United States, and it will be admitted
that when there is a buyer coming to your own door there is urgent temp-
tation to soil to him. The United States have now said it is not in the
interest of their country to continue their former commercial relations
with us, and the consequence is we are drivon to sock the means
whereby we can supply those articles, raised by us and consumed iu the
West Indies, direct by our own channels rather than through thoie of
the United States. (Hoar.)

Adverting to the remarks I have already made, it will be evi-
dent that the course of the Government on tiie present occasion must be
to recommend an increase of duties on certain articles, and a reduction on
others. And it is hoped and believed by the (lovernment that the
changes proposed will be conducive to the prosperity of the country, by
tending to develop our foreign market, while at the same time they will
not prejudicially affect any existing interest.

I think, Mr. Chairman, it will be universally admitted that there
is no source of income which we are more entitled to draw upon
than duties of excise. I have stated on a previous occasion
that 1 believed the only limit we need observe in regard to
raising the duties of excise was the point at which it was found
we must lose revenue thereby. We have not yet reached that
point. We have found for example that the manufacture of
distilled spirits has risen from three millions of gallons per annum to
four millions under an excise duty of 30c per gallon. We know the
c

(■ i

il!

country with which in this respect we are brought into oompetitioD, and
that the excise duty imposed b^r the United States is 32 per gallon, which,
unking allowance tor the diflfcrence of the currency of the two coun'''i?.s
respectively, is a very much higher duty than ours. This being tu-j
case, the Government think it will be in the public interest that there
should be a large increase in the excise duties on spirits, and it will be
my duty to propose an increase accordingly. The change I shall now
submit fur the approval of the House is an increase of the excise on
spirits from HOc to GOc per gallon. With regard to beer, it is not pro-
posed to increase the present- excise; T do not think wo can make much
change, the duty on this article bearing abou!; a fair proportion to that
proposed for spirits. With regard to tobacco we do not intend making
any change either. I do not hesitate to say that if we had the ma-
chinery of collection in proper order, I should recommend an increase
of tobacco duties. But until wc obtain a more perfect machinery for this
purpose, the increui-e of duties upon it would not lead to an increase
of our revenue, but to frauds upon it. I do not assume that, with the
increase of the excise on spirits we arc to have a quantity equal to that
of the past year's manufacture ; on the contrary, I assume that there will
be a falling otF from 4,000,000 to 3,250,000 gallons, which experience
teaches us is less than the average consumption during the last six years.
The revenue from Excise, then, under the proposed change, I assume,
will amount to 32,550,000, which is that which we will ask Parliament
to impose.

I now come to the changes in the tariff. All the Customs du-
ties on spirits laust necessarily be modified in order to meet the in-
creased duty of Excise. We propose to go beyond that,and to impose a speci-
fic duty ou brandy, gin, rum, whiskey and otiierspirits, amounting to 70c.
per gallon — ten cents more than the excise. In regard to brandy, we
find that in reality the country is supplied with a spurious article.
There is no question that the greater portion of the brandy sold here is
made from T/hiskey. Now, we desire that if the people pay for brandy
they should get the genuine article. (Hear, hear.) We see no reason
why they should pay a higher duty on this particular description of
spirits tlian upon any other. Therefore^we propose to put the whole oi
the spirit dutiod on a uniform footing of 10c. per gallon higher than the
Excise duty. The (^ftect of this change will be to increase the importa-
tion of certain kinds of spirits, such as brandy. At the same time, I
hope and believe that the cifect of this increase of duty on spirits will
be to induce the people of this country to consume, to a greater extent,
otbor aud less hurtful beverages than at prosent. There is reasou t(t
believe they will find an inducement in the cheapening of other liquors,
Kueli as vines, to give up the consumption of an article that all will
agree is attended with very hurtful consequences. (Cheers.) With
regard to tobacco, 1 have to .state that, after giving our best considera-
tion to the subject, the Government have come to the conolusion that

s>n

>mp6tltioD, and
r gallon, which,
e two coun* ijs
Phis being Cu'j
rest that there
and it will be
;e I shall now
the excise on
, it is not pro-
lan make much
portion to that
intend making
c had the ma-
nd an increase
chineryfor this
I to an increase
e that, with the
ty equal to that
) that there will
lich experience
e last six years,
mge, I assume,
isk Parliament

•

le Customs du-

o meet the in-

impose a speci-

lounting to 70c.

to brandy, we

purious article.

idy sold here is

pay for brandy

\i see no reason

description of

at the whole ol

ligher than the

se the importa-

e same time, 1

on spirits will

greater extent,

re is reason to

f other liquors,

le that all will

Cheers.) With

best considera-

conclusion that

• J:

there is nothing connected with the tobacco trade that ought to induce
them to put any higher duty of Customs on the manufactured article
than the present Excise rates. Unmanufactured tobacco will
still be admitted I'rce. (Hear, hear.) I must now refer to a
class of articles which 1 have no doubt every member of the House has
considered deserving of notice in cousc([ucucc of the abrogation of the
Keciprocity Treaty. I rel'cr to Indian corn and the coarse grains that we
import from the United States. 1 confess that, for many reasons, it oc-
curred to me it would be well to avoid putting any duty on them. (Hear,
hear.) My individual opinion is that it would be well, in every re-
spect, if wc could avoid putting duties on any articles consumed in ibis
countrv. But wc are unabic to do so, and besides we have to consider, to
some extent, what the temper of our people at present is, and whether the
policy we adopt is likely to produce changes in the policy of the United
States. For these reasons it is the intention of the Government to im-
pose a small duty on butter, cheese and other articles, as will be seen by
the Resolutions, and on Indian corn, barley and other coarse grains coming
here from the States, but not on wheat, of ten cents per bushel ; but the
Government propose, at the same time, to ask the authority of Parlia-
ment to remove the duty in the event of the United States making a re-
duction on similar articles exported thither from this country. If it
should be the case that injury to our trade appears likely to re
suit from the course wc propose — and 1 am inclined to think it would be
wiser, perhaps, to open our ports free to the importation of those articles —
we can hereafter make any change which appears most beneficial. Hut
I believe the feeling of the country is in favor of the imposition of some
duty on articles heavily taxed by the United States on their importa-
tion from Canada, so as to protect our own producers and encourage con-
sumption at home.

In answer to Hon. Mr. Holton,

Hon. Mr. Galt went on to say — We propose to put a small duty on
imported flour, but none on wheat.

Hon. Mr. Brown — How much do you propose to put upon flour ?

Hon, Mr. Galt — Fifty cents a barrel. I shall now refer to another
point which has engaged attention on several occasions — namely, the
free ports. (Hear, hear.) We consider, from all the evidence in our
possession as to their working, that it is not for our interest that they
should be maintained. We therefore propose to abolish them, (Cheers.)
There is only one other article on which the Government proposes to in-
crease the duty, and that is tea. We propose to add to the present
specific duty three cents per pound, making the whole duty on
that article — assuming that the quality and cost price of the tea that
will be imported will remain the same as in former years — between twelve
and twelve and a half cents per pound, instead of as at present, about
nine cents per pound. Having regard to the American duty on lumber,
it ia proposed to invite the House to put a small export duty on saw-logs.

