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BY HON. f 08EPH SHEHYN 1 TRE ASUREiil OF t H E PROVINCE xAsn 7i/ © PjE JSIO JEI DELtVEE&l^ -IK THE '^ '^H|MH^B Legj8i«ltve'pllUy df |ihAib0, oo tlie 2ist Wmn, 1890 \; BY MR. ^fembtn' for Morvtmorencff, It'f I k mm BUDGET SPEECH DELIVERED BY HONORABLE JOSEPH SHEHYN, TREASURER OF THE PROVINCE. IN THE LEGISLATIVE ASSEMBLY OP QUEBEC, ON THE 21st FEBRUARY, 1890. Mr. Speaker. — Before proposing the usual motion that the House do resolve itself into Committee of Supply, it is my duty to submit as full and clear a statement as possible on the financial situation of this province. It is always an arduous and a laborious task to prepare a budget speech, and, unless very familiar with figures, few have anything like an proper con- ception of the amount of work involved in the making of a careful and precise financial statement. Although he may be extremely anxious to avoid being unnecessarily tedious, the author of a work of this kind, in order to make himself intelligible to all, is often obliged to enter into a multitude of details which to some may seem superfluous, but which are not the less essential to tlie clearness of the subject he has in hand. I quite understand that a speech of this nature presents few attractions to its hearers ; but honorable members will kindly remember that the task, ho\yever distasteful it may be both to tlie speaker and his audience, is a duty imposed on the Treasurer by his position and also that the House and the country require from those entrusted with the administration of public affairs a faithful account of their stewardship. ■M /■' \^jr-^^ Having now this duty to perform, I trust that members will extend to me the indulgence which has never been wanting on their part in the past. To render my statement more intelligible, I shall at once indicate the order I intend to follow : 1. Kemarks on the fiscal year 1888-89 ; 2. Assets and liabilities ; 3. Fiscal year 1889-90 ; 4. Comparative statements ; !), Conversion ; (5. Receipts and appropriations for the fiscal year 1890-91 ; 7. General remarks on the situation. I shall now endeavor to give the House all the information possible on each of these heads. The operations, detailed in the public accounts, may bo summed up as follows : Receipts of the Fiscal Year 1888-89, Dominion of Canada S1,260,412 80 Crown lands 1,075,045 42 Administration of justice 214,626 63 Tevcentage on the fees of public oflicers 7,894 64 Licenses 430,410 85 Legislation 1,472 63 ^^ Lunatic asylum — contributions from municipal- ities and patients 28,276 27 Ojfidal Gazette 17,267 06 .> ' Public buildings 855 53 Casual revenue 1,943 61 Contributions to civil service pension fund 7,160 10 Contributions to expenses of inspection of insu- rance companies 550 00 Industrial schools , 45 60 Taxes on commercial corporations 144,550 84 Interest on deposits in banksand on loans 51,362 15 Premium, discount and exchange 371 25 Interest on the price of sale of the Q. M. 0. & 0. railway 369,942 16 Ilailway inspections 253 00 Refunds 16,644 60 Total ordinary receipts $3,628,184 20 ""^T" i to me e order 3n oach up an 3 L84 20 V XT — — '■■ - . - .. » Truat/und — teachers' pension fund $16,886 08 Security deposits by public officers 2,000 00 Security deposits for construction of iron bridges.. 205 25 City of Hull sinking fund 1,557 09 Marriage license fund 7,164 00 " La Canadienne " Insurance Co. deposit 20,000 00 Temiscouata railway — guarantee deposit 644,573 45 Montreal and Lake Maskinong^ railway — gua- rantee deposit 32,703 00 Quebec and Lake St. John railway — guarantee deposit 1,552,394 00 f 2,277,482 87 Municipal loan fund 86,538 60 Quebec fire loan 360 00 Eepayments of advances 6,000 00 Total receipts from all sources 35,997,565 67 Payvients of the Fiscal Ymv 18S7-S8. Public debt $1,134,789 51 Legislation 231,812 90 Civil governement 236,987 39 Administration of justice, including police 467,605 39 Eeformatories and industrial schools 83,220 39 Inspection of public offices 8,294 68 Public instruction 306,285 00 Literary and scientific institutions 8,550 00 Arts and manufactures 15,000 00 Agriculture 94,061 93 Immigration 5,975 75 Repatriation 1,771 25 Colonization roads and societies 124,000 00 Public works and buildings 116,164 23 Lunatic asylums 230,000 00 Charities 41,956 00 Miscellaneous 19,977 00 Agent in France 2,600 00 Crown Lands Department 201,200 00 Municipalities' fund 2,004 00 ^iP 1 m Ojffidal Gazette 13.623 45 Deductions on revenue, stamps, etc 8,569 29 Pensions paid 15,589 09 Traffic expenses— Q. M. 0. & 0. Eailway 8,500 00 Building and jury fund— amounts paid by sheriffs out of collections 10,311 47 Licenses— amount? paid by revenue officers out of collection 38,323 64 Criminal Law, by Hon. Judge H. E. Taschereau 1,000 00 Indemnity to family of late Mr. St. Hilaire 600 00 Copying and repairing of registers and documents, etc 10,000 00 Sherbrooke Hospital and Orphan Asylum 1,000 00 Eailway inspections and contingencies 1,500 00 Commission on Lunatic Asylums 6,000 00 Agricultural Commission 5,000 00 Local municipality of St. Leon, county of Maskinonge 800 00 Agrarian Inspectors' Manual 1,200 00 Relief to the inhabitants of the counties of Soulanges, Vaudreuil, etc. 6,000 00 Eelief to Sherbrooke exhibitors 3,000 00 Metap^diac bridge 5,600 00 Repairs to the church of Tadousac... 200 00 Manuel des Inspecteurs Agraires 1,200 00 Hospital of St-Jean d'Iberville 500 00 Hospital of Fraserville 500 00 Indemnity of members of the Legislative Assembly for the codification of the laws 3.420 00 Distribution to municipalities of copies of the municipal code 1,250 00 Teachers' pension fund, annual grant 1,000 00 Speakers' portraits 1,250 00 Grant to the deaf and dumb institution. Mile End, Montreal 3,000 00 Bridge at Barachois, Gasp6 610 00 Relief to the victims of the St. Sauveur fire 1,918 17 Total ordinary expenses $3,543,618 64 Trust funda : — Marriage licenses, distributed by Protestant Council of Public Instruction S 7,410 00 Security by public officers 4,481 17 Iron bridges in municipalities 3,856 00 Teachers' pension fund 5,629 46 Aylmer court house fund , 1,619 W Loan to " Protestant Lunatic Asylum, " Montreal. 15,000 00 vj/-' mffF Ix)an to Dr Gauvreau .* 2,500 00 Temiscouata liailway Company, <,'uarantee deposit, repayment 53,587 G3 Montreal and Lake Maskinor.gu Railway Company, guarantee deposit, repayment 4,327 60 8 98,421 46 New Parliament Buildings, Quebec, construction... 8125,729 53 New court house, Quebec, construction 42,733 59 Arthabaska court house and gaol, new foundations.. 1,400 00 Montreal court house, enlargement 60,000 00 , ■ Courts houses and gaols, new districts, lieating apparatus G,000 00 Circuit court and registration office, Kamouraska.. 4,000 00 Protestant Lunatic Asylum, Montreal, to be re- imbursed out of proceeds of Leduc farm 7,821 29 Codification of the laws 20,324 40 E.Kplorations in Dorchester and other counties 10,000 00 Compensation and expenses arising from errors in land surveys in the county of Eouville 10,500 00 Spencer Wood, stables, sheds, &c 4,000 00 Court house and gaol, Bonaventure, wing for the gaoler and guardian 4,000 00 Iron bridges in municipalities 50,000 00 Committee for the distribution of seed grain 50,000 00 Arbitration between Quebec and Ontario 1,673 72 Lockwood claim, re gold mines 10,000 00 Quebec railway bridge 1,277 16 405,459 69 Subsidies to railway companies , 1,049,847 00 Construction of Q. M. 0. & 0. E 26,800 00 1,076,647 00 Total payments of all kinds 85,824,136 79 Statement of the Cash. To cash on hand on 30th June, 1888 ■ 81,723,850 07 I Add trust funds 2,277,482 97 «• warrauts outstanding on 30th June, 1889 73,259 66 84,074.592 60 Less excess of payments over receipts for 1889.... 81,30R/'13 53 Less trust funds 98,411 46 " warrants issued in 1888, but paid in 1889... 460,518 81 1.864,572 81 To cash on hand on 30th June, 1889 82,210,019 79 I. ■ Kemarks on tho Fiscal Yiov 1888-89. Total Recei-pts and Payments, As indicated by tho public accounts, the total receipts and payments of this fiscal year were : Total receipts, including trust funds, guarantee deposits and repayments 85,997,565 67 Total payments 5,124,136 79 Surplus of receipts over payments 8 873,428 88 Add to this surplus tho cash on hand on 30 June 1888 1,723,850 07 82,597,278 95 Deduct the warrants of 1888 paid in 1889 8 460,518 82 Less warrauts of 1889 outstsmding on the 30th June last 73,259 66 ■ 388,259 16 And there remains a balance of 82,210,019 70 which will be found to correspond with the cash on hand on 30th June, 1889, as shown in the public accounts. Naturally, this only indicates the total operations, but does not show the situation exactly. To ascertain the difference between the receipts and the total ordinary and extraordinary expenditure, certain sums must be struck out, as I have just shown. The total payments were 85,124,136 79 But from these must be deducted ; ^.tr • m Trust funds $ 98,411 46 Reducing the total payments to $5,025,725 33 On the other hand, the total receipts were 85,997,565 67 Less trust funds and guarantee deposit 2,277,482 87 S3,720,182 80 Giving for special or extraordinary expenses a sura of 81,305,642 53 Extraordinary Expenditure. The total amount paid out for extraordinary expenditure, as per public accounts, was divided as follows : Miscellaneous (page 13 — public accounts) 8 405,459 69 Railway subsidies 1,076,647 00 81,482,106 69 Deduct the following sums : Surplus of ordinary receipts over ordinary expenses ^ 84,563 56 iSpocial receipts 91,898 60 176,464 16 Real amount of extraordinary expenditure 81,305,642 53 Ordinary Revenue and Expenditure. The operations of the year were as follows : ' ' Ordinary receipts proper 83,628,184 20 Ordinary expenses " 3,543,618 64 Leaving over ordinary expenses a surplus of 8 84,565 56 The above figures, I trust, will be found sufficiently clear as regards tho amount chargeable to capital and should also, I am satisfied, prevent any confusion on the subject in every impartial mind, even when not familiar with such matters. These statements, together with the public accounts, are of a nature to supply the fullest information in regard ^o the operations of this fiscal year and should satisfy all requirements. .Jjr- •, 8 - ' - ' • . ^^ The House and the country will therefore be happy to learn that the ordinary operations of the last fiscal year showed a surplus of $84,565.56 notwithstanding the predictions of our adversaries, who, by means of skifully manipulated calcu- lations and figures, have sought to make out that the operations of the year have culminated in a large deficit. By striking oft', on some more or less plausible pretext, certain receipts from one side and adding to the other certain special expenses, it is always easy to figure out any result that may be desired. The operation is exceedingly simple, but carries no weight in the eyes of those versed in such matters. Moreover, I shall have occasion, under another head, to show the futility of those who undertake to criticize the financial operations of the present administration. In my financial statement of 1888, I estimated the probable ordinary receipts at $3,345,672 80 The amount really collected was 3,627,932 20 or $ 282,259 40 more than my estimates. I also estimated the receipts from all sources at 83,403,672.80. They have reached the figure of $3,720,082.80 or $316,410.00 in excess of of my estimate. In 1886, the year so much extolled by our friends of the Opposition, the ordinary receipts only amounted to $2,949,562.15, while those of the year 1889 have come up to $3,627,932.20, which shows au increase of $678,082.05 over the year 1886. From 1883 to 1887, the most prosperous period of our predecessors, the average of the annual ordinary receipts amounted to .