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OF-

J.R.STmTON,iM.P.F.

-ON-

THE FINflNGtS Ol 1116 PROVINCE,

Delivered in the Legislative Assembly,
Wednesday and Thursday, February 15th and 16th, 1899

The following is a more extended report
of the speech delivered by Mr. Stratton in
the budget debate in the Ontario Legisla-
ture :

Mr. Stratton, on rising to continue the
budget debate, was heartily applauded.
He said that in entering upon his contri-
bution to the budget debate, he desired to
offer his congratulations first to the Pro-
vincial Treasurer, for the clear and favour-
able financial statement he had so ably
presented, and to the Government, to
whose judicious and careful management
of our affairs the possibility of such a
grand showing was due. He also wished
to congratulate the House and the country
upon so magnificent a showing. It must
be exceedingly gratifying to both the
House and to the country that, after thirty
years of Liberal administration, after
most liberal expenditures upon necessary

services, it was possible to present, so ex
ceedingly favourable a balance sheet. It
must be concluded that the expenditures,
while they had been sufficient, had not
been excessive considering the undertak-
ings that had to be, and have been, accom-
jilished.

Referring to the previous speaker on the
Opposition side, Mj. Mathieson, it was re-
marked that the history of the past had
furnished great financiers and great finan-
cial critics, but none of the peculiar cali-
bre of the hon. member for South Lanark,
who for patient and persistent ingenuity,
for sinuous adaptabilfty to burrowing
among figures, seemea to be with-
out a peer. (Laugh tex). It was said that
figures would not lie, but under the
manipulation of the financial figiu-e-head
of the Opposition- at a wave of the sword
of the gallant colonel— a whole regiment
of figurative Ananiases stood on parade. It
was difficult to decide which to admire
most,

THE FINANCIAL ABILITY

of the honourable gentleman or, to quote
the language of the leader of the Opposi-
tion, used in an address at Whitby, the
"colossal cheek and monumental gall"
that permitted him to arrive at the won-
derful conclusions he arrived at. Mr. E.
Stone Wiggins, the great scientist and
sage, had a good deal of the honourable
member's sanguine trust ir the adaptabil-
ity of figures to meet an demand that
might be made upon the*. . Mr. Wiggins
had demonstrated not long since, beyond
doubt, that he had performed the wond
ful mathematical feat of squaring thi?
circle, but competent mathematicians had

easily shown that Mr. Wigp;ins* figures were
fallacious. The financial critic of the Op-
position had been engaB;ed in squaring the
provincial financial circle for a great
many years. He had been ham-
mering away with commendable dili-
gence upon financial statements and pro-
vincial finances and, according to his
claim, has demonstrated the fact that,
financially, the province was going
to the dogs. By wonderful juggling
with figures, with pathetic self-delusion he
had piled up deficits and i)lunged the pro-
vince into a hopeless quagmire of bank-
ruptcy, and if the condition of the country
had been anything like he sought to show,
if his splendid deficits had been anything
but airy financial phantoms, the province
would have been sunk under a load of debc
that would have covered it several fath-
oms as the waters covered the face of the
great deep. It was doubtless the military
side of the hon. gentleman, which led him
to sympathize with the great Napoleon
who accounted for his Waterloo by the
fact that he had on that occasion defeated
the English three times, but they

DID NOT KNOW ENOUGH

to know it. In a similar way, according to
the showing of the honourable member for
South Lanark, the provmce had been
repeatedly ruined, but the province, under
the efficient management of the Govern-
ment that havi ruled it for the past thirty
years, had marched serenely along pain-
fully unconscious of its ruined condition.
The province goes on paying its way,hand-
somely attending to every public need,
developing the resources of the countrj',
caring for the helpless and afflicted, edu-
cating the young and stiffening the back-
bone of the country,agriculture, and yet we
still had "a shot in the locker." (Applause)
Yet the honourable gentleman figures out
what he calls deficits, that we were half a
million short in the current year's opera-
tions, while as a matter of fact we had
half a million to our credit in the bank.
The honoarable gentleman might air his
delusions in the House, but let him take
his stand before the bank vault where our
money is deposited, and he would find that
he could not talk away $4.50,000 in cash,
charm he never so wisely. (Applause). Mr.
Stratton went on to point out that what
we wanted in the conauct of the affairs of
the province, on the part of both Opposi-
tion and Government members, was prac-
tical politics, not fine-spun theo-
rizing. As the honouraDle the
Provincial Treasurer remarked in his
budget speech, the country did not take
Mr. Mathieson seriously. He had been
preaching the dreary gospel of despair for
years, he had been evolving theories in
the face of facts and if a hundredth part

of what he had from time to time declared
had been true, the sheriff would long ago
have been

ADMINISTKRING THK AFFAIRS

of the Province. What the honourable
gentleman hoped to gain by such a course
was as di/Hcult to understand as his
financial philosophy. The honourable
gentleman had another Napoleonic trait,
the great general beat his enemies in
detail and the honourable gentleman pours
in a great deal of hot shot in the way of
detail. His versatility was admirable— he
could split a hair or fell a pine with equal
facility. He could jump from the discuss-
ion of fractions of dollars to millions of
dollars with surprising agility. Ho was
not satisfied with cramming the public
accounts with unnecessary details, but
must have the noses counted in the public
institutions t© see if the employees were
there that were mentioned in the public
accounts. This suspicious spirit was un-
worthy of the honourable gentleman. Into
all business transactions the element of
trust entered largely -everything could
not be reduced to record. We could not
consider every Government employee a
thief and set a guard over him. T e desire
of the honourable gentleman was without
doubt to reach this side of the House.
Then his financial criticisms would be
justified, for i nstead of imaginary deficits
we should then have real, live, tangible
deficits. And his desire to reach this side
of the House was evident from the con-
cluding portions of his speech, in which in
some respects he struck high ground for a
minute or two. But with all the fine
sentiment he uttered, his real desire to
cross the House cropped out. It was very
natural that he should feel such a desire.
The children of Israel, after wandering for
forty long years in the wilderness, were
anxious to

f.^TTLE DOWN TO A REGULAR DIET

of 'lilk and honey. So the honourable
gentlemen opposite, after wandering for
30 jrears in the wild jungles of Opposition,
amid blasted pines and blasted hopes, are
naturally becoming hungry and developing
ravenous appetites for the sweets of office
and longing for the day of entering the
promised land. If those on the Govern-
ment side of the' House had the honour-
able gentleman's facilities for dreaming
and raising ghostlv deficits, they might
imagine they saw the Opposition grouped
•n some mount— say Mount Pisgan—
gazing with longing eyes upon the
promised land, flowing with che milk
and honey of office, and by a little
further stretch of imagination they
might see the financial critic of the
Opposition, waving his baton and leading

his

'•§,i

iBxaif

bf til

LanI

forcl

genf

one I

refei

Notl

the

nasi

time declared
ould lonf? ago

FFAIRS

e honourable
such a course
tand as his
honourable
oleonlc trait.
I enemies in
itleman pours
I the way of
dmirable —he
e with equal
k the discuss-
) millions of
ty. He was
g the public
details, but
in the public
iployees were
in the public
pirit was un-
itleman. Into
3 element of
'thing could
■^e could not
employee a
I. Ti e desire
was without
'■ the House.
s would be
nary deficits
ve, tangible
ich this side
om the con-
in which in
P'ound for a
all the fine
al desire to
It was very
3h a desire,
ndering for
rness, were

k^R DIET

honourable
iderin^ for
Opposition,
hopes, are
developing
ts of office
itering the
he Gorern-
le honour-
dreaming
ley might
n grouped
Pisgan—
upon the
the milk
a little
ion they
of the
d leading

his colleagues in chorus in the lusty sing-
ing of the good old Methodist hymn : —
'* O, how I long to be there ?" (Laiighter.)
Mr. Stratton said he did not propose
lexamining in detail the financial criticisms
of the honourable gentleman fi-om South
Lanark. These had been eifectively and
forcibly dealt with by the honourable
gentleman from Algoma. But there were
one or two points which he wished to
refer to more fully than had been r'one.
Not only in the House but in the country
the statement was made that the province
has millions of debt, yet we are in the
comfortable position of receiving this year
^272,414.48 as interest on moneys due
Ontario held by the Dominion and $31,-
646.37 interest on other investments. On
Thursday the honorable member for South
Lanark stated that "of the $272,000 re-
ferred to there was at least some $140,000
odd that

WAS NOT PAID AS INTEREST,

but was increased subsidy granted by the
Dominion in 1884. The money, he tsaid,
was called subsidy in the act of 1884
and it could not therefore be interest."
Mr. Stratton went on to point
out that when Sir William Mere-
dith was leader of the Opposition
16 discussed this subject more
ntelligently, and said that the sum of
: ^2,848,000 was an act of generosity by Sir
Leonard Tilley and his friends, but it was
rather an unusual proceeding for the
Dominion Government to give Ontario a
grant of $2,848,0(X) unless it was
a settlement of some claim— which in point
of fact it was. As to a name
it was immaterial what the money was
called, but in reality it was a settlement
of Ontario's claims of sums due the Pro-
vince by the Dominion. Now, how did we
get this $140,000 ? Was it not in the old
way ? Was it not a pa\ment of interest in
lespect of "capital owing"? That was
what the Act passed by Sir Leonard Tilley
in 1884 says it w \a the principal yielding
the $142,400. (Hear, hear.) No one says that
one dollar of the principal has come to us
—stronger still, Mr. Mathieson says we
cannot get it, but in the same breath he
asserts that we get in some way or other
$140,000 odd, the $2,848,000 being mysteri-
ously connected with it. Could not the
hon.gentleman find the missing link ? Had
it never dawned on his mind that 5 per
cent, on $2,848,000 is $142,400 ? Therefore
"the $140,000 odd" is interest on amounts
due Ontario by the Dominion, as this side
of the house has all along claimed. (Hear.

