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Mr. Speaker, in rising to move that yon leave the Chair and that the House go into Com- mittee of Ways and Means, I desire, as is the caatom, to ask the attention of the Honse not only to the consideration of the Estimates for the next year and the changes that the Gov* emment propose in the tariff, but to review, as briefly as possible, the financial condition of the conntry^and the re- salts that have followed the adoption of tb j policy accepted by Parliament in 1879. We have had laid upon the Table of the House since 1879 the Departmental reports, includ- ing the Trade Heturns and the Public Accounts, which pat Parliament in possession of all the information conndoted , with the administration of the Government, with its ex- penditures, with its policy, and with its acts. I desire, Mr. Speaker, on this occasion, as the House is in possession of these reports, to call the attention of Parliar ment to their contents, and I trust that before I <)lose V\ i X- ^05h ( 2 I shall be able to satiafy the supporters of the Govarnment au to the economical admiDistration of the affairs of this coantry daring the five years, m well as the saccess that has attended the policy called the National Policy, adopted in 1879. I say I hope to have the assent of the supporters of the Government to the facts and statements that I pro- pose tc submit ; and as we also have before Parliament the returns from 1874 until 1879 containing the results of the administration of our predecessors, I hope that by the con- trast we will be able to make, we will also have the assent of hon. gentlemen opposite to the declarations that I am about to make in favor o. this policy. Sir RICHARD CARTWRIGHT. Your faith is great. Sir LEONARD TILLEY. My faith is great— yes, Mr. Speaker, and I am glad to know that it is greater than that of the hon. gentleman opposite, and I trust that before we close this discussion — because I have no doubt that, as in Sessions past, it will take a wide range, and that a good deal of time will be occupied in it— we will have reason to feel that I am nearer right than my hon. friend opposite, who takes a more gloomy view than we do on this side of the House with reference to the circumstances to which I refer. It has been the custom, during the last three Sessions of Parliament, and it has been the custom of hon. members opposite out of Parliament, to endeavor to show that the Government of the day has been extravagant because we have added largely to the expenditure of the country, and they claim that it must necessarily, therefore, add to the taxation of the country in proportion to the increased expenditure. Now, Sir, one of the objects that I have in view in addressing the House on the present occasion is to show that while we have increased the expenditure largely, we have not increased the taxation of the country beyond the increase of the population. It is a very > ■f.i... . » •easy thing for hon. members to say hero or else- where that the expeDditure of the oountry has iDoreased from 124,000,000 to $30,000,000 or $31,000,000, and to state that that is ample and safficieot evidence to prove the extravagance of the Government. I find on looking over the expenditure of the late Government that from 1874 to 1879 the average expenditure was nearly $24,000,000, I think $23,900,000. The smallest expenditure, I believe, was in 1877 73. It was remarkable that the expenditure that year was loss than usual — I will not say what object hon. gentlemen had in reducing it then and increasing it the follow- ing year -but I will take for the purposes of comparison, and in order that hon. genllomcn opposite may have the full benefit of 1877 78, the expenditure for that year, and compare it with the expenditure in 1874, and I will call the attention of the House to each of the items to show that many of those e:.penditures on which there were increases did not add one dollar to the taxation, and were nee vssary and justifiable in the public interest. The difference between the expenditure for 1877-78 and 1884 was something like $7,500,000, and I can quite understand that that statement, made in Parliament and out of it, is calculated, without explanation, to mislead the public with regard to the expenditures of the Government. The first item I will consider is the expenditure under the head of railways and canals. The expenditure in 1884 was $1,035,443.81 more than that of 1877-78. Well, Sir, did that cost the country anything ? On the contrary, it was a saving to the country. Let me give you, Mr. Speaker, the receipts and expenditure from 1874 to 1879, for railways and public works, and the receipts and expenditure from 1879 to 1884, as an evidence that that increased expenditure did not cost the country anything, but that it was in the interest of the country and of the revenue. Here are the figures : 4 Recelpd from July lit, 1874, to July lit, 1879 1 8,61«,»» Ixpenditnret from Jaly lit, 1874, to July lit, 1879 11,688,318 Deficit H I 3,072,020 or $614,405 per annum — Receipti from lit July, 1879, to lit July, 1884 , •j3 yjj 3gg Eipenditure from 1ft July, 1879, to 1st July, 188* „ 14,476,470 Deficit $ 758,081 or $151,616 per annum. It must be borne in mind that between 1877-78 and 1884 there was an increased railway mileage worked by the Government, that there was increased business transacted, and that, of coarse must necessarily increase the expenditure, especially when by the additional mileage worked we had additional bueinoss, for every person understands that you cannot carry 100,000 tons over a railway at the same expenditure that you could carry 70,000. There must necessarily be an increased expenditure j and, therefore, so far from this $1,030,000 odd representing increased taxation to the country the deficit was reduced from $600,000 to $100,000, making half a million dollars, as the benefit in a financial sense received by the Dominion. The next item of expenditure to which I desire to call the attention of the House is that of the Postal Service. The expenditure for 1884 was $588,026 more than it was in 1877-78. That added 60 much to the expenditure of the year. But did it add to the taxation ? No, it did not. I heard an hon. member opposite— I do not see him in his place now— complain because the Government, and especially the Postmaster General, had not provided additional postal accommodation in a certain district. "We know that since 1877-78 there has been an enormous increase in the accommodation I <; .^iven. We know that the number of offlccH est&blished, the increased mileage of road over which the malls are oon- "veyed, and the namber of letters, papers and postal cards have respectively increased, and I can appeal to hon. mem- bers on both sides of the House, who will agree with me that the increased facilities provided during the last five or six years have been very great indeed, to say nothing of the increased expenditure to establish postal service in Manitoba and the North West Territories, where the expense would naturally be far in excess of the receipts from the service rendered there for a number.of years. In view of all those increased facilities, all the increased accommodation, the opening of 4,000 or 6,000 miles of railway since 1874-76, the railways receiving subsidies for the mail service they per- form, so soon as the mails were sent over them, it was but natural that there should have been a very large and con- siderable increase. Has it added anything to the taxation of the country ? Nothing whatever. Let us see what are the facts with respect to that service. Here is a statement of the receipts and expenditure : Receipts, Ist July, 1874, to 1st July, 1879...$ 5,763,025 Expenditure, Ist July, 1874, to Ist July, 1879 8,358,360 Deficit M $ 2,605,335 or $521,067 per annum- Receipts, 1st July, 1879, to 1st Jaly, 1834...$ 7,748,560 Ezpeaditure, Ist July, 1879, to 1st July, 1884 10,064,549 $ 2,315,989 or $463,196, against $521,067 for the first five years. It is all very well to point to increased expenditure, but so long as there is an increased return equal to, or in excess of, that expenditure, and so long as we are giving additional accommodation to the country, I am sure this House and the people will never objact to any such increased expendi- ture made under those circumstances. The next item to 7 / 6 which I desiro to call the attention of tbo Houho by way of comparison is tbo Dominion Lands expondituro. That expenditure was in 1877-78, 837,628; 1884, $166,803, an in- creaee of $76,270. Now, Sir, when we consider the vast territory which has been transferred to the control and management of the Department of the Interior, when we oonsidor the large sales that have been made in the Inst Ihreo or four years, when we consider the number of settlers- who have gone upon the lands of that country — and from which lands we have received no money return — when we consider that the receipts for lands from Manitoba and the North- West from 1874 to 1878 were $89,392.61, while the receipts from i879 to 1884 were $4,070,543.67, 1 think it will be understood by this House why the management of 80 large an estate as that, the saie of such a large portion of that country, and the sottloment of tens of thousands of people upon its lands, justified the increased expenditure of something like $60,000 or $70,000 last year, as compared yfith the expenditure of 1878. Mr. MACKENZIE. Is that exclusive of the capital expenditure ? Sir LEONARD TIL LEY. No, I will come to that by- and-bye — the hon. gentleman will find that I have not for- gotten it. The next item of expenditure is publif* works and buildingH. The expenditure under that head in 1877-78 was $998,594.70. In 1884 it was $2,908,851.65, or atv increase of expenditure amounting to $1,910,256.95. The expenditures last year on public buildings and harbors, and all other works under the management of the Public Works Department, were nearly treble what they were in 1877-78. Now, Sir, so far as this expenditure is concerned, I admit that it is a charge on the country — I admit that there is no direct return given. But who will say that if the Government or the country has a surplus suflScient to- induce Parliament to vote dnxAa of money lor the conHtrac- lion of public buildings, for the improvement of harbors, and the navigation of our riverH — that the Government is not Justified in spending it in that way ? These works and buildings are part of the assets of the Government. If we do not erect these buildings we would have to pay rents for inferior ones, and we know perfectly well that it has been, and necessarily will bo, the policy of the Government of Canada, that whenever the funds of the Government admit it, these buildings shall be erected in every important town and city throughout the Dominion of Canada. The only question is whether the treasury will admit it, and how rapidly those works are to be undertaken, "We know perfectly well that the trade and commerce of the country must largely depend on th ''icilities that are given to it. We have since 1S67 expended a large sum of money in improving the navigation of our rivers, in improving our harbors, in establishing harbors of refuge throughout the country, and I do not hesitate to say that in my judgment, whenever the funds of the country will admit it, Parliament will justify the erection of these buildings for the public service throughout the Dominion just as rapidly as the work can be done. The next item is Interest, and under the head of increased expenditure for that item is the sum of $651,297.06, paid in interest over and above the interest which was paid in 1877-78. Now, Mr. Speaker, a large portion of that interest is met by the increased receipts of interest, perhaps reducing it by $300,000, But I am in a position to state here that, though that sum i» nominally $651,297 more than was paid in 1877-78, the net interest paid by the people of Canada during 1884, in pro- portion to its population, was less per head by 8^ cents than it was in 1877-78. The next item that swells up the expenditure is the excess of $337,746.65 paid into the Sink- ^ » 8 ing Fund more than was paid in the year 1877-78. It is only necessary for me to remind the House that the sinking f and is a sum laid aside towards the redemption of the debt, and that it is practically a redaction of the debt to that amount, instead of an increased tax, thoagh it appears on the expenditure side of the account. The next item is Immigration and Quarantine. In tbe year 1877-78, the expenditure under that head was reduced very materially from what it had been the previous three years. It was $180,691.4*, while in 1883-84 the expenditure was 1575,- 326.72, an increase of $394,635.28. I may stat« to the hon. gentlemen opposite that the average expenditure during their Administration for immigration and quarantine was $300,000 a year, and for thci five years from 1879 to 1884 it was $340,000 a year, with results which, I need hardly say, wBre three-fold greater than the results of the expenditure during the five years from 1874 to 1879. Sir, I think it is not necessary for me to say anything more than to make that statement with reference to that branch of the ex. penditure. The next item is Militia and Defence, the expenditure upon which in 1877-78 was $618,136.58, while in 1884 it was $989,498.22, or an increase of $371,364.64. But if we go back and take the five years from 1874 to 1879, we find tb",t the expenditure for militia was about the same as it has been from 1879 to 1884— that is for the five years from 1874 to 1879. The whole expenditure for militia and defence varied very little from the expenditure that took place for the five years 1879 to 1884, though there is a coneidorable diflferenoe in the expenditure of 1877-78 and that of 1883-84. But we know perfectly well that not- withstanding that over the five years there has been an average about the same, yet in 188*, we had four new organisations, consisting of three infantry schools and one cavalry school— one in the Maritime Provinces, one in the w 9 Province of Quebec, one in Ontario/ one in British Columbia and a troop, I think, in the Province of Quebec. These additional organisations were established last year. I think, Mr. Speaker, that on this question, perhaps, there Uiay naturally be in the House some little difference of opinion with reference to the expenditure under the head of militia. But I recollect perfectly, though then not a member of the Parliament of Canada, that engagements were entered into by gentlemen belonging to both parties, with the Imperial Government, when in England, for an expen- diture of 31,000,000 a year for the defence of the country. I think such an arrangement was entered into before the Uiion took place. At all events, I think under existing circumstances, there will be very little objection to this increase. When the establishment of those four organisa- tions is considered, this expenditure is not in excess of the five years previous ; and I think it will not be considered a useless expenditure, but by a large portion of the members of this House and the people of Canada will be regarded as a wise and judicious protection of the country* The next item of expenditure is nader the head of Fisheries. In 1377-78 $93,262.28 were expended, and in 1883-84 $286,700.14, making an increase of $193,437.86. I need not explain to the House that this increase is the result of its action in giving the fishermen of