$2,844,109. A comparison of this annual average with the result of the last fiscal year shows an excess of $743,823.20 in favor of the latter over tlie former. Thid result is certainly of a nature to satisfy the House and serves to prove that we have used every diligence in the collection of the revenue from all sources. Of course, to secure an excess of receipts over my estimates, some items must have produced more than we anticipated. This increase occurred chiefly in the revenue from Crown lands and licenses ; but, on the other hand, there are decreases — ot slight importance, it is true — under certain heads, which have not came up to my expectations. Thus, for instance, the tax on commercial corporations, which had been counted upon to yield $175,000, including arrears only gave $144,550, and the same may be said of the interest on the coUectiong made by the Ontario Government on account of tlio common school fund, which returned nothing, though set down at $30,000. mm m& The annual average of the ordinary expenditure from 1883 to 1887, inclusively, was $3,095,939. During the last fiscal year, it reached the figure of 83,543,618,64, which indicates an increase of $447,679 But from this must be deducted the increase in the interest service consequent on the loan which we had to negotiate to pay oft" our predecessors' liabilities, that is to say, that the service in question has increased, to the- extent of an annual sum of S157,038, over which we can exercise no control whatever. After deducting this sum of interest, the additional expenditure for which we are responsible, compared with the average of that of our predecessors, anujunts to $290,641. But, against this increase, we have an excess in receipts of $743,823 over the average of the ordinary receipts of our predecessors. Moreover, our friends on the other side misrepresent the situation when they take as a basis of comparison the year 1886 which is the most favorable for them and the expenses of which, as I have already repeatedl}' stated, were cut down for a purely political object, for it must not be forgotten that it was the year which preceded the general elections. To be convinced of this, it is only necessary to glance at the fiscal year 1887 for which they are also responsible. On the 31st January of that year, they had already overrun their appropriations by a sum of $40,000 in round figures ; and, according to the calculations of the department ofticers, it was absolutely necessary to ask the House for further appropriations to'*the extent of $172,000, in round figures, to cover the insufficiency of the amounts required to meet the ordinary expenses from the 31st January to the 30th June, 1887. These two amounts together form a sum of $212,000 which, added to the expenditure of 1886, brings up the ordinarj'^ expenditure to $3,244,607.25. But this is not all ; to this last sum must also be added the increase in the interest service owing to their obligations and amounting, in round figures, to $150,000 which would swell the expenditure to over $3,394,000. Consequently, had they remained in power, thero is no probablity — I contend — that they would have been able to manage the afiairs of the province on a more economical footing than we have done, and the proof of my assertion is found in the fact that in 1887 Uie figure of the expenditure rose to $3,286,232.00 or to $3,416,232, if you include $130,000 which is the increase in the interest service between 1887 and 1889. Moreover, it is iiniiossible to increase the figure of the receipts to the extent of over $700,000 without a proportionate increase of the expenses. For the last fiscal year, the special expenditure amount to the sura of $404,459.09 but against this sum must be placed the following amounts : — special receipts, $91,898.60 and surplus of receipts over ordinary expenses, $84,565.56. B •fSik^:: iiiiwia These two together form a, total of ^170,464.16, which have served to cover an equal amount of the special expenditure, and for which the Opposition make no allowance in the erroneous statements they are laying before the House and country in the form of non-confidence motions. On this amount of $405,459.69, our friends on the other side admit that the sum of $168,463.12 rightly belongs to capital account. Deducting these $168,463.12 from the $405,459.69 there lomains, according to their own calculation, a sum of $236,996.57, which, they contend, is chargeable to ordinary expenditure and should figure as such. But, in their non-confidence motions, they only speak of the increase of this expenditure without allowing for the special receipts amounting to $176,464.16 which we have taken in and the deduction of which from the $236,996,57 would therefore leave uncovered only a balance of $60,000. - Let us now see whether there is any foundation for their contention with regard to the special expenses which they add to the ordinary expenses, Thcrte special expenses are made up of the following items : Special expenses : — Exploration in the counties of Dorchester, &c.. $ 10,000 00 Coinpousation and expenses arising from errors in land surveys, county of llouville 10,500 00 New I'arliament Buildings, Quebec, construction 125,729 53 do Court House, do do 42.733 59 Spencer Wood, stables, sheds &c 4,000 00 Circuit court and registration office, Kamouraska 4,000 00 Court house and gaols, new districts, healing apparatus 6,000 00 Court house and gaol, Bonaventure ; wing for the gaoler ami guardian 4,000 00 Court house and gaol, Arthabaska ; new foundations 1,400 00 " Montreal, enlargement 50,000 00 Iron bridges in municipalities 50,000 00 Codification of the laws 26,324 40 I'rot^.jtant Lunatic Asylum, Montreal 7,821 29 Committee for the distributicm of seed grain 50,000 00 Arl)itration between Quebec and Ontario 1,673 72 Lockwood claim, i'c gold mines 10,000 00 Quebec railway bridge 1,277 10 $ 405,459 69 Out of this sum, they concede as chargeable to capital account the following expenses : H^ AL'.at, - msMMtUi 59 New Parliament Buildings, construction. New Court House, Quebec % 125,729 53 42,733 59 $ 168,463 12 There remains therefore a sum of $236,996.57, which they pretend to ba ordinary expenses. But, if from this sum you deduct the $176,464.16 of special receipts, there will only be left uncovered a sum of $60,521.41, because the two amounts which they admit as chargeable to capital are covered by the loan. An examination of each item under the head of special expenses will at once convince the House and the country that the pretensions of our adversaries are not warranted by the facts. The expense of $10,000 for the exploration in Dorchester and other counties cannot be regarded as a current expense, because it is incurred in the general interest of the country and is moreover only temporary. There is another sum of $10,500 given as compensation and expenses in connection with an error com- mitted in the land surveys at Rouville and which represents an old claim against our adversaries that we have been obliged to settle. It is therefore an arrear to be paid out of the funds which we collect from this source. Outlay of $4,000 at Spencer Wood for the construction of a stable, shed, etc. ; This is something more than a mere ordinary expense, as it has had the effect of increasing the value of the property. Outlay at Kamouraska for the construction of a new court house ; A new building cannot be regarded as an ordinary expenditure, because we have in it a property representing the capital invested. The $6,000 incurred for heating apparatus in the new districts should be legitimately admitted as chargeable to capital, because it cannot be classed among the ordinary expenses of maintenance, seeing that it imparts additional value to the Government foperties into which these apparatus have been introduced. $4,000 for a wing added to the Bonaventure court house and gaol ; No one can maintain that an addition of this nature should be classified as an expense for ordinary repairs. It is sf if-evident that the addition of a wing to a building enhances its value ; there can be no doubt on th^'s head, and it is sufficient to simply mention the thing to show the absurdity of tuose, who, for political ends, resort to such means in order to make out deficits where none really exist. gmngyi^^^ 12 $50,000 for the enlargement of the Montreal court house. $200,000 had been voted for this purpose. It had even been decided to build a new court house, as the present building was no longer adequate to the requirements of the district, in view of the enormous increase of business. But, instead of erecting a new building, which would have entailed a heavy outlay, the Government came to an understanding with the Bar to utilize the present building with the aid of certain changes and improvements, which would serve the same purpose as a new building. It was to this end that this sum of $50,000 was expended. The Gov- ernment has therefore, by its policy, realized a considerable saving. Consequently it is absurd to pretend that this expense is only an ordinary expense and should be classified as such. Yet this is exactly what our adversaries do in the statements which they have prepared and laid before the House and the country with their non-confidence motions. $50,000 for iron bridges in the municipalities ; here is another item which our adversaries class among the ordinary expenses. It is enough to mention the fact to illustrate the lengths to which they push their exaggerations. It seems supremely ridiculous to look from such a standpoint at a policy so advantageous to the country and which will only have a limited duration. Next to railways, I regard the construction of iron bridges in the municipalities as one of the most really usoful works ever undertaken by the province. The sum of $26,324.40, appropriated for the codification of the laws, is also set down by them as an ordinal y expense. Yet, this is well and truly a special expense, since once the work has been finished, there is an end of it, $50,000 for seed grain in order to come to the relief of the farmers whose crops were destroyed by rain and hail storms ; This expenditure was altogether exceptional and unforeseen. Still, to cxnggerato the situation, our adversaries rank it also as an ordinary expense. This sum had had been UTianimously voted by the House as ati exceptional and unforeseen expense, and, now that it has been spent, our adversaries turn round and insist that it should be charged to ordinary expenses. They are so anxious to find us in fault that they manufacture deficits by the transfer of sums, simply from one column to the other ; in the same way, the class the sum of $7,821.29 given to the Protestant Lunatic Asylum