Coi. Mathieson— It is subsidy all the

me.

Mr. Stratton— My hon. friend cannot be
prevented from calling it what he chooses,
but

INTEREST IS NOT SUBSIDY

and subsidy is not interest, but what is of
most importance to the people of the pro-
vince is, that they get the interest half-
yearly, and if my honourable friend will
turn up the blue Dooks he will see that the
province receives from the Dominion
$71,200, half yearly, as the interest on
this sum." Mr. Stratton continuing said
that Mr. Mathieson claimed that we owed
the Dominion $2,000,000, but it was, in
fact, a much less sum, The statement,
however, showed it as deducted, leaving
the provincial surplus at $5,001,613.19.
But if the honourable gentleman would
not accept the $2.()00,(X)0 as paid, when it
was already credited, he must admit that
the surplus should he seven mill ions instead
of five millions. Now he wishes to borrow
money to pay off two millions, which,
from the fact of its being credited to the
Dominion, the province in reality
does not owe. The treasurer's state-
ment showed that the province
had already deducted this from the
amount due the province by the Dominion,
which being already paid, why
should we borrow money on sixty years
debentures, bearing 3 per cent, interest, as
the honourable gentleman suggested. We
did not, Mr Stratton pointed out, require
to borrow money. We had $450,000 in the
banks, and we had our old Parliament
buildings site, and the proceeds of uncol-
lected Crown Land balances, which

WOULD MORE THAN PAY OFF

Mr. Matheson's amazing $2,000,000 lia-
bility, leaving our $2,848,289 intact,
which at the rate of five per cent,
payable half yearly, would in forty
years amount to $5,698,000, or at 3^
per cent, $3,702,400, or a difference in forty
years of $1,993,000 It was always thought
that the wise msu came from the east, but
in the case of the honourable gentleman
for South Lanark, in regard to financial
matters, this opinion would have to be re-
vised. Every dollar received by the pro-
vince .vas trust money, and there was no
difference between the trust funds at
Ottawa and the funds controlled by the
l']xecutive at Toronto— they were t^^ust
funds administered for the benefit
of the people. (Hear, hear.) The to-
tal expenditure for last year was
$3,803,081.35, and was $343,000 less than
anticipated, so that the Legislature knew
a year ago, when the money was appro-
priated, that the income would fall short
of the estimated expenditure. At the
same time it was known that the Pro-
vince had $605,850 cash in the bank, and
that it would be necessary to draw upon
that to meet the expenditure, and the re-
ceipts being short $150,000 the bank bal
ance was reduced by that amount to meet

the expenditure of the year. Both sides of
the House were responsible for this course
of action. The eHtiniates deliberately asked
^209,0(X) more than anticipated receipts,
yet hon. gentlemen claim a deficit for the
year, when the excess of expenditure over
receipts

SIMPLY MEANT A RKOUCTION

of the cash on hand. The hon. member for
South Lanark in condemning the Govern-
ment was condemning himself and his
colleagues, (Hear, hear) for, with the ex-
ception of $47,0fK), thev approved of the
whole expenditure, and the condemnation
of one member meant the condemnation
of all, as upon full deliberation the esti-
mates were adopted by the House. (Ap
plause.) Then if they desired to discuss
matters from a fair standpoint they would
take into consideration any extraordinary
expenditure during the year, and they
would find that stich unusual expenditure
would include the Consolidation of the
Statutes, $44,00(); the grant to the
Russell rtre suflerers, $5,0U0 ; a simi-
lar grant to the British Columbia
fire sufferers, $2,500, and the general
elections $ll)0,()00,making in all a sufficient
sum to account for the difference com-
plained of. (Hear, hear.) Where did the
Dad financing come in ? The best finan-
ciers bring their receipts and expenditures
as close as possible, and the foregoing was
about as close as these could be brought in
financial operations involving such large
sums of money. The placing of $128,000
of annuities was complained of, but these
assisted in the retirement of $2.50,000 of
railway certificates and annuities, and
that was the policy decided upon by the
House several years ago, and there was
nothing extraordinary about it. The Oppo-
sition had been talking buncombe with
regard to our finances. They did not them-
selves believe what they say. Their sup-
posed facts were fancies, and the railway
obligation they complained of was incurred

UNANIMOUSLY BY THE HOUSE

for the benefit of the people. Who had
reason to complain ? Nobody was com-
plaining, but honourable gentlemen oppo-
site, who wanted a theme for fault-finding.
The public want economy, but they don t
want parsimony. They want liberal aid
granted to develop the resources of the
country. They don t want buncombe reso-
lutions condemning expenditures that are
absolutely necessary. A number of reso-
lutions were moved in concurrence last
year by some honourable gentlemen appo-
site, that attacked necessary and proper
expenditures, and could only be justified
by the fact that a general
election was approaching. As a result of
these resolutions, where are the gentlemen
who moved them? We miss the gen)al

Eresence of Messrs. Willoughby and
[ems, of Messrs. Mag wood and Meacham,
of Messrs. St. John and Langford and ot
others who might be mentioned. They
were "talking to the gallery," and the
gallery " turned them down." (Laughter.)
Speaking in reference to the receipts in
relation to the total expenditure of
$3,80;i,081, Mr. Mathieson had ingenuously
argued that if we deducted the amount of
drainage debentures, the $(K),0(M) " bor-
rowed '■ from the Dominion, the receipts
from Common School lands, the amount of
annuities, the bonus on timber, amount of
sale of Toronto Asylum lands, etc., last
year's deficit woulci be swollen to over
$500,000. To show the fallacy of such a
line of argument, Mr. Stratton more
extensively applied Col. Mathieson's style
of reasoning. He pointed out

IF WE DEDUCTED THE SUBSIDY

and special grant of last year,$], 196,872.80;
if we deducted last year's receipts of in-
terest on investments, $304,(XK).89 ; if we
deducted Crown Lands receipts, $1 112,-
582.16 ; if we deducted the receipts for
Algoma taxes, law stamps, licenses,
education department, sale of lands,
$440,040.97 ; if we deducted casual
revenue, $116,568.96 ; if we deducted
succession duties and drainage works as-
sessments, $214,'306.91 ; if we deducted
drainage debentures,tile, sale of annuities
and Agricultural College refund, $168,-
807.16; if we deducted all these we should
have a deficit equal to the total amount of
the expenditures, which was an absurdly
misleading way of argument. (Laughter
and applause.) The real question to con-
sider was, were the estimates now before
the House prepared with a proper regard
to economy. He (Mr. Stratton) believed
they were. There was a decrease in every
department but four. If honourable gentle-
men opposite wanted consistent grounds
of complaint they should complain of this
reduction of expenditures. It was natural
for them to complain, for where was the
evidence that any Conservative govern-
ment under the canopy of heaven had ever
reduced expenditure? (Applause.) Mr.
Stratton pointed out that the estimates
showed decreases in civil government,
legislation, public institutions, immigra-
tion, hospitals and charities, maintenance
and repairs of public buildings, charges on
Crown lands and miscellaneous expendi-
ture, aggregating $138,495. The increases
were education, agriculture and public
works. Mr. Stratton indicated how we
spent our moneys in 1898. We spent upon
public institutions $815,744, or $2,235 per
day ; on education $735,098, or

OVER $2,000 PER DAY ;

in hospitals and charities, $184,402 or
$500 per day ; on Agriculture, $206,688 or

lloufj;hby and
111(1 Meachatn,
iR'ford and oi
;ioned. They
ery," and the

(Laughter.)
18 receipts in
xpenditure of
d ingenuously
the amount of
$()(),(XK) "bor-

the receipts
the amount of
)er, amount of
ids, etc., last
ollen to over
icy of such a
tratton more
thieson's style
It

SUBSIDY

r, $1,196,872.80;
receipts of in-
1,(K)().89 ; if we
leipts, $1 112,.

receipts for
nps, licenses,
lie of lands,
icted casual
we deducted
age works as-

we deducted
e of annuities
refund, $168,-
lese we should
>tal amount of
IS an absurdly
it. (Laughter
lestion to con-
ies now before
proper regard
tton) believed
jrease in every
durable gentle-
stent grounds
tnplain of this
It was natural
yhere was the
rative govern -
;aven had ever
)plau8e.> Mr.

the estimates

government,
ons, immigra-
1, maintenance
igs, charges on
eous expendi-
The increases
e and public
3ated how we
Ve spent upon
, or $2,235 per
Qr
)AY ;

, $184,402 or
re, $206,688 or

J 540 per day ; on Administration of
ustice, $413(5,276 or $1,110 per day ; on
Colonization Roads, $107,450 or $a00 per
day. There was no evidence to show that
these amounts were not honestly and
economically expended. If the sums pro-
posed to be expended were too much it
was the