Canada a bounty, which has had the most beneficial results, so far as the production of our fisheries is concerned. I think there wore no objections offered to that proposition eveu on the opposite hide of the House. The only anxiety hon. gentlemen opposite manifested, if my memory serves me, was that it should be simply a vote of Parliament for $150,000 a year, but that it should be embodiedXin a Bill so that it might be made permanent. Therefore, under these cir- cumstances, I think no hon. gentleman' on the other side 10 will raise any objection to this increase of expenditure. Tnen we come to the expenditure on account of Indians. In 1877-78 it was 0421,503.66, and in 1883-84, it was Sl,ll6,153.87, an increase of $894,650.21. I may remark that in 18V7-78 all the Indian treaties that had been entered into just before were not so far completed that all the Indians received in that year the sum provided for them under the treaty arrangements, and therefore a consider- able proportion of the $694,000 is the result of treaties that were entered into previous to 1878. "We had hoped in the present year to have had a decrease in that expenditure j but, unfortunately, owing to circumstances over which neither this Parliament nor the Government have any con- trol—owing to the fact that the buffalo has ceased to make its appearance in the North- West Territories— it has been found expedient, in the interests of the country, during the last two or three years that those unfor- tunate Indians, instead of being left to starve or to imperil the property or the lives of the white men in that country, should, at all events for a time, until educated to farm or to provide for themselves, be maintained at the public expense rather than bring upon that country any such disaster as would follow from their being allowed to fall into a starving condition. Therefore, much as the Gov- emment and the Houi^e may regret that we have not been able yet to bring about a decrease of that expenditure, it is hoped ere long that that amount will be reduced. The next item, Sir, is the mounted police. The expenditure has increased from $345,958.68 in 1877-78 to $485,983.66 in 1883-84, or an increase of $140,024.98. This increase is due to the necessity of an increase of the force. I may say here that, taking the force that was in Manitoba from 1874 to 1878, and the iiounted police together, the expenditure during the last five years on the mounted police has been *si ■i w '^ 11 e( lent to the expenditure foi' the force that was i» Ma .toba and for the Mounted Police. But this increase of $140,000 was considered necessary by the House. Last year Parliament voted the sum of money for this increase,, for various reasons which were then presented by the First Minister. The next item is Subsidies to Provinces, which have increased $130,906.51. This has been caused mainly by the concessions that were made to Manitoba from time to time from 1879 down to 188i. The next item is Legis-^ lation, in which there is an increase of $44,73 1.86. This is the result of increased cost of the publication of Hansard and of the increased number of members of Parliament under the census of 1881. Then the Lighthouse and Coast Service has increased from $461,^67.71 to 8520,524.38; an increase of $58,555.67. Now, Sir, I think there is perhapa scarcely any expenditure made by the Dominion of Canada from year to year, of something like $40,000 a year in the first place for the construction of lighthouses, then perhaps- $10,000 a year or nearly that for their maintenance, that is more in the interest of the country than that expendi- ture. We know that in 18G7, when this Dominion was organised, the lighthouse service was very inferior to what it is to-day, and we know perfectly welt that during the early administration of the Department that had charge of this expenditure, very large appropriations were made, and the result has been, as every man con- nected with trade and commerce knows, to cheapen the rate of insurance on vessels coming into the country, ta diminish the risk of the life of the mariner, and to reduce the rate of freights on imports coming into the country, as well as the rate of freights and expenditure on products going out of the country, and this has been a direct benefit to the whole country much greater indeed than any additional expenditure that it was found necessary to make for that ' 1 13 great and important interest. The expenditure for the maintenance of the lights— because the increasels largely due to that— is one which I am satisfied will be justified by Parliament and by the people of Canada. The next item is Civil Government, and I take the expenditure of 1877-78, because it was lowest in that year ; I take the most favorable year for hon. gentlemen opposite, because I do not wish them to say during this discussion : You have selected the highest year of our expenditure. I desire to stand upon firmer ground than that, and am willing to give them the benefit of the lowest expenditure for the purpose of making the comparison to which I now call the attention of the House, While the expenditure of civil government for 1877-78 was $823,369, last year it \,&h $1,084,417, or an increase of $26!,0i7 Mr.CASGEAIN. Hear, hear. Sir LEONARD TILLEY. The hon. gentleman says, hear, hear. I do not wonder at it, because hon. gentl amen opposite have made this one of the great charges against the Adminis- tration throughout the length and breadth of the country, to prove the extravagance of this Administration. Now I desire to call the attention of the House to the circumstances that have led to this increase of $261,000 in six years. One of the difficulties that every Government must experience in pre- paring the Civil Service estimate, is the increase that is inevitable under the provision of the Civil Service Act, by which a very large proportion of the employes receive each a yearly increase of $50. This increase for ,ht last six years is estimated as follows : It is estimated that 420 of the Civil Service employes have received an increase of $50 a year, and each year since 1877-78, that is during six years or a total increase of salary to each employs of $300. That, amount for 4-20 civil servants gives $127,000 of an increaee. Then we have had transferred to the Civil I V\ 13 liture for the ase^^is largely )e justified by ) next item is e of 1877-78, lost favorable do not wish selected the stand upon ive them the •se of making of the House. 1877-78 was increase of in says, hear, men opposite Lhe Adminis- country, to Now I desire tstances that One of the ence in pre* 'ease that is vice Act, by receive each iht< last six that 420 of increase of 1 daring six 3y6of$300. 7,000 of an the Civil I ■1 Service account the expenditure on the Geological Survey, the cost of the employes in that branch of the public service. These officers were formerly paid by a vote of the House, which did not appear under the head of Civil Service appropriation, but last year and the year before this vote was transferred to the Civil Service,, and the amount of their salaries, $36,000, is added to the expendi* tare, making, not an increased expenditure, but a simple transfer from one account to another. As it appears now under the head of Civil Service expenditure, it increases that vote to the extent of $36,000. Then, there is the High Commiesioner's salary and contingencies $14,000. Well, our friends opposite had not a High Commissioner, but they had a gentleman for a time in London, an Agent- General with a liberal sdary; and I may say with refer- ence to the services rendered by the High Commissioner that the very fact of sending him to London, apart from the other services he has rendered, has placed the Go7ernment in a better position towards their financial agents. It was intended at the time that he should be our financial agent, but it was found impracticable to carry that intention out. The very fact, however, of such intention being made known, led to a reduction in the charges of our financial agents and the saving of a sum of money annually greater than that which the High Commissioner's office has cost us. I venture to say that hon. gentlemen opposite, should they, at a future day, have the responsi- bility of office thrown upon them, will find that the services of this gentleman, or if not of the present incumbent, the services of one of their own friends acting in a similar capacity, would be found of so much value to them and so much in the public interest of the Dominion that, object as they may to the expenditure now, I doubt if they will ever ^ -peal that arrangement or discontinue the office. At all u I i M -events, that adds $14,000 to the civil list. Then there is the Board of Examiners who last year were paid $4,661, another addition to the Civil Service vote. This leaves about $80,000 to be accounted for, and it may be accounted for in this way: $80,000 is the increase from 1877-'78 to 1884, on new employ^?. I heard the other night the remark made that the number of employes in the Civil Service had •been about doubled. Well, Sir, that is not the case. If we take the number ot permanent employes of 1877-'78 and the extra men paid by the day, and the number of employes in the Civil Service in 1884, and the extra men, we will find that the increase is just 119, or twenty men a year, on an average, added to the service during the last six years. Now, I desire to lay before the House the circumstances which, in my judgment, warrant that increase. Take, in the first place, the Department of Public Works. The expenditure under that Department last year, as )' have said, was three times as great as it was in 1877-78. This House will quite understand that it is impossible to carry out an expenditure of $3,000,000 at the same cost as you would an expenditure of a million dollars. That is quite clear. Then we come to railways and canals. The expenditure in that branch has increased. It will be quite understood by this House, when wo take into consideration the increased mileage of railways that are being worked by the Govern- ment, when we take into account the large expenditure since 1S79 on contracts from the head of Lake Superior to Winni- peg and inBiitish Columbia, when we take into account the sapervision which is necessary to be exercised in the con- struetion of the easterly portion under contract by the Cana- dian Pacific Eail way Company, when we consider the increase of business as compared with 1877-78, this House will agree with me that these circumstances warrant the increase in O06t of this Department during the last five years. Then 15 we come to the Department of the Inteiior. I called attention « few moments ago to the fact that the Department of the Interior had to deal with a territory nearly as large as the whole of Eorope ; three-foarths as large at all events ; that in the last four years the Minister of that Department has sold and received money for sales made to the amount of ^4,000,000, that he has had necessarily to superintend the surveying and all the arrangements necessary for the settle- ment and selling of this enormous territory, so that it cannot he expected that the expenditure would be anything like what it was five years ago, when only $90,000 was received for sales of land, when that country was not penetrated by railways, and there was little or no expenditure necessary. Then we come to the Post Office Department. There has foeen a v^ ry large additional number of employes engaged in the Post Office Department. When we look at the facts, I think it will be admitted that the increased number of employes is warranted. What were the duties performed in 1884 as compared with 1818 ? In 1878 we had arrangements made for the sale of money orders only with Great Britain, the United States, and Newfound- land. Since that period that privilege has been extended to sixty countries in addition to these — extended, I may say, to the whole civilised world. Money orders can now be had from the Postal Department to almost any part of the civilised world. That could not be done without increasing the expenditure ; but, on the other hand, let me say to this House that the increased expenditure has -been largely met by the charges made for these money orders. Therefore, if while this extension has increased the expenditure of the Department and the number of employes, it has given in return to the revenue, no doubt, a sum quite equal to the expenditure for those additional employes. In iiddition to that, we find that the number of open accounts in 16 ill ili ipil the Post Office Savings Banks in Jaly, 1878, was 25,535, and in 1884, 66,682, siiowing an increase daring the five years of 41,147. We know perfectly well that this increase in the number of accounts involved an enormous amount of labor. If any one goes to the Post Office here and deposits $10 or $20, under the provisions in regard to the postal sav- ings banks, that money is transmitted to the general office, and the general office has to send to thr n;ian who makes the deposit an acknowledgment oi the receipt in each ease. That is the protection of the Department and depositor, as the depositor is told that, unless ho receives a notice from the Department that the money is to his credit he must at once make enquiry with regard to it. But every one of these deposits, even if it be only of $1, requires an acknowledg- ment, and entered by a person in the Department here ; eo that, when that is extended to 41,147 additional accounts all over the Dominion of Canada, you will see how great must be the 'ncrease of work in the Dapartment under such circumstances. And that is apart from the general extension of the business of the Department outside of these two particular accounts to which I have referred, and warrants us in coming to the conclusion that, with an increase of sixty-three countries outside of those named in 1878-79, there must necessarily be an increased expenditure in the Department, but for that expenditure there is an equivalent return. The next De- partment is the Finance Department. The additional work that is thrown upon that Department is mainly through the Savings' Banks. The deposits, as the House is aware, have largely increased. The number of open accounts in 1878 was 19,9^2, and, in 1884, 43,406, making an increase of open accounts of 23,481. These accounts all require to be checked here, the parties having deposits are notified by the Depart, ment^ and a large amount of increased work is involved, ^ t n though, perhaps, the inoreases are not bo gioat as in some other Department. Sir RICHARD OARTW RIGHT. I do not want to inter rapt yon nnneoesBarily, but are these separate aooounts, separate depositors ? Sir LEONARD TILLEY. Yes, they are separate accoants. Sir RICHARD CARTWREGHT. I beg pardon, but I dare say it will not embarrass you. Does each separate account mean a separate depositor ? Sir LEONARD TILLEY. No, not in the Savings Banks, but it does in the Post Office. In the PoBt Office, notice is given of each deposit, it is not so with the Government Savings Bank. It is an increase in the number of accounts, but does not involve the same amount of increased work as in the Postal Department. The next is the Militia Depart- ment. As I stated before, the establishment of the additional schools must necessarily lead to some extent to an increase of expenditure, but the increase of expenditure in that Department is not larger than would reasonably be expected from the increased