of Montreal, and to be reimbursed out of the proceeds of the sale of the Leduc farm. Has anyone ever heard before that a sum repayable is a current expense ? Such is the system pursued by these gentlemen ; it is liy means of such calculations that tUey manage to swell the amount of the expenditure, and it is by setting aside certain receipts, for which no allowance is made in their statements, ^hat they succeed in making up deficits, where in reality there exist surpluses* be H X. V ilMa ■Mia. . J'- - iU - iHHIiir 13 I have deemed it my duty to dwell at some length on these special expenses, because it is by means of these items that our adversaries are seeking to mislead the House and country as to the true situation, and to impose upon those, who, through pai'ty-spirit or otherwise, have no fixed ideas on such subjects. The House will please also remember that these special expenses were voted as such and that it is very unfair on the part of those who now criticize us on these items, to blame us for an expenditure to which they consented. Under another head, I shall show how erroneous are their calculations with regard to these expenses, which they are using to confuse the public mind, and I will further prove that the special receipts which we collected, as well as the surpluses, have been more than sufficient to meet all these special expenses, which they now take advantage of to mystify the House with respect to the true situation. I cannot close my remarks on the last fiscal year without repeating what I stated on the subject in my last budget speech. It was as follows : — " I cannot, however, dismiss the (question generally of the expenditure without reminding the House that it is becoming yearly more and more difficult to keep down the current expenses, owing as well to the increase in the service for interest as to the fact many items of the public service have to keep pace from year to year with the increase of the population. New demands are springing up all the time, and it is moreover almost impossible to check the general tendency of the country to call upon the Government of the province for a large measure, of aid to every enterprise, whatever may be its nature or utility. " I must candidly admit that my experience, since I have been at the head of the Treasury Department, is that the universal feeling seems to be that the Govern- ment is bound to take the initiative in every undertaking, which either nearly or remotely wears the impress of a measure of public necessity, and that it is obliga- tory on our part to give it not only moral assistance, but in addition the amount of monej' required to carry it out, forgetting that the means at our disposal are only of a limited kind and out of all proportion to the constant demands made on the guardians of the public chest. Whilst, on the one hand, everyone seems to be anxious for public expenditure, on the other hand, no one seems to be inclined to contribute in any shape to the ways and means required to carry out the policy all so eagerly encourage. On the contrary, as a general rule, every possible influence is used, not only to escape doing so, but to avoid paying even the most legitimate claims of the Government. In fact, as already stated, the general tendency is un- fort anately to look up to the Government for aid and assistance in every kind of undertaking, but to bitterly oppose any and every attempt that is made to increase the public revenue. " That was what I said last year and I have seen no reason since to change my opinion. The country is in favor of a policy, the object of which is to promote the ,„/;«-- *? 14 extention of railways and other public enterprises in the province, and we have the proof of this in the numerous and inflential deputations which are daily soliciting new grants from the Government. But it is well to remember that it is impossible, with our ordinary annual revenue, to meet the obligations on capital account, which such a policy entails, and the same may be said with the regard to all the other great undertakings necessitated by the wants of the country. The country and the House are unanimous in admitting that a vigorous poUcy is needed as regards everything that may hasten the development of our resources, but, in making this admission, it should not be forgotten that great things cannot be achieved without some sacrifices on the part of those who benefit by that policy of progress and development. We desire, as far as lies in our power, to meet the unanimous wisli of the country, but we should not after- wards be blamed for outlays which the House had unanimously engouraged and sanctioned. We have an example of this in the conduct of the Opposition, who have, in the form of a non-confidence motion, attempted to blame a policy which they had themselves inaugurated when in power and which their freinds encouraged by their votes. It is not by exaggeration and erroneous culculations that they will succeed in imposing upon the public ; rather let them come out boldly and squarely, and proclaim to the House that they are opposed to the policy of railways, of iron bridges, of expenditure for agriculture and colonization, and we shall then know what are the vcws and wishes of the people. I now think I have given all the explanations that could be desired with regard to the last fiscal year, and I trust that the House will be fully satisfied that I have endeavored to present the situation as clearly as possible. P,.; Assets aud Liabilities on 30tli June, 1889. I shall now pass to the statement of the assets and liabilities on the 30th June, ]889. According to the reports supplied by the different departments, the liabilities and assets of the province stood at the close of the last fiscal year as follows : — \.J/" ■. .L^.;ii:.: 15 Approximate Statement of the Assets and Liabilities of the Province of Quebec, on the 30th June, 1889, based on the oflicial reports of the different departments, but not including a large amount of contested claims against the Government or the amount due to the province from the municipal loan fund : — Liabilities. Funded debt outstanding Temporary deposits Outstanding warrants Railway money subsidies authorized, but not yet earned Ilailways land subsidies, converted into money subsidies, authorized but not yet earned, balance on the iirst 35 cts. per acre Parliament Building, construction Contract for statues on Parliament Buildings Estimated amount required to complete Quebec Court House Balance of land and other debts, Q. M. 0. oi 0. railway Loss on Exchange Bank deposit Quebec Court House bonds $21,510,960 00 2,434,702 70 73,259 66 1,543,497 33 . 1,049,888 60 70.000 00 25,000 00 155,000 00 68,500 00 27,000 00 200,000 00 $27,157,808 21 Assets. 30th Part of price of Q. M. 0. & 0. railway deposited inbanks $ 385,000 00 Part of price of Q. M. 0. & 0. railway invested in Quebec Court House bonds 200,000 00 Part of price, do, invested in city of Quebec debentures 15,000 00 Balance of price of Q. M. 0. & 0. railway unpaid. 7,000,000 00 $ 7,600,000 00 Capitalized railway subsidies under Dominion Act, 47 Vic, chap. 8. 2,394,000 00 Claim against Hon. Thomas McGreevy 100,000 00 Cash in banks 2,210,019 79 Cost of Jacques Cartier normal school, Montreal, to be repaid from sale of property 138,348 02 Advances to various parties 101,592 09 Estimated amount due as interest on Common School fund from Ontario 70,000 00 wr-jiN^. Jiii*' 16 Quebec Court House tax under 45 Vic, chap. 26, and 48 Vic, chap. 15 200,000 00 Excess of liabilities over assets on 30th June, 1889. S12,813,960 50 14,343,847 71 827,157,808 21 The total of the liabilities appears higher than it was on the 30th June, 1888, but in reality the change is not very appreciable, if allowance be made for the guarantee deposits which figure on both sides of the above statement. The funded debt amounts to $21,510,960, which is slightly lower than the figure at which it stood on the 30th June, 1888, as between that date and the 30th June, 1889, $54,429.29 were applied to the redemption of a corresponding amount of our bonds. If, on the one hand, the total of the liabilities is higher on account of the guarantee deposits, on the other, the assets, which on the 30th June amounted to $12,284,947.10, show a slight increase. The excess of liabilities over assets is readily- accounted for by the fact that the railway subsidies granted since that date figure as liabilities anil that in this excess the guarantee deposits are also included. As regards these deposits, it must be kept in view that they are only repayable gradually, by annuities, within the next ten years. It is impossible to say, even approxiiuately, when we shall bo called upon to make provision for our railway liabilities, as that entirely depends on the progress made with their works by the different compagnies entitled to the subsidies when earned. Some of these compagnies are going ahead vigorously, but, in a large number of cases, no progress whatever is being made. Again, some companies have converted their land grunts into money, without h.iving yet earned them, and others have not yet even affected the conversion. It is therefore impossible to say when the total amount of these land and money grants will be called on. I have nevertheless put them down as liabilities, because they are obligations which we shall have to meet some day or other. As regards all such railway subsidies, I know that the practice at Ottawa is to enter among the liabiUties only the amount due at the date to which the account is made up. I hesitated a good deal before entering them as liabilities, for I have often asked myself if, in the interest of the province, it would not be better to enter ! ■W^'^' •J'sajp?" -- .'r'^r " , • .''■■'T'~ " . WHi 17 regards i them as such when actually due or shortly about to foil due, believing that it is not always good policy to add to the liabilities what will only become due at a more or less remote date. The sums asked for the completion of the public buildings will, I hope, suffice to meet all the obligations arising from those undertakings. The sum of §155,000 includes a balance of SGO.OOO, in round figures out of the 8100,000, which figured in tlie statement of 1888. This sum of SI 55,000, which appears in the budget for the next fiscal year, is intended to completely and finally cover all claims connected with the construction of the Quebec Court House. Now, as regards the statement of assets, I do not think it calls for any special explanations, as it does not materially differ from the one presented in the last budget. However, 1 am of opinion that we should include among our assets the cost of the Parliament Buildings, upon the construction of which, together with the departments, the province has laid out a sum of SI, 500,000, in round figures. To my mind, this is a real asset, and the same rule should equally apply to all other properties of the Government. It is only right that the moneys expended on objects of this nature shoidd appear and l)e set olf against our consolidated debt. In this way, our financial position would be better appreciated at home and abroad and would give increased confidence to investors in our securities. It would thus be known that, if we have a funded debt, we have also to show against it a large asset in the shape of properties of great value, of which no account has yet been taken. III. Fiscal Year 1889-90. It is unnecessary to discuss at any length the probable results of the opera- tions of this fiscal year, seeing that all our calculations are only based on estimates. For this reason, it is difficult to submit figures, which offer any certain or definite guarantee as to their accuracy. Nevertheless, on the basis of the estimates, we can anticipate pretty approximately what will be the result of the operations of the year m so far as the ordinary receipts and expenses are concerned. A glance over the receipts and expenses will show that, for the moment the latter present an excess, which is, however, easily explained. 