DUTY OF EVERY REPF ESENTATIVK

in the House to state his views and work
for their reduction. But it was impossible
to please honourable gentlemen opposite.
If the expenditure WrtS increased they
complainca and complaint was made
if they were decreased. The country be-
lieved that the expenditures of the prov-
ince were honestly and economically made
and the return of the Government to
power was to be regarded as evidence that
che people were well satistied and that
they had practically said to the Govern-
ment " Well done, good and faithful ser-
vants,— you have done well in the past ;
we will trust you in ♦^he future."
(Applause.) Turning his attention to Mr.
Hoyle, the member for North Ontario,
Mr. Stratton congratulated him upon the
fluency of his address, which he had be-
gun by congratulating the financial critic
of the Opposition upon the fail-, candid
and general character of his criticism. It
was indeed very general, so general in
fact that he jumped at conclusions,
ignoring facts in support of his
conclusions. The honourable member
from North Ontario had continued his ad-
dress with an interesting chapter on
"Action," impressing in the beginning of
his speech a character, which he consist-
ently maintained to the close. In his fic-
titious explanation of the trust funds, the
honourable gentleman said that Mr. Con-
mee had much to learn, but Mr. Stratton
feared that if he depended upon Mr. Hoyle
for enlightenment on the subject, he was
doomed to remain in ignorance. (Hear,
hear !) The honourable gentleman from
North Ontario, in discussing the Common
School fund left the House a liberal choice
in the matter of name— it was first called a
"fiction," then a "fund," then an "obliga-
tion."— a specimen of hair-splitting that
would make even Mr. Mathieson himself
look to his laurels. (Hear, hear). Mr.
Hoyle might deny that he called this fund
a ' 'fiction " ana put the responsibility
upon Mr. Blake, who, as counsel, was do-
ing a little special pleading, but Mr.
Stratton assumed that Mr. Hoyle

WAS IN SYMPATHY AVITH

Mr. Blake's contention, and should accept
the responsibility. If this fund Avas a
" fiction " it was a fiction of the right des-
cription, for who had even heard before
of an interest-bearing fiction ? (Hear,
hear and applause.) A fiction

that yielded to the Province jH'O.OOO
a year was the kind of fiction we
wanted; "and Mr. Speaker," said Mr.
Stratton, "if you can load the shelves of
the parliamentary library with works of
fiction of this sort you will be conferring
an inestimable benefit upon the Province.
(Applause.) The hon. gentleman t'so ob-
jects to the $10,000 appropriated for arbi-
tration expenses. In a matter of thi.s kind
where millions of dollars are involved, the
best interests of the Province demanded
that only the best available counsel should
be selected. In no other connection could
economy be more emphatically misplaced
— a moment of weakness or slackness on
the part of a cheap and inefficient counsel
might represent incalculable loss to the
Province. If th«» Hon. Mr. Blake hi.d not
been employed on the occasion referred to
by the hon. gentleman for South Ontario,
he would not have made the remark
quoted, and Mr. Hoyle would have been
robbed of his subject for a speech.

Mr. Stratton said that he or any other
business man would adopt the course of
going to an expense for counsel and ad-
vice in proportion to the magnitude of the
inl-erests at stake. He, or any other busi-
ness man, would do the same in their pri-
vate affairs, and the same reasons

JUSTIFIED THE PKOVINCT^: IN GOING

to the expense of $10,000 in securing several
of the best counsel for a most important
and protracted arbitration. It had been
fortunate for the province in the past that
we had Provincial Treasurers who had
estimated these matters at their true
value and had employed competent coun-
sel, with results that compensated for the
expenditure involved a thousand fold,
(Hear, Lear.) The honourable gentleman
had apparently worked off part, at least,
of an election campaign speech. In a burst
of eloquence he had depicted the terrible
burdens Ontario was labouring under. The
bonded municipal indebtedness he placed
at fifty-one millions, the cost of legislation
at three and a half millions, municipal
taxation, annually, twelve millions, and
Ontario contributed to customs fifteen
millions annually, and the fee system was
responsible for a million Mr. Stratton
pointed out that in respect of the bonded
municipal indebtedness (although there
was in reality no such thing) and the
municipal taxation, these were something
that the Legislature could not control,
except to the limited extent that was

Eossible through the restrictions that had
een placed upon the borrowing powers of
municipalities. The cost of legislation,
by which the honourable gentleman evi-
dently meant the governing of the pro-
vince, was not at all excessive. With regard
tp the customs duties imposed by the

Dominion Government, tliat was some-
thing which this Legislature had no power
to deal with, and > 'hich Mr. Hoyle and his
party bad forced upon the country in the
shap* of excessive protection duties. With
regeurd to the fee system, that

WAS HETTI,ED UV THE PF:0PI.E

long ago. With reerard to the provincial
expenditure, if that was considered
excessive, when the estimates were
broutrht down that was the time for the
Opposition to object. (Hear, hear.) They
should put their objections in specific form
and not sit silently, consending to the
expenditure adopted, and then afterwards,
when it was too late, find fault for the pur-
pose, apparently, of making party capital.
(Hear, near.) Mr. Hoyle nad made it
plain that it was not to the expenditures
on education and agriculture that he
objected, but to the results. This was a
singular objection for anybody with the
slightest practical knowledge of
these subjects to urge. How were
we going to set down a
specific statement of the results in either
of these branches ? If a farmer sowed a
certain amount of seed on an acre of
ground he could get specific results- a
yield of so many bushels and pounds, but
if he applied a fertilizer to increase a crop
how was he going to estimate the exact re-
sults, although he might have the best of
evidence of beneficial effects ? As to the
results in education, we know that our
people are educated better than the people
of almost any oth«r country in the world.
(Hear, hear.) Was it not satisfactory
proof of good results that the graduates
of our universities who came through the
Public and High Schools

WERE GIVEN PROMINENT POSITIONS

in the colleges of the United States? Was
it not a proof of the benefits resulting from
the administration of the Department of
Agriculture that Ontario had gained the
position^of being the best producer of agri-
cultural products in the world, that her
cheese and other products had no superior
in the British markets ? (Hear,hear.) The
hon. gentleman did not point out any
improvements that he would like to see
effected. He only vaguely complained
of unsatisfactory results. He would sur-
round the Minister of Education with an
advisory board. The minister had now an
excellent advisory board. He had the
benefit of the opinions of educational ex-

Eerts, of school inspectors, etc., etc., and
e had the Legislature as an advisory
board, and what more did he need ? As
well might advisory boards be provided for
the other cabinet ministers. Whs.t we
wanted was a responsible ministe* re-
sponsible to the House, and through the
Efouse to the people. We wanted no sys-

shirk his responsibility
shelter himself behind i

tem whereby a Minister of Education could

to Paliamenfc and
an advisory board.
(Applause.) Complaint, too, was made of
excessive examinations, but there were but

TWO EXAMINATIONS THAT

could be rogan'ed as compulsory— that for
teachers' certificates; and the entrance ex-
amination was not compulsory except the
pupil desires to reach a certificate through
the High School. It was the policy of tue
Department to interfere as little as possible
with trustees in the domestic management
of their schools. Mr. Stratton said he was
glad the honourable gentleman approved
of something and spoke in praise oi Prof.
James' text book on Agriculture, which,
Mr. Stratton believed, it was the intention
to authorize if it had not already been
done for use in the Rural Schools. This
book the honourable gentleman looked to
for the education of the farmers' sons and to
help the farmers pay off the mortgages on
their farms. While the teaching of agri-
culture in the schools was to be commf^nd-
ed, the Government had taken the

READIEST AND MOST PROPER WAY

to help the farming industry. Public and
elementary schools had long been in ex-
istence, but it was only now that
technical branches were being intro-
duced. It would be a long time
before the leaching of agriculture in
the schools could have any practical effect
upon farming operations. The system of
the Government was a practical one in
relation to agriculture. Through the
medium of the Farmers' Institutes and
the regular system of bulletins, and the
Experimental Farm the special knowl-
edge needed was made at once available to
the farmers for practical application.
(Hear, hear.) Complaint was made by the
Opposition critics tnat our surplus assets,
were fast disappearing. We nad heard
the same cry for the past thirty years. In
regard to the surplus the honourable mem-
ber had asserted that the contention of
the Opposition was that the only proper
surplus was such as that ahown oy Sand-
field Macdonald, " who had a genuine
cash surplus " of over three million dollars.
The Opposition objected to the sale of
timber, yet the boasted Sandfield Mac-
donald surplus was derived chiefly from
that source and if Sandfield

HAD PAID HIS OBLIGATIONS

his surplus would have been gone. This
was information that was in the possess--
ion of every school boy and one
would have thought that it
had penetrated to North Ontario.
The honourable gentleman had made com-
parisons of expenditure. If he wanted to.
continue his "comparisons" he had only to,

lucation could
'aliament and
ivisory board.
, was tuade of
there were but

THAT

sory— that for
} entrance ex-
)ry except the
[Icate throoch
5 pohoy of the
itleatj possible
! mana(;cment
in said he was
nan approved
•raise or Prof,
alture, which,

the intention

already been
Schools. This
nan looked to
irs' sons and to

mortgages on
ching of agri-

be commi^nd-
jn the

)PER WAY

r. Public and
g been in ex-

now that
being intro-

long time
jn:"iculture in
ractical effect
'he system of
oticai one in
rhrough the
istitutes and
tins, and the
3ecial knowl-
e available to
application.
4 made by the
urplus assets
e had heard
ety years. In
curable mem-
Kontention of
only proper
own by Sand-
d a genuine
illion dollars.
I the sale of
.ndfleld Mac-
chiefly from

iTlONS

gone. This
the possess-.
y and one
that it
th Ontario,
id made com-
be wanted to.
e had only to*

investigate, and he would And out that
from 180H to 1870 the increased percentage
of expenditure was greater than in any
corresponding period since, except the
years in which the Parliament buildings
were being erected. Severe criticism had
been directed against the expense of the
administration of justice, and against the
increased cost. Mr. Hoyle wanted the
judicial districts enlarj?ed. Would he have
an enlargement of the judicial districts of
Nipisslng, Algoma and Muskoka? Mr.
Hoyle object to junior judges— that there
was not work enough for two judges in
some districts. He should recollect that
when they were appointed he did not
object- when his objections mights have
had more weight— when his political
friends were in power at Ottawa. If he
had objected then he would have shown
some consistency in entering his protest
now If the people were not n ore heavily
burdened with taxation than through the
judges, they would not consider them-
selves very heavily taxed, though Mr.
Hoyle complained that the people
of Ontario were taxed thirty-one
millions a year, a circumstance for
which this House is not responsible.
Mr. Hoyle laid considerable emphasis upon
the anxiety of the Government supporters

