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ADAM CROOKS, TREASURER OF THE PROVINCE OF ONTARIO, x DELTVERFD ON THE 20th FERRUARY, 1874, IN THE LEGISLATIVE ASSEMBLY OF ONTARIO, ON MOVING THE HOUSE INTO COMMITTEE OF SUPPLY. REPORTED BY H. KINLOCH. 3Ii0»;0ntoi: ,• ' PRINTED BY HUNTER, KOSE & CO., 86 AND 88 KING ST. WEST. • 1874. 11 I SPEECH OF THB HON. ^D^M CROOKS, TREASURER OF THE PROVINCE OF ONTARIO, DELIVERED ON THE 20th FERRUARY, 1874, IN THE LEGISLATIVE ASSEMBLY OF ONTARIO, ON MOVING THE HOUSE INTO COMMITTEE OP SUPPLY. REPORTED BY H. KINLOCH. PRINTED BY HUNTER, ROSE «& CO., 86 AND 88 KING ST. WEST. 1874. EPITOME. In opening his financial statement, Mr. Crooks first referred to the estimates of 1873 as compared with the actual expenditure for that year, and which were as follow : — Estimated expenditure |2,944,061 Actual expenditure 2,460,212 Excess of estimates over expenditure $483,849 The total sum unexpended was $533,380, but some items had, as anti- cipated, exceeded the estimates in the aggregate by $49,531, reducing the net amount unexpended to the sum abo\e mentioned. The chief cause of this apparent saving is to be found under the head of Public Works, Public Buildings, the Maintenance of Public Institutions, Crown Lands, and Miscellaneouc, the amount unexpended under these heads amounting to $416,061. The estimated revenue as compared with actual receipts was as follows : — Estimated $3,090,391 Actual 3,314,506 Excess over estimate $224,115 The excess was caused, in part, by the measure of the Dominion Gov- ernment for readjusting the public debt by assuming the surplus amounts on which Ontario and Qubec paid interest, the sum of $155,833 having accrued from this source in July last, when the half-yearly payments of subsidies to the Provinces were made. In 1874 the full benefit of the remission will, of course, be felt. From the interest on investments, the revenue was expected to be $200,000 ; it had amounted to $258,040, or a gain of $58,040. From licenses had been received in excess of the estimated income $12,152; from Law Stamps $55,000; from Casual Revenue, $55,000 ; from the Education Department, $1,481 ; from Pub- lic Institutions, $7,163 ; from the Mimico Farm, $3,713 ; and from the 4 EPITOME. interest accruing on the Municipal Loan Fund, $28,951. On the other hand, the Crown Lands Revenue, chiefly under the h«'ad8 of Woods and Forests, fell short of the estimate by a sum of 6166,362. The esti- mated income from this source was $800,000, but the actual receipts were $643,638. The amount of accruals remaining to be collected in the Grown Lands Department at the end of 1873, was $372,000. The receipts and expenditure for 1873 were as follows : — Receipts $3,314,506 Expenditure 2,460,212 Surplus $854,294 The financial position of the Province at the end of 1873, was as follows : — Invested Funds $2,747,805 Deposits 1,646,729 Drainage Debentures 63,949 Cash in Bank. 277,948 Total $4,726,431 To this has to be added the reduced Municipal Loan Fund indebted- ness, amounting to $1,830,122, less the sum of $556,292, to be written off from the obligations of Lanark, Renfrew, and other municipalities, in accordance with the plan for settling the Canada Central claim, leav- ing an asset of $1,273,840, or deducting 15 per cent., $1,082,764, making a total surplus of $5,809,195. But we are entitled to add to this the improved market value of the Dominion securities in the hands of the Treasurer, amounting to $250,000, making the surplus $6,059,195. Against this have to be placed the following liabilites : — Standing to account of the Railway Aid Fund, $1,100,572 ; the Railway Subsidy Fund for 1872 and 1873 amounted to $200,000; the sums due under the Municipal Loan Fund Adjustment Act of last session, $3,115,736 ; making a total of liabilities of $4,416,308, leaving at the end of 1874, irrespective of any balance from the revenue of the current year, and after providing for every existing liability, a surplus of $1,642,887. We have, however, in addiiion to this, a valuable asset in the shape of the Grammar School, Common School, and Upper Canada Building Funds in the hands of the Dominion Government, amounting in value to $2,699,407, and on which we receive interest annually amounting to n the other of Woods The eati- lal receipts collected in 000. ,506 ,212 ,294 873, was as ,805 ,729 ,949 ,948 ,431 id indebted- » be written inicip&lities, claim, leav- >4, making a lie improved B Treasurer, igainst this 3ount of the id for 1872 ) Municipal king a total espective of r providing 1 the shape ia Building ng in value aounting to EPITOMR. 6 $136,696. We have, too, as a further asset, the rent charges accruing from the sums advanced to municipalities for drainage purposes, no less a sum having been so expended under Mr. Carling's Act than $200,000, the works represented by which are now nearly completed. Against these assets the Province will have to provide a further sum, as required by statute, for investment for drainage purposes, of $350,000, and the eighteen annual appropriations of $100,000 per annum under the Railway Subsidy Act. If to this bo added some possible and indefi- nite liability in regard to the Common School Land Funds, the precise amount of which has to be divided with Lower Canada, we have every conceivable liability that can be charged at the present time, or pros- pectively, against the Province. The revenue for 1874 the Treasurer estimates "s follows : — Cash in Bank $277,948 Interest on Deposits and Investments 150,000 Crown Lands 684,288 Casual Revenue 22,000 Licenses 80,000 Algoroa Taxes 5,000 Law Stamps 40,000 Education Department 50,000 Public Institutions 30,000 Federal Subsidy and Allowances 1,333,569 $2,672,805 Whilst, however, Mr. Crooks, in order not to overstate his case, had put his estimate of the revenue from several sources below the amounts they might reasonably be expected to realize, he expressed his opinion that the actual revenue would not fall far short of $3,000,000. After, therefore, distributing amongst the municipalities the large sum of $3,115,000, providing for all the claims created on behalf of railway enterprize, wiping off the whole burden of Municipal Loan Fund indebt- edness, erecting public buildings, or providing for their erection, to the amount of nearly $3,000,000, the Province will