18 ■-~ ■- — Tho ordinary expenses for the six months ended on the 31st December amounted to the sum of S 2,0G9,415 72 And the receipts for tlie same period to the sum of 1,G03,1lumos himself on possessing the only absolute rule and measuni of precision which should be used under the circumstances and it is with such proceedings 'hat he succeeds in making up at \vill surpluses or delicits whenever it suits his political jnirposos — a man, who, notwith- standing his self-contradictions, past and present, publicly boasts of the long and painful study he has given to the sul)ject of our linances, who modestly payg himself the compliment of being tho only ono conversant with tho real iinancial situation, and who graciously awards to himself a diploma for his inCiilUbility and^ mathematical precision. iml off cal mil V P"' M 21 Naturally, his friciuls and those who do not see clcarlj in such matters aro iini)Osod upon Ijy demonstrations niadp with a sclf-suUicioncy and coolness worthy of a helter cause and take for science an empty parade of erroneous and misleadinjj calculations mon-ly intended for political ell'oct and calculated to throw the ])ublio mind into doubt and confusion. However, the followin"" l^SS^^SS^^^^PP^ 24 — — ■ . — « "• =. and, from 1885 to 1887, to 2,973,883 75 Which gives an increase of :$ 451,331 70 for the period from 1888 to 1890 compared with that from 1885 to 1887. The increase of tlie expenditure from 1888 to 1890, compared with that of 1882 to 1884, amounts to 1,364,742 65 But from this sum must be deducted the increase in the interest service for wliich our predecessors are responsible, seeing that it was contracted to cover their outstanding obligations, which we have been compelled to pay, namely 742,802 85 Making the real increase as regards tlie expenditure..... S 621,939 70 Excess of our expenditure, from 1888 to 1890, compared with that of the period from 1885 to 1887 :...$ 1,203,077 11 Increase in the interest service from 1888 to 1890 over that of 1885 to 1887 451,331 70 This item is not controllable and is due, as I have already stated, to the policy of our adversaries who left us liabilities which we have been obliged to settle since coming into power. Making the real increase $ 751,745 41 in the expenses incurred by us compared with tlioso of the three last years of our adversaries. If we apply the same comparison to the expenditure of our adversaries' first series, that is to say, from 1882 to 1884, we get a real increase, per annum, of Si207,313.26. In the second case, that is to say, in ajiplying tlic same comparison to the second series embracing tlie years 1885-1886-1887, the excess of our expenses annually amounts to !?250,581.80. Thus, in the first case, the excess of our expenses, for which we are responsible, amounts to $ 207,313 26 and, in the second, to 250,581 80 and not to ^700,000 as our adversaries pretend in one of their non-confidence motions. But, to make the true situation still clearer, we must necessarily take into account the figure of pur receipts during tlie three years of our administration as compared with that of a corresponding period of our adversaries. \. i/ ■ g^^MmUMk mam 'AVi^^y^sip^l ;,883 75 ,331 70 •,742 Co ,802 85 ,939 70 .077 11 Our receipts from 1888 to 1890, compared with those of our predecessors from 1882 to 1884, show an excess of. $2,810,508 94 Less increase in the expenses $1,364,742 63 Deduct increase in the interest service, for which we are not responsible 742,802 85 621,939 78 $2,188,569 16 If therefore, on the one hand, from 1888 to 1890, we spent $621,939,78 more than our adversaries during the period of 1882 to 1884, our receipts, on the other, exceeded theirs by $2,188,569.16. A comparison of the figures of our receipts from 1888 to 1890 with theirs of 1885 to 1887 shows an excess of $2,214,556 67 And the figure of our expenses an excess of. $1,203,077 11 Less amount of the increase in the interest service.. 451,331 70 752,745 41 $1,462,811 26 On the other hand, if, from 1888 to 1890, we expended, $752,475 more than they did during the period of 1885 to 1887, our receipts, after deducting this increase of expenditure, show an excess of $1,462,811.26. As I have just indicated, therefore, the increase in our receipts from 1888 to 1890 amounted to $2,810,508 94 The following figures show how this surplus was employed : We covered the deficits of 1882 to 1884 $851,148 92 Increase in our expenses 621,939 75 * " in the interest service 742,802 85 Surplus from 1888 to 1890 594,617 39 $2,810,508 94 The increase in che receipts from 1888 to 1890, compared with that of 1885 to 1887, was $2,214,556.67. Contrasted with this last period, which belongs to our predecessors, hero is what was done with this surplus : Deficits of 1882 to 1884 $416,862 17 Iicrease in the expenditure from 1888 to 1890.... 751.745 41 Increase of interest, 1888 to 1890 451,331 70 Surplus of 1888 to 1890, total 594,617 39 $2,214,556 67 D ftyuiihMiy^tai >'-H''^. 26 So that, with our receipts, wo succeeded not only in wiping out the deficits which had accumulated during the regime of our predecessors, but also in covering the increase in the expenditure as well as in the interest service, besides accumulating a surplus of §594,617.39. This is what we have done since we have come to power, and yet our hon. friends opposite would have the House and the country to believe that our financial policy is a failure. We have put an end to the era of deficits ; we have met the increase in the interest service ; and we have accumulated a surplus. Still, instead of frankly and loyally recognizing what wc have done to improve the financial situation, our opponents endeavor, by means of erroneous and misleading calculations, to deceive public opinion o,nd to lead this House and thn electorate into erfor by presenting exaggerated statements of the expenditure. I repeat that it is only by systematically leaving out certain receipts and by adding special expenses to the ordinary expenses that they have made out deficits where none exist. Is'ow, Mr. Speaker, a word as to the special expenses '.vhich, according to the pretensions of our adversaries, they say should figure as ordinary expenses and which, in fact, they include as such in their statements in order to swell up the amount of the ordinary expenditure. I have already conclusively shown that such expenses should not be treated as ordinary expenditure. As will be seen from the tables just submitted, it is shown that the receipt?, from 1832 to 1887, were insufficient to cover the annual expenditure which was lower — it is true — than that of 1888 to 1890, but, to make up the difference, our advcrsaiias had to fall back on capital by which their deficiencies were paid off, thereby running the province proportionately into debt. I HOW propose to show, by irrefutable figures, that not only have we wiped out the deficits, but further that our surpluses and special receipts have amply sufficed to cover the deficits and the special expenses, in regard to which our adversaries arc making so much outcry. In 1888, the honorable member for Montmorency, in order to make out a deficit, transferred from the special expenses, and added to the ordinary expenses, a sum of S187,7G2 76 In 1889 — see non-confidence motion 236,996 57 In 1890 do do 1^31,840 00 Foiminga totalof 8656,604 33 chargeable to special expenses and which our adversaries wrongly persist in carrying to the ordinary expenses, and which, indeed, they include in their motions of non- coufidence submitted to the House on the 31st January and 7th February instant. v. i/' ■=-«fi^i.. -V to tlie and the that My calculations are based on their own figures. These gentlemen take good care not to say a word as to the items which figure in the public accounts and in the budget under the form of surpluses and special receipts. Of course, to do so would not suit their purpose, for, if they took them into account, the House would at once see through their game, which is to create the impression that these special expenses are not covered by receipts and to show consequently that they increase our debt. Such is the unfair system followed by those honorable gentlemen, and which consists in transferring large sums from the column of extraordinary expenditure to that of ordinary expenses and leaving out certain receipts altogether. With such a system — a false one, to say the least — it is easy to make up deficits, but, for a party, it is not an honest mode of dealing with the finances of the country. The following is a statement of the amonuts which our friends opposite overlook, but which exist all the same. To be convinced of this, it is only necessary to consult the public accounts for 1888 and 1889. In 1888, over and above the ordinary expenses we had asui-plus of 3 373,196 03 Settlement of accounts with Montreal and reimbursement, see public accounts, page 11 80,926 41 In 1889, surplus 84,313 50 Municipal loan fund and repayments 92,150 60 In 1890, probable surplus. 100,000 00 Probable special receipts 50,000 00 Total of special receipts and surpluses $ 780,586 54 It is well to note, too, that, during the administration of our predecessors, they attributed to ordinary receipts the same items which we now enter under the head of special receipts. Our surpluses and special receipts therefore amount to the sum of $ 780,586 54 While the sum total of the special expenses, which our opponents now refuse to recognize as such attain the figure of. 656,604 33 We have consequently a surplus of. $ 123,982 21 It will be at once seen that, even admitting their theory of transferring the above sums from special expenses to ordinary expenses, we still have enough and to spare of receipts to honor them. Consequently, we have not, under this liead, increased the public debt, since our resources have sufficed to cover all these expenses, over which our adversaries are making an outcry and by means of which they attempt to deceive the House and the country. \.ir' V ■',.,*■• IJfe m^'w-9M^. - 'ymi^ E^siEas r ^ > r $ PiTJ If they consider that they are justified in adding to the expenses, it seems to mo that, in all fairness, they should also add to the receipts the suras collected under the same title. I must frankly confess my regret at having to refute such misleading and trifling calculations, and at having, in doing so, to fatigue the House with so many details ; but I believe that it is high time to demolish such misleading statements, the figures of which have been put together for no other purpose but to mystify the electors. Our receipts therefore have sufficed not only to meet our ordinary expenses, but further, as I have just shown, to cover the special expenses Avhich our adver- saries want charged to the ordinary expenses. It is by such petty means as these that they have succeeded in making out deficits ; but the House now knows what faith it should attach to these pretended deficits and what value it should place on their votes of non-confidence in relation to these special expenses. Before passing to another head, let us examine for a moment the following statement: — . . 