TO COMPARE THE COST

of maintaining Ontario public institutions
with those of the several States, greatly
to the advantage of Ontario, but he as-
serted that a comparison of the cost of the
executive in Ontario with large States
would show Ontario's expense as excess-
ive. Mr. Hoyle asserted that the cost of
the executive, the cabinet ministers, in
Ontario, was !p35,000, while in the State of
New York, the cost was only f 31,000, and
in Michigan $7,400. Mr. Stratton pointed
out that the comparison was in every way
unfair and misleading, because the respec-
tive administrative systems were totally
diverse, and it was impossible to institute
anything like a fair or intelligible compari-
son. (Hear, hear.) All that could be done
was to compare the general expenses
of the states in the matter or the
salaries of departmental officers as
against Ontario. For instance, the work
done in Ontario in the Provincial Secre-
tary's office.was In New York State,dlvlded
between forty and fifty highly paid
officials, very few of them drawing less
salary and some of them three times as
much as the corresponding Ontario
officials. Mr. Stratton then submitted a
list relating to the officials of New York
State, of wnlch the first seven were elect-
ed by the people. The salaries of these
seven aggregated $31,000 as mentioned by
Mr. Hoyle, but that gentJenian did not

point out that there were over twenty
other highly paid officers who were

REALLY THE liXKCUTIVB

officers of the State and attended to mat-
ters similar to those performed by the
several executive departments of Ontario.
Some of these officials have salaries as
large in some cases as Cabinet Ministers
and the aggregate of their salaries is

? 230,000, not including the salaries of a
ost of assistants and clerks, who receive
in many cases five times the salary of the
highest departmental official in (Jntario.
It is no wonder then that the total an-i
nual expenditure of New York State isover
twenty millions of dollars. (Applause.)
" We don't want that kind of expenditure
In Ontario. That is not the way our econ-
omy has been practised." (Applause.) The
honourable gentleman from North Ontario
preached a very nice, little, moral sermon
on the I'air, and candid criticism of pro-
vincial questions, but in view of his mis-
leading, unfair and utterly impossible
comparison of New York state with On-
tario, his high morality and his elegantly
rounded periods became as "sounding
brass and a tinkling cymbal." (Hear,
hear.)

With regard to the policy which has
been adopted by the House in the matter
of restrictive legislation, affecting our tim-
ber resources, It would be necessary to pro-
vide a source of revenue to take the place
of that temporarily decreased by the appli-
cation of the patriotic manufacturmg
policy introducea by the Government and
adopted by the House.

No one disputed the fairness of the prin-
ciple of levying succession duties. The
whole Anglo-Saxon world does so. It was
the true principle that till large estates, en-
joying the protection of the laws, should
pay at the death of the owner a fair per-
centage as a slight acknowledgment of the
protection afforded, and when, as in
Ontario, the results of such payments are
devoted exclusively to assist in the main-
tenance of charitable Institutions, the
principle of succession duties becomes ad-
ditionally defensible. (Applause.) There
was no revenue more just, more popular
and less burdensome than the one paid on
the succession of property. This prlnciplei
admitted, Mr. Stratton asked why all cor-
porations should not be brought within
the operation of a similar duty and bear
their share of the expense of the protec-
tion and other conditions that make their
successtui operation possible? Corpora-
tions endeavoured to evade all such re-
sponsibility as soon as they are incorpoif-.
ated, and some gf

[■

THESE' CREATIONS OK THE I.K(USLA.TIVE
POWER

act AS If they wore superior to the creator.
(Hear, hear.) Ah a rule the first aim of
these Krcat bodies in to escape municipal
or other taxation, and in this way obtain
exemption from taxation in another form
than that voluntarily conceded to manu-
facturina industries, and it would take the
Hou.se all its time to circumvent all the
dodges adopted by these corporations to
evade paving. Mr. Stratton said he had
no hostility to these institutions, for he
was connected with several of tiiem him-
self. He believed that ail banks, insur-
ance companies— fire and life— trust com-
panies, telegraph, telephone and electric
railway companies should pay some-
thing for the great privileges they
are enjoying at the hands of this
House. tn regard to financial cor-
porations, Mr. Stratton said he held,
speaking for himself alone, that the^
snould pay duty upon their paid up capi-
tal and their rest account. With regard to
this question of revenue it was only when
we come to a situation that necessi-
tated a temporary provision for increased
revenue that we felt impelled to look to
what other countries are doing in this
matter. If we did so we should discover
that in nearly all the States of the Union

THE CHIEF HOUHIK OF IlKVENUE

>vas a tax levied upon local municipalities
and in the State of Indiana this was al-
most the only source of revenue. In the
States of New York, Connecticut and
Massachusetts corporation and inheritance
taxes formed a very large part of the
revenue. The same condition prevailed in
Pennsylvania also. Now in Ontario, Mr.
Stratton pointed out, we had not yet be-
gun to exploit for revenue. The bounty of
Providence had endowed us with great
natural resources which yield a large
revenue, but without full development are
not all suflHcient sources. When these
sources of revenue ceased we should have
to look for other revenue. Mr. Stratton
said that apart from sources of revenue
which he would refer to later, a study '^'
the sources of income of the various
American States showed to a surprising
extent the sources of income the various
States had in the way of direct taxation :
The State of Massachusetts received last
year $9,500,771, about three times the total
revenue of Ontario, made up from State,
Corporation, Savings Bank, National
Bank, Excise Tax on liife Insurance, In-
surance Companies— Fire and Life, Collat-
eral Legacy, Liquor Licenses, Fees for
Corporation Certificates, Hp-vvkert and
Pedlars' Licenses, and the Massachi setts
Hospital Life Insurance Company. Only

three of these wore a similar source of
revenue to some of that of Ontario.

▲ i/lanco at New York State showed the
aggregate receipts during the year
amounted to aVnost $.'i;{,()0(>,(XK», over
seventeen and a half million dollars being
direct revenue upon corporations, only
three sources of revenue being similar to
ours. It was also to be observed that the
Manhattan Uallwa;v and the New York
Central Railway paid almost

HALF A Mil, I. ION DOLLARS,

while the Bank of Montieal paid nearly
«:«),000 and the Bank of Commerce f 10,(X)0,
The revenue of the State of Connecticut
for a similar period amounted to two and
ahalf million dollars, all levied by direct
taxation, with the exception of the Col-
lateral Inheritance Incomt. The State of
Ml'ihlgan received five and a half million
dollars. One half of this amount was
from direct taxation upon municipalities,
and the other from railroad. Insurance,
telegraph, telephone and express com-
panies. The State of Texas had nn Income
of three million dollars, one million being
from sales and leases of lands
which would be similar to our
Crown Lands Revenue. In this State
almost every kind of occupation
except thni of farmers, printers ana man-
ufacturers is made to pay revenue. Even
the lawyers are caxeo, .-vud this is about
the only state that seemed to get even
with the learned profession, and although
the speaker did not recommend the adop-
tion of the United States system, still, he
thought, we might do worse in Ontario
than to receive some direct advantage
from the legal profesNion. The receipts
for the state of Indiana amounted to seven
and a quarter million dollars, three and a
half million of this sum being direct taxa-
tion, the balance coming from benevolent
institution fund, state debt sinking fund,
educational Institution fund and school
revenue fund. The state of California had
total receipts of about eleven million of
dollars, eight millions being direct taxa-
tion received from county treasurers. Rail-
road companies paid a million and a quar-
ter, so that a superficial glance at the
revenues derived by these states men-
tioned will show that almost every state
in the Union has had

A SYSTEM OF DIRECT TAXATION

for many years. The honourable gentle-
man from North Ontario was very anxious
to go to the United States for a model of
an economical administration. Was the
policy of taxation just referred to,
whicn prevailed in the United States,
what Mr. Hoyle wished to serve for a
irodel in Ontario? To amplify the com-

Sarison which the honourable gentleman
ad instituted, comparison might be niade

iliir source of
Unturio.
ate showed the
ifjf the year
{,(KK),(KK», over
11 (lolhirs beinK
orations, only
iiiK similar to
tcrved that the
he Now York

LLARS,

il paid nearly
imerce <J10,(K)0.
)f Connecticut
id to two and
ied by direct
bn of the Col-

The State of
\n half million

amount was
iTiunicipalities,
id, insurance,

express corn-
had an income

million being
es of lands
ilar to our
In this State
if occupation
ters ana man-
fvenue. Even

this is about
id to cet even
, and although
lend the adop-
^stem, still, he
rse in Ontario
!ct advantage

The receipts
anted to seven
s, three and a
ig direct taxa-
>m benevolent
sinking fund,
d and school
California had
'en million of
g direct taxa-
asurers. Rail-
m and a quar-
^lance at the

states men-
st every state

lXATION

arable gentle-
I very anxious
or a model of
3n. Was the
referred to,
nited States,
serve for a
ilify the com-
le gentleman
light be made

with the cost of the state biiildings of New
York at Albany, which had cost between
twenty and twenty-live millions and were
uot yet llnished, with the Parliament
bulldlngH of Ontario, which were llnished
within the specKled time without a dollar
corruptly spent and without a rotten brick
or a crooked nail in the whole structure.
(Applause.)