probably enter upon 1 875 with the handsome surplus in hand of not less than two millions :)f dollars. FINANCIAL STATEMENT OK THE PION. ADAM CROOKS. Leoislative Assembly, Toronto, Friday, 20/A February, 1874. Hon. Mr. CROOKS said :— Mr. Speaker, in making the usual motion that you do now leave the Chair, in order that this House may resolve itself into a Committee to consider the supply to bo granted to Her Majesty for the public ser- vice of the Province for the year 1874, it becomes my duty to lay before the House such i. jrmation touching the financial position of the Province as will enabi<) Honourable Members to know that posi- tion accurately. I will endeavour, Mr, Speaker, to be as concise and succinct as possible ; but at the same time I am afraid that, inasmuch as my observations will chiefly be devoted to figures, I may to some extent weary the attention of Honourable Members. At the same time it is no doubt the most important question which Honourable Mem- bers each session have to consider, to review what has been done during the past year in connection with the financial operations of the Province, and also to consider what is to be the financial operations of the Pro- vince in the coming year, and to learn definitely the true financial position which the Province occupies. In order that Honourable Mem- bers may arrive at some correct understanding of the different questions, I propose to take up the principal heads under which the subject is to be considered, in their natural order. I therefore first propose to con- sider the difference between the estimates for the expenditure of the year just closed, which expired on the Slst December, 1873, and the actual result. 1 8 FINANCIAL STATEMENT. k i I had the honour, during the Session of 1873, of introducing for the concurrence of this House, the estimates of probable expenditure for the year 1873, and I wish first that Hon. Members may know how far the appropriations made on that occaeion have or have not been dealt with ; practically, in other words, to compare the actual expendi- ture for the jear 1873 with the estimated expenditure which the House during its last session assented to. That is a comparison which can be very easily made, and it is only necessary that I should refer Hon. Members to the statement No. 33 of the Public Accounts which havt> baen in the possession of Hon. Members for some ten days past. At page 154 of the Public Accounts for 1873, appears the comparison. The gross total of the appropriations for 1873 amounted to $2,944,061, whih^ the expenditure amounted to $2,460,212. This statement further shows the amount voted last year in respect of each service and each depart- ment of the Provincial service, and also in what respect and to what extent the appropriations so made have been expended ; and in regard to certain services where there has been an over expenditure, the statement also shows tc what particular service any over-expen- diture is attributable. There are four columns in the statement, showing the appropriation, the expet Mture, the unexpended portions of ihe appropriation, and the over expeuditure. I may say with refer- ence to the p^nount over .-"-xpended that that was, in fact, sanctioned in advance, because, in truth, «he House, in 1873, made an appropriation to cover i. .at, over-expenditure to the extent of $50,000 ; so that the items which appear in the over-expenditure cilumn, amounting to $43,531, are within the limit of the $60,000 which wac authorised in advance to be expended for unforeseen or unprovided items. The dif- ference between the appropriation and actual expenditure is $533,380 ; or, in other words, the funds taken last year, which remained unex- pended were $533,380. Wel\ that expenditure is attributed chiefly to Public Works and Buildings, and I find, upon reference to the Imperial estimates, that the late Chancellor of the Exchequer, Mr. Lowe, made some observations upon that head which are quite applicable to our cir- cumstances. He mentioned that in estimating for that class of expen- diture, it was quite diff'erent from assuming to ask for an appropriation for ordinary expenditure. It is desirable that when an appropriation is asked for from the House, that the amount of the appropriation should be ascertained with as much certainty a.«i is posL'ble, in order that no FINANCIAL STATEM12NT. 9 itroducing for e expenditure rs may know have not beon ctual expendi- ich the House which can be d refer Hon. t8 which havt^ ays past. At larison. The )44,061,whil»' further shows 1 each depart- i and to what and in regard enditure, the y over-expsn- le statement, ed portions of ly with refer- sanctioned in appropriation ; so that the imounting to authorised in ns. The dif- is $533,380 : lained unex- ted chiefly to the Imperial Lowe, made )le to our cir- iss of expen- ppropriation )ropriation is ation should rder that no more money than the public service demands, may be asked for at the hands of the House; but in regard to public buildings, a variety of ob- stacles may ocour ; unforeseen circumstances may take place which may retard the contemplated works from being gone on with, or being pushed forwp.rd to completion as rapidly as might have been anticipated when the appropriation was asked for — so that it is chiefly in con- nection with appropriations of that character that the estimates of last year failed to be exhausted by this large amount — upwards of half a million of dollars. If hon. gentlemen will re^^^r to the statement No. 33 of the Public Accounts of last year, they will find that in respect to public buildings, the amount unexpended was $224,568, while the only excess in regard to public buildings is limited by the amount of $8,066. In Public Works, the amount unexpended was $54,464. In Public Institutions, $50,855. In Crown Lands, $65,989, and of a miscellaneous character $20,183, making a total of unexpended amounts thus accounted for under these different kind? of services, $416,000 ; or, in other words, under these five heads we have an explanation of how the appropriation for 1873 remained unexpended by that amount. Then, I may say in connection with the expenditure of last year, that the Public Accounts placed in the hands of members exhibit in detail every item, so that every member can, almost in an instant, if he desires