force and the additional schools and organisations that have been established. The Audit Department, as hon. gentlemen know, is a separate and distinct department, which is nov» necessarily more expensive than before, because it is much more efficient in its operation, and, although it requires a certain additional number of clerks, not much increase has been made in the last four or five years. Still, as the busi- less of the country increases, some increase has been necessary there. In the Customs Department, the increased revenue collected, the increased number of ports, theexten* sion of the Customs Department to Manitoba and the North- West Territories, the increased vigilance required under the Act of 1879, which has thrown very considerable additional ir . ' ,; 1 ;' ■ 1 18 work upon that Department, would naturally leac' to some increase in the expenditure there. In the Indian Depart- ment, there is the Mounted Police, and there is an iuci cased expenditure for the Indians, which would account for the increased expenditure there. In the Inland Bevenue Department, an additional expenditure has been necessary owing to the passage of the License Act, which threw upon that Department some additional expenditure last year. In the Department of Agriculture, I desire to call the attention of the House to the increase of that Department since 1878, and I think the hon. members will bo fully satisfied that that Department is justified in asking the additional expen- diture which is proposed, Mr. POPE. It is a model Department. Sir LEONARD TILLEY. It is a model Department I know. When wo consider the additional work that has been performed in that Department in the last three or four yr "rs in connection with immigration, we can see that it wouid warrant some increase in the expenditure ; but there is a portion of its business to which I wish particularly to call the attention of the House, which would warrant to the fullest extent the additional amount expended in that Department since 1878. In 1878, the number of patents issued was 1,172, and the revenue received from the Patent Office was $33,663. In 1884, 2,456 patents were issued, with a revenue of $69,530. This gives some idea of the increased work thrown upon that Department in that particular branch, and it must be borne in mind that the salaries of the in- creased number of employes there have been paid four- fold by the additional fees received from the increased num- ber of patents granted, an increase of 836,000 since 1877-78. Then there is the Department of Justice, in which there is, necessarily, an increased amount of work, from the increased population of the country, which leads to an 19 leao' to some iian Depart- an iuci cased loant for the ad Bevenne an neoessary threw upon ftst year. In the attention t since 1878, satisfied that t^ional expen- 'epartment I vk that has three or four m see that it ; but there is 'ly to call the ;o the fullest Department issued was it Office was th a revenue reased work ular branch, es of the in- 1 paid four- ireased num* nee 1811.*JB, >, in which r work, from L leads to an increased number of convict*. The Departments of the Secretary of State and the Privy Council depend, as far as their work is concerned, largely upon the development of the country from the increase of the population, from the settlement of the North- West, and from the various ques- tions and orders that roach the Ck)uncil, and the correspon- dence that passes through the Secretary of State. Every hon. member will understand that an increased population means, to these Departments, an increased business, an in- creased number of documents which pass through them and which must necessarily increase the expenditure. Taking these facts into account, the increase of $30,000, or of twenty men per year from 1^78 to 18?4, is, I think, BufHciently justified, and so there is a justification for the employment of those 1 19 men in addition to those em- ployed eithor temporarily or permanently in 1877-78. Now, Sir, I have gone over the items of the increases to make up the expenditure of $7,500,000 in 1884 over the expenditure of 1877-78. Many of those, as I have shown, do not cause an increase of taxation, but, on the contrary, have caused increased revenue, and, therefore, we should confine our consideration to these expenditures for which there is no money return ; they are limited in character, and if they are limited in characler it is found that the advantages the country derived from these expenditures is an equiva- lent, and more than an equivalent, for the expenditures that have been made. Under these circumstances I wish it to be understood that when hon. members opposite make the statement that the extravagance of the Government must be judged by its increased expenditure of $7,500,000 in six years, we have a good and sufficient answer to give, and that is that that sum, during those five years, has not neces- sarily resulted in increased taxation to the people. Now I proceed to establish that fact. From 1874 to 1879 the neoes- 2i to itu r m Bary taxation of the people of Canada, baaed upon th» average population between those periods, had the Govern* ment of the day collected the money necessary to pay the expenditure, woald have been, as I have stated before, $4.88 per head of the population. When I state here— and I have the data to prove it — thatfroii> 1879 to 1884 the necessary taxation per head of the population to meet the expenditure, was less than $4.88 per head, by 10 cents per head— when I make that statement, it is, if I can prove it, the answer to the aesortic n I hive just made that this expenditure of $7,600,000 does not p-.d has not led necessarily to the inoreaeed taxation i have made this state- ment before, and I think it is necessary to give the data upon which it is made, because an hon. member of this House has, within the last two or three months, made an alarming state- ment that has gone, not alone through Canada, but the world over, 1 may say, to show that the taxation of the people of Canada is now nearly double that of the United States, and that it is increasing at such a ratio that before long it will be equal to that of the most highly taxed nations of the world. Now, Sir, I think it is necessary, under these circumstances, that we should here, rather than in any other place, give the answer to that statement and relieve the anxieties of the people which must naturally result from such a statement as this;going over the length and breadth of the country. Sir, I am about to establish the statement I made as to the necessary taxation from 1874 to 1879, and the necessary taxation irom 1879 to 1881. The Customs, Excise, and Bt&iny .It. es oUeoted from the Ist July, 1874, to the Ist July, 18?0, ^or, o93,295,770.34. The deficit during that period was $4,818,789, making a taxation necessary, if the revenue had been collected sufficient to pay that ex- penditure of $98,114,559.34, or on an estimated average population during that period of 4,021,000, or $4.83 per head. acd apon tho I the Govern* aeoefwary to have stated . When I iatfroii> 1879 le population per head, by 311 1, it 18, if I VQ Jast made i has not led de this state- be data upon 8 Hoase has, irmingstate- )ut the world ho people of 1 States, and long it will atlons of the ander these ban In any and relieve 7 result from and breadth statement I to 1879, ond be Customs, uly, 1874, to eficit during n necessary, pay that ex- ted average 83 per head. 21 I may ntate that the deficit was caused in this way : The total receipts daring those five years were $114,860,495; the total expenditure during that period was 1119,679,284, which represents the deficit I have named Now, then, we come to the years from 1879 to 1894. Received from Cus- toms, Excise and Stamps, from 1st July, 1879, to Ist July, 1884, $124,723,659.84. The surplus during those five years was $20,4.9,725, made up in this way : Total receipts during the period named, $157,687,879 ; total expenditure during the same period, $137,258,164. If you deduct the $20,000,000 surplus from the receipts, the necessary taxa- tion—the hon. member (Sir Bichard Cartwrlght) laughs, I will give him a statement that will require more than a laugh to answer. The necessary taxation for that period was $104,293,934.84, on an average population of 4,364,800, or $4 78^ per bead, against $4.88 per head. Sir RICHARD CARTWRIGHT. Bear, hear. Sir LEONARD TILLBY. The hon. member laughs. What was done with that $20,000,000 ? Sir RICHARD CA RTWRIGHT. Wasted on the Canadian Pacific Railway. Sir LEONARD TILLEY. No, Mr. Speaker, not wasted on the Canadian Pacific Railway, or on any other railway. I will tell you what effect that surplus of $20,000,000 had. Let us see what the not interest of the Dominion of Canada was in 1&74 when those gentlemen came into power. Tho net interest paid in 1873-74 was $6,113,573.31 , on an estimated population of 3,873,920, or $1.32 per head. The net interest paid in 1878-79 was $6,456,383.51, an increase in the net interest of $1,342,810.20 in five years, or $l.54j per head, or an increase of 22J cents per head in five years, on an estimated population of 4,173,890. Then, as the result of that surplus, as the result of the improved credit of tho country, as the result of the redemption of ll"ii' ! ,.r ill! 22 maturing liabilities bearing 5 and 6 per cent., the net interest paid in 1883-84 was $6,713,482.24 on an estimated popula- tion of 4,600,000, or $1.46 per head, or 8 J cents per head less than was paid in 18Y8-'79. That is ore of the effects of the surplus of $20,000,000, and that, Sir, while they expended $33,000,000 or $34,000,000 during the five years that they were in office, chargeable to capital. These are th^ results 80 far as the taxation per head is concerned, after we have spent in the five years to which I refer $65,000,00a in the construction of the Pacific Railway, in the comple- tion of the Intercolonial Railway, in the deepening and enlarging of our canals. The result is that the interest paid during the last year was 8^ cents per head less than it was when we came into power* in 1878-79, I think I hear the hon. gentleman opposite saying,, as was said by the hon. gentleman who sits on his right : What about the capital account ? You have not taken into account $1,800,000 that is charged to capital for surveys of the lands, which outlay hon. gentlemen opposite charged to capital when they were in office. I think I hear the hon. gentleman say that in answer to my declaration. I admit that I have not in this statement taken that into account, but if that had been taken into the calculation the taxation per head of the population would have been still less than $4.88. L therefore, think that so far as the past five years are concerned, though we expended in 1883-S4 $7,600,000 mere in the development of the country and in the carrying out of great public works than hon. gentlemen opposite did, yet the necessary taxation of the people has been less during those five years than during the time hon. gentlemen opposite were in office. That is a sufficient answer to the country as to the increased taxation and as to thd alledged extravagance of this Government. Mr. MACKENZIE. Hear, hear. r 23 Sir LEONARD TILLBY. That isfeeble, but I am glad to have it from the hon. gentleman. I wish it were stronger for his sake and for mine also. Mr. MILLS. Especially for your sake. Sir LEONARD TILLBY. I must say that I have always found the hon. member (Mr. Mackenzie) an opponent just as difficult to meet as could be found on that side of the House. I appreciate his ability, and I regret that the state of his health is such as prevents the hon. member taking aa active and vigorous a part in the discussions of Parliament as he did formerly. I would now like, as we have had experience of the National Policy developed outside of Parliament and in Parliament by the trade returns, to discuss that question from a five years' standpoint. We have for years taken up the results of the policy, its effect upon trade, the develop- ment of our manufactures, and we have compared the results year by year ; but it will be profitable, I think now, having before us the returns of the five years with respect to its known effects upon trade, and with respect to its general influence on the country, to spend a little time in taking a review of its operations for that period. We know that in 1879 various objections were urged by hon, gentlemen opposite to the resolutions that were submitted to Parlia- ment defining and declaring the policy of the Government on the trade question. One of the objections that was raised —1 think it was put forward by the hon. member who passed a word across the House a few moments ago — was that the imposition of a duty on breadstuffs would interfere materially with the foreign export trade we had enjoyed down to that time. He went into a very elaborate calculation, as to what would be the direct results under the operation of this tariff, consequent upon forcing the trade thi-ough the United States ports instead of bringing it 24 throagh our canals or over our railways, as heretofore, giving employment to the people of Canada. No doubt there were grave doubts at that time as to the effect that would be produced by the imposition of a duty upon foreign breadstuffs, because it would subject exporters to transmit their goods in bond at some little trouble, and perhaps at some expense; audit was contended by hon. gentlemen opposite, that these circumstances would drive the trade into channels other than the St. Lawrence. I have, from year to year, been able to make a statement, showing that the fears expressed by hon. gentlemen at that time were, so far as our experience then went, without founda- tion, and I think the experience of the last five years goes to show that their fears were groundless. For instance, I find as follows : — Value of exports foreiga goods from lit July, 1878, to Ist Julj, 1884 $53,384,465 Value of exports foreiga goods from 1st July, 1874, to 1st July, 1879 41,003,910 Insrease. .$12,330,615 That will be a sufficient answer to hon. gentlemen who entertained fears upon this subject at that time for shipment, instead of sending them by the St. Lawrence and by the winter ports of the Maritime Provinces. Again, it was said when those resolutions were introduced that Ihey were unpatriotic, that their effect would be to diminish trade with the mother country and increase our trade with the United States. That was the statement made by hon. gentlemen opposite, and we were told we were unpatriotic, that we were really assisting our American neighbors rather than the country to which we owe allegiance, and the country to which our sympathiee naturally lean. Here are the facts with respect to that matter : 25 Talne of goodi imported from Great Britaio for fire yeari; from lit Jnlj, 1879, to Ist Jnlj, 1884 ...... M «»....... » 9324,112,853 Walne of goodf imported from Great Britain f.>r fire yean, from 1st July, 1874, to 1st July, 1879 ......^ .— 209,077,876 Increase..^ $ 15,034,977 Talue of goods imported from the United States for fire years, from Ist July, 1879, to 1st July, 1884 ...