Mr. Matheson— Has the honourable

fjentleman ever heard that the floor of the
ibrary was not safe i

Mr. Stratton— Oh, my honourable friend
th'nks many things are unsafe. He thmks
that our annual surplus of half a million
is unsafe. (Laughter).

Mr. Stratton, went on to point out that
we in Ontario ha 1

EXCKl'TIONAL NATURAL RESOURCES

that have enabled the Government to
maintain the institutions and develop the
resources of the countrv without placing a
dollar of burden directly upon the people ;
and this province could be conducted on
similar lines in the future to that of iiie
past were it not deemed wiser to adopt a
greater policy of development and a more
patriotic policy of Ontario for Ontarians,
and to secure the necessary revenue re-

?|ulred to compensate for the loss accruing
rora the restrictive legislation of last year.
Howr^er, this matter might be more fully
I. ■ ied when the bill making provision
for the expected loss of revc.iue came up
for consideration. xVlr, Stratton said that
the Speech indicated the possibility of a
decreased revenue from Crown Lands,
which arose from a decreased demand from
what was for many years our largest
market, as well as from a decreased cut,
resulting from the restriction which the
Government and the House almost
unanimously, with a patriotic regard for
the provincial interests, saw fit to have
adopted. That was a policy which public
opinion strongly endorsed and still
approves of. The highest test of patriot-
ism was a willingness to pay for it. This
public spirited policy had oeen adopted
and it was impossible to rece.ie from it.
(Hear, hear). The policy of Canada for
Canadians and Ontario "for Ontarionians
in this regard must prevail. (Applause.)
It might lead t« decreased revenue, but it
would conserve interests of paramount
importance and above all it was right. At
any rate the deficiency must be met. Two
sessions ago the speaker had pointed out
that our largest source of revenue, which
is of a fluctuating nature owing to the
quantity cut and the demand of the trade,
was bound in the lapse of time to grow
smaller and that it could not be depended
upon ; that it would

SOON HE NEOEHSARV

to cast about for new sources of revenue.
The expenditure would, as the flevelop-
ment of the P'ovince expanded, neces-
sarily be greuter. We were now confront-
ed V ith tlie doul)le problem of not onlv
conserviuji but strengthening them and
wo must provide revenue for an increas-
ingly expansive and necessary public ser-
vice. There were many services that
could not 1)0 neglected without a corres-

fonding injury to the interests concerned.
t was not possible that our charitable and
other institutions could be efHciently
maintained at less cost, for they were
now managed at a less cost than in any
other civilized state. At i general glance
it 'vas not easy to see where a reduction
could be nmde. On the other hand it
might be necessary, and, he hoped to
show before he had done, justi-
fiable, to greatly increase the expendi-
ture. He would endeavour to show that
in the matter of permanent interests, in
order to ellect proper results a greater ex-
penditure would be advisable. Though
what he might have to suggest might not
(!'-"^tly or appreciably increase the rev-
enu ;t wjuld, he believed, create ccndi-
llon^ I aat would, while materially advanc-
ing tie conditions of the province, leaf! in a
'irge degree to the solution of the pro-
blem <.r prov^^'^iug "the sinews of war."
Mr. Strat*^! i said that this brought him to
the co.u;ideration of what seemed to him a
vpvy 1 iportant matter. At the present
tLiiie there was a disposition abroaa in the
W(,-.d to seek closer relations by nations
possc-^ing reciprocal conditions of natural
alliance. In the broad sense the bitterness
of national feeli*!,'* in notable instances,
was, all would recogxa/e, becoming less-
ened, and

A TENDENCY SHOWN

in the line of a general desire for cosmo-
politan ppaeeful relations. In view of
this it seemed to the speaker that we in
Ontario, we in the House, should by
mutual consent drop the bitterness of
party spirit which frequently largely pre-
vailed, which antagonized both sides of the
House and, to a large extent, paralyzed
their energies, or diverted them into a
direction not only fruitless of results, but
an actual source of injury to provincial in-
terests. In the mad wrangle of party war-
fare important interests were lost f'ght of.
It rwas time, Mr. Stratton thought,
that the petty intensity that marked party
feeling should be eradicated. Those on the
floor of the House, Conservative and
Liberal alike, were responsible for the
development of the resources of this pro-
vince, responsible for the faithful dis-
charge of the trust committed them by
the people. We boasted, with good rea-

son, of the great and almost infinite
natural resources of this province, and no
member of the House will be guiltless of
breach of trust if, through unworthy de-
votion to petty party squabbles, he inter-
fered with the magnificent opportunities
presented for the improvement of the
province- of developing the great natural
resources of the prov>, ce. Mr. Stratton
said he did not altogether deprecate the
party spirit ; it was as proper as it was
mevitable under our system of govern-
ment. But it should be "kept in its proper
place— in a place subordinate to the great
mterests of this country. Hs remarks
might not meet with universal approval,
but he was sure that

EVERY RIGHT THINKING

citizen would endorse them. In this re-

Sard the speaker felt he was justified in
emanding on behalf of the best interests
of the province, a cessation of petty party
warfare— in demanding that the great
abilities of both sides or the House, should
f'.nd a higher employment than absoluce,
cibsurption in parish politics -that the
ability and energies of both sides of the
House should be unitedly directed in the
main -though as to detail there might be
differences of opiaion-to the development
of the illimitable natural resources of
Ontario. So that great as had been our

Srogi-ess in the past, proud as was our con-
Ition at present it would bp as noth-
ing compared to the greatness that
would come from the harmonious co-
operation of our public men. He appealed,
and he wished it, be it understood, in his
personal representative capacity alone, to
both sides of the House, to drop to their
proper subordinate place, petty politics,
and to unite as one man in the adopt-
ion of a big, broad, progressive policy,
looking to the development of our un-
surpassed material resources. All great
movements required that the public should
be educated up to the standard of appre-
ciating them and movements that repre-
sented a criKsis in public affairs demanded
that a government, no matter what its
political complexion, should have a strong
support on such questions, and it devolved
upon members to educate their constitu-
ents on such a subject so that the House
and Government supported by the people
on such a policy as that suggested would
be able to carry big things through. In
regard to the policy spoken of he was not
the man to outline such a policy, but such
a policy was possible when there was an
honest union of intention, an honest aim
to so broaden our provincial policy so th.it
the only goal in view should be the acoori-
plishment of the best results. Let suci
a policy be decided upon -let It not be th <

policy of one party nor the other, let it be
the policy of the

UNITED REPRESENTATIVES OF THE PEOPLE,

Let it be so broad that no honest citizen
of whatever political stripe could not sub-
scribe to it with his whole heart. Let it
be the policy of the country with the cen-
tral idea, that whatever else eomes, the
united energies of the people and their
representatives shall be devoted to its
advancement, with the clear eut under-
standing that whatever party interest con-
flicts with its enforcement shall go to the
wall. Let S'lch a policy be a sacred thin|^
that no pi '\ne hand shall touch. It
shall belong to no party, but be the
property of the people as the Interests to-
promote which It is adopted are the
property of the people. Put such a broad
provincial policy upon so high a plane that
party warfare shall rage as fiercely as It
will in lower regions, it must not touch
higher issues ofpolicy to which both and
all parties are committed. Mr. Stratton
said he no practical or even academic out-
line of sucn a policy to submit to the
House ; he only urged the acceptance of
the principle with full confidence that the
combined wisdom, the combined patriotism
and the combined earnest endeavour of
both parties would be able to evolve a
policy, which, intelligently applied, would
make our past progre8s,great as it has been;
that will make our present position, proud
as it is, mere suggestions of the possi-
bilities which may result. As before re-
marked, Mr. Stratton said he spoke only
his own mind on these questions, ana
though some of the phases of such a policy
as he had suggested were embodied m the
policy of the present Government, he ap-
pealed for a wider and more dependable
support than even the best party govern-
ment, under generally prevalent condi-
tions, could hope to secure and retain. He
yvould aim at

SOMETHING MORE PERMANENT

than the most loyal partlzau— (using the
word In Its best sense)— support which ai>y
government, no matter what its complex-
ion, could command. In this connection
Mr. Stratton pointed out that in Great
Britain Whig and Tory fought earnestly
over domestic politics, out wnen the peace
and Interests of the country were threat-
ened, when the crisis came, both sides
forgot their party politics and stood
shoulder to shoulder in defence of the Em-
pire. (Applause.) A provincial policy that
could command such unanimous suppoit
was one in the best interests of the coun-
try. We wanted large questions consid-
ered on their merits, a condition that had
not unfortunately prevailed in the past.
The Opposition had not on seme occasions

take

have

Gove

prop

one

mine

and

)ther, let it be

THE PEOPLE,

lonest citizen
Bould not sub-
heart. Let it
with the cen-
e eomes, the
•le and their
ivoted to its
ir eut under-
r interest con-
lall go to the
sacred thinj;^
11 touch. It
but be the
interests to-
;ed are the
such a broad
t a plane that
fiercely as it
it not touch
ich both and
VIr. Stratton
oademic out-
bmit to the
cceptance of
2nce that the
5d patriotism
mdeavour of
to evolve a
plied, would
IS it has been:
sition, proud
)f the possi-
s before re-
1 spoke only
Jstions, and
3uch a policy
todied m the
lent, he ap-
dependable
.rty govern-
ilent condi-
retain. He