2^ahle showing the excess of the payments compared with the receipts under our predecessors from 1882 to 1887. I have just given a comparative statement of the receipts and expenses for two series of years whilst our adversaries were in power. I shall now submit another table which, I believe, will completely demolish their pretensions as to the value of their financial administration. The following figures are official and have been taken from the public accounts prepared by the employees of the Treasury, under the direction of the Conservative Ministers. STATEMENT OF THE PAYMENTS MADE FROM 1882 TO 1887. Showing year by year the total of the amounts paid for ordinary services and the amounts on capital account, with the exception of temporary loans and reim- bursements of trust funds : 1882 Total payments 8 4,686,189 79 1883 " " 3,924,872 51 1884 " " 3,961,230 97 1J85 " " 3,746,572 33 1886 " " 3,682,992 30 1887 " " 4,530,104 48 Aggrogat« payments during this period $24,531,962 38 M V.l^' I ^^^JS^ilJ 1^ 'VT. . REVENUE RECEIPTS AND REIMBURSEMENTS ON CAPITAL ACCOUNT. (Excepting the temporary loans and trust funds, the receipts are those on which we can legitimately count, including revenue so called and reimbursements on account of capital :) 1882 Ordinary and extraordinary receipts 3 4,028,679 46 1883 " " " 2,856,973 51 1884 " " " 3,105,967 22 1885 " ^* " 2,973,319 29 1886 " « " 3,068,873 82 1887 " « " 2,978,571 62 Total receipts , $19,012,385 42 1882 Quebec Central, guarantee deposit made by this company and whose reimbursement is included in the payments enumerated in the preceding statement 8606,849 20 S19,619,234 62 The total payments from 1882 to 1887, as just shown, amount to the sum of 24,531,962 38 The total annual receipts for the same period were 19,619,234 62 The difference between the receipts and the payments for the period exteading from 1882 to 1887 therefore was. $4,912,727 76 This sum represents the amount which was expended on account of capital from 1882 to 1887, not counting the amount of the obligations outstanding on the 30th June, 1887, to which I will refer in an instant. The Government which preceded us therefore indebted the province to the extent of nearly five millions of dollars in the space of six years, and this debt was covered by means of loans, some at long term and others temporary. Besides we must take into account the balance of the floating debt out- standing on the 30th June, 1887, say $3,500,000, in round figures. This sum, added to the $4,912,727.76 just mentioned, forms a total of $8,412,727.76, which represents the obligations contracted from 1882 to 1887 or an increase of expenditure on account of capital during this period to the extent of $1,402,121 per annum. N-.V' m:: 30 Now, if we further take into account the contested debts, of which we shall have ultimately to pay a large part and which figure for a suna of S4,500,000, and if we add them to the 88,412,727.76, we get a total of 312,912,727.76 outstanding on the 30th June, 1887, which represents an expenditure of S2,150,121, per annum, on account of capital. This is in round figures the annual average of the expenditure on capital account, in 'ing the unsettled obligations over and above the receipts, from 1875 to 1887. In face of such a sura of obligations handed us by our adversaries when they were obliged to resign, how can they dare to-day to critize our financial administration, especially in view of the successful efforts we have made to improve the situation and to extricate the province from the difficult position in which it was placed ? The receipts under the reign of our adversaries were therefore insufficient to cover even the ordinary expenses, and even deficits were then an everyday thing in the ordinary budget. Nevertheless, in spite of this state of aftairs, we set courageously to work, and, the very first year for which we are responsible, we managed to bring down a budget, showing a surplus of S373,000 in round figures, and, in 1889, another of 884,563.58. We further succeeded in creating an additional revenue of over '8700,000 and ia restoring the equilibrium between the ordinary receipts and expenses. This is what has been accomplished under our administration. Still, with a full knowledge of these facts, our friends opposite now come forward to assert the contrary and to try to make the House and country believe that our administration is dangerous and of a nature to alarm the people. Fortunately these worthless declamations are not listened to seriously, and all this tissue of errors will not have the desired effect upon reasonable people. Yet, for all this, such groundless criticism will produce a bad effect upon capitalists and be very prejudicial to the credit of the province ; for, it must not be forgotten that these erroneous statements of our adversaries have been printed in both languages and scattered broadcast for the sole purpose of misleading the electorate, regardless of the con- sequences which such utterances may have beyond the province. , Conversion of the Debt. We have not lost sight of the important project of the conversion of the debt ; on the contrary, we have given special attention to it. My colleague, Hon. Mr. Garneau, Minister of Public Works, having been obliged to make a trip to Europe last fall for the benefit of his health, requested b .^ijL. M'' ■ 1 / ^mr- 31 rae to accompany hira. I did so, and the Government availed itself of tlie circum- stance to charge us both with tlie duty of studying this question, cautiously sounding the European money markets and obtaining all the information possible in order to ascertain if this desirable operation could be advantageously carried out. The Government took this jcep for two reasons : 1 ° Because it believed the circumstances favorable for making a new effort in the matter : 2 ° Because it desired that I should have the benefit of Hon. Mr, Garneau's knowledge and experience in discussing with some of the European bankers the principle and details of this great project. An order-in-council, passed on the 20th September, 1889, invested us with the retjuisite powers to carry through the undertaking the Government binding itself to ratify and ratifying in advance all that my colleague and myself might deem it advisable, in the interest of the province, to do in the connection. It will be readily understood that it is impossible for me make known the proposals that were made to us and the negotiations that took place ; it is sufficient to state that, during our stay in Europe, very advantageous, but strictly confidential offers were made to us. But, in view of the great importance of the transaction and the grave responsibility involved, we closed with none finally preferring to first submit the whole matter to the Ministers in council. I am glad to be able to add that, I think, these negociations can be soon re- sumed and that my colleague and myself have reason to hope that we shall effect, this conversion of the debt on excellent conditions and on a bfisis that will secure a considerable annual saving in the present sum of interest which we have to pay on the provincial debt. VI. Fiscal Year 1890-91, I estimate the receipts of this fiscal year at $3,528,672.80, of wlfich $68,000 represent the receipts on capital account, and $3,460,522.80 on ordinary revenue. This estimate is based on the receipts of the last fiscal year, making all duo allowance for changes that may take place in certain items which may turn out over or under ordinarv estimates. !--4a,U...^. — '''^'^ ■ ■frioiir- '^ m i' iw !■ — "~ 82 The following are the receipts on which I count : Federal Subsidy : Subsidy payable under the Confederation 4ct.. $ 959,252 80 Interest on trust funds 55,459 32 Special subsidy under 47 Vic, chap. 4 127,460 68 Interest on railway subsidies under 47 Vic, chap. 8 119,700 00 $1,261,872 80 Interest Interest on price of sale Q. M. 0. & 0. , railway $ 370,000 00 Interest on loans and deposits 10,000 00 Interest on collections made by Ontario from common school lands 20,000 00 S 400,000 00 Administration of Justice : , Law stamps $ 160,000 00 Fees 2,500 00 Building and jury fund 16,500 00 Contributions for the maintenance of vagrants iu prisons 10,000 00 Gaol guard, Quebec and Montreal 4,000 00 Fines 500 00 Montreal gaol 5,000 00 Montreal Court House 500 00 High Constable's fees, Quebec 600 00 -$ Eegistration stamps Licenses Crown lands Taxes on commercial corporations Percentage on fees of certain public officers Percentage on renewals of hypothecs Legislation Offi,cial Gazette Lunatic asylums, contributions from municipalities. 200,600 00 17,000 00 375,000 00 1,000,000 00 140,000 00 8,000 00 400 00 800 00 26,800 00 20,000 00 ;■; V A' ■si I 61,872 80 00,000 00 )0,600 00 17,000 00 75,000 00 30,000 00 10,000 00 8,000 00 400 00 800 00 J6,800 00 20,000 00 Public buildings, rents, &c G50 00 Contributions to pension fund 7,000 00 Casual revenue 2,000 00 QuobecFire loan 400 00 Kefunds 18,150 00 Municipal Loan Fund 50,000 00 8 3,528,672 80 This estimate has been prepared with the greatest possible care and I have reason to believe that we shall realize its amount. The sums to be received from the Dominion Government call for no ex- planation. According to agreement, the Ontario Government has paid into the hands of the Federal Government the amount collected from the sales of lands appro- priated for the common school fund from the 1st of July, 1867, to the 31st December, 1888. This amounted to the sum of $383,257.92, which brings up the amount of our share of the fund to $1,080,129.82, so that we can count on an additional interest of $20,000, in round figures, xopresenting 5 per cent, interest on the amount added to the fund. The receipts arising from the administration of justice are set down at a very moderate figure ; my estimates being rather under what they will really produce. I prefer to adopt a low average to running the risk of being mistaken in my calculations. I estimate the revenue from licenses at $375,000, although they produced a higher sum last year. Still, I prefer to keep the same amount as last year in order to make up for any losses which I may meet in connection with other items. It happens every year that some sources of revenue produce less, while others exceed the estimates. To secure a good average, it is necessary therefore to put down a figure upon which we can surely depend. I estimate at $1,000,000 the receipts from Crown lands. My honorable colleague, the Commissioner, is convinced that they Avill exceed that amount . I prefer, however, to use a lower figure to running the risk of being disappointed. The revenue from the taxes on commercial corporations is placed at $140,000. In the opinion of the Comptroller, this is the amount which will be realized this year, and it is certain that it will not produce leas next year. I have put down the receipts from the municipal loan fund at $50,000 ; but this item is always more or less certain. This figure is sometimes exceeded and, in other cases, the collections do not come up to the estimate. Let us now come to the item of expenses : £ \,^'JT »H>'!,;'; 'ism'WMj.'