CRISTA.!) A.. » J ' ■ ' ^^ r riraeyr . ' g iCTp aooo e BUDGET SPEECH DILITIKED BT HON. GEORGE E.^%OSTER, D.C.L., M.R MINISTER OF FTN'ik.irOBJ« — IK— THE HOUSE OF COMMONS, TUESDAY, 5™ MARCH, 1889. 1 V >l OTTAWA: "^ PUNTID rot TBM QuUN'B FRINTIB AMD CONTBOLLIB OV STATIOKUT. A. SENEGAL, Saperintendent ot Frintinfr. 1889. i CANA.DA.. BUDGET SPEECH DELIVERED BT HON. Gl^^ORGE E. FOSTER, D.C.L, M.P. .AIIMSTKK OK FIXAXCK, —IN — THE HOUSE OF COMMONS, TUESDAY, 5TK MARCH, 1889. OTTAWA: Printid for the Quein's Printer and Controller of SrAxiONiRT. A. SENEGAL, SaperiDtendent of Printing. 1889. CANADA. BUDGET SPEECH I'ELIVEniD BT HON. CJEORGE E. FOS'^^ER, D.C.L, M.P., MINISTER OF FINANCE: —IN — THE HOUSE OF COMMONS, Tuesday 5th March, 18S9. Mr. FOSTER. Mr. Speaker, in rieing to make my first finanoial statement before this Hoose, it would not be otherwiee than nataral that I shoald experience feelings of trepidation, and even of timidity. When I look at the line of men, distingaished Canadians, who, since Confederation, have had entrasted to them the keeping of the purse-strings of tbia country, men in every case of acknowledged ability and of an experience far greater than my own ; when I have regard, as well, to the responsible nature of the duties which have been devolved upon me, and the fact that every action of the present leaves its impress upon the future, I would bo the reverse of serious or thoughtful if I did not throw myself to-day upon the kindness of the Hoase, and ask those who are older and more experienced than myself for their generous indulgence, and ask also for the equally generous sympathy of those who are, in point of years, more nearly my contemporaries and co-laborers in the work of this House. The wise and vigorous policy of the preceding yearn, a kindly providence which, during the past year, has not forgotten this, one of her most favored countries, and a grow- ing spirit of cotifidonce in commercial operations, have contributoJ to a fullness of the Treasury, and to a peace ard prosperity, general throughout the country, which serve to make easier the otherwise formidable task which has fallen to my lot Canada to-doy, standing in this her majority year, and looking back upon the record of her past, has every roafon, I think, tOKurvoy that record with pride, and turning towards the futuro, although it may bcvo it;* difficulties which are to be surmounted, I believe that from this same vantage ground she has every right to step forward into that future, with full asHurance that in it she will find peace, plenty, prosperity 4 and conlinuod grcatncRO. Standing upon this point of vantage ground, this country ankfl no ooncoalinont of the real faotH of her record, tthe askA no flattery, and while aho dooH not wi<>h t) have ooncoalod from her tho diffloulties incident to progrofls in all climes and in all a/ep, I think she id willing to stand by tho record of facts, and whatever merits or demerits my ntatomont may have, I trust, that so far ns it goes, it will have tho morit of candour, frankness and plainness of statement. With these few preliminary remarks, 1 bog tho indulgence of the House while I proceed to the common-pluco and not alway.s intcreiting htiitomont with respect to the past tho pre- sent and tho Hucceodingyoar. TUB FISCAL Y8AB 1887-88. ■; For the year 1887-88 tho statcraont of my predecessor was that Customs would yield 822,000,000; Excise, So", 450,000 ; Miscollanoous, $7,550,000, a toUtl of •35,000,000. Tho actual receipts have been as follows :— Customs, 822,103,92'); Excise, 8b',07I,lS6 ; Miscellaneous, 87,731,050, or a totil of $35,903,46 J ; or Icps than the estimate by 8'J1,!^36. This difforenno in tho actual roooipts, as compared with tho estimated rocoijit-i, urisos from a fallinjj off in the Excise of $378,513, whorea-* Custom shows an increaao of $105,926, and Miscellaneous, an increase of $181,050. The fol- lowing are tho princip'il items of increase, compared with 1886- '!7 : — ., Bra:8, tbd roanufACturea of $ 7,1£3 19 Grnin of'ull kindd '2',8ji 31 ' Drnpfj, Dyes, Clipmicald and Medicines 37,503 25 ; ■ Katlhbwrp ami CLina 7,358 57 * . •Fruit, aid Nuta, dried 2J,134 40 ' Iron a-id maanlictures of, anl Steel, maQufactura of 463,758 27 : '! Oils, Uoal aid Kerogene, and products of 7,942 10 ^ Oils, all other - .... , 19,9'2 30 Papier, and mannracturr'S of.. .....>... 60,6:6 38 ' Pickltf9, Saucea and UaperB of all kiads 20,863 21 ... ProvlaiuQS (Butter, (^h!eje, Lard anl Meats) 67,184 14 Spirita and Winca 237,384 35 Sugarof all kinds 2J6,8:'5 65 Molaasog 31,22! 13 8i:j;ar Candy aad (^oufeclionery. 4,500 23 Wood, and maaufnctures of 2i,617 48 On tho other hand, tho f.jliowing articles show docroasod rovonaos, viz.: — Becks, Periodical;), &c , and all othei printed matter $ 4,8<>t 89 Arrowroot, Biacuit, liice, AUcaroni, Bran, kc 48,836 68 Fluur and Meal, uf all kinda. 5(,121 76 CairiKgca 40,415 67 Ooaland Ouke (lutiablr) 420,546 89 (Jcllara, OufTj, and Shirt Fronts 19,796 39 Cotton, manufactures cf „„ 197,860 c2 Fancy Gooda 73,277 7? Flax, Hemp, Jute, and manufactures of , 33.847 49 Fruits, green 37,910 92 Olasa, and manufactures of , 9,603 36 '< Gold, Silver, and manufactures of. 16,220 33 Quttapercha, India Rubber, and mannfactarea of ,, 8,419 18 Jewellery 13,ir,2 22 Leather, alA maauritcturc'i of 35,37( 84 Oilc'.olh « 9,947 10 I? Silk, aod maaufaoiurei uf ...mm.. 3'J,6i3 20 ^ Tin, do lid ...» « li,6T5 9J Tobrtcco, do do « ^ « 71,717 79 • "' Wool, do do - „ 374 9.4 00 All other duU\ble articles 49,«jl7 06 Id the ExcIho, as I have htatocJ, there was a fallini^ otf of $378,513 in duly collected. The Blatomont shows Ihtit In l8''',549 pallon», Rivint; a dillorchco in rovonuo of Jb38,G97.04— a very cuiisidorablo la ling elf, as iho Douso will sop, in Uio rcvonuo from 8|iiritH. Malt liquors, however, hhow a decided increase, the quantity being 48,1; 10,467 Iba. in 18S7-S8, as coir^arcd with 42,630,410 lbs. in 18F6-87, the incrcasa being b',0 10,027 lb-«.,nnd the incroas^in revenue being 8t>0,lii2. 19. In ciguiH there is an incrou.'e of 1,811,735 in numbor, an 1 an incrcaso in revenue of 8.3,373tJ8. In tob: coo of all kinds, inclulin;:^ enutf, there is an iriC'rca''o of 4'il,439 lbs., and an increastd duty of $7'3,b(]S.30. The otpeiidituro as cHtimutcd for by my proJcooHHor in oflico, Wifi 837,000,000. The actual oxpondiiuro h&f bjon 8!«,718,494 a dilforenco of 8^^1,500 on iho right feide, 80 far as the accounts are c >ncorned. Sir Chaiica Tujipor estimated thcra would be a doGcicncy of $1,000,000 as between the rof.oipts and expondituro for the yeai' 1^87. His ostimato happily was over the mark, and the total dellc it amounts to only $310,031. It is, howover, to bo romomborod by the House, and it will bo remembered as well by the country, that ihhoutrh I speak of a Jificit in 1887-88 of $S10,031, wo must also keep in mind that there has been a set-otf n^^ainst the public debt cf $1,939,077 as sinking fund and investment for interest on sinking fund, BO that there is an offjot against the c'ebt of $1,939,077 and a deficit of $810,031. That is to say, if wo had not offset the debt by the amount named, we would not have had a deficit on the oonEolidatcd fund account, but a surplus of $1,1 29,0 tG. The items of capital expenditure in the year 1887-S8 are as follows : — Railways and Oanals $1,708,704 Public Works 963,778 .^ Dominion Lands 13S,018 Xorth-West Rebellion - 639,930 Total $»,437,460 To this is to be added the expenditure for railway subsidies under the Acts $1,207,011, and a redemption of debt, 83,185,031^, making a total capital exiciidituio of $8,650,169. Bat as the redemption of debt counts on both sides it does not atfoct the not debt, and the statement with reference to the net debt is as follows: — r On Ist Jaly, 1887, it amounted to f 327,313,911 '' On Ist July, 1888, it amountel to... 23J,631,353 Increase for the year 17,217,447 Thai has been ozplainod by iho diiTorent itetmi of oapiul ezpocditurc whioh I have mad, and thin lIoDfio ift now in poABOSHion of tbo facts as to Ibo items upon wbioh tills capital uxponditure was made. TIIK riSCAL YKAB 1888-89. I ' For tbo year 1888-8I', iho ostimate^i made by my prcdocossor woro as follows: — ThiU Ouitomg would jltli ~ $12,500 000 Kxcl« would yieM ~ , 8,650,000 Migcellaneoui « 7,750,0C0 ToUl - |3'!,000,000 Up to (ho 28lh of Ftbruiiiy, 1889, iho recoiptfl for the eight months aro n« follows:— OuBtoms ...^ - 115,303,700 Rxcisp 4 619,841 MigceUaneouB.. 4,693,325 Tolalfor eight moi.thi $24,616,766 If WO o^limatc f>r tho remaining four months in this year a revenue equal to the rovenuo of tho four trimilar months of 18S7-88, there would be added to the above receipts for tho eight monthH, in Oustoms » - I 8,130 27 Kxcise - 3,448,303 HiicelUneoua 3,305,955 ToUl $13,984,528 Which will make tho amended estimate as follows : — OuBtomi $ 23,533,971 Excise ~ „ 7,068,143 Misccllaneoua. , ,....~. ~ 7,999, ISO Total $ 38,601,294 To bo within the mark I will call the amended estimate upon the above basis $38,500,000, as contrasted with tho $36,900,000 estimated for last year. Then with reference to the ezpecditure : For tho full year 1887*88, the expenditure was $36,718,494. From the Ist July to 28th February of the present year the expenditure was $21,972,826. If we add to the expenditure for those eight months past, a similar amount to that expended in tho last four months of the pa^t year, whioh I think will be BuflScient, there is to be added to that, $14,307,565, making a total upon that basis of expenditure of $3t),370,391. There will be some further Supplcmontary Estimates to make up for Governor General's warrants and for eomo other expenses of that year, and I think it is eafe to say that it will be within the mark that the ezpendituro for the present year will amount to 836,600,000 as against ostimatod revenue of $3:^,600,000, leaving for the current year, I th'nk, without any probability of doubt, a surplus of $1,900,000. That, Mr. Speaker, I think is a very satiiifactory btateraent to be mado to the EoaBe and the ooantry. It is a condition of things which has not arisen from any inoreaRod rate of taxation, bat nnder the very same tariff aH the preceding year's receipts were based upon. Consequently, it shows an increased ability to consurao, and therefore an increase in the prosperity of the ooantry. Th« capital expenditure for 1888-89 is estimated as follows : — OAPIFAIi EXPENDITQRE, 1889-1889. Railways and Oanala ~ Public Wrrks Dotnlnina Litnda... North-WeHt RebcllioD Railwuy Subsidips Redemption of Debt.. „ ToUl Capital Expendittirc, 188P-89 Paid to 31it Jannary, 1889. $ 3,414 5S7 on 2\9,19:i 77 6l,3tl 4! 1,205 11 e\iM^ or> '>,lii,0i3 21 Gttimatcd frcm Pcb. Ut to 30th June. 358,310 00 lfi'1,416 33 ?8,ti87 69 f5, in militia of 829,7(^0, in railways and canals (income) of 87.^,643, and in public works of 81,007,894, though I tuppoi-o, when tho supplementary estimates are brought down, the last figure will bo somewhat reduced. In lighthouse and coast service there is a reduction of 8Jil,500. That, however, does not mean that there will be less efficiency in that service, but ifc is owing to tho fact that for a number of years past, a larger vote has been taken for this service than has over been expended, and the experience of a number of years has shown that it is posi>ible, with duo regard for events that may occur, though at present unforeseen, to make the vote that much smaller without impairing the cllijioncy of the service. In subsidies to Province, there is a decrease of 838,454, based upon changes which have taken pluco in the arrangement, which, I may say, is now practically concluded, between tho Dominion and the old Provinces of Canada, with reference to tho settlement of their accounts. There is a decrease in the Mounted Police vote of 82K,783, and in miscella- neous of $162,621. In all, the decrease from the estimate of last year amounts to 81,328,077, which will, no doubt, be some what pulled down, as I have stated, by the supplementary estimates which have yet to appean THE DEBT OP CANADA. Now, after having given as best I could, without occupying too much of the time of the House, an explanation of the expenditure of the three years of which I have treated, 1 wish to say a word or two with reference to the condition of tho debt of Canada as it stands at present. In 1867, the net debt of Canada was 87>\728,64] ; in 1874, when we had completed the Union of the Provinces, which now form Confeder- ation, it was 8108,324,965. At present, it is 8234,531,i'5S. Tho burden of carrying a debt is measured by the amount required to pay the interest. Measured in that way, we find that in 1868, it required a per capita payment of 81.29 to meet the interobt; in 1874, it required a ;)er capj7a payment of 81.34; and ia 1888, a per capita pay- ment of 81.79. The increase in 1888, over 1868, was, therefore, 50 cents per head, and over 1874, 45 cents per head. It is also important to note tho decrease ia tho rate of interest. In 186-<, the rate of not interest averaged 84.51 ; in U74, it averaged 13.61 ; and in 1888, the average net rate of interest has fallen to $3.12. It must also be remembered, in making a fair estimate of this debt, that there was af-sumed, as debts of the Provinces, not created fur federal purposes, a turn of 8109,430,148.6S> 10 which, although it added that mnoh to the indebtedness of the Federal power, relieved the different Provinces by exactly the same amoant, and placed the management of that large indebtedness in the hands of the Federal Government, where it is managed at a ^mailer rate of interest and with less harden to the country in general than if it had boon loft in the hands of the Provinces. Deducting this debt assumed for the Provinces of 8100,430,148.69 from the not dtbt, in 1889, of 8234,531,358, wo have a federal nit debt of 8125,101,209.31 in excess of the assumed debts, and which is offset by this consideration, that during that period named there has boon a total capital expenditure of 8179,709,974. Thus, our capital expenditure, which has been almost entirely for public works nccoasary for this country, has oxccodod tho increase of the debt for strictly federal purposes by 354,603,704.69 I may say that tho excess in the net interest per head necessary to boar tho burdenof thisdobt, in l8S8,over 1868, is 60 cents per capita ; ovrr 1874, Vt cents per capita ; over 1879, 20 conts per capita; ard over 1880, only 15 cents per capita. In 18f?0, my hon. friond who preceded me (Sir ChailoH Tuppci), and who today I am glad to seo on the floor of this IIouso, was f'ti iiirgling with tho problem of railway connection between tho Atlantic and Pacifia soabou-ds of this country — a problem which had engaged tho host attention of tho boft minds of this country since Confederation, and which bore so intimately on the future prosperity and progress of Canada, that it assumed the status of the forcw most question in our politics, iho solving of which would reflect credit on tho rainde engaged in it and would cause them to bo held in grateful remembrance by this country. In 18o0, wo had not made the contract with the Canadian Pacific Railway, and we had not commenced to incur that vast expenditure which we afterwards incurred in tho subsidy we gave for finishing the remaining part of tho Pacific trans- continent, railway, which had not been undertaken as a Government construction. Taking the net interest per head in 1880 and comparing it with that of 1888, when tho Pacific Railway had been finii'hed and the large expenditure we had incurred to complete it was added to our public debt, as it is, we find that the additional interest burden which the country was made to feel to carry that indebtedness was but 15 cents per head of its population. THE DEBTS OP CAN.