:i r/

■f

The effect of the Amcrioan duty at this moment is to give an absolute
bonus to the importation of Haw-logs iuto the Stutcn. Wc cousider, however,
that there should be an obstruction placed on the exportation of that
article, which is taken away from our mills to bo muuufaotured iuto
lumber to compete with our own. (Hear, hear.) There is also another
point which I must advert to, and that is the mode of levying the du-
ties —

Hon. 3Ir. Brown — How much do you propose to put on saw-logs ?

Hon. Mr. Galt — Twenty-five cents per standard pine log. It is also
considered desirable to alter the mode of levying the duties, which is at
present attended with so much difliculty. It is proposed to levy them
in a manner resembling the American system, which assumes as a
basis their cost at the place of production together with all tho accumu-
lated charges which make up their market value at the port of shipment,
\ believe tho change is one which will give satisfaction to the Trade, and
it will yield an increased amount of duty of $263,000. The total
amount of increased revenue estimated to be derived from the articles
I have alluded to, namely, from the spirit duties, tea, tobacco, the
abolition of free ports, the charges resulting from tho abolition of the
Ileoiprocity Treaty, the export duty on saw-logs, and tho new mode of
levying the duty, is e2,<)10,797. (Cheers.)

Hon. M. HoLTON — Is that the whole amount of tho increase in the
revenue ?

Hon. Mr. Galt — The total revenue to be derived from the articles
which I have mentioned will be as stated.

Hon. Mr. Brown — Including the whole duty on tea ?

Hon. Mr. Galt — The whole of tho tea, sugar and spirit duties. I am
referring, of course, to the Customs duties; but now I will give the
total of the Excise.

Hon. Mr. Holton — But what will bo the increase from the Customs ?

Hon. Mr. Galt — About $700,000 ; but the hon. geutlcmau will sec,
when I complete my calculations, what the probable result will bo. Well,
sir, the remaining articles in tho Customs Tarifl", at existing rates, aro
estimated to yield $4,334,105 ; and consequently tiio total estimated
amount of Customs, at the existing rates and with the changes I have
mentioned, would be $7,244,902, and of Excise, 92,550,000, making
together the sum of §9,794,902, which, with the minor receipts I
referred to before — namely, the Crown Lands, Post Ofiice, &c., amount-
ing to $3,925,333— would make a total estimated income of $13,720,23.5
against a total estimated outlay of $12,370,150. Consequently, the
changes which I have mentioaed in the Excise aud Customs would leave
at the disposal of the Committee the amount of $1,344,085; and I
think, sir, when we come to consider the mode in which that sum will
be applied in the way of reduction of duties, it will be found entiicly to
justify the changes proposed in the way of increase. (Hear, hear.)
Now, sir, in proposing to deal with this estimated sum of $1,344,000, 1

01
Ul

•;.|

M _f

1 %

^Sl

aa absolute
ler, however,
tion of that
lotured iuto
uIbo another
ying the du-

baw-logs ?
;;. It is also
, which is at
o levy them
ssuincs U8 a
the accuuiu-
of shipmcut.
ic Trade, and
, The total
the articles
tobacco, the
)lttioQ of the
new mode of

reaso in the

11 the articles

uticM. I am
ill give the

le Customs ?
lau will sec,

be. Well,
ig rates, are
li estimated
iges I have
^00, making

receipts 1
:c., amount-
113,720,235
[uently, the
[would leave
)85 ; and I
lat sum will

entiicly to
[car, hear.)
[,344,000, I

may be permitted to advert to the principle that I think ought to
govern us, as far as circumstances will permit, in the readjustment of
our tariff. In doing this, I will take first the article of sugar. Now,
under any circumstanccH, it would have become my duty to propose
changes in the duties ou sugar. They are objected to as not resembling
those of any other country. They arc not known in the foreign markets
where sugai is produced and sold ; and great diihculties arise from uni-
form rates not being levied at our ports. For these reasons it has
appeared desirable that some new scheme be adopted with regard to
them ; and the rjovcrnment, after getting the best information on the
subject which it could obtain, and after receiving reports from skilled
officers in its service, has come to the conclusion that the interests of
the country will be best promoted by adopting the English standard of
duties for all qualitios of sugar, brown and refined. We think that, ir-
respective of the (jucstion of the amount of duty to be derived, there
are many collateral advantages in our having here the standard adopted
by one of the largest sugar-purchasing countries in the world — a standard
which is known to all countries where sugar is produced — a standard which
affords the advantage of having decisions by the most skilful officers
in England on all questions that could arise in the matter — a standard,
which in England is found to be based on what is due to the consumer.
We propose, then, to adopt the English duties with regard to this article,
and 1 may mention that, in the aggregate, they do not differ very materially
from our own. We shall, however, lose somewhat by adopting the English
tariff — probably about $150,000 on the total amount of duty, a sum about
equal to the increased duty we propose to put on tea. The aggregate du-
ties ou tea and sugar, as now proposed, will be about the same as we derive
from those articles under the existing tariff; but we shall have this advan-
taj?e in regard to sugar, that, as I said before, we will have a standard of duty
known to all the countries in the world with which we have dealings in
sugar — a scale somewhat lower than that in use now, and one more pro-
portionate to the varying qualities of sugar imported. But in altering
the sugar duties, it becomes necessary also to alter the duties on mo-
lasses J and with regard to this article, it is the intention of ihe Govern-
ment to recommend that, the duties shall be made, as in England, pro-
portionate to the duties on sugar. Wo shall thereby assume a classifica-
tion that will be found to prevent the improper practices to which the
revenue has been subjected, by the introduction into the country, under
the form of molasses, of an article which might be termed liquid sugar.
(Hear,hear.) We shall by this change gain about $72,000 in the revenue
from molasses, unless a larger quantity henceforth enters the country
uuder the name of sugar. The duties it is proposed to levy on sugar and
molasses are as follows : —

Candy, brown or white refined sugar, or sugar

rendered by any process equal in quality

thereto, and manufactures of refined sugar. $ 3.00 per 100 lbs.

.1 :

I ^

White clayed sugur, or sugar equal to white

clayed $2.60 per 100 lbs.

Yellow miiscovado and brown clayed sugar ... 2.25 <<

Brown muscovado sugar 2.00 *'

Any other kind of sugar 1.75 "

Cane juice 150 "

MolasHCH 1.00 "

Hon. Mr. Holton — What relation do those duties bear to thu Eng-
lish scale ?

Hon. Mr. Galt. — They are just the same; we have followed the
lOnglish scale in everything. There is the sumo amount of duty per
pound and per hundred weight, and the tariff is, in fact, the English
tariflf. With regard to molasses, instead of assessing the duty by measure,
which gives rise to frauds upon the revenue, wc shall now levy the rate
per 100 lbs. (Hear, hear).