to see any item, place his hand upon it, and then call for all the vouchers or authorities on which the payment has been made. The public ac- counts and the estimates of last ye^ir, together constitute a source of information open to every member, from which he can gain the fullest possible light concerning every particular item of the expenditure of last year ; and I do not suppose that the members of any other Parlia- ment possess equal facilities with members of our Legislature for tlioroughly investigating and understanding every item of the ercpendi- ture, and every particular connected with it, and the authorities which warranted its payment. T may say further, that, with very few excep- tions, every account or item has been paid by the cheque of the Treasury Department ; and th«t it is only in rare instances, and in co'^- nection with services, where, if funds were not placed in the hands of some of the Departments in advance, an injury or detriment to the public service would arise from the delay, that cheques for specific payments are not so drawn. That amount is small in comparison with the expenditure from the Treasury Department ; and in regard, there- i ; 10 FINANCIAL STATEMENT. fore, to the large proportion of the amount disbursed last year by the Treasury Department, every item is vouched for by a separate cheque of that Department, most of which were signed by myself To pass on to the next subject on which Hon. Members require in- formation, I propose now to compare the estimated revenue for 1873 with the actual receipts. We have had the comparison of the estimated expenditure with the actual expenditure. I propose to compare the estimated receipts which I placed before the House last session, with the actual receipts for the year ending on the 31st December, 1873. Now, if the tables appended to my financial statement of last year are referred to, it will be found that the estimated receipts for the year were calculated at $3,090,391 ; but that included an item of cash in hand amounting to $352,991, so that the actual receipts estimated for last year amounted to $2,737,400. If Hon. Members will turn to the first statement in the Public Accounts, they will find the actual amount received from the different sources in respect of which I assumed to make an estimate last year. Including this item of cash on hand, we have the actual receipts, amounting to $3,314,506, as com- pared with the estimate of $3,090,391, or an amount in excess of the estimated revenue of last year of $224,105. (Hear, hoar.) It is necessary that this excess should be accompanied with some explana- tions in order that Hon. Members may understand how it was that my estimate of last year was exceeded by so large an amount. This is easily explained, and I shall be able to show in what particular? my estimated revenue of last year either fell short of, or exceeded, my expectations. There is an item to be considered in connection with the actual re- ceipts of last year, which of course, when the estimates were under dis- cussion last year, none of us anticipated that we would receive. During the year 1873, we received, from an unexpected arrangement, a sum of $155,833 ; and that receipt arose from the policy of the Dominion. Government carried out by an Act of the year 1873, under which it altered the arrangements which were provided for by the 112th and 118th sections of the British North America Act of 1867. Under these sections of the British North America Act, Quebec and Ontario were bound to pay five per cent, interest, as a sort of perpetual charge upon the excess of debt of the late Province of Canada, over sixty- two and a half millions ; and last year the amount of subsidy coming li FINANCIAL STATEMENT. 11 year by the arate cheque rs require in- lue for 1873 the estimated compare the session, with ember, 1873. of last year iipts for the item of cash )ts estimated will turn to id the actual of which I jm of cash on ,506, as com- excess of the hoar.) It is iome expl.ana- ; was that my unt. This is articularr. my exceeded, my ihe actual re- ere under dis- eive. During lent, a sum of ihe Dominion, ider which it le 112th and Under these Ontario were etual charge I, over sixty- ibsidy coming I .J to us was reduced pro tanto. The Dominion Act of last session did not come into force till the Ist July, 1873, so that we received on or about the 1st January, 1873, the amount of the last half of the year 1872, diminished by the interest upon the excess of debt for 1872; and on the Ist July we received the full amount of our half year's subsidy, from the 1st January to the Ist July, 1873, not dimin- ished by that reduction. So that from Dominion sources the amount received last year, w. s $155,833, larger than I had reason to anticipate. But in January, 1874, we had to receive half a year's interest, pay- able to the last half of 1873; in other words, we have received now the whole of our subsidy for 1873 quite undiminished by any interest charged against us with reference to the excess of the Provincial debt ovei sixty-two and a half millions. There are furti^er points to be brought to the attention of Hon. Members in connection with the actual receipts, derived from their different sources during the year. The first item in which there is much increase is in respect of interest on investments. Last year I took as the probable receipt $200,000, while the receipts in the Public Accounts, on page 17, Statement 5, are $258,040. In connection wiVh the Crown Lands Department there has been an increase in some items and decrease in others, but the total difference is a deficit of $152,028, the chief falling off being in ihe item of Woods and Forests, the estimate for which was $800,000 ; while the receipts from that source amounted to only $643,637 — a difference of $156,362. Mr. RYKEEi"— Does that include the notes ? Hon. Mr. CROOKS — That includes everything that came into the Treasury in 1873. I will be able to give my Hon. friend the details of all these statements immediately. The total amount of the deficiency is as I mention. From casual revenue we received $77,355, as per Statement, No. 7. The amount of $25,000 does not properly belong to this, being an amount received froir the Dominion Government in aid of 'he immigration of 1872. I can only properly claim credit for an excess