~ ~... $220,865,271 Value of goods imported from the United States for fire years, from Ist Jaly, 1874, to Iflt July, 1879 240,659,480 Decrease ^^.,$ 19,694,209 i think that may be considered as a sufficient answer to the fears expressed as to the effect of that policy on trade between Canada and Great Britain, and trade between Canada and the United States. Then it was asserted that waiw the policy of 1879 the duties would be increased on British goods to a greater extent than on United States fcodaots. Let us see what Hiq results are for the five years to which I refer, as shown in the Trade and Navigation fietams : Percentage paid on imports from Great Britain from 1874 to 1879 16 percent. Percentage paid on imports from Great Britain from 1879 to July 1st, 1884... 19,^0 " Increase ,».M.. S^^g " Percentage paid on goods imported for consumption from the United States, from 1874 to 1879........ 9^^a " Percentage on goods imported for consump- tion from the United States, from 1879 to 1884 14^ " Increase 5^^ " That is the answer to the fears expressed by the hon. gentle- won opposite, that the tariif then about to go into operation ■%■%. -«,«, .!• •ah 26 would work advorselj to Great Britain and in favor of tha United States. The question of the balance of trade haa . been referred to frequently, and on several occasions by the leader of the Opposition, who has quoted statements made by me, I think in 18t9 or 1880, when the imports and exports had approached an equality, and in one year, I think, the exports were a little in excess. For the subsequent years the imports were in excess, and I expressed at that time my satisfaction that the imports and the exports assimilated more nearly than they had done for many years previous. The leader of the Opposition said that it was my desire that the imports should go on decreasing until we would have a perfect balance of trade, as we had in 18t9.80 or 1880-81. Now what are the facts ? The facts are that during the last two years the importation has been exceptionally largo" First, the imports for the Canadian Pacific Eailway— im- ports of rails, rolling stock, and other articles brought into the country, added to the imports of the last year, and to a considerable extent to those of the previous year. Then the general prosperity led to larger imports and larger con- sumption. But I give the following facts to show that the National Policy has had the practical effect of keeping the difference between imports and exports in a much more favorable condition than it would have been but for the National Policy : The imports from July Ist, 1874, to July Ist, 1879, were ...$490,654,805 Exports for same period 385,543,729 Excess of imports over exports $105,111,076 The imports from July Ist, 1879, to July Ist, 1884, were $669,891,152 Exports for same period „ 477,831,784 Excess of imports over exports $82,059,368 In addition I may state that there was a large increase in 27 tho trade of the Dominion in the last five years. The in- creased production of our manufactures, as shown by the returns submitted to the Government, and laid on the Table of the House— and I am sorry they are not printed, but hon. gentlemen will have ample time to examine them before this discussion closes-must have diminifched tho value of the imports of manufactured goods for the five years to the extent of 8100,000,000. When I say that the increased labor paid during the last year to the men and women employed in tho manufactures of the country was $15,000,000 alone, you may fairly infer that for interest, on the outlay on buildings and the profits to the manufacturers it would reach an average of $20,000,000, or for the five years $100,000,000. The im- ports have been necessarily decreased by the operation of this policy, and the balance of trade would have been that much larger against us had not these factories been built and these ifldustries established in tho country, and the consequer,co8 would have been, I think, unfortunate if such had been the condition of things. So much for the question of the balance of trade. I do not desire to see the consumption of the people diminished ; but what the Government prefer is that while they desire to see the consumption of the people increased, they prefei^ rather to see them consuming articles produced and manufactured in the country, by the labor of the country, than that they should be imported from outside and involve the necessity of sending the money out of the country to pay for them. Now I desire to give some farther evidence with reference to the success of this policy in increasing the industries of this country. There is nothing, perhaps, that can mark more clearly the increase of these industries than the increased de- mand for machinery. It is known perfectly well by every man'who is engaged in the manufacture of machinery, that « it ■i; ii! m\ 28 the orders he has received and execated since IStO have been largely in excess of his orders from 1874 to 1879. Yon will find, perhaps, that leading men who are not members of Parliament, who are advocating this policy, and are the most effective speakers in its favor, are the men who speak of their own indnstry, who go to the country and tell the people what benefits they have received from this policy, in the increased demand for their machinery. I may, perhaps, point to a man whom my hon. predecessor met recently, «nd who, speaking from his own experience, spoke so effectively that he carried the people with him, because he was able to show that the increased demand for his pro- ducts and the increased employment given to mechanics were the result of the National Policy. In addition to the increased demand at home, we find that the machinery imported from 1874 to 1879 was 83,100,018 in value, while the value of that imported from 1879 to 1884 was $8,597,300. I think this is an indication that some new life or vitality was given to industries requiring this increased amount of machinery. Then take the article of raw hides in order to show the development of leather manufacture. We find that the raw hides imported from 1874 to 1&79 were valued at $6,419,294, and from 1879 to 1884, $9,517,t44. This is some evidence of the increased demand for hides for the manufacture of leather, and the manufacture of boots and ehoes and other articles made from leather. We come next to <5oal. The amount of coal entered for consumption from 1874 to 1879 was 4,230,984 tons, and from 1879 to 1884, t,0§5,985 tons. The output of coal in 1878 was 650,000 tons; the output in 1881 - raised by- [ouse to the * discussion, 9 rich aud to : that chese ch they lost y, but from ring the last bear, to my le fact that o cotton and se industries are making itatement is rprisoB that > the profits by a com- e Lad since. (Vith regard e any more tory of the t is to-day; d either. I admit that that is not a sufficient answer to the statement of hon. gentlemen opposite, that the cost was increased to the consumer, because the price of raw sugar haa been lower than it was ; but when we take into account the cost of yellow and refined sugar during the past five years, I be- lieve you will find that the consumer has had his sugar as cheap as he would have had if he had imported it from the United States and England, under the tariff which prevailed m 1877 and 1878. What has our policy done more than that ? In 1878 only 6 per cent, of the sugar consumed in the Dominion of Canada came direct from the country of its production ; last year 89 per cent, came from the country of its production, and only 11 percent, from Great Britain and the United States. That is my answer to the statement of the hon. gentleman who said that the duty on sugar meant a great loss of revenue, and an increased cost to the con- sumer. The revenue received during the last year on account of the increased quantity of raw sugar imported, although the value was low, was greater than the revenue of years previous. All this shows that we have not only obtained the usual revenue from sugar, but that we have given employment to a large number of people. We have restored to Canada an important industry. Our trade with the West Indies has increased by 40 or 50 per cent., and our policy with regard to sugar has been eminently benefi- cial to the whole Dominion of Canada. Well, Sir, the next industry I come to is the cotton industry; We recollect t-he statements made by hon. gentlemen opposite about the cotton lords. The sugar refiners, the cotton lords and the woollen manufacturers were the favorites; and their industries wore the three pet industries of the Gov- ornment. Mr. BLA.KB. Do not leave out the iron. i 89 Sir LKONABD TILLEY, We did not do much for tk* iron induBtry until 1881. Mr. BLAKE. Yon gave it a bounty. Sir LEONARD TILLEY. I am now referring to th* statements made in 1879. I admit that we did do some- thin ' for the iron industry ; and if $1.60 a ton, to be, aft©» a certain period, reduced to $1 a ton, should be iound necessary to more fally develop this industry, I have no doubt that the protection of $1.50 will be ex- tended to it. Coming back to the cotton industry. Hon. gentlemen opposite objected to this policy on thft ground that the men engaged in that industry would make fortunes out of it, while the poor man would be forced to- pay higher pricea. I should not wonder if we were to hear the same hon. gentlemen now say that the poor unfortunate men who invested money in the cotton mills of the country are saflforing badly. Well, I can say, so far as, the consumer is concerned, that he is not suflfering. There was great solicitude felt by hon. gentlemen opposite for the poor man and I remember that that solicitude extended; to the leader of the Opposition. In his speeches here and elsewhere he dwelt upon the great tax the poor maa would be subjected to by requiring seven yards for a certaia garment. Mr. BLAKE. No. Sir LEONARD TILLEY. Well, nine yards, perhaps. Whether it was eeven or nine, I know he was extremely solicitous about the consumer of cotton. I have had placed in my hands the prices current on the Slst ol January, 1885, taken from the iSew York Economist, giving a comparison of the prices of cotton at New York and isu. Canada : . nuch for tk* 88 Amorlcan. Oanadiaa. ^1 \n 6 Ota per yd. 33 In.. H ct«. per yd. WhitemlsriUe 33 in., 6 ote. per y 3^ ,. gj u Pelham - fl „ . ,. 30 " 7* Heron......... ^\ .. «* .. 38 " 7* " DwiRht A.ach'r 38 »J ^^ ^^ .. ^ Langdon, Q. B.. 36 9 If thoBe tigureH aro reliable, and they have been g.ven tome byagentleman upon whose veracity I can roly- ly are copied them from the Economist-i^ey show clearly, m far as the cooBumer is concerned, that he is having his cotton at leBS or about the price at which the consumer in the United States can purchase similar goods. I refer, of course, to the retail purchaser. With Reference to the manufacturers, it will be said that under this policy, capitalists were induced to extend this industry tar beyond what circumstances have shown was justi. fiable; but the difficulty that has arisen is due to a very great extent to the fact that the manufacturers confined themselves, for a year or two, to one or two cashes of goods. The result has been they overstocked the market, and for the last six months or so, they have been quietly discussing what arrangements they can make, by varying the character of their manufactures, which will enable them to obtain a living profit on their investments. I recollect hon. gentlemen opposite rising, three or four years ago. and stating that the dividend declared by one of these companies was something like 40 per cent. If state- ments of that kind were correct, the manufacturers probably invested those large profits and incurred far greater liabilities in extending their operations, with the result that, owing to those operations being exceedingly limited as regards variety in the goods manufactured, they created so sharp a competition among themselves that they are compelled to reduce the prices to the consumer to a figure as low or lower than the prices in the United States. Hon. gentle- 3 84 men opf osito will Bay : " Oh, very soon thoy will remedy that," for they are meeting together and are endea- voring to make such arrangements as will enable them to increase the price and have a living profit. I doubt if there is a single gentleman in the House, at all events a single member who believes in the National Policy, who desires that the men who have invested their capital in that indus- try should not receive a fair return, for the capital they have invested. And this the manufacturers can do bocause the number of spindles in operation in Canada is not equal considering population, to the number in operation in the United States ; and the fair inference is that the moment the Canadian manufacturers have so arranged as to increase the variety of their goods, they will obtain a fair profit on them and the consumers will not have to pay an additional sum for the goods, not as much as they would pay on im- ported goods under the tariflf of 1878. To show what an impetus has been given to this trade since 1879, 1 will quote' from the Trade Eeturns giving, the imports of raw cotton for the five years from 1874 to 1879, and compare them with the imports during the five years from 1879 to 1884. From 1874 to 1879, the imports of raw cotton amounted to 31,847,880 lbs. ; from 1879 to 1884 they amounted to 94,038,219 lbs., and their value increased from $3,568,185 to $10,531,532. This, 1 think, will show that an impetus has been given to this industry, that there has been a large amount of cotton manufactured in the Dominion, that it has been purchased by the Canadian consumer at a very low rate, and that, considering the number of spindles that are now in Canada and the demand that must exist for these goods, the day is not far distant when all these manufactories will be profitably employed. Subsequent to 1879, the Government came down and asked for an increased duty upon agricultural implements, and that was one of the 7 will remedy I are ODclea- ablo them to doubt if there 3Dt8 a Hinglo , who desireu iD that iDdus- ital they have boctiUBo the 1 it) not equal sration in the the moment as to inoreaso fair profit on an additional I pay on im- low what an \ I will quote' f raw cotton ampare them 1879 to 1884. on amounted amounted to •ra $3,568,185 it an impetus has been a e Dominion, consumer at er of spindles at must exist hen all those Subsequent to ' an increased as one of the 35 grievances that has been raagnifio^i. It has been for a year or so presented, especially to the people of Manitoba and the North- West, by our oi^pononts and used by ihem to create a feeling averse to tho National Policy ani the action of the Government in that mutter. I may state now what I stated. When, on behalf of the Government, I asked that the duty should bo increased to 35 per cent., that I had the assurance of the raanufaturcrs of the Dominion that the in- creased duty would not increase the co«t to the consumer. If that assurance hud not been carried out, the Government would have felt themselves perfectly free to say to these raanufacturerH : your assurance has not been carried out, the cost has not been kept where it was, but has been increased to the people of Canada, or to that portion of Canada special- ly affected, and we will repeal that resolution increasing the duty from 25 to 35 per cent. I think that I am in a position to say that the manufacturers of Canada have carried out their engagement, that the various articles of agricultural implements will be sold this year in Manitoba and the North-West as low, many of them, as they can be purchased in Dakota. An hon. MEMBER. Lower. Sir LEONARD TILLEY. All of them as low as, and some lower, than the prices at which they can be bought in Dakota or Minneapolis, including the expenses of carrying them from those places. I have here the comparative prices of agricultural implements at Winnipeg, for several years past: 1881-2 1883 1884 1885 Self-binders «340 $330 $300 to $275 $226 to $340 Mowing machines.... 