SPEECH or J. B. PLTJJMB, ]VL.P., ON THE BUDGET :o; {FROM THE OFFICIAL DEBATE.) HOUSE OF COMMONS. Tuesday, 5th March, 1878. SUPPLY— THE BUDGET. ADJOURHID DIBATI Order for rosuraing the debate on Mr. Cartwright'H proposed motion: " That Mr. Speaker do now leave the Chair for the House to go again into Committee of Supply," read. Ma. PLUMB said that, when the House adjourned on Friday evening, he was about to proceed with the debate which then occupied its atten- tion. Before he would attempt to deal with the general question, which would no doubt interest the House during the whole of the discussion that would take place on the speech of his hon. friend the Minister of Finance, he would brief- ly advert to statements which had been made — though perhaps these wore not entirely relevant to the question, — by the hon. gentlemen who had spoken on the other side since his hon. friend (Mr. Cartwright) addressed the House ; and he would take them in reverse oi'der, as th«y would then, perhaps, be fresher in the minds ot hon. members, and as hon. members might then, per- haps, more readily apprehend what he had to say on the subject. The hon. member who preceded him — the hon. member for Centre Toronto (Mr. Muc- donald), for whose opinions, as a busi- ness man, ho had the highest respect, and who, personally, knew the esteem with which he (Mr. Plumb) regardetl him — had given them one of those addresses which it was always pleasant to hear in the House, and which was characterized by that gentleness and , iorsuasiveness of manner by which the hon. gentleman always attracted, and kept the ear of the House ; and he regretted that he must, on this occasion, differ toto coelo from the hon. gentleman, with regard to the arguments whicli ho (Mr. ^^lacdonald) had advanced, and the conclusioDS which he had reached. His hon. friend had s|)oken well ; but he had spoken from a peculiar stand- point. His hon. friend was largely engaged in commerce ; he had boon an eminent and successful example of what could be done in Canada by un- aided industry and indomitable perse- verance , but, throughout his whole career, be (Mr. Macdonald) had taken one single line ; and, when he argued , upon commercial subjects, upon finan- cial subjects, and upon subjects of political economy, he (Mr. Plumb) could not but suppose that the hon. gentleman's views were, to a certain extent, biased by the peculiar interests which he so worthily represented. He could not blame the hon. gentleman for this, or blame him for presenting his arguments to the House in the form which they would naturally take from his own personal standpoint, and from his personal predilections. That hon. gentleman had told them, in the first place, that he would give them the real causes, generally speaking, for- the enormous sufferings which wo were enduring from the com- meicial depression which, it could not be denied, existed in this coun- try ; which, it could not be denied, still existed in the greatest severity, and which it might now be the policy, and he thought it was the policy, of hon. gentlemen on the other side of the Flouae to treat lightly as a passing cloud, and to say that it was no longer preying upon the very vitals of the community. In fact, that was the Htatement of his hon. friend the Finance .Minister last year, who, in^^tead of being a oroaking prophet 2 evil, as ho was when ho (Mr. Cart- wright) took tho office ot Finance Min- ister, was then airy, cheerliii and hopeful, stating that wo had passed over tho worst ol' the storm, and that tho country, though it still felt tho eft'ecls of the ground-swell, was coming into smoother water. ]lis hon. friend from Centre Toronto took, he (Mr. Plumb) was bound to nay, with all respect to him, an empirical view of the situation. Tho causes of the de- pression lay deeper and were more la.-ting and enduring ihan any bo (Mr. Macdonald) had referred to. Thoy lay in great changes in ihe general con- dition of tho commercial and financial wor (1. They did not lie in the question whether Canada imported a few million dollars' worth ot goods more or le-s, or made a few million dollars more or less, of bad debts. They did not lie in tho fact that tho importers of Carijuia, always excepting his aon. friend, filled their warehouses with tho merchandise of England and the United States, which they forced upon people ♦ who wero not competent to conduct business or to pay for their pur- chases; or that they gave such persons long credits, and placed them in posi- tions to compete with each other and with sound merchants in the most injuiious manner, all of whfch was calculated to hurry this country into batikruptcy. Those were among tho causes, but thoy wore slight causes, as his hon. friend would at once recognize. He had, with amazement, looked over the statements which from time to time appeared in the news])iipers in adver- tisements with regard to insolvent estates ; and he had there seen that men wo)'e trading throughout tho coun- try on no capital, and when the assignee took hold of their estates, cases wero found where whole families wero 'pro- bably living out of a business involving a stock of $5,000 or 86,000, or oven less. And he had, consequently, been amazed that it was not seen at once ^ that those men could not carry on a successful business on such a basis. This was one of tho causes of the de- pression, and it was an immediate cause; it was a cause that xvas before them continually. The House well know this, but the causes of tho groat depression, which were worthy of the examination of tho hon. the Finance Minister of Canada, and which were of national importance, — of national con- sequence, wore deeper and farther reaching ; and he ventured to say that they would continue far longer than any could desire lo imagine. Tho Opposition wero charged with wishing to detain tlya Spectre of hard times for their own benefit; but could it be possi- ble that gentlemen opposite wore so far prejudiced by party spirit that they could imagine that any man having the interests of Canada at heart would desire for a moment to interrupt the career of her prosperity. It ^^as unworthy even of the most bitter partizan, or of tho most unscrupulous politician to make any assertion of the kind, and he hurled it back to tho other side of the House. Some Hon. MEMBERS : Hear, hear. Mr. plumb said hon. gentlemen op- posite might applaud sarcastically, but he would say it was unworthy of them, for those hon. gentlemen knew that the members of tho Opposition had a common interest with the general community in the prosperity of tho Dominion ; they hud no desire for any bonetit to themselves, for there could be none, in having the depression continue; thoy only wished to look at it with the eye of common sense. *He never heard, except on the floor of tho House, or read, save in a few platform speeches delivered during the past summer, that' there was not still the greatest anxiety felt in all tho commercial and financial circles of Canada in rogai'd to the business of tho country. Ho had not heard elsewhere that the clouds were lifting,though God grant that they might soon see a glimpse of clear sky, and ho did not care how soon it came, nor should it have any connection with the political situation here ; and he might say thai the party which desired to make ])olitical capital out of either the one ( uestion or the other, was unworthy of the confidence of the people of Canada. Some Hon. MEMBERS : Hear, hear. Mr. plumb : Yes, hon. gentlemoQ might say " hear, hear," and he thought they would say it a good many timea ^P 3 before be had finished with the rumarl House applauded anything, no matte/ how untenable or how illogical it was. Some Hon. MEMBERS : Hear, hear. Mr. plumb said that, if this pleased hon. gentlemen opposite, he was verjr glad indeed, because it showed that the were very easily pleased ; this was all ho had to say on that point. The hon. member for North Oxfoi-d had given them the information that eight mil- lions of money had b^en impi'(.pcrly squandered b}' that reckless and profli- gate Administration which preceded the embodiment of all the virtues that now held power, on the Intercolonial Railway. He could fancy the frowning figure of the " Grand Old Reformer " standing behind the hon. gentleman while that stiitcmont was made; and it was fortunate for the hon. gentleman that he (Mr. Brown) was not then in the gallery, because he (Mr. Plumb) thought the hon. gentleman would have felt that scourge which was made proverbial — for, under command of Mr. ferown, the cat was more used than the compass in the steering of the ship in which the hon. gentleman from North Oxford had long ago embarked. Yes, he could remember that ten years ago, the hon. gentle- man's Loader had waid that, for the sake of getting Confederation, he would build six Intercolonial Rail- ways, with, all the expenses attached to such an undertaking. The hon. gentleman from North Oxford had evidently forgotten that f;iet. He was somewhat surprised when, for t.io sake of making a particular argument and gaining a parlizan triumph — as ho (Mr. Plumb) was told from the other side of the House when those hon. gentleman threw their suoei-s at him — the hon. gentleman Iwui made such a statement which was sure to recoil on his own head. He remembered ])errectly well reading the Confederation debate'^, not long ago, where ho found that the most strenuous, the mostelociuent, and the mo.st ardent advocate for the Inter- olonial Railway, no matter at what cost, — for they could not know at that time what it would cost — was the Hon, George Brown, the leader, and the inspiror, and the gover- nor t.>t' the party which his hon. friend the member for North Oxford so worth- ingly represented in the House as the tsmbodiment of Government j)rinci]des in that riding. That hon. gentleman had also made a long statement touch- ing the prosperity of our manufactures. The hon. gentleman had showed from statistics, perfectly accurate, of course. of the census returns of 1871, that the mtnufiacturers had made largo profits prior to that time, and he (Mr. Plumb) did not deny that they were then pros- pering ; but, if money should be invest- ed on the information derived b}' the hon. gentleman from such a source, ho was afraid investors would not get veiy large dividends. He would call the attention of the House to the fact that the hon. gentleman had read statistics concerning the manufactur- ing industries of Canacla in 18f argument. If tho Board of Trade was notan authority at that time it was certainly not an authority now. The gentleman who brought forward the lesolution in re- spect to the tariff at the last meeting of the Dominion Board of Trade, was its president, had been called lo account by tho Hamilton Board of Trade. A meet- ing ,-."w held and a resolution was jiro- posed condemning his course. That motion was voted down and the gentle- man was sustained at tho meeting of manufacturers and mechanics and other gentlemen interested in trade in Hamil- ton. Tho House would, howovei-, not doom tho circumstance very significant whon they were told that it was tho casting vote of tho gentleman cen- sured, as Chairman of the Hamilton Board of Trade, that maintained him in his position. Tho hon. member for North Oxford (Mr. Oliver) had stated that Mr. Howland, an excellent au- thority — who, by tho way, had been President of tho Dominion Board of Trade,which the hon.genlleman derided as having no authority in the country and whoso expressions of opinion wore not worthy of being quoted — had stated that theio was no depression, Tho hon. member had stated that Mr. HowUind was a largodoaler in produce having consequently tho best moans of knowing that there had boon a largo crop, and that tho trade depression was passing away, because, forsooth, Mr. How land stated that the business of tho produce jnerchant was generally j)ros))erous and there had boon a largo harvest in Canaila in 1877. The llou.ve had do doubt of tho abun- dance of the harvest, and ho (Mr. Plumb) congratulate*! the country upon it, and would have been glad to have congratulated the agricultural in- terests on the prosperity and giiiiis that ought to have ci-owneil the labours of the husbandman, which foimed the basis of the prosperity of eveiy country. Tho jirci-ont Government had, however, thrown upon tho farmoi's so many burthens incidental or direct that, when they had large cro])s wtiich should yield large profits, the profits weie materi'dly reduced. They per- mitted the cereals of the Great West to come into this coun- try and free of duty. They permitted a tax to bo levied on barley, which was tho princijjal crop of Western Canada, to the extent, thiough tlie malt tax, of 73 cents per bushel upon a production which was now worth less than 50 cents a bushel in our markets, and in many parts of Ca uida was absolutely unsaleable. Ju-l below Ottawa, on tho St Law- femo River, two-rowed barloj' was grown which would not germinate with Americm barley, and, thorefoi-e, was not salealde in tho Uiuted Slates market for mixing with barley grown there; thus, the growers, whode])ended on a home market, had thoii- crops lying in their granaries unsold. Those fanners wei-o beginning to loarn, though they did not hoar it from their Fepresentativos, who did not loolc vory closely after the intercHts of thoir con- Btituents, that a tax of 72 centN was levied upon malt which was the pro- duction of barley, and that tlio two- rowed barley had no niaritot except at homo and to a small extent in Kn^- land. Those who wore acquainted with apjriculture, knew that the farmer himself could not reach the English market. Ho had to go to the middleman, to |)ay (tommisHion and expenses, and thus very little of the protit fell to him, and, when the grangers attempted to make shipments to European markets, they found so many difficulties presented to prevent them availing themselves of any except theordinuiy market at their own doors, that they had been compelled to aban- don the attempt. That was the socalled agricultural prosperity. Ilishon. friend from S')uth Oxford had told the Rouse there was u matiufacluring industiy in the town of Ingersoll that had |)aid a dividend of 30 per cent. He (Mr. Plumb) tv)n;fiatulate(l the shareholders, for ho had not hoard of such pri)s- Eerity anywiiore else ; he would, owevcr, wait and see what the balance at the end of three or tivo j'ears showed. Ho was jn-eparcd to admit that in exceptional insluncos, arising fl'om advaiUagoous position or special circums'^ancos, prosperous manufac- tories had been established in the Don)inion ; though, under the policy of hon. gentlemen opposite, ImU few .1}' them had escaped loss. When the (rroat Reformer went to AVashington to treat with the United States, ho ])roposc 1 to adr.iit American manulacturo-', of the kind referred to as |)ros])oring in North Oxlonl, among othoi-s, duly ficc, inorder to try the doubtful a lvat)lagcof the kind of I'eciprocity he (Mr. Brown ) was Willi ngtoaccopt. In congratulating the shareholders of the prosporou;^ industry to which leferenco had iieeu made by the hon. member for North Oxford, he (Mr. Plumb) was entitle 1 to claim that one great source of the Erosperity of that part of the country ad grown out of the fad that, owing to the success of the manufacluiing establishments cited by the member foi- North Oxford, there was a gotxj homo market for the farmers. The hon. member for North Oxford had in, frum $li{,r)()U,(H)0 to $22,01)11, 1)00, an increase of $S,i)O(»,0O0, while tho hon. the Premier, with that lack of exactness which dis'jngnishod him on many oocasions. said it was Sll>,Oi)0,000" ; SI, 500, 000 was of nogivat consc(]ueiu-.e to the Minister of Pablic Wcwks. Tiie hi^n. tho J^'in.uico Minister had always dwelt with much emphasis upon the"in.