of $7,000, in addition to the amount for which I estimated last year. The License Account, detailed at page 18 of the Public Accounts, Statement 6, Hon. Members will find, shows an increase on the esti- mated receipts, of $12,152. On Taxes from the Algoma District, State- ment 18, there is a deficit of $2,000, arising from non-collection. Coming next to Law Stamps, Statement No. 9, we find an excess over # 12 FINANCIAL STATEMENT, I % k I 'i M !: the estimated receipts of $55,249. The reason for this was, that it was assumed last year that a change would be made which would have the effect of removing stamps, especially in the Division Courts, from the fees payable to the Crown upon proceedings in these Courts, Still that is higher than the amount in the previous year, by something like $18,000. From the Education Department I received $1,480 more than I estimated ; and so in regard to Public Institutions, the amount received in excess from which is $7,1C3. 1 also received from sales of some lots from Mimico Farm ,$3,713, and interest on the Municipal Loan Fund $29,951. Neither of these items were relied upon as sources of revenue for last year, but an amount which I took for interest payable by the Dominion Government on special trust funds in their hands, was not paid to the extent of the amount I had taken, which was $149,694. So far the amount paid falls short by about $13,000, so that I find a deficiency here, which, added to the deficiency in Crown Lands, makes nearly $181,000 deficiency. But the excess is altogether $346,075, so that in regard to every item from which revenue was expected last year, with the exception of one branch, the Crown Lands Department, there has been a large increase, which has resulted in the amount actually received, including the cash on hand, being $224,105 in excess of the estimate of last year. An Hon. Member desired to understand the actual receipts from Woods and Forests. I have a statement here to which I will refer. The amount collected in 1873 in respect of timber dues, ground rents and the ordinary bonuses was $354,000. Of that amount, $232,000 properly belongs to 1873, and $122,000 represents the collections in 1873 of the accruals in 1872, and in addition to that amount, $289,000 was received in respect of collections on the Lake Huron sales. I will mention in connection with this, that the total amount outstanding in respect of the operations of 1873 and of 1872, still to be collected is $372,000, and I can furnish at some subsequent period a full account in detail, showing where the $372,000 is, and also the particulars in connection with it, and the reasons why that amount is outstanding on the 31st Dec«>mber, 1873 ; but I merely refer to this statement now, for the purpose of offering to Hon. Me^nbers an explana- tion of how the item of cash from the Crown Lands Department is made up ; and it is made up by the two items I have referred to. Hon. Mr. CAMERON— It would be convenient for us to know the jeason why it was not collected. FINANCIAL STATEMENT. la it was ve the (in the Still lothing ,0 more amount sales of lal Loan )urces of payable ,nds, was ;149,694. I find a Is, makes :6,075, so 3cted last partment, e amount ) in excess irstand the nt here to of timber I, Of that represents ion to that a the Lake it the total ,nd of 1872, subsequent is, fvnd also that amount refer to this \ an explana- epartment is •ed to. to know the Hon. Mr. CROOKS — If the Hon. gentlemen will excuse me I "'.vould like to have some continuity in my observations, and would like therefore to go on with what I am speaking about. I will be happy afterwards to reply to any questions which the Hon. gentleman or any other Hon. Member may ask me, so that they may be placed in posses- sion of any information which they desire. At present having regard to the subject which I am now discussing, namely, the receipts of 1873, as compared with the estimated receipts of that year, I gave Hon. Members that explanation in regard to the total amount $643,000 in the Woods and Forests branch of the Crown Lands Department. No- doubt these observations are sufficient for understanding the last point touched upon. To come to my third subject, I propose to institute a comparison between the actual receipts and the actual expenditure of 1873; and Hon. Members can verify my figures by referring to statement No. 1, of the Public Accounts. From these accounts it will appear that the actual receipts for the year were $3,314,506, while the actual expendi- ture of the year amounted to $2,460,212, making a difference, or sur- plus for the year, of $854,294. And now as to what has been done with that amount. That amount has been applied to discharge our obligation to the Railway Fund to the extent of $426,642; but that Railway Fund has nothing to do with the normal expenditure of the year, in respect of which the votes of this House are required. It is simply a payment from a separate fund, in accordance with the Act of Parliament, and that fund has been decreased by payments to railways, amounting to $426,642. We have invested in Drainage debentures, bearing 5 per cent, interest, $53,949, and we have cash on hand, $277,948, so that we had, strictly speaking, as a surplus from the receipts of 1873 above the expenditure of that year the amount which I have mentioned, and which amount has been disposed of in the way which I have explained. Hon. Members will find all this in Statemen*^. No. 1 of the Public Accounts, page 12 ; also, Statement No. 30, page 150, as to the Railway Fund, and Statement No. 11, page 25, as to payments made for Drainage debentures. In connection with this point of the actual receipts and expenditures, I will call attention to a comparative statement for the years 1868 to 1873 inclusive, which shows the amount appropriated, the amount ex- pended, the amount actually received, and the surplus revenue for each 14 FINANCIAL STATEMENT. ^i V. of theae years. That statement shows that the surplus each year was as fjllows:— In 1868, $1,076,323; in 1869, $1,180,510; in 1870, $920,0,32; in 1871, $516,312; in 1872, $1,212,791; and in 1873, 8501,303. That $501,303 does not include the cash on hand. I have taken the actual revenue received during the year, without reference at all to the cash on hand, which properly represents the receipts of the