\DA AND THE UNITED STATES. It is a common error to take the debt of Canada and compare it with tho federal debt of the United States, in order to make a point as against Canada and in favor of the United States, or, to speak more truly, to make a point against the Government which is now in power on account of its alleged extrava- gance in increasing tho public debt. I do not know that a more nnfair com- parison could bo instituted than a comparison between the Federal debt of tho United States and tho federal debt of tho Dominion of Canada. Broadly stated, the com- parer says: Look at the Unitod States ; to-day it has a debt of 820.42 per head of its population. Look at tho Dominion of Canada ; to-day it has a debt of 847.16 per head of its pcpulatinn; and tho comparison always tends, as these financial comparisons must, to prejudice thomindsof those who do not see through it, in favor of tho country 11 which, seamingly, has a lighter debt and against the country which, seemingly, haa a heavier debt. Now, if by a simple statement to-day I oan set, to a certain extent, at rest and dispose of this comparison of two things so dissimilar, I shall foel that I have performed a doty, not only to the party in power, but to this House and to the country as well. Things which are dissimilar cannot be fairly coraparod. The con- stitution of the United States and the confititution of Canada are very different, so far as financial matters are concerned which load to public debts and to public ospen- diturcs. The United States, in the first place, assumes no debts of its different States. Tho Dominion of Canada has assumed the debts of its Provinces to the amount of $109,430,148.69. Tho United States pays no subsidies to its different States. Tho Dominion of Canada has paid in subsidies to its different Provinces, since ConfoJora- tion, $73,31*3,029.95. Tho United States, assuming no debts of its States, pays no interest upon the debt which it does not assume. The Dominion of Canada has paid in interest on iho dubts assumed for tho different Provinces, 8''8, 344,2^8.20 from Confederation up to the present time. Thon, as regards tho Administration of Justice, I think I am right in saying that, in tho United States of America, they pay the nine Judges of tho United States Supremo Court, they pay Circuit Judges, cino in number, and they pay District Judges thirty in number. Outside of that, they incur no expenditure for tho Administration of Justice. In tho Dominion of Canada, wo all know the state of things in relation to the payment for tho Administration of Justice, and from Confederation up to tho present time there has been paid for the Administration of Justice, $10,821,542.90. If Canada had based her system on the same foundation as that of tho United States in reference to the Administration of Justice, wo would certainly not have had to pay moro than one-half of that amount. Then, in regard to Immigration and Quarantine, we find that we have paid $5,571,631.81 since Confederation. The United States Government pays little or nothing for Immigration and (Quarantine. For Militia and Defence, this Government has paid $21,851,635.60 since Confederation. In the United States, they keep up West Point Academy, and a small standing army, but the Militia throughout that vast country is kept up at the expense of the different States, so that, if Canada had been in the same position as to the^e matters as the United States, it would have saved at least one-half of that sum. For Penitentiaries wo have expended since Con- federation, $5,611,696.54. The Penitentiaries in the United States are supported, not at the charge of the Federal power, but at tho chargo of the different States. Then, we have expended for tho salaries of Governors, 82,250,043.01, In the country to the south of us the salaries of tho Governors are paid by the States and not by the Federal power. If Canada had sot out on the samo basis as the United States, she would have saved tho assumed debts of the Provinces, the subsidies paid to the Provinces, tho interest paid on tho debt assumed from the Provinces, the amount paid out for Penitentiaries, the amount paid for tho salaries of Governors, at least half the amount f^ho has paid for Militia and Defence, at least half tho amount paid for the Administration of Justice, and tho whole amount paid for Immifijration and Quarantine, amounting in all to no less a sum than 8309,800,987.10. The net debt of Canada to-day is 1231,531,353 ; bo that, if Canada had sol out from the fiiHl on the Bamc ba'^is as the United States, and hud made no paymonti* that the KeJoral Govern- ment in ihat country docs not make, she nut only \yould have had no debt at present, but would have had A surplus of 875,329,629.40. Some hou. MEMBERS. Oh. Mr. FOSTEK. lion, gontiomon may troitt this as agoodj'.ke, but from their point of vitw it in no joke, for, as soon as this gets before the people arid into the mindd of the people, a stock argument of the hon. gentlemen opposite will be forever taken from thorn, which is their comparinon oq an unfair baf>ifl of the debt of the United Statets with oarn, and ulwjiy.-i to the adrnntige uf the Uniicd States and to our disad- Tant.igo. But, coming to tho question of debt, Canada in not the country most burdmed in the world in that rospcct. Tho whole of the Provinces of Australasia •how a debt per head of $218.65; New South Wales, $199.20 ; Victoria, $156.82. Then Franco has a debt of $179.66 per head, and Belgium of $62.15. So that this conctry, as far as its indobtodneiss is concerned, ha^, in the first place, a debt which I believe is not disproportionate to itH abili'.y to pay ; and in tho second place, it is not in a diwadvantageous pobi'.ion when compared with other progressive countries in tho world. Sometimes wo talk of national debt aq if it meant luin and disaster. 1 have before me a table showing tho net and funded debt of tho cities of New York, Brooklyn, Boston, Baltimon^ and Philadelphia. Those five cities combined have a debt of 8243,252,729, or $57. 4S per head. And yet those aro most prosperous cities. TAXATION AND ITS INCIDENCE. Leaving tho question of the debt for a moment, I como now to the question of taxation and its incidence upon the country. Before taking up that question, however, with the kind indulgence of the House, let me ask their attention to a fact which is patent to all hon, members, but which I repeat in order that •we may bear it in mind as this discussion progrfBses; namely, that it is unfair to take the total revenue of the country as an index ot the burden of taxation on the people. The total revenue is made ap ot the Customs tax and the Excise tax, and what we may call the gross earnings, such as the proceeds ot our Pofct Office, the proceeds of our Railways, the proceeds of our Public Works, the tolls and fares, and fees, that are paid upon them for services which they render to the country. There are also public funds which are invested in different ways, which earn and yield so much to tho revenue of the country, so that, in every case, we have first to take away tho earnings from the total revenue in O'dor to get at what is really to be denominated the taxation of the country —that is '.he Customs and Excise duties. I hold in my hands a tabulated statement as follows, showing : — 13 5 -si 5 o o > a.r*KXXxaoxaoxc^aOtf-aDaoxc«c*r*aor* 00 00 00 00 to 00 a _o "■5 93 "a a o d .2 I p. 8 as e 2 t-'*— 3»N — -"r-'coo-"r»oo«»iO'S»t- O 9 b o u a -0 a 3 O ;1 M >» toau cQ lO lo -• oq_-f 05 a-. « "O — o «o_ -" "O •* o "»^ ^aO(.^ — *^c«co-«a5^r-r*-f^ccxa3r4aor* 2 0»'3>rt««i--r«-cO — ^■aoo^»5''. 35»>"'»*0»^ M» M . -^ _ ,-. « '• o r; ^ C'^ ------ CD -^ r^T ^ »ft OO P — ^ ... ri' cT oj" « m" o" "T oj ro — oc c" • r x" -r o' oT jT ci 00 ■^ § — ^ J- fr A> OS tt 'O -f IC 3. ?0 r* no '^ O T *0 O r— t^'jj e^e- "* lo s_io o» >^<.'-. c^rrj oo ^4 -r "l" » « o_ a Q o W a o«0'^•c>:*lOl0^m-•'»■ri^-.3»m«*ffJlO I «0 B 2 CD a O S " -0 bo c H aot-^ooo 4i05— 'rooowK^^a. t^x-j. c^oo:*^ ^ ic ^ erj Qu_i^ ^ m n" 00 lO 1-- ji o V 'f'^ o o J* ^-n n — « -2 OJWO'X'Cot-t-n — o»-«r-\c- .-•-«>a>l0^5^-o»>«•oooM^a M t- to 00 to CM ^™ W* W* r— I*.' r— V4," t'J T" ^ W* TiJ ', , . ■ »* s^ -■# OS C^^ ^*'' ^ ^ Cl^OJ :*S »o O X «o » *0 ,^i ^ o: O t* r-Tn m'co r^fo ^i\? ctf^^^^o io to"tc e^r^r-^t^ X3io--^i0i'j^w^tCt'<»5>O— *r^ro«fifltot*ao tftCt^t-f't-t^t-t-^-t-t^XXXXXXOOXQO xxxxOQxxuoxxxxxonaoxauxxxoo 14 From thiH lable it will bo seen that in 1S68, the oarningA of the country amoanted to 11,987,247.41, which was eqaai to fi9 coots per head of the popalation. In 1888, the earnings amountoJ to 87,731,050.35, or 81.53 per head of the population. That ia a gratifying incrcabo in the uarningn, which do not mean taxation, from Confederation up to tbo present time. The Customs receipts in 1868 were $3,578,380, or $2.54 per bead. The yield from that source in 1838, was 822,105,926, or 84.45 per head. The EzciHo revenue in 18G8, waij 83,002,588, or 89 cents per head, while the yield from Ezcieo in 1888 was 86,071,4^7, or 81.22 per head. The gross amount of taxation in 1863 was 811,700,631, an average of 83.47 per head, and in 1838, it was 828,177,413, or an average of 8).67 por head. That is a fair, plain and candid statomont of the increase which has taken place in the earnings and in customs in this country from 1868 to 1888. TAXATION OP TWO KINDS. Now, a distinction might be made between what we may call voluntary tax- ation and that which is not denominated strictly under that name, but which it is difScult indeed to find a term well to define. What I mean is this'- and the Htatement may go for what it ia wjrth, and it is made particularly with reference to a favorite method of comparison or calculation which states that the taxation of this country is so much por head of its population, as indicating, by the naming of it in that way, that every man, wr>man and child in the country has perforce to pay that much per head into the coffora of the country. Taxation, then, may be of two kinds — voluntary, and what you may call involuntary taxation. What I mean by it ia this: I, for my part, do not uao tobacco and do not use intoxicating liquor. My case, which is the case of hundreds of tbouaanda, I think of millions, of people in this country An hon. MEMBEB. No, no. Mr. FOSTER. If not of millions now, it will be by and bye, at no very distant period when my pleasant friend, who is looking upon me, comes to think as I do, and as so many others of the people of this country do think. The total revenue for 1887-88 waa 835,908,463.5'^, or an average of 87.22 per head. The oarninga amounted to 87,731,050, which waa $1.55 per head. That leaves 828, 177,4 13 for what wo call taxa- tion, an average of 85-66 per head. But out of this L8 million odd dollars there was paid into the coffers of the country 88,081,730 for tobacco and liquors alone, an equi- valent of 81.78 per head of the people. Now that is a voluntary tax. A man may pay that or he luay not. If he chooses to think that these are luxuries which ho wiahes, or if ho cbooi^od to denominate them ncces'sitics which ho must have, bo pays a tax upon them. They do not fall in the lino of such ucco^^sary articles as the staple foods and the Blaplo articles of wear ; so that if you take them out, it loaves a per capita taxation, on an average, in this country, of $3.68, instead of a total taxation of 85 66 por head. 15 TBB PBB CAPITA CALCULATION. Bat, Sir, I wish to go a step farther, and say that this method of per capita calculation is a clamHy and a miiiloadiDg method, in my opinion, and I wish to give the House my reasons for it. The critic says : "There is a cnr«ain revenue which is collected in this country ; divide that by the nambor of people in the country, and it gives you to-day $5.66 per head. For a family of five this meaus that they pay 828.30 into the coffers of the country. That is an inordinate taxation, and the poor man especially who lives by his day's work, is not able to pay that and keep his family together and live fairly prosperous in the world." Now, I say that the incidence of taxation, bo far as my opinion goes, is not fairly stated by a calculation of that kind. I think we all agree that luxuries should pay most, and that necessary and staple articles should either pay loss, or pay nothing at all ; and that if taxation is to be laid, we, at least on this side of the House, believe that it should be so laid as to compon- sate, by its stimulation of industries, its employment of labor, and the increased consumption