. i«i. ',VV(» 34 I eatimate at 84,877,828.24 the total payments for next fiscal year, distributed as follows : Ordinary Expenses : Interest on the public debt ....$ 1,176,0G5 32 Administrative service 2,249,589 92 $ 3,425,645 24 Capital Expenditure : Construction of public buildings, &c S 912,183 00 Railway subsidies 540,000 00 S 1,452,183 00 Total 3 4,877,828 24 Ab members have had the estimates in their hands for so me days past, and as they have had plonty of time to study them, it is needless for me to dilate upon the details. Moreover, seeing that the estimates contain a comparative statement of the estimated expenditure for the current year as well as that for next fiscal year, the increase or decrease in each particular service can be seen at a glance. As the discussion has already taken place on a large number of items and will be continued in Committee of Supply, it would bo useless on my part to go into details, which would serve no purpose at this moment. , The total of the expenses on capital account is larger than that of last year. We ask $912,183.00 for public works, buildings, &c., and $540,000 for railway subsidies, &c. For the next fiscal year, the expenditure connected with public works and buildings, including subsidies to railways, will amount to 81,452,183, which is $237,545.71 more than what wc propose to expend during the current year. The following statement will sh-MV the increases and decreases : 1890. 1891. Parliament Buildings $ 162,760 00 8 20,000 00 Quebec Court House 49,037 36 158,207 00 Spencer Wood, construction of a green house, root house, etc 10,231 00 1,000 00 35 Explorations in the counties of Dorchester, Levis, Bellechasse, I'lslet, Monttnagny, etc Circuit Court, Karaouraska Heating apparatus to court houses, in now districts.. New court house, Quebec, ornaments for roof Construction of iron bridges New vaults for court houses and gaols in rural districts Library of the civil code Dictionnairo numc^rique Heirs of the lato J. Langelier .» Oil portraits of the Speakers Brother Arnold, repairs done to his school Purchase of the library of the late Judge Polette.. Heirs of Hon. T. J. J. Loranger New map of the province Corporation of the town of St. John's New furniture for the two Houses Night schools Printing and binding — arrears of 1878 Construction of a vault for the archives at Quebec. Enlargement of the Montreal court house Montreal gaol Court house and gaol, Sherbrooke " " " Gaspe Quebec gaol Court house and gaol, Iberville Stoning roads, as an experiment Codification of the laws Colonization roads Montreal exhibition association Court house, Hull " Edifice Nationale " at Montreal 10,000 00 2,512 00 100,000 00 5,000 00 6,000 00 2,785 00 5,000 00 1,800 00 1,814 53 3,000 00 2.182 40 10,200 00 3,500 00 4,640 00 20,000 00 6,500 00 36,675 00 8,000 00 800 00 100,000 00 7,000 00 40,000 00 10,000 00 150,000 00 300.000 00 3,000 00 2,286 00 3,890 00 3,000 00 10,000 00 50,000 00 25,000 00 10,000 00 10,000 00 3443,637 29 $912,183 00 For 1890-91 8912,183 00 do 1889-90 443,637 29 Increase $468,545 71 { r • Railways, • . 1890. 1891. Montreal, Ottawa & Occidental Eailway 81(3,000 00 840,000 00 do revenue 5,000 00 SubsMies to railways '. 750,000 00 500,000 00 8771,000 00 8540,000 00 Eailwa^s for 1890-91 771,000 00 do do 1888-90 540,000 00 Decrease S 231,000 00 The expenses which we propose to incur in connection with the construction of public buildings are of absolute necessity. The sum asked for the Parliament Buildings is 820,000. It includes an amount of 810,000 for statues and certain works of minor importance. It is in every point of view desirable that we should come to a settlement with the contractor, in order to have done once for all with the construction of that edifice. As regards the Court House, that building is completed, with the exception of a few trifling works which still remain to be done. Wo still have to pay the amount entered in the budget in settlement of all outstanding accounts as well as claims of the contractor, in virtue of the award of the arbitrators given in his favor against the Government. The appropriation for iron bridges is apparently 8100,000 but in reality it is only 875,000, as there is included in it 825,000 voted du"ing the previous year. The sum of 810,000, set apart for tho construction of a vault for the Quebec archives, will be needed in the very near future, as the building in which these archives are kept is about to become the property of tho Christian Iirothcrs. We have a'^ked a vc^c 8150,000 for the enlargement o" the Montreal Court House. It is impossible to state iu advance whether the whole amouTi. will be required during the next fiscal year ; that will greatly depend on the nature and progress of the work to 'oe done. Tho appropriation asked for tho construction of a gaol at Montreal will, perhaps, not be entirely needed during the next fiscal year ; that again will depend on the despatch that may be made in connection with the construction of the new building. ''ff^^ WPHHIli V ir- J3«iu4L:>:, .i>^ m^Wff .'TM . 37 1891. 40,000 00 00,000 00 iO.OOO 00 nstructiou eludes au It is iu with the lat edifice. exception pay the as well as ^n iu his ality it is IS year. le Quebec in which I'rothers. Montreal amouiii. 1 on tho real will. i^aiii will uctiou of With respect to the subsidies to railways, it is always difficult to foresee, even approximately, what will bo wanted for this branch of the service, as all depends on the vigor with which the companies will get on with their works. In any case, I have reason to presume that the v/hole sum entered in the budget will not be used. Last year, we placed in the budget a sum of S750,000, out of which, on the 31st December, only $171,144.04 had been paid and it is not likely that the balance of this amount will be called upon between this and tho 30th June. Ihus, the credits asked for under the head of special expenses and railway subsidies will, perhaps, not b3 entirely required during the course of the next fiscal year, but, as it is impossible to say beforehand with what rapidity these works may be prosecuted, wo have asked what we believe might, perhaps, bo necessary to meet all possible eventualities. Now, if you bring together the estimate of the ordinary receipts aud that of the ordinary expenses for 1890-91, we get the following result : Ordinary receipts S 4G9,522 80 Ordinary expenses ,.. 425,645 24 Surplus of receipts over expenses S 34,877 50 In the estimates which I have just submitted, it has been our endeavor, with all due regard for the requirements of the public service, to keep as far as possible tho expenditure within the limits of oar resources, and unless we aro prepared to adopt a policy, the object of which would be to operate a reduction in cohtroUable services which might impair their eifectiveness and to diminish in a [.'jiieral way a host of gniuts whicli. we consider in the public interest, it would bo ditticult to put down a lower figure tlun the one we ask. It must not be forgotten, however, that the interest service, which is not controllable, goes on increasing fi'om year to year and that the amount required for this pu .poso is to-day $200,000, in round figures, higher than it was in 1886. It is also beconiiug moro and more difficult to control the amount of the cost of legiskdon, and that of the civil service, the admiii. ration of justice, public instruction and tho department of agriculture ai. I Ionization. With the development of our vesourcf^s and tlie increase of our population it is, of course, only natural that the cost for thesa difteront services should undergo a progressivo iufluence towards a higher expenditure. Tn "^Jf ^W: 39 in good faith, want to draw us into a course which might become dangerous, if not prudently kept in check ; for we must not forget that the policy of giving grants to every kind of enterprise has the effect of adding to the sum of our obligations which will necessarily have to be met some day. As for the financial situation, I thing, I can safely assert, without fear of serious contradictions, that it is infinitely superior to what it was when we came into power. With our i>resent resources, \\'(i have succeeded in covering past deficits, meeting the increase in the interest service, providing for unavoidable expenses, and in showing a respectable surplus. This is certainly the best proof that our exertions have not been unsuccessiul. As in the past, we shall continue to follow out the progressive ideas which we have advocated since coming into office. But, to do this successfully, we must rely upon the good will of all who have at heart the intellectual and industrial development of our province. (Prolonged Applause.) ♦ *« I ^ ve il cr Ti to ni su of ef -St h V-jr* J SIPEEOSC OF THE HON, HONORB MBRCIBR, PREMIER OP THIi PROVINCE, DELIVERED IN THE LEGISLATIVE ASSEMBLY OF QUEBEC, OX THE 21sT FEBRUARY, 1896, INT REPLY TO MR. DE3JARDINS' CRiriOISM OF THE BUDGET SPEECH. Mr. Speaker. — If I am neitker a merchant nor a man wlio was worked ?)ehiiiurpose of wounding tlie jnember for Montmorency whom 1 resjieet personally — I admire hia lal)oriousness, his talent for useless and unpiotitable studies : but, frankly, can tlie country place on the same footing the ]iractical knowledge in financial matt' ''s of tlie member for Montmorency and that of the present Treasurer of the ])rovince. I will go further and venture to enquire how can the lionorable member for IMontmorency be compared \sith the j>ast Treasurers who distinguished themselves in this House either on the one side or the other ? When the lion, member was a Ministerialist, he pushed his love of criticism so far as to even criticize the budget speeches of the Treasurers of his own party. How many times have [ not heard him and, in how many pages of this big book (Les Debats) can I not find the boldest and, perhaps, the most deserved con- demnations of the correctness and the honesty of the budgetary statements of the very men whom he supported. I have here, before me, his declaration against the honorable member for Sherbrooke, in which he said : " The inember fur Sherbrooke pn'etends that ■w'e are going to have during the present year a deficit between the ordinary rr^ceipts and expenses ; but this is a mistake. We will have a surplus of so many thousands of dollars ; " and it was useless for the Treasurer, who held the key to all the secrets of the financial situation, to assert that the year would culminate in a deficit, my honorable friend t*^ e member for Montmorency, was utterly skeptical and sought to prove by A plus B that the Treasurer was mistaken and that instead of a deficit there was going to