L.NENT

-(using the
; which any
s complex-
connection
; in Great
b earnestly
n the peace
ere threat-
botli sides
tnd stood
of the Em-
policy that
18 suppoit
the eoun-
ns consid-
that had
the past,
i occasions

[taken such broad views as they might
: have taken. The Engledue phase of ths
Government's policy was a great and
proper step in the direction of developing
one of our m»st important resources, the
mineral. Yet the leader of the Opposition
and his friends bad not accorded that
support which, having regard to the great
issues at stake, they might have done with
perfect consistency as regards their posi-
tion in the HoUse. The main question was
largely lost sight of. Anything but a
patriotic attitude was taken by the Oppo-
sition upon the Boundary Award matter,
which involved the possession of millions
of aeres of land, which would, with the
adoption of a big policy of development,
yield in the future millions of revenue.
(Hear, hear.) Strong opposition was given
the project of the Wabigoon pioneer farm,
which results had very amply justified.
The opposition objected to the appoint-
ment of a Clerk of Forestry, an oflftce asso-
ciated with our most important interest.
Opposition was also given the appoint-
ment of a Road Commissioner, whose ser-
vices and the results flowing from them
would save millions to the country. (Hear,
hoar.) These were all projects looking to
the development of the country, and upon
which there should have been no two
opinions except as to matters of mere
detail, and the policy for which appeal
had been made should involve matters of
common agreement looking to the opening
up of our country. At the root of all trade
development lay the question of trans-
portation. No other subject was at pres-
ent receiving so wide and earnest atten-
tion, and deservedly so. Access to our
immense undeveloped resources was the
first condition of rendering latent wealth

A LIVE COMMERCIAL FACTOR.

This, of course, meant new population,
which involved in turn demands upon
the industrial resources of the older
portions of the province, and thus
the circle was completed. This transport-
ation problem, apart from the question of
moving our Nortliwest crops, is a tremend-
ous one. This province was geographically
so situated as to receive the greatest
amount of benefit from the improvement of
transportation facilities represented by
the deepening of our canals, and the con-
struction of such works, as the Parry
Sound Railway, the proposed Ottawa and
Georgian Bay Canal, the Trent Waterway,
theproposed short lineconnectingGeorgian
Bay and Lake Ontario, etc. Though these
were mattern of Dominion responsibility,
they were matters of the deepest concern
to this province. In passing, Mr. Stratton
paid a tribute to the government of Sir
John Macdonild for the construction of
that great trftns-contlnentftUraflic Unk the

Canadian Pacific Railway, though the
details involved were ground for differ-
ence of opinion, and he went on to add a
word of warm praise of Hon. J. Israel
Tarte, Dominion Ministerof Public Works,
who was doing more than any one past or
present for the improvemnt of the great
transportation facilities of the country.
(applause.)And the transportation question-
needed every attention,e8pecially when we
remembered that Ontario was paying
yearly in ocean freights over one-
and a half millions of dollars more than her
American competitors, by wny of Boston
and New York, on the same extent and
character of products. This province has-
inexhaustible stores of wealth distributed
in profusion over wide areas and of the
most varied kind. Upon the development
of these depended the prosperity of the
older sections, and development depended
in the first place upon facilities of ingress
and egress. Facility of transportation was
the touchstone of tne highest commercial
civilization, and in this view the extension
of railways became the most important
feature of a big provincial, non-partizan
policv. We must tap the heart of the
resources of our outlying districts, if we
would get the benefit. Our wild lands—
those which are arable — should be peopled
with settlers, and with railways and
other communication turnished, the
problem of development would be
greatly simplified. Capital would see
its way clear to engage in the
development of our great resources
in farming lands, timber and minerals.
Of these resources, there was practically
no end. Beyond the Height of land there
was a vast unknown land— but unknown
only in detail. There was, according to
the report of Mr, Niven, land surveyor, on
the slope of Hudson Bay, a belt of land
120 miles deep,

RICH AGRICULTURAL LAND

that doubtless extends across Ontario and
Quebec to Manitoba. If this were opened
and peopled the result upon the industrial
interests of older Ontario would be incal-
culable. Then there was in addition the
wide and fertile Temiscamingue and
Rainy River districts. If these great
areas were thrown open to settlement by
means of railway communication they
would become tributary to older Ontario
and would demand her industrial products
to the great improvement of every line of
commercial activity. We were told that
our timber was fast disappearing, bui that
was beyond the fact. Tnough in the past
this policy has been properly pursued of
disposing of our timber on a revenue pro
ducing basis, rather than allow it to be
destroyed by fire or natural decay, Mr,

S ■

1 1

Stratton was sure that taking our whole
timber area, with what has been cut for
commercial purposes, there was at present
as ^reat a value if not bulk of timber ex-
istiuK as there was when cutting first
began. The natural growth of timber over
millions and millions of acres could com-
pensate for an immense amount of dimi-
nuti n by actual cutting.

It has also been said that we were sell-
ing our timber as though it was grown for
another purpose than to be cut and used
in some way. It would surely be the
height of folly to let it stand and decay or
burn up. It is wiser to sell the more
valuable timber to be removed bv the
lumberman and tuus assist the farmer in
clearing his land for general agriculture.
This has been the policy, and large tracts
of land have been opened up for settle-
ment, possibly some areas have been
settled upon that had better been left in
timber, but in the main the method of dis-

Eosing of the pine timber in this province
ad not only produced a very large revenue
year by year, but had been of immense
benefit to the hardy pioneers, who have
carved farms and homes out of the forest.
And our timber is by no means gone.
There are still immense quantities of white
pine to be cut, and we have one of the

MOST EXTENSIVli SPRUCE FORESTS

in the world. In the Temiscamingue
country, around Lake Wahnipatae and
and Lake Nepigon, and farther west lie
large tracts of pine still unsold, while over
the height of land will be found a great
deal more, besides the great quantities
under license, still uncut upon which dues
are still to be collected. Of the 147 millions
of acres comprising the province only about
23 million acres are sufficiently settled to
have some form of municipal government,
and though a large portion of our posses-
sions lie in an unkindly latitude, it was
probable that there was a very small area
that did not contain in paying quantities,
under favourable conditions, important
deposits of mineral or other wealth. It had
been the practice to regard our white pine
as our only valuable timber for general
commercial purposes, and in the early his-
tory of our country the mistaken senti-
ment existed to regard timber as a natur-
al enemy of the settler, to be destroyed
ruthlessly by fire. But it seemed to the
speaker that our timber resources were
capable of utilization to an extent that
cannot be appreciated without exhaustive
investigation into their extent. In the
process in years past of clearing the now
cultivated acres, there had, it is safe to
say, been enough fuel wasted by Ire to
olear the soil of it, to make charcoal to
smelt the iron for the construction i f the
war navies of the world. In the earl ' his-

tory of this country the exports of ashes
(potash) derived from the destruction of
our original forests, were fifty per cent,
greater than the exports of wheat. In the
ten years from 1832 to 1842 ashes to the
value of nearly six millions of dollars were
exported to England. What an incalcul-
able waste of wood that represented ! If,
instead of being burned to ashes, the wood
that cumbered the land had been convert-
ed into charcoal what smelting operations
would have been possible I In this idea
seemed to be the germ of a new policy to
apply to our hardwood timber to be re-
moved from our arable lands. If it were
made a condition of settlement that all
wood removed in clearing land, not other-
wise profitably disposed of, were to be con-
verted into charcoal, and if transportation
facilities were extended, the hardwood
that now goes to waste absolutely, would
not only be a source of revenue to the set-
tlers, but would assist in solving one aspect
of the mining problem. We not only want
to preserve and increase our forest growth
but

TO MAKE THE BEST USE

of that which it seems wise policy to con-
vert to commercial purposes. Our timber
is our great national heritage, and there is
hardly a tree that grows but can be con-
verted to some commeicial use. Though
our present crop of white pine should be
cut away, that does not exhaust our tim-
ber resources. The recuperative powers of
nature are tremendous. Pine will grow
again, and is growing throughout the pro-
vince where the ground is not cultivated.
Large areas unfitted for farming, from
which the original crop has been removed,
and on which a new crop of pine is now
growing, have been, and are now being,
set aside under the Forest Reserves Act,
and with fair management long before the
old crop is gone from the province, a new
one on these reserves will be ready for the
axe ; and it will be very valuable.