preceding year. 1 n connection with that comparative statement, I also give particulars showing how much the expenditure in each of these years has been invested in permanent iu.provements, or, in other words, expended on Capital account. The whole amount for these six years is $2,040,113, while we have last year expended on Capital account $555,389, as contrasted with less than half that amount ex- pended in the year 1872. Tlie amount expended on Capital account in 1871 was $430,620 ; in 1872, $266,764 ; and 1873, 554,389. When my predecessor, the Hon. Mr, Mackenzie, made his financial statement, in 1872, he had a tabular statement prepared, from which it would appear that the amount up to that time expended, including the amounts of the appropriations for the year 1872 on Capital account, was $1,569,- 221 ; and that sum, the details of which will be found in Mr. Mackenzie's financial statement of the 21st February, 1872, with the amount expended in 1873, amounts to the gross total of nearly two millions of dollars. Under my fourth head I call the attention of Hon. Members to the financial position of the Province on ^he kt of January, 1874. We have these assets or resources ; Invested Funds, being Dominion Securi- ties, or securities of the former Province of Canada, $2,747,805 ; de- posits at interest in different banking insiitutions — a statement respect' ing which appears on pages 25 and 26 — $1,646,729 ; invested in drain- age debentures, as per statement on page 25, $53,949 ; cash in the bank, $277,948, making in all $4,726,431 ; in addition to which there are the Municipal Loan Fund debts, the gross amount of which was $1,830,- 132, but from which total we must deduct the amount allowed to the four municipalities in connection with the arrangement which was come to between them, the Province and the Canada Central Railway, under the resolution of the House last session, by which $556,292, comprising the debts of Renfrew, Lanark, Elizabeth town, and the Town of Brock- ville, were settled, thus leaving the nominal amount of indebtedness at $1,273,840; or, in other words, our resources are equivalent in cash jitrti;-":.:i.^;«v--^:?i.^Mr:\ii^'i^'i^/]i, FINANCIAL STATKMKNT. 16 to $5,809,196. But we aro entitled to the benefit of the premium of the amount of Dominion securities, and, at a low estimate, that would be a quarter of million of dollars, so that the gross total would proba- bly be over six millions of dollars. (Hear, hear.) Against that amount there are certain payments chargeable, eiLuer directly or in re- spect of certain funds which have been established. he first fund is the Railway Aid Fund, the balance unpaid of which, i w amounts to f 1,100,572. A statement will be found in the public accounts at page 146, but in addition to that the subsidies of 1872-73 — now due —1200,000 should be added, making it $1,300,572, which repre- sents the fund which is to be drawn from by railways. Then there are the payments to be made to municipalities under the distribu- tion scheme, having regard to the amounts which appear in the revised schedules, just laid before the House, amounting to $3,115,736. So that we have, as against our own funded resources, $6,000,000 odd, charges amounting to $4,416,308, leaving a surplus or difference of $1,632,887. We have, however, in addition to that — and I bring these sums together in order that the charges may be understood — Provincial assets belonging to this Provuice, amounting to $2,699,407. I gave Hm. Members the details of these assets in my financial statement of last year ; but I will i-epeatthem again incase they should have escaped the attention of Hon. Members. These amounts are just as good in every respect, as if they were Dominion securities, because they must be made good to this Province, by the Government of the Dominion. I may mention that there is no dispute upon that point at all. The Dominion Government admits that it holds these funds for us, and pays us interest at five per cent, on them, though I think it ought to pay us six per cent, on one of them — the Building fund. They recognize our right to these funds, the only question being how much of the Common Schooi Fund belongs to the Province of Quebec, and how much to Ontario. At presei.t the divi- sion is only a provision.) 1 one, based upon the proportion of the popu- lation in 1871, under which we get five-ninths at five per cent, and Quebec four-ninths. I have, therefore, taken five-ninths of that fund as an asset of this Province. Upper Canada Grammar School Fund amounts to $312,769, Uppp- Canada Building Fund to $1,472,391, and the five- ninths of the Common School Fund to $914,246, making, as I have said, a gross amount of principal which the Dominion Government hold on our behalf and pay us interest on, of $2,699,407. That is an amount which 16 FINANCIAL STATEMENT. 3' I we are in a position to demand from the Dominion Government at any time we tlunk convenient, though it is the desire of the Dominion Oovem- ment, and the Governments of Quebec and Ontario before disturbing those funds, to settle all questions which remain, because there are points to be settled between the Dominion Government and this Province, as well as certain questions to be settled with the Province of Quebec, and this settlement, to be at all convenient, must be a triangular one, involviDg the consideration on the part of the three Governments, of certain items, before the actual money balance can be arrived at. T may say, in con- nection with that also, that during the recess, some progress has been made in endeavouring to arrive at a settlement with the Province of Quebec, and the Government of that Province now feel assured that they will receive fair and liberal treatment from this Province ; but at present, owing to various causes, although different heads have been discussed which tend towards a settlement, no definite conclusion has been arrived at. I may say, that an entire entente cordiale now exists between the Governments of the two Provinces. Any suspicion which may have been heretofore entertained in Quebec as to the Government of this Province desiring to take any advantage or acting otherwise than fairly and liberally, have vanished, and the questions now at issue between us are very few inileed, and can be easily determined when the opportunity