T now come, Mr. Chairman, to the wine duties; and with ref-
erence to them I may say that I should bo very glad if any alfer-
ations in the duties shall have the effect of increasing the eon-
sumption of wine and decreasing the consumption of spirits. (Hear,
hear). I think the Ooramitteo will agree with mo that wine is
one of those articles whose importation we should encourage
from France and also from Spain and Portugal, in exchange for
the productions of our own country. I think the more we can iniroduco
it into the Province the better for the people in every sense. (Hear,
hear.) Our duties on wine are not high now, but they are open to this
objection, that, being a*/ valorem, wc do not obtain the real amount of
revenue that ought to be derived from the importation of the article.
If any hon. gentleman will take the trouble to look at the lleturn shew-
ing the importations of wine, and remember that the average duty on
all kinds is only about 14 cents per gallon, he must find, I think, that in
the revenue derived from it there must be a very considerable loss to
the Province from fraud. I think, therefore, that in this case, as in
that of sugar, we may with advantage adopt the English plan of levying
the duties. The standard adopted by England in its treaty with
France was one based on strength rather than value. That standard,
I find, was the result of the most elaborate enquiry by skilled chemists
and officers of the British Customs in all the wine-growing countries
in the world ; and that enquiry goes to shew that the fairest mode of
assessing the duty is according to the strength of the wine rather than
its bulk. The duties, as now established in Kn '"nd, are, consequently.
Is. per gallon on wine not above the strougth of 26 over proof, accord-
ing to Syke's hydrometer ; 2s. 6d. on wines between 26 and 42 over
proof; and 3d. additional per gallon for every degree of strength beyond
42 over proof. Now, it is not necessary for us to adopt the English
S'^ale of dnties, but there are reasons for adoptiog the Euglish standard

'fi

j^fs-

1 with rcf-
' any alfer-
n; the con-
in. (Hear,
at wine is
cncouraf;c
cchangc lor
an iniroduco
ise. (Hear,
open to this
I amount of
f the article.
Leturn shew-
rago duty on
hink, that in
rablc loss to
s case, as in
in of levying
treaty with
at standard,
ed chemists
ig countries
rest mode of
rather than
jonsequently,
»roof, accord-
and 42 over
ingth beyond
the English
ish standard

for levying them ; and therefore I propose, sir, to submit resolutioDS
whereby l\\v wine duties will be —

On wine in wood, containing not over 2C dogroes

of proof spirits 10 cents ^ gal.

On wine ount?iining over 20 degrees and less than 42

degrees oi' proof spirits 25 " "

On wine containing over 42 degrees of spirits

On wine in bottle, except Hparluing wine $1 21) '^ dozen.

Half pints 00 "

With regard > sparkling wine, the Qovemment propose to adopt a
ditl'crcnt scale, and I will state to tho Committee the reasons therefor.
It is found that a very largo proportion of tho sparkling wine brought
into this country is spurious — that is, it is not the honest product of the
vine-grower. Now, I think that it is desirable to protect the public as
fur as possible against such a fraud as this; and it is certain that if the
sparkling wines imported here are not genuine, thev can afford to pay a
higher rate of duty than other descriptions. It is therefore proposed to
impose a duty of $3 per dozen on genuine sparkling wines, their genu-
ine character to be vouched for by a certificate of growth ; and on wines
riot accompanied by this certiiionte, a duty of $4 per do/en. (Hear,
hear.) •

Then, with regard jo tho article of coffee, it •is proposed to make
the duty three cents per lb., instead of three cents per lb. and 5 per
cent. u<l valorem, as under the present tariff.

I now come, sir, to the principal items in our Customs Tariff, and they
arc the duties on manufactured goods. They are at present classed
under tho 30, 25, 20, and 10 per cent, lists, tho bulk of them being
under the 20 per cent. list. There ore only one or two under the 30
per cent, list, and two or three under the 25 per cent. Well, sir,
we propose to class tho articles of soap and starch now under the
30 per cent, list with other manufactured articles. Those now pay-
ing 25 per cent, are boots and sloes, harness and saddlery,
clothing or wearing apparel made by hand or sewing-machine. These
articles we also propose to remove from this separate list and class them
with the ordinary articles of manufacture. It is proposed by the
Government to make a reduction in the duty on all tho manufactured
goods which bear 20 per cent, to 15 per cent. (Cheers.) x\t the .same
time it is proposed to deal with most of the articles in tho 10 per
cent, list, by abolishing the duty altogather and making the articles
free. (Renewed cheers.)

Hon. Mr. Holton. — AH the articles ?

Hon, Mr. Galt, — All the articles in the 10 per cent list, with the
exception of jewellery, cotton yarn and several minor articles which will
be specified in the Resolutions, will be made free. I may say that this 10
per cent, list consists almost wholly of articles that go into consumption

by manufacturers in the manufacture of other articles, and are such as
iron, steel and lead. The Government propose to make these articles
free, and they believe that by doing so manufacturers of all those classes
of goods on which a rate of 20 per cent is now imposed, and which will
be reduced to 15 per cent, will be able to manufacture the same descrip-
tions of goods more economically than before and offer them to the
public at lower, but still at remunerative rates. This advantage will
therefore bo gained by these changes, that while they will be able to
supply our oWn people with goods five per cent, cheaper tban under the
existing tariff, the manufacturers will be placed in a more favorable
position than now with regard to competition in foreign markets. (Hear,
hear.) I think that so far from these changes injuring them, as some
may perhaps fear at the start, their position will bo greatly improved.
(Hear, hear.)

Hon. Mr. Holton. — How ? By higher protection ?

Hon. Mr. Galt. — No, but by the cheapening of every article that
goes into consumption in the manufacture cf their goods ; and with
regard to all manufactured goods, I have no hesitation in expressing
my individual wish, sir, that we were in a position now to abolish
Customs duties on all of them. (Loud cheers.) And I hope the
(iay will come, uotwithstanding the sneer of the hou. geutlemuu,
when he as Finan(ie Minister, or some one whom he can support,
may be able to make a clean sweep of all Customs duties on manufac-
tured goods. (Renewed cheers.) We cannot make that change now,
but when the Government feel that they can give very considerable
relief to the people of the country, in regard to the duties on articles
which enter largely into consumption, I do not think they ought to be
sneered at for proposing it to the Committee. (Hear, hear.) The
policy of this country has been to make every article of natural produc-
tion imported into the Province free, and for revenue purposes to im-
pose duties on all those manufactured articles which it was thought
were able to bear the burden, affording at the same time an incidental
amount of protection to our own manufactures. Now, we propose to
decrease the duties on the largest class of manufactured goods entering
the country, and to take them off altogether from those articles which to a
great extent enter into the manufacture of other articles in this country.
I believe the effect will be to reduce the cost of manufactured goods
consumed by the people, and the expense of manufacturing them by the
manufacturers oi" the country. (Hear, hear) The reduction, more-
over, will be a movement in the direction which I hope will hereafter be
followed either hy the present Government or some other that may
succeed it ; and it, would have been my duty, acting on behalf of my
colleagues and myself, to have proposed a reduction of the duty from 2U
to 1l') per cent on the bulk of the manuiacturcd goods imported, if wi'
had felt tliat we could safely have done so in presence of the threaten-
ing aspect of affairs, and if we had not been called upon to enter upon

are such as
hese articles
those classes
i vrhich will
ame descrip-
ihem to the
irantago will
1 be able to
m under the
re favorable
kets. (Hear,
em, as some
y improved.