At present our most productive asset was
in the matter of timber — white pine— and
while the circumstances mentioned have
caused a diminished provincial income
from this source, there are other timbers.
The Government wisely foresaw the com-
ing importance of spruce, for since 1892 it
has been reserved by the Crown. We
should lay our plans to make a rich harvest
of our spruce areas. Spruce is gaining in
demand by leaps and bounds, and beJfore
ten years Ontario will probably have a
corner on spruce on this continent, and we
should lay the ropes to give Ontario every
cent of profit from the exploitation of our
spruce areas, from the stump to the news-
paper. (Hear, hear.) It would be wise, it
seems, to insist that all manufacturing
operations in the conversion of spruce
from the wood into the paper web should

(orts of ashes
destruction of
ifty per cent,
vheat. In the

ashes to the
)f dollars were
b an incalcul-
resented ! If,
hes, the wood

been convert-
ng operations

In this idea
new policy to
ber to be re-
). If it were
iient that all
id, not other-
^ere to be con-
ransportation
he hardwood
)lutely, would
le to the set-
ing one aspect
not only want
forest growth

USB

policy to con-
Our timber
, and there is
b can be con-
ise. Though
ne should be
LUst our tim-
iive powers of
Qe will grow
hout the pro-
ot cultivated,
rming, from
een removed,
pine is now

now being,
leserves Act,
3g before the
>vince, a new
ready for the
ible.

ive asset was
;e pine— and
tioned have
icial income
her timbers,
aw thecom-
since 1892 it
Jrown. We
rich harvest
s gaining in
I, and before
ably have a
lent, and we
ntario every
ation of our
to the news-
d be wise, it
nufacturing

of spruce
web should

be performed in Ontario by Ontario work-
ingmen and operatives. (Applause.) The
^eat paper making material of the future,
in fact of to-day, is wood. Of all the
woods for this purpose

SPRUCE IS HY FAR THP: IJEST,

and Canadian spruce, because of its pecu-
liar fibre, is more valuable than that of
any other country. Immense establish-
ments for the manufacture of wood pulp,
very properly encouraged bv the Gov-
ernment, have recently been established
at Sault Ste. Marie and Sturgeon Falls,
using large capital and employing many
men. Yet, their product, large as it will
be, is a drop in the bucket to what is year-
ly imported into Great Britain alone. In
1897 Great Britain imported 38;i,;304 tons of
wood pulp valued at $9,700,000. Of this
amount Canada sent her only 28,873 tons,
of the value of about $700,000. Norway
sent the larger quantity, but as the better
quality of our pulp is likely to make up
for the extra freight charge there is no
reason why we cannot supply the bulk of
the British market in wood pulp as we
now do in cheese. Aside from the British
market we hold the key of the situation,
30 far as this continent is concerned. The
consumption of spruce for wood pulp in
the Vnited States is enormous, and it will
be only a few years before they will have
to come to us for pulp to supply their paper
mills, but we should arrange that thev
come in vain. We should decide to sell
them our paper, but not one stick of spruce,
not one pound of pulp. (Applause.) We
have motive power going to waste all over
the country. We can and must manufac-
ture everything A^e can, must get as far as
possible beyond the raw material. The
same methods of wholesale cuttmg that
characterized American lumbermen are
employed by the pulp men, and in a very
few years their spruce timber will be gone,
with no provision made for a new crop.
The near approach of the extinction of the
timber and pulp supplies in the United
States, and Canada s independence of
them, has at last begun to dawn upon our
cousins over the border, and if the Joint
High Commission, now about closing its
labours in Washington, fails to make a
reciprocity treaty it will have at least
served the useful purpose of convincing
our kinsmen that we can get along very
well without them if we choose to do so.
In this conneotion tbp spenkf r pointed oat
that the American lumbermen who did
not want Outario logs had

▲ LAROER AND STRONflER " PULL "

«rith the Senate than the few American
lumbermen who had been Retting our
lofrs for their mills on contlRuous shores
and in oonsequenoe of the resulting ob-

struction to trade we must look to see our
trade diverted to other channel?. The
speaker hoped to see it diverted. We bad
learned by experience that there is a mar-
ket in Eogland for almost everything we
have. It was a little more trouble to get
to that market, but once there it was better
than the American. If the Americans
wished to play the hog or shut us out, we
must meet them in the world's market and
beat them in other things as we had done
In cheese, (applause.) It must be admitted
that building up this trade would take
time, and in the meantime our rerenues
might suffer. But before the House as-
sembled again it was possible that we
should be able to load 14 foot vessels and
run them to England without breaking
bulk. Of course in the carrying of grain a
14 foot vessel could not compete with a 25
or 30 foot vessel, but it is yet to be known
that lumber cannot be crrried more cheap-
ly In a 14 foot sailing vessel— with a crew
of four or five. The opening of our canals
to 14 feet promised to help the lumber
trade considerably and combined with
other thinga demonstrated that we can
get along without our American cousins.
They might " out" us now, but they might
be made to pay dearly for renewing the
acquaintance. The Americans had an-
tiquated notions of Canadians derived from
50-year-old school books and till they learn
to know us better by a little bitter trade
experience It would be best for us to
establish ourselves in a better market.
(Applause.)

Another great Interest that should be a
prominent feature of the great policy
suggested was our mineral interest. Ot
course ocular demonstration of the extent
and value of our mineral deposits was not
as easily available as in the case of our
timber areas, but there was no doubt that
if the full truth wi>re known the minerals
of the Province of Ontario are as great, it
they are not a greater, natural asset than
our timber resources. Nature performs
no purposeless work and the great
stretches ot inhospitable rock, plentifully
distributed, are the safe deposit vaults of
untold mineral wealth. We only want the
key to unlock them— only need the com>
binatlon to make them available for our
purposes and the purposes ot the world.
In a general way the

KEY TO OUR MINERAL DEPOSITS

is a golden one— capital. In regard to the
development of our mineral resources
progress is gradual, owing to the lack ot
capital, and until mining properties are
opened up so as to allow ot large bodies ot
ore being mined cheaply the volume ot
production must naturally be limited. But
advancement is steadily being made and
results are full of encouragement. Gold

I II

areas are enlarging and during last year a
number of properties in Ontario were
proven to be valuable. lb appeared to be
the case that most of the ore was low

S'ade i yet it was all— except in one region,
astings county— free milling, and was
capable of being worked at a good profit if
right methods were adopted. The best
paying gold mines in the United States
were those of the Homestake group in
South Dakota, where the yield was not
more than $4 per ton. Its supplies of
water were drawn from a distance of 11
iniles and wood fuel costs ^8 per cord. Yet
the Homestake paid last year $636,000 in
dividends, and in the last twenty years it
had paid over $7 000,000. Five or six years
igo its dividends did not exceed 9150.000 a
year, but as the result of new and
economic methods of treating the orrs the
dividends advanced to $256,000 in 1894, to
1344,000 in 189&, to 9375.000 in each of the
next two years, and $636,000 last year as
already stated. la Ontario our mining
men were largely without experience, and
If it is the case that our ores were low
grade it was very important that the best
methods should be introduced to mine and
mill them so that the gold may be won
at the lowest possible cost. To the
speaker's mind, we should haye a policy,
generally accepted, that it is the duty of
the government of the day, to procure
this information, so that every miner and
mill owner should have the advantage of
it. The result would doubtless be that

RICH RETURNS WOULD ACCRUE

to the country, far outweighing the neces-
sary expense involved in procuring the in-
formation referred to. We were all inter-
ested in the mineral develrpment of our
province, and no better service to enter-
prise could be rendered by any government
than to show how capital may win the
largest possible earnings. It was evident
also that one way to the speedy settlement
of our northern districts was to build up a
successful and profitable mining industry.
There was no other branch of the business
80 fall of attractions as gold mining. We
can't get too much gold— there is no fear
of overproduction, and every ounce of it
that is won can be sold witibout the help of
a commercial trayeller or a middleman.
By making gold mining profitable by
proper methods we had all the natural
conditions— we make gold mining popular
and population follows, creating demand
tor agricultural produce, which means the
settleasent of our agricultural areao, which
in turn become centres of consumption of
the industrial products of older settled por-
tions.

There has never been a time, it la said oa
good authority tsince the nickel and ccpper
mioM of Onlarlo have bean opened ap ttwt

they have been so busy or prosperous as
now. One company in the Sudbury Re*
gion employ about WO men and Has a year-
ly pay roll of more than 9300,000. The
great superiority of the American battle-
ships as shown in the war with Spain last
year, has demonstrated to the world the
value of nickel steel in the manufncture of
armor plate, and to this,perhap8 mare than
to any other cause is due the present activ-
ity in our nickel mines. But copper ores
have also largely increased in value
owing to the enlarged use of
copper as a transmitter of |eleotrioIty,
and we are only beginning to see the uses
to which electric energy may be put as an
efficient agency in the development of in-
dustries. It therefore needs little foresight
to

PREDICT A. •RE4T FUTURE

for our nickel and copper mines of the Sud-
bury country, where both metals are found
contained in the same ores. If, however,
a practical method can be found tor saving
the iron as well as the nickel and copper
in those Sudbury ores there can be no
doubt whatever ihat a great future awaits
us in the works to be underraken, especial-
ly with the invaluable resources we pos-
sess in our water powers. It is claimed
that the secret of so treating the Sudbury
ores as to save the three metals has already
been discovered, and if this is the cane we
may look for great developments. In re-
gard to iron Mr. Stratton said that, to his
mind, It was a mistake to attribute the
great prosperity of the American iron trade
to protection. It was rather due to the
presence of vast quantities of Iron ore In
the Lake Superior country, which was
water-borne at nominal cost bo m«>et the
coal of Pennsylvania, Ohio and Illinois.
We had as good ore as our neighbors, ex«
aotly, it ifl said, the kind that E igiand
wants. With 14 foot canals we miotic ex-
port our richer ores and perhaps be able to
make re-haudling at Montreal pay. Once
in the British market it would be a mere
question of perfecting our methods of min-
ing and handling. The flourishing smelting
works at Deseronto and Hamilton use per-
haps nine-tenths of American ore. Capital
had not yet taken a fancy to our iron ore
and there were questions of transportation
and Incidental oonvenlencies that affected
the development of our iron deposits. Cor-
sundum was another mineral which recent
exploration shows that we posavst in
great abundance. In Peterborough county
as well as in the adjaoant oountlps of
Hallburton and Hastings and In Renfrew
there was an area of several hundred
square miles of corundum-bearing lands.
The nie of corundum as an abrasive, inde-
speneable In the metal working artB,lB well
koowD, for next to Che dianond It is the

bar
tail
flft
be I

vp'

pos
but
in
pro

8kil

prosperous ai
e Sudbury Re-
and hAs a year-
9300.060. The
mertcan battle-
with Spain last
the world the
manafHctureof
baps more than
e ptesenb aotly-
^t oopper ores
eei in value
^ed use of

of leleotrioity,
to see the uses
ij be put as an
lopmebt of in-
i little foresight