arrives for the two Governments to meet, and also for meeting with the Government of the Dominion. The result of the arrangement of 1873 has been to remove subjects of difference between the two Provinces which in connection with the arbitration, appear to have caused some feeling in the Province of Quebec as to the proportion in which the two Provinces should bear the excess of the debt of the late Province of Canada. That excess having now been assumed by the Dominion Government, nothing remains under discussion but the settle- ment of certain assets which became the joint property of the two Pro- vinces under the British North America Act. The award on some of these points is clear, and the result can hardly be questioned, but on some of the joint asseLs there are points yet to be settled. At the same time, there does not appear to be any reason wtich would lead one to anticipate that the settlsment may not be speedily arrived at. In addi- tion to these special funds, I refer you to another asset, and that is the value of the debentures taken under Mr. Carling's Act in relation to drainage j $200,000 were set apart by Mr. Carling's Act to aid drainage FINAN(;IAI, STATKMKNT. 17 in (Ufferent partn of the country, these operationH heing undertaken by the Government at the reipieHt of thedifferent n]unici|mlitieH ; and upon these draiiuifife works being comi)leted, the niuuicipalitios became liable to pay annual suns b; way of rent-charge to, redeem the amount. The probability is, that this year all the by-laws which these munici- palities are required tf- pass will be in th'.* possession of the Trea- sury Department, and will represent the full value of the money ex- penc'3d. It will be seen that sonuithiiig is taken this year in respect of simil>»'' expenditure under the Act of my hon. friend, the Commissioner of Public Works, ap))ro})riating another $200,000. As against our a,ssets. we had undertaken further liabilities ; and although they are not pre- sently payable we must chai'go tlunn in the future, and they are to be met either out of any capital resoiirces we may have, or out of income in future years. The liability to the Railway Subsidy Fund covers eighteen annual payments of $100,000 each, the last $100,000 taking piace in 1892. We have also .$350,000 to meet in the future for drain- age operations ; but this amount may be paid from time to time, out of current income, and it is in fact an investment. We have, further, some moneys to pay to Quebec in regard to its share of the School Fund, and for any purchase we may agree upon for the Lower Canada share of what lands remain on hand. I have now spoken of the direct charges which are presently })ayable, and also of the liabilities; and have given the assets from which we can meet these charges, so that the financial position of the Province can be readily ascertained. I have now to introduce the estimates for the year. The amount, under different heads, will appear in the usual form in which the estimates of this Province have been l)rought before the House. The estimates this year do not present any particular points of novelty, having regard to the different services in respect of which provision was made in the estimates of 1873. The estimates for the year 1874 follow in the main, the estimates of 1873 ; but I have endeavoured to arrange the heads of service in an order which seems to be more accurate ; in other words, I have assumed to place first the amounts under one column which are required for current expenditure, having regard to the different heads of the public s&rvice, such as Civil Govern- ment, Legislation, Administration of Justice, Education, and so on, for which provision has to be made each year, and which expendi- ture does not leave a tangible or visible representation behind. I 2 il 18 FINANCIAL STATEMENT. ^ have discriminated the exitcnditure on Current account and on Capital account, the expenditure on Capital accoiint leaving a viai- ble, permanent improvement, and being to that extent a real addi- tion to the property of the country. Pul)lic huildings, and public works I have, therefore, i)ut last, and Colonization Roads also, so that we have first, expenditures for services on Current account, and next, those on Capital account, and then I introduce three items which are not necessarily items of expendittire on Current or Cai)ital account, because, in managing the large public domain, there are various charges upon that domain which arise out of the very nature of the property itself, such a« surveying, laying out lots, defining boundaries, and so on, all of which are necessary, in order to make that domain at all market- able. That expenditure may be considered as pro lanto adding to the value of the property, as, until this is done, it is comparatively valueless. At all events, it is an expenditure which is necessary to make an estate marketable property. So with regard to the Refiind Account, which J have placed under the heading " Charges on Crown Lands." The title before used was " Crown Lands P^xpenditure," which gave a wong impression. Charges on Crown Lands would be understood as that expenditure which comes properly within the head of Civil Govern- ment. The Refund Account is for the purpose of keeping an account of certain moneys which, in truth, we are not entitled to, but which come in our hands, and must be paid out. Whether that is more or less makes very little difference in truth, because it simply refers to money received on one hand which we are not entitled to, and paid out on the other, and I have brought all items of that class under this head — Crown Lands, Immigration, Education, and so on. . Mr. Cameron — Do you pay interest on these refunds ? Hon. Mr. CROOKS — No, it has not been the custom of the Govern ment to pay interest to any person on money in its hands. That is a cardinal principle which all Governments adopt. Mr. CAMERON — Then you make a little by the transaction. Hon. Mr. CROOKS — I suppose so. I have also placed in a separate column the amount over expended for 1873, $42,225. I do that be- cause it is usual to submit the items in detail to the House, and have the amount voted over again. This is the first time the House has had an opportunity of voting upon the items which constitute that expenditure. So that the gross result of the estimates now submitted to the House KINAN«;iAL STATKMKNT. 19