^ article that
Is ; and with
a exprestiing
w to abolish
I hope the
i^eutlemuQ,
can support,
on manufac-
chango now,
considerable
is on articles
^ ought to be
hear.) The
itural produc-
irposes to ira-
was thought
an incidental
wo propose to
oods entering
les which to a
this country,
ictured goods
them by th(5
uetion, more-
l hereafter be
lov that may
behalf of my
duty from 20
1 ported, if wi'
the threaten-
to enter upon

the unusual expenditure which the events of the last tL ee or four
weeks have rendered necessary. (Cheers.) It was our intention, I
say, to have proposed that reduction but for recent occurrences with
which the members of the Committee are all familiar.

Mr. Shanly asked what effect the proposed reductions would have
upon the revenue.

Hon. Mr. Galt. — The changes mentioned will, it is estimated,
decrease the revenue from duties on manufactured goods to the extent
of about ^1,236,000, which with the reduction in the duties from sugar
and other minor reductions in the Customs, will make a total decrease of
§690,000. This estimate is not based upon the importations of these
classes of goods for the year about to close at the end of the present
month, Avhich are to the value of about $24,000,000 ; but upon an
estimated importation of only $20,000,000. In making the estimate wo
have not for obvious reasons thought it prudent to assume that the
importations of next year will bo within four millions of those of thi^
year just drawing to a close, (Hear.) The cflFect of all the changes
we propose will be then to increase the Excise duties by about
$1,000,000, and to decrease the Customs duties to the amount of about
$1,300,000. It is in the belief that that reduction is one that will tend
to develop and enlarge our trade with England, that it will also cheapen
the cost of manfactured goods to every consumer in the country, that it
will benefit the farmer who buys largely of iron and other goods to carry
on farming operations, the manufacturer who is interested in obtaining
cheaply the materials that enter into his manufactures and the mechanic
whose interests lie in obtaining cheaply the clothing and other goods he
consumes ; it is in the belief that these advantages will all flow from it,
and that the people of the country will be greatly relieved by taking
some of the burden oiT the articles they consume, that the Government
venture to propose the reduction to the Committee. The farmer and
the mechanic will obtain the iron and the clothing they require at
cheaper rates, and with regard to the manufacturer, ho will find that
labor and everything that goes into consumption in carrying on his
manufacture will be reduced in cost, and consequently he will be in a
better position to compete not only for the supply of our own people,
but also for the supply of the people of other countries — and when
I look at the position of onr manufacturers, 1 think that, under
existing circumstances, they may fairly look forward to the time
when they will be able to compote with foreign manufacturers, not only
in our own markets but also with tlioso oi the United States in other
countries, (Hear.) The manui'acturers of the United States are, it is
true, protected by a high tarilfimposed for other than revenue pui'poses ;
but in every other respect they arc in a position of "inferiority to
our own. They have to pay taxes on nearly everything that
enters into their manufactures, they have further to pay heavy internal
duties on the goods they make, and the labor they employ must
D

Xf/

a.!

H:ii

be paid for at a high rate in order that the laborer may bear the heavy
burden that falls upon him ; and, indeed, if it were necessary to bring
arguments before this Committee to show that the reductions we propose
will put the manufacturers as well as the people of the Province in
a better position, it might readily be done by pointing to the position of
American manufactures now and comparing it with what it was five
years ago. (Hear, hear.) It cannot be denied that it is one of far less
advantaga, and that it cuts them off from competing in other maxkets,
while it limits competition at home ; and I do not hesitate to say
that it will be from a want of manufacturing energy on the part of our
people, which I am not prepared to admit, if we do not seek and obtain
other markets in addition to those wuich offer themselves in our own
country. (Cheers.) I have every confidence, sir, that instead of dimin-
ishing the enterprise of those of our people who are disposed to engage
in manufacturing undertakings, the reductions we propose will strengthen
their position and do them a greater amount of good, by pointing out to
them that it is not by giving them control of the single and limited mar-
ket of Canada, but by placing them in a position where they can com-
pete upon favorable terms in the markets of the world, that they will
be able to build up a great manufacturing industry in this country.
(Hear, hear.) If they desire to extend their manufactures, it must be
by giving tliem them that position where, by cheap labor, and by ob-
taining at a low rate the articles used in their manufactures, they will be
able to enter into competition with the manufacturers of other nations ;
and under any other policy their manufactures, instead of expanding
and becoming more profitable, must diminish and go down. (Hear.) I
have now, but at a length which I fear has trespassed upon the Com-
mittee — rcries of no, no") — adverted to all the changes which we pro-
pose to make in the Customs and Excise tariffs of the Province ; and it
is my intention to ask the Committee to give its consent pro
forma to those changes, especially to those proposed in the Excise
duties, in order to prevent spirits being taken out of bond. (Hear,
hear.) This consent which we ask will not bind the House to
concur in the resolutions, but will give the Government the same
authority as was given on a former occasion, to levy the increased duties
at once. Of cour.se, if the changes are not confirmed by the House, the
duties will be refunded to the parties from whom they may be collected;
but if they should be confirmed, the authority asked for will enable the
public at once to reap the benefits to be derived from the increased
duties. (Hear, hear.)

I now propose, Mr. Chairman, to draw the attention of the Com-
mittee to another subject — the floating public debt of the Province.
In calling attention to the account of the income and expenditure for
the inconaing year, it is my duty to refer to a point connected therewith,
and that is the provision to be made for those portions of the public
engagements which are to accrue during the year — I mean those

f
&•

ar the heavy
lary to bring
3 we propose
Province in
e position of
it was five
ae of far less
her maxkets,
iitate to say
i part of our
k and obtain

I in our own
!ad of dimin-
ed to engage

II strengthen
inting out to
limited mar-
ley can com-
lat they will
his country.
IS, it must be
•, and by ob-

they will be
bher nations ;
>f expanding

(Hear.) I

on the Com-

hich we pro-

ince ; and it

consent pro

the Excise
md. (Hear,

House to
it the same
reased duties
e House, the
be collected;
I enable the
le increased

of the Com-
he Province,
enditure for
d therewith,
' the public
mean those

portions of the public debenture debt which will fall due with-
in the current year, and also the floating debt, which will ma-
ture. The debentures falling due this year are priuoipally com-
posed of two kinds— the $1,500,000 borrowed from the IJank of Mont-
real three years ago, when the hon. member for Chateauguay was
Minister of Finance, and the sum of £140,000 sterling, which Is the
remaining portion unpaid of the Imperial guaranteed loan. India
bonds are held to meet this latter sum, and consequently it is not neces-
sary to consider it. There is also a small amount of Welland Canal
debentures maturing this year, making together $2,570,000, from
which the sum of $681,000 of India bonds being deducted, leaves
$1,889,000 to be provided for within the year. The floating debt due
in England on the 1st of October amounts to $3,1 52,000. I may say with
regard to that debt, that £520,000 sterling of it was borrowed at a
rate of interest of eight per cent., payable in October next, and that
bonds are held as security for it. This loan was made to the Pro-
vince in or about the month of January, for the purpose of apply-
ing it to the reduction of the floating debt. To the Bank of Montreal
we shall owe on the 1st of July next $750,000 besides, which bears
interest at the rate of seven per cent.