which it gives, for the taxation which is laid upon the country, and which is necessary for the carrying on of the Government. Now, if that be true, I affirm that Canada to-day, in her geographical position, with her natural resources, of the peculiar kinds that they are, is a country which is particularly h. ppily situated for the system of taxation which has been the policy of this country from 1878 ontil the present day. For, Sir, Canada is a country which, in comparison with most other countries in the world, has an advantage in possessing an over-supply of the great staples which are necessary for food, for lodging, and for the staple wants of the country. She has her forests with their immense resources, and the houses that are to be bailt, the barns that the farmers and the people require, and these works whiob require lumber as their staple, find in the country itself great resources in that respect, with a surplus going every year into the foreign markets of the world. Tho same is true with reference to the great cereal productions of the world. Canada is a country which produces more wheat, produces more barley, produces more staple foods of most kinds than is necessary for the sustenance of her people, and in those ways she is happily situated so far as the great necessaries of life are conceriied, TDK BICH man's CONTRIBUTION. Now, to come down to what may bo considered a very common, but I think, a very practical illustration, let me take the case of throe persons to illustrate the incidence of the taxation. Here is your well-to-do man, who has means, who has luxurious testes, and who is disposed to gratify thom. With that no one finds fault, but this country says that if ho is disposed to gr.ntify them, and has the means to do it, he shall pay a lax for doing it if be goes outside th^ country to got his luxuries and to get the things which he desires. Sir, if such a man as that buys in the city of New York $1,000 worth of fine furniture and brings it into Canada, the country taxes him to the extent of $350 upon that. If he is musically inclined and buys a piano which is worth $1,000, he pays upon that, when it comes across the customs line, $i30. If 1< ho it fond of Btatnaiy and mflkes an ir vehtment in that lino lo the extent of $500, ho pays $175 in duty in bringing it acrops the lire. If he buys oxponeive plato to the value of $500, the duty upon it is $150. If ho wears jowolry, or buys it for his house- hold and brings it from a foreign country to the value of $500, he pays 8100 duty upon it. If ho is fond of wine and lays in 20 dozon of champagne, hi pays upon that a tax of $130. If ho requires silks for the wear of hinnolf and his family, to the modest tuno of $JO0, and imports tbom, ho pays a tax of $90. If ho wishes a fine carriage and aces one to satisfy him there, and brings it acroi^s the line, and pays for it $500, he pays a doty of $17') upon it. Upon carpets for his house of extra make, which he may buy in a foreign market to the extent of $300 in value, he pays a doty of 25 per cent, or $200. Upon that modest stock of luxuries for a man of means who is disposed to gratify his desires in thai respect, ho has paid into the treasury of the country $1 600 in duty. That is one man's contribution, but it is the contribution of a rich man who wishes these luxuries, who imports them from abroad, and who, (he country sayp, being able to pay for them, must keep up the revenue of the country by p'lying a tax upon thorn. THB farmer's contribution. Now, Sir, we will take No. 2, and that is tho case of the farmer of this country, ■whom wc all love, and far whom wo Jill desire to do the best we can. The farmer of this country lives upon his fiirm in tho rich Province of Ontario, wo shall say Nearly all the foods that aro nsed by tho farmer are raised upon his own farm and pay no duty ; the wheat he raijics ho has ground at tlio neighboring mill, it is brought into his homo and ho pays no duty upon i. The home itself, tho outhoutes, tho barns, all that is necessary in the way of housing for tho work of the farm is built out of woods which grow in this courtry, of which we have a surplus and upon which he pays no duty. Mr. McMULLEN. What about the nails ? Mr. FOSTER. Tho clothing for himself and his family is in many cases made from the wool which is raised by tho farmer himself, or, if not raised by the farmer himself, he clothes himself and his family with tho products of our mills, tho raw materi'il of which is admitted fico. His lumber of all kinds, his furniture of all staple and tolid kinds, his farming machinery, ia made, and made to tho best advantage, out of tho woods of his own country. Ilis fuel grows in the forests which are all about him, or is found in the mines in inexhaustible quantities in this country. So tha*^ taking it in the gross, in the rough, the staple articles of consumption, and of housing, and of fuel for the farmer are those of which this country produces a surplus, which are free within tho borders of this country and upon which not one cent of tax is paid. An hon. gentleman said : " What about the nails ? " With that infinitesimal cast o^ mind which chnractorisos bino, out of tho hundreds and thousands of dollars which are required to buy raw materials for the home, and which are free to the farmer who buys them, the hon. geniloman's mind leads him to look at the few pounds of IT nails which are necefiBary to keep tho strncture together, and apon which a duty may perhaps be paid. That argument, as an bon. gentleman saggests, is clinched. Mr. LANDERKIN. All our farmers do not wear homespun. Mr. FOSTER. No. 3 is tho artisan. lie does not live on a farm on which ho is able to raise what he consumes, bat he lives in u village or town ; but the articles of food which be buys, the clothing which ho wears, the lumber he requires for house purposes, the furniture which ho puts into his home, the tools which he u«es to a large extent and the fuel he burns, which are the laiger items in the expendi- ture of the artisan as well as in the oxpondituro of the farmer, are obtained in this country, which produces a Burplus of them, and no duty is paid upon them. So, I say, that in this country with its present fiscal system and with its peculiar natural advantages, the system of tariff arrangomont under which we live is one which brings the incidence of taxation where it should rest most heavily, upon the man who buys luxuries and b.is expeni^ive tastes and is willinj^ to gratify them, and least heavily upon tho farmer, the well-to-do middleman and tho artisan and tho laboring class. There is this olhor fact, which I think is one of considerable import- ance, that the peculiar structure of our tariff arrangement makes almost a necessity, at least it makes it a possibility, that as tho raw material which comes in as tho material for manufactures is untaxed, while tho manufactured article pays tax, tho stimulus given lends to tho ostablishmont of now industries, which in their turn gather about them labor and so afford employment to tho people, and make in their turn centres for the consumption of tho surplus products of tho country. Sir, to make that argument just a little stronger, lot me say that if hon. members will look into tho customs returns they will find that more than 200 articles which enter into the manufacture of goods come in duty free, and that one-third of tho total imports for home consumption were, in 18S7-88, admitted free of duty in this country, TAXATION IN CANADA AND UNITED i'TATEs. Sir, tho comparisoL is made as well between the debt of the United States and the debt of Canada as it is between the taxation of tho United States and tho taxation of Canada, and the basis in one respect is almostas unfair as the basis in tho other. But, Sir, I have looked through tho figures of the taxation borne by the people of tho United States, and I find that if you take twonty-ono years, corresponding to the life of the Dominion of Canada, in tho United States, in Customs and Excise — that is what you may call tax — they have paid at the rale, taking tho average of their people, of 86.6 i per head during that period. If you take the amount paid by the people of Canada for Customs and Excise in tho same time, tho average for its population is but $4.94 per head, a difference in favor of the Canadian citizen of $1.70 per head on the amount of Customs and Exciso taxation for the period of twentyono years ending 1887-88. That is, if Canada, during those twenty-one years, had been as heavily taxed for Cnsloms and Exciso as were the people of the United States, they would have paid, taking our average popnlation at 4,000,000 souls, 9142,800,000 mor9 2 18 than tho people did pay nnder onr reduced fijstom of tazntion as compared with that of tho United States. If you take iho last eight yearct, from 1881 to 1888, tho taxiUiun paid in tho Unilod States wus 8j.87 per boad, and in Canada $5.7 1, a differ- ence of 13 cents per head in favor of Canada for that pot iod. For tho year 1888, the tax per head in tho Uriited Stateo wu8 85.51 per head, whilHt in Canadu it wuh 15.66, a ditrort'nco of 15 cocts in favor of tho United Slates, which arises from the fact that tho United States, undertaking nono of that largo class of oxpondituroH Fuch an wo have in Canada, and whiub I montionod a few moments ago, has from her Hurplu.'*, with her largo population und immcneo trade, paid a largo amount towards reducing her public debt, and, consequently, is reducing tho per capita rate of taxation which tho people aro obliged to pay. But, when they talk of taxation in tho United States, they talk simply on tho lino of oompirison of tho federal taxe 51 por head, you obtain the total corresponding taxation paid by tho people — 8t) 5 i per head in tho United States as against 85.66 in Canada, a difference in favor of Canada of 93 cents per bead of tho population. Why, sometimes people think that only a country like Caneda, enjoying a protective tariJ, has to pay Customs and Excise tazep. TAXATION IN FREE TRADE BRITAIN. If we go to Great Britain, what do wo find ? Wo find the taxes gathered thero in 1S88 were as follows : — Oii8toms $ 8S,1S8,3S3.36; amount per capita. $2.30 Excise 124,651,485.20 do ... 3.36 Sumpa...- 63,467,777.00 do ... 1.71 Land Tax 6,006,800 00 do ... 0.13 House Tax ^» 9,428,400.(0 do ... 0.25 Property and I ucome Tax 70,173,400.00 do ... 1.89 Total Revenue 357,780,116.66 do ... 9.64 So there is a tax paid nnder theee different heads of $9.64 per head of the popalation in free trade Groat Britain. I undertake to say, after carefully looking into this matter, that taking tho incidence of taxation in Great Britain and comparing it with Canada, it is much more severe and onerous upon tho poorer classes of Great Britain than it is upon tho poorer classes of Canada, and it does not havo the bene- ficial effect there in tho way of stimulating industries and giving employment to labor as it has in Canadu. I find in Franco tho tax per head reaches 812.86, or a difference in favor of Canada of 87.20 per head. In Australasia tho tax per head is 812.79, or a difference in favor of Canada of 87.13. THE APPLICATION OF TAXATION. I think you will agroo with me that in considering taxation, it Is always necessary to havo regard to the application of tho money which is raised by taxation, and when wo como to look into that a little wo will find that Canada stands in a If position of immonse vantage groand in this roppcct, as comfarcd with tho United StatcM of America or Groat Britain. In tho United States (or tho ia^t year wo tlnd that they made tho following payments : — Paid interest on debt ...^ f U,T15,C07 PeDsioDS M „.... 80 2SS,&08 Civil expenses „ 23,8(3,331 Reiprnption of debt ^ » 83,094,405 Military » « , „ 38,62 J,43« .Vav/ 16,&2J,437 Total ~ f 2«,3«a, 127 So that for thOHO oxponsos alone, nearly all of which are fjr war, or for the resiills of war, or for tho keeping up of tho military statu;", thcro w;n paid iiy tho United States 828'j,389, 127, oat of a total expenditure altogelher of 834i,71?,H64. Now, Sir, when yoa look at Groat Britain, you will find my statement equally ttuo with reference to tho application of taxation. Great Britain last year paid tho following sums in expenditure:— Interest on debt ^ X23,213,911 Xaval and military ^ , 30,7S8,687 Ciril list and administration.. ~ .,„... ...... 19,691,900 Or a total of £76,674,548 sterling for these pervices, while only £10,749,097 was paid for the collection of revenue, Post Office service, telegraph service and packet sorvico, I say that, having regard to the application of taxation, there is no comparison, as far as the benefit to tho people is concerned, between the taxes which are raised in Great Britain and the United States and those which are raised in Canada. With the exception of the money expended as a result of tho nnhappy oatbreak in the North-West, every cent of taxation, speaking in the grois, which is raised in Canada, and which has been raised here since Confederation, has gone, not for war, not for waste, not to make up tho ravages of war or to pay for tho consequences it of war, but has gone to construct productive public works which have ropaid tho country for the outlay and have made this a country where business is speeded, where commerce finds splendid facilities, and whore tho people have every roEOurce at their command to make them a business peopio, with profit to themselves and prosperity to the country. It is sometimes suid, and it is a potent word to conjure with, that " taxation " is a bugbear to tho pooplo. It is a bugbear to naintolligont people, but it is not a bugbear to intelligent peopio, and if conjurers corjuro with it to-day they conjure with a word and an instrument which is not less reprehensiblo than the old instruments of tho conjurors of other days. WISE TAXATION KS3ENTUL TO PRCORESS. I believe it is a fact which stands upon a basis sound and certain, that taxation is tho only gateway to progress and development in a country, and that if a peopio sit down and determine that from this day forth no taxation is to bo raised, they sit down to a condition stationary and without progress and which will soon loiiVa 2i them very far behind in Iho raco < f nationM, in tho itcon ccropetition of tc-day. Take a town of 10,000 people which to-doy iH without a sewage HyBtom, wilhoot a proper Hlroct Hystem, without a police HyBtem, without a lighting Byrtem, withoat a tire protection service ; briog those 10,000 people together and let them look into the matter and come to tho conclusion that it is necessai y for promoting the health of tho city and for their htitus, as cumparoJ with other and competing cities, that they hhall have all thosj grout public services. How are they to focure them ? There is only one gatewi-y ihrouj^h which they can march to tho orjoymont of thofio oniightoned and ifBciont sorvicos for their town, and that is through the gateway of taxation. The po(ti»lo of iho city and tho property of tho city mut-t be taxed, or they cannot Bocure, and canrot maintain tho cUiciont scrviccB which every progressive city 'f to-day holds it must havo. What is true of the city is true of tho country as woil. Till Of MPlNf»oect*fO'* ■r^e1 CO OCO C CD 0-2 Tt< t-c ■»rcfl goxtftocooo c-i ^cr: CAM Nr«'<*^coco ■M s •: OOCO ^: C0'r;;Oi; 5^: <0^ (JS; o 5 (n M Q=^ ;j^» coco fMio p^it^JOcoT*"!^ U ^ CO C^ ^ -^ ■«»' ^ O Cb Q^d QQ cicidcilcs::! Nq -o : : : : : i : : : "> 1 oQ— ^ : : : : :•:!«: OQOCCOOC ooooocoo OdOOOOOOOOOOOCiTO 1 1 OOOOOOOOOOOOO — O W o"d*cro"o''o'o ©"©"©"^©"o-o-ffrcT ooooooooocooo«*o e ^ »0»0OC0C2OO»O»0i0OOOVO [ -^ — ■^— .-H«4^— 'COO'^CO'^J* inao J8d 3}«y Tf<0^'^«J<^^^'cS:S -r.* : : : ij . p ,i jp •£ : : : o^ a f^, c3 : o' S : : • «o .t- «8 : o'caDaDOi'>»'io3oo '- oJ S 00 « 00 « 00 X 00 00 I 35 l^'-^C — - ii £ ij-ooooooo o^ fl 1 o -3 i 1 O 28 Sir EICHARD CARTWRIGHT. Will the hon. gentleman state the exact net product of the loan ? Mr. F03TER. The amount of the loan was £t,030,000. The diflcount paid was JE300,410 15s. 9J.; one per cent. commisBion, £40,000; stamps, £i,026 128. 6d. Total amount passed by the Auditor to dato, £2 »3,44'> Ss. 3d. One quarter per cent, brokerage £10,000; stamp duty, £^,778 118.3d.; printing and advortising, £.^,350 133. Od. ; HtampH, £180; being a total of £22,809 4s. 3d., which is still hold by the Auditor General for fuller information, but which, he informs rao, he considers will bo all right and be in the end paid. Total amount to bo taken from the face of the loan for all charges, £265,755 128. Cd , leaving £3,734,244 78. 6cl. as the not amount of the lo.^n, and the rate is 3.27 per cent. The favorable nature of a loan is measured by the returns it gives to investors in comparison with other loans running upon the British market. Our 3J per cents, at that dato were quoted at 105|, which would return to the investor, redemption included, £i 4s. 6d per year. Our 4*8, due in 1904 and 1008, wore quoted at 109J, which would return to the investor, redemp- tion included. £{ 53 9d. Our 4's reduced, falling duo in 1910, were quoted at 1!0^, which gave to the investor £3Gj. Od. 0.ir 4*8, 1910-35, were quoted at 112J, which gave to the investor £i Os. Od., whilst theS's gave tho investor, redemption included, as in the other cases, but £3 43. Id. , an i as tho advantage of a loan, as far a-i wo are concerned, and tho return to the investor boar an inverse proportion, it will bo seen that the loan placed upon the market in 18?8 is more favorable for Canada than the quotations as to the running loans upon the market and the other securities that I have mentioned. Sir RICHARD CARTWRIGHT. Does this ban baar a sinking fund ? Mr. FOSTER. No. I desire to say a word as to the amount which was asked for. Some criticism has taken place in the press, and no doubt some criticism will take place here, in regard to our having asked for a loan of £4,000,000, when we have, by our own admission, a certain surplus on hand unused. At that time we had to meet temporary loans at Glyn's and Baring's, amounting to $6,252,106 ; we had to meet sinking fund and interest, payable in London on the Ist of July, amount* ing to 82,147,354; we had to meet the redemption of debt in the current year of 83,394,386, making in all, 811,793,84J. We had also to meet the redemption of debt in 1889 9J, amounting to 82,417,267, making in all, 814,211,113, which we had to meet either on the Ist July, in reference to the temporary loans and the redemption of debt for that year, and daring the current year for the redouption of debt in 1889-90. That would leave a surplus of 84,2^0,177. Then wo had to face a large capital expenditure which Parliament had already authorized on lue canals, on the Sault Ste. Marie canal — prospectively, at least, and which is now under contract— and an expenditure for the St. Lawrenca canals, running over three years. In addi- tion to that, we had the railway to Capo Breton, which was under construction, and ST which will not be completed until the end of the current year. For all those, a large capital expenditure would have to be incurred. Taking these into account, it became a matter of choice if we should go on the London market for a loan of £3,000,000 at that time and pay all the calls upon us, with the prospect of incurriag a larger amount of expenditure afterwards, leaving four or five millions of dollars which would be required within the next year or eighteen months for which we would have either to place temporary loans or to go on the market again, and it was decided that the most economical course was to take the whole amount at that time, because of the state of the market then, and because of the fact that the money would be required within the period I have mentioned. Besides, for temporary loans wo have to pay 4 par cent., and sometimes more. We have not boon able to get thorn at a rate loss than that. It wa^*, therefore, thought that tho most econom- ical course would bo to borrow tho larger amount and prooluJo tho necessity of getting those temporary loans or going on tho market for anothop loan. I suppose something will be said as to tho diiposition of the surplus, and I may as well make a statement to tho Houso at this time as to that matter. On tho Ist July we had at our command £1,000,000 which wo neodod to place eomowhoro. That million was in London. It was impossible at that time to got a rate of more than 7-8 por cent, for that money in London. The money market soomei to be tilled. Rates were ruling very low, and there was no possibility of saying at what time a change would take place so that we might get a larger rate. Therefore, after thinking the whole matter over, it was considered best, as exchange was largely in our favor from London to New York at that time, to send the money by exchange to New York, under which operation we gained a fair sum for tho exchange. Wo were running the risk of placing the money at a bettor rate of interest hero than we could get in London. It was certain that we could get a considerably larger rate, and we ooald not know how much larger amount we might possibly get. Under these circumstances, the money was exchanged to New York, and, as I said before, a certain sum was made by the exchange. The money was then placed in four Canadian banks at the best rate they would give at that time, which was IJ per cent. It was tho intention of the Government, taking into consideration the rates of exchange cs they have been on the average for a number of years, to keep that money on deposit until the Ist January, and then, as the exchange would bo, accord- ing to previous experience, likely to be favorable, to send tho money from New York to London, under which arrangement a large amount would have been gained by the re-exchange, and those two sums so gained, being added to the amount re- ceived for the money depositedhere, would have given us a much larger interest than we could have obtained by leaving it in London. Sir RICHARD CARTWRIGHT. How did that work out ? Mr. FOSTER. It did not work oat as wo expected. The rates of exchange during tho past year, as my hon. friend knows, have been altogother abnormal, 28 owing to iho fclow movement of the cotton crop, the cost of wheat in consequence of the epoculutivo pricos which prevailed here and which precluded shipments, and to the large imports into the United States. Consequently, there was a difference in the exchange botweon New York and London which had not obtained for a long series of years, and there was allogothor a difference in the normal rulings of exchange, so that, when tho Ist January arrived, instead of there being the usual slate of things, gold was being shipood to London, and it would not have boon profitable for us to exchange to London. Under thor^e oircumhtances, we made arrangements with the banks, and, accoiding to the slatemont which I brought down to the llou^o a few days ago, a largo amount of this money romains in deposit in the Canadian banks at from 3 to 3^ per cent., running until the Ist July, 1889. I suppose that no person can woil make calculations in business matters extending over a number of years' on the basis of the records for that perioJ, who is not liable to be upset in his calculations by the force of abnormal causes. Those causes have rather upset the calculations made fjr the present year, but this fact remains, that, when this money will have boon returned to pay what we have to pay in London, taking all the cost and all the interest wo have received for deposits, wo shall find at the worst that we bhall have paid for the million of pounds that we had on surplus for the year a rate not exoeoJing 4 por cent, which is certainly not more than we would have had to pay for a tompoiary loan which we would have had to make a year afterwards. Sir lilCHARD CARTWRIGHT. Will the hon. gentleman permit me to ask him one question ? Was any obligation formally entered into on the part of the Government of Canada that they would use their sinking fund to purchase those 3 per cent, securities, and, if so, was that a positive obligation ? Mr. FOSTER. My hon. friend means, if I understand him, are we to buy Sr RICHARD CARTWRIGHT. Are you to use your sinking fund to make purchases out of the 3 per cent, loan ? Mr. P'OSTER. I think, so far as my information goes, that our investments for sinking fund purposes are to bo made out of the 3 per cents. Sir BICHARD CARTWRIGHT. That is a positive pledge ? Mr, FOSTER. I do not think it was a positive pleged, I cannot speak certainly. Sir RICHARD CARTWRIGHT. Perhaps the hon. gentU man's predecessor can tell him. Mr. FOSTER. Bat I know that is what we are doing, and that is, 1 think, what we should do, because I think it has its advantages, taken all in all- Sir RICHARD CARTWRIGHT. When the hon. gentleman returns after six perhap? he will be able to tell the House whether the pledge was a positive one or not. Something depends upon thati 29 Mr. FOSTER. 1 will bo able to say, but I do not think it was a positive iiledge. As showing tho favorable nature of that loan of which I have been nptaking, a« Compared with loans of other countries which wore negotiated during the same year, I will read tho following table, showing tho loans tflfected by various conntries in 1888, with tho per cent , and price received : Victoria !£16,0C0,00i Mexico M. Brazil New South Wales India Queensland Arf;e[itine Republic Uruguay Loan. Per Cent £16,0C0,00i 4 3,700, COf 6 6,000,000 :4 3,600, 00( 7,000,fO 3 2,600,CO( -1 3,933,681 4,255,30( 6 Price Received. £108J 7cJ 97 103.12-2 96-7-0 91-16-3 67 82^ In ref-poct to tho Indian loan, wo all know that it is much tho same as a loan by the (TOvernraent of Groat Britain itsoif. Some of tho.se countries are fair ccuntiios for comparison with Canada; others may not be so fair ; but, as is shown in tho case of all of them, even of that of India, I think, considerint; tho oircumstancos which rale in an Indian loan, as compared with a colonial one, the late loan by Canada, may bo considered to bo very satisfactory indeed. So much with reference to tho loar, THE COMMERCIAL CONDITION IS 1888. I now abk tho indulgonco of the IIouoo for a few moments while I turn to an other and more iotoroeting subject — tho commerce of the country for tho past year. In speaking of tho commerce of Canada one can scarcely avoid taking into confidcration the state of commercial oporatioDs and commercial conOdenco in Great Britain and tho United States of America, bocau^o theso two great ccuritrics, with which wo have so large a commorco, and which have so large a commerce with tho rest of tho world, are, as it were, baromotors of tho commercial fooling and of tho commercial enterprise of the world. I find that in Great Britain tho year that has just pa8^od hns been a fairly prosperous year, taking it through and through, and trade in Groat Britain, as shown from all advices, has steadily improved. It has been sound and progroBfiive, and there has boon an absence of speculation, which has boon especially marked, and business is reported as being more active at tho present time than it has been for many years past. A great impetus has been given to the shipping trade, and to ship-building in Great Britain, as in our own country, by tho rise in freights that bas taken place within tho last year, and I find that the tonnage which was built in 1888 in Great Britain was neavl y double the tonnage which was built in 1886, and largely in excess on that which was built in 1887. As a consequence of the revival in the shipbuilding trade and in tho carrying trade, there has been a stimulation of the coal production, and the demand by ship- 90 owners und (-hipbuiltlors has caased a large output, and a rise of wages for thoao who Work tbo mines. The iron industry has been helped as well, and cotton shipments have incroiisod. One very good index of the state of Great Britain is that, whereas at the end of 1887, 20 labor societies, rjporting a membership of 197,000 men, repoited 13,7<)0 unom|iloyed, or 7 per cent, at the end of 1883, 21 societies with :i memborfthip of 24ii,0(jO, reported only 8,200 unemployed, or 3 per cent. Throughout Grout Biitain, according to latest advices, there is u growing confidence ami a cheery outlook for the trade in the future. Much the same may bo said with the trade of the United Slates. The features cf the trade of the United States for the last year have been its heavy output of pig iron, the highly satisfactory condition of its various inJastrijsand its cotton trade especially, and the largo outputs of anthracite coal, the largest, i think, in the history of tlio country. In reforonoo to Canada, hon. gentle- men are, I suppose, as well acquainted with the condition of the country as myself, and it would not be news to them to state that throughout Canada there has been a fairly average, or more than an average condition of trade, during the past year ; that although the harvest was not of the best, it was compensated for its deficiency in quantity, in some parts, by a larger growth in others, and over the country generally by an increased scale of prices. The manufacturing industries are fairly prosperous, the textile industries especially, the largo stocks which were held, as was the case in Great Britain and the case in the United States, having been worked off, the mills are now running on low stocks, with orders in advance, which is a far more healthy state of things than having largo stocks on hand. I find that in Great Britain and the United States, and in Canada as well, there is an advance in prices, and there is an indication, in addition to an advance in prioes, of a significent addition in wages in the largo industries of the country. It would not be well for us to do otherwise than to note in our own country what is of so much importance to the shipping, especially of the Maritime Provinces, the large increase of freights which has takea place and which has made that industry, which, as far as the carrying trade is con> oerned, has not been very prosperous for the last number of years, look very encour- aging, acd bring in good returns to the owners of vessels. Canada's foreiqn iradk. \» ith reference to our foreign trade, the total in value was, in exports, $90,203,000, and the imports were $lI0,8f-4,630, an increase in the exports of 8(J67,189, aLd a decrease in the imports of 8l,9y7,606 ; being a total decrease in the trade of 81,310,417. Our exports, I find, increased to the United States, Franco, Portugal, the Westlndiep, South America, China and Japan, Australia and other countries ; and they decreased with respect to Great Britain, Germany, Spain, Italy, HoUarid, Belgium, Newfoundland and Switzerland, the decreases being smull, with the exception of Great Britain, and the decrease in trade with Gi oat Britain being largely due to the smaller shipments of cereals and cattle f r which tho causes are apparent to the country. I find the exports last year were the highest, with the exception of those of 1881, 1882, 1883 and 1881. 31 The imports were tho highest since Confodoration, with the exception of 1883, 1884 1887, lb72, 1873, 1874, 1876. The balance of trade is le^8 against ihe country than in the preceding year, tho percentage this year being 18.6 excesa of total imports over total exports as against 20,7 last year, and ai;aicHt an average of 20.4 for the last six years, I am not going to discuss tho oftdibcussod question of the balance of trade, which has been well throhhod out in this country, and which I suppose is well understood by both sides of tho Hou.-io. But, Sir, I wish to say a word with reference to what I consider to bo a very important point in comparisons, and in order to introduce it 1 will lead an extract from a speech which I think was delivered by my hon. friend opposite (Sir Richard Cartwrightj at Oakville, onAugust 13th, 1388, and tho extract I have taken is from the report in tho Globe. The speaker said : "How IB it that we Sad that while in 1S73 the total rolume of the trade of the Dominion was $217,030,(00 in ralue, yet in 1887, after eif^ht or nine hundred thousand people had been added to the population in spite of exodus and mifigoverninent, instead of increasing, the volume has fallen off and sunk to about $230,000,000? How is it that we Qud that whereas fifteen years af^o we had a total trade amounting to $58 per bead, we have now, taking the figures of our opponents, a total of bat |12 per head ?" Sir, I think that the hon. gentleman need not have gone farther than his own in- telligence, and his own knowledge of commercial affairs, to have given the question a satisfactory answer. I wish to refer to it here, because I consider it is a compar- ison which is not strictly fair, and that other facts ought to be brought out in the statement of comparative trade, as shown by our returns, comparing 1873 with 1887^ for we find, on looking into tho values of goods in this country, in the United States, in Great Britain, and the world over, that 1873 was the highest year for values in a series of years from 1868, 1 might go further back, down to 1887, and that tho lowest series of values was reached in 1887-88. VALUES AND VOLUME OP TRADE. There are two ways by which you can compare the trade of the country. You can compare it by its value, and by its volume. Our returns simply compare by value, and not by volume ; and if, for instance, wheat falls 50 per cent, one year as compared with another, this country might export twice the quantity at the time of the lower value, yet, according to the trade return, tho exports would bo no greater, and the idea conveyed would be that there was no greater production, and that no greater results came from tho increased production of this country throughout. I have here a statement which has been prepared for a number of years, and brought up to date by Mr. Giffln, Secretary of the Board of Trade of I^^ngland, giving the values of enumerated articles of exports and imports for 187 !, and fr-^ - that year up. The moc^MS o/7eran'it of getting at these returns is simply this: Mr. GifRn goes to the custom houtros and obtains the declared values of goods as entered at the custom houses, and he then deduces therefrom the rate value. Kaving got the rate value in 1873, ho applies that to the year with which he compares 1873, and he thus obtains a fair comparison of the volume of trade upon equal rates as between the different years* 83 I/joking at Iho matter in that light, wo find tiiat tho total exports from Groat Britain, according to tho declared valacs, wore, in 1879, $363,000,000; 1833,8427,000,000; 1884,83&0,390,000; lfc86, $371,000,000 ; 1886,8350,000,000. Those are at the declared valacH ; but if wo take tho values at tho rates of 1873 and compare them, we find, for instance, that whereas tho declared value of tho exports of G'-oat Britain for 1^86 was 8350,000,000, its value calculated by tho prices of 1873 was $509,000,000. That is to say, that, instead of the trade being but $350,0000,000 in 1886, if tho prices had been equal to tho prices of 1873 it would have shown $509,000,000, or more than 50 percent, increase in tho volume of trade as compared between 1873 and 1886. If you take tho imports in like manner the declared value of imports in 1886 was $212,000,000 ; the value of tho imports at the ratcof 1873 was $340,000,000. So, in tho case of exports they were 45 per cent, higher at tho rate of 1873, and tho imports 64 per cent, higher, as will bo seen by tho following figures ; — TAniK which shows in millions of dollars the value of exports and imports, in Great Britain, of enumerated articles and of all articles for the years named, both as declared and as calculated, at the rates of 1873. Enumerated Exports. Enumerated Imports. Total ExporiB. Total Impoitn. At declared values. At prices of 1873. At declared values. At prices of 1873. At declared values At prices of 1873. At declared values. Cm o o ^ 30 1873 ltiT9 - 1883 172 M 11=2 " Un" 140 " 131 " 131 " I7a M 174 " 212J" 208 " 201 J" 215 " :m M 289 " 338 " 300 " 281i" 263 " 308 SI 349 " 403 " 38.1 " 384A " 382j" 371 M "6J " 427 " 390 " 371 " 350 " 371 M 438 " 612 " 498 " 507 " 509 " 255 M 19'J" •240 " 233 " 213 " 2r.i" 255 M 273 " 3-19 " 1884 - 1885 346 " 328 " 1886 349 " Increase of 1886 over 1873, at prices of 1873, over declared value? 45p.c. 64 P.O. While it is fair to say that there are tho returns, and that tho values show so much in 1873, and so much in 1886, it is also but right to go behind that statement and enquire whether there has boon a fall or a rise in prices as between those two years, and ascertain how tho volume of trade compares between those two periods, for, unless you obtain those fact.«, you have not a fair comparison and you cannot make a fair etatomont with respect to the trade of a country. A comparison of tho prices of various articles in 1873 and 1886 as shown by British Customs declared values shows ♦ the enormous fall that has taken place in prices since the first named year, as will be seen by tho following figures: AriRAOi prices of articles mentioned, from declared Customs Talues ia £'a and decimals of a £, and ia ehillingi and decimals of a shilling. Exports. Iron, pig and puddled. Angle, bolt and rod Bar and R K Wire Galvanised Hoops Manufactures of steel lirasB (all sorts) Lead, pii; and pipe Tins, wrougUt and nnwrought., Relinod sugar Woul (dheep and lamb) Flannels Oarpets Imports. Cheeso Wheat Barley « Oats Maize Wheat flour Fish Tow and Oodilla of flax... Hops Lard ^ Copper ore Copper registers Iron and copper jij-rites... Hewn timber (jawn and split .. Staves 1873. Bl2f £ 13- £13 £23- £26' £14 £69' £ 5' £23 S 24' 8 30 21' It) 38 65 ton 77 " 21 " 62 " 95 " 58 " 65 " 99 cwt 75 " 9J " Oi >' ■18dlb. ■lOdyd, •64d " £ 2'fi9 cwt a 13-01 " s 8-69 " 8 8'06 " B 7'06 " B 18-83 " 827-94 " 835-65 " £ 4-91 " s44'37 " t'le-Stton £40-f-0 " 8.')0'02 " £ 3 -24 load £ 3-08 '• £ 9 96 " 1886. S43-17 £ 6-79 £ 6' 13 X13-84 £12-07 £ 6-11 £29-99 £ 3-74 £13-85 8 13-55 S 14-23 10-07d 12-49d 26*41d £ 2'23 8 7-ft5 s 6-78 a 5-89 B 4-91 Sll-20 S25-71 8 23-67 £ 2-91 8 34-50 £ 6-85 £22-74 8 36-99 £ 2-16 £ 217 £ 4-07 * 5 66 68 61 42 65 68 57 38 42 46 63 52 31 34 35 42 33 27 30 41 8 34 41 22 S8 44 26 33 30 69 Now, what I hold is this, and I think it is plain to ovory mombor of this IIouso, that there has been a largo fall in prices between 1S73 and 18b6, 1887 and 1888. These prices taken in England, may bo held as a fair index of the riHO and fall of the prices in Canada— not in all articles, bat in the staples in which wo trade with Great Britain in the way of imporls and in the way of exports. Therefore I think the conclueioa is fair, that in saying that in 1873 the trade was $217,000,000, whilst in 18S8 it was but 8201,000,000, and thereby, trying to dednco the fact that the country is not so prosperous so far as its trade is concerned, you do not state the whole truth of the case. You have to go still further than this and calculate that there is a fall in values in the articles which I have mentioned, and to the percentage which I have men- tioned, and in almost all other articles to a greater or lesser extent, and then you come to what I believe to bo the true basis of comparing the commerce of the country, so far as regards the real advantages which are derived therefrom. You have to take into account the volume of trade, which you can only get by a comparison of prices between the years. A suffloient answer to the question of my hon, friend is this : that although the values in 1873 showed $217,000,000, the volume of trade ia 3 34 1673, aH can be easily Heen from the fall in prico«, was far loss than tho volumo of trude in 1887, and, therefore, tho proHporily of tho country in all that pertains to enlarged commerce so far aa this volumo of trade is cunceriiod, was greater in lU(r8 than it was in 1873. tSigns of Enlarging Fcrev^n TrO'/e, Now with roferonco to tho foreign Irado of (ho country, I think it can bo dis- ccincd in tho hpirit of tho country, ami I find it in conTur»ation with bustinoHS men and on oxuminution of tho bii)>itieHs oiilci])rit-u of the country, that tho hpirit is developing in tills coun'ry for iL(;roa,siiig our loreii,'n trudo more than it has bccJi intrcubod for u number of years pant, ai d fur this there tiro causes which 1 shall mention presently. Homo hon, MEMBKfW. Hoar, hear. Mr. FOSTKR. My friends on tho other side are quite willing to boar mo out in that statement, bocauso, if it bo true, as I have no doubt it i», thoy will try to gather from that statement, some comfort for a lo»t cauKO of their own. Tho spirit for increasing foreign iiade is developing in this country, and it is developing bccausoof this roahon. Tho lime was when tho trade and industries of this country were in a depressed state, when from 1874 to 1878 tho doors of Parliament were besieged by tho representatives ol the industries of this country which were being slaughtered from tho United States markets. Those re|)re8ontativo8 came here and besought tho hon. gentlemen who then occupied tho Treasury bonches to protect tho indastrios and the trade of ihirt country against ruinous competition. Why did they do this ? Because, Sir, from li:l)6 until that lime unavailing etlbrts had been made by both Governments, and by both parties, in all candor and earnestness, to have the trade between our country and the United States again placed on the basis of ISSlorsorao reciprocal basis. All those negotiations wore unavailing, and in tho end events had como to such a crisis that the people of this country were rapidly coming to tho conclusion that if wo could not get a reciprocity treaty with tho country alongside of us, wo should itt least carve out a policy of our own, we should build up our own industries, we should give them tho protection that was nocoHtiary towards building them up, wo should mako an internal commerce to which wo had been strangers up to that time, and we should lay the foundation for reaching out to a foreign trade which can bo only reached out to after that foundation has boon laid in tho internal industries and commerce of the country itself. Just as this Government came to the aid of tho people in lb78, and gave thorn that mousuro of protection which obtablishod their industries, and which has encouriigod and fostered them from 1879 to tho present, just as tho Government came to tho aid of tho country then, tho Government is ready and willing to como to tho aid of the country now and implement to tho best of its ability this dosiro which is growing and stretching out from the truo and solid basis of trade prosperity at homo, into a foreign trade witii other countries, so that wo may compote with foreign countries in tho ditToreut wares that we mako and tho different products that we raise. 35 Enccurayemenl of Foreitjn Trade. This country ami this (rovornmont has always been donlr )us of oxlondin^ it« traJo to foreign countriort. In ull honoity an 1 candor tliat can bo muintaincd nnJ it cannot bo UonioJ. No niultcr what (iovornmunt haa boen on tho Troasurjr bonchcH, no matter wliat party has boen in power, there has boon a contintioas and a porBiMtont attempt to cultivate hotter traJo relations between this oouulry and tho United States of America in a reciprocity that shDuM bo fair and eqiinlly beneficial to both countriet. Tho noh'oliations of IStJi!, of 18til), of 1871, and of 1S3S, all bear tohtimony to that, lint, Sir, if tho country to tho south of us will not f^o upon tha lines of the lalo lioeiprocity Treaty, it it will not trade upon linos which aro fair Hnd ot^ual to both countries, and if it continues to show, as it has done in tho Senate JJill, and as it has in tho President's Blossago, delivered only yesterday, its reiterated udhoronco to the high and slronj^ protective systom that it has placed about it» trade — then, Sir, it bo^^omes this country to build upon its own foundntionp, to develop its own vast natural resources, and to farther strengthen tho internal industries of tho country which will enable her to extend her traij into other countries, and to meet there tho competition which bo will encountered as Canadians can moot it. This spirit of tho people is being iraplomonted by tho Governmont. There are, lying to tho south of us, countries that aro willing to trade with ua and in which an advantageous trade to Canada could bo established. Tho vast country of South America, with its different governments, with its vast natural rosourocB> with its demand for certain articles which wo can supply of tho best kind, is ready lor trade with us on equal conditions with all other countries of the world. Tho West Indies, rich in elements of trade which complement oars and needing a great many of the products and manufactures which we can supply, afford a Sold for what wo boliovo to bo a permanent and profitable trade. In order to carry oat that trade profitably wo believe there must be not only regular communication botwoon tho two coantrios, but that thero must bo also faixly rapid communication as well. This Governmont is prepared, and has given indications of its delorraination, to implement the dosiro of our people to traJo with those countries and build up a profitable commorco, and tho Government has put in the Estimates, as wo have soon, a sum which Parliament will bo a-*kod to vote to o.-*tablish stoam communication between this country, South America and tho West Indies. I have no doubt at all that if thie policy is fairly carried out, as I believe it will bo, thero can bo worked up betwoon Canada and tho(=o countries of which I have made mention a largo and profitable trade oven in tho oxiatingsta'oof tho tariff relations of tho countries concerned. Lying far out to tho east of us aro China and Jiipan, and tho Govornmont mindful of the possibilities of trade in that direction which has already been developed, ha^^ pledged itself to implement tho sub-sidy of tho home Governmont to a direct lino of sleam communication between tho western terminus of tho Canadian Pacific Kailvvay oa tho Pacific coast and those countries. Tho Canadian Pacific IJailway Company has already for a number of months had its steamers on that lino, and tho p0':8ibilitie8 oC 36 working up a fairly rcmunorativo and profitable trade haveboen abundaotly Bhown in that time. Why, Sir, to-day the sarplus product of oar cotton mills finds a profitable market in those distant countries, which a few years ago were inaccepsible to a profitable trade, but which to-day, thanks to the Canadian Pacific Railway Company, and to the enterprise of this country in assisting in the construction of its road, and thanks to that same company for putting on this line of steam communication, we have a direct lino, and one of the best lines, of communicjition with those great countries to the east. Tiieu, down on the Southern Pacific Ocean lies a vast con- tinont of islands, which have certain wants which Canada can implement, and certain productions which Canada can take ; and the Government proposes to ask Parliament to aid in the establishment of a direct line of communication between our westcrii coatt and the colonies of Australia and Now Zealand ; and 1 think I am permitted to Btuto bore that advices which have been received from the Australian colonics are favorable to the consideration of the question of closer trade relations between Canada and the vast countries which lie in the Southern Pacific. Ttien, we have had an Atlantic service which for a series of years, though fairly good, has not boen as good as it should be, taken in connection with the competing lines sailing to tho great poitd to the south ofuu; and the Government to-day are con- sidering whut means are best adapted for improving that service, and placing it on such a footing that Canadians need not bo at all ashamed to compare their route with the lines of steamships which connect with the ports of New York, Boston and Baltimoie. In all this there has been the double aim to develop the industry of the country within, and to extend our trade and commerce without. We have done the first, and now our competition is ovei flowing the bovdors of our domestic markets and seeking profitable markets outside ; and I could, if time permitted, give the Ilouse facts which have been gathered from different manufacturers in this country showing to what an extent they have worked up profitable fields for their goods during the last three years in those distant countries of which I have spoken. And, Sir, I believe that to bo the proper Canadian policy, that wo should look first to this country, first to its industrial improvement and to tho development of its great natural resources, that we should live in comity and peace with tho nations to tho south of us and all other countries in tho world ; but at the same time, that neither threats of non-intercourse, nor blandish ments from without, nor epecious pleas from within, should over be sufficient to induce this country to hand over its oommerical indepondonco to any other country in the world. With a share of this continent larger in size than the Republic to tho south of us, and immeasurably rich in natural resources, vrith a population the most hardy in the world by virtue of our climate, with immense productions of the great staples of the world's consumption and use, with a future before us of peace assured under a flag of a country which is the most powerful on the sea and the most powerful the wide world over, I believe that Canada's future lies in a path of steady, courteous treatment of all countries with whom we have intercourse, and of a steady persistent development of her own com- wjinirr 4 37 mercial lines of policy, for the benefit of hor own people, and of a land which is to be the homo of future millions. It being Six o'clock, iho Speaker left the Chair. After Recess. Mr. FOSTRR. When the House took rocosp, I was making some remarks with reference to the commerce of Canada and her development in one lino of commercial enterprise. That was especially with reference to her forei£,'n commerce, the tablei? for which are given in onr blueliook^, and which are the data upon which we must rely for our chief calcalationa with reference to the improvomont of our foreign trade. It will, however, bo apparent to the House that the fornign trade of a country is but opo branch of the great stream of commf^rciai life and enterprino which helps to develop a country and to transport its products from the place of production to the place of market. CANADA'S INTERNAL TRADE. There is another branch of the commerce of a country whi^h, although it may not bo in the early stages, of so great development and m great importance, bus, nevertheless, from the very start, an importance of its own which continually growa and continually widens, step by step, with the growth and development of the country ; and in many cases comes to be, after a series of years, not only equal in volume to the foreign commerce of the country, but in certain particulars is of greater importance, and has a larger influence upon its development. Our returns and statistics, unfortunately, give us but a very imperfect idea of the volume and extent, and the growth, year by year, of this stream of internal or domestic commerce, and what we do get is simply picked up hero and there from sources which may be reliable of themselves, but which, being scattered, renders it difficult to goneraliee, from the information taken at various points, and difficult to oomo to a conclusion that can be relied upon to comprehend the fall extent and full importance of this commerce. Small in extent in 1867. However, this much we may take as certain, that in 1867, at the time of the union of the i'rovinceg, the domestic commerce and internal trade, as between the Provinces now forming the Coufoderation, was very small in extent, and, as I hope to be able to prove, it has been very rapid in its growth, nntil at pre=ient it has attained a development of the utmost importance to the country, and which deserves to be studied by all who would fairly appreciate our progress, and who would arrive at right conclusions with reference to the efifect of the policy have we adopted. There were certain circumstances that made the exchange of internal commcne impossible to any large extent in 1867. In the first place, those Provinces which formed British North America, out-^ide of Newfoundland, wore scattered. Bach had its own Govern- ment ; each had its own commercial tariff ; each had its hopes and asjiirations bounded 88 by its own limits ; and the means of communication as between the different parts of each Province, and the means of communication between Province and Province, were of a quality and extent which wore not to be compared to those that now exiat^ and their inferior extent must have had a powerful effect in preventing any large internal exchange of products. Besides the hostile tariffs and the lack of communica- tion, there was also a lack of mutual industries and of mutual knowledge. To build up internal commerce and to got its full benefits in unifying a country and in stimulating by the example of one part and the influence of one section, other sections to moot in point of trade the demand and the supply which are thus created, — in order to do that, there must bo centres of industry in different sections of the country which become more or logs the means of developing individual sectional resources and creating interprovincial demand and supply. By means of these centres an internal demand and nupply is created which caufios an interchange of products and builfis up internal commer,^,o. There should also bo, besides these mutual industries? a mutual knowledge existing between the different parts of a country. Now, in 1867, that knowledge was at its minimum The people of Nova Scotia may have had, in its different sections, a good idea of the Province of Nova Scotia a* a whole. They know a little of Now Brunswick, but little in comparison to what they do now. Of Prince Edward Island and of Nova Scotia the same may be said, although those Provinces, lying more closely together and being more easily traversed, had larger mutual knowledge and mutual interests than existed between, say, the Maritime Proviijcos and the central part of the Dominion, or between the central part of the Dominion and the extreme western Provinces. So that, taking all these things into consideration, it is impossible that there should have been a very large stream of internal trjxdo, and the growth that has taken place in that can be fairly appreciated by studying for a moment the growth of communications, the increase of lines of transport between Province and Province and between the different sections of each Province. Rapid growth since 1867. Since that time, the whole of the Provinces have been placed under one central Government, Since that time, these have been joined together by lines of com. manication extending from the remotest part of the east to the Pacific coast, and branching out in hundreds of different directions to every section of the country, and all of those means of communioatioa have hal an iofluenoo, one cannot overrp .e, in developing sections through which they pass, as well as of rendering the general current of commerce and of communication more easy of constant (low. I believe, if we had the full statistics of internal commerce and domestic trade of this country, that to-day they would prove a revelation to our people, and we would place more store upon that increased domestic trade, instead of placing so much store and the whole stress of our investigation on our foreign trade, if wc know the extent of thi-? current which is vivifying every part of Confedera- tion in its inlcrcal progress. We may, however, got at something of this from 89 different Boarces. Within the last few months, there has been sitting at various times and at varions parts of the Dominion of Canada, a commission of labor appointed by this Government which has been examining into the condition of labor ^nd the relations between it and capital in the various industries ; and in the course of their investigations, a mass of moit useful knowledge has been gathered, and is now compiled in their report, a study of which will help us to a better appreciation of many of these questions than wo have hitharto boon able toreach. [ hold in my hand some gleanings prepared on the subject taken frcm the information gathered by that commission. Between the Maritime and Upper Provinces. Before taking up the items to which I have alluded, I find that the records of the Intercolonial Eailway show that there is a steady improvement of trade which continues to develop between the Maritime and the Upper Provinces and the fur west. Take last year's returns alone, and wo find that the Maritime Provinces have sent to the Upper Provinces, coal, and fi, and in 1887-88, 82,0o5,538, an increase of 130 per cent. Taking the tons of raw sugar shipped from Halifax and St. John, we find that in 1884, 21,538 tons wero shipped, and in 1888, 23,742 tons, an increase of 10 per cent. Tho tons of refined sugar shipped from Halifax, Motcton and Dartmouth in 1884 were 20,796, and in 1838, 30,917, an increase of 49 per cent. The tons of coal shipped from Nova Scotia to tho Chandiore Junction wero in 1884, 112,898, and in 1888, 184,662, an increase of 64 per cent. 1 think. Sir, that no person can re.id this table of increase and percentages of increase, without being struck with tho enormous 42 deyolopment of the traffic on that the great central line of conmunication betwoea the Maritime and the Upper Provinces. Mr. GIIARLTON. Before the Minister passes from that sobject I would like to enquire whether there are any conclusions or estimates as to the amount of our internal commerce last year, in dollars, as a whole ? Mr. FOSTER, None that I know of, it is impossible to get it. There are no statistics which will give it ; wo can onlj' get bits of information and generalise as best wo can from those. I have horo a statement of the principal articles transported over the Intercolonial Railway from the Upper Provinces to stations in Nova Scotia and Now Brunswick : Articles. Tons. Iron aad manufactured iron 1,372 Flonr and meal ...,.,61,369 Bran, sbortB and middlings 6,331 Oats 601 Barley „ „ 280 Corn, peas and beans -, 2,109 Butter, cbcese and lard 421 Hay and straw ^ 304 Mee 3 „ 1,652 Leather and hides... 404 Merchandise 19,625 Stone and slate ,.,„ 73 Salt 55 Machinery and agricultural implements , 914 Woodwork, furniture, &o.... 666 Live stock 7 Wire and wire fencing , > 87 Earthenware m 143 Oil, paint and tar 1,845 Canned goods , 63 Lumber and building material 1,424 Fruitand vegetables .^, 259 Gotton 993 Fish , , 22 Lime and cement » , 305 GROWTH OF THE CANADIAN COASTING TRADE. Passing^from tho indications which are given by the figures which I have read as to the amonnt of trade which is taking place in an increasing volume over the Inter- colonial Railway, and between the Maritime and Upper Provinces, and conversely, let us enquire for a moment what is taking place on a different element and by a different mode of carrying power, as is shown in tho coasting trade in the Dominion of Canada. I have here a table the results of which, I think, will be equally 43 satiefactory to the Canadian who is proud of the progress of his coontry, as the figr.res which I have read of railway traffic over the Intercolonial Railway : Canadian coaetiD^; trade Tons Atlantic and Quit do do Steam tonnage do do iSailinK Teasels do do Man pawer employed .■ do Atlantic and Oulf Point , Pacific coast cjast'g trade Tons Manpower do ; 1879. 12,066,683 5,683,447 9,691,465 2,375,218 604,305 278,251 223,707 15,6S6 1888. Increase. 18,789,279 6,722,696 10,863,329 6,179,892 14,677,265 4,985,790 4,1!2,024 1,736,806 676,954 272,619 528,306 250,055 1,434,266 1,211,559 58,991 43,306 Per cent. 66 91 61 73 45 90 541 276 In respect to the etoamer tonnage, we find, as shown above, an increase ot 50 per cent, during those two periods. Of sailing vessels, the increase was Tc» per cent, showing that although there is a large increase in the steam tonnage of coasting vessels, the saih ■ voasoi, for coasting purposes, still keeps its place ahead of steam. These figui .a and this progress, while gratifying to all Canadians — because now all Canadians take an interest in every section of this country — must be particularly gratifying to the representatives and the people of British Columbia, who are so proud of their beautiful Province and who have such confidence in its future development. Sir, we find that the development of the coal trade gives us another indication which may bo relied upon, to a certain extent. Coal and iron, of course, are being stimulated in their production, output and manufacture. The coal product in Canada in 1868 amounted to 623,392 tons ; the produce in 1888 was 2,449,793 tons, an immense increase mainly taking place in Nova Scotia and Cape Breton, and on the Pacific coast, although the coal areas, which are known to exist all over the North-West, are being profitably worked at several points, and the output is largely increasing in the great west, or the middle section of our country. TEADE VIA THE CANADIAN PACIFIC RAILWAY. Taking the Canadian Pacific Railway, the great line of communication which joins our central system with the Pacific coast, we find that the increase of interprovincial traffic is also satisfactory. The tonscarried by the Canadian Pacific Railway in 1885 were 1,996,355; in 1888 they were 2,508,600. Passengers carried in 1885 were 1,660,119 ; in 1888 the number was 2,239,800. The earnings of that road in 1885 were $8,368,493; in 188 S the earnings were $13,195,535. The inter-provincial tonnage carried east and west from Port Arthur during the 11 months of 1887-83 are as follows : In 1887, 176,421 tons ; in 1888, 278,213 tons, an increase in the 11 months of 101,792 tons. The Asiatic freight also furnishes an indication of the stimulation of domestic industries carried out in exports to a foreign country, and I think it would not be uninteresting to the House, in this conjunction, to have the figures 44 of actual oporationH. In 1S87 tho inward end outward Asiatic freight was 11,589 tons; l.S8f^, 13,048 tons. In 1887 the quantity of tea carried was 13,805,022 lbs. ; 18S8, 13,444,2G9. In 1887 tho silk carried was 4fi6,C;87 lbs. ; 1888, 476,014. In 1887, general morohan-iisos, 2,338,1)8 lbs.; 18S8,2,05G,787; In 1887, cotton goods, 5.793.173 lbs. ; 1888, 8,826,772 lbs. ; In 1887, machinery, 55,591 lb«. ; 1H88, 467,5.39 lbs. In 1887, general morchandiso, 486,008 ; 1888, 298,037. In 18?7, cotton goods from Canadian mill-, 1,712,205 lbs.; 1888, 2,009,947 lb=i. This bears out tho assertion I made in tho early part of my statement that there has been a decided increase in the exports of Canadian cotton m'tlla to China and Japan. As fchowing tho movement of grain in Manitoba and tho North- West in connection with tho Canadian Pacifio Railway it may be mentioned that in 1837 the grain moved by tho Canadian Pacific Railway from Manitoba and the North-West reached 11,741,160 bushels, while tho local grain movement in Manitoba was 1,248,219 bushels, making tho total grain movement over tho Canadian Pa.ifio Railway that year 12,959,379 bushels. From these indications, which aro after all but partial indications, I think wo may bo justitiid in believing that tho doveioprnonl of tho internal commerce of this country has marched apace, as it was natural it should do, with the opening up of new sections, with the establishment of industries and especially with tho establishment of facilities for communication between outlying parts of the same Provinces and betweon the different Provinces forming tho Dominion. I will weary the House on longer with my statement so far as that is concernel, believing however that tho items gathered with a good do.nl of pains and trouble cannot but be interesting and instructive to the people of this country. TWENTY-ONE YBAK8 PROGRESS. And now, in conclusion, I will ask your indulgence, Mr. Speaker, while I call tho attention of this Ilouse to an extract from a speech delivered by tho leader of the Opposition at Oakville, in August, 1888, as it was published in tho Olobe. The hon. gentleman, speaking there made this, as I think, extraordinary etato- ment< He ^aid : " It is now 21 years since Confederation was established. We started with the hope— is it not true ?— we started with the hope, as it was told to that time, that we would link together the British Provinces on the continent of America, that we would bind them together with ties of affection and mutual pride and that we would make them a nation. Such was our dream, such was our hope often expressed, often repeated. Now, I ask every one iu this audience, no matter what may have been in the past his political predilections, no matter whether he has been a Conservative or a Reformer— I ask every one in this audienoe, looking back over the time, how far have we advanced in the task we set ourselves to perform 21 years ago ? Sir, the painful answer must be that we have not advanced one iota, one single jjt." The House and I think the country as woU will understand why I denominated this an extraordinary utterance for a gentleman who has tho political knowledge, and who I believe has at heart— I should like to believe at least that ho has at heart- that patriotism which a Canadian statesman should possess. What are the assertions ho makes? First, that what wo have set out to do was to link together the British 45 Provinces on iho continont of America. Wo have not advanced one eirglo j ..t in that respect, says tho hon. gentleman. Second, to bind together in bonds of mutual atTec- tion and pride the people of this ountry. We have not advanced a single iota in that direction, Hays tho hon. gontioman. Third, to make of this country a nation. And there has boon no advance in that regard. Sir, I think an hon. gentleman who could make an assertion liko this in view of tho 21 yo.iis of progress of this Confeder- ation must have nhut his eyes to every part of tho record which was plainly written before him, if he could not see tho progress made in ovory part of this country to- wards linking together these outlying Provincos. I think he mus^t have closed his cars to the sounds of progress which would have greeted thorn if he had kept them open from every part of tho country, showing with cvoi-y fall of tho hammer, with every turn of tho whool, tho mulunl interests which wcro being welded together, and which were being brought into play on tho lino of m«king theso people interdepend- ent on each other, of making thom essential to etwh others wixnts, aud especially linking them together in tho bonds of commercial union and in tho bonds of social and political union as well. Let me take up, if you please, Mr. Speaker, theso items a littlo in detail. First, tho hon. gentleman said wo hiwo not made a single step in advance towards linking tho Provinces together. I think tho visitor who approached those shores in 1867 and took a survey of the Canadian Provinces as thoy wore then and the samo visitor who returns to-day to our shores and takes a survey of Canada as it is to-day, cannot but be impressed with tho sharp contrast presented in every lino, and particularly in tho condition of the country now as compared with the condition of tho country then. LINKING TUB PiWVlNCBS ToaETIIER, At that timo wo had Provinces widely scattered, wiih hosLilo tariff?, with no lines of communication. Tho Maritime Provinces during sevon months of the year had no way to reach tho Upper Provinces except through foreign territory, and no way during tho other months of the year except by a long circuitous route by tho sea. The two Provinces in tho centre of tho country had no access to tho great country of tho North-Wost except through a foreign country part of the way and then to make an overland iourney by river or by vehicio into some portions of the country in the North- West. Tho North-Wost itself was a terra incognita, it was un- known oven to the few people who lived in some sections of it. It was as unknown as is tho centre of Africa to tho people of tho Maritime Provinces, and to tho mass of the people of the two central Provinces as well. The mountains that run north and south between British Columbia and tho North- West forbade all intercourse be- tween that country and tho Pacific Province. Now, what appears? Tho visitor who comes here to-day finds a very different state of things. He finds Nova Scotia intersected with railways running to almost every important part of the country. He finds New Brunswick intersected with railways, possessing a larger mileage in 4C proportion to hor popnlation than probably any other country in the world. He Hoea long linoa of splondid communication stretching from Halifax to Montreal, strotchinj^ from Montreal to the Pacific and joining with Htcamship lines east and west, thus forming a communication which unites the groat oast in Europe with the groat oust in Asia by tbo shortest and host route lor much of tho commerce and for the largtbt proportion of tho passenger traffic between those groat sections of tho world. Ue found thon, Sir, different Govorr,mont8, he found then different tariffs, ho found then the hopes and the thoughts of each Province bounded within itself, with- out any groat future to look to; and no student of history either in tho past or in tho present will fail to see tho vast effect, and the mighty developing influence that the hope of an expanding fuluro has upon tho growth of a young country. Make it be- lieve that there is nothing in tho future in point of groat development or of national status, that there is not a future of hope and promise and you have put one of the strongest limits to a country's developing powers. To-day wo find Nova Scotians, New Brunswickc-rs, Prince Edward Islanders, men from Ontario and Quebec, and every other Province, not feeling so much that they are bound by the limits of their own Province, but believing and feeling and working out that feeling and belief that they are now citizens of a larger country, that they are citizens of a country which, in extent and in resources, is greater than most countries of the world, and is in- ferior to but few. Wo live now under one Government; wo have the uniting power which comes from a common political literature ; we have all that uniting power which comes from a common commerce and intercourse which spreads from end to end of the country along well travelled lines, and it ia simply astonishing to me that a man of intelligence and a man of patriotism can stand up in any portion of Canada in tho year 1888, and can say that, as far as linking together the Province8,thero has not been a single step made in advance from 1867 to 1888. That hon. gentleman said, inthe second place, that what was proposed was to bind the people together in ties of mutual respect and affection, and that in that direction no advance had boon, made. I take issue with my hon. friend on that point and take issue with him most strongly. 1, as a Now Brunswick man, plead guilty to ties of mutual rospoct and affection for my hon. friond, with his kindly manner, with his cultured intolloot and. Sir, I should never have known my hon. friend, in all probability, had it not boon that these Provinces became united, and that in this gradual coming together of pooplo from different parts of this country I became accjuainted with him. What has taken placo in this one particular is but a sample of what is taking place every day, tor tho people of one part of tho country become acquainted with the people of another to whom they would have remained strangers for ever if it had not been that the Provinces were united into a one country, with a common Government a mutual commerce and a common political centre, 47 It ia bard to analyse and it ia moat difficult to estimate the real importance oF what takes place in this (lilont and quiet way. Every visitor from the remote part of one Province or who goes from the older Provinces to the far west, has a power injected into his lifo which finds its way oat into the associations of his whole after life, and which acting upon many units in the way ia which it acts on the one docs more than we can imagine to make us one people, and to combine to- gether in ties of mutual atl'cction and er«teom the people of this common country, living as they do under one common govornmcut. The hoD. gentleman said that what was proposed at the outset was to make of this country a nation ; whatever ho could have meant by that, whether it was meant that the country should take gradually upon itself the larger life, the more generous sentiments and the confidence and pride which comes from greatcoss continually in progress and continually in growth or whether my hon. friend meant Independence I do not know. 1 do know that whether it ue one or the other, as far as all es- sential elements of growing nationality and greatness are concerned, there has been a power at work in this Dominion of Canada from 1868 to 1888 which has eimply been marvellous in its width and its force, as well as in its resultant effects. TUE ELEMENTS OF NATIONAL LIFE. What are the elements of national life whether yoa mean independent national life, or whether you mean the life of a great half continent like ours united in mutual bonds of affection of blood and of common nationality with other countries equally large in extent and greater in population all belonging to the one great Em- pire, what I ask are the elements of national life ? They are great resources, great industries, great traffic and consequent great development. Look at the resources of this country. Has there been no revelation from 1868 to 1888 ? Mr. MILLS. None whatever. Mr. FOSTER. None whatever, says my hon. friend. Well, there never will bo 80 long as such a Bourbon as my hon. friend from Bothwell (Mr. Mills) is a judge of what has been a revelation. Has there been no revelation of the great resources of this country to the people of Canada from 18G8 to the present time? Mr. LANDERKIN. The national debt. Mr. FOSTER. Has there boon no rovolntion of the immense resources in lands which belong to the country and of the productive soil power which at tho time of Confederation was not dreamed of by the inhubitants of tho country ; has there been no revelation of our great resources of mines and mineral wealth ? My hon. friend who sits opposite to me (Mr. Charlton) has been for the last few months a worthy member of a Mining Commission which has gone east and west and north and south. I have read speeches by that hon. gentleman, and I have read reports of the investl- 48 gationH of that commiiiBion, and I bolievo I am perfectly ri^ht in saying that within eiz monthri a roTolation had boon made to my hon. friend himnelf of tbo rcsourcci uiid variety and value of iho mining wealth of this country. lu the North-Wet I and in parts of the older Provinces thoHO are gradually coming to light, until to-day, in the Dominion of Canada, rosourcea which are of immense extent and which in the future will result in groat wealth to this country have become apparent to all. Mr. LANDEKKIN. Yes, if we can get them developed. DIVELOPMENT OP INUUSTHIAL LIKE. Mr. FOSTEU. Sir, has there not been an increase in great industries since 18b'8 till today? That question has been so often discussed on the floor of this IIouso, and has a literature which is so well known to the people of this country, that it would be bold in mo to attempt to take up the time of this IIouso for a single moment in trying to cttablish the fact that from 18G8 to 1888 tlioro has been an immense striilo forward in thu establishment of industrial life and of industrial centres in this country. Has there been no great and growing traflic in this country ? Why, Sir, our export trade, judgot-l by values alone, has increased from 18(J8 to 1888 60 per cent., and our total trade 50 per cent; and if the difforonco in vahio wore taken into account, the trade in volume would bo found to have increased in those twenty years more I bolievo ♦han twice its amount. To-day tho Dominion of Canada, in tbo 2l6t year of its ex'itenco, has a foreign commerce, in addition to itn internal trade, amounting in value to 841.10 per capita of its pojiulatiori, whiio the UniLeo •^ o ■sjaaaa^ I -dVOR joj aasajQ tiMi; o o 'S o«SS •jeqtnix pan jaqmnr] •eiiaj pn» •injOH '*«P!H i 10 « S f^^ in 00 r^ f^ ^^ *-< M prt jfl -- : : 00 CQ CO ttooinm' " " go'-o Co. ^ °0 '■* — ^ •- - • ^ CO 3 CO • 00 CO KS O « " --. OT p« . ^ o ^ o CI* fti ofoo -'o -> v. « O O 00 -c — O g o o '-* '-O C*! : r- --^ "T t/ o " •■ - Qa ^ m 00 00 »- .« — « OD as fn r^ r; ^ CO CO o o> s lO c^j Oi • : 00 — CO : : gOOOcT 0,0. .o i— o m _ ^ — ■ e^i o oj 5 ZJ ». * f^ CO CO t- « — CO CO 00 00 o cr ot> 00 00 t^ CO tn CO oo J, J. I ' oi t~ C> C* t™ "-.^ 00 CO JO en 00 00 00 00 00 CO in g O O S O <1 £ po» qioio I R r» fO O X •• ^ a. «i. 2» S r2 2 i SS * op OO 00 00 UD 00 & Sec'* -1 j; ^ ' tr * *^ 00 S 4^ 00 4^ 00 60 a _ «. ^ 2 * o * ,• «- ,■ *■ « * S * 3 a.S CO g?:2 6 " 2 r: ^ 00 '^' "CIS ~ "O 3« •— CO ^> fl. 2 ^ « -f o t I eg ^ ca : N Ttl " 'i « ^. «- «i li 32 (»g 2 § § S S a a lO OS ^* _J* _r * '^ a W-* '* S " ■^ C« « O 05 « kO •»* lO O O ■* C9 0> O -H « V » ■"- m — »» .» n <& r*. 00 o o -. ^-1 CD ^ s s O 00- g ^ to '"^ -^ ** -^ *; CO ^ *? DO ^ 1. <»-. ^. "„ &4 c« X 4J P. s fr« OO CM •* _. s g s? s g CO ;r^V 0> .i ^"^ .; — SSS m w^ « o ^ '--S =5. °i. is — - «f e« C3 §1 ^^ go t^ CO CO S «r •w oT co" OS .« M C4 ^ .^ s a Bu < CO «-4 •o % 'S, % S3 S 4 «>- "- o a 2 is ■^ o CO — O -< rt ^-t 3 M» c- C-5 « -« cc g-S 00 «»< lO CO u ■" o c &» CO O 09 O bi IM 10 o^ £ .. o 00 ^ e.r cfl" o n CO C4 -v c- *-»- -1 t-l m 00 0> 0> r^ ■ v H «> «" ^ » .. go ^ O o o S3 S g 5 3 ^ .2 »i4 5 -- «_ ►-- i -^ CO « t- ea CO CQ 4> •a a> i-# «o .-< t- e>i o m « I^ t^ ciT £ d 18» ease geo ease • a H * : H . o6 1888. 1868 t do of inc r aver 383... of inc T1868 a a a at- as: 00 o p. ports i tal fro rcenta 888, 868 to rcenta 888, M M O 54,"— «>'" 1x3 H H <1a- a- 61 GREAT INCRIA8E IN BUSINESS DEVELOPMENT. If we look also at the incroase in the direction indicated by the next table and which shows more particularly the large development of the basiness of the country wo find the sanae gratifying progress : °!sl " lO CO ^ HWHN ^«; '"^*iN^ r4c t^-^ .^/-■^-S -£ COa-tOrf5t^<0<3JOO^ r- cT CO ^ o kO OtfJ^CQGpOQ0«0O 00 o C4 ^ m ^^ ^w^ ^H p— I O -^ prj >o o> i-t 1— ( 5> e« to NC«. si s M CO CO la CO o ■«1< • >0 lO lO t" c* en m lo CO O t-H o eq cJN o r>oe^cDo> •>»' 050COOO osrtcnto S cvior-co -"jfcooto t-t-noo lOmON « W* t- -1 M t- to lO CO eo ■* OJ -T Cfl CO r- O 00 — 3 lO « t- CO O) o « •-" lO m —I r)i to ^ to — efi 00 o t* Qb c9 00 00 00 ^ -^ o 00^ CO a CI O ^^(Mr-lCO-^C^lOi 00 i-HOOiO'-'QOOO^ ■«" •U'O Ol I" •Vi •«'« u « o eo^ooo«oot-r-t« eooo^^oosoooo^ ^OCOOCNiuiCO^O ^f-Tco'co"'^' lo c^ t-^'t-T iOCO^^aj^HOO'OcDon c^ooost- VOOPCOIO CO o >o lO t-o CO o go CO 00 c3 o r- t-QO OS CO to CO 40 O CO O CO ^- t- "^ t- a> CD Oi c^ ^ t- Oi CO, CO i>^orci"co CD O ^ (M t-"* ** — < ■^ca to O^ c^c^tfTcjf CO CO ^ Ift f— CO 00 CO m t~<3» ■^ or- O i. O -^ g^ 00 -HCflF^ONCOCOt'OO »OOJaOOC*T'--CD»00 tn CO CO^'-' ^- CQ i.*0 ;M kO CO CO CD t» r- t" t- 00 X 00 00 o 00 o N O t- — — CO C»3 >0 CO e4 00 c^ CO 00 CO CO ^ o CO CO OO 00 »r5 e 03 "B m S^ in ago gaso Cj a 00 *j a. i *>» 9 : 01 Ml a _o "H. S M .2 '5. S^J : 3 a o <*& J3-0 -s be a '3 * ai CO ■a 2 « c e OS a ^8s M a S" cu-^ a'SM'"^ -' 4) SI g 3 ^ .2 > GO o flO- Jd o a a. « (U O V .s<- > '■> tc : be a :,2 "3 • o 6C : Ml 3} ;Ki 4J r t- ^' » H cs'*- Kgeg J- o<" t^^ ^ I M)-: : ffiS-S.2p-5 Ml' ■ T '« cj q) *~ »» -— d 1- ■ a a o O: O H oiJoSs 4> CD OJ ?> m 0> •a ~ OS _ a ■0*5 M S — OS ^fa QQ O OD Q u O . c^ "2"' Ss.S OS ^"2 ^ w B 4-* 3 « B o-go a i o et 09 ■a 2 •c S oO « O't" O <^ ° "^ o dO= = a. So - ® 2- - 0)0)01 •4 4 «d a s 5 * (D o o.S 62 Prom this it will bo Heon that tho discounts in charter banks show an increase since Confederation of 243 per cent. The total production of coal shows an increase of 293 per cent. ; the total consumption of coal shows an increase of 631 per cent. ; the total average of fire inijuranco at risk in Canada, shows an increase of 263-j^ per cent. All this goes to prove the immense development which has taken place in the country as regards its industries, as regards its moneyed institutions, as regards the savings of tho people, and as regards the general indications and the general business prosperity of tho country. In the face of all this knitting together, in the face of this better acquaintance and of consequent better appreciation, which has been so powerful an agent in our progress, during the twenty-one years of Confederation— in tho face of all these evidences of great material development, I think tho statement of my hon. friend was an extraordinary statement — an untrue statement — an unfortunate statement and one which had far better remained unsaid, viz. that from 1868 until to- day, we have made no stop forward in linking together the different Provinces, in makin/^ the ties of mutual respect and affection stronger between ihe various parts, or in developing these elements which go to make a nation. In concluding the state- ment \\hich, by the kind indulgence of this Honse I have been permitted to make and wh ch, 1 must say, has been listened to with such kind attention by hon. gentle- men on both sides, allow mo to add that I believe Canada now, having attained her majority of twenty-one years, has, as I said at the opening of my remarks, a record which can he regarded with jut«t pride and admiration. Looking back upon her progress during the past 21 years, we can be filled with the fullness of hope for her progress in the untrodden future, confident in the vastness of her resources, in the intel!igcnce and commercial fibre of hor people, in tho enterprise of her business men, and in the great facilities for commerce, which, thanks to the gene? ous expenditure of this people and the Government are found in those great lines of communication which permeate all parts of the country, and resting upon these and their certain influences and effects, I believe that Canada, to-day, can look forward to a futaro full of peace, of plenty, and of continued prosperity. So far as I am concerned, as a citizen, and I hope not an unobservant citizen, of this country and of the course of her past history, and as a lover of my country, wishful for her peace and prosperity, for her best and safest political status, I believe that we have have every reason to be fond of and to look with pride on Canada. Whether we be Frenchmen or English- men or Scotchmen or Irishmen or Swedes or Icelanders or Mennonites, the welding process is at work, and every day we are becoming more truly Canadians in heart and sentiment, attached to our country, confident in its resources, and hopeful of its future. In moving that you do now leave the Chair and that the House go into Com- mittee of Supply, I beg to state that although a great many representations have been made to myself as Finance Minister and to my colleague the Minister of Customs, with reference to changes and readjustments of the tariff, — many of which have had some merit in themselves and others of which seem to have had little merit, so far as commending themselves to our attention for change or re-adjustment was concerned, — Ihave made the statement which I made to-day upon the basis of the present tariff arrangements, feeling certain that if upon fuller consideration of some few points which yet remain to be decided, any re-adjustment or change may take place, it will not be of a character and importance to materially alter tho statement which I have made or change the basis to any l.-jrgc extent of what we may hope to receive from tho difl'erent sources of revenue. INDEX. PAQI. Commercial condition in 1888 29 Debt of Canada 9, 21, 23 do contraBted with United States 10-12 do probable— in 1889-92 22 Development of basiness 51 do industrial life 48 Elements of national life r 47 Exports, average and percentage 1868 to 1888 60 Financial statement 4-9 do fiscal year ISBY-SS 4,6 do do 1888-89 6, T do estimated for 1889-90.... 7,8 Imports, average and percentage, 1869 to 1888 ^ 49 Linking the Provinces together 46 Loan of 1888 23-28 Loans made since 1867 26 Progress in 21 years 44 Taxation and its incidence 12-17 do application of. 18-19 do in Canada and the United States contrasted 17 do in Great Britain. 18 do its compensations in Canada 20,21 do and earnings per head 13 Trade, Canada's foreign 30, 34, 35 do along the Intercolonial 41 do growth of Canada's coasting 42 do do interprovincial 37-44 do valaes and volume of ... 31-33 do V(