  • ivil (lovern- raent, $1,822; in Fje^iHlatif)n, $r),r)00 ; Aiiuiinistration of Justice, $27,630 ; Emigration, $2O,r)20. That item Ih only nominal, because $18,160, was charged against the vote for emigration last year. This year I have taken that amount as a refund to the Dominion Government, MO that substantially Hon. Members may consider the amount to be "otcd for immigration this year as the same as last year. The difference will be about $2,000 less. Hospitals, the same; Miscellaneous, $10,500 decrease; Unprovided, the same ; Public Buildings, $340,901) decrease; Colonization Koads, $4(5,300 decreasii ; charges on Crown Lands, $54,633. I think I have pointed out the material points in which the estimates of this year differ from the estimates of last year. I next proceed to submit to the House my estimate of the probable revenues for the year 1874. Now, although not revenue properly so- called, yet, on the other hand, as I have taken the probable expendi- tures, that is to say, the amount required to be voted in the shape of appropriations, I have a right to refer to the means which are available in order to meet during the year 1874, the expenditures which are to taken place in 1874. The amount of cash on hand is $277,948, and I have in addition to rely upon interest. After making every allowance for losing a large portion of our invested funds, which may be required this year to be converted in order to psiy the amounts coming to the several Municipalities which make a total of some $3,000,000, and for retaining a sufficient fund on hand to meet the demand on the iiailway Aid Fund and the Railway Subsidy Fund, which will render it necessary to convert some of our securities, still in estimating the amount for interest during the year 1874, I have taken all that into account, and I claim that we shall receive $150,000 for interest this year, making thus from cash sources $427,948. Then I come to the Crown Lands Department, and have been furnished with these items of estimated revenue. Crown and Grammar School Lands, $196,000. Woods and Forests, the dimi- nished amount of $444,288. That was $800,000 last year. Clergy Lands, $80,000, Common School Lands, $10,000, which are in truth not sources of revenue. The Clergy Lands when converted go to the FINANCIAL HTATKMKNT. 21 Municipallti«8, and the Common Schools Lands we hold in common with Lower Canada. From thin Department, I estimate that we shall receive <1784,288. Mr. KYKEKT-How much for Mining Lands 1 Hon. Mr, CROOKS — I have not been furnished with any estimate this year as to Mining Lands. It depiMids very much on circumstanues which arise during the spring whether Mining liunds are productive or not. The third item is (casual Revenue. Last year we received over ^20,000 from this source. This year I am content to place the figure at the same amount F'or tavern licenses I take $80,0()0 ns the receipts, although $90,000 was received hist year, and I think the amount this year will ecjual fully $ 100,000 without increasing the charge for licenses, if anything like a proper observance of the law is had. For Law Stamps the amount received hist year was upwards of $1)5, 249. As legislation is in progress, which will have the effect of throwing off, or diminishing, the fees payable in some of the courts, I take less than one-half the amount then received, and place the figure at $40,000. The amount, 1 am sure, will be larger— probably nearer $00,000. With regard to Fldu- cation, I have taken $r)0,000. This amount was received last year, and although so large an amount may not be taken this year, it is impossible to tell what the reduction may be. I prefer, therefore, to take the amount as it was last year. Public Institutions I take under the amount received last year, and place at iiJ30,000. Then we come to the amounts to bo received from the Dominion Government. Of course our public allowance, undiminished by any contra account or interest, will now be due, 80 I am likely to receive this year, according to the population allowance of 1861, $1,116,872 ; and in addition to that we have the allowance for government of $80,000. Then we have interest on local Trust Funds, $89,258, and 1 have next five-ninths of the interest on the Common School Fund, $47,438, amounting in all to $1,333,569 ; and that is ;> reliable estimate, because my figures are taken from a statement furnished by the Auditor-General of the Dominion, and upon which he has already paid to this Province one-half that amount. He paid the interest in January last, $606,784, and that payment was based upon the figures which I have taken as the basis of the estimated levenue from that source. 1 am quite sure that the amounts actually received for 1874 will be nearer three millions than the figure which I have named, but 1 desire to remain on the safe side, and therefore put the 22 KINANCJAI, STATKMKNT. figures as low as will, I think, make us safe. The probable amount for 1874, J thereforeputat $2,772,805, which is less than my estimate for the year 1873, by $317,585, and Hon. Members will see that the principal difference .-^lises under the item connected with the Woods and Forests branch of the Crown Lands Department. That estimate is a low estimate, so that no possible disappointment can arise. The state of the trade last year has been such that a low estimate can be justified in reference to this branch of the Department /ftr the year 1874, and it is ba,sed upon an assumod continuance of the state of things rather than upon a revival in the trade from which this large return arises. The result therefore will be, that, taking the estimated receipts and expenditures of this year, there will be a surplus of about $100,000, though the actual surplus, I am sure, will be found cc be much larger. To 8umn?arize briefly the financial posi' .on of the Province as we find it, or rather as it will be found on the first of Januaiy, 1875, assuming that all the current demands for the year 1874, and all the charges which are payable this year, have been fully met, we must stand i>t the close of the year with a cash invested surplus of $1,632,887, but to that is to be added the amount in the hands of the Dominion, of $2,699,407. Mr. RYKERT— At interest ? Hon. Mr. CROOKS — At five per