Hon. Mr. Brown — Is that in addition to the loan for militia pur-
poses ?

Hon, Mr. Galt — It is in addition to the million and a half borrowed
from the bank three years ago.

Hon. Mr. Holton — When was it borrowed ?

Hon. Mr. Galt — Three or four weeks ago. When the Government
found that they would have to call out upwards of twenty thousand men
for service on the frontier, and it was quite unoertain as to the extent of
expenditure to which they might be obliged to go, they thought it prudent
to apply to the bank for that loan. We have not as yet used the money,
having had the means of getting along without it ; but at the same time
a portion, though not a large portion of it, will be used in the payment
of that expenditure. After making these payments, we shall
have left $674,000, deducting which sum from the total amount
duo, $3,902,000, will leave the sum of $3,228,000 of float-
ing debt to be provided for within the year. This added to the
$1,889,000 of debenture debt which matures, will make a total to be
provided for of $5,117,000. Now, I am bound to say, that to make pro-
vision for this large sum of money, independent of the ordinary require-
ments of the country, will demand the most careful consideration of this
Committee. The Government have given the best attention in their
power to it, and I shall now have the honor of submitting to the Com-
mittee the views they entertain as to the means which, in their opinion,
it is necessary should be taken for the maintenance oi the public credit.
I am bound to state, that in view of the disturbed state of affairs in

•ill

p]urope, and of the money market in England, we are not of opinion
that it is possible to raise that money by means of loans in England
in time to meet our obligations as they mature. AVc do not think it is
possible, on any terras which we could submit to the favorable consider-
ation of this House, to meet those engagements by means of foreign
loans. (Hear, hear.) The difficulty we experienced in carrying over
the sura of five or six hundred thousand pounds sterling, when the state
of financial affairs in England and Europe was by no means so bad as it
is now, was such that we believe thut any attempt to renew that debt
by means of a short loan would be disastrous to the finances of the
country, and bring about a calamity the responsibility of which we are
not prepared to assume. If we feci, therefore, that we cannot raise the
money by means of a foreign loan, we have only one course left us to pursue,
and that is to raise it frora Canadian resources in Canada. (Hear.)
There is only one way in which we sec that the difficulty can be sur-
mounted, which is by resuming for the Province a portion of the
credit it has hitherto given to the Chartered Banks of the country.
(Hear.) I think, sir, the time has arrived when wo must assume a
sufficient portion of the circulation to enable us to meet the liabilities
we have now to provide for, and it is somewhat fortunate that we
are thus compelled to consider this question of the cur-
rency before the expiration of the bank charters in 1870.
Were we to allow matters to go on until then, without deal-
ing with the question, it would be found next to impossible to re^
sume the privilege which has been conceded to the banks. If now,
however, we are able to take a portion of the currency into our own
hands — not making it irredeemable but redeemable in gold — I think we
may be able to submit to the monetary institutions of the country such
conditions as will induce them very shortly to surrender their power of
issuing circulation altogether, and we may look forward to the establish-
ment, within the Province of Canada, of a currency which will be based
on the security of the public, and will give to the bill-holders such
guarantees as will not expose them to the financial depressions and
panics which have frequently arisen in other countries. (Hear.) 1 do
not propose now to go at length into the details of the scheme— they
will be laid before the House at an early opportunity — but the principle
is this ; the Government propose to ask from Parliament power to issue
notes, redeemable in specie on presentation in Montreal or Toronto, to
the extent of five millionsof dollars ($5,000,000). They also propose
to agree with any banks which will surrender their right of circulation
to give them a rate of interest on their average circulation of notes,
not to exceed five per cent., for the remainder of the poridd until the
expiration of their charters. (Hear.) They propo.se of course alway.s
to require a sufficient amount of specie to be held against the Provincial
circulation, to ensure that under no circumstances by any possibility can
the slightest doubt attach to the redemption of the notes as they may be

■if I

lot of opiniou
i in England
lot think it is
able consider-
3 of foreign
jarrying over
vhen the state
IS so bad as it
lew that debt
nances of the
which we are
nnot raise the
t U8 to pursue,
ida. (Hear.)
y can be sur-
ortion of the
' tho country,
ust assume a
the liabilities
natc that wc
f the cur-
3 in 1870.
irithout deal-
)ssiblo to ro-
les. If now,
into our own
— I think we
country such
licir power of
the establish-
|will be based
lolders such
essious and
lear.) 1 do
ulicme— they
the principle
ower to issuu
Toronto, to
iilso i)roposc
f circulation
ion of notes,
(»d until tho
curse always
10 Provincial
oHsibility can
they may be

brought forward. There will be held against them in the first place
specie, varying in amount with the amount of tho issue ; and in the second
place, securities of the Province for the remainder of the m-,\c. while
behind all that will be the engagement of Parliament to make good to
the holder in gold the face-value of every note ho has. (Hear, hear.)
It is plain that the requirements of the country can be met in this way
alone, and that they can be met in this way is considered certain. The
probability is that when the whole of the features of the scheme are
laid before this Committee, Avhich I propose shall be done on Thursday
next, it will be found that the Government offer sufficient inducements to
the banks to come into the plan and give it their support. If, however, it
turns out that they entertain different views, then the Government, having
obtained from Parliament the power of issuing their own notes and making
them a legal tender — of course only so long as they are redeemable in
specie — will use other channels for getting them into circulation. (Hear,
hear.)

I have thus adverted generally to the position ol the country as in-
dicated by the accounts of the past year, and have stated what our
hopes and fears are in refei'cnce to that which is approaching ; and, while
I have to apologize to the Committee for having detained it at such
length, T trust I may be permitted in conclutsion to say a few Avords in
reference to the position wc now hold. (Hear.) There is no doubt
whatever, Mr. Chairman, that the condition wo arc now in is one of
transition. We arc about to pass from being a single Province
to become a portion of a congeries of colonies, giving us —
not, individually but collectively — very much greater influence than we
have hitherto pos-sessed. In all probability this is the last session wc
.shall hold as the Parliament of (Janada, and I venture to suggest that
it may hereafter be a subject of Congratulation to us that in the last year
iif our isolated state we saw ourselves in a position to overcome the
linancial difficulties we have been so long contending against. (Hear.)
Again, while we know that we may be called upon to make greater sacri-
Kccs in maintaining our position than we have done heretofore — sacrifices
not merely of treasure but possibly of blood — we have the satisfaction
of knowing from the history of the past year that those sacrifices will
iheerfully be made. (Hear, hear.) We are no longer in doubt as to
tho support of our own people — wo see how nobly they will stand by
their institutions — and surely we may take this as an indication not that
the people are dissatisfied with theprospect of entering into a new phase
of existence, or with the course the Imperial Government is pursuing,
but that they are pleased with the position which past legislation has aided
in securing, and satisfied with the prospect of that place in the future
which has been indicated to them by this Parliament. They think, sir,
wc may now be sure, that it will add to their prosperity, and feel happy
that it will bind them closer in that connection with Great Britain which
they so dearly prize. If this bo the case — if this be a fair deduction

^9/

ill.

from the events of the past few months — I say wo may be proud that ouv
career as sin isolated colony will terminate in such a spirit. Finally, I
think it will bo well if in the last session of the Provincial Parliament of
('anada we shall have been able to approximate in some measure to that
system of political economy which is bearing such magnificent fruits in the
niothcr country — to remove some of the burdens which weigh on the
industry cf the people, and to open new markets for their products.
(Hear.) Tf wo have lost the markets of the United States, we have at
the same time shown our desire to open new channels by which the
productsof our people may reach other countries. We have not merely con-
lined ourselves to au investigation — carried on though it has been under
the personal supervision of one of the members of the Government — but
we now hold forth the olive branch t-> the mother country, showing by
our legislation and our official acts our disposition to join with her
in carrying out a truly liberal policy. If there is one thing more than
another which will soon bring our American friends to reason — for I
shall always continue to call them friends though for the moment they are
commercially estranged, and I shall always de?ire to renew with them
our former intercourse — if there is one thing I say which will bring
thorn round to a sense of the commercial relations which ought to exist,
it is the ieeling that we are to a certain extent adopting a course which
will make us independent of them. (Hear, hear.) If there was one
thing more than another, apart fiom the irritation growing out of the
events which happened during the late war, which instigated them
in abrogating the Reciprocity Treaty, it was the belief that they could
compel us into a closer political alliance with them. It is therefore de-
sirable, and indeed our manifest duty to show them, not in a spirit of
hostility, but certainly in that of indepsndence, that while we value their
friendship, and value their trade, we will not conform to unreasonable
terms and will not have either our commercial policy or our political
allegiance dictated to us by any foreign country. (Cheers.)

^■n

»roiid that ouv
t. Finally, I
Parliament of
easurcio that
it fruits in tho
(reigh on the
icir products.
!S, wc have at
by which the
Dt merely con-
as been under
L'rnment — but
,^, showing by
oin with her
^ tuore than
eason — for I
ment they arc
sv with them
h will bring
ught to exist,
course which
here was one
ig out of the
tigatcd them
at they could
therefore de-
in a spirit of
ee value their
unreasonable
our political

THE P K O P O S K D

CANADIAN TARIFF.

SPECIFIC DUTIES.

Spirits and Strong Waters,
viz. : —
Spirits or Strong Waters not being
sweetened or mixed with anj
article, so that the degree ol
strength thereof cannot be as
certaincd by Sykes' Hydrome
ter, for every gallon of the
strength of proof by such hy
drometer, and so in proportion
for any greater or less strength
than the strength of proof, and
for any greater or less quantity
than a gallon, viz. : —

Brandy

Gin

Kum

Whisky

Spirits of Wine

Alcohol, not being Whisky.
Perfumed Spirits, to be used in

perfumery only....

Cordials, other than ginger,orange,
lemon, gooseberry, strawberry,

elder and currant wines

*Acetic Acid and Vinegar

Ale, JJeer and Porter, in casks...
Do do in bot... )

4 quart or 8 pint bot. to the gal. j
Wiues of all kinds, except Spark-
ling Wines, containing not over
2t> degrees of proof spirits by
Sykes' Hydrometer, in wood...

Old Duties.

30 p. c. k 15c. p. gal.
100 '' 15c. "
100 " 15e. "

40 cts. per gallon.

\ 100p.c.&15c. p. gal.
20 per cent.

20 100 p. c. &15c. p. gal.

20 " 4c.
30 per cent.

07 30 p. c; 5 bot. to gal.

20 per cent.

*Acetic acid waa charged 20 per cent. ; Vinegar as above.

SPECIFIC DUTIES.

Do do containing over 2G
degrees and not more than 42
degrees of proof spirits by Syke.s'
Hydrometer, in wood

Do do containing not
more than 42 degrees of proof
spirits,by Sykes' llydrometcr,
in bottles

^i.nd an additional duty of 3 cts.
per gallon for every degree oi"
strength beyond 42 degrees.

"Wine — Sparkling, of till kinds, in

))ottles, 4 in ({rts

J)o do do in pts.

And when not accompanied by a
certilicate of growth, an addi-
tional duty of ill quarts

do do in pints

SuGAft, viz. : —

Candy — brown or white, refined
sugar or sugar rendered by any
process equal in (|uality thereto,
and manufactures of relined su-
gar, including succades and con-
l';^ctionery

White claved sutrar, or suuar ren-
dered by any process equal iu
(|uality to white clayed, not be-
ing retincd or 0(|uai in (quality
to refinod

Yellow JMuseovado and brown
clayed sugar, or sugar rendered
by any process equal in quality
to yellow muscovadu or brown
clayed, and not e(ju;d to white
clayed

]irown Muscovado sugar, or sugar
rendered liy jiiiy jirocess eijual
ill quality to brown muscovado,
and not e(jual to yellow musco-
vado iir brown clayed

Any other sugar not equal in <|ua-
lity to brown muscovado...

Vroposrd
Duties.

" 25

i*cr doz.
Quarts, 1 50
Pints, 75

per doz. ^3 00[

1 50

1 00
50

p. lOOlbs :J 00

2 m

2 UO
1 76

Old Duties.

20 per cent.

15 p. c. & 8c. p. lb.

10 p. 0. iV 2c. per lb.

Id Duties.

)V cent.

cSr ac. p. lb.

0. vV 2c. per 111

33
SPECIFIC DUTIES.

Cane Juice
Molasses

Coffee, j:;rccn

Koaatcd or ground . . . .
(Chicory or other root or vegetable

used as coffee, raw or green

Chicory, kiln-dried, roasted or
:round

Proposed
Duties.

«»'

Oils—

Coal and Kerosene, distilled, puri

lied and refined

Naptha

13enzole

lie tined Petroleum

Crude Petroleum

((

per gal.

Tobacco — Manufactured, viz. :

Cavendish

(jommon cut

Fine cut

Canadian Twist.....

Snuif and snuff flour, dry

Snuff, damp, moist or pickled....
Cigars — Value not over $10

perM

Do over $10 and not over

^20

Do over $20 and not over

840

Do over $40 per M

Butter

Cheese

Lard and Tallow

Fish, salted or smoked

Wheat and llye Flour

Flour and Meal of all other kinds

of grain

Grain of all kinds, except Wheat .
Meats, fresh, salted ox smoked....

per lb

1 .50
1 00

per It) 03

Old Unties.
p. c. & 5c. p. gal.

5
041 30

3c. p. lb.
He.

V20 per cent.

10
15
15
15
OG

10
05
15
02
10
08

2 00

10 cts. per gal.

15 cents per gallon.

80 p. c. k 10c. p. lb.

30
30

5c.
15c.

2c.
lOc.

8c.

((

40 p. c. and S?2 per M.

3 00

40 "

4 00

40 "

((

5 00

40 '<

per It)

04 Free.

OIJ

per brl.

p. lOOlbs 25

per bush. C 10

per Ih

^ ?/-

\ /

AD VALOREM AND SPECIFIC.

Tea

Old Duties.
lo. per ll» and 15 p. c.

AD VAL()RI^:M— PUOrOSED DUTY, 25 per cent.

Ciiuuiujou, niacc luid nutincj!;s ^

8piccs, including ginger, pimento and pepper,

ground j

I'ateut medicines and medicinal ]>reparatious |

not elsewhere spccilicd J

Essences and perfumery, not elsewhere speciticd.

Olil I) lit its.
:J0 per cent.

20 per cent.

AD YALOKEM— rUOPOSEI) DUTY, 15 per cent.

Old J)utics.

25 per cent.

Manufactures of Leather, including boots and")

shoes, harness and saddlery }

Clothing or wearing apparel made by hand or

sewing machines

Soap ^

Starch i

Dlacking J. ',U) per cent.

Dagatelle boards and billiard tables and <ur-

nishings, not elsewhere specified

Brooms and brushes of all kinds

Cabinet ware or I'urniture

Candles and tapers of tallow, wax or any other

material

('arpcts and hearth rugs

Carriages

Coach and harness furniture j. 20 per cent.

Chandeliers, girondoles and «,'as littintrs

Lninaware, earthenware and crockery

Cider

Clocks [Z\

Corks

Cottons ,

Dried fruits and nuts .'

Drugs not otherwise specified ,

Free from U. S.
20 per cent.

8/)

^^^

Proposed Diifj/, 15 per cent.

Fancy Goods and Millinery, viz. : —

Articles embroidered with gold, silver or other
metals, bracelets, braid, &c., made of hair,
feathers and flowers, fans and fire screens,
gold and silver leaf, millinery of all kinds,
ornaments of bronze, alabaster terracotta or
composition, silver and gold cloth, thread
and other articles embroidered with gold or
for embroidering, thread laco and insertions,
writing desks, fancy and ornamental eases
and boxes, and other fancy goods

Foreign newspapers, sent otherwise than
through the Post Office ,...

Fire works

Gun powder

(Juns, rifles and Are arms of all kinds

(jllass and glass ware, plate and silvered, stained,
painted or colored

ilats, caps and bonnets

Hat plush

Hops

Hosiery

Inks of all kinds, cxcei)t printing inks

Hardware, viz. : —

(!utlery, polished, of nil sorts

Japanned, planished tin, J}ritannia metal-ware.
Spades, shovels, axes, hoes, rakes, forks and

edgetools, scythes and snaths

Spikes, nails, tacks, brads and sprigs

Stoves and all other iron castings

Other hardware

Olv Dutiea.

20 per cent.

Plank and sawed lumber of all kinds.

{

Leather, viz. : —
Sheep, calf, goat and chamois skins, dressed,

varnished or enamelled

Linen

Locomotive engines and railroad cars -

Maccaroni and vermicelli

Manufactures of marble or imitation ol' marble

other than rouKh sawn slabs or blocks

Manufactured, 20 p. e.
Unmanufactured, free.

20 per cent.

■lii

1 ?

' I

•4

Proposed Dnti/, lb per <rnt.

MannfactutTs of caoutchoiio, iuUia rubber or
mitta |)t>rc'ha

iMaiiutacturos ol' fur, or of which I'ur is the
principal part

Manufactures of hair or niohuir

Manufactun-s of papicr-iuach6

Manufachiros of t^'rass, osier, pahu leaf, straw,
whaU'bone or willow, except plaits elsewhere
iiuMitioned

iMamifacturcs of lioiie, shell, liorn, pearl and

ivory •• •

Manufactures of ,«;ul(l, silver, electro-plat(\

argentine, albata, anil (Jernian silver and

pitted and i^'ilded ware of all kinds

Manufactures of brass or cop|er

Manufactures of leather or injitalion of leather
Mannfacttiri's of wood not elsewhere sj)eeified.

.Manufactures of cash mere

Musical instrunieiils, includini; nmsieal boxes

and clocks

Mustard

Machinery not elsewhere specified

Oil cloths

Oils, in any way rectitied or prepared, not

elsewhere spccitied

Ol)iuiu

I'ackages, as nierehandise

Paints and colors

Paper

Paper hangings

Parasols and umbrellas

Plaster of Paris and Jlydraulie Cement, ground

and calcined

Playing cards

Pickles and »Sauees

Preserved meats, poultry, lish and vegetables.
Piinted, lithographed or copper-plate bills,

/jill-heads, iVc, and advertising pamphlets .

Shawls

Silks, Satins and Velvets

Silk, woolen, worsted and cotton embroideries,

and tambour work

Old Duties.

20 per ccut.

10 per cent.

20 per cent.

^90

Proposed Dnfi/, 15 pet- ant,

Silk twist aD(l silk and mohair twist, not olso*
where Bpecificd

Spices, uiiground, includini^ K'^n*-''", pimento
and pepper

S ta tiotu- 1>

Small wares

Tobacco pipes

'i'oyn

Niiniisli, other than bright or black

Woolens

Hook, map and newsprinting paper

JMigravings and prints

Flat wire for crinolines \

Jewellery and watches ^

Maps, charts and atlasscs, not elsewhere men-

tioucd \

lloady-mado Sails I

Spirits oi* Turpentine J

Kiah-oil, crude or retincd \

Fish, products of v

Animals *.

Old Duties.

20 per cent.

15 per cent.
10 per cent.
Uncovered, 10 per ct.
Covered, 20 per cent.

10 per cent.

L'ree.

*».K

PROPOSED TO BE FREE.

Anchors — .

Hrass, in bars, rods or sheets

Hvass or copper wire, and wire cloth of brass

or copper

Copper, in bars, rods, ])olts or sheets

Copper, brass or iron tubes and piping, when

drawn

fttON —

(Canada plates and tin plates

Galvanized and sheet

Wire, nail and spike rod

J]ar, rod or hoop

Hoop or tire for locomotive wheels, bent and

welded

Roilcr plate

KoUcd plate

Lead, in sheet

Litharge *

Up to cwt., 10 p. c.
Over cwt., free.

10 per cent.

Proposed to he Free.