be a surplus. When I rose, repeated tlie Treasurer's declaration which was true and moved a vote of non-confidence bec;uise instead ofa.suri»lus we were goini,' to have a deficit, my friend, the honorable member for Montmorency, voted ag liust my ])ro- position. He was quite willing to criticize the statements of the Treasurer in order to show that, in the matter of finance, he was an abler man than his chief, but he could not admit tiiat the statements of the Ojtpositiou leader were coirect. The spirit of contradiction in him was too strong, lie had first to contradict his Treasurer and then to contradict the Opposition leader — the result l)eing that after he had contradicted both, he launched out into the broadest self-contradiction and was proud of it. To-night, Mr. Speaker he has given us an example of this contradiction. I shall not folIo\/ him into all the details and I shall not intlict u[)on the House a speech of several hours. I hope to be brief enough to allow of the debate being closed to-night and of its not being finished too late, because, as there is a non- confidence motion in question, 1 trust the House will permit me to say, without any desire to use a threat, that it must be settled to-night. I would not like to leave it open to the Lieutenant-Governor to believe that between this and Monday we may be overthrown. I want to-morrow morning to be in a position, to assure the Lieutenant-Governor that we still possess tlie confidence of the members of this House (Applause). liut I have no desire to follow my honoralde friend through all his financial vagaries, through all the more or kws audacious sjfeculations to which he has treated us. Above all, I shall not begin by counting ujt the deficits which alarmed the province and attested the sorry results of the administration of our predecessors. No ; I shall merely take the liberty of calling your attention to a few ]ioints, which I shall try to make as brief and clear as possible. In the first place, allow me to observe, that the honorable member for ]\Iont- morency has badly chosen his time to try to frighten the country in regard to tlie dangers of our administration. It is at the very moment, Mr. Speaker, that we have settled the question of the Jesuits estates : at the moment that we have put an end to the reign of deficits ; at the moment that we have increased our revenues to the extent of over §600,000 ; at the moment that we have entered upon an era of the most intelligent and patriotic reforms ; at the moment that we have inaugurated the iron bridge policy which is such a benefit generally to the province ; at the moment that we have opened those colonization roads, which are no longer a source of speculation for dishonest men but a means of favoring the settler by enabling him to transport hia produce to the best markets ; at the moment that we are building coUcges in all the principal parts of the province ; at the moment that we are making special TT- "'"^ grants to favor the establishment of those commercial colleges which everyone is asking for and by which the entire country will benefit ; at the moment that we are opening night schools to give to our workingmen the benefit of a practical and intelligent education in order to elevate them, and to make of them useful citizens of their country — it is at this very moment that these charges are made. At the very time that we are seeking to lift the province of Quebec '^'it of the slough in which it has been stagnating for a number of years past ; at the very time that, like practical, serious men, we are striving to restore public confidence, to reassure honest people and to put an end to the party conflicts which have done us so much harm in the past ; at the very time that we are about to reestablish religious peace and to put a stop to the discords which these gentlemen had fomented and wliich they had succeeded in creating in the country, they wish to check our efforts and to block the wheels of progress in order to prevent us from terminating the great work inspired by our hearts and by patriotism. We are threatened with the electorate ; we are told that at the next elections we will be swept out. Yes, we shall be swept, as we have been swept in Joliette, Laprairie, Ottawa, liimouski, Quebec West, Three Rivers, Maskinonge, Megautic, Chicoutimi and Saguenay, in all the counties, in fact, in which there have been contests (Applause). We shall be swept — by whom ? By those, who have created the actuiil situation, by those who created the embarrassments of the time, by tliose who contracted the debt which is crushing us, by those who have aroused the war of races and creeds which is dying out at present, thanks to our policy of conciliation. We are going to be swept! By those, oue of whose leaders wanted to abolish the French langunga not only in the North West, but as a necessary consequence in all the provinces, in all the places where the French language enjoys the freedom of the city, (Applause). We are going to be crushed by the men who, in the House of Commons, proclaimed that we, the French in America, have no right to speak the beautiful language of our forefathers, and, as a consequence, who would refuse to Catholics separate schools in all parts of ihe Dominion ! We will bi swept by these men, wlieu two of our leaders in the Dominion, two of tlie most distinguisliel men of the country : Hon. Edward Blake, (Applause), and Hon. Wilfred Laurier, (Applause), delivered speeches which remain graven in letters of gold on the pages of the country's history (Applause) — speeches which bear the imprj.ss of the noblest and most generous sentiments. All who know Wilfrid Laurier know his great- ness of heart, know that he is a great patriot, who loves his race and his religion, who would die in the breach rather than consent to deny the tongue of his fore- fathers : but, perhaps, those who do not know Hon. luhvard Blake as we do will be surprised at the speech he made the other day, in which he declared that the r I English should not do to the French what they would not like to be done to them- selves, that the French Canadians were an industrious, sober and honest people, and that it was only by a miracle of devotion and patriotism that they had held their ground and preserved their language throughout all the difficulties through which they had been obliged to pass in America. But we who know him are not astonished. He could not have spoken otherwise. When these two men uttered such words as these, what was the leader of our fidversaries doing ? He could scarcely do more than stammer out a few words, placed as he was between two lires — the fire of his love of the Orangemen and the fire of his hatred of the French Canadians, It is at such a time as this that we are told that we are going to be swept in this province ! If these gentlemen are sincere, wliy do not they demand the immediate dissolution of the Legislature and they will at once get it. We shall go before the people, armed with the^e generous sentiments, after doing the most good we could and undoing all the evil possible, and how much harm have not our adversaries done ! We shall go before the people, Mr. Speaker, with confidence, satisfied that the people will give us their support and Avill sustain us with double the majority we have at present (Applause). But who are our assailants ? They are the men who created the debt which is crushing us ; the very same men, who, from 1874 to 188G, had notliing to show except deficits. They appeal to the public accounts, but the public accounts condemn them. Those public accounts are before us. They cannot pretend that they are falsified, short of having the courage to accuse the officers who signed them. If the accounts are false, then our officers are forgers. But those officers were not appointed by us, but by those gentlemen. Is it because they accustomed them to a system of falsification that they believe that that system continues ? I will not insult my adversaries by any such supposition, which would not be honest on my part, as I do not believe it. But if the men whom they appointed are honest, if they stated the truth when those gentlemen were in power, why should they not say so to-day, when their adversaries are in power. Why accept the * figures of these officers named by them, when those gentlemen were there to control them and why refuse them now when we, in our turn, control them ? They have not changed ; they are no more our friends now than they were at that time and they are as much the friends of our adversaries as they were then. The honorable member for Montmorency has endeavored to make a point out of what he terms our invention of the system of special expenses. You all heard him well. He cannot understand how an honest man like the present Treasurer who has spent his life in quietly but surely winning the fortune which he possesses and the confidence of honest people, could have invented so dishonest a system. And he exclaims in the accents of seeming conviction : how can you expect us to understand anything in the public accounts when wo see set down, among the special expenses, things which have never been heard of as special expenses. You have turned the public accounts upside down, so that thsycau no longer be under- stood. TJie man who says this is precisely the man who insisted only a few years since that the class of special expenses should bo maintained. And when his friend the Treasurer of the time refused to have a budget of special expenses, which he termed extraordinary expenses, he criticized him and told him, "bii' "^u understand nothing of finance ; you should have a special budget, an extraordinary budget, a budget of special expenses." This will hardly ba believed ; bxit here is the speech made by the honorable member on the subject in 1883 : " In laboriously going through the figures jnst submitted to the serious con- sideration of my honorable colleagues, I have noted, by no means for the first time, both in the budgets and the public accounts of the province, a want which should be supplied as soon as possible. Since 1874, the province has carried out certain works, which have cost considerable sums. We have erected buildings for the public departments at Quebec and for the Jacques Cartier Normal School at Montreal. Clearly, the expenditure for the construction of these buildings should not be counted among the expenses of the ordinary service of the government of the province. To use the phraseology of public finance, these are extraordinary expenses for extraordinary works. It is well known that the greatest and wealthiest countries in the world, those whose financial resources are the most enormous, have all adopted under titles which may differ in terms, but the idea of which is the same, the system of the division of the annual budget of ex- penditure into ordinary and extraordinary budgets. And why ? ChieHy, in order to avoid confusion and to throw as much light as possible upon the exposure of the financial situation, so that the taxpayers may the more easily understand and pass judgment upon it. Consequently, each time that I have examined the French and English budgets, I have been struck with the perfection with which they are prepared and which enables one, in a few minutes' study, to obtain a correct idea of the whole. And yet the budget of England ranges from i;425,000,000 to £450,000,000 and the budget of France, ordinary as well as ex- traordinary, exceeds three milliards and a-half of francs. " The Federal budget of Canada is also divided into ordinary budget and extraordinary budget under the head of works imputable to capital (Hansard 83, p. 529.) " I insist on the importance and even the necessity of this division, because my honorable colleagues must have remarked, as I have myself remarked, that, with the system followed, many persons, in public ^' .r ssions, knowingly or unknowingly, make altogether incorrect statements of : " financial situation of the province. Consequently, in the calculations which I shall submit to this House, I have constantly made this division of the provincial expenditure into ordinary and extraordinary expenses. This is a correct principle of finance, which is accepted everywhere else and which we should introduce and strictly observe in our Provincial accounts." (Hansard pp. 529.530.) -^WMua 8 1 Let us now remark how he uppHes his principles : You have heard the honorable member a few moments since tell us tliut certain items should not bo classed as sj)ecial expenses. Ho severely critiei/ed the Treasurer because he had entered, as special expenditure, the loan to the I'rotestaut Insane Asylum, Montreal. Hear him : " The eighth budget, that of 1874-75, shows a deficit of 867,909.27. But account must be taken of the fact that during this year the province loaned $50,000 to the proprietors of Beauport Asylum, which sum has br ntered among the expenses. An investment is certainly not an expense " ( ird, p. 530). It should be put in the special expenses. And when the honorable Treasurer places there 815,000 loaned to the Protestant Asylum, Montreal, he is guilty of heresy according to the groat financier of Montmoiency. Further on, he adds : " To obtain an altogether exact statement of this year's operations, the 816,000 for the public offices, Montreal, must be deducted from the ordinary expenses of the provincial service." . But the honorable member canies his pretensions much further. You will have remarked, Mr. Speaker, that in the public accounts before you for the year 1889, the sinking fund is entered as an ordinary expense. It amounts to 859,000 and the Treasurer has regarded it as an ordinary expense He has accordi'ngly placed it among the ordinary expenses — the expense; \ected, with the payment of the debt. Now, listen well to the a])plication of the honorable member for Montmorency's principles : " During this same financial year, Ave have paid 839,138.88 for the sinking " fund of the provincial debt the creation of which was begun for great works of " utility. This sum is rightly carried to account of the ordinary expev.rcs " because the instalments to the sinking fund are an aimunl and regular obli- " gation of the provincial treasury. But, although these ]mymonts are an " ordinary expense of the province, until the loans to which they are applied " are wiped out, it is not the less true that they constitute to the same extent " a reimbursement of the public debt, which they prooortionately reduce." (do p 531.) Further on : (do p. 531.) " Jacques Cartier Normal School, Montreal 843,521.90." These are not ordinary expenses." In the following year; — Jacques Cartior Normal School Montreal 86,605.70 (do p. 533). mm^^''f 9 These are not ordinary expenses. They are all extraordinary expenses, " Redemption of the debt ^1^03.34 (do p. 553.) Same application as for the preceding item. A;,'ain further on (do p. tu! 1.) " The ])rovince ])aid in 1881-82, for the permanent exliibition building?, " Montreal, a sum of 810,000. Assuredly, this is not an ordinary expense. " We will not have to pay 810,000 every year for these buildings. We have " givin this sum for the construction of buildings open t(i the great provincial " competitions of agriculture and industry. It is a generious contribution in "favor of those gre.at sourcpi of our national wealth. It does not follow that " tlie province is under the obligation of annually paying the same amount for " the same purpose. " On the night of the 8th to the 9th June, 1881, our good city of Quebec was " visited by a great calamity. A terrible conthigration destroyed in a few hours " one of the finest (juarters of the city and left thousands of persons without "shelter The Government desired— in the name of tlie province — to set " the example. It subscribed the sum of SIO.OOO towards the relief of the '• Quebec sulferers. This was a great act of charity, but it is not an annual " expense of the public service. " (do p. F34.) Now, only a moment ago, you heard the same man state that we .should not count as special expenses the 810,000 which we gave towards the relief of the sufferers by the St. Sauveur fire, the S'OOO to the Hull suflerersandtho 850,000 for seed grain. He is the same fmancier who now criticizes the statement of my honorable friend the Treasurer, contradicts him and declares that it in evident that this system of special expenses is aimed at deceiving the public and that it ■ violates all the rules of book-keeping l)y putting down these items as extraordinary expenses. He is the same financier — I say — who stated in eighteen hundred and eighty-three that the ten thousand dollars' grant to the Quebec fire sufferers and the other expenses just mentioned should be counted among the special and not the ordinary expenses. And the same financier, an instant ago, pretended that my friend the Treasurer had contradicted himself and forfeited the reputation which he had earned for himself in this House, this province and this city, by asserting in the most solemn manner possible that you, Mr. Speaker, and the members of this House should withdraw all confidence from such a man, because he had submitted a misleading statement, made erroneous assertions and repudiated the principles which he had formerly maintained in Opposition. He told you that the 850,000 for the purchase of seed grain should not be included in the special expenses. Yet this is the same man who approved the policy of the Conservative Treasurers when they placed among the special expenses the items I am about to read to you : I J ■ 10 " Eepayment to the Bank of Montreal of advances for seed grain : 1871-72 $28,050 1881-82 „ 7,700 1883-84 5,616 1884-85 20,030 So that the present Treasurer commits a contradiction, is guilty of a financial heresy in entering among the special expenses the $50,000 advanced last year for the purchase of seed grain, though that was just wiiot was always done before our time. You heard him (Mr. Desjardins) state that it was the present Treasurer who invented the special expenses and who, for the first time, entered as special expenses the advances for seed grain and yet this man approved the public accounts of his friends who placed among the special expenses the items I have juat mentioned as advances for seed grain. He told yon that it was the present Treasurer who invented this term, when these same advances were entered by tlie previous Treasurer as special expenses and the public accounts in his hands stated the very contrary. The hcinorable member has endeavored to make another point against the Government. And he did so almost with tears in his voice — if I was near hi:n I might perhaps, ixavo also found tears in his eyes — to try to show that the increase in the expeneliture was leading us headlong to ruin, and that wo have increased iho expenses by seven hundred and some thousand dallars, refusing to consider and deduct the item of the special expenses explained by the present Treasurer, who told hiii • the increase of the expenses is two hundred and some thousand dollars. He would not take this into account, but he grew alarmed and sou<{ht to alarm the House and the country by pretending that this increase was leading us to ruin, that it was unwarrantable, and that it was necessary to appeal to our patriotism and our intelligence to an'est so disastrous a movement. When he was going before the people in 1886, this, however, was hia language : " To refuse, under the futile pretext of a misplaced economy, to overstep the restricted limits of the provincial budget of expenditure as laid down at the start by the authors of Confederation, would be to fail in a sacred duty. The Conser- vative party, in charge of our destinies, understood its duty. It adopted the raihvay policy — this is why we have a provincial debt. " It would have been a crime to have reraainod inactive through fear of the responsibilities, when all around as we savv labor and c-apital working hand in hand to develop the resources of their provinces. It would have been a crime to liave done nothing to promote the development of a country in which we enjoy the greatest, the brightest and the dearest liberties." WA h*L ■,:P-wr 11 Thus, Mr. Speaker, ia 1886, when the debt was already over 320,000,000— a debt created by those gentlemen — when we had constant, permanent deficits, which were like a stain on our budget ; when we were imploring our adversaries to put, an end to these deficits, not by stopping indispensable expenditure or checking intelligent and necessary progress, but by arresting the squandering which was going on, it was loudly proclaimed that progress could not be arrested or blocked that we had to keep pace with the other provinces, and that we should not be afraid to take the responsibility of the increase of the expenses which were necessary, tut which we contended were not necessary. And lo-day, when every- one is calling for the reforms which we are carrying out, when we are doing three times as much as was done at that time and arc working to rapidly and econ mically dispose of all questions : when we are settling all that can be settled, when we have given [S5(/,000 to purchase seed grain in order to prevent the population from perishing through famine oi going into exile, when we are building railways with extraordinary rapidity, paying a hundred and some thousands of dollars more of interest on the debt contracted by our adversaries, opening free night schools for the education of the working classes, and expending 8463,000 to settle one of the most serious and dangerous difficulties, an effort is made to btop us, to criticize us, to condemn us and to refuse us the application of the principles laid down by our adversaries. Yet these principles are not and cannot be forgotten. But, if these contradictions emanated from a single individual, if they were the work of one man,- in his personal name, we miglit despise such madness and take no notice of it. It is in the name, however, of a great party as a body thiit they are made and with the encouragement of its applause. You have seen my friend the Opposition leader, enthusistically, applauding the statements and attacks of the member foi Montmorency; you have seen all his friends accepting the responsibility of his contradictions — contradictions which prove one thing: that when those gentlemen were in power, they thought they had a perfect right to incur any expense whatever on the pretence of progress, and to s