-roase of SS,.')Of»,000 i:i the public expenditure, and his statement would lead the public to suppose that there had boon a great deal of rockless- no->s and somoLliing worse involved in it. Ho (Mr. PlumI)) had gone through the Public Accounts tVom 1807 to the ])oi'iod when his hon. friends had re- tired from offi'-e, and he could give the ilonn which constituted that increase, and he could appeal to tho I[ou-.o .and tho honest sentiment of the country when ho stated that oveiy it(>m was justifiable, niy, necessary from the 8 ClrcumstftnceH of the ciaBe, and alno thut he iii(J not tind that his lion. ♦■n''nd the Finance Minister had lifted up hiH manly voice to protoHt agaiimt that expenditure while it was goin^ on. But the hon. gentleman was a prophet and critic aflei* the fact. The ex- penditure from 18S7 to 1873 incroa.sed aH follows: on 30th June, 18(J8, the ex- penditure waH 813,486,0:::^ ; that in 1873-4 was 82:^,3 1(),31H ; but he in- tended to Hhow that the expenditure for 1873-4 was increa.««ed larj^oly by eupplementary items in Kchedulo A, ■which it might bo tiMriy claime-ed, and which had been repeated by the lion, gentle- men who had already risen on the other >ide of the House, and which would be reocated by everybody else who spoke on that side, were the following: — Civil Government, Ad- ministralion of Jnsticef, Police, Peni- tentiaries, and Legislati(m; altogether 8780, 711i for the whole tei'm. No one wouki dispute the necessities of the case; the enlargement of the area of the country, the iwldition of British Columbia and of ilanitoba, the open- ing up of the North-West, the increase of population, the general position of the country and the general legislation required and justified an increase of expenditui-e, and made it obli- gatory and absolutely necessary. The hon. the Finance Minister had not risen in his place during the seven wasteful years and challenged those items of expenditure in any sense "which would entitle him now to give the public to understand that that increase of 88,600,000 was one for which the late Government should b« arraigned before the country, and be held responflible in any blameable sense, or except in the onlinar}' sense in which an Administration was respon- sible for the conduct of public affairs. The next items were Geological Sur- veys, Arts, Agriculture and Statistics, andthoConsus — 81--, 105. It happened that the Census fell within that period of seven years, and,accordingly,largely increased the aggregate of these three items, — a fact which no one would venture to challenge. The next items were, Immigration and Quarantine, and Marine Hospitals. 830.4,090 The Oppo- sition could safely challenge the record in regard to Immigration, and were willing that the Government should make as much use of that item as they pleased. Hon. gentlemen opposite could not, however, atlord to compare llieir immigration record with tlio record of the Department wheu it was administered b}' the hon. inenber for Coniplon (Mr. Pope,. "^L'lie} on his (Mr. Plumb's) ude of the House threw down the gauntlet and hoped it would be taken up by the Government, in order that the couiitiy might learn what they bad to suy in that direction. On Pensions and 8uperannuati(ms there was an outlay of $ii4,474, and he would deal with that question subsequeniK'. The Oppo- sition had something to say as to the ])olicy of the Government in respect to superannuations, and they could recite a tale of hardship and injustice which, if hon. gentlemen opposite bad any feelings, would cause them to blush for shame, and rouse the dormant indig- nation of the country against them. There was an item of 8500,234 for Ocean and Eiver Steam Service, 850, '^34 of which was the increase for the seven y^ai-s. A large portion of that service WW rendered necessar}' by the addition to the Confederation of those Provinces which had entered it during recent years, and by the n'lUiral growth of the commerce of the country — an increase during those seven years almost un- jiaralleled in the jirogress of any coun- try in the world. The next items were Fisheries, 845,675 ; Miscellaneous Ex- penses, 89,709; Customs, 8180,906; Excise, 8127,906; in both the latter r ^ oases tho rovonues had \ery largely inuroasud. Everyone know that the receipts, both from Customs and Excirte, wore so largely in excess of the proportion of incrouso, that the aug- mentation ot tho expenses was not by any moans a porcontago which could bo challenged, nor could it bo shown that tho (jovornmont had not exercised thosiiinu proper and far-sighted econo- my wliich had characterized thoir whole conduct of public atfuirs ; and, wlioii tlioy took up tho record, ho challenged lion, gentlemen opposite, fkirly and honestly, to retute that argument. Then thoi-e were the l"t)l low- ing items:— Culling Timber, $VAjm ; Portt-OtHce, «77t>,4(!8 ; Publ c Works. con>lrucli..n,$l,<;y}»,732 ; Public Works, revenue, $l,7<>.l,31)a. If hon. gontlo- men wuuld lake up the question of Public Works constructed on capital account, and Public Works chargeable to revenue, and dissect the items, it woul'' plainly appear there iiad been no impi()pri«3ty in the expenditure of the j)iil»lic money in that direction, and it would be time enough for them to base thei. argunionts, in respect to the recklessness of the lato Adminis- tratioir when they had been able to Erove that the expenditure hiKl not Ben maod volume was no argument ; they mer««l3- bhowcd a certain amojnt had lioen expended. With t»>e rapidly increasing revenues of the countiy, and the large si'i-nluvos which were rolling uf) year atlor year, there was, no doubt, eveiy possililo induce ment to lead tho lato Government into extravagance, but they had resisted the temptation, although they could not turn round and sa^' to applicants for Government contracts, as the hon. the pre.'«ont Premier would have been able to sa}-, that thei-e were deficits to meet and no i-evenuo which would warrant the expenditure ; but the late Government expended upwards of $10,000,000 of surplus revenue on works properly chargeable to capital. These were the arguments he would a])p]y to tbe assertion made on the flooi- of the Ilouse, on every public platform and in the press, that, from 1867 to 1873, the late Government augmented the public expenditure Ly 88,500,000, according to tho figures of the hon. tho Finance Minister, and $10,000,000 acconling the very accu- rate statement of the Premier. In addition to those items, there were others into which he would not enter, which had arisen out of the changed condition of tho country, by the opening up of tho North-West, and the troubles which had there prevailed ; the surveys of the Province of Mani^toba, and providing for Civil Government there ; in short, the establishment of proper administration over that vast and fertile territory, which was, in the future, to become a great source of capital, revenue and prosperity, if those holding the reins of power, to whatever side of politics they might belong, were true to the best interests of the Dominion. The item of $14(5.068 for Indian Grants he presumed would not be questioned. Other items were : — Dominion Uoimdary Surveys, $:i83, 1(53 ; Dominion Forces in Manitoba, 840!),768; Nortii-West Territory Organization, §12.2(52; United Suites Houniiary Survey, 879,21)3; Military Stores, $141,906; amounting in all to $1,144,790. When looking care- t'ull}' at tho items on which the increase occurred, it would be found that they were all of a character perfectly legitimate and necessary in view of the condition of the country, and he was sui'prised that gentlemen on the other side of tho llouso should have made such reckless statements and have placed themselves in tho position they now occup'od in re-ipcct to this nominal, this proper, jus- tifiable and defensible increase. For it was ju.stitiable and (lefcnsiblo in every point, and he challenged the other side to take up tho ex],enditurc from 1>:67 to 1873, item by item, and meet him upon the arguments which he should adduce in respect to that expenditure, lie knew perfectly well that it had been used in all directions as an argument against the late Administration. Ho had seldom noticed a speech made by Ministerialists upon a public platform, in which public expenditure was touched upon, where he did not see the increase in question bi-ought up as a justifiable charge against the lato Administra- tion ; so unreasonable, t-o untenable was tbe position, however, that "l it was only necessary to state the items foi' every sensible, candid and reasonable man, every man not blinded by party feeling, to see through its fallacy. The lallacy was clearly shown in the statement which he now placed before the House and before the country, and he challenged its contra- dicticn. He asserted also that there was no period in the history of Canada where any Government was so emin- ently' justified in a liberal outlay as was the Government that held the reins of office up to 1873. Thei-e was no period when the country had been so prosper- ous, when it experienced so rapid a growth and poured such a flood of wealth into the public Treasury ; and there were no iiuiiciitioiis of that great crash which followed it excej)! the na- tural indication that such periods of prosperity must bo followed within ?i certain time by a corresponding period of depression ; but whether they would conic soonei' or later it was not give:i to the mind of most men to know exactly'. Perhaps the only i>er- son to whom it hud been vouch- saR"! to have that entire and ooi- rect ytrngnostioalion of the future, the only person for whom the veil which hid the future was withdrawn, for whom the curtain was lifierl that ho mitfht looiv ujion i'uturity — " look upon tl'-c h'.'ods of time ami loll uiiich gruiii should germinate and which tail " — w:'.- M'ds he made that re- markable speecii in which he said: " Whatever 1 ma}' say is but repeating over and over again what you are all familiar with." On tlia'. occasion another gentleman distinguished for his great patriotism, for his atlhercnce to high principles, and lor other quali- ties which he would not mention, also addressed the House. This was the member for East Middlesex, Mr. David Glass. " He (Mr. Glass) felt it his duty, as an Upper Canadian with strong foelings of patriotism, to express his entiredisapprobation of the attempt to throw odium on the Finance Minis- ter and the distingui-he I leader of tho Government. " These were the utler- ancos of hon. gentlemen in ISTJJ. Up to that time the shadow of a cloud had not i'allen upon the country; the present h^inance Minister had male his prophecy, but nothing had coinoofit. llowcver, in IRTf, as tho mouth-piece of a new Administration the Finance Minister (Mr. Cartwright) nnvle his first Bmlget speocli. It was a speech full of gloom and darkness and distrust, and tho country was alarmed and disturbed by his ])redie- tions of the evil to come, lie brought down to tho House an enormous agu;ro- gate of Rstimates ti^- 1874-5, and tt> add to that Budget, he brought down Sup- plementary Estimates for the current year 1873-4 of a magnitude never pre- viously brought before the House of 12 Commons. He (Mr. PJu^b) wished at thiH point to claim the attention of the House for a few minutes, while he spoke of a peculiar feature in this . unusual action of the Finance Minister. A great deal deponded.in all the present examinations into the financial affairs of this country upon the position which the countiy was in at the time, when the hon. the Finance xMinister took the mana^rement of its finances. He brought down a statement showing What the ex])enditure of 1874-.5 would De, and, in doing .so, stated that the (xovernraent had been forced by the ^gislation of 1873 to make an inoi- mou.s addition to the current expendi- tuie of the country. But he made one very remarkable statement, which attracted great attention in the House and ,„ the country. He sai.l, in effect : lou cannot expect that, even with the great commitments of our prcde- ces.>ors pressing upon us a,,,! starinir n« in the face, I .hall cut down the expenditure of the Department of njy .on. fnend (he Minisi.r of Public VV orks. hven in view of the teniblo disasters which were about to fall on the country, (he nresent depression in trado, the decline in the revenue, the increase of indebtedness, they could not expect him t/> do this. Why that was one of tl:e directions above all others in which the exi.en- dii inc. niglu have iK-onndi.coJ. There must have been many public works upon winch, with g.vatpropnetv and without (Jisadvanlagn to the countrv, the oxncnditme might nave been .lis. pcllSod will,, o, o-.v.-ltly vcdliccd Ulltil some more loriuiKitc condition of atbuis enabled the country to go on jvuli them. Although it was o"e of the most important, it was one of the easiost JJepa.imenis u regulate; pro- vided, always, that it vvas not olor- riddcn with political cousideiMtions, which prevented it liom bei .g properly dealt with. It might have been (he pressiue from the oiilsitle of hungry partisan contractors, which made ti .) finance .Minislcr unwilling or unable to deal wi(h It. He brou-ht, down Supplementary Estimates whiuh were to be added to the expenditure of the current year 187;]-4. an.l, with more ingenuity tlu;:; candour, chnrged (hem against his predecessor, Mr. Tilhy. These Supp'ementary Estimates were double the amount — he might almost say three times the amount— ot any that had ever been brought down. They amounted to nearly twenty- five hundred thousand dollars. Mr. Tilley stated, in his Budget speech the year before, that the Supplementary Estimates made necessary by the legis- lation of 187 ', would be somewhere about fifteen hundred thousand dollars. The system of bringing down large Supplementary Estimates was pernici- ous; it was one that should not be tol- eratel to any large extent ; one that should not be resorted to, except under circumstances of weighty consideration. It was very evident that no Parliament could have control over the finances of a countiy if, after having voted an expenditure that must be adopted, item by item, in full view of the current receipts of the country and its finarcial condition, they should be called upon to pass amounts which had been added to the expenditure of the ])revious year. He (Mr. Plumb) did not say this to condemn any Governmetit, but he said it was a bad system, a pernicious system, and one that ought not to he indulged in. In this he (Mr. Plumb) was sustained by the authority of Mr. Ghvlstone in his evidence before the Committee of Public Accounts in lHf)2. If there was an item of the Supplementary P]sti mates of 1873-4 whii-h could properly be placed in the Hsti mates of 1874-5 the Finance Minister was fidso to his duty if he (lid not put it there, or if ho refrained from doing so for the purpose of a temporary triumph over the gentleman who was his predecessor, or for the sake of mislead- ing a newly-electod House, not familiar with ])ul)lic affairs. If the hon. the Finance Minister did that for the sake of obtaining a political triumph, for nakinir a point which was more or loss objectionable against his prede- cessor, it ought to deprive him of the ' conridenco of the financial world. The i nan who held the position of Finance Minister of Canjula should bo above party considorad iis, and should never allow himself to i.. lulgo in those party utterances marked by party prejudices which might be nermitted, although objectionable, in his colleagues. He 13 ongbt tx) stand apuvt,aiid to hold himself above and aloof from party squabbles, in order to hold the confidence of the country, and ho could not command that confidence if his power was used for Srty purposes or party triumphs. Ho ir. Plumb) had already given his au- ority upon this question ofsupplemeu- taiy Estimates. Mr, Gladstone — who, apart from the erratic (conduct -which he had displayed during the last few months, held and deserved to hold a high place in all matters of finance in England — gave evidence in 1862 before the Public Accounts Committee of the House of Commons to this effect : "Supplementary Rstimates are one of the greatest evils that the House could endure." The objection urged against them by Mr, Gladstone, and which he had repeatedly pressed upon Parlia- ment, was "that he regarded such Estimates with great jealousy . Though very plausible in theory, he thought • that no practice tended so much to defeat the efficacy of Parliamen- tary control as the easy resort to Supplementary Estimates. To render this control effectual, it was necessary that the House of Commons should have the money transactions of the year presented in one mass, without which the House would not know where it was." This House had constantly this evil presented to them by a Reform Government, and now, while they were taking the current year's expenditure, and were told that in certain items there was a large reduction, they had better wait until they got to the end of it, and see what additions were brought down in the Supplementary Estimates, in order that they might know what the aggregate was, and then they could judge better and more intelligently as to the expenditure of the year in comparison with that of the years which preceded it. Of course, it might be, and it was necessary frequently to bring down Supplemen- tary Estimates. It was necessary in 1873 ; the legislation made it necessary. But this was not the case in 1874. Prom the Schedule A of the Supple- mentary Estimates of 1874, he would read from among other itcras and things— '' Militia, Police Force in Manitoba, «GO,OnO;" "Hudson Bay Company, 129,000." Admitting that this latter was a proper charge, it did not belong to that year at all, but to the previous year, and it should not have been used to swell the abnormally largo expenditure of 1873-4. Then there was the Red River Road, construction and working expenses $235,000. Ho should like to know how much of that expenditure accrued out of arrangements with contractors. Me. MACKENZIE: Not one dollar. Mr. PLUMB: I did not say what the eontracts were. I think the hon. the Premier is rather premature in his remark; this would seem to be a sore subject with him. Mr. MACKENZIE: If my hon. friend will allow me, I may state that the whole of that amount was expend- ed before the present Government came into office. Mr. plumb said then a good deal of it was spent during the troubles in Manitoba, and it was spent for a legiti- mate purpose. Ho did not insinuate that it was spent for anything else, but the hon. the Prime Minister seemed to feel it rather a sore point. He should show something further with regard to the Red River Route by-and- bye. The increase before stated be- tween 1868 and 1873 was as follows : In items of the accounts open in 1868, grouped together for conveniejico and condensation, they found an increase in the following : — Civil Government, Justice, Police, Penitentiaries and Legislation Geological Survey, Arts, Statistics and Census Immigration, Quarantine and Marine Hospitals Pensions and Superannuations Ucean and River Steam Service and Lighthouae and Coast Service. ... Fisheries Miscellaneous Expenses Customs Excise Culling Timber Post Office Department Public Works, Construction do Revenue $780,712 122,196 303,690 64,474 500,234 46,675 9,709 181), 996 127,996 13,478 770,468 1,699,732 1,763,393 TiicBo iUiiuo loguilici uuiouDted to $8,668, 358 In addition to the above appeared the following items in 1873-4, which u wore not in tho accounls of 18GT-8, namely: — Indian Grants ezpenditare $146,606 Dominion Lands 283,163 do Forces, Manitoba 409,768 Organization N -W. Territory 12,262 U. S. Boundary Surrey 79,293 Military Stores 144,906 Manitoba Settlers 69,330 Amounting in all to $1,144,790 All the above sums amounted to Sy, 813,496, and upon those the Finance Minister and his colleagues and backers based their charges against tho Mnancial administration of the late Government and their defence of their own lamentable failures — failures which could no longer be concealed or palliated, and which had caused general anxiety to be felt throughout tho country. The increases occurred during a period of constantly augment- ing obligations arising out of the arrangements of Confederation, the admission of new membei's to the Con- federacy and tho formation of a Province in the North-West Territory. The receipts dui'ing the seven years from Customs increased nearly 70. per cent. ; from Excise 85 per cent. ; from the Post-Offico 100 per cent. On these three items alone the increased rece.pts were about nine millions of dollars. Prosperity so unexampled during a period of decreasing taxation was a sufficient justification ofa liberal outlay, notwithstanding which, an aggregate of nearly twelve millions of the surplus revenue was applied to works charge- able to capital account and to a sinking fund. They, on his side of the Ht)use, were willing, and had always been willing, to accept tho expenditure of the year 1873-4 as the one by which they were willing to comjiare their admin- istration of alfairs with that of the present Government, by which ihey were willing to test their economy; by which they were willing to test, item by item, the expenditure of public money, providing they were dealt fairly with as regarded 1874. For they were not willing to accept items which had been added by tho present Government since they came into power in the Supplementary Estimates for 1873-4, brought in by Mr. Cart- wright ; items not contemplated by I Mr. Tilloy when he made up his Bud- get in 1873, and brought in bis financial measures of that j'ear, or resulting from those measures; and he might say that no one had ventured to ques- tion the clearness and fairness of tho statement made by Mr. Tilley. What- ever might be Mr. Til ley's opinion a» to the sources of future revenue ; what- ever might be his opinion as to the iwwcr of the country to sustain ihis large expenditure which seemed to be inevitable; whatever might have been his opinions upon the past, present or prospective financial position, he could have no objecl whatever in increasing or diminishing the actual statement of facts which he had to bring before ihe House in his Budget speech. Mr. Tilloy was a member of the party then in power that came to the House with a clear and sufficient working majority, after passing through the election of 1872, and there was no indication in the spring of 1873 which should have in- fluenced Mr. Tilley in preparing his statement to gain any political advan- tage even if he were capable of being so 'influenced. The statement had been prepared long before Parliament met, because it did not meet until the month of April that 3'ear, if he rememl)ered rightly. There was no reason, from Mr.Tillay's knowledge ot thecountiyV affairs, to lead him to suppose that any change was imminent, and, therjfore, until he (Mr. Plumb) had better evidence, he should take his stand upon the financial state- ment of Mr. Tilley ; and he trusted the time would come when his hon. friend tho Finance Minister could no longer express regret, in making his Budget statements, that he had no hon. gentle- men on the opposite side of the House 0^' sufficient financial ability to discuss them, for he (Mr. Plumb) ventured to hope that, if the hon. the Finance Mi lister continued to represent his cou Jtry in Parliament, Mr. Tilley might,at some future day,confront him here in this House ; and he ventured to predict that the statement he (Mr. Plumb) had made in Mr. Tilley's defence would be fully borne out by tlmt gentleman himself. He would say this further. Ho had read, with astonishment, tho statement of the Finance Minister, made in public, with V u u regai-d to tlio administration of affairs in 1873-4, and ho should be justified in bringing it before the Hou^e even if it had not been referred to in the very firet debate following tho meeting of this Parliament. The hon. member said that he had often asked himself whether, in the spi-ingof i^'7H-4, tho.-c gentleman were not like ii drunken ci ow which had burst into the spirit loom and were endeavourinf; to scuttle tlie ship. Was that the languji^e that shciuld come from a man who had charge ol the finance9,and to whom was entiusted the delicate operation of making loans, and of meeting the great iinancieis of England ? Could he go there wiih such a report of such an utterance u|i()ii record ? Jf there had been the slighi- est foundation forany hostile cri.icisni. it should not have taken such a shape. One might havesupposed thalthohon. gentleman himself had been ashamed of his utterances, were they not dolil)e- rately published weeks after they wcve made, and had they not then boine the impress of having been carefully con- sidered, revised and conected, probably under the auspices of the hon. gentle- man himself. lie (Mr. Plumb) could say, with truth, that no provocation, however great, could have jusiitled a responsible Minister of the Dominion of Canada in using such language. But there had been no provocation. The present Opposition had contented them- selves with criticizing the affairs of the Government, as they had the right lo do, in a spirit which was perfectly proper and justifiable. They had critcized the public acts of the Govei'n- ment, the public record of the Govern- ment, the - practice versus the pro- fessions of the so-called Eefbrm Admin- istration. They had aiigbt to compare the previous promises of thof^e gentle- men with their present position ; to take up the record and see whether these hon. gentlemen had kept their promises to the countiy ; and they would be recreant to the duty entrusted to Her Majesty's lojal Opi»osition if they did not criticize carefully, scan carefully, scrutinize caiefully, word after woi-d, figure after figure, every- thing jippertaining to the interests of the couniry, so long as they confined themselves to a liair, lionest, open, juBt, candid examination of the position. Yet, for this, they were abused on every ])latform in the countrj' upon which tho Ministi-y had appeared, hounded in the newspapers, pursued by vituperation and detraction such as he (Mr. Plumb) had never before known in this country to have been ])Oured on the heads of politicians, and lie had lived in Canada many years amid much >tri;oand party bitterness, lie could only say that nothing in the legislaiion of 1873-4 justified the uiifivourable Ci'iticism of the lion, the Finance Minister, bul that it should rather challenge his admiration, as -bowing the iar-reaching statesnian- ^hip, the prudence, the forecast, a? d the judgment of the men wtio had been enl lusted, year alter year, with the govcrnmeni of this countiy, and to whom the country owed, in a large measure, that proi-perity which had exi.sled up to the time that hon. gentle- men opposite took the management of its altairs, up to that evil day when the admiiiistration tell into their feeble hands, lie had been looking over the Statutes of 1873, and had failed lo find in tho.-e Statutes any thing which justified the criticism of the hon. the Finance Ministei-or his colleagues upon the legislation of that Session ; and he had failed to find anything that did not grow legitimately out of the neces- sities of the situation. Was there any fair objection to, or could there beany unfavourable criticism on, the readjust- ment of the subsidies ? It was apurely proper financial transaction. It was tound that the subsidies ha Finance Minister, because tho very in^tant that gentleman and his friends came into' power, under tho tyrannical rule of that gro:it majunty which the Finance Minister had at his back, new propositions, entirely^ at variance with tho plan' of the old Gov- ernment, were taken up and hurried through the House at half past three in the morning; propositions which had not only reversed tho whole scheme of th'.; late Government, hut had com- mitted the country to so vast an out- lay, that no man in the House could measure it, instead of the limited sura of thirty million dollars, which the late Government wore justified in promising as a subsidy in the then state of public opinion with regard to rail- way matters, which had since been greatly modified by tho panic of 1873, and by the failure of the great enter- prises through the world. The hon. the Finance Minister had no right to throw that in as an item of tho bur- dens, because ho relieved himself from it tho first opportunity, and adopted a worse plan. Then, ho said, in addition to that, there wore forty-one million li. :%t'!'- ' dollai'B of public debt which was to fall due, :incl the roncwi.l of which had to bo arranged i'ov. And ho addei tlmf amoiinl to the public burden, and he made jicoplc believe, peoj^le who had not lliat aptitude for simple addi-. tion which he had stated every Sena- tor ought to have, that the renewal forty-one million lollars, which was a mere ordinary business transaction, the changing of one security for another, was an additional burden thrown upon his shoulders by his ])rodecessors. It was the most natural thing in the world to re-borrow for that maturing debt ; it did not create a ripple in the iinancial world to have that debt renewed ; it did not create a new obligation, but was merely an adjustment of the old debt, which he had etibcted at a low rate of inteiest. These items were seven ty-one millions out of the $131,000,000. Ifc (Mr. Plumb) had taken up the expenditure of this Government since they came into power, ujion those works to which they said the profligacy of the previous Administration committed them, and ho had suniined it up and know how much had been expended. He had the hon. the Finance Minister's own statemei t in his Budget speech as to how much more would be required, and he failed to find in the aggregate anything like thesum of $131,000,000. Mr. Cartwriylit now stated that he required foi- the enlargement of the canals, the Pacific liailway Survey, and for carrying out all the obligations which were upon his hands, a certain sum. It was not a very vast affair, it would not ruin anybody, oven in the present condition of the country, if they were proj)er expenditures to be made in the interests of the country ; and, he ventured to say, there was not a man in this House who would not willingly vote the money, despite the deficits which had arisen out of the in- competent financiering of thoMinister of Finance. He had only to look at the statement to seo the utter fallacy of the whole reasoning, which had been built up in order to condemn the previous Government in respect to the management of their Finance Min- ister. Mr. Cartv^n'ight's statement in that direction had been so mislead- ing and fallacious that it was difficult to put confidence in it in any other. He would now refer to another point upon which the hon. the Finance Minister was mislead- ing the country, perhaps not knowing- ly, but the country had been misled by his assertion that he had relieved the public burdens largely in the reduction of interest upon the public debt. Almost one-half of the hon. the Finance Minister's Budget speech of last year and of the year before con- sisted in his exculpation of himself fi'om blame, in regard to tho loans which he had floated in tho English market. He had made the most astounding statement bust winter that the four por cent, loan of 1876, £2,500,000 sterling, had been made at a moment so auspicious, so well justifi- ed, so exactly in tho nick of time, that if ho had delayed a few days in pre- senting it to the public, there would have been a loss, to use his own words in one of his picnic speeches, of " several per cent." He talked of" seve- ral per cent," on a loan of such magni- tude— why, one per cent, was $125,000 : but that was a trifle. There were no such fluctuations as several per cent, in the value of good public .securities, and there ought to bo none in tho public securities of Canada. At the same time that the hon. the Finance Minis- ter told tho people that that loan had been floated at a moment which was the only time when it could have been floated with tho success which had attended it ; at the very time he made that statement on the floor of this House, in the month of February suc- ceeding the dato of negotiating thd loan, South Australia had offered for public competition a loan also bear- ing 'bur per cent, interest, and had rocei 'od from 96 per cent, to 98 per cent, for it ; whereas the Fin- ance Minister's loan, which bad boon so successfully floated, in the "very nick of time," had obtained, when tho allowances made in the way of interest were taken into consideration, not 89 per cent., or, he thought, 88^ per cent, was nearer the mark. Now, it might be that the great Dominion of Canada had not reached tho height of credit which South Australia had attained ; it might bo that some of the utterances of the hon. the Finance I Minister hnd not tended to increase [the public contidence in the present or [future financial position of Canada ; jit might be that the people of England had obtained ii glimpse of the " brazen " ^iilo of the .sliittld which the hon. the Finance .Miniistor habitu.illy presented to the people of Canada, ,vhile he pre- sented to the confiding eapitalists of London only the silver side ; and again, it might be that the credit of this country had not attained the height to which its groat resources entitled it. If that were the ca^e, he did not think it would be iieccssar}' lo look farther for reasons than to the unsound utterances of the gentlemen who had sought to degrade tlio position ■of Canada for the sake of throw- ing obloquy upon their political pre- decessors. In connection with the statement that the public burdens had been decreased, he (Mr, Plumb) would say this : that upon the loan which had been made at four per cent., the money received into the Treasury was not, by nearly eleven per cent., the amount which Canada was represented to owe ; that into the public Treasury, out of the loan of $12,500,000, came but $11,100,000; a discount of $1,400,000 or thereabouts, and there had been nothing gained by it. A five per cent, loan, having the same period to run ; if it could be floated on the London market a" 195, or 5 per cent, premium, which he (Mr. Plumb) did not think wouid have been an extravagant price, if Canada had the credit on the Loudon market which she ought to have, and would have had, but for the representations that had been made on the floor of the House and elsewhere, — such a loan, by having thirty years to run, would have represented 4f per cent, interest to lender and borrower. A 4 per cent, loan sold within a fraction of 89 ger cent., the price obtained by Mr. artwright, would have yielded exactlj' 4£ per cent. also. There was no advan- tage in getting u low rate of interest at a sacrifice of the principal, except to boast of to those who did not know, when they looked at figures, what figures meant. Besides, these loans have been made for the purpose of prosecuting public works and in order to get capital into the country, and the reduQtlQ wi a'jsurdwa \{Qi\l.\ be made by stating that, suppofting the Finance Minister had made a 3 per cent, loan, ho could have boasted still more. Now, a 3 yer cent, loan, to pay 4f per cent, interest, would have to be sold at 73 per cent. ; and we would be a loser of 27 per cent, of immediate capital, leaving us but $9,125,000 as the proceeds of a loan of $12,500,000; and, with equal pro- jriety, the Finance Minister might lave boasted of reducing the rate of interest. Had the hon. the Finance Minister sold a 5 per cent, loan at 105 ])er cent., he would not only have received 11 or 12 per cent, more, but the premium of say 5 per cent, also — 10 per cent., in all. of present capital. And on a loan of $10,000,000 at 5 per cent, ho «rould have got $1,600,000 more money than he did on that at 4 per coift., and would hcve been none the poorer as to the rate of interest ; and on the loans he had made at 4 per cent., which ho was congratulating the coun- try upon, there had been no saving of interest as compared with a 5 percent. at 105; and in the aggregate of 4 per cent, loans negotiated by the Finance Minister, the country had lost imme- diate capital to the amount of upwards of five million dollars. The country would scarcely bo prepared for such a statement as he (Mr. Plumb) was mak- iiig, but the proof was irrefragable ; the state .iient he had made in regard to the loan at 4 per cent. — namely, that, although nominally at 4 per cent., it cost us 4J — was one which ho could establish by calculation, and for its jiroof ho could refer to the highest authority, to the antliority which was accepted everywhere iii iho largest loan transactions in the United States with regard to making investments of long date upon public securities. He made that state- ment, and was willing to assume all its responsibility. Therefore, the loans of which they had heard so much were merely nominally 4 per cent, loans; they never were really 4 per cent, loans ; they were loans upon which the country paid an equivalent of 4f per cent., taking into account the discount and the intt-rest allowanoes made by the hon. the Finance Minister. He doubted the policy of floating Govern- ment securities at any rate which should compel the ealo of thorn much 20 under par, or of having quotations made conHtantly, on the London market, of Canadian (securities very much below par. That was, of course, a mere mat- ter of opinion. He doubted the policy of making loans without public tender. No man could aft'ord, in dealing with the finances of the countrj-, to place himself in any position which needed elaborate explanation ; no man making loans, taking the lesponsiblity of choosing his own time, beyond the control of Parliament, and dealing with large sums, wherein a diiference of J per cent, or ^ per cent, represented a fortune, should do so, except in a manner open to the world ; and he should not bo necessitated to give the elaborate and painful explan- ations to be found in the Eudget speeches. The toi-ms upon which loans of that kind should be negotiated were that they should be ottered at the proper time, under proper precau- tions, with a proper regard for tlio condition of the money market; tak- ing advantage, as every financier should do, ot the advice of distin- guished financiers, but not governed completely by them, because a man must act upon his own judgment in such things; he could not rely entirely on the advice or those who might have interents antagonistic to his. He ithould then otter his loan b}^ open ]iub- lic competition to the highest bidder. Other (xovernments did so. France otl'ered her loans to public competition, even in the very worst of the ciisis which followed the disasters in which she was involved and which ended in her distressing humiliation. France thus commanded the confidence of small investors who, even in the worst of limes, ottered four, five, even ton times as much as the loans pro- posed. He (Mr. Plumb) liad had personal experience for many years in the United,. States, pio- vious to his residence in Canada, in this connection, lie had been a lai-ge offerer for loans, and ho knew what he said when he held thai no man, hold- ing a similar position in the United States to that of the Finance Minister of Canada, would have ventured, in former days, to have offered a loan without giving sufficient public notice, without receiving sealed bids, not bearing orf the outside the names of the parties bidding, but simply num- bered — carefully opened in the pre- sence of disinterested gentlemen, the contents scrutinized and noted, and the award mado in every case to the highest bidder, so that those who ofi'ered even the smallest fraction above the next liighest price, would get their due consideration, and so throughout. This was the course which should have been pursued. It was one — he was only stating a general principle which should govern us ; and, if the hon. the Finance Minister had not succeeded in getting as high a price for his loan, in that way, ho would not have been blamcabie, because ho would have followed a safe precedent; one that could always be justified, because it would obviate in the j)eople's minds the suspicion of combinations; and all the discussions which had taken place in this : ouse on the subject; would have been unnecessary. And had the hon. the Finance Minister adopted this system, ho (Mr. Plumb) doubted whether the country Avould not have been the gainer. But the course ])ursued placed the borrowei* in this delimma: In the first phice, when a loan was made by Canada, for in- stance, en bloc, without competition, it fell info the hands of the great capita- lists and tlie great bankets, whociistri- butcd it afterwards at their pleasure to smaller investors, making theii* profits upon it. When a second attempt, was made by the same Government to float a loan, the borrower was in the hands of the capitalists who took up the first loan ; he could not get out of their hands, if they chose to make use of their power; they could make a price in the market to suit themselves, it was well known that large loans which vere not constantly dealt in in Lorn hard-street or the Stock Ex- change, could not bo sold by forced sale without greatly depressing the regular price. It was well known the price could be put down at any time by throwing a largo amount on the market. If it had been desirable at all to i5ut a pi-ice on the J'inance Minister's la.st loan, the bioker would say that the last quotation was the price to be taken, and a quotation could be made at any time in the inter- 21 est of largo loan-mongers. Quotations could be made by men who wanted to get hold of the security at their own prices, and wore interested in depres- sing the price. It required no tinancial skill Jiiul very little financial judg- ment lo float the loan. The condition of the money market in Hng- land during that period and long after- wards, was one which, he ventured to way, despite the postulate taken by the member for North Oxford, was one which inevitably followed a great do- pres.sion. It wan a condition olgi-eiit plethora ; llioro was a sluggishno.sH in the money market, and nothing more unsound was stated by the hon. niembor for North Oxford than the conclusion he attempted to draw that a great plethora of money, a very largo accumulation in the banks, was an evidence of pro^pei-it}'. It was exactly the reverse. The Lon- don Joint Stock Bank and the other banking establishments of London were so loaded with money tliat they had to stop interest on deposits. The banku woie lending money, according to the London quotations, at 1 and 1^ percent, per annum, year after year; and, when the hon. the Finance Minis- ter went to negotiate his loan, the gentlemen who kindly took it could deposit the bonds in the banks and borrow the money at less than one- half the interest they were drawing. Although, if to-day the loan was not quoted at the price which the Finance Minister nominally obtained tor it, there was still a large profit gained by any large subscriber who had held it, for he could have borrowed money on it at half the rate which it yielded, and there was, therefore, a groat difference in his favour in the interest he received and the interest he paid. It was astonishing that it was contended for a moment that there was any merit, financial skill, or peculiar ability, in putting upon the London market, when money ruled as itdid, the comparatively trifling sum borrowed by Canada. At the same time, it was well known that many foreign borrowing countries were falling into diaoredit. That fact did not touch Caaada unfavourably ; did not react upon us ; it opei'ated to our advantage. Turkey, Egypt, Spain, ^Russia, the South American Eopublics, and other countries had drawn enor- mous suras of money from Kngiish capitalists. Their loans had boon distributed through England, invohtors being tempted by the high rate of interest offered. The bonds of foreign railway companies had been sold at latort that also promised a very higii rate of interest. But those facts dia not affect the negotiation of the public securities ot the Dominion. On the contrary, the l)anksin England were looking for safer iiivo.straents for their money, which wan lying idle in consequence ')f tlie withdrawal of con- fidence in railway corapunios and wtuit of faith in the countries which had formerly boon the chief hnrrowers, and, when such a state of affairs existed, that was the moment to take advantage of the condition of the money market. The Dominion being part ot' the British Empire, governed according to English law, and, to a great extent, under the control of the traditions and opinions which wore accepted by Eng- land in her financial transactions, any default in the payment of interest on the debt and the provision of f Sinking Fund, was an impossibility, and that atfoi'ded an additional reason wli}- the loan should have been made with more ease and at a higher price than had boon obtained by the hon. the l^inance Minister. If the hon. gentleman had floated a 4 per cent, loan at pai-, there would have been something lo boast of, and he would then have been entitled to make up an account of the amount of interest saved to the countiy. The manner in which that account had been drawn uji — ho did. not i-efer to anything but that special item in the Public Accounts and official documents — in order to hoodwink the people, was ono which would not bear examination, and in making ujk any statement in regard to interest on that loan the rate of interest must be calculated upon the proceeds of the loan, because, by parting with principal, we paid a far higher rate than the nominal rate on the bonds. Yet, for 1 he purpose of obtaining credit in regard to finance, the Government claimed that a 4 per cent, loan could only have beeu negotiated at that critical moment ; that, as the Finance Minister had Htated, it could not have been made a »ii^ iow tlitys l;itor, and Iho people wore told he had roduood the rate of intere^i on the late loans paid by Canada to 4 per cent. He (Mr. Plumb) had clearly shown that the lion, gentleman had brought it down to one-quarter per cent. lo!i«than 5 ; piiicticnlly, he had not reduced it at all, for he could have floated a 5 per cent, loan at 105. That was the true itato of the case, and it deprived the Finance Minister ot a good deal of the merit which had been claimed for him as a succesbful tinancicr, clairaeil by his partizans in jjuffing up his financial achievements. It did not lie in the mouth of any hon member to say that, at a time when there was such a plethora of money in the London joint stock banks they could not make profitable loans, that it was deserving of any credit to go with Canadian Govorn- inent securities and obtain a lotm in England. It was decrying the credit of Canada. Itwas placing the Dominion on a very low level to say there was any necessity to have a combination of the great financiers of London to take a j-altry loanof $12,500,000,which was as nothing in the great transactions which took place every day in a country which was of necessity the great fin- ancial centre and the exchange of the world, and where the tendency always was for money to accumulate and lie idle. The House had had a statement showing how the loan had reduced the general rate of interest, and, if the other statements were of a like character, there was little foundation for them. The hon. the Finance Minister had stated that the receipts of the country through the two great sources of I'cv- enue — Excise and Customs — had been for some time declining, but that now it happened they were beginning to revive. Up to the Ist July, the end of the last fiscal yeai', there had been a persistent and continuous decline. If there had been a slight spas- mottio increase, it was due more to the fact that, during the last two or three years, owing to the necessities of the case, in the absolute stagnation of trade the imports had fallen down to a point so absolutely low that it was absolutely necessary, in spite of the hardness of the times and of the gloomy prospect ahead, for traders to replenish their im- povorisUod stocks, ^out he did not believe there was any increase which | could be relied upon as an indication of improvement. Ho could not! admit there was any authentic infor-' mation that would lead the House to believe there was the slightest change for the better, in the business situation; hut the hon. the Finance Minister assei tod that there whs an improve- ment, although he was face to face with another deficit, nlthough the Opposition could show by the Public Accounts that the receipts and expen- ditures chai-geable to revenue did not balance within 83,500,000, there being a deficit to that amount, and he declared he had nothing to offer the House forthe purpof^e of making up that deficiency. Some paltry charge upon the expenai- ture he might strike out, some false economy he might propose, but the general policy of the Government was unchanged. He (Mr. Plumb) venture^ to say that nothing conid be more dis- astrous, nothing could bo more unbusi- nesslike, than to permit that state of ' attairs to continue without, in some way oi jinother, attempting to remove the difficulty. The Government caused the first deficiency in the history of Confederation, amounting to $1,900,000, b}' a failure to retrench or to impose taxes. Another deficiency followed it, and another deficiency would occur in the present year, in spite of all the reductions which had taken place am public works, and the exercising of economy, reducing somewhat the pub- lic expenditure which had swollen with tremendous rapidity in the controllable expenditure since th« present Government came into power. Nevertheless, the Finance Minister had shown no disposition to meet the case and deal with the great questions which were connected with the fiscal Lffairs of the countiy in the spirit of a financier or statesman. There might be a reason for that result. They were approaching a crisis ; they were coming to a point when those hon. gentlemen were to i)e judged. They were coming to a time when those hon. gentlemen, who had been supported by a mechanical majority, would have to appear before another tribunal and answer for their adminis- tration of affairs during the last four years, which had not been such as to meet with the approval of th'ft 23 country. Thoro was a reason why ' on. gentlemen opposite manifested no ^disposition to deal with that great question. The best interests of the country might suffer, its credit abroad and its position in the eyes of the world must sulTer, simply because at this moment those hon. gentlemen refused ■ to deal with the pressing fiscal ques- ^ tions, though, on it being manifest that the revenues of the country would not moot the expenditure, the Finance Minister was bound either to cut down the expenditure or increase the revenue. The hon. gentleman should have oxerci>">d prudence and economy in the right direction, but he had failed to do it. In 18'74, when the hon. gentleman had brought down his Budget, he proposed that an increase to lff| per cent, should be made to the principal list of taxable imports for the ver_y good reason that if that sum were multiplied by six it would make 100, and Avould therefore be easy to calculate. At all events, that was the reason given. When the hon. the Finance Minister was dealing with ques- tions which he rjid not understand, ho madoaclianir''. lie had not endeavoured to deal with tho taiiff in viovv of the changed cbndition of the country, or to approach it in a statesmanlike manner, but simply added 2^ per cent, to tho 15 per cent, list and afterwards he had got -1 before the people and endeavoured to pv.iSuade them that tho Government had afforded more protection than their ftrcdecessors beeau.se the}' had i ncrea.sed he tariff from 15 to 17^ per cent. Was such a course statesmanlike on tho part of hon. gentlemen who had charged that the fiscal affairs of the country had been grossly mismanaged by their predecessors in office ? Was that to be expected at the hands of the Vinance Minister who claimed to possess a monopoly of all the financial information in the country, and who had expressed regret that there was no member on tho Opposition side of the House who was able to cope with him in regard to financial questions? It being Six o'clock, the Speaker left the Chair. After Recess Mb. plumb said, when the House adjourned, it w^uld be remembered that he was discussing at some consid- erable length the consequences of the Eolicy which had been adopted by the on. the Finance Minister in mak- ing his loan. The plan that ho as- serted was the true one for bor- rowing on the part of any Govern- ment, and the manner in which bor- rowing should be conducted ; and the fact was that open tender was the only system which would be entirely fre» from question or suspicion ; and he novr . wished to say that the hon. the Finance Minister did not succeed in placing his loan as he (Mr. Cartwright) would wish them :o understand, nomi- nally compelling tlie country to pay an interest of four percent., but actually the conditions of his loan made the rate 4f per cent., and did not in any way reuuce tho/ate of interest, below that of a five percent, loan, oi" the thea going rate in the market, thn'^ was to sa}', 105. Ho did not speak of those things without positive pi'oof. Some Hon. MKMBERS: Hear, hear. Mr. plumb said, hon, gentlemen might say " hear, he:u-," and laugh at the statement; but he could say that, if they attempted to dispute his nsserlions in this respect, they would liiid that they and not himself weio ignorant of the subject. The amount pail \V,v this loan, under all the circumstances, was one which was extraordinanij' ad van- . tageous to the country, con.siiloring the fact that the hon. gentleman (.Mr. Cartwright) who went to Kiigland and negotiated it, had done ovoiytliing in his power, prior to milking those nego- tiations, to lower tbe credit of the country by the statements that he had made with regard to its position. The n^,. Budget speech of 1874 was more cal- "'• culated to cause disaster to and depress the credit of this country and throw distrust upon its financial admin- istration, upon the position of its publi» men, and upon the manner in which its affairs had been carried on, than any utterances which had been made in this House since he had the honour of knowing anything of its affairs or of the course of its debates. It came from an authoritative source. It was A very different thing for a t*'inanoe Minister to rise in his place and make a deliberate statement of that kind '.:%■'(■.■ 94 from what it would have been for a jjrivato member to have done so, no matter what the purpose wae — whether to damage his opponent or to elevate the position of his own party, when what was expected to be a calm and authoritative statement of the con- dition of the country was expected from a gentleman to whose hand the financial affairs of the country were entrusted. The statement ol the Finance Minister went to the country and was read in England, and it represented that the most reckless extravagance had marked the administration of his predecessors ; that an incompetent set of men had conducted these affairs, and that they had cariied the country almost to the verge of bankruptcy owing to the obligations they had assumed and thrown upon it. Why, the language used with regard to the Pacific Railway might be taken as a sample of the whole tone of the speech; this was, if he (Mr. Plumb) remembered correctly, that the engagements for that Kail way would have increased the public expenditure nearly $150,000,000 ; and ho had since heard that the gentlemen who under- took to complete that work in ten years should be held up to public execration for having pledged the country to such an impossible, gigantic, reckless;, and destructive enterprise. He would again repeat, because they were constant) v rcfeiTing to this %■' O subject, to the knowledge which the late Government had of rail- way construction in the Uniteil States, and of the fact that four or five men had built the road from San Francisco to a point north of Utah, almost by their own enterprise, though with Government aid, it was true. These men had taken the initiative and had carried the line over a route much more difii- cult than anything which was ever coniemplated in connection with the Caiuidian Pacific Railway, They ran it over an ascent of 7,000 feet at the highest jwiiit, and built it in four years, at a period, moreover, when labour was high and everything inflated in the United Stales, in consequence of the war. Under such unfavourable circum- stances, those men had carried their undertaking to a tviumphant success, and never were their bonds depreciated below par, and the net earnings of the road were now enough to pay large divi- dends aud interest on the whole stuck and bonds, though he believed the pro- cess of diluting the stock had gone on to a frightful extent, thus making it represent a very much lai-ger capital I than the road cost although it wa« built during a period of the greatest inflation. This being the case, it seemed no rash under- taking for the gentlemen who repre- sented the then Government of Canada to say that they would build the Pacific Railway in ten years, provided always that they did not increase the burdens of the people ; this was the proviso which rendered their position a per- fectly impregnable one, and he was surprised that year after year, and day after day, in fact, whenever there was a public utterance of the Government or its partizaus, in one way or an- other this charge was brought against the Istc Government; this accusation was lugged relevantly or irrelevantly into almost every speech or discussion ; and hon. !!;entlemen opposite were never tired o)': '^aying that it was a reckless undertaking, or of denouncing the late Administration for having lent themselves to it. Probably, by this time, those hon. gentlemen had almost persuaded themselves that what they had so often stated was true. Onoe for all, it might be said that the plan of the late Government for building the road was eminently justifiable witn regard to the period when the under- taking was proposed ; but he might say that the language quoted the other day from the leading orgin of the party now in power and then in Opposition, by his hon. friend the membei' for VIonck, language used in 1871, ur^^ijed, threatened and induced, by every possible argument, the then Govern- ment to proceed with the constructioa of the Pacific Railway at once, and told them that if this .vas not done they were not true U) the country and its interests; that they should carry out the great trust reposed in their hands, and that they should do it without delay. He referred to the Olobe newspaper. There was no thought of delay then. He did not know that ther* was even a trail across the prairies at I l^e time save that pursued by the Indian, the adventurer or the employ^ of the Hudson Bay Com- pany. The then (Tovernment knew nothing, save by the most cursory examination, of what was the condition ■of the country to bo traversed by the road ; and ho thought it did not lie in 'the mouths of hon. gentlemen opposite to deal any longer with that particular question in so disingenuou^t a manner. "With reference to the expenditure since the period of 187H-4, he might say ho a]»prouchc(i it with a certain degree •ofdilfidencc. There were many con- ditions attached to niiy comparative .statenujnt, and, except the statements -on which they were Lu.-ed woie in the hands of the ])erson who had free access to the public archives, and who was familiar Avith the state- ment in the way that could only prob- ably be attained by gentlemen who 'were in office — there wore many points in regard to which any comparison might necessarily be controverted, and : regarding which, perhap8,some mistake might be made by a person speaking, as one might say, from the outside ; and he was in this relation warned by his hon. friend the Premier, who had seen fit in his public utterances to denounce an hon. gentleman who attempted -to deal with questions of public expenditure. The Premier had poured out the vials of his wrath upon the head of that unoffending gentle- man who ventured to examine the !s Public Accounts. The hon. gentle- man (Mr. Mackenzie) said that this hon. gentleman, a Senator of Canada, who had haH. long experience in public alfairs, was a neophyte and a tyro. What right had he to speak of the oxpondituie, or to criticize public ' aflaii's ? But was this the language ■of the true Reformer, or of the man who was supj)osed to be the leader of , 'ihe party which sought to have -every man take an intelligent interest ID the affairs of the country, .and examine into public questions. Judge for himself, and lake up his own r line and views ? And he (Mr. Plumb) hero affirmed that the humblest tax- myor in Canada had a perfect right, in lublic or in private, to criticise the pub- ic acts of the Government or of any lan connected with it, without being |nbjected to the taunt that he was a jphyte or a tyro. The claim of the 25 hon. gentleman who had ventured to do so, was simply this : he had come into public life long before the hon. the Minister of the Interior, who pro- fessed to know all about public affaire, or the hon. the Minister of Justice, and almost before any hon. gentleman who sat u])on the Ministerial benches, with the exception, he thought, of the hon. the Postmaster-General, of the hon. the Premier, and perhaps six months after the hon. the Minister of Finance, and that hon. gentleman hadas good an opportunity to bo conversant with pub- lic affairs as any gentleman in the Min- istry, and a little better; and yet, for- sooth, they wore told thtitthat hon. gentleman in question must not venture into the sacred regions of criticism, upon the public affairs of this country; that gentleman had shown that thero had been large increases in the public expenditure under the present Government; but no one in this House had ventured to meet his argu- ments. They had heard, in this debate, of everything else, and of all sorts of economies which the Government had instituted, but the Government speakers blinked the grave question which had been put home to them with such clearness, and driven directly in with such logical force. They had not ventured to meet it, and tliey could not meet it. Now, he would venture, not- withstanding the sneers of his hon. friend (Mr. Mackenzie), to take a few figures of expenditures of the present Government out of those accounts, col- lated by the Hon. Senator, and see how they compared with those, of the previous Administration — that reckless, improvident and exti-avugant Administiation of which they hoard so much. They weie tuld, when the hon. gentlemen opposite came into power, that the public offices had been so crowded with clerks that it was impossible tc get through them. Well, if this was the case, the}' would have room enough in the new building that was, perhaps, for thoii- accommoilation ; and the details of the ex))enditure sliowed that, however reckless and extravagant the late Government might have been, this Au ministration hud far exceeded them in that re.>peot. The total appropriation for Contin- gencies in 1873 was $17endilure and bring it within the lits of the revenue, or to put on le form of taxation which would v^ver the amount of the deficit. In lilese remarks, he (Mr. Plumb) was jlistified by the remarks made by his lion, friend the Premier in this House, as they appeared in the JTansard report in the month of March, 1876. They expressed, donblly, in more clear and Vigorous language than he (Mr. :^lumb) was able to use, the Very point and po.^ition ho was taking' as to protecting the country «ther by taxation or economy 'igainst the recuiriJig deficits which Sad now swelled to so frightful an amount, and threatened, unless prorapt- •fer and vigorously dealt with, to wreck toe financial jiosilion and credit of ' Canadfl. At pu.tio 288 of the Hansard ^f 187H, the hon. tho Premier said: " When the revenue of the country fails to supply the amount of money that might 'be advantageously spent on public works «nd promoting the development of the country, we have simply to avoid tiie expendi- vture that can most easily be avoided in order :jh&t, like prudent men, we can keeg our •expenditure on a par with our income. ' Had this been done? Ho asked for a • reply. The Pienyer further said : •* It is always in the power of the Govern- ment, it honestly disposed, to make a certain ,. reduction when theslateof the public revenue ,' demands it. The true caune of Canada's grosperity, for many years, arose froni the iCt that 'it was a cheaper country to live in ;*than any other on the continent. When we ff follow any commercial or financial policy -. tliat will leave us in a position of having a ;Jdeficit, of making Canada a place chat no /emigrant will care to come tOj that would be '■'■tanding still or retrograding. ' < These two sentences were not directly '•consecutive, but they were in tho courso faaof the same speech and were connocted ^|lta the argument. Ho desired to call E?*the attention of tho House to the first, t?atid he wished to make it emphatic. 'r^^iThe Premier of Canada, himself, gave 4:-Hn it an utterance which might bo the ^groundwork of all the financial criti- Isra of the Opposition. Ho affirmed .Jjat, either in one way or the other, [the revenue of the country should he lade to correspond with and to meet the expenditure of the country. Where would they be if tho policy of iho Finance Minister weie carried out, as it might be carried out, to its logicial conclusion? There was a deficit this year, which happened to be only a trifling 02,000,000. Suppose it were $5,000,000— if the arguments and con- clusions of the Finance Minister were sound, there should be no change of his policy even then. The Finance Minister had said he did not intend to resort to taxation ; he had not shown that he intended to curtail the pubhc expenditure to meet the emergency, and it was too transparent a thing to deceive anybody. It only meant a short sUMpcn^e of expenditure; k did not moan that the item for Militia was permanently reduced $400,000 or $500,000. The necessities of the coun- try were the same, and ho trusted that tho Militia policy was not chani^od since the accession of the i)iesont Minister of Militia to the Cabinet. Although tho utterances of that hon. geul eraan before he entered the Cabinet, du\ not accord with a large expenditure upon the defences of tho country, he (Mr. Plumb) trusted that he (Mr. Jones) had modified his views so far as to be i n accord with the other gentlemen on the Ti-easuiy benches ; and he hoped tliat their views would be in accord with the general views of the country, which he was satisfied was in favour of a jud icious expenditure on the Militia ser- vice. Again, he desired to say that all the argument which he had adduced with respect to the necessity for meet- inff the deficit by vigorous means and measures, either by peremptorily cur- tailing the public expenditure, or by taking such eteps as would bring into the Treasury a sum sufficient to meet the deficit, was entirely justified by what the hon. the Premier had stated in the words just quoted. Notwithstanding all tha loud pro- fessions which they had heard, not- withstanding the assertion that there had been a diminution in the expendi- ture of the country, he (Mr. Plumb) undertook to say that on every item of the controllable expenditure of the country, there had been an increase since the present party came into power, and the members of this House must not mistake what that meant j. 28 tliey must not be misled by speeches from the Government side in respect to that expenditure. He (Mr. Plumb) alleged that the items of departmental expend itui-o were, to a large extent, controllable. During the year, there had been a large diminution in the Item of telegraphing. Since the public attention hud been called to that expen- diture, there had been a violent attempt to reduce it. That showed that these Items were under control, and could he reduced. There had been no special reason hist year why the amount for this pur])ose should ha\ e been less than before, but the eilect of calling tlie attention of the public and the Government to the subject had been that there had been a spasmodic at- tempt, at the eleventh hour, to carry out some of the reforms promised when this Government came into power. It was a sort of death-bed repentance, but itsS character was too trans- parent, and it was only necessary to dissect the items in order to discover the hollow pretence and juggle which "kept the word of promise to the eui-. but brolcc it to the hope." The Finance Minister, in the course of [his picnic speeches, when he distinguished himself by the mnnner in which he treated his opponents, when he discussed public questions in a way which he CMr. Plumb) hoped no iion. gentleman on the 0})position side Avould ever adopt had Slated, as ho (Air. Plumb) had already said, that the reckless Govern- ment which resigned in 1873 had thrown burdens on the country which made him sometimes ask himself if they were not lik(" a reckless,disorderly crew who had broken into the spirit equal to the total indebtedness of the en Dominion upon the Ist July, 18 77. Now, if this meant anything, it meg^ that the Finance Minister was bou'^f by law, when he came into office tJ" meet or provide for $131^00 000° liabilities. According to 'the'tigu,f*f that he had been able to collect,showi£ • the expenditure on capital account ^ on public works originated prior t®°' 1874, in the categoiy which the if" nance Minister referred to as maki'*^ part of the burthen of $131 300 000''*^ that expenditure was $3 1.858 000 TlV*"** P^iianco Minister now said !io must ej?" pend ou the Wellaud and LachiP" Canals, $5,500,000; on the Pacit*^®' Railway, $6,000,000; and for miscc°^" laneous purposes about $5,000,00'^^^ These suras amounted in the assTeirar^^ to $16,500,000, which, added to thf^ ^^'2^..^Ii-eady expended, amounted t**' room and were then endeavouring to scuttle the ship. The hon. gentleman said that there was a burden of liability thrown on the country by his prede- cessors of $131,000,000, which he was compelled to face; in other words, that when the present Govern- ment took an account of their position they found that additional burden throAvn on them in 1873. The hon. gentleman said : u ^*i M^' in aH. a sum total of what I mar call liabilities, capable of being ascerUineJ. •mounting to $131,300,000, in addition uJ ".'■ ir ,^^^' ^^^ ^'JU^e will see the mag. nitude of the task imposed upon us by oh- ^rvmg ihat this sum is as nearly an possible $48,358,000, and this was more tha^** was properly to be charged to work V or expenditures thrown on the finance? of the country by the late Government T for there was no reason why they* should include certain outlays for the a lacific Railway, steel rails, Foster"* payments, Kaministiquia lands, and Fort Frances locks, which did not, in § any sense, belong to the commit- Z ments of the late Government. *' Here was a vast discrepancy— a dis- crepancy of $82,942,000 between the linanco Minister's statements and the actual facts, and yet there had been no repeal of any legislation of the hvte Government, except of the Pa- cific Railway scheme; but the Finance Miiister swelled his list of liabilities ^^'i'l'"^ «30,000,000 for that scheme, and $35,000,000 for renewal of maturing iebt, for which he borrowed more than ;'40,000,000. Here was $65,000,000 to be wiped out at onco,and $17,000,000 more might be found in exaggerated state- ments of the sums to have been expended on the canal scheme, and more improvements. The whole of the actual expenditure made, and to be inade, under the profligate legislation of the lato Government, as the Finance Minister was oontinually pleased to style it, was thus shown to be a sum, the interest on which, at 4| per cent., would amount to about $2,300,000. But there was no need of hurrying much of this outlay. A prudent financier would have delayed it until the country was able to Ite&v it without difficulty. ^l •e was a Bum of $6,000,000, which finance Minister said was needed ,„^mplete the neceseaiy portions of "Upacific Railway, but it was difficult "Snow what the' necessary portions ; rHic Pacific Railway were. There were «iin matters in i espect to the policy he Government in building the ♦iCJitic Railway which, he presumed, ^oilld come up for exhaustive discus- ion when the hon. the Minister of •nblic Works made his usual state- t • but, considering what had been he (Mr. Plumb) very much wubted whether the estimate of the 'Piiianco Minister of $6,000,000 for the Work which the Government might Wsider necessary, was not a very Vaeue and nncertain estimate. Already ''they saw some of the fruits of the 'policy of the Government in regard ^tothat gigantic undertaking. They 'had built a road from the Kaministi- "qtda, which was a very doubttul and 'shtid'v business at best, which he in- • tended to discuss at length at some ' future time. ^ Several Hon. MEMBERS: No; 'don't- .^ , , f Mb. PLUMB said, perhaps hon. ' gentlemen would hear more about that ' than they would like. The course taken had been to change the route from that by Lake Shebandowan, to gtriko Port Savanne, near Lac des Mille Lacs, and running on beyond that point into a wilderness, which was Utterly incapable of any sort of im- provement, for H5 miles, simply, it would seem, for the purpose of i)leasing jome people who wanted, or held a contract. There was nothing there hut beaver, mnskrat and bullti-og. This was not the kind of management •which they should expect from the irentlemen wk o had promised to inili- ato such a wonderful policy for the PatMtic Railway. This item of 16,000,000 miglit be cotisiderod one of the controllable items— a iloaling item, which might bo made largo, or -smaller, according to the policy which was pursued in this work. Ihey had =^^en met by a statement in regard to " ae famous steel rails whicli wore Jnbellishing the land at Fort William, fheio stood the now famous Neobing lotel. Some also were at Nanaimo, rhere they remained as a monument of the improvidence of the Ministry, and others were scattered over the Dominion, from HalU'ax to Red River. It had been thrown in the face of the Opposition, that they had sancticmed the contract for purchasing these rails, because they could not avoid agreeing to it after the thing was done ; but it was done without the previous sanction of Parliament. To-day, those rails could be bought, free on board, for £6. Ss per ton, or about $30, which cost 854 per ton; making a difference of more than 50 per cent. The Opposition would have to make up a new account of the loss on those rails ; they had thought it a frightful thing to discover that there was a loss of $1,500,000, but now they could add $6 a ton to that sum on 50,000 tons, or $300,000. The few that had been laid had been used without the authority of Parlia- ment in order to conceal the Minis- terial blunders which had charaoterized the operation from the beginning to the end, if it was not something worse. In addition to that sum, the hon. the Finance Minister stated he would re- quire altogether $13,500,000 as renewals of Public Debt, lie had spent, according to the Public Accounts, a further sum of $31,655,000; making, altogether, $61,588,000, out of which must be deducted $13,500,000 tor renewals, leaving $-18,000,000 as that Ministerial bugbear which, they were told, would swell the expenditure to $130,000,000, which, was to ruin the country ; and all of which was due to the recklessness of the Government which preceded this model Reform Administration. When he looked at that statement closely, and noticed the exaggeration which pervaded the whole of the figures and arguments so industriously i)Ut before the public by the Finance Minister, and repeated, first by the Minister of Public Works, and afterwards with less* accuracy by the gentlemen wiio followed him and depended on his inspiration for their facts he found it was a Bogey; it was as if a pumplvin had been scooped out and iniulo into a rude likeness of a human head, and placed at night at the corner of a road, with a lighted candle in it, to^ frighten the country bumpkins. When they came to examine the sum still to be expended, it amounted, at 4| per # cent, to $1,425,000 per annum. The hon. the Finance Minister had begged the whole question in his Budget speech when, in order to justify him- self for allowing deticits to increase, he said the revenue had declined to S2-i,000,000, but that it was the lowest point which thoy could touch. Ho (Mr. Plumb) undertook to say that, if the affairs of the country had been properly administered, and proper economy exercised, every one of the improvements proposed by Mr. Tilley could have been carried out, and all the charges upon revenue would still have fallen below the sum of $22,000,000 a year, with ample means provided for laying aside a sinking fund. If 822,000,000 was the lowest figure to which, according to the Finance Minis- ter, the public revenue was likely to fall, why was an improper, reckless, ruin- ous policy adopted by the present Government when the expenditure was considerably below that sum, because it must be remembered that, when they took office in 1873, we were on the rising tide. There had been large surpluses year after year— $3,750,000 in one year,— and these large revenues had enabled the late Administration not only to meet all their requii-ements with a liberal and generous expenditure, but to invest up- wards of $10,000,000 of Hurplus revenue in permanent works which might i)ro- perly have been charged against capi- tal. Moreover, it parted with revenue to the amount of from $1,200,000 to $1,500,000 in abrogating the duties on tea and coffee. The acts of the pre- sent Government in the line followed by the late Government were justifi- able, and it was only when they had departed from the policy laid down by their predecessors they were amenable to public c iticism ; when they followed it mey did well, but when thoy departed from it they showed their utter incapacity to strike out a policy for themselves, and carry on the administration of public affairs according to their own judgment. The hon. the Finance Minister had treated the House to a long disquisition ou the question of taxation, and pointed them to the terrible example afforded by the neighbouring Republic. He (Ml-. Plumb) was one of those who did not think it was desirable on a: occasions and in all discu-ssions tf drag in, relevantly or irrelevantly, th example of the great Eepublic whici lay contiguous to the Dominion. Th, American people knew the-r own busi. ness and understood the managemeii' of their own affairs, and it did not become Canadians to be so free will, their criticisms of the policy adopted year after year deliberately by the peo- pie of the United States, where thei-c was universal sufJrage, where every man had the power to express his opinion on public affairs, and where it had been possible to change a Govern- ment once in two j-ears in its adminis- tration through Congress. It could not be supposed that the Congress of the United States did not represent the people, but that it lepresented Mr. David Wells, the Chicago Tribune, Mr. John Quincy Adams, or any other gentleman who might choose to have a theory of Free-trade, and air it for the public benefit or for the instruction ofthe Canadian Minister of the Interior. The American peoj)le knew how to manage their own affairs, and it became us to let them follow their own course. It was, however, important to consider what effect our relations with the United States had on our trade, and how far the administration of their affairs affected us. There could be no doubt it did affect u.s most seriously. We lived on a frontier extending thou- s.'inds of miles, in peaceful relations with our neighnours. He hoped we might be as parallel lines,not diverging, but never meeting. As regarded the policy of that country, we were told it was overburdened with taxation. Taxa- tion meant ])roperty and business and a people able to pay it, and the United States had adopted that policy, which many hon. members o^)posite were inclined to favour,— the policy of the universal admission of the people themselves to a vote upon public affairs, and of univer- sal suffrage, which enabled the whole people to call their rulers to account. As the United States had adopted that principle and assumed their taxation voluntarily, it did not lie in our mouths to sneer at any policy Ihey adopted. He could tell hon. members, for their consolation, that, whatever might be m th re n< B 31 4" ; ^ it in this Houso in regard to the ^y of that groat country, would _ro very little effect upon the action |the tfnited Stiitew relating to their in matters. They would continue to inage their own att'airs as they __>ught best and to pi'OH])er, although jPBy might have, as all commercial and riipidly-growing countries where there 'r^ immense business activity would h$yQ, a tomporarj' chock and de- pression. We had seen the depres- uipn come, but we had also seen Uie Amefican people rise, revived and refreshed from their misfortune.<, and come up to the mark smiling, and pro- ■oeed with their work, and they had never suifered a permanent check since ho had known anything of their ])olitical history from the policy of watching their own in- terests, protecting their own people, .and having their own markets for themselves. He was surprised at the •Statement of the hon. member for North Norfolk, (Mr. Charlton) that the policy of the United States between 1846 and 1857 was a Free-trade policy. Nothing could bo nioi-e absurd; they never Adopted a Free-trade policy. There were concessions made in respect to the tiiriff. The South was always in favour of light duties. The general ^expenses of the Central (Tovernment were not large. Each State bore its -own burthens, and there was no general eystem by which the Federal Govei-n- ment was permitted to make large ex- penditures. It made no improve- ments except on harbours and •navigation, and it built no roads. It did nothing which belonged to the States, which were jealous of the in- terference of the Central power. In 1846 a tariff was adopted— they might call it what they pleased — a revenue tariff, or incidental protection, or acci- dental protection, or any kind of pro- tection— 100 per cent, on schedule A, 40 per cent, on schedufe B, 30 percent. on and 25 per cent, on D. - Schedules B, C and D, fairly embraced all the articles which •equired protection, in order to itimulate, toster arid develop the indus- trial energies of the United States. ifiut hon. gentlemen opposite would ^ver meet them in fair argument, be- by manufactures. He wondered the gentlemen who repre- sented that city did not take the matter up and say, " Wo have no such wretched examples as the hon. the Minister of Finance gives us to shun." Any business which would lead to the build- ing up of towns, the increase of tho' value of the neighbouring property, the making of home markets, it was the policy, it would appear, of the Govern- ment side utterly to destroy. As far as the argument respecting New York was concerned, it might be an awful example, but it was entirely imperti- nent and irrelevant in reference to- Canada. With regard to the indebted- ness of towns and cities of the United States, did it flow from the fact that there were large manufacturing indus- tries in tho>e places ? The large manu- factories were not centred in the great cities. The iron and coal of Pennysl- vania had not built up large cities near the mines. The manufacturing indus- tries of Massachusetts had not built up large cities where the centres of such industries were found; Lowell and other manufacturing towns there were not large, comparatively speaking. Fall Eiver, which he believed had only eight or ten thousand inhabitants, was full of manufactories. He did not at all under- stand the argument which said that industrial populations collected in large towns, stimulated by a high tariff, ne- cessarily engendered misery and ruin. And now the}- wCre brought face to face with what was said by the hon. the Minister of Finance, and accepted by the gentlemen on his side to be the policy which they pro- posed to adopt as an issue which should bo taken between the two great parties at the coming struggle. The opinions of the Government side upon this subject was a mass of inchoate theory, not wortlvone single grain of good practical common sen.se. Why, in our Public Library there were more than 250 volumes upon political econo- my, upon i^riff, and upon general fiscal affairs, every one of wjiich pretended to give some special information on those subjects, and most of which differed from every other. Now, ho would like to know exactly what was to be the policy of the Government. How was- 33 the country to chooso between fo many ' opinions. Kv(My man tiiouiflit lie luul ' a spociiil f^ift wliicli enulilod liim to ' talk tiboiU fiscal allUirs and to judgo of principles of political economy, lie had been tol l>y his conduct as chairman of the I)e|»ression Committee. His line of policy, the manner in which he would administer the atVairs of Caiuida, 111 which ho would |)n)tect the Can;uJiun people, and would sym))athize with and endeavour 1o foster national indus- try, might bo ird'oi-rod from tlie report. The rojtort of the Committee began with a letter from the Collector of the port of New Y(n'k, conveying informa- tion that the Commission of tho United States had dociilod that the draw- back u|ion the exportation of refined sugar was not a bounty. The hon. gentleman Inul tho evidence of gf.'iit lemon in Canada u])on the subject, blithe refused to receive it, and treated tho people olfering it as though the}- were culprits before him. It was discovered now, that, notwithstanding tho coutident assertions of tho Minister of the Interior, tho American draw- back was in offiect a bounty. Thore were few gentlemen in (he Mouse who knew anything about sugar duties. Ho (Mr. Plumb) would show to the House something of the conduct of the Minister of the Interior with regard to it. The hon. gentleman discarded tho evidence of tho manager of tho sugar-rotining establishment in Montreal, and the evidence of Mr. Bunting, a large im- porter of raw sugar, who, if he gave 84 evidence to sustain the opinions of the Opposition, ^avo it rather ii^ainst his own interest than for it. lie (Mr. Mills) desired rathcj- to iiave the testimony of people who couM ])ossihly know very little about tiie (juestion. This was seen all thi'oii^'h the repoit. When a nian came before him who knew anything- about tiio matter under enquiry he brow- beat him. One of these witnesses said : " You wish me to give answers I do not intend ; I come here to ^'ive such evidence as I can fairly give, whether it may be against your wishes and interest, or in favour of them, and 1 will not be brow-bealen by any man here, iujt give evidence in my own way." The report also said : "If we adopt a polic}- ot protect- ing Canadian industries, we must make \ip our minrinciples, which ho denied, lie could see we should gain very lar<;ely. But the hon. Ministei was feadiil that wo should lose our revenue. Suppose we did, wo should not be (h)ing any more than was pro]»osed to be done by the great leailer of the Libeival party when ho went to Washington to procure a reciprocity treaty" for us. He pro- fessed to give up all our revenue. He was not only willing to do that, but ho would adnut into this country manu- factui'es of all kinds, taking off our tariff at the rate of ono-thiril ft year for three years, until wo canfft upon a basis of Free-trade. At the same time, he proposed that the Go^ ernment on the other side should do the same thing by us; but, inasmudi as our avei-age tar'itf was then 17^ per cent., and the taritf whieh he proposed to deal with was an average of 45 per cent., it would bo clearly seen that^ when we came down to a point of admitting goods practically duty free, the American manufacturers would still be ])rotected ami our manu- facturers would be ruined in competi- tion with them on a one-sided Free- trade iiasis. In addition to that, the ambassador engaged to enlai'ge our canals in four years, He engaged to spend millions of dollars upon the Caughnawaga Canal, a scheme totally unpractical and as wild and visionary as was ever promulgated. Although there would be no egress lor vessels going down the Caughnawaga Canal to New York, he proposed to have fourteen feet of water in the mitre-sills and spend millions of money on that canal. He pledged himself to do all this, and to do it in four years; at the same he would have cut oft" from this country a large part of the revenue by the abrogation of the tariff upon American goods ; and it was very certain that, from the date of that treaty, we should never have any importations from Groat Britain. All British goods would como through the UiiiLod States. Not only would lie have annihilated our revenue by this polic}', but ho would have pledged tlio country to a large expenditure on the top of the so-called ruinous policy, wmch the hon. the Finance Minister 36 had doHcribcd as the policy of his pi-o- decesHors, and havo plcdi^ed thu country to what mis^ht havo been in-etriovablo ruin. This party of reform, of economy and liberal ideas, actually, in addition to the bur- don which IkmI itoen ])ut upon the country by tlio profligate (Jovcrnment which had ])recodod lids model politi- cal i)arty, proposed, by the draft treaty, to strike down at one blow the greater part of our revenue, and to commit the country- t(. that enormous e.\'))endi- ture; and, after the plenipotentiary of Canada, Mr. Brown, had made con- cession after coiicess'on to the Ameri- can Government, coo'ly said in effect, " \Vc have got your best offer ; we will preserve it as a basis for future ncgocia- tions. They had been told by the hnn. the Finance Minister tiiat he bad no policy to propose. He asserted that he had reduced economy to its lowest ti"ure; he had taken it to its utmost consequence ; he could yo no farther ill that direction, lie had economised in that alarming manner which had increased the jniblic expenditure in all directions, and the efforts at economy could go no iurther. But, at the same time, iie said he had no policy to pro- pose. He did not even offer the pro- verbial stone when asked for broad, but he said a great issue was about to bo presented to the people. He said, in effect, that ho should go to the people without policy; he should go to the people declaring the Government had no more power to alleviate their dis- tress, or ability to relieve their wants, than flies on the wheel. That was onoof the statements with which ho pro])Osed to go to the people. He proposed to go to them upon the issue that the expen- diture of the country had been in- creased in every Department since the present Administration came into power, with the explanation that the lateAdministration had almost wrecked the ship of state. Well, he (Mr. Plumb) proposed to meet him on that issue. The Finance Minister had no policy to offer except a policy of inactivity, of cowardly supinenoss. He dared not meet the questions of the day, but met the people who were suffering, begging, imploring, with the contemptuous assurance that the Government, as such, could do no more for them than flies on the wheel. Why, there should have t)een some luoviunent at leasi, in the direction of relief; some attempt to deal witli the crisis, at any rate ; to have a commisNion upon the atfairs .)f the country, to have ex.imined in a lii'0]ier s])irit into the depression whicii liad overtaken our raanufactorios, a commission which should not take the statcMuonts of people who did not live in the country in preference to those who did. He (Mr. Plumb) know the (iovornment had a policy which was well understood in the coun- try, a policy of vituperation and slander, of hounding down every public man who dared to hold o|>inion8 o])])osed to theirs It was a policy of endeavouring to drag down the right lion, member for Kingston, of sti-iking him below the belt, of bringing up every possible charge against him in order, if possible, to crush him, because they knew tliat be was the leader of the groat jiarty of which ho (Mr. 1^1 urn b) was a very humble member ; because they hoped theieb}' to damage, to some extent, that party. But ho (Mr. Plumb) couM tell them that that party did tK)t depend for its strength entii'oly upon any leader. There were great ])rinciples which that party held and intended to carry out, which it intended to present to the people, and which would be appreciated at the great arbitrament of the approaching elections. The present Administration had a ))olicy which they pursued with the relentless ferocity and untiring scent of the sleuth-hound. Ho (Mr. Plumb) know that Committees had boon ibrmed for the purpose of fas- toning unjust charges upon the I'ight hon. gentlemen who led his party, every member of which had a right to rise and defend him against those charges, because, he being their leader, they were, in a certain sense, respon- sible tor his every act, and, if any point of dishonour could be fixstened on him in his dealings in public life, it must necessarily revert upon his foUowera The Opposition throw down the gauntlet and challenged the gentlemen on the other side to continue the policy in which they had distinguished them- selves, and had placed themselves on a bad eminence. The right hon. mem- ber for Kingston never struck below 36 tho bolt, iiover took base advantage of his otu'inios, never respondeil in kind to tlio toiil atlacks made upon him ; ho Rconu'd to descend to .such a level. Ah a stuteHtnnn, head and Hhoidder.s above an}' of his assailants, he could afford to look down on tiiem with the Kcorn which wa,s felt by all the people of this conntiy who had measure! them at their true value. Tho principleH of tiie great Liberal- Conseivative parly were the undyini,' principleH held and sup])oited by the crowd. Tho hon. raomber and his friends wero careful not to swell tho crowd, but judiciously ke])t aloof. It was a splendid wind-u]) lo a sei'ies of trium])hs such a.s hac. never been known in the political hisfo-y of (Canada. Ilal- diniand, whi<-li had returned by accla- mation tho hon. member who now rejirc-^enteil it (Mr. TliompHon), turned out from twelve I" tifteeii thousand people to meet tbom. In the stroni^- holds of tlie enemy, these raeeting.s were, of course, aitondeil b} many gentleman whom the supporters of ! ])eoplo who held opj'osite views to theii the ftovernmcjiit had pursued with j own. These peopl:* wei-o asked to such untiring hate and uni'clenting , make any objections they thought ferocity. He was speaking gen- jiroper. They wished to discuss the orally iti respect to the right hon. i (juestions with t'.io people in tho gentleman, and he iioped be was not tail- and impartial manner which bad transgressing the rules ot' Pai'liameiit. 1 always characterized the Opposi- Ho ccild tell tbe j)re.sent Administra- | tion. tion that they wei'c greatly mislai^eii i ncss if they sui)p()sed that, b}' hounding down and ])ei'.secuting one single man in Canada, they could advance theii- own interests. The reaction which he (Mr. Plumb) had suid had taken jilace in Canada was constantly increasing. It had begun like the eddies which preceded great floods; they weie tbe and bad exprest-ed their reaui- lo ivnsw r ;iiiy intei-pellations. They did not intend to brow-beat those who" o]>posed them, but wei'o prepared to ai'guo with thorn dispassionately, so that tiiey could not go home and U8q with tlieii- nei<;'hbours the arguments that we bad e.\])loded. He (Mr. Plumb) interru|)ted but once, and that was, J ^.^ >.. , .,.._, „^ , wlii'ii lie bad cliallengod anyone to say precursors of the mighty deluge which j what I'eforms had been instituted by would sweep away the insecure foun- dation ujwn which those gentlemen had placed themselves. He had seen as much of the Canadian people (.hiring the past Slimmer and autumn as an;v hon. gentleman oj)posite, and he had seen evidence of what he had stated. He had stood face to face with the people of Canada. The Oppc-sition, in their great meetings, did not confine themselves to their own stroiiirholds ; tbe so-called Reform i^arty, one of the voters asked what ainrnt the election law, and he (Mr. Plumb) answered that almost the only leforms in connec- tion with the election law were the bal- lot, of which the Premier said he was not in favour, and the provision whi'di ])ievented tho prosecution of an election protest going on during the Session of Parliament. That was a rolbrm, as he had stated, they went where the peojile were I in a very wrong dii'cction. His hon. against them — the exact I'everse of j friend beside him would corroborate which policy was adopted by the gen- the statement that that was the only tlomen opposite. The members of the interpellation made during the meet- Opposition had every opportunity of j ing. Ho had heard of otherro.ictions — seeing .something of the state ot' public I of one in the county of Lumbton. ■'''"'■ ' ' ' '' " ■' " 'He thought that county, . represent- ed here by the Premier, was pretty well known as a model reform district; that it had always returned a Eeforraer ; but now, he was creilibly assured, that, in that county, in the centre of every- thing that wasEeform, if he might not fooling in tho strongholds of the (iov- ornment. They had been at Xew- market, at Barrie, at Millorook, at St. Thomas, at Ailsa Craig, at A .herst- burg, in Glengarry, in Dundas, in Haldimand, in East York, at Hamilton. Mr. wood : against you there. Mr. PLUMB said the people cer- tainly were against them, but it was a pressure against them of an admii'ing The people were designate it by another word, that point from which the standard was elevated in 1874, or where, at le.'iKt, there was a pretence of elevating it; 87 at this moment, thoro wore twelve hundred Conservatives onj'oll'd in iho Liboral-Consorviitivo As>iiiciatioii. Eg understood tliat, not very Ion;,' ago, thoro had boon a meetin^r ,^- the County Council ; that, at the same l,ime, there was a mooting to organi/.i- the LiboralConsorvativo Association ; and he understood, the Warden of the county who, by some strange aceident —there being no reaction— was a Coii- iiervativo— and the niajoiity of the reeves of the lownshij)s, although there was no reaction, being, by sonic strange ooincidonco Conservatives; the County Council was aition rose to address the House. Ho lomemberod when he remonstrated, a few years ago, not with violence, but with calmness, nj)on the insane idea of building a tolegi'aph ('•r the Pacilic Haihvay before the line of the road was (lecidoil upon. Ho knew it was u ridiculous waste of money, that it could be of no possible -ervice, that it was for the use of tho road itself that the telegraph line was principallj' designed. Ho did not see that the contractois for building the tclcgraj)!! line were to be entrusted by tho (rovernment with the ariluoua and impoi-tant duty of mapping out the track of the I'aciric liaihvay. The line of telegraph trom Fort William to Kdmonton was completed. They knew that it was not on the lino of the road ; yoi, when he bad attempted to direct tho attention of the House to it, the hon. members of the other side, tho claqueurs Mr SPEAKIOR declared the expres- sion out of order. Mr. plumb said there had been a decidoil change. Those gentlemen had seen that the small minority which they had derided was (juito competent to con'uct the business of Her Majesty's Opposition in such a way that, if it did not command their respect, at least, it commanded their deference, and they were i-athor (juiet just now when the Opposition rose to make a statement. Ho was one of those who were singled out as the special mark of the small witlings on tbo other side, gentlemen who used tbeir heels and hands as a means of argument, and who, to the best of his recollection, had never given evidence to the House that they ever used their heads in any direction. Now, the}- were told there was no policy with which the other siUo intended to go to the country. They wore told tho Atiministration could do nothing towards meeting the demands of the peojde of Canada; that there was no issue. Well, thoro was an issue so broad that nothing could bridge it over. There must bo stand on one side or the other ; there should be no 38 compromise ; they had nailed their colours to the mast, and intended to keep them floutin^r there xuitil tliey carried their forces to victory. The Government had no policy but vitupe- ration and a fiscal policy which had accumulated deficits upon a prostrate country; they saw the people starving, but they di-evv their salaries and paid no heed to their appeals; they said fio Government could do anything to aid the suffering industries of the coun- try. "Well, the Opposition would meet them upon that issue. The Government offei'ed nothing to the great outcry raised all over the country for aid to alleviate the great depression. Their whole course had been to aggravate, as far as his observation extended, that depression. They had not even made a movement in a contrary direc- tion. There was nothing left to be hoped for from the present Govern- ment ; and he believed the public would rise in their might and power, and place at the head" of affairs, the very first opportunity, those who would endeavour, at least, to enquii-o into and meet in some manner, if they could not fully alleviate, the great dis- tress and suffering which ])revailed. He knew it could be said that the dis- tress and suffering were too deeply rooted to pass away in a day. But the policy which ought to be adopted was not a palliative policy ; it should be a permanent one. The Opposition did not believe in any temporary ex podient by which there might be a slight increase in the tariff to meet the exigencies of the moment ; they did not believe in any temporary palliative, but a deeper and larger diagnosis than had ever been made by hon. gentleman on the other side. It was not foj" the Opposition to prescribe, until called upon by the patient, although the patient was ill, and nigh unto death. They could criticise the practice of the professional gentle- men who stood ai'ound the bed-side, but these gentlemen had no right to ask them to measure out the dose until they called them in to feel the patient's pulse and note the symptoms. But, when called in, they would be prepared, to prescribe. The hon. member for South Greuville (Dr. Brouse) knew well it was contrary to all pro- fessional etiquette to act until the attending practitioner was dismissed. He (Mr. Plumb) trusted the patient would soon see it was for his own intei-est, if he expected to live, to dis- miss the quacks in attendance, and call in. those who could make an in- telligent diagnosis and prescribe pro- perly. He thanked the House for its attention, and would not tax its patience further than to express his obligations to it; and he trusted that the dis- cussions on the questions he had treated would continue until they were bi'ought before the country ; when, he doubted not, the result would be in favour of the Opposition side of the House. M.icl^ean, Roger & Co., Parliamentary and Departmental Printers, Ottawa, Ont.