cent, interest, as I have said. Mr. LAUDER — That was never taken into account as capital before. Hon. Mr. CROOKS— They say they hold it for us. The Hon. Mem- ber will find that I distinctly referred to it last year, as also to some fulther items which 1 called odds and ends, including upwards of $100,- 000 for our share of the Parliamentary library. It has been conceded that we have a right to a portion of the cost of that Library, and our share of it will be over $100,000. I am only referring to amounts bearing interest at five per cent. The particulars are fully given in my financial statement of last year, in which I say that as against the charge for interest which we were then under in regard to the Dominion Government, " we have these special funds, of the value "of which there can be no question, to fall back upon. We have " the Upper Canada Grammar School Fund, which yields us annually " five per cent, interest, the Upper Canada Building Fund, which "gave us interest at six per cent., and we have also one five-niuth "share of the Common School Fund." I go on to speak of other FINANCIAL STATKMENT. •23 assets — the Municipalities Fund, the Upper Canada Improvement Fund, and our share of the vahie of the Parliamentary Library. But then the difficulty that every treasurer had before, in dealing with these amounts, arose from the fact that we were obliged to pay an almost equal amount for interest on the excess of debt which last year we were relieved from ; so that us against a perpetual charge in the shape of interest to the Dominion Government under the British North America Act, these assets in the hands of the Dominion Government gave an equivalent amount of interest to meet that charge. The one claim about balanced the other, but the legislation of 1873 has relie^'ed us from the burden of this annual charge on the excess of debt, and these funds are now perfectly free — just as free from all incumbrances, iind as much under our control as if we held the amounts in Dominion debentures. The figures that I have given in connection with the Dominion, are figures which I quote from a statement in the writing of Mr. Tiangton, the Auditor- General. In addition to that, we have expemled two millions in the shape of permanent improvements, public bniii lings oi- works, and these are irrespective of any expenditure on colonization roads. This expenditure will do away with the necessity of very much further expenditure on capital account. We have paid over to railways, — the benefits of which we are now enjoying, — .1^800,000, and I have, following up the plan of last year, obtained from Mr. Moles worth a statement of the length of lines constructed, and the amounts expended. The statements which I presented last session gave this information from 1867 to 1873, and showed that a very great impetus had been given to railway progress since Confederation, involving the construction of nearly 1 ,500 miles, the conect figures being 1,484^ miles, at a cost of nearly $19,000,000. That statement must be supplemented by a reference to the statement of railway operations during the year now closed, which shows that 554f miles of railways were actually opened during the year 1873 ; that nearly five and a half millions were expended for the con- struction of railways; that the number of miles in progress, in addi- tion to those opened last year, is 450 , and that the probable sum of up- wards of 18,000,000 will be required in order to complete the works now in progress. I think, then, that I can well congratulate Hon. Members and the country upon the financial exhibit which I have been able to make to them on this occasion. We meet the House this Session wiihout our invested funds being in any way diminished, having been _, 24 FINANCIAL STATKMENT. able to avoid using any portion of our invested funds, to meet drafts upon them in respect of railway purposes and other matters, as we anti- cipated we should have to do, but having had quite enough of a surplus of our receipts of last year over the expenditure of the y^ar, to enable us to meet those drafts, which, properly speaking, should have been made on our invested funds, as the Legislature, in establishing the two Rail- way Funds, certainly intended, expecting that the money "nvested would be diminished by those amounts. After providing for these pay- ments, we meet the Legislature this year with the invested amount undiminished, after having provided for all the ordinary, as well as the extraordinary expenses of the year. That being so, and having done so much as this Province has done since it obtained a separate Govern- ment in 1867, towards increasing the efficiency of existing Public Insti- tutions, adding largely to them and supplying wants in that respect, and after making ample provisions under every head of the public service, after having, in fact, as a Province and as a separate Government dis- charged, as I think it will be conceded, by other Governments it has, all its duties with efficiency and satisfaction, having regard to those great questions of administration which, if properly undertaken and properly administered, are of so much advantage to the community — I mean in regard to education and the administration of justice — after having made full provision for the satisfactory progress of education, and the proper and efficient administration of the laws of the country, in every respect, civil and criminal, the obligation of which is thrown upon us ; after m O O o o CO H W !^. w H P3 % r FINANCIAL STATEMENT. 2& • 00 a c O Hi • »^ EO o o PI o u s o O o O o3 O C c3 03 s o H S w H O H (< P 132.9 It) o « CO o J o 13 bl3 a S a 9> l> m P. A y X W W 1 £ 2.21.3 S^ C9 [H O a CQ M U O •SOfJOM «o •8S8x3ojd UI SJJJOM UO 8JlHip S 8"S S S S 8 8 8 o © as CO S5 O S S 00 1ft Ift tH tH CO ^ (M CO o tn 428 8 8 8 8 8 8 CO ■* S iS tH m tH CO 10 O ^■~ S? 8 8 8 8 8 8 I I I o o o CO ou o CO CO 10 Ift 5: ^ sa^iiu uj mSua'i o o 13 ■a O it ^3 I ^ I o ^ -K1 CO I" f^ '? t^ O13 I fl O .S ;§ a .t2 o §^ O o 02 fll J^ H o -S 4J o fl CI ^ H a> -^ 13 o o Ph 13 a c3 o a 3 1-5 c4 o a ^ WHO d K M 8 o I s g 1 fl - = a •&-a ^ »A 26 •BJJJOAV qsiuy o^ pa.imbai •899ji?Oic[ ui S8|iui JO q^Suaq; ■t;28l «I BT[iOA\ uo a.m;ip -uadxa pa^'Bunisg 'SZSI ^T pansdo FINANCIAL STATEMENT. H O CO W O ^ H I • S ; ■1 \ I' I' I t, \ I 1 *39^ ■-,;;•■: ■/ ■^■.f.-: