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Lorsque le document est trop grand pour Atra raproduit en un seul clichA, 11 est film* A partir da i'angia sup4rieur gauche, de geuche A droite, et de haut en baa, en prenent le nombre d'imegea n4cessaire. lies diagrammee suivants lllustrant la mAthoda. 1 2 3 1 2 3 4 5 6 h' CLUB NATIONAL MONTREAL 7™ ANNUAL BANQUET 10th APHIL 1888 SPEECH OF THE HONORiLE HONORE MERCH^IR Premier of the Province of Quebec (' ]ir President, Ladies and Gentlemen, » 1^ ■< t I ' I sincerely congratulate the members of the National Club of Montreal upon the grand success of this, their seventh annual banquet ; that success proves their spirit of enterprise, their talent for organization and the ever increasing po- pularity of their association in our midst. I thank you, Mrj^President, for the kind words you have addressed to me j they are too full of praise and I certainly do not deserve them ; I can accept them, I assure you, only as due to my colleagues in the Ministery and the Legislature and as applicable to those devoted and talented young men, who are to be found in thousands in your club and in other similar associations throughout the Province, and whose generous efforts have done so much for the success of our cause, espe- cially in the two last elections for Missisquoi and L'Assomption, which terminated in two such'signal victories ; I also accept this praise for all the true hearted men who have so well aided us in the battles of the last few years and whose wise pa- triotism directs and encourages us in all the difficulties of the strife. I offer my^thauks in my own name and in the name of the party to the members of Parliament and more particularly to those public men, coming from other provinces, who have honored us with their presence here to-night. We greet with respect all these distinguished men and we give a cordial welcome to these noble defenders of our political rights. We all regret the absence of the Hon. Mr Blake, whom illness temparily keeps away from our country, and we fervently pray that he may soon return •tronger than ever to renow his labours, continue his succesan", and.'in conjunction with our brilliant leader, Mr. Laurier, secure the triumph, at Ottiiwii, of the true interests of the Canadian people. PRKJUDICES Before giving a sketch of whut wo have done siuce we have undertaken the maragoment of public iiffjiir.", as well as of what wo propose to do, it will not be perhaps inopportune to call attention to C( rtain false notions industriously spread among the public by a certain section of the Press, for the purpose of injuring the Government, by arousing against it nationitl and religious prejudices. RKLIGIOUC PIU'JUniOES. The adherents of the Ministry are recuited for the greater part from the ranks of the Liberal party, the National Cuudervatives, who honor it with their support, forming, in the Legislature at least but a respectable and important mi- nority, wuom we most highly esteem. Unable to urge against the Liberal party accusations which they consider plausible or which they would dare to avow, our opponents fallback upon religious questions and endeavor to evoke from the dei>th3 the spectre of Liberalism which has served them in such good stead as a political stock in trade in the past. I have, on several occasions, defined the political principles which I hold and which are held by all Liberals who give their support to the Government ; but the mahce and bad faith of certain adversaries who falsify true doctrines to attack and slander a large group of the friends of the Ministry, compel me to here reaffirm the political creed of the Liberals of the Province of Quebec. DISTIXOTIONS TO BE MADE. There arc two kinds of Liberalism : religious Liberalism and civil or political Liberalism. The Liberals of this Province repudiate religious Liberalism, which is t ^ ' condemned by the church, and hold to political Liberalism \^hi(h is permitted. This Liberalism is justified in works published with the imprimatur Jof the Roman authorities ; it is of this Liberalism that, amongst other autliors, speak the Revd. FathiT Ramike, a distinguished Jesuit, and Mgr Felix Cavngnis, now one of the most prominent theologians of Rome. Allow me to cite these two Doctors of Divir/ity to give greater emphaaia to tlui declaration which I thhik it right to make in order to remove all possible misunderstanding on this j.oint. •' There are Liberals, "snys Father Ra.niero," who see in thn standard, under " iiiiich they are enrolled, only its political color. Their Liberahsm consists only " in the preference over absolute power which they «onsider right to give to other " forms of government that offer greater security to the liberty of the citizen. " We do not write for this class of Liberals; for never has Liberalism, " kept within these bounds, been the object of the slightest censure on the " part of the Church." Mgr Guvagnis, formerly Professor at the Roman College and now the su}ierior of that celebrated institution, it still more explicit. In his excellent work : NofAons de Droit public naturel et eccl^siaatiqud, published in 1880, which is a comi.lete and methodical commentary on the remarkable Encyclical " Luinortale Dei," this learned Professor treats most thoroughly of the question of Liberalism and this is what he teaches : " Above all let us dispel an ambiguity. " The adjective Liberal and the '• substantive Liberalism are undefined, indeterminate expressions. They thereby "give rise to a cunf-ision of ideas, become powerful wea;ons of combat and a * favorable means of propagating error. He who seeks for truth must first of all " l•em()V^ all sources of ambiguity and misunderstanding. " Lir)eralisin has two meanings : the one good, the other bad. In the first it is " synonymous with being the friend of true liberty and not of license. From this " point of view, we are all Liberals ; no one likes to serve. Thus the word Liharal " would mean defender and propagator of the true liberty, civil and political, of a I HSSS " people without infringing on any right. Thia is a good and is Using a Liboral of " thu oldun time " At N" 255 continues this author " we have said that Libonilism may he " taken in two senses : one good, the other bad ; now wo may go furth.T, specify " and say Hint it may be divided into Liberalism, purely civil and into religious " Liberalism. " In a sense purely civil and apart from religious considuratioiis, we call " Liberal a person who is a lover of the civil and political liberty of hi^ people and " who seeks for it by means in themselves honest. He is consequently in favor of " civil equality and political liberty, saving all rights legitimately acquired." The remarkable work from which I have borrowed these quotations and which I have brought with me from Rome, was submitted by the Roman Congre- gations to the examination of the Jesuit -Father Sanguinotti, a professor of oauou kw of high authority, and that illustrious Doctor approved of it in its entirety. I do not know of the existence in our Province, at least among th) followers of the present Gjvernmont, of any other Libaralism than tha civil or political Liberalism of which Mgr Cavagnis declares himself an adh3reut. Wo aie therefore grossly slandered when we are accused of religious Liberalism, of tbat Liberalism which is condemned by the Church. ^ To such slanderers I would recall the condemnation pronounced against them by the great Pope, Leo XIII, in his Euoyclical Immortale Dei: " But, says the Supreme Pontiff, if it concerns purely political questions, the " better forms of government, this or thxt system of civil administration, honest " "differences of opinion aie permitted. Justice will not therefore allow it thit men " whose piety is otherwise well kuowu and who are fully disposed to accept " willingly thj decisions of thi Holy See, should bj accused as if guilty of a crimj " because they may differ upon the points in question. It would be still a greater " injustice to suspect their faith or to accuse them of betraying it, as we hive had " occasion more than once to regret." There is in these words a valuable lesson upon which our opponents should meditate and which shields us from the attacks which are prompted by their bad faith alone. ! •) J. And moreover I ranHt dt'claro thivt whilst favorable to politicivl Ijbonilism nuHlertite and conflriHil within ihu limits liiid down by the Doctors whom I have just cited, wo rt'spect and will kiu.w how to defend, if need bo, tho-^o conservative prin- cii.lea which are uoc(;88ary ' ■ the tran^iuillity of the State and the happiness of families, and wo onergoticaUy repudiate all those .langcroua doctrines which threat- en social ord.jr, convulrte conscionce and iocioty, expel Ood from tho schools an I only bi'gi't impious and revolutionary men. I have often said and I will agaii rspeat it to night, with tho fall assent of tht! Liberals who now surround me : that th) victory of thj Uth of Ojtobjr, I38ii. was not a Lib.-ral victory, but a National victory, and thit tho present Govoru- ment, thj K'gitim.ite cou^e^uonoo of ihit victory, has been, is still and sh ill, as long as I remain its leader, bj a Natioual Qjvorumjnt, rolyiug wiih couii Umc.i upon lIi ! honest men of both parties, viadicivtiug the honor of ihj I'loviuce atid dofondin^' its interests, healing the woun la inllioted on ic by in-ovioas g)VornmMiCs, forg it- ting the fratricidal contests of the past and seeking for the support of all man of good will, without distinction of raie, party or religious belief, in order to coa- soUdate our institutions and to prepare flur country for the realization of th ^rand destiny which th f near future opens out to our people. RACK PUEJUDICE8. The enemies of thj National party predicted in 1836 thit our tri- umph would be the ruin of tho English speaking element* ; if they wore to be believed, we w^re, on attaining powjr, to abjlisli thi Protestant religion, tc inter- dict the use (.f the Eoglish laug mg3 in tho public schools, th) Legislature and Courts of Justice, drivo all th>. E iglish out of this Pr )vince and confiscate their property just as was done in th3 past to the Acadians ; th?re were some, inleed, who went so fir as to believe thit w ; were to dethrone the Queen of Eiiglanl and to make war upon the King of Prussia. These good souls must now be reassured ; we have now been in power more than a year and none of those dreadful things have happened, thank Heaven ! g'.ryigr ffw^ ff 9 w 8 Queen Victoria is still upon the throne of England and not a single Nation- alist, to my knowledge, has yet conspired with her European enemies to dethrone her. The King of Prussia is dead, I edmit, but I beg of you to believe that the Nationalists of this Province are not at all to blame for an event which is a subject of mourning to the Oeiman race all over thij world. The Eiiglish language is still spoLen, with talent and success, in the Legis- lature and Courts of Justice ; Protestant churchts and Protestant schools are still open ; in tbt.'ir churches distinguished ministers still eloquently preach the doctrines which constitute their religious belief, and in the schools Protestant children still learn to venerate the faith of their fathers and to love the glorious Q leen who has reigned over us for the last fifty years, enshrined in the affections of 200 millions of subjects. We have here to-night seated around this table distinguished men of different racej and creeds, who have come from all parts of Canada to testify by their presence to the intelligent harmony which reigns in our midst and to the desire which wo all cherish io live in peace on this free soil of America, forgetful of the sanguinary battles of the past, and laboring, shoulder to shoulder, to create a great Canadian nationality. It has been reproached against me that when forming my Government, I dit not give a portfolio to an English Protestant ; those who thus reproach me are the very men who so well succeeded in fomenting pre- judices, in the hearts of their coreligionists, as to persuade the electors of the Eastern Tuwiiships not to send a single member from their midst to support us in Parliament and those of Montreal West to reject the only Liberal Protestant whom the metropolis was in the habit of returning to Piwliament. Uuder such circumstances, we may well, it seems to me, characterize as hyiocriticai aiid frauduieni the jeiemiads of certain Protestant newspa;.ers, whose owners were more depressed by the losc of patronage of which our success deprived them than grieved at the ])retended injustice done to those of (heir race. For it must not be forgotten that Uio gentlemen of the Gazette, hv instance, are more attached to their jobs than to their Protestant faith and that they would willingly sacrifice Lulher, Calvin and even William of Orange in return for the fat contracts which Messrs Eoss and TaiUon were wont so generously to award them. Let Protestants therefore relieve their minds : the Messrs White, of the Gazette, 9 are the only Protestants whom our Government has as yet sacrificed and we do not proi^ose to sacrifice any others. We desire on the contrary to continue to accord justico to all ; we found that it was not just that the Protestant Chaplains of Prisons ani Asylums should have a smaller stipend than that granted to Catholic Chap- kins, therefore we put an end to the injustice which the Tory Governments had long continued to commit in that respect; we considered ti^at we should keep faith with Protestants as with Catholics, and lor that purpose the National Government leturned to his Lordship, Bishop Bond, that di.tinguiielied man whom all respecf and to his associates, for tha purpose of founding a Protestant Asylum, the Leduc Farm, which had been promised but which was never given to them by our Tory predecessors. That properly was originally valued at $10,000, and wo paid over that sum as we had been authorized so to do by the Legislature ; but now that my friend and late colleague, Mr. McShano, has succeeded in obtaining .$18,000 for it, we propose to hand over the difference to His Lordship, Bishop Bond, and his associates, and thus cooperate w'-^'u them in the philanthropical work which they wish to carry out. And if up to this, circumstances have prevented Protestants from occupying a satisfactory position in the Government, I may be allowed to say that those cir! cumstances have changed and we will soon be enabled to render in this res- pect full justice to the English people of the Province, as we have already done in other respects each time that the occasion offered. i ', THli IKI.SH CATHOrjUS. A recent an^ rogr>,ttable incident, which entailed upon me th.s loss of a col- league whom I much esteem and who still remains my friend, despite all that may be said, may have caused my Irish Catholic fellow citizens to fear that their rights might be sacrificed in the ftttuiv. This feeling is easily understood, but^not warranted. I am the friend uf the Lish Catholics, and always ready in the future as in the past to see that their rights shall be respected. I defended them in the Legislature, when M. Tuillon, in his subserviency to Sir John, was betraying then ; I gave them their share of ministerial favors, while khe Tori38 systematically ignored them ; 1 was the first to grant them a i 10 real representative in the Government of the Province; and if circumstances have modified their position for the present, I have reason to believe that before long they will again assume in the councils of the nation the place of which the voluntary resignation of Mr. McShane has temporarily deprived thf-ni. The Irish Catholics ! we are their natural allies as the Tories are their ua- tuial enemies, and in that grand old land of their forefathers, it is enough that an Irish Catholic should become a Tory to be denounced as a traitor. THli NATIONAL CONSERVATIVES. Our opponents bear us, a most particular interest and, in their kindly soli- citude, they loudly proclaim that divisions reign in our ranks, that the National Conservatives desire to abandon us, or that the Liberals want to get rid of them. All this is pure fiction ; the Liberals respect the National Conservatives and the most perfect harmony reigns between all the members of the Ministry. We have the greatest esteem for the Honorable Messrs. Garneau and Duhamel, the two distinguished leaders in the Cabinet of that valiant band of Conservatives, who, hearkening only to the call of patriotism, broke all the ties of party and tendered us their hand in 1886, pledging themselves to work with Ui for the redemption of the Province. They have kept their work and we shall keep ours ; they bore the burden of the day, and it was but right that they should enjoy the reward : they have been loyal to us, and we have been and will remain loyal to them. They have rights as we have rights ; now, as it is the first duty of the leader of a political party to respect the rights of all, the National Conservatives have nothing to feai', I will see that their rights shall be respected. THK INTEUPKOVINCIAL CONFERENCB The first article of the National programme, promulgated in 1886, was " the vigorous maintenance of ihe principle of Provincial autonomy against all infringements, direct or indirect. " In order to follow up this article of our programme, we took the initiative towarps the holding of the Interprovincial Conference, which met last autumn in I 11 the city of Quebec. Of the seven Provinr rming the Confederation, five were repi-esented and I am happy to declare thi. most cordial harmony constantly prevailed among the delegates. The under.-, ig was complete ; all the resolutions relating to the proposed amendments to the astitution w^ire unanimously passed. These resolutions were ratified by large majorities in the Legislative Assemblies of Ontario and Nova Scotia and almost unanimously by that of New Brunswick ; they will be ratified by the Legislative Assembly of Quebec and by the Legislature of Manitoba, so that we can affirm without fear of coatradiotion that the labors of the Conference are approved by the immense majority of the Canadian people. The total population of Canada in 4,324,810 souls ; now, the five Provinces whose delegates have accepted the resolutions of the Conference, repiesent 4,110,014 of that total. GENERAL OBSERVATIONS ; Before entering into details concerning the labors of the Conference, permit me to call your attention to one fact which deserveu to be noted. When the National party was founded, it was contended that its existence irould arouse against the Province of Quebec religious and national prejudices throughout the other parts of the Confederation ; we were taunted with isolating our Province and thus exposing it to the loss of all the influence, which it had and should have under the political system governing us since 1867. Well, gentlemen, I would now ask you : what about this isolation of the Province of Quebec ? where is it to be seen ? where are those religious and national prejudices which were to arise in the other Provinces from the formation of our National Party ? Look at the labors of the Quebec Conference, examine its results and tell me, was there ever a time when onr Province was more respected by the other sections of the Confederation ? Cast your eyes over the list of delegate.* who attended the Conference, called by the National Government of Quebec, and, tell me if the formation of the party which carried that Government into power really had as a result to arouse against us in the other provinces prejudices of race or religion ? Toll me has our Province ever enjoyed greater prestige, more infltience ? We proclaimed our rights as men of spirit, and our conduct has been f 12 ai.proved of and seconded by all true men, by all the real friends of Federal institutions in Canada. If comparisons were not odious, as says the proverb. I could easily show a contrast between the position we occupy in Canada under the National regime and that which wu occupied under the admiuistratious which have preceded us. The English speaking population is too jealous of its independence and of its liberty, not to despise men who would be .0 craven as to allow them- selves to be crushed by usurpation or tyranny, and not to sympathize with us who have acted as citizens, proudly and energetically vindicating our rights. AH the delegates, distinguished men every one of them, departed full of admiration and enthusiasm for our Province and its people. Most of them were accompanied by their wives and with these ladies they met the elite of our society m those sympathetic social galborings to which the farmer, the mechanic, the merchant and the professional man were invited, .0 that the delegates had an opportunity of meeting the various classes of our society and of admiring their intelligence and politeness, and returned to their homes with a high and correct idea of our province, of its resources and its future. CONTRADICTIONS OF THE TORY PRESS It is an amusing pastime to read all that the Tory Press has published about the Conference. They commenced by representing if as a picnic, an unimpor- tant meeting, a business which could only result in the discomfiture of those who had organized it. The more audacious did not hesitate to say that the Ministers from the other Provinces would not accept our invitation and would decline coming to Quebec. Then were our worthy Blues in glee and jubilation ! But our invitation was cordially accepted by the Governments of all the great Provinces and then the jubilation of the Bleus sensibly diminished. To keep up a little countenance, they fell ba«k upon the uselessness of such a step; but deception was again in store for them : the Boards of Trade of Toronto, Montreal and Quebec, composed of business men who are the most in- fluentialand wealthy men of those great commercial cities, addressed the Oonfereaoe. 13 even before its first meeting to obtain through it the assitiiilation of the laws respecting the liquidation of insolvent estates. This alone was a manifest proof of the usefulness of the Conference and completely demolished the silly carpings of the Bleu press. Crushed once more on this score, these gentlemen gave up their sneering tones to throw themselves into wild outburst of fury, and on the very day of the meeting of the Conferonoe, with the tact and delicacy, of which I leave to it the full responsibility and merit, the Montreal Gazette designated under the name of Interprovincial Conspiracy a meeting of delegates from the Governments of the five great Provinces of Canada. This way simply diappointment gone mad. And yet its discomfiture was still not complete, for the newspaper, which then called us conspirators little dreamed that fifteen days later, it would be com- pelled to approve the greater portion of the result of that conspiracy. Indeed, on the 11th of November, the Gazette was obliged to eat its own words and to admit that the woik of the Conference had been useful andfuitful, after having previous- ly represented it as a ridiculous pic-nic. Allow me to quote its own words ; " Nevertheless, " it says, " it has dealt with certain questions within the legitimate scope of a Provincial Conference, such us the abolition of Legislative Councils, the confirmation of the powers exercised by the Legislatures since Con- federation and in regard to which doubts have arisen, and the question of the boundaries of Ontario and Quebec. These aae all important questions upon whloh the Legislature, at the instigation of the Conference, cxn pertinently pronounce and with respect to which there may be advantageous legislation for the people." If we did conspire, at all events, it must be frankly admitted that we con- spired for the good of the people ; even the Gazette has confessed this. But let us continue the quotation : " Many of the resolutions relate to matters remotely connected with the " principles of the constitution and the free working of the Federal system, and as to " which an agreement can easily be u- Ked without disturbing the foundations of the 14 ^' Federation. In this class, it seems to us, fall the resolutions bf aring on the subject " of the appointment of magistrates by the provincial authorities, the receipt by the " provinces of fees paid on legal proceedings in the provincial courts, the power af " lieutenant-governors to issue commissions to hold couits, the abolition of Legis- " lative Councils and the ownership of Indian lands by the provinces in which " they are situate, although this last question may bf settled possibly by appeal to " the Judicial Committee of the Privy Council by a decision based on the B. N. A. *' act. The power of pardon of persons convicted of an offence against provincial " laws is now exercised by the Provincial authorities, but if any doubt as to the " jurisdiction exists, it may well be removed, and the desirability of determining " and establishing the bourdafies of Ontario and Quebec will be generally recog- " nized." •• These are all subjects, albeit of no grave moment, that may be advanta- " geously settled by mutual agreement between the Federal and Provincial " authorities, without disturbing the fundamental principles of the constitution, " impairing the proper jurisdiction of the Pariiament of Canada, or displacing the •" machinery of government." There can be no doubt, and in this we agree with the Gazette, that many of these questions might be settled by an understanding between the Federal Gov- ernment and the Provinces ; but as the Federal Government has always refused to come to such understanding, we were constrained to adopt means to attain our ends without its concurrence. Allow me to quote also the testimony of another Tory newspaper, one of the most hostile and unjust towards us ; I refer to the " Star. " This is what it said on the 10th of November last, in publishing the resolutions of the Conference : " They deal with subjects of great importance and are worthy the careful " consideration of every public man and every journalist oiF the Dominion. Many " of the conclusions arrived at by the Conference will provoke controversy, but " there are some of its suggestions which will meet with the hearty approval of the " great majority of thinking men. The principal matters treated of in the resolu- " tions are disallowance, the constitution of the Senate and provincial subsidies. " The establishment of a tribunal to pronounce upon the constitutionality of laws e subjeot )t by the power af of Legis- in whick appeal to B. N. A. , irovincial as to the :ermining ;ly recog- advanta- i 'rovincial • istitution, • ' lacing the 16 " enacted by the Federal Parliament and the Local Legislatures would, we think, " have the effect of making the wheels of the Confederation machine run more " smoothly ; such a tribunal would prevent many bitter and irritating disputes, " end would settle such as might arise, speedily and effectually. " This reluctant testimony amply atones for the attacks on us which the calling of the Conference had evoked, even before its object and the character of its work were known. When journals like the Gazette and Star, the known organs of what is most unjust in the English Tory party, are obliged to pay such an homage to our work, it must be admitted that the work of that Conference must have been useful, fruitful and of a great advantage to the country. There are only three joints on which these journals are not willing to adopt the conclusions arrived at by the Conference ; these are the resolutions regarding the Senate, the power of disavowal, and the readjustment of the Federal Subsidies. lat many eral Gov- rs refused to attain »er, one of hat it said ence : he careful [1. Many versy, but )val of the he resolu- subsidies. ty of laws THE SENATB As to the Senate, we simply ask that half of that body be appointed by the Provinces respectively and the other half by the Federal Government, but only for a limited term. Such a system would secure to the Provinces a certain measure of protectiou against the encroachments of the Federal power and would frue that Chamber of the partisan character which distinguishes it as at present constituted. I can hardly see why the Bleus should oppose such a reform ; iu 1854 when the constitution of the old Legislative Council was modified, the Tory Press pronounced in favor of an analogous system, but one that was more radical in cha- racter. Thus, the Moutreal Gazette, which was then as now the organ of the mo^t ■ fanatical section of the Tory party, desired that the Legislative Councillors bhould be elected by the Municipal Councils, that is, it desired that the composition of the Legislative Council should be absolutely outside of the control of the Crown. The resolutions of the Conference do not most certainly go that far, and if the Gazette could be logical, it cannot do otherwise than approve what we propose. 16 THK LEGISLATIVE COUNCIL The resolution relating to the Legislative Council reproduce the idea which expressed on many previous occasions, more especially in 1883. I declared in the House that on principle I was favorable to the abolition of the Council, but that such a reform should not be effected until it was demanded by the people. That IS precisely what is proposed by the Conference and if that amendment be adopted, the constitution of the Council will not be changed or its abolition effected except in accordance with an address from the L.gislutive Assembly, supported by at least two third, of the people's representatives. The resolution of the.Conference. it must not bo forgotten, is permissive, not imperative, and conse- quently nothing obliges the Gavern.nent or the Legislative Assembly to take any action in the matter, at least for the present. VETO POWER As the aim of the Conference was to find meaas to maintain intact the provincial autonomy, we naturally were concerned about the powor of disavowing provincial laws, a power so unjustly exercised for the last few years by the Fe JeiJ government. Carried away by party spirit and the mania for centralization the Ottawa Government, on many occasions too well known to need special mention' here, has interfered with the action of the Provincial Legislatures, and encroached upon the domain of their jurisdiction, by disavowing laws passed by these Le- gislatures, though fully within the scope of their attributes, or by legislatin.'on m .t- ters withm the province of the Local Legislatures. It is undoubtedly true that on many points, for instance, the License Law. the i'rivy Council has checked those encroachments and has decided in favor of the Provinces ; but during all these law proceedings the Local Governments have lost considerable revenue, and it must therefore be apparent to all men of sense that it is a matter of the greatest im- portance to putan end to a state of things, which is so prejudicial to every interest and so aangerous to provincial automony. 1° o^der to mislead public opinion and to prejudice it against the work the Conference, the meaning of the resolutions relating to disavowals has c 1 ♦ c 1 ♦ 17 been grossly misrepresented. All that we ask is that the power of disavowing ■piovincial laws shall belong exclusively to the Imperial GoTernment, as is the case, with laws passed by the Federal Parliament and as was done before Coi.\federation with laws passed by the Parliament of Canada. This is the only way to protect the Provinces against the arbitrary interference of the Federal Government with the right which they have to legislate as they please on matters within tho sphere of their jurisdiction, and which right they never intended to yield up to ihe Federal authorities when their Legislatures were created. Moreover, it must not be forgotten that now we are only concerned with the right of veto to be exercised for the purpose of protecting the general interests of the Empire or of the Dominion, and not in the least with cases under Provincial laws which would be ultra vires or outside of the jurisdict m of the Legislatures. . These cases, which are the most important, the most numerous, and which interest US the most, are, by another resolution, submitted to the decision of the Courts. There could not be any serious question of leaving any longer this right of veto to the central power. Simple common sense teaches us, that, on this point, the Federal compact contains a fundamental error. The Provinces and the Dominion are two contracting parties in this compact, and each of them has its rights and duties, and should, if not desirous of violating the very basis of the contract, remain within the limits of its attributes. Now, who should decide if one of the parties ia violating the articles of the contract ? Surely it must be a third party and not one of the parties themselves. And yet to-day it is the Dominion which decides without appeal that the Provinces have violated the compact, and the Provinces have no means of reaching the Dominion, if it has been guilty of usurpation of power. Evidently this system is too absurd and too unjust to be any longer tolerated. It is said that this power of disavowal is exercised in England upon the report of a third class clerk in the Colonial office. It may be so ; but, in that case, the Federal authorities, whose laws are thus imperilled, are in duty bound to complain. Do they make any complaint ? No ! they are therefore content. Ia there then anything astonishing in the fact that the Provincas should demand a t?l 1 I \ .> 19 the no8t litter orit^dims on the part of the Blea praes. Tb6 inspirers of thatipfOM ar,ho,, what won"d tally to snatch from them as a direct tRv a narf r.f ,u ■ • p "'u ♦T. J , T. . P^'^'^ °^ ^^e" earnings ? What woulH 1^;::"°'— ^ ^™'' '» — -^ won,L.i,at::t We mn,t do the very oppo,ito ] make living easy and cheap, that i, true tate,n.a„,h,p , now especially when political troubles, revolutions ,ad .'re,;: the honest and peaceful farnrer out of old Europe I now when the closing fla- nnfec ures .n the Kew England S^te. force our hrethem in the United iLJo regret their absent country and to long to return. No ! we shall have no di'rpnf tnYofi'^v. ^ »rpr,nf f.u. . , '^ °° '^^^ect taxation, no new imposts. Fortunately, we «n,e and patrrofsm suggest to us, to avoid ,ueh a misfortune, and it is for that r^on that we wish to compel the Federal Treasury to return to he Prov „1 1 .f that wh,ch we have conceded to them and which we require. "^ ....id\:::rXi:oftrre::a:i:r^--- -^^^ On this point, the Blue D3etors are much divided. Some eUim ,.,,. r v. ^er.«ed the interest of my P^vince, whilst others accuse roftlgL::: the pdlage „, the other Provinces for the beneflt of Quebec. As you sL T" ! gt^ve case and that you may see what we must think of the whol Itte: 1 i^thrrueC""' """" -'-'--'' --' "'-^-^-- onrProvL'ee."" "^ '"' ^"" »"'"''' *- "'^ '- - with treason toward. The Montreal 0.selt.- say. that " the resolution adopted by the Conference w^ evidently drawn up by the Ontario delagates. seeing that it does not propose in the division of the subsidy any change a, wished by Mr Mercier.- The Courrier de SI. Byacinihe goes further: -This mean, in plai. 43 " French, this paper crios out in a prophetic spirit, that the financial changes " which will be made by Mr. Mercier's Convention shall be so made for the profit "of Ontario and not of Quebec, which has received its share of the favors of the *' Ottawa Government. " . • As you see, it is clear : I have cast myself with a trap and will lose all. In Ontario, the Tory creed is altogether different ; it i. not Q.u.b.c which is going to suffer by the proposed amngement, but the neighborinc^ Province. This opinion has been most emphatically expressed by Mr. Meredith, th. leader of the Tory Oi.position in the Legislature of Ontario. Allow me to cite his own words : " Biit what will be, he says, the effect of this resolution ? It will b? thi3 that the provinces which are not able to pay .for themselves, would, according to kke hon. gentlemen opposite, have their burden borne by the other provinces. It^ is upon Ontario that the weight will fall, it is this province that will be the sufferer.* This worthy Mr. Meredith, with a good faith which I do not envy him, even accuses mty of laving played upon the hon. Mr. Mowat. " My hon. friend opposite (Mr. Mowat). he adds, wanted glory and the Premier (of Quebec) wanted hard cash. The Premier got the hard cash and the Attorney General the glory. I never knew a case in which Mr. Mercier was ban- krupt Mr. Meicier said to the Attorney-General : " If you want one of these great questions worked out, just come down to Quebec and give me the money and all will go right. " Mr. Mercier got the money. " But note, please, that it is not for me, that money, but for the Province and the tax-payers. You see now, it is quite clear, it is not I who have fallen into a trap,it is the Province of Ontario. But in truth, no one h vs fallen into a trap ; we met to transact business, and we transacted our business as friends, as loyal, honorable men, and we have laid the basis of an equitable arrangement, favorable to all the interested parties, thanks to the intelligent concourse which our friends of Ontario and the other Pro- vince have given us. /A 24 But in any case, as you see mv .a. • ftom two difcma q«ar J I r„ °"''"? "°'' «"^''-' ™™»g down „poo „,e of tie I„to,p„vi„dal eLJJZ "T T "' '"^ "'"™ '» *'^ -tter the initiative belong, of rigU .omT M ^ """"' "'"^ '"'"''^' ^"' "■" hecon.ing seriously „„„p,i,,,,„ j^.'T') ^°" "'" ^^ """ the matter i, ■= - - --t '» .. . w„o i. ,. .4 ^;::z'i z ^f;:::::: "'^ ^ " -And finally in 1882 T ^ iy*e «..«■ , T„r;,„„:;r:„^;:ir,?:r''-°"''"'»->^a..ac.. 'he ifon*, another Tory journal N„w ,!r "^ ! "''" "«'""=' "» """el's by agreed upou ,I.i, p„i„t ,„„ j^ .^ '^"'='' '""t the leader, of all parties .re " ceutml governureut nottoao,nie c to dT"^" " '"'°"" '' """ '^ '"' "^^ " of the people. Mr. Mercier beZirf "'""""^' '^ "^^ """"'"oua voiee " -eived by the liberals. ' '"'°" °' ™"" ' »'-^i'- 't caunot but be well •• to attach Mr. Mercier who in ,' ti':!' "'"^ '° ^» » ^'^ " "- "Pon wUicU "*™gth the actio,, of the Mou^eal ^HZIT '"'""" '" '''°"' "'■"■ »" '■« " We Sin Willi i.Joasure tli^ Ileml,! fai-; • ^ "f«ing .h„ o„j„cti,>„s raised by ,het^ 1 ^ '"" "■'" '"■ ""«' »"" - member for St Hvacinlhp «r. u- '^'^^''^^ expr.^ssed by the ' 0' opiuiou i„ ,he i:::,: „; ;:r ""°" *"^ "'™ ^"^^ ^^ - ■"^-» " Ft^i-, Slip, osiiig tliHt the subsidies shnnl,! h • - --..e result, the c„.,u.,y Oft':::;:::---: 26 " the surplus, coming from excise and customs dues, which are paid the consumers, " that :s by everybody.ViU be indirectly reimbursed to the contributors. Would not "this be one of the best methods of diminishing the public burdens, because ' with the money so obtained, the Local Governments will be enabled to establisk •• an equihbrium in their respective budgets, all of them more or less heavily burd- ^ " ened. with the exception of that of Ontario. As stated by the Herald, the " Ottawa Government pretends that it is anxious to diminish the taxation " bearing down upon the people. Well the population of this Province is " threatened with direct taxation, and by an increase of the federal subsidy this " calamity may be averted, without changing in anything the fiscal policy of the " " party in power " Nothing serious can be opposed to this view. We therefore trust that it " will prevail in the Executive Council and in the Parliament of Ottawa. We ^ " have already made the remark that the United States before the war have given in " this respect a good example which ought to be followed in the interests of all the ^ " Provinces and for the welfare of Confederation itself. " When these opinions were written, the Monde was as much Tory as it is . to-day, but it had at least intervals of intelligence and patriotism, during"which it was willing to render justice, even to a political opponent. I regret that now I , am deprived of the pleasure of paying it the same compliment. At all events, these contradictions of the Blue politicians, their petty civil wars, prove that in justice and equity we are right in demanding a readjustment of ^ the Federal subsidy. That is enough for us, and for my part, I concern myself - very little with those ridiculous criticism, ur with insults inspired by disappoint- ment and party exigencies. At all events, I claim for the National Government the honor of having first . takon Ihe initiative towards serious and practical means of putting an end to the policy of centralization pursued by the Federal Governmct and to maintain the ^ independence of the Legislature, and of having so far carried that movement, as to cast consternation among all the enemies of provincial rights and among the partisans, secret and open, of Legislative Union. This is abeady a success of which we may well be proud. 2« IMPKUIAL FEDERATION This is another project of the Tories aimed at destroying the self-govein. nient of the Provinces and to force us in a disguised form into Legislative Union. I need not tell you tint in Canada, it is Sir John A. Macdonald who is the 8oul and inspirator of this anti-provincial movement. Seeing the Provinces organizing themselves to resist the encroachments of the Federal authorities, he wish to thwart their efforts by shifting the question to another ground. Thoroughly convinced that popular sentiment here is opposed to him, he would destroy that sentiment by associating with himself in his project? the most influential public men of England. For, mark ray words, it is in England that wc must seek the centre of action where are prepared the plans which are destined to rob us of the institutions which we so justly cherish. The partisai's of Imperial Federation are becoming bolder every day They have just proclaimed their sentiments in a striking manner and they have succeeded in making of thcii dream a question of actual poUtics, through the no. mination of the new Governor-General, who is an avowed advocate of Imperial Fe- deration. In fact, Lord Stanley has given it to be understood that he eomes to Canada with the fixed intention and the firm determination to secure the triumph of that cause. That is to .say, that he is coming here like Lord Durham in 1839, to complete the work of national destruction begun by the author of the famous report, which is so -well known to all. And, La Minerve, the French organ of the Tories, compleasantly reproduces the utterances of Lord Stanley in favor of Imperia Federation and seems to welcome him, especially because of the opinions expressed by him on that subject. The fiat has thus gone forth, and all the French and English Tories must be in favor Imperial Federation. T\: situation is serious ; w(i are confronted with the greatest danger to which our political organization has ever yet been exposed ; we are to have a regime forced upon us, of which the consequences for us cannot be other than most disastrous. Down to the present, we have' drawn our life from the colonia system ; now, we are to be compelled to assume, against our will, th« responsibilities and perils of a sovereign State, which will not be our own— to t If-govein. ve Uniou. vho is the Provinces !S, he wish loroughly 3troy that ial public . seek the to rob us jvery day ;hey have ;h the no- perial Fe- ;o Canada »h of that . 1839, to te famous an of the 'Imperia expressed ench and danger to to have a ther than e colon ia will, th« own — to 27 expose ourselves to the vicissitudes of peace and of war between the great powers of the world, and to the rigorous exigencies of military service as it is practised in Europe ; we are to be saddled with a political system which, by means of the draft, may scatter our sons from the ice of the Poles to the burning sands of the Sahara, an odious system that will condemn us to pay tribute of blood and money and tear from our arms the young manhood, who are the hope of our country and the consolation of our old age, to force them into distant and bloody wars which we can neither prevent nor stop. We, Liberals and National Conservatives, are decidedly, energetically op- posed to this change and the National party of the Province of Quebec does not want it. We will fight with all our strength against this machiavellian project, and if its promoters ever succeed in imposing it upon us, it will only be by force and by guile. CONVERSION OF THE FLOATING DEBT One of the articles of the programme upon which we ran the elections of October, 1886, promised "the immediate adoption of energetic and practical means to improve the financial situation of the Province." We have realized this portion of our programme, by converting the floating debt, into consolidated debt, we have raised the credit of the Province in addition to relieving the budget of a considerable sum, by reducing the rate of interest on a good for portion of that debt, which was contracted by our predecessors. When we came into power, the amount of that debt, or the sum total of the debt then due and of the liabilities maturing at comparatively early date, came to more than three and a half millions, without counting the four millions of contested claims, which we refused to recognize, but of which unfortunately we will be obliged to pay a large amount. We could not count on the ordinary revenues of the province to discharge this enormous burthen of liabilities, as for several years the balance sheet of our ordinary operatiens had shown deficits running up into more than a million of dollars. It is very true that the Treasurer of the Ross Government had announced a surplus of receipts for the year 1886-7 • but on the other hand, it must be believed that this prediction was only a work . t ^8 of imagination or an electoral trap, since the net result cf that fiscal year is summed up in a deficit of over three hundred thousand dollars. There was therefore no other adequate resource left but that of a loan, to enable us to honor the obligations of the Province and, to that end, the Legislature authorized us to borrow three millions and a half at a rate of interest not exceeding 4 per cent, for the purpose of paying off the debts or of carrying out the obligations contracted by our prodecessors. There has been a good deal of talk about this loan, and, after all, its history is. very simple. Very naturally, we asked for tenders in order to secure for the Province the benefits of competition. The lowest tender received was that of Mr. James M. Nelson, of New- York, who offered to take our bonds at 94% firm and at S^^inte- rest. This tender was accepted in preference to the others, because it was much more avantageous, and my honorable friend, the Treasurer of the Province, placed himself in communication with Mr. Nelson, to conclude the transaction. On the ■ 16th August, a contract was passed stipulating that Mr. Nelson should take the bonds on the terms. I liave just mentioned, and to guarantee the execution of this contract, he should deposit to the credit of the Government, in the Chemical Bank, at New- York, three millions and a half in securities of the United States Government or of the City of New- York, and this, before the 23rd August, with the privilege, to the Government, to take possession of these securities, in the event of the $3,290,000, proceeds of the loan at 94 %, not being paid in cash upon delivery of the bonds of the Province. Fur reasons which I will specify in a few moments, Mr. Nelson was unable to execute this contract and on the 3rd September, another was entered into, stipulating the same terms as to the price of the bonds, but substituting for the one previously agreed upon, a deposit of 8100,000 in money, which was to be forfeited to the Government, if Mr. Nelson failed to pay over the price of the bonds within the ten days following the notice of the deposit of the debenture with the Chemical Bank. These statements fully bear out the correctness of the declaration which I made lastfall at the Cavallo Hall. At that date, the contract existed as I have . t ■ Tl ""• f '"r ""' "°™' °'"' " ™ "«°'"- ""« '"P'-'te* deposit was »fety;we,„.3tcd„p„ua heavy deposit, „„eh too heavy, espeeiallvLo^ ! b.t to ™„„sta„ces wi.h which it is H,ht the p„h,ie sho„m he l!:^^^! ...Jp-::;:;!::"'"'^"' — >.-.vi„ee, ... p...,,, 1° The almost sudden deaths of Messrs Ro^s snrl n •.. . wealthiest ™»hers of the Syndicate represented h^rktndt "' "" ..* upthe Sy„d«. and .nde.ed it in.p„ssih,e r^: it I ^^ .t^l^f 2° The sudden and unforeseen order issued bv iha n .oi.d states to ins^nee co™„anies, .,.., ll ^I 1 eTdl'i ^^ f- the secnnues then forming their deposits, which occasioned an unnex " t d .n the .notation of those bonds and pnt at a premiunt al s ^ 'T American Government : securities of the Political'" ^° "'T"! '"" "°""°'" "'"^^""°" °f -'«" '-«'"ti«"3 and Poht,c^l personages, hostile .. the Government, who did all in their power to pi .bstacles oa o,:r way and to thwart the sncces, of o„r negotiations. at New y Tl "' '* """""' '" "^ '''^"' '" "-^ '° «-' »" negotiations at New-York : deprecating the Province, representing in a false ii.ht the n,, ! ,>, ,, , '^"^°'^' ""^"'^^^Pywas^et upon our movements auJ they caused^to be published fanciful reports of our doings in order to alarm pubH opinion and to turn the American capitalists against us. ^ so ... 1 Ih.. To throw the enemies of the province off the spent and to defeat tbeir disloyal manoeuvros, we allowed it to go uncontradicted that we M jresumed negotiations at New- York, and while a certain pi^rsonage well known in politi9al spheres was patriotically giving himself a world of needless trouble to wreck our pretended attempts and was having it proclaimed through the Blue press i^ak we were on the. high road to be skiuned by a Wall street Jew, we were secretly and swiftly making excellent arrangements with a powerful French institution, the Credit Lyonnais, and I left abruptly for Europe to complete those arrange- ments. The doctors had advised me to go to Florida end I was [about to leave for that place, when the rumors of war and the alarming reports touching the health of the Emperor and Crown Prince of Germany, induced me to take myself the contract to London, to have it ratified there without delay by the authorities of the Credit Lyonnais. to settle with ihem certain objections which their agent had reserved to them the right to make and the solution of which might be very diffi- cult, if not impossible, through the medium of correspondence. I cabled my honorable colleague. M. Garneau, who had retained his passage at Havre, to wait for me in London, as I desired to avail myself of his knowledge, experience and business relations, in the settlement of so important a question. By leaving suddenly and secretly, I made it impossible for the enemies of the Province to further hurt us, and while the personage, of whom I have already spoken, was scouring the streets of New York in search of my pretended Jew "Solomon, " as he was dubbed by the " Monde", and to ascertain my movements and proceedings, I was crossing the ocean to."'.Londou where, within four days after my arrival, Mr. Garneau aud myself closed the negotiations and placed our loan beyond the danger of the fluctuations which the death of the Empuror of Germany and ensuing complications were soon to produce on the market. Eight days afterwards, Mr. Shehyn received his first million, and on the first of the present month, he drew the balance, the three mUlions and a half being now placed to his credit in the banks of the Province. I may conclude these details by stating that the services of*Hon. Mr. Gai- neau were very valuable to me in London and that I was delighted with the loyal 1 • ), I i^feat their id jresumed in politi9al 3 to wreck e press that jre secretly institution, 3se arrange- to leave for g the liealth myself the )rities of the ' agent had 3 very dif&- ; cabled my ne, to wait perience and e enemies of lave already 3tended Jew vements and ir days after [ placed our Emperor of rket. Eight 5 first of the f being now on. Mr. Gai- rith the loyal ^ ^ s ), »1 •nd honorable conduct of the Credit Lyonnaia throughout the whole bu8ine«8. fw'm beginning to end. • ' DETAILS OP THg LOAN We, thu«. sold our bonds to the Credit Lyonnais, one of the most respec table and powerful monetary institutions in the world. Our securities were l^ken at 99 and at 4 par cent interest. The ordinary charges, expenses of issue, stamp. Ac. reduced the proceeds to $3,377,500.00 payable in American gold, at New- ITork, which is equiiraleat to 96j per 100. This is by far the most advantageous transaction which the Province of Quebec has ever yet concluded. Oar four 5 per cent loans only produced an average of 97.19 per 100 or ,97.19 per $100. Our operation produced the same result, loss 65 cent, per hundred dollars, although the rate of interest was a fifth lower To show a return equal to onrs, our predecessors should have obtained from the,r 5 per cent, about $115.00 per $100.00; but, instead of tl«t, they only got ijfyT.ly. • ^ Here, it seems to me. is an advantage which is not to be despised, and yet the Bleug are not content ! But. why are they so exacting to-dav whil. i. ormerly so easily satisfied, when their friers ^e. ^Z^^J^^ZZ: financial blunders that we are now forced to convert their debts in order to save the Province from the consequences of their ruinous operations ? COMPARISON WITH THE LOAN OP 1880 Now. to be more precise, let us compare our loan with that of 1880 nego tiated in France by the Chapleau Government and represented by the Bleus'as the most magnificent of financial operations. That loan bears interest at 4^ per cent and was for $4,275,853 34 It onlv produced $3,772,717.00. or 88.23 per 100, that is Mr. Chapleau issued bonds of thi Provmce to the amount of $4,275,853. and he received $503,136.00 less than the Province wdl have to re-imburse. In oth.r word,, Mr. Chapleau paid a J ner . 32 cent of interest more than we are paying and yet obtained from his loan $8.27 per $100 less than we obtained for ours. Taking the relative par values of currencies, the proceed,* of the Chapleau loan is equivalent to a par loan at 5.20 per 100 and ours to one at 4.20 per 100, which makes a difference of one fifih to our advantage. Let us see what these differences represent in favor of our transaction ! At 88.23, the yield of the Chapleau loan, ours would only have realizi'd $3,088,050, while in reality it h?s produced $3,377,500.00. We have therefore gained for the province $289,450.00 on the proceeds of the loan. At 4J per 100, the rate paid by the Chapleau Government, the interest on our loan would amount to $157,500 per annum, while, in point of fact, we are only paying $140,000. We have therefore gained on the rate of interest $17,500 a year, which makes $700,000 for the 40 years the lean has to run. Let us now put these figures together and we get the following result : Gained on the interest $700,000.00 Gained on the capital 289,450.00 Total gain $989,450.00 Our operation is therefore more advantageous by $989,450.00 to the Province than that of the Chapleau Government. It will be admitted that this is a Bum worth picking up. Nevertheless, the Bleu press lauded the Chaplenu Government's loan to the ' skies. Here is what La Minerve said of it : ..H tl 'ITT T. '" ' P'''^'°'' *° '^°'' '^""^ '^''' ^•^P"^^^ ^^« absolutely f^ilse ' and tha the French loan, at the rate offered and accepted, has been an excellent financial operation. " The province pays an annuity of 6 per cent or 5 per cent for interest and per cent for sinking fa,d, on a sum of £800,000 and the bankers with whom ' o.r Province has done bu.siness have paid, in francs, a sum which, according to the eutive value of the moneys, represents exactly 98 per cent of the sum of £800 000 ' ( 1 oa his loan ir values of oau at 5.20 one fifih to action ! ve realizi'd le proceeds interest on ve are only 300 a year, esult : 30 to the hat this is oan to the itely false excellejt kerest and ith whom ing to the £800.000 1 » 33 " It will thus be seen that, under every aspect, the negotiation of the loan at Paris has been a good stroke of business, without taking into account the indirect results which we have a right to expect from it. "It should not be forgotten either that the loan could not have been effected in l^ndon at 98 before it had been accepted in Taris. It was solely the action of the Parisian bankers which induced the agents on the other side of the Channel to make their offer. " Another piece of information which we can give our readers and which cannot fuil to inspire ciMifuleiice in thin financial operation, of the Quebec Government, is that all the loan has been taken at 98 J, 99, 99 J and 100, that is to say, that the whole of it has been taken up above the rate of issue." Now, in the first place, let us note the f ilsity of the Bleu organ's aflirraation. The Government did not obtain 98 per cent of the loan_in question ; we know at present the truth on this head and the public documents establish that the real figure was 88.23. The amount of the issue was $4,275,853.34 ; that issue only produced $3,772,717.00, so that t\vi Province lost $503,130, which reduces the proceeds of thci operation to the figure I have just mentioned. But, if the transaction of the Chapleau Government was such an excelleut financial operation, as stated by La Minerve, how comes it that our loan, which will yield nearly a million more to the Province, is to-day cried down by the Bleus as a bad bargain ? I ask you, gentlemen, if it is possible to carry nonsense or impudence further. An English newspaper of this city, which claims to be a commercial paper, has asked " why the Ministers have disposed of Quebec 4 per cents, at 96 J when the city of Toronto 4 per cent debentures command 99 1 and the City of Montreal debentures within a fraction of par, when Dominion 3J per cents are quoted in London at 103, and the Colony of Victoria sells £1,500,000 of 4 per cents at 108 ? " In the first place, we have >ot sold at 96^ but at 99. This difference is important and we beg our adversaries to make a note of it. : Then, t.<. ihi.s cnptious q.icstion of tl.c Montroal Uazdte, I miylit rq.ly by another (jui-stion. In 1885, Sir Lconuid T.llcy placed X4,000.000 stcrlii.KofCannda 4 per ccntH on ih<. London umikt-t und only got for them 101.08 ; at the same date, the Victoria 4 i^er cents w.-re .lu-.ted ut fiotn 102 to 104 on the same London nmr- kei : Mhy did the Ottawa Ministers thus diniiose of their 4 per cents ..t two or three points nndcr the price commanded by the Victoria 4 per cents? Let those gentlemen reply I ^^__^ Moreover, as regards the colony of Victoria, there is no possible paiallel to be_draw!., I regiet to f-ay, between its credit and that of Quebec in the money nunkel. i\pmt fumthe fact that that Colony has already eflecte 1 three large loans^at 4 per cent,. and that its c.edit was solidly established at that rate, whilst ours was not, its rtsoinces and its revenues are infinitely greater than -urs, without taking into account that its budget for the live years from 188b to 1888 .hows a sur- plus of S2.27l,738.9G of receipts, while ours reveals nothing but deficit , aggregating over a million of dollars, for the same space of time. Of the £33,110,104 sterling ropresentin£ the total debt of Victorin, in June last, £25,404,847, or more than three fourths, have been spent in building railways which are the property of the Government and which brought to it during the fiscal year 1880-87 a net rev^ of £1,088,945, or nearly enough to pay the interest on its whole debt, which in- terest amounted in 1887 to £1,272,591. According to the Statistical Ihstract for 1886, publii:hed by the (Jovernment of Canada, the revenue of Victoria U equal to $140.45 per head and that of our i.rovince only to $2.20. Where is the man of sense who will pretend for a minute that a Province whose revenue is represented only by $2.20 per head, can borrow on the same terms as a quasi independent colony, whose revenue exceeds $140 per head ? Naturally, the same reasoning applies to the cities of Montreal and Toronto, whose sources of revenue are more elastic than those of the Quebec Government. But even the city of Toronto did not succeed as well as we did in placing its 4 per cents. It is perfe«tly true that it put them on the market at 99 J ; but I have it from a most reliable source that it did not realize, at least for its own bonetit, wore than 95 or 95J, whilst we obtained 96J.' But, even supposing that we did not effect our loan on the same terms as 86 , » th.^ opulent and prosperous colony of Victoria or the cities of Montreal and Toronto, what does it signify ? Tho groat quostion is to ascertain whether we got the worth of our bonds. The securities of a govornmont, like all other morchandizo. sell for what they are worth in tho market ; now, what wore tho bonds of tho Province of Quebec worth in London when our loan was issued ? On the 3rd January, our 6 per cents were quoted at from 111 to 113, giving an average of 1 12. Now, at 112, 5 per cents are equivalent to par at 4.25 per cent interest. On the same date, our 4^ per cents were quoted at from 105 to 107, giving an average of 106. Tilt. 41 JOT ar.ls fit 106 are equivalent to 4,25 |cr cent at inr. Ii,st]y, 4 jer cents at 90^ which is the figure we obtained from the Credit Lyonnais, are equi. valent to about 4.16 % at par, that is to say, th=U wo effected our loan on terms which give a larger return than the current value of the bonds of tho other loans of tho Province, when the operation took place, though it is well known that, to nogot-ato new bonds, it is necessary that they should present advantages over the previous issues, asothorwi-ie nobody would have an interest in purchasing tho new securities. These considerations, which must strike all business men, clearly show- that our transaction was an advantageous one for the province and that we got for our bonds not only tho full amount, but even more than tho full amount of their current value. Tho paper of Mr. White, a future Finance Alinister, it appears, has re- proached us for htiviug sold tho whole loan to tho Credit Lyonnais. If njy memory bj good, that paper did not make the same reproach in 1876 to lion. Mr. Church, when he sold the whole of his loan to the Merchants" Bank. In 1S83, Mr. Wurtele sold the last £500,000 sterling of the loan of 1882 to the Bank of Montreal and yet tho Gtizette did not breathe a word on the subject With what grace, then, does it assail us because we did the same tliin» in 1888 ? If the competition was advantageous in 1888, it should have been equally so in 1876, 1880 and 1883. Why did not tho Gazette claim it to be thm as it claims it to be now ? Moreover, we created the competition by calling for tenders, which was set not done in the case of the loan of 1880, that was sold directly and privately to Mr. Cahen, of Antwerp. It is also a charge against us that, after taking the loan at 96|, the Credit Lyonnais placed it on the market or caused it to he quoted at 101 J or 4 J more than the price paid by it. But it has been forgotten that these 4| do not represent the real profit, seeing that the Credit Lyonnais bought firm and paid all the expenses of issue, of exehange, of stamps, etc., which expenses represented over 2 %. Further, on referring to BurdeU's Official Intelligence, I note that in 1883 the Bank of Montreal placed on the London market, at 107, the £500,000 of the 5 p. c, loan of 1882 which Mr. Wurtele had sold to it at 100. The Gazette ani other Bleu papers, which are making a great outcry because the Credit Lyonnais appears to have made an honest profit, had not a word of blame, when the Bank of Montreal realized 7% absolutely in the same way. Lastly, the Gazette seems to be very much put about because Messrs. Heidelbach, Ickelheimer & Co., bankers, of Now York, appear to have been mixed up with the negotiation of our loan. Yet, it had not a word to say when the same bankers were mixed up with the loan of 1880 ; and I beg you to believe me when I state that, if they cost the province something in 1880, they cost it nothing in 1888, as we have not paid them a single cent. Gentlemen, these remarks will give you a correct notion of the value of the criticisms which have been made of our loan, and I do not hesitate to say it is in- coutestably the best financial transaction which has ever been effected for the pro- vince of Quebec. And yet we were in an exceptionally difficult position. Over and above the discredit resulting from the bad state in which were the finances of the province, when we undertook their management, we had to stem the current, or, if you prefer, undo the quotations established by our predecessors. After having first borrowed at 5 (jd and at a considerable discount, these gentlemen had come down to 4| % in 1880, by sacrificing under the guise of a discount S503,581, and finally had been foiced to come back to 5 % in 1883 ; they had proceeded by half points, whilst we had to lower t e la'ie by a full point, to arrive at one bound at 4 515, a rate which they never sue- •I ♦ I , ^ ceeded in obtaining. It was reserved for my honorable friend, the Treasurer of the Province, whose experience, skill and honor in business matters have earned for him the highest reputation, it was reserved, I say, for the Hon. Mr. Shehyn, ^o place the Province of Quebec among the countries having the highest rank in the finaneial and business world. In presence of such a result, we have the right to proclaim that we have again built up the credit of the country and to claim the cooperation of all fellow citizens who do not allow themselves to be blinded by party spirit. This success is the more remarkable that the Standard, one of the great London dailies, at the time of the issuing of our loan, contended that it could not I > floated on the terms proposed and we would be compelled to accept less favorable conditions, if we wished to see it subscribed for on the English market. I must moreover say that in France we had a most favorable and sympa- thetic reception ; we were treated as brothers and were given all the advantages which good will and the mpst sincere cordiality could afford. REDUCTION" OF EXPliNSEB. "We have also endeavored in another way to retrieve the financial situation. We have lessened the expenses and increased the revenues. For the financial year ending on the 30th of June last, the expenditure amounted to $3,283,697.78 ; for the current year, we have only asked for $3,000,829.60, or $282,868.78 less than the expenses paid under the budget of the Eoss Government. We have effected relatively large reductions • in the staff of the publis ser- vice, either in dispensing with certain employees, or in not replacing others who hare died or in having their duties performed by other officers, without additional salary. Thus, Mr. Schiller, clerk of the peace at Montreal, who was in receipt of a salary of two thousand four hundred dollars, was not replaced. The duties of Mr. Huot, Clerk of the Crown in Chancery, have been entrusted to the Clerk of the Legislative Assembly, Mr. Delorme, who will receive but a small additional indemnity for the increase of work which he will have to perform. Thi successor of Mr, La- chaine, who was in receipt of $1,400.00 per annum as Inspector of Cadastres 38 inr.ceiptofSUOO.00. ZlTl r"'?'-^^' "» «' ^'ortin. wKo wa, deceased, .osig„.i o. ,l,^uirZ/^ T "*"' '°-™"°*- officer, effeeWco„s,de,ablea„cU„rpl„ " "" "" ^^""'^ ""»' « h"^. forms of which it i,s susceptible. '"''^ ""' *" ^^' r«- OLD PARLIAMENT BUILDINGS. -. ":^::::r:?:;:: :;::; ^ » - -- a p.,., „,, „, were >„,„„,,, „„ ,„, propri.toJof ,,; iTinT™: T'" "" """™'*^' ^^ between , he Hali&.v p„„„,, ,„„,„„,, ^;;'° "'' "" '» '0 s,,y. .,, ,h, jiff„,,,„^ .ear and .:,,„,.„ ,.. ,, ,,^^,;^ ^^.^ .ap^riltSierr ''''^ ^ %.anra:::t::r;:rr :rr ^■"^"^' *^ -' -- - -Uoned, ,.e handed hae. the p^pe ^ ^^^Zo"' '"" "^ "^^" ^-' »t.on, we gave then, „p at the same tie . S 1 '"' ^' °""'*''- 'og OS in nothing and threatened even to 11 '""'"'■ "'"'"='' ™ ''™8- '-3fen.edt„ ,hem the ,rl2 ^ T °''''' "' ''^''-' ^'''' ^^ ''^^ ■ Bonding,,, which wee dcafoyed h, fil' i„ rsar""" °" "'° ""^ '■'''"™™' ' By this transaction, we freed ouraelv f bj a capital of about $100,000 as well .. f '? ' ^'''^''"'^ ''"^ represented ' ■ved. Mr. n, who was 3r officer.si, ; we have, night have ^'ernment; led to put n do more, liters will all the re- lich wds the old t . eity, we eteusion f 1 ation of fferenco f 55.45 a A i"g too m just 3mpen- 1 briug- 1 ve also . 1 ament ' f sented 3,000, Tjring I? ^ 39 out of projects contributing to the development and (;iubelli.^hment of our old Provincial capitil. THE TAX ON COM.MKUCIAL COliPOKATIONS. In 1882, the Chapleau Government imposed a special and direct tax on Banks, Insurance Companies, Railways and other bodies. The corporations con- eerned refused to pay and a great number .of suits were taken out and pleaded before the Courts, incurring considerable costs which hxl alrexiy, oi o;u- covuing into power, reached a sum of nearly $30,000. These 3ui^s, carried in aon-il ta thii Privy Council, in England, hid baen suspended in 1886. the y air of th3 general elections : it is easy to surmise the reason. It was oui daty to b:iag Uii luittar to an end ; we therefore, as early as the month of April, iustracted Mr. Geof- frion to go to England and to press the suits with all despatch. Mr. Geoffrion bril- liantly succeeded and secured judgment in favor of the Government. The -collection of the tax was speedily made, and at the present moment we have received more than half a million of dollars from thit source. Corporations which, after that final judgment, refused to pay, have been sued and must pay, for they can no longer escape condemnation. We apply this law, because iti3th3law;but W3 believe thit, in its application, it indicts certain injustices which will soon be made to disappear, as well in the interest of the companies as in that of the Province. And if our plans with reference to the readjustment of the federal subsidy, as accepted by the Interprovincial Conference, succeed, as we have reason to hope, the Treasury of the Province will then be in a favorable enough condition to permit the Government to consider the opportunity of doing .away alto- gether with this tax. CROWN LANDS Up to this, we were principally concerned about increasing the revenue. Thanks to the changes which we have made in the regulations respecting woods and forests, we have increased by almost $50,000.00 per annum the receipts arising' from ground rents and by SI 00,000 those arising from timber dues. We have organized a system of inspection which will enable us to prevent the frauds that 40 were formerly committed in the cutting of lumber on the Crown Lands and which caused every year a loss to the Treasury of considerable sums of money. We have in our possession the proof that in several sections of the Province, lumber merchants, the favorites of former Governments, have plundered hundreds of square miles of our finest forests. For the few thousand dollars which these gentlemen were wont to subscribe to the electoral fund or other assistance of the same nature, which they would give to the Government, preceding Ministries handed over to them to despoil the fiuest domains of the State. Thanks to the measures taken by us, these depredations will be no longer committed, or at any rate, the pillagers well be denounced and severely punished. We shall deal with the lumber thieves as we do with the colonization money thieves. LICENSE LA.WS, We have devoted particular attention to the faithful observance of the License Laws, and the consequence of the ref rms which we have therein effected will be seen in the very perceptible increase of the revenue coming from that source and in the more eevero enforcing of the law. We will not stop there; we propose to submit to Parliament, at its next session, important amendments to the License Law, whose application will result in considerably diminishing the sale of ntoxicatinrr liquors and in punishing those who are guilty of violating the law. We have every reason to believe that the religious and civil authorities and temperance societies to which these amendments will be shortly submitted, will be fully satisfied with our exertions on behalf of the great and holy cause of temperance. THE EQUILIIUUUM OF THE FINANCES KESTOKED. We have also brought to a successful issue several matters which are not without importance, and, thanks to a firm and vigorous policy, as well in respect of economy in the expenditure as under the head of the collection of the revenues, we have put an end to the reign of deficits and inaugurated that o{ surphiaes, the figure of which this year will be very considerable. ,)■ 41 CODIFICATION. Another work which we have terminated and which should entitle us to the gratitude of the public, is the Codification of the Statutes. This work, begun in 1876, had been dragging on forthe last twelve years. In taking charge of ihe Crown Law department, I resolved to put an end to these delays, which were occasioning considerable expense ; I procured from the Legislature the necessary authority to push on the work with energy; I devoted to it my summer holidays, and to- night I have the satisfaction of being able to announce to you that the proclamation puttmg m force the Revised Statutes of the Province of Quebec will be out in a few days. I was enabled to bring this work to a close, thanks to the valuable and intelhgent assistance I received from several distinguished colleagues, chosen without distinction of party, amongst members of the legal profession who gave us the benefit of their experience and their knowledge and have tluis linked their names with the greatest legislative work of the province. THE ASYLUMS COMMISSION. The long disputed question of the lunatic asylums will also shortly receive a definite solution. In order to arrive at an acceptable result, we appointed a Commission for the purpose of suggesting the changes which should be made in the laws governing these institutions. This Commission, composed of men represent- ing nearly all sh .des of opinion and offering all the guarantees necessary from the standpoint of principles and knowledge, have collected all the information desirable with regard to our lunatic asylums and the mode of treatment therein pursued ; th-y have visited the asylums of the province of Ontario, which are managed by men of the highest competency, together with certain institutions of the United States, which are considered the best managed, and I have every reason.to believe that the report of this Commission will give us the necessary data for a wise and prudent legislation of a nature to satisfy all the interested parties. AGRICULTUKAL COMMISSIOX. According to the unanimous recommendation of the Legislative 42 Assembly at its last session, we iustructod a Commission to enquire into the means to be taken to improve our agricultural institutions and to reform, as far as possible, our system of cultivation. We considered it our duty to name without regard to political color as members of that Commission all the members of our Legislature competent to furnish us with useful informatii n. For thxt purpose, we chose all the members who were ngriculturi.ts by occapr.tion and who possessed a practical knowledge of agriculture, even those who were hostile to the Government. When it is a question of matters of such importance, so intimately eoanected with the progress of the country, political ties and partv considerations ought to be set aside. The report of that Commission is now rea, ) •. most important report, and I am sure, will commend itself to the serioi ■ ;.ttention of the friends of agriculture. This report does honor to the intelligence and devotion of the members of that Commission, who under the presidency d Mr Bernatchez, member for Mont- magny, have rendered a real service to the country. The Commission specially visited our three agricultural schools and also a certain number of th3 most remarkable farms of the Province ; the members went to Guelph to see with their own eyes the magnificent agricultural college of Ontario, and they have prepared a report which will enable the Government to give a practical solution to that most important question, the improvement of agri- cultural education and of ngriculture itself in our Province. coinr HousKs We htve complete 1 ;ho Cou.l, House at Q:ieb and, on the 21st Decem- ber last, ,t was opened to Iho public. This edifice has cost an onormous sum. but is very stately and cmifortable. We are now going to devote our attention to the Montreal Court House, lor the enlargement of which we got a vote of $200,000 last session. Enero-etic and mflueiuiai i'epreseiuations have' been made looking to giving Montreal an edifice worihy of the great commercial metroiolis and to be built on the old site of the Chateau Ramezay, opposite ihe City Hall. It is clain.ed that the actual Court House and the extensive piece of ground surrounding ,t can be sold to advantage and the proceeds would cover a large proportion of the cost of the re into the I, as far as le without ers of our u'pos?, we ossessed a vernineut. Lited with ; to be set .Dt report, Mends uf embers of Por Mout- nd also a ors went jUege of nment to : of agri- 43 new structure. We are going to study the question and consult the Bench and the Bar and come promptly to a decision favorable to ihe general interest. In (he meanwhile, I am happy to be able to stale ihal iho now organiza tiOM of ihe Court House generally gives satisfaction to iho public and that •hanks to the energy and supervision of the higher officials, ,he receipts are rapidly increasing, ihose of ihe last six monUis exceeding by «13 5S1 those of the corresponding six months of the previous year. ' DEPARTMENT OF AGRICULTUUE To give elfect to the recommendations of the Commission and to the law of last session on the subject, it is our intention shortly to establish a special Ministry of Agnciltare and Colonization, and the Minister who will take charge of this new department, will be named before the 15th May next, the date fixed for the meeting of the Legislature. THE NATIONAL PROGRAMME REALIZED As you see, notwithstanding the illness which kept me away from the pubhc business during several months, we have faithfully carried out our pro- gramme, as far as circumstances permitted, thanks to the industry and assiduity of my colleagues in the Ministry. Decem- sum.but I House, nergetic treat an old site actual sold to It of the PROCEDURE LAW.S The length and extraordinary amouut of co.ts in lawsuits require amend- ments to the laws of procedure. Wo will endeavor to comply with this universal desire by simpKfyincr the procedure in the Courts especially in commercial matters and by dimiuisliin" the expenses of litig.ition. ° I sent sometime ago a circular to judges, advocates and to all whom I consider capable of giving information or of making suggestions upon the subject. As a general rule, it elicited replies and I have received very valuable sugges- tions, of which I have a clear and succinct synopsis which I will submit 1^ the -1 — Ji. ■!t4 Legislature, at the same lime requesting it to adopt measures likely to attain the end so much desired by all. As a first result, we will submit, I hope, a temporary measure which will greatly simplify the collection of commercial claims, considerably diminish the delays and cobt of proceedings, and which, whilst we are waiting for a final reform which is being prepared and which will touch upon the judiciaiy organization itielf, will afford general satisfaction to business men and to litigants throughout the Province. TOLL GATES AND BKIDGES. The requirements of business and the necessity of obtaining easy communi- cations will demand, before long, that a serious study should be made of the advisa- bility of abolishing, in our Province, toll charges on roads and bridges, which form real obstacles to free travel, so necessary to the progress of a country. The solution of this great problem, so difficult now, may become possible when our finances will permit it, thanks to the readjustment of the Federal subsidy which the Interprovincial Conference has recommended. COMMON SCHOOL FUND. I hope we will soon settle, and in a final way, the accounts now pending be- teen our Province and that of Ontario with regard to the common school fund. Had it not been my poor state of health, which compelled me to absent myself from the country for several months, that settlement would probably have been terminat- ed before this, as we closed that which we had against the city of Montreal, by which we received $125,000. But the matter is only deferred, and before many months the Province will be in possession of what is due to it from that quarter. We have already received $100,000 on account; the Legislature of Ontario during its last session, has passed a law to provide for a final setlement, and there is now going on a correspondence between the two Governments with a view to the a definite understandiig as to the appoiutment of Arbitrators, who are to decide finally this important question which has been pending for over thirty years. Tlia QUEBEC FRONTIER. We propose to give special attention to the question of the Quebec Frontier, and the Interprovincial Conference has already pronounced itself on the subject in favor of Quebec. All the explorations hitherto made clearly establish that the territory situated to tho north of the Province of Quebec comprises vast extents of lands capable of colonization and varied sources of wealth. The lumber, mines and fisheries would offer an extensive field for industry, principally in the territory comprised between Lake Mistassini, James' Bay and Lake Abbitibi. All this country has been explored or visited by Father Albauel, of the so- ciety of Jesus, one of the members of that illustrious Order, which has contri- buted so much to spread the light of the Gospel and the benefits of civilization in all parts of the world. Father Albanol want through in 1672 to Hudson's Bay, by pass- inf by way of Lake St. John and Lake Mistassini, and this is what he wrote to his superiors from th'3 shores of that great inland sea : " They have been quite mistaken who have thought that the climate is inhospitable either because of the great cold, ice and snow, or because of the absence of lumber suitable for building or firewood. They have not seen those vast and dense forests, those fine plains and grand prairies which border the rivers, in numerous places covered with all kinds of grasses suitable for the pasturage of cattle; I can affirm that on the fifteenth of June there were wild roses in bloom aud fully as sweet smelling as at Quebec; the season there even seemed to be more advanced, and the air was mild and agreeable. There was no night, the evening twilight being scarcely ended when the dawn began to herald the rising sun." This region, revealed to the world by one of the illustrious sons of Loyola, belongs to our Province, The accuracy of the information regarding it furnished by Father Albanel, has been confirmed by several English explorers, by Ellis ar:d Robson, among others, and more recently by Dr Bell, cne of the most eminent mem- bers of the Geological Survey of Canada, Like Father Albanel, Dr Bell asserts thr.t 46 this region comprises great tracts adapted to profitable cultivation, immenao forests suitable tor working, different minerals of value, notably spathic iron deposits of inexhaustible richness. Tliis territory belongs to us : the decision obtained from the Privy Council in 1884 by my honorable finend, the Premier of Ontario, relative to the Northern boundary of that province settles also, at I- ^st in principle, the question for the province of Quebec. Wc propose to take advantage of this decision to add to our province a larger area than its actual superficies, that is to say, about 300,000 square miles. I have already brought up the question in the Quebec Legislature, in 1885, and a committee was named and iufctructed to study it ; we intend to profit by the work of that committee as well as by the Privy Council's deci-^ion, to have the question settled in a final manner and in conformity with the rights and interests of the province. The province of Quebec is the rightful owner of the vast territory in qiiestion and is going to claim it. '1 NEW RAILWAY SUBSIDIES The railway policy inaugurated by our predecessors in 1882, and in 1886, being incomplete and unfair, should be abandoned or completed. Tt was our own opinion that it involved too many interests and created too many vested rights to allow of its being abandoned without danger to the Province and without ruiuing certain com- panies. We have therefore decided to complete that policy, and in view of the additional resources placed at our disposal, to supply the omissions in it and to repair the injustices which it committed. We shall endeavor to do justice to all righteous claims, without placing too heavy a burthen on the^public treasuiy and, above all, without requiring new sacrifices from the tax[iayers. We hope that our policy, on this head, will meet with the approval of all right-thinkii.g men and largely contribute to the true progress of the country. Jesuits' estates The final settlement of the question of the Jesuits' Estates has been fre- quently demanded by the religious authority : during the last twenty years ou :i 47 predecessors, who lud on several occasions promised to effect the settlement, never did so for reasons quite easily understood. We believe that the time has come to fuii.sh with this eternal .luestion and we have decided to take it up iiad attempt to give it a practical solution calculated to remove serioua causes of uneasiness. We are not deceiving ourselves as to the number and jmportanco of the difficulties which the solution of this question presents; but we think that public opinion demands that, by an equitable arrang,.ment with the interested parties, the permanent causes of trouble which the actual state of things has entailed should be removed, ' ' » As yet, nothing has been decided as to the mode of settlement, except that the princii'le of the restitution has been abandoned by those conc( rued and that of a reasonable compensation substituted for it. In the meantime, we intend to proceed to the sale of the ground of the old Jesuits' College at Quebec, which, as every one knows, has been for years past in a condition to disgrace a civilized city. Hon. Mr. Chapleau, wu are assured, offered in 1880 to pay thj religious authorities 3*100,000 for this ground, but the offer was not accepted, for reasons which will be divulged later. We are happy to be able to announce that there is no longer any ob- jection to the sale of this ground and that we are going to effect it shortly. The proceeds will be considered a special deposit in the hands of the Government, who ' will collect the interest until the final settlement. It is needless to say that this settlement cannot be made without according to the Protestant minority of the pro- vince a legitimate compensation, proportioned to their sh ire of sacrifice in this connection. CONVERSION OF THE FUNDED DEBT. i) I availed myself of ray tiip to Europe and of the good dispositions which 1 met with in regard to the Province, to open business relations with two of the largest monetary institutions of France : the Credit Lyonnais and the Banque de * Paris et des Pays Bas. After hearing the report which I made to them of my * projects, these two institutions signified their willing;:?s3 to undertake the conver- sion of the funded debt of the province, for the purpose of reducing and rendering , uniform the rate of interest. The first question put to me was a question of hvw : 1 was asked if this conversion was legally possible ? I submitted the question to eminent lawyers o Paris and it will shortly be submitted to some of the first lawyers of London. I have no doubt about the answer which those jurisconsults will give ; I have already in my possession the result of a preliminary study which gives a favorable solution to the problem. There is a precedent : the Empire of Brazil effected two years a20 in France, and with all desirable success, the conversion of its debt, which was precisely in circumstances identical with our own. from a legal and pecuniary pou.t of view. ■ Moreover it is a principle of international law that delays are ulway supposed to be in favor of the debtor and the latter can always free himself by paymg by anticipation the amount of his debt. This principle is laid down by article 1091 of our Code, which is but the reproduction of the Code Napoldon. This article says that " the term is always presumed to be stipulated in favor of the debtor, unless it results from the stipulation or the circumstances that it has also been avgreed upon in favor of tbo creditor ? This is also the doctrine held by all the political economists who have written upon the matter and it has been put in practice by many of the Governments of Europe Kambau.l, in his work Dtt Placeme7it des Capitaux, clearly lays down i\e doctrine : " The right possessed by the State, says he, to reduce the interest upon i^s debts by offering to its holders the reimbarsoin3nt of the c ipital, if they re- fuse to convert it, is formally sanctioned by article 1911 of th. Civil Code under the terms of which all perpetual constituted rents are essentially redeemable, the parties only having the right to stipulate that the payment shall not take place before ten years. It is in consequence of this right that England successively con- verted its debt from five per cents to four per cents, and then to three per cents. In France, we have had successively the conversions of 1825, 1852 and 1862." Ml economy u Chevaliur, mie poUti " help of t " public dt " lower itsi " in moraei " France, I " 6 % loan " himself a " interest " reestablisl " of this fav " to pay tht " per cent. I " offered to ' " interest. " borrowed ( " good times " unless he ■ " right of coi " which esta " shall be re " amount of "Stat " conversions " such transac " when they i '' now pay nc " original rat( written nments d down st upon hey re- e under ible, the ke place ely con- | 49 Mr. Lt.rc.y.B.ri.aio... member of the Institute and professor of politicul economy ut the College de Fro nee. whore ho succeeded to the dmir of Mr Kn.ile Chevai.«r, hiys down the same doctrine. This is what I find in hi. Precis d'econo. mie yolitiquc, published this very year : "There is h.wever one circum.stancfi which from time to time comes to the " help of the State and which enables its stat«smen to eftect the conversion of the " public debts. We have seen that the rate of interest has in general a tendency to " lower itself in prosperous countries. Moreover, most nations borrow e«peaally " in moments of crisis, when the rate of interest is high, during or after great wars. " France, for instance, on the morrow of its disasters, in 1871 and 1872, issued " 6 % loan at 81 or 82 francs, so that for 81 or 82 francs the subscriber secured for "himself a revenue of 5 francs, which represented in reahty about six per cent " interest upon his investment. A few years afterwards, prosperity being " reestablished, the State could find money at 4 or 4 J % interest. Taking advantage " of this favorable circumstance, it could again apply to its creditors and propose " to pay them baek, at 100 francs, that is at pa:, or to reduce the interest to 4^ or 4 " per cent. Such a transaction is perfecfiy legitimate. This conversion is an option " offered to the creditor between reimbursement of his debt and a diminishing of ' " interest. It resembles what would be done by a private individual, who having " borrowed during hard times, 1,000 franca at 5 or 6 per cent interest, and seeing " good times returning, would ofler to his creditor to return to him the.lOOO francs" " unless he would consent to no longer require more than 4 or 4A per cent. The " right of conversion depends, moreover, in France, upon that provision of our law " which establishes that, except when otherwise stipulated, every perpetual rent "shall be reimbursable in consideration of the payment of twenty times the " amount of the interest. "States are bound, in the interest of their citizens, to have recourse to these " conversions, every time that their credit has sufficiently improved to permit of « such transactions. It was in that way that tha United States of Am3rica acted, " when they successively converted almost all their debt, so much so that they " now pay no more than 3 per cent interest, in place of 6 per cent which was the " original rate at which they borrowed." 50 England at this very moment is engaged in effecting the conversion of '£150,000,000 sterling of its public debt. The project laid before Parliament by the Chancellor of the Exchequer, Sir Hemy Goschen, applies to three classes of , jee per cents ; the consols the reduced three per cents and the new thret per cents. The holders of the last mentioned funds, which are redeemable since 1874, will hare the alternative of conversion or of reimbursement ; if they do not make known their dissent within a certain delay, at the Bank of England or the Bank of Ireland, they will receive in return for their old three per cents others of an equal amount, for the issue of which the Chancellor is now seeking authority from Parliament. These new bonds will bear interest at 3 % for the year ending the 5th of April 1889, at 2f % for the fourteen years ending on the 5th of April 1903 and after that, at 2\ %. The bill stipulates that these bonds cannot be re- deemed before 35 years, that is before the 5th of April 1923. Naturally they who will not accept this conversion will be reimburied at par. As to the consols and the reduced 3 per cents, the holders of these funds, who accept of conversion, will receive a dividend of 15 shillings per £100, payable before the 5th of April next. To hasten the conversion of these bonds, there will be granted a premium or bonus of 5 shillings per £100, to every holder who returns them to the Government for conversion. As you see, the project of Sir Henry Goschen is the final conversion of 150 or 155 million pounds sterling from 3% to 2^^. This transaction will greatly favor the one which we have in view and for which I have made the preliminary arrangements during my trip in Europe. No time could be more favorable for the execution of our plan. It is a business matter which concerns the best interests of the Provitjce, a matter upon which both parties should be in accord, where there cannot reasonably be any question of political divisions, and I trust that the opponents of the Government will have ecough of patriotism to cooperate with us in the accomplishment of an undertaking which is incontestably so advantageous to the country. It simply is a question of reducing the expenses of the Province by from $200,000 to 8250,000 per annum, on interest account alone, according to the conditions under which the cou ver- sion will be made. We will be enabled to devote that sum to forwarding the pro- gress of the coantry ; this reduction of our expenditure will allow us ^ o give a 1^ t I> 51 wonderful impetus to the three great principles of the progress of a country education, agriculture and colonization. The negotiations which we have begun involve the conversion of all our consohdated debt to a uniform and much lower rate than we are now payiua T^e Credit Lyonnais and the Banque de Paris et des Pays-Bas, two of the most powerful monetary institutions of Europe, are disposed to.undertake the operation which wiU evidently be favored by the conversion of the English consols, of which I have just spoken. The greater number of English and other capitalists will perhaps believe it to be to their advantage to take our 3^ per cents in preference to the 2* per cents of the Imperial Government, in order to gain one per cent upon the invest ftents, and to increase by that much their income. We wish to take advantage of this exceptional circumstance and for this purpose we rely upon the loyal coo peration of all the true friends of the Province. Our consolidated debt including the last loan, is $22,354,353, 34: a reduction of 1 % on the amount of interest payable on that sum represents $223,543,53, which will be so much the less we will have to pay annually on interest account. And I have every reason to think that the reduction will reach a quarter of a million and even more for there is no reason to prevent us from trying 3f and even 3^ per cents especially if the Legislature, hearkening to the voice of patriotism, vote for this measure as a measure of urgency and unanimously as it will be their duty, so as to give an additional strength to the negotiations which the Government' will can- en k Europe. ^ I am glad to have this occasion to pay a public tribute of gratitude to Mr Dubail, the able Consul General of France in Canada, who largely contributed to the success already obtained in the matter and who has generously volunteered his valuable a.sistance in the future negotiations, like a true friend of the province. CONCLUSION I must ask your pardon, Mr. President, Ladies and Gentlemen, for having inflicted so long a speech on you ; my excuse, if I can be allowed to offer one, lies in the importance and multiplicity of the questions I have had to treat and in the necessity under which I have been placed by the circumstances to give explanations on a large r ,mber of subjects that have of late keenly interested public opinion ' ' di 52 \ In concluding, let me call upon you, Liberals and National Conservatives to close your ranks and to unite like brothers for the defence of the common cause. That cause is grand, noble and generous ; you will have to defend it in Hochelaga, Missisquoi, Shefford, Laval and Maskinong^. Eally then like men of spirit around the national banner and ensure its triumph, together with that of the sacred cause of the country. ! ( ' ■