95 90 85 72 to Seeders 90 85 80 78 Gang ploughs ••• ^^^ ^^"^, -_ Farm waggons 95 86 65 to 76 76 '»««tetoa*«*il'.«i*l, i'" f '%k 4 5S !i:i;l 36 Let us compare these prices with the prices in Da&ota aaci Minnesota : Larimore, Fargo, Tlnneapolis. Columbus. Winnipeg. D.T. D.T. D T. Self-binder, 6 ft cut. f 225to$260 $210 *$210 $250 $225 to $240 Mowing machine 75 to 80 70 75 80 72 to 77 Farm waggon 65 to 75 75 65 to 70 ... 70 to 76 Breaking plough, 12 inches 22 to 2t 26.50 22 24 20 to 21 Sulky plough 65 to 75 65 50 55 63 Gang plough IIO to 120 100 85 95 100 Seeder 65 lo 65 75 55 to 60 66 71 Hay rake 30 to 36 30 35 35 36 • Retail price to consumer in Minneapolis, $260. Now, Sir, as far as the prices of these articles are con cerned, the policy resulted in the reduction to the con- sumer; and I think I may venture to say, with reference to every leading industry in the country, that the pro- ductions, whether of agricultural implements, or sugar, or leather manufactures, or cottons, or woollen goods, or the articles which enter into the consumption of every- day life, and especially among the masses of the people, that it cannot be shown that in any case, except perhaps that of coal, where a duty of 60 cents a ton is imposed, there has been an iocreaseu cost to the consumer ; and in conse- quence of the competition of the manufacturers, which is very sharp at present, the prices have been in favor of the consumer. And, though the manufacturers are at present under very great disadvantages in consequence of the^com- petition from outside, and are compelled to sell with a very small margin of profit, still this policy has given em- ployment to a vast number of people in the country and has been in the public interest. Before I refer further to that, let me call attention to a few other facts. Take, for instance, the value and the products of fish and their exports. I think I hear hon. gentlemen opposite say: What have you done for the fishing interest ? Whether it ■.m ^Jg^L s in Dakota aaci ilumbus. Winnipeg. DT. $260 $225 to $240 80 72 to 77 70 to 76 20 to 21 63 100 71 36 24 56 95 66 35 8, $250. rticles are con ion to the con- , with reference ', that the pro- ents, or sugar, oollen goods, or ptiou of every- 58 of the people, except perhaps 3 imposed, there ; and in conse- sturors, which is I in favor of the '8 are at present noe of the^com sell with a very has given em- the country and :efer further to cts. Take, for fish and their ti opposite say : t? Whether it 37 "(be the €froct of the bounty which has been paid during the last two years or not, we find that there is a considerable increase in the catch of fish, as shown by the following statomont: — Value. 1874 $11,681,886 1875 10,417,886 1876 11,116,999 1877 12,005,934 1878 13,215,678 Value. 1879 $13,529,254 1880 14,499,979 1881 15,817,162 1882 16,824,092 1883 16,958,192 Total $58,468,383 Total $77,628,679 I Then, as far as the exports are concerned, wo find the fol- lowing : — Fish and Products of Fish Exported, Produce of Canada. 1874... $5,292,368 5,380,527 5,500,989 5,874,360 6,853,975 1875... 1876... 1977... 1878... Not Pro- duce of Canada. 11104,359 5,232 232 Fi3h and Products of Fi3h Exported. Produce Not Pro- 75,391 1879... 18^0... 1881... 1882... 1883... of Canada. $6,928,871 6,579,656 6,867,715 7,682,079 8,809,118 duce of Canada. $143,332 73,691 31,169 15,529 47,808 Total. $28,902,219 $185,214 Total...$36,867,439 $311,5^9 With reference to our cattle exports, which, thanks to the great tact and energy of otr High Commissioner in England and the policy pursued by the Government, have been secured from the great loss to which the nhippers of cattle in the United States have been t^ubjocted, we find that the products of that industry sent out of the country from 1874 to 1879 amounted to $11,417,642, and from 1879 to 1884 to $41,062,474. Then there is the question of the effect of the general policy upon the development of the industries of the country. I have given some evidence, 1 think, of the progress of these industries, by the increased demand for machinery in the country, by the greatly increased import of cotton, by the import of hides, by the Sb consumption of coal to drive the machinery oi the country, and by various other facts which have been presented here ; but tnere has been laid on the Table of the House, and will be placed in the hands of every member shortly, the result of the enquiries of two gentlemen, who were appointed by the Government, to examine the leading factories of the Dominion of Canada, in order to show their development since 1878. As these papers are not yet in the hands of members, I shall only, at present, just quote generally the results, because, when the discussion goes on further and hon. members have those papers to reter to, it may be interesting and valuable to go more into detail. 1 will simply give the results of their enquiries for six months in the prominent towns and cities of the Dominion. It is estimated by them that they have visited factories employ- ing about two-thirds of the people who are engaged in the various manufacturing industries, and these are the results : No. of No. hand8 Yearly wages Products. Capital paid. invested, f 24,396, 165 $102,870,166 $67,293,373 13,833,733 49,933,282 37,819,931 Factories, employed 1884 2.096 77,346 1878 1,501 42,794 Increase in five years.... 595 34,552 $10,562,432 $52,906,884 $29,473,442 If we add 50 per cent, to that, supposing their calculation 18 correct and the results should be found to be the same, it will appear that the adoption of this policy in 1879 has increased the number of factories in Canada by 893, the number hands by 51,828, the yearly wages paid to the people employed by $15,843,648, the products by 879,360,- 126, and the capital invested by $44,210,16.3. It does appear to me that, under these circumstances, we have reason to be satisfied with the results of this policy during the first five years of its exist- ence. I have not said anything up to the present moment as to the eff3ct this policy has had upon the credit A^ia? t the country, 38onted here; luse, and will y, the result appointed by Btories of the development the hands of generally the 1 further and 3, it may be letail. I will ix months in ninion. It m iries employ- igaged in the e the results : ts. Capital invested. 166 $67,293,373 282 37,819,931 884 129,473,442 ir calculation a the same, it in 1879 has L by 892, the paid to the by 879,360,. 163. It does tistances, we » results of >f its exist- the present on the credit 39 of the country. I have been in the habit of roterring to that in the past, and I desire here, though 1 shall touch upon that further on, to fay that the credit of the country stands better today ^t home and abroad, than it ever did be- fore ; and money can bo obtained on more favorable terms than ever before. Before I refer to the last loan which was made, and to which the late Finance Minister will probably refer, lot me say that I have had a table prepared of the price of 4 per cent, securities for various countries in order to compare them with the rates obtainable for Canadian 4 per cents. It is as follows :— 5 per cent. 4 per cent. When Due. Rate. When Due. Rate. 1904-1908 ./.'..'.'.'." 1900 104-106 1922 Canada Cape Jamaica Mauritius Natal New South Wales New Zealand South Australia Queensland - Tasmania Victoria Western Australia Austrian Belgian Danish Dutch French Treasury Bonds- Indian Italian Sardinian Norwegian Prussian Russian 1927 1922 1926 1903-1910 1929 1929 1916-1924 1908 1907 1927 961-965 98-100 105-107 89J 99-100 100 87-88 104J-105J 98-100 102-102i 100-102i 99J-101i iosi 99-101 86-87 104 100 100-102 101 lOlH^H 1934 .After 1885 1962 101-102 101^-102* 78 Thus it appears that Canadian 4 per cents stand higher to- day than any of the countries that I have named. With reference to the last loan placed upon the English market, at 3i per cent, interest, the House will remember authority wasVvon to the Government to loan to the Canadian Pacific ihfMi».-'»mimmi^ 40 [4*. 'i 'i -.%l Eailwuy Company $22,500,000 towards the construction of that railway, and it became Eeceseary that we ehould obtain on the best terms possible, money to meet our engagements in that direction. A £5,000,000 sterling loan was offered at 3| per cent., and the minimum named was 91. That loan produced £91 Is. 8d. It was a 50 years loan, and the sum realised is equal to 2 per cent, premium on a 50 years' loan at 4 per cent., as will be shown by a book I have in my hand, and which any hon. member can see, there he will ascertain the value of securities at various rates, with the number of years to run. Perhaps the late Minister of Finance has seen it. Sir EICHAED CART VV RIGHT. 1 have the book. Sir LEONAED TILLEY. When that loan was placed upon the market it brought equal to 2 per cent, premium on 4 per cent, loan for fifty years. That, Sir, was the highest rate ever obtained for any Canadian loan that had been placed on that market. The loans placed by my hon. predecessor from 1874 to 1876, and the loan placed upon the English m rkot by myself, in 1878, realised about the same sum at 4 per cent. The fact is, Sir, we did not realise as good a rate even at 4 per cent, as the 3^ per ceat. loan of 1884. The 4 per cent, debentures placed at 30 as appears by this table. The loan effected by my pre- decessor in 1874, at the price it realised, yielded to the purchaser £4 128. 6d. for every £100 bought. The 30 year 4 per cent, debentures placed in 1875, cost Canada, in inter- est, £4 lie. 2d. per annum on every £100 that was realised. The 50 years 3^ per cent, debenture at 91— which was the minimum placed, though it brought a little more, gave a rate of interest of £3 ISs. 3d. That is what we are paying on that loan. A 50 year 4 per cent, debenture, selling at 102, would yield an interest to the holder of £3 18?. 2d., so that I may fairly say we realised what was equal to 102 per 41 I construction of TO should obtain ar engagements ,n was offered at I 91. That loan m, and the sum a 50 years' loan : I have in my e, there he will rates, with the ate Minister of the book. )an was placed nt. piemium on was the highest that had been )d by my hon. 3an placed upon alised about the Sir, we did not the 3^ per ceat. as placed at 30 ed by my pre- , yielded to the it. The 30 year Canada, in inter- hat was realised, —which was the le more, gave a it we are paying enture, selling at of £3 183. 2d., so I equal to 102 per cent, on a 50 year 4 per cent. loan. Now, Sir, the diflference between the rates at which the hon. gentleman opposite, and I myself in 1878, obtained for the 4 per cent, at that ti'ne, is about f per cent, and that ^ per cent., were it used as a sinking fund, would pay ofif the principal in between 40 and 50 years, and that shows the nature and extent of the value to Canada of the different loans that were floated. My hoD. predecessor asked for the names of the persons who tendered, and what they tendered for. We had not the names in our possession to give him, but I may say that when 1 placed the minimum at 91, almost everybody who was in the habit of dealing in securities of this kind thought the minimum high, and I had a conversation with the manager of the Bank of Montreal on this subject, and he declined to tender, as many others also did, because the minimum rate was considered too high Now, Sir, there has been a good deal said with reference to ample notice not having been given of this loan, that the number of papers it was advertised in was too limited in circulation, and therefore the interests of the country were sacrificed. The hon. gentleman moved, if you will recollect, for the names of the papers in which that loan was advertised, and you will also remember that I asked him to amend that request and go back to 18*74. I had a reason for doing so, because I was satisfied there was no difference in the papers that were used as the advertising medium of his loan and those used for the loan of 1884. The resul showed that, with the exception of 1876, when he floated his loan and the loan I floated in 1878, the papers were the same, that there was but one paper which he used in 1876 that I did not use in 1884, and I imagine from the name of that paper that it has gone out of existence. There is nothing to be gained by the Opposition by an investigation into the number of papers in which tenders 42 were asked, for the loan of 188-1, as compared with the papers in which tenders weie asked for the previous loana. Now, with reference to the time that was given for the parties to tender. If you will compare the pros- pectuses that were issued by the hon. gentleman opposite, and by myself, it will be found there is very little difference. But I will tell youivhat the Finance Minister of Canada has to encounter. There is in London an organisation of men who are opp> :• - 'he Pacihc Railway, and who are opposed to the GorerL' . . of Canada, because they have given faci- lities to the Canadian Pacific Eailway Company for the con- struction of that great work. There are men connected with the Northern Pacific Eailway whose interests lead them to oppose that road and to destroy the company if possible, and you will find that, whenever an opportunity arises, the Northern Pacific Eailway Company very naturally seeks to defeat the completion of the Canadian Pacific Eailway, because when completed it will be one of its great compe' titors. Then, I think I may fairly say that the stock- holders of tho Grand Trunk Eailway are not peculiarly demonstrative in their regard for the Canadian Pacific Eailway. And what do we find when we go into that market to float a loan? Just what I found last summer, and that was a most determined hostility to the successful pl.-ing of that loan. The morning that ten- ders were asked lor to be deposited at. Messrs. Baring Bros., the parties opposed to the Canadian Pacific Eailway had a most violent article in one of their papers against the Government of Canada and the Canadian Pacific Eail- way, and from 10 o'clock in the morning until 3 o'clock in the afternoon, while the tenders were being deposited at Messrs. Baring for this loan, a man stood there with a placard advertising this paper, and calling the at- tention of everybody who came along to the article in 48 the paper. But, notwithstanding that fact, when the ten- ders were opened, I do not hesitate to nay that on no occasion have we had so many offers of sums varying from £100 sterling to £10,000. Had the matter rested there, we could have made out a case to which there could have been no reply from hon. gentlemen opposite. But I think I hear the late Finance Minister saying : Oh, but New South Wales has floated a 3J per cent, loan since then, and that loan brought a higher price than you received for oar 3| per cent. loan. There are reasons why the New South Wales 3^ per cents should have sold for a higher price than our securities. Ours were for 50 years, theirs for 40 years. Sir RICHARD CART WRIGHT. Ours are for 50 years. Sir LEONARD TILL BY. Yes, ours are for 50 years, and theirs are for 40 years ; and therefore if the purchaser of a £li)0 bond pays £92 for it, he gets buck into his cof- fers £8 in 40 years ; while the purchaser of one of our bonds does not get it back for 50 years. So the pur- chaser of the former has the use of his money for 10 years longer than the purchaser of the latter. Accord- ing to the table in my hands, it makes a difference of nearly 1 per cent, to the purchaser. The purchaser can give 1 per cent, more for a 40 years bond than for a 50 years bond when it is sold for 8 per cent, discount. It is just the opposite when you buy at a premium. In addition to that, the payments which were to be made on the New S)uth Wales bonds were distributed over a longer period than the payments on the Canadian bonds. The buyer had, therefore, the use of the money for a longer time, and the difference between the payments on the Canadian and the New South Wales bonds was about one-half per cent., which gave 1^ per cent, advantage to the pui chaser of the New South Wales loan. It is true that 1^ 44 shortly afterwards, owing to circumHtances of an exceptional character, both our bonds advanced. The Chancellor of the Exchequer of England was about converting 3 per cents into 2\ per conts, and the rate was favorable to our colonial securities, and ours advanced rapidly for a month or ho, and the New South Wales bonds also advanced in about the same ratio. That led to comments in the Opposition press attempting to show that I had sacrificed the interests of Canada in placing the loan at 91 when the securities sub- sequontly advanced to a higher rate. What I cannot under- stand is why our 3^ per cents are selling comparatively lower than New South Wales' 3^ per cents, and our 4 per cents having the same period as theirs to run are higher than theirs. What is our position? While Canada has comparatively few friends in the money market of London, and many opponents when we are placing our loans on the market, whenever an Australian colony places a loan the twelve Australian banks take hold of it, and there is a different feeling manifested as compared with that displayed towards a Canadian loan, and a deep interest is felt on the part of the Australian bankers for the success of an Austra- lian loan. Mr. MITCHELL, them. Sir LEONARD TILLEY. There is a heartv and com- mendable desire manifested by Australian capitalists to keep the credit of the Australian colonies at the highest possible point; and although we cannot get at the facts. I believe there must have boen .ome arrangement made between the NewSouthWalesGovernnientundthesyndicateofAustralian banks as purchasers of the loan, that as the proceeds are not required ior a long time a moderate rate of interest should be paid until called for. That loan should have brought n per cent, more than ours ; it brought over £93 There is no Grand Trunk against 45 or practically £ I more than our loan brought. I do not hesitate to Bay that the rales at which our 4'h are quoted, and they form the larger part of our ir debtedrcss as com'- pared with the aj's, show that the price of the latter may be influenced at present by the fact thut we have five million pounds maturing in June next. To-s dufes ,19 500,000 or only half a million dollars less than the es U- Lte of last year. The next item is that of Excise. Itisest,- rl the revenue from Excise will be .5,400,000. There has been some falling off in that direction which may hi libuted in part to the action of a good many of the constituencies In Ontario of late, by which the amount of duly collect«l on spirits and malt liquors wiU be reduced ; but it will be found before the Session closes, that the Govlrnment propose to make up to some extent in another way, in Excise duties, a port.on at least, of the iCweL likely to lose this year and likely to lo»e to a greater extent next year on malt and spirits. I. is estimated that this year, the revenue from Excise w. amount to $5,400,000. The postal service we expect to yield »1.900,000, railway, and canals ii.m.m The interest which last year was put down at $750,000, will amount to $1,900,000, with however more than an eouivalent increase on the other side, because, under the authority of this Uouse. the Government floated a loan by which money was raised to be advanced to the Canadian Pacific Railway Company. This increased, of course, the amount of interest payable by us, to a very considerable extent, but it increased on the credit side, the 53 receipts from the estimate of $750,000 to $1,900,000. From the miscellaneous items we expect to obtain $800,000, as esti- mated last Session ; and the lands in the North- West, from which I estimate we would obtain nearly a million dollars, I now have to estimate at $500,000, making altogether $33,000,000 revenue, with an estimated expenditure of $32,850,000. The receipts from interest for the present year will be less than the charge for interest, because there will be, between March and the first of July, a portion of the debt of the Canadian Pacific Eailway bearing interest, but the interest, however, is not payable until September. Conse- quently the surplus is reduced to the extent of $300,000 from that fact. The estimated expenditure is $32,850,000, leaving 8160,000 surplus for the present year. Sir RICHAKD CARTWKIGHT. Including Dominion lands. Sir LEONARD TILLEY. Yes ; including receipts from Dominion lands. I trust that hon. gentlemen who com- plained that we were unnecessarily collecting taxes from the people, two or three years ago, will be satisfied now, as the receipts and expenditure are very close for the current year. The increases in our expenditure are the fol- lowing : The interest will be incveased about $550,000, but praotically about $250,000 ; the expenses on account of Indi- ans $250,000 ; subsidies to Pi'ovinees in excess of what was paid last year and under the Act of last Session, $425,000. Then there will probably be a decrease in the immigration expenses of this year of $100,000, but at all events the estimate now is that the revenue will be $33,000,000 and the expenditure $32,850,000. Before I pass to tho next year I think it but right that I should state to the House something with reference to the loan issued last summer and the temporary loans made since then. The loan made last summer netted to the Government $22,500,000 or tliere- :ilW#WMHit%^M>W(WWH8^|WiM-v< *r 64 abouts. The temporary Ic ans made since that time amount to $12*500,000, making altogether $35,000,000. I think it right to state to the House how this money has been used and for what purposes it has been expended. Since the 1st of March last we have paid to the Canadian Pacifi« Eailway, under contracts of Mr. Onderdonk, 33,370,873, on account of the Canadian Pacific Eailway subsidy, $8,386,418 ; to the the Canadian Pacific Eailway Company, on loan account, «19,459,000;redemptionofdebte3,991,056; total $35,216,347. The members of the House may wish to know the course the Government are likely to pursue with reference to the maturing liabilities bearing 5 per cent, interest, as well as with reference to the floating debt. There are $25,000,000 of the present 5 per cent, loan in the hands of the pub- lic. The balance of about $7,000,000 is held by the Government in the sinking fund, and therefore, of the loan which matures in June next, $25,000,000 must bo provided for either by the payment to the holders direct or by some other arrangement by which other bonds will be exchanged. I am not in a position to state definitely which course the Government will take, but it has been suggested that the Government should offer to the holders of 5 per cent, bonds, debentures payable in 7 or 10 years, in exchange for the 6 per cent, debentui es that they hold. The Government look upon this proposition somewhat favorably because, in 1891, the loan to the Canadian Pacific Railway will be payable. When the Canadian Pacific Eailway has been completed and its value fully establi8hed,!arrangement8 will, no doubt, be made by which the^mortgage which we hold upon it will be paid. If we issue debentures payable in 30 or 50 years* the Government would have to go into the market and buy back debentures at an advanced rale. At any rate, it would put the Government in a position, with a very short time intervening, to make arrangements for these $25,000,000 j 55 and then it is suggested that by the issue of Treasury bills we could provide ior the temporary loans made in Canada and in England, so that in fact the Government may not be required to place on the London market any debentures during the present calendar year, except for the redemption of the $25,000,000, due on the 1st July next. At all events we will be in a position to provide for our maturing lia- bilities without materially depressing the value and character of our securities. Now, I will pass from the amended estimate for the current year to the estimate of income and expenditure for the next year. The Gov- ernment estimate that the receipts from Customs will be what we have estimated for the present year, 8 19,500,000. We expect that Excise will not yield quite as much as in the present year from the fact that, on the Ist May next, several districts will come under the operation of the Scott Act, and it is natural to expect that the consumption of spirits and malt liquors will diminish and that there will be a decrease of revenue on that account. The receipts from Post Office we estimate at $1,950,000 ; from Railways and Canals, $3,000,000. It is true that we are running seventy or eighty miles more of railway than we were last year, that is, the road which was purchased from the Government of Nova Scotia ; bnt we have not estimated any increase of revenue, because the Minister of Eailways puts down the receipts for the Intercolonial Railway at $100,000 lees than for the current year. For interest, we esti- mate $1,950,000. I may say here that the interest will not be as large relatively as in the present year, because we are receiving interest this year on $7,000,000 of sinking fund debentures, which will be cancelled on the Ist July next, and therefore, while we shall receive the whole of the interest from the Canadian Pacific Railway next year, it will only ii crease the receipts $50,000, but the payments on the other •*«'**a^;.Mi«W«»'iSI*s which now beset them in that n v ^^ c«. Asbestos in any form other than crude, and all manufb.tures thereof, 25 per cent. This article is now manufactured in Canada ; the duty in the United States is 25 per cent., and as we have plenty of the raw material it has been considered advisable to increase the duty. Axle grease, and similar combinations, a specific d uty of 1 cent per pound; cotton bed quilta, exclusive of counterpanes and woven quilts, 27J per cent., ad valorem; print cottons now pay 27^ per cent., and if these articles were made in the country the manufacturers would have to I*--- III ' '1' r f..! f 64 buy the material here, or import it at 27i per cent, duty and the duty collected on counterpanes would only' be 2p per cent., 80 that this change will place them in the same position as the manufacturers of print cotton. Extract of fluid beef, not medicated, 25 per cent, ad valorem. This article is being made in Canada successfully, and it is considered fair to give them the benefit of the additional 6 per cent. It is quite clear from the returns received down to the present time and from the adoption of the Scott Act by so many districts that we will lose a considerable Excise revenue next year ; and as cigars manufactured in the Dominion of Canada to-day pay into the Treasury but 10 per cent, of their value of Excise duty, it was thought, as the general revenue tariff is 20 per cent., that the Government might fairiy collect from cigars a portion of the revenue they will lose on spirits and malt. It is proposed that on cigars of all descrip. tions made in whole or in part from foreign or im- ported leaf tobacco, or any substitute therefor, an excise duty of $6 per thousand-wLich is double the duty at present paid, making it about 20 per cent that the consumer will have to pay instead of 10. On cigars of all descriptions made solely from tobacco grown in Canada, and in manufactories where no foreign leaf is used or kept, the duty shall be $3 per thousand instead of $1.50. Od wet snuff a specific duty of 12 cents, when put up in packages of less than five pounds. The present duty is 8 cents. The trade are anxious to put up snuff in small packages, and willing to pay the additional duty, and we are willing to take the money a. -1 let them have the advantage. On cigars and cigarette., the Customs duty, specific, to be just double what it is now. It is now HO cents per pound, and the new duty will be «1.20 specific and 20 per cent, ad valorem. There are the propositions by which we expect to get back 66 ft considerable portion of the money we are liable to lose on spirits and malt liquors daring next year. Then we propose the following resolution : — Resolved, that it ib expedient to repeal ao much of Schedule' A of ehapter 15, 42 Victoria, as imposes a duty of 10 per cent, ad valorem oa '* endless felt for paper makers." This article is now made in Canada, and it is proposed to strike out that exception, and ag the manufacturers are prepared to furnish it at a reasonable price, there is no reason why they should not be permitted to do so. Further : And the following parts of chapter 13, 46 Victoria, intituled, "An Act further to amend the tariff of duties of Customs," viz ; — Item num- ber 7, of section 2, and all of section 5, of the said Act ; also to repeal section 9, chapter 15, 42 Victoria, intituled, "An Act to alter the duties of Customs and Excise," and to enact as follows :^-In determining the dutiable value of goods, there sha] )e added to che actual wholesale price, or fair market value thereof— at the time of exportation— in the principal markets ot the country from whence the same has bfen im- ported into Oanaia, all costs of inland transporta'ion, shipment and trans-shipment, whether by land or by water, with all expenses included from the places of growth, production or maoufacture, to the vessel in which shipment is made, and to and at the port from which such vessel finally clears for her outward voyage direct to Canada. It will be remembered that from the application of this principle Great Britain was exempted, and when in England, last year, a deputation waited on mo at Liverpool, pointing out the disadvantage under which they were plaeod by this provision which was intended for their benefit. Great difficulties have resulted from the importation of iron and the charges on it, and the merchants of Liverpool begged that we should either place a specific duty on iron or make the duty payable on the cost on board ship, and thereby obviate the difficulty which existed in Great Britain on this subject. It is proposed to make this change : When any manufactured article is imported into Canada in separate partg, each such part ehall be charged with the same rate of duty as the finished article, on a proportionate vdluation, and when the duty charge- able thereon is specific oc specific and ad valorem, an average rate of ad I I 66 '■1 ■ 1 \ in 4 I J \ valorem duty equal to the specific or Bpecific and ad valorem duty lo chargeable shall be ascertained and charged upon such parte of manu- faetures. There has been an attempt to bring in certain articles of manufacture and to evade the payment of the duties which Parliament intended to impose. It is proposed that we also add partridges, prairie fowl and woodcock to the articles the exportation of which is now prohibited. It is found that the shooting of these birds has been prohibited for