Locomotive and engine frames, cranks, crank ^
axles, railway car and locomotive axles,
piston rods, guide and slide bars, crank
pins and connecting rods

Medicinal roots

Phosphorus

Silk twists, for hats, boots and shoes

Steamboat and mill shafts and cranks, forged
iu the rough

Steel, wrought or cast

Straw, tuscan and grass fancy plaits

Tin, granulated or bar

Zinc or spelter, in sheet

Acids of every description, except acetic acid
and vinegar

Alum

Anatomical preparations ,

Antimony

Antiquities, collections of.

Apparel, wearing, of British subjects domiciled
in Canada, dying abroad

Arn;ol .*

Articles for the public uses of the Province..

Articles imported by and for the use of the
Governor General

Articles for the use of foreign consuls, when
such consuls are subjects or citizens oi' the
country they represent and not engaged in
trade and commerce

Ashes, pot, pearl and soda

Bark, berries, nuts, vegetables, woods and drugs
used solely in dyeing

Bark, tanner.s'

Bleaching powders

]>olting cloths

Borax

Bookbinders' tools and implements

Books — Printed, Periodicals and Pamphlets,
not being foreign reprints of Hritish copy-
right works, nor blauk account books, nor
copy books, nor books to be written or drawn
upon, nor school or other books printed in
this Province

Old Duties.

10 per cent.

J^/

' Duties.

it.

Proposed to he Free.

Bristles

Broom corn

Busts, casts and statues of marble, bronze or |
alabaster, paintings and drawings, as works i
of art, specimens of sculputure, cabinets of I
coins, medals, gems, and all collections of •
antiquities '

Burrstones and grindstones, wrougbt and uu-
wrought

Biscuit and Bread from (Jreat Britain and the
\^. N. A. Provinces

(^Gcoa Paste, from do do ...

Cables — Iron chain

Hemp and grass

Caoutchouc, or India Rubber, and Gutta Pcr-
cha, unmanufactured

Carriages of travellers and carriages employed
in carrying merchandise, hawkers and circus

troops excepted

Cement, marine or hydraulic, unground

The following articles, when imported by and
for the use of officers of Her Majesty's
Forces serving in Canada, viz. : —

Cigars for officers' mess

Silver and plated ware for officers' mess. .
China ware do

(ilass ware do

Table Linen do

Spirits do

Wines do

Malt Liquor do

Billiard Tables and Bagatelle Boards, when
imported directly by and for the use of
regimental corps serving in Canada. . .
Clothing — Plain and military, imported
by officers of the army servingin Canada.
Cofte, Sugar and Tea, when imported by
or taken out of warehouse for Her I\Ia-
jesty's Troops serving in Canada, under
such restriction, and regulations as may
be prescribed by the Minister of Finance

Old Duties.

Free.

Under I in. diam. 20 p.c.
Over <-' free.

Free.

-illli

Proj)oscd to he Free.

Church Bolls

( *ommuuiou Plate

Coal aud Coke

Clothincf and Arms for Indian Nations

Do for the Army aud Military

Forces in the Province

Commissariat aud Ordnance Stores

Cork wood or bark of the cork wood tree. . . .

(yotton and Flax waste

(Cotton wool

Cream of Tartar, in crystals

niamouds aud precious stones, uot set

Donations of c^thing, for gratuitous distribu-

Old Duties.

20 per cent.

tion by charitable societies.

Drain Tiles, for agricultural purposes

Drawings, as works of art

Earths, clays, sand and ochres

Eggs

Emery, glass, and sandp-iper

Farming utensils aud implements, wheu spc- )■

cially imported for the encouragement of |

agriculture

Felt hat bodies and hat felts ..

Flax, hemp and tow, undressed

Firewood

Fire brick and clay

Fish, fresh, for daily consumption

Fishing nets and seines, hooks, lines and twines

Furs and skins, pelts or tails, undressed

Gems and medals

Gold beater's brim moulds aud skins

Grease and scraps

Gravels

Gypsum or Plaster of Paris, neither ground

nor calcined

Hair — angola, goat, Thibet, horse, or mohair,

unmanufactured

Hay :.:.;;;;;

Hides, horns a

Free.

[udis:

pelt

120

Junk and oakum

Kryolite or Cryolite.

20 per cent.

Free.

Duties.

Proposed to be Free.

Locomotives and passcn<!;er, bagjijage and frioght
cars, running upon any line of road crossTtig
the frontier, so long as Canadian locomotives
and cars are admitted free, under similar
circumstances, in the United States

xManilla grass, sea grass and mosses for uphol-
sterers' purposes

Manures

Maps and charts, imported not as merchandise
but as the personal eflFects of persons arrivin"-
in Canada to become bond fide settlers in the
Province

Marbles in blocks or slabs, unpolished, and not
specially shapen

Medicines for Hospitals

Menageries — horses, cattle, carriages and har-
nesses of

Military and naval stores

Models

Musical instruments for Military Bands

Nitre or saltpetre

Oil cake or linseed cake

Oils, cocoa nut, pine and palm in their crude,
unrectified and natural state

Ores of all kinds of metals

Osiers and vpillow for basket makers' use

Philosophical instruments and apparatus, in-
cluding globes when specially imported i'ur
the use of Colleges and Scientific and Lite-
rary Societies

Pig iron, pig lead and pig copDcr

i'itch and Tar

Printing ink and printing presses, except port-
able hand printing presses

Rags

liesin and llosin

Mice

Sal ammoniac, saj soda and soda ash

Salt

Scrap Brass

.f^f

Old Duties.

Free.

Free on special appli-
cation

Free.

Proposed to he Free.

Seeds for agricultural, horticultural or maou-

facturing purposes only

Settlers' goods

Ship's Blocks

" Binacle Lamps

BuDting ,

Sail cloth or canvas from No. I to No. 6

Compasses

Dead Eyes

Dead Lights

((

Deck Plugs

((

Shackles

Sheaves

Signal Lamps

Travelling Trucks

Specimens of Natural History, Mineralogy or

Botany

Slate

Stone UQwrought

Stereotype Blocks for printing purposes

Electro Type do

Sulphur or Brimstone, in roll or ground

Teasels

Tin and Zinc or Spelter, in blocks or pigs....

Trees, plani« and shrubs, bulbs and roots

Treenails

Tobacco, unmanufactured

Turpentine, other than spirits of turpentine...

Type metal, in blocks or pigs

Varnish, bright and black, for ship builders..

VegetAbles

Veneering

V/ood of all kinds, wholly unmanufactured....

Wool, flax or fibrilla

Coin and bullion

Leather — vik : — sole and upper leather not-

elsewhere specified

Mowing, reaping or threshing machines

Mill ftn4 faptory machinery of allj^inds

Old Duties.

Free.

'120 per cent

s^^-

PROHIBITIONS (PROPOSED).

The following articles are prohibited to be im-
ported, under a penalty of two hundred dol-
lars, together with the forfeiture of the
parcel or package of goods in which they
may be found, viz. :

Books, drawings, paintings and prints of an
immoral or indecent character, coin, base or
counterfeit

, EXPORT DUTY (PROPOSED).

Upon every Standard Saw-Log exported out of
(^anada, except the same be exported directly
to the B. N. A. Provinces, 25cts

Old Dutm.

The same.

Free.