PUT0RE

ines of the Sud-
tetals are found
. If, however,
9und tor Having
[el and oopper
Here can be no
t future awaits
raken, especial-
)urae8 we pos-
it is claimed
ig the Sudbury
bals has already
is the cane we
ments. la re-
lid that, to bis
attribute the
loan iron trade
ler due to the
of Iron ore In
7, which was
t to meet the
I and Illinois,
neighbors, ez«
that E taland
we mi»<bb ex-
laps be able to
lal pay. Once
lid be a mere
ethods of min-
bing smelting
nilton use per-
I ore. Capital
our iron ore
transportation
8 that affected
deposits. Cor-
1 whicb recent
^e possess In
orough county
b counties of
d In Renfrew
reral hundred
tearing lands,
ikbrasive, Inde-
Dg arts,Ia wall
mond It Is the

hardest substance in nature. But con-
taining as It does more than fifty
fifty per cent, of aluminum there should
be a poasibllity of using it as the oreof that
vr'uable and useful metal. Mr. Stratton
BS i he did not assume to speak with any

Sosltive knowledge upon such a subject,
Ht he was told that there are difficulties
In the way of recovering aluminum by any
process at present known, but suienoe or
skill, which as a rule,

HAD NEVER BEEN BAFFLED

In the pursuit of its researches into the
workings of nature, would if a fair chance
was afforded, be able to overcome the
difflouliies in the separation of corundum
and aluminum and work out a practical
and economleal method. In view of the
Immense eoonomio importance of alum-
inum and the developments that have
been made in its production one might be
justified in insisting upon the necessity of
some practical steps being taken to sim-
plify the process of its production Much
has been done in this direction and more,
he was sure, can be done. During the
ten yeara ending with 1897 tbe total pro-
duction of aluminum in the United States
had risen from 19,000 pounds to 4,000.000
pounds. At the same timn the price per
pound paid dropped from ^.42 cents per
pound to 37^ cents. If, in that time
with only the incentive of the ordinary
commercial reward, so much advance had
been made what might we not expect from
an elaborate and definitely directed at-
tempt to solve the problem (hear, hear).
This was a matter of such immense im-
portance that he felt the Government
would be warranted in departing from its
usual course in dealing with it. We have
schools of science which are liberally sup-

Eorted by public grants, and it appeared to
im that the services of their professors
might be requisitioned to find out a way to
solve this metal-working problem. There
are doubtless some works whicb our state-
endowed universities and schools might
do besides the not very elevating one of a
daily round of lectures to tell what some
irealiy capable and original mind found out
long years ago. We want advancement ;
we want to keep In step with the require-
ments of our time and countr jr ; we want
to find out some new and useful things,
and not merely to mark time by doing over
again in various ways what has already
been done many times by otheM. But this
matter of the

UTILIBATION OP CORUNDUM

as an ere of aluminum is so full of large
.psjsiblUties for us that, speaking for him-
self, Mr. Stratton said he would not hesi-
tate to take an entirely new departure to
-discover a method. He would not anly ask
oar own scientists to study tbe problem.

but would invite the competition of the
world's men of science. He would offer a
premium to the Inventor of an economio
process, subject to conditions in the inter-
ests of the province— $5,000, $10 000, 920,-
000, or 9SO,000 if need be,— confident in the
belief that if the process was discovered
tbe Industry which could be established
with the help of it would reward us a
thousand fold. Mr. Stratton said there
was another interest in which he wished
to enlist the sympathy of the House. He
referred to our fisheries. As all were
aware Ontario's supreme and exclusive In-
terest in these had baen conceded, and
this circumstance placed another great
responsibility upon the representatives of
the people. As in regard to our other
great resources, an aggressive policy in re-
gard to our fishery interests should be
adopted, keeping in view that whatever
commercial or revenue profit might be
derived from the fullest development of
our great fisheries should accrue, and
accrue alone, to the people and to the pro-
vince of Ontario. In tbe broad sense, both
In regard to this as well as other great
interests, we should make " all fish that
comes to our net" and our care
should be that everything possible Is
brought to our net. He felt strongly upon
tbij subject. We all admit that the natural
resources of this province are practically
unlimited. And what has baen done
during the hundred years that cover
the period of settlement of the country
to make them available? In regard to
minerals we had barely touched the
fringe ; there was a great work to be done
in the interest of the people. We have
in the past been too greatly divided on
party lines, and in the intensity of the
struggles such a division begets, we lost
sight of greater things. " We might be
politioians but let us," aald Mr. Stratton,
" first of all be patriots, placing tbe good of
cha country before the advancement of
party." It was on this ground that the
speaker appealed for the union of both
political parties in this House— to unite
upon a large, broad comprehensive policy
that shall have for Its main object the
rapid development of the general Interests
already referred to. We were certainly
public spirited enough to unite on
some such policy that shall not be
tbe policy of any party but the

Bolioy of the province. "Let us map out »
road road which all may travel; we shall
have left enough of minor matters to
squabble over." But where our country is
concerned let us

HATE A BIO POMOT—

an unchanging policy, so that no matter
how we divide on party lines on lesser mat'
tecs, we shall be as one man In regard to

>,;*

,lMu

tbe main conslderatioD, so that no matter
what tbe political oomplezion of the Gov-
ernment of the hoar, icp face shall be eet
resolutely to the goal of a strong provincial
policy, confident that In following the way
agreed upon, it may count upon the solid
support of every member of this Houst.
Surely there were some great issues we
could strive together for, surely there was
common ground which men of both
parties could stand upon in the promotion
of the common good, (Continued
applause.)

After concluding his speech Mr.Stratton
said he wished to refer to a paragraph In
the Mail and Empire of that morning.
He did not complain of newspaper orit!-
olsm, but be hardly thought the Mall and
Empire was fair in stating that he had
evaded a rpplv to Col. Matnieson's oharate
that the $60 000 teoeived by the Govek-'L-
ment and credited in the receipts was sub-
sidy and not interest. He did not wish
the honourable gentleman or the country
to think that he had shirked the question
and he would like to aek Mr. Matbleson
then to repeat the question.

Col. Mathleson— I said yesterday that
the $60 000 waa a loan and not interest.

Mr, Stratton— Well, yesterday my
honourable friend said subsidy, but we
will accept his statement tbnb be said it
was a loan. Tbe House will remember that

I stated positively that it was Interest.
However, to prove that the $60,000 was
not a loan, that it was not a subsidv, but ^
an actual payment of interest, I will '^
read the following letter, dated July, 1898 :

" PiR,— I have the honour to enclose herewith
check No, 7,964 in your favour on the Bank of
Montreal, Ottawa, for 160,000, being a payment
OQ account of intere at doe your proyince. (Ap-
plause.) This approximate amount i!< arrived
at as fallows: Interenton truat funds for two
years to June 3i)lh, 1898, $335,212.96, leas amount
already paid, S110,000, and leaa Intereat on ap-
proximate debt ; balance $1,700,000, at i per
cent, for two years" (Cheers.)

Mr. Stratton— So my hon. friend will see
that the statement I made that the f 142,-
000 that we considered in the receipts as
Interest was tbe interest on the |2,848.000,
and that this $60,000 was Interest, as I
said to himself yesterday.

Mr, Whitney— Who signs the letter ?

Mr. Stratton— W. Fitzgerald, Assistant
Deputy Finance Minister.
Z Col. Matheson held that Mr. Fitzgerald's
statement was extraordinary, as the rate
of Interest mentioned was not the rate de-
cided upon by the trust funds award.

Mr. Whitney— The writer acted under
orderp.

Mr. Stratton— He is a Conservative ap-
pointee, and carrying out laws passed by
the Conservative Government. (Applause.)
Col. Matheson Is " In the hole " and he bad
better admit it gracefully. (Laughter.)

WMl

'W^^n:

-r^-^i/

m Mi^ m miim ; >■ ■ ^ rf i. i mtm^KMUmmi'lfm'f^

•MiMMMMNMiUilMMtMW^

it was Interest.

the 960,000 was
>t a subsidv, but
f Interest, I will
dated July, 1898 :

bo enolose herewith
ur on the Bank of
), being a p*yment
Jur proTinoe. (Ap-
Etmount is arrived
U8t fands for two
,212,96, less amount
JBB interest on ap-
fl.roo.OOO. at i per
rs.)

o. friend will see
a that the 9142,-
the reoefpts as
)n the 12,848.000.
8 interest, as I

18 the letter ?
erald. Assistant

Mr. Fitzgerald's
iry, as the rate
not the rate de-
ads award,
er acted under

onservative ap«
laws passed by
ent. (Applause.)
>o)e " and he bad
(Laughter.)