a time in most of the States of the Union, and the result is that we have been overrun by people during the last year, who buy the birds and encourage their destruction. Before the adoption of the system of freezing the birds there was only a limited period after the frost set in during which they could export them ; but they have established places at which they have freezing houses, and they have taken them in by thousands and sent them out of the country in that frozen condition. It is therefore thought necessary to take this step, in order to prevent the utter extermination of these birds. Mr. MITCHELL. Have you nothing about cornmeal and flour ? Sir LEONARD TILLE Y. The next change is as follows : Resolved, that it is expedient to prohibit the importation into Canada of all goods manufactured or produced by prison labor, or which have been made within or in connection with any prison, gaol or penitentiary, and to attach a penalty to any such importation. The Government have thought it advisable to ask Par- liament to consider this question, because there are three large prisons in the United States in which labor is employed in manufacturing articles which are largely sent into Canada. They will not interfere with their own manufactures at home, and were we to double the duty they would, perhaps, still continue to send in the goods, to the destruction of the industries of the 67 country; for while the honest lahor of the country should receive, and has been receiving, $2 per day, those who hire prison labour pay only 35 cents per day. It has been considered advisable, in justice to the honest and industrious artisan of Canada, that he should be protected from that kind of labor. Resolved, hat it is expedient to provide that on and '♦^r the Ist day of July !xt (1885) all fidh imported shall be chargeab. with, and there shall 1: ollected thereon, the following rates of duty, viz.:— Mackerel. it per pound. Herring, ' or salted, 1} cents per pound. Salmon, , 1 cent per pound. All other ickled, ia barrels, 1 cent per pound. Foreign fish, imported otherwise than io barrels or half barrels, whether fr smoked, dried salted or pi .'kled. not especially enumerated or provide jr by this Act, 50 cents per 100 poundi. We have adopted the e.xact words of the American Tariff and the rale at present imposed in the United States, and unless some arrangements are made in the meantime, it is intended, on the 1st of July next, to collect on the fish named when imported from our American neighbors the same duty that they will collect from us after that date. Anchovies and sardines, packed in oil or otherwise, in tin boxes measuring not more than 6 inches long, 4 inches wide and 3^ inches deep, 5 cents per wholo box. Their duty is 10 cents ; but it was thought that rate would be a practical prohibition, and therefore we placed on the different sized boxes of sardines and anchovies only half the duty they collect. In half boxes measuring not more than five inches long, four inches \vide and one and five-eighths deep, 2^ cents each ; and in quarter boxes measuring not more than four inches and three-quarters long, three and one-half inches wide and one and a-quarter deep, 2 cents each ; when im- ported in any other form, 30 per cent, ad valorem. Fish preserved in oil, except anchovies and sardines, 30 per cent, ad valorem, Salmon and all other fish prepared or preserved, not specially « numerated or provided for in ibia Act, 26 per cent, ad valorem. ■A > I 68 Oil, apermacetti, whale and other fish oils, and all other articles th* produce of the fijherleB, not specially prorided for, 20 per cent, acf valorem. These are the terms exactly of their Act, but we add this provision : Provided that the whole or part of the said duties hereby imposf d may be remitted upon proclamation of the Governor in Council, which may be issued whenever it appears to his satisfaction that the Gov- ernments of the United States and the island of Newfoundland, or either of them, have made changes in th-jir tariflfs of duties imposed upon articles imported from Canada, in reduction or repeal of the duties in force in said countries. In the case of Newfoundland, for instance, there maybe no great object in their imposing duties on Canadian fish ; but it may be in the interest of Canada to make arrangements with the Government of that colony that in return for a reduction of duties on flour or other products of Canada, we will reduce or remove the duty on fish imported from Newfoundland. We are naturally anxious to have all th& trade possible with Newfoundland, and also with the United States, but on equitable terms. Mr. CHARLTON. If the Finance Minister will allow me, I will call his attention to a precedent with regard to thepe tariff resolutions, which, 1 believe, he would have been wise to follow. I find in the Budget Speech of my hon. friend at my right (Sir Eiohard Cartwright) made in 18*74 Some hon. MEMBERS. Order, order. Sir LEONARD TILLEY. Now, Mr. Speaker, I desire to consider for a few moments evidence to show tiiat the Dominion of Canada during the last five years, and even during the last jear, has been in a much more hopeful con- dition than hon. gentlemen opposite would have us believe. I take, for instance, the deposits in the chartered banks of Canada. 69 Mr. MITCHELL. Would the hon. Minister, before he proceeds to that branch of the subject, inform us whether he proposes to take the duty off cornmeal, or to increase the duty on flour. Sir LEONARD TILLEY. Ido not propose to deal with that question to-night CaABTBMD BASKS. Increase in peoples' deposit in chartered banks from Ist Jan., 1874, to Ist Jan , J ^®^® ••;•" :••": - 18,499,942 49 Increase of deposits in same banks from Ist Jan., 1819, to 1st Jan., 1884 25,903,564 75 SAVINGS B4NK DEPOSITS. Increase in savings bank deposits over withdrawals from Ist July, 1874, to nt July, 1879 $1,997,412 37 Increase in same from 1st July, 1879, to l3t July, 1884 20,009,853 84 BUILDING AND LOAN COMPANIKS. Increase in deposits and purchase of de- bentures in Canada between 1st Jan., 1884, and lat Jan., 1879 $5,787,516 76 Increase of same from Ist Jan., 1879, to ist Jan., 1834 9,512,734 93 RBCAPITDLATION. Prom 1874 to 1879. Prom 1879 to 1884. Deposits in Deposits in chartered chartered banks.... $8,499,942 banks.... $26,903,354 Deposits in Deposits in savings savings banks 1,997,422 banks 20,009,658 Railway and Railway and loan com- loan com- panies 5,787,616 panies 9,512,781 $16,284,940 $56,425,f36 It may be said by my predecessor that the increased amount •of deposits in saving banks is no evidence of the prosperity of the country. But I would call the hon. member's atten- tion to a letter he addressed to intending investors in I 70 Canadian securities in 187B, in which he pointed out to capi- talists that there had been a very great increase in the deposits in the banks and saving "banks of the country. Therefore, I hope the hon. gentleman will consider it some evidence of the prosperity of the country and the financial condition of the people that they have increased their deposits in the banks from $16,000,000 to $55,000,000. The capital expended on factories since 1873-79, as shown by the^ return presented, is something like $41,000,000. So that, from 1879 down to the end of June last, by the deposits in chartered banks, in saving banks and loan companies, by the purchase of loan companies' debentures, and by expenditure in factories, the people of this country have invested about $100,000,000 in the manner stated. I might go further and point to the additional mileage of railways which has been built and which has involved the expenditure of a large sum of money. I might point to the different, cities in Canada, where millions have been expended in the constmction of houses that have found tenants since 1879, when those alongside of the recent erections were previously to let but now occupied. We might go further and speak of the other investments since 1879 to show that the* people of Canada, and especially the masses of the people, must have had a very handsome surplus during those periods from their earnings which they have thus laid by for a wet day. An hon. gentleman opposite referred to what he termed the exorbitant rate of interest that is paid to depositors in the savings banks as one of the reasons for increased deposits. When I called his attention to the fact that we offered less inducements since 1830 to depositors than our predeces- sors had, the hon. gentleman (Sir Eichard Cartwright) rose and with some degree of triumph expressed in his face said : Well, we simply continued the policy pursued l^y our predecessors. We, on this side, considered it a com- 71 pliment that they should have found it desirable in the interests of the country to follow our precedent, but I do not know that it was a justification for their course, r n- sidering the line they have taken in complaining of the lower rate now paid. It has been said that a great injus- tice has been done to the people of the country, especially to the banks of the country, and to the men who obtain discounts, because the Government now give 4 per cent. formerly, in many cases they gave 6, but to-day, we only pay interest beginning the month after the deposit is made- No interest is paid on any deposit during the month in which it is deposited. It is said this is an exorbitant rate, that we should not pay more than 3 per cent., and that then the banks would have more money to loan to their customers. If we will look at the returns of the banks, we will find that the most of them have as much money to loan as they can find good customers for. The Government are prepared to take this stand, that while it is of the utmost importance to obtain for Canada money on the lowest terms possible, the depositors of small sums, the hard working people of the country, the men and women who want a safe place to deposit their money > should have the fullest amount of interest this country is warranted in giving. An hon. gentleman said the rate of interest has been reduced from 30 to 40 per cent, since 1878. I examined the rate of interest charged by the banks in 1878, and I find that it is just the same as it is to-day. There is, therefore, no reason why we should say to the 100,000 depositors you must take less than 4 per cent., in order that the banks may make more money out of their deposits. No, Sir, the policy of this Government is to grant the greatest benefit possible to the largest number of persons, and we feel that in paying 4 per cent, interest to the depositors we are paying them a fair rate of interest, r % I 73 taking all things into consideration. In 1879 what was tha value of bank stocks compared with their values to-day ? This paper has been handed to me by a gentleman who I asked to look into this question : PRICES OP BANK STOCKS IN MONTREAL. Jan. iBt, Jan. 1st, 1879. 1885. Bank of Montreal "- — •• ^^^ ^" MolBonsBaak ^^ 109 Merchants Bank '^ ^^ Eastern Townships 82j 107J Commerce ^^^ ^^' Toronto Bank 1^8 ""* Telegraph Company l^^i 113 This gives some evidence oC the prosperity of those institu- tions during the last few year?. Mr. MACKENZIE. Take 1878. Sir LEONARD TILLEY. In 1878 the weeding out of the bad debts made during the previous years led, of course, to a reduction in the value of stocks, but when these bad debts were ascertained, they started in 1879 knowing exactly the basis upon which they stood. It would appear that the business operations of the Dominion had not been disastrous during the last five years, judging by the state" ment I have just given. I stated something about the rate of interest charged by the banks in 1884. The following statement shows it : — 1884— Rates of discount at Montreal, 7 to 8 per cent. throughout the year'. Loans on stock collateral varied from 5 to 6 per cent. 1879— Commercial discount easy at 7 to 8 per cent, for the first 7 months of the year ; firm at same rates during the fall and easy again after harvest. Stock loans range from 4 to 6 per cent., until December, when they advanced to 6 and 7 per cent. 73 We now come to the mileage of railways, to show what has been done during the last ten years. The following statement shows the railway mileage from 1875 to 1884, oonstrocted and open. Statement of railway mileage, 1875 to 1884 : Constrncted. Uiles. 1875 1876 1877 1878..^ 6,8f5 1879 ^ 7,077 1880 „ » 7,229 i-OC'l ••••■• •••«••••# ••••••••• ••■••••*« ••••••••« ■••••• f I OtlO 18^2 8,069 1883^ 9,066 1881 9,949 Opened. Milea. 4,800 6,167 6,674 6,143 6,484 6,891 7,260 7,530 8,805 9,575 This gives some evidence, I think, of the developement of the country. Then with reference to the number of failures in Canada of which we have heard so much lately, there has been a very considerable increase ; but if we take the five years from 1875 to 1879 inclusive, we find that the number of failures was 9,185, with liabilities amounting to $133,128,724. From 1879 to 1885 there were 5,010 failures, with liabilities of $57,467,724. The number of people engaged in business in 1884 in Canada was 69,924, so that the number of failures for that year would be equal to one failure for every 53 traders. Taking 66,000 traders, the number engaged in business during the five years ending 31st December, 1879, the average would be equal to one failure to 30^ traders ; and taking 69,994 traders as the basis of the five years ending 31st Decembar, 1885, the average would be equal to one failure to 76f traders. Now a word or two as to the general condition of the country, and of the laborers of the country. I have before me an extract from a speech made recently by the leader of the Opposition, and I have a statement in tabulated form of the value of the different u clasees of labor in Canada, taken from the Bureau of Statiatioa of Ontario. There may bo a question raised by the Opposition M to the statement made by the commissioners, that they were prepared by the employes of the Dominion Govern^ ment, but m ro-^urds the statement made up in the Bureau of Statitiiioft of Outiu-io, I am quite sure hon. gentlemen opposite ^111 accept it as quite correct. Mr. Blake, speak- ing at Toronto, attributed the prosperity of that city in part to the absence of highly protected manufactures, and as a consequence labo- '■ letter paid there ban in other cities. Mr. BLAKB. 1 did not say that ; that is not my speech. Sir LEONARD TILLEY. Ob, it has been given to mo as taken from the Qlobe. Mr. MITCHELL. That is a bad source to get it from. Sir LEONARD TILLEY. I think it is just what the hon. gentleman might say. But this is noticeable ; One gentleman who has a seat on the other side of the House visits Montreal, and makes a speech to tho Montreal people, pointing out the terribly distressed condition of Canada and its people, that the emigration from it Ib mar- vellous, that the taxation is something unprecedented, and in making his statement he finds it necessary, if correctly reported, to refer to the fact that in Montreal perhaps they had not experienced as much of this depression as th ey had elsewhere. 1 can imagine that, comparing the condition of Montreal to-day with what it was in 1878, a great many of that audience, if they were told they were in a worse condition than they were in 1878, would question the statement somewhat. It vas found necessary for the hon. gentleman to refer to that fact, and, supposing that this report also was correct, it was an evidence that my hon. friend, the leader of the Opi. ositioo, speaking in Toronto, 75 found it necessary to call the attention of the audience to the fact that matters were not as bad in Toronto as they were in Home other pl;ice«. Mr. BLAKE. Hear, hear. So I did. Sir LEONARD TILLEY. That is correct, then. That ig very natural— that i^ what I wanted to j^ot at— that matters in Toronto were better than they wore elaewhoif^ •, and the statement which was given to mo, and which he says is not correct— and, of course, I accept bis statement— is that thiri was attributable to the fact that there wore not as many highly protected industries there, Mr. BLAKE. The hon. gentleman added, "and tha therefore labor was better paid there." I said that I did not make that statement. Sir LEONARD TILLEY. Bat still Toronto was in a better condition ; matters were better in Toronto than in other places, because there were not so many highly pro- tected industries there. Mr. BLAKE. No; I did not say that. Sir LEONARD TILLEY. If the hon. member for Brant (Mr. Paterson) wore making a speech in Brantford, where I am informed a quarter of a million of dollars have been expended in buildings in the last year, he would, no doubt, say that Brant furd is an exception to other places. It would appear that, wherever hon. gentlemen go, it is necessary to show that the loc dity they visit is a favor d locality. I think that, if I wat od to make a case, I would go to the locality which was the worst, and would pomt out to them their condition, and if they were warranted in the statement that it was the result of the National Policy, it would bo endorsed by them and would have a greater effect. What said the hon. the leade • of the Opposition : — 1 : » «• I hare no heiiutioa In wylng to yon that there if one teit which t h»TO always sought to lupply when I hare deeired to consider what the material condition of the country was, and tliat test was, what ia the material condition of the lowest class of honest labor in the country ? " Mr. BLAKE. Hear, hear. Sir LEONARD TILLEY. Yox, and I enJorso the whole ofit: •• If I find the lowest class so fairly paid that there is enough for the support of a man and those dependent upon hin, and something to lay up for a rainy day, I know that I need enquire no further." Mr. BLAKE. Hear, hear. Sir LEONARD TILLEY. Well, I may say that the tables fehow a Htate of affairs which will enable tne to comfort the hon. gentleman by showing it to him. This is taken from the statement of the Bureau of Statidtios of Ontario, and it shows that the blacksmiths and their helpers, the boiler makers and their helpers, the bricklayers, the carriage-builders, the car- penters, the cigar makers, the cotton mill men and their laborers, the machinists, the moulders, the painters, the plasterers and their laborers, the printers, the sewing machine men, the tin and coppersmiths and the tool-makers, have a surplus averaging $18 at the end of the year, comparing the receipts with their expenses during the year. This will be a comfort, I am sure, to the hon. gentleman. It appears that the plasterers are put down as costing them more to live than any of the others. I do not know why that bhould be the case. Of course, they are not employed as many days in the year as some others, and their receipts would be less, but I cannot understand why they should expend more than the others. It is stated that the laborer works 265 days in the year, that he averages $1.13 per day, that his yearly wages are $304, and his expenditure $255, which loaves $49 for him as a surplus at the end of the year, and for a rainy day. This statement should make 77 the hon. gentleman napremely happy. Ho should accept the condition ofOatario at least as prosporouH, when the laborer recoiveo a Hurplns over hia actaal wanto and expennes. The loader of tho Oppoaition, roforring to tho state of the country generally, in his speech on tho AddresH, alluded to the city of St. John, the constitaoncy I have tho honor of representing. I cannot take oxcoptiun to tho tone of his language on that occasion, but his declaration was that, for forty years, as ho had boon informed, matters had not boon as bad in the city of St. John as they are at present. I think I know something of tho city of St. John as fur back as forty yoars, and I have seen several periods since 1845 whon tho people of that city wore in a much worse condition than they are to-day. I recollect whon the laborers in that city, in order that they might be saved from great want, wore employed by tho corporation at Is. Gd., or dO cents a day to cut down the rocks of that city. I know that, under the peculiar circumstances of the country at that particular time, there was great want felt everywhere throughout the Province • I know there was groift depression. I know that has occurred two or three times since the date to which I refer, but to a more limited extent. Nothing of that kind exists at the pre. sent day. Bat I would call the attention of tho hon. gentleman to the fact that the city of St. John especially labors at this moment under certain disadvantages. Previous to 18Tdi, there was a large thip-building interest in that Province. I know that in 1854therewere constructed 106,01)0 tons of vessels. It was then a very important industry in the Maritime Pro- vinces, and especially in the Province of New Brunswick. At that time the city of St. John was tho principal point where deals wore manufactured from logs brought there. Now, a very large portion of the deals are manufactured near Frederioton, by Mr. Gibson, in mills owned and leased by him. The result has been that owing to the depreoiation in the 78 value of shipping, owing to the decreased demand for wooden vessel-, owing to the depression in the shipping interests being so great at this moment that there is scarcely any de- mand for even iron ships in the old country, there is but a limited number of vessels being built in the Province of New Brunswick or the city of St. John to-day. And, Sir, were it not for the new industries that are being established and that are taking the place of those that will not be restored to the porntion which they occupied from 1854 to 1868, there would be in that city and Province today an amount of depression much greater than that which now exists. The industries to which I refer have oeen replaced by other industries, and other manufactures have been brought into existence, and fostered by the operation of this tariff. Perhaps, Sir. it may not be out of place for me to say that tonight, in the city of St. John there is depression and gloom. Unhappily withm the last 48 hours a representative of that city and county, and a member of this House, has been summoned bence-a gentleman with whom I acted in concert for many years a Lrm and a true friend and an honorable opponent, a gentle- man I regretted to separate from on political issues, a gentle- man universally respected and esteemed in that city, a kind father and an affectionate husband, a most enterprising citizen, and an able and zealous member of Parliament, has been taken away and to-iay that city mourns. 1 take his opportunity, though politcally opposed to each other of late years, of paying this passing tribute to his -e-ry, bocause there are few men who could be removed from the city of St. John who will be more missed, whose loss will be more deeply felt, than that of the late Minister of Customs. Sir when I look at the country co-day and think what might have been its condition if we had not, in 1879, by the action of Parliament, established new industries in Canada, 1 think mmm^if^ HIM 79 it is not 80 much a question of what depression exists to-day AS it is of what would hare been the depression in Canada had we not adopted a policy that has brought into exist, ence the industries that have given employment, and are giving employment at the present moment to 50,000 more men and women than were thus employed in 1878. Sir we know perfectly well that throughout Canada almosc evory city has thought it advisable to spend large sums of money for sanitary purposes. Take the city of Ottawa, for instance. When we came here in 1867 it was not as healthy a city to live in as it is at present. A large sum of money has been expended in the drainage and in pro- curing a supply of pure water. I know, myself, as a resi dent of the city and a house owner, that it costs more for water than it did when I firpt came here. But, at the same lime, the reduction in insurance upon my property has been equal to the increased taxation, ,nd the sum expended has given increased sanitary advantages to the city. And so it is in nearly all the cities of the Dominion of Canada. Sir, suppose that an epidemic should prevail here next year . suppose the cholera should, unhappily, be introduced into the cities of Canada, and large numbers of the population should be swept off by it. Why, Sir, it would be as inconsistent for some of the inhabitpnts of the towns to give as an evidence of the unwisdom of the expenditure for sanitary purposes, that the mortality had been in- creased by reason of this epidemic, and therefore to condemn that expenditure, though the death rate was not as great as formerly, as it would be for hon, gentle- men opposite, while this epidemic of bad trade exists all over the world, and has reached us to a certain extent, to de- nounce the protective policy because there are a few manu- factories that are not employed full time, and who have a less number of men engaged in them than they had six months 80 or a year ago. I think the country understands this ques^ tion very well, and I believe it will be found necessary for hon. gentlemen opposite, wherever they go, to use the language that has been used in some other cases, namely, that the locality in which they are speaking suffers lebs than other localities. Sir, I must apolo. gise to yon and the House tor the time I have taken in quoting so many figures in laying these matters before Parliament. On former occasions, when referring to the amount of taxation per head.of the population, I have merely stated the figures, but in this case I thought it necesBary, in order to fortify myself, to take figures from the Public Accounts and from official documents of the United States, and submit them for your consideration, as proof of the position I have taken. I feel that whatever may be the opinion expressed by hon. gentlemen opposite, the fact that the Pacific Eailway has been completed, and that the large amount of money expended on the canals, in order to complete them, with the light taxation I hav» mentioned, warrants me in saying that the taxa. tion of the country has not been increased. When you take into account the amount that has been contributed for the support of the Provinces by the legislation of last year, and when, notwithstanding all these liabilities so incurred, the net interest paid upon the debt is only 1 or 2 cents per head more than was paid in 1879-1 say when th.s is known, there will be a general feeling of relief in the country and a conviction that we have obtained wonderful advantages for the Dominion of Canada in developing its resources, in increasing the value of our magnificent estate in the North-West, in laying the foundation for a powerful nation, and in enabling us to realize that we are a great and prosperous people, and at the same time are subjected to smaller taxation than almost any other country in the world. 81 Mr. Speaker, I move that you do now leave the Chair and that the Eioaee resolve itself into Committee on the fol- lowing Resolutions : — 1. Resolved, That it isexpedieat toamead the Tariflfof Oustoms OutiM and schedule of free goods, as follows : — (1.) By adding to the free list Schedule B, the following Rr.cles now a dmitted free by Order in Council, under authority of aub-aeotioa 13 of section 230 of the Customs Act, 188? :— Qas coke, when used in Canadian manufactures only. Woollen rags. Steel, imported for use in the manufacture of skates. Musk, in pods or in grains. White shellac, for manufacturing piirposes. Jute cloth, as taken from the loom, neither pressed, mangled, o«l«a« dered, nor in any way finishe I, and not less than 42 inches wide, when imported to be manufactured into bags only. Salt cake, being a sulphate of soda, when Imported by manufaotaror^ of glass and soap for their own use in their works. " Foot Oreare," the refuse of the cotton seed after the oil is pressed out. Tagging metal, plain, japanaed, or coated, in coils not over IJ iaehM in width, when imported by manufacturers of shoe and and corset laces for use in their factories. Locust beans, for the maaufaotare of horse and cattle food. Hoop iron, not exceeding three-eights (|) of an inch in width and being No. 25 gauge or thinner, used for the manufacture of tubn- lar rivets. Buckram, for the mauufacture of hat and bonnet shapes. Recovered rubber, and rubber substitute. Silver and German silver in sheets for manufactui : purposes. Steel of No, 20 gauge and thinner, but not thinner t .»a No. 30 gauge, to be used in the manufacture of corset steels, clock springs and shoe shanks, when imported by the manufacturers of such articles for use in their factories. Cotton yarns, finer than No. 40, unbleached, bleached, or dyed, and not finer than No. 60, for the manufacture of Italian cloths and worsted fabrics. Steel in sheets of not less than II nor over 18 wire gauge, and costing not less than $75 per ton of 2,240 lbs., when imported by mano- facturers of shovels and spades for use exclusively in sach manu- facture in their own factories. Red liquor, a crude acetate of alumina prepared from pyroligneoos acid for dyeing and calico printing. Iron liquor, solution of acetate of iron for dyeing and calico printing. (2.) Also, by adding the following unenumerated ar+'oles to the ftee list:— 1. Precious stones, oiz : — Agate, amethyst, aqua marine, blood stone, carbuncle, caf s-eyes cameo, comeiian, crystal, crysolite, crosordolite, emerald! 82 garnet, intaglio, inlaid or incrusted stones, onyx, opal, pearl,, ruby, sardonyx, sapphire, topaz and torquoise, not polished or otherwise manufactured. 2. Bichromate of soda. 3. Sulphate of iron (copperas). 4. Indigo auxilliary. 6. Fancy grasses, dried but not colored or otherwise manufactured^ 6. Oil cake meal. . ^ r, a- 7 Paintings in oil or water colors, the production of Canadian ' a.t::-, under regulations to be made by the Minister of OuBtoma. . (3.) By adding to the following articles now on the free list, ihe ex- planations Had additions attached to each respectively :- 1. Bolting cloths, of silk or worsted, not made up. 2 Borax, not ground or otherwise manufactured, 3. Duck for belting and hose, when imported by manv/acturers of rub- ber goods for use in their J actor ies. 4. Mineral waters, natural, not in bottle. 6. Pitch (pine) in packages oj not less than 15 gallons. 6. Pumice and pumice stone, ground or unground. 7. Quercitron or extract of oak bark,/or fflfinw^. 8. Resin, in paekagea of not less than 15 gallons. 9. Steel railway bars or rails, not including trarti or street railt^ 10 Tar (pine), in packages oJ not less than 15 gallons. (4) By repealing all duties chargeable under any Act now m force on any of the articles hereinafter mentioned, except so far as they are the »me as those hereinafter mentioned, and substituting therefor the rates of duly hereinafter mentioned respectively:— 1. Costume clothi?, serges and similar fabrics, under 25 inches wide, 25 per cent, ad valorem. 2. Winceys of all kinds, 25 per cent, ad valorem. 3 Pickles and sauces, 25 per cent. a