212 



DOMINION OF CANADA. 



a reserve of dollar for dollar was required. By 

 the new currency regulations the Government 

 may issue $20,000,000 in paper currency, and 

 is required to hold only 15 per cent, in gold 

 with 10 per cent, in bonds of the Dominion, 

 guaranteed by the Imperial Government, as 

 security for the redemption of the whole 

 amount issued. New regulations were also 

 made regarding the issue of notes by the bank- 

 ing institutions. In a conference with the 

 bankers, Sir Leonard Tilley was dissuaded from 

 the project of establishing a Government bank 

 of issue which he proposed, and also from in- 

 troducing the American national-bank system 

 requiring a deposit of Government bonds to 

 secure the circulation. The new banking law 

 makes the notes of each bank a prior charge 

 upon its assets, and requires the bank to keep a 

 reserve of 40 per cent, of its circulation in Do- 

 minion notes, and to make full and clear state- 

 ments of its financial condition to the Govern- 

 ment every month. The banks were directed 

 furthermore to cancel their notes of all denomi- 

 nations under five dollars, in order to make 

 room for the new issue of $8,000,000 by the 

 Government, which is intended to be in notes 

 of small denominations. 



In connection with the increased tax on im- 

 ported cigars, a change was made in the excise 

 for the purpose of encouraging the cultivation 

 of tobacco and the manufacture of the domes- 

 tic leaf, by which special licenses are granted 

 to manufacturers of Canadian tobacco only, 

 for which the excise duty is reduced from 

 forty to thirty cents a pound on cigars, and 

 twenty to fourteen cents per pound on other 

 manufactures ; the license-tax for manufac- 

 turing Canadian tobacco exclusively is fifty dol- 

 lars, instead of seventy-five dollars as in the 

 case of other manufacturers. The increase of 

 ten cents per gallon on spirits had the effect of 

 considerably reducing the revenue from that 

 source, owing either to a reduced consumption 

 or to illicit distillation. The tax on distilled 

 liquors is one dollar per gallon ; there is a duty 

 of fifteen cents per gallon on methylated spirits, 

 and one of four cents on vinegar. 



The revised estimate of ordinary expendi- 

 tures for 1879-'80 was $24,978,000; the esti- 

 mate of revenue $24,450,000. A supplement- 

 ary estimate of expenditures increased the es- 

 timated deficit for the year to $623,000. The 

 estimated revenue for 1880-'81 is $25,517,000, 

 and the estimated disbursements, revised at the 

 close of the sessions, are $25,318,734, not in- 

 cluding the item of the survey of Dominion 

 lands, estimated at $300,000, which was for- 

 merly charged to consolidated revenue, but is 

 now transferred to capital account. The reve- 

 nue of 1880 fell considerably below the esti- 

 mate of the Finance Minister, the deficit reach- 

 ing $1,700,000. The actual expenditures for 

 the year were $25,161,712, The expenditures 

 of the preceding year were $24,455,381 ; be- 

 fore that, during the five years of the Liberal 

 Ministry, they had remained at about $23,500,- 



000 each year, excepting 1876, when they 

 reached nearly $24,500,000, and before that, be- 

 tween 1867 and 1873, they had risen progres- 

 sively from $18,500,000 to $19,000,000. 



The following comparative statement of the 

 receipts of the Treasury in 1879-'80, and the 

 preceding year, shows an increase of $1,298,- 

 463: 



The customs receipts increased from $12,- 

 900,659 to $14,071,343; the excise receipts 

 decreased from $5,390,763 to $4,232,427, and 

 the stamp duties from $185,190 to $175,806; 

 the post-office revenues increased from $1,172,- 

 418 to $1,252,498 ; public works revenues, in- 

 cluding railways, from $1,863,149 to $2,167,- 

 401 ; and receipts on public lands increased 

 from $23,828 to $120,479. The total expen- 

 ditures increased from $47,456,421 to $50,879,- 

 241. The ordinary expenditures were $6,963,- 

 852, against $6,941,577 in 1878-79. The 

 principal items of controllable expenditure 

 were civil government, $893,505 ; administra- 

 tion of justice, $574,311; legislation, $598,- 

 105 ; department of public works, $1,051,926 ; 

 lighthouse and coast-service, $425,304; ocean 

 and river steam-service, $385,334 ; mounted 

 police, $332,865 ; post-office, $1,818,271 ; cus- 

 toms, $716,126; public works, $2,329,626. 

 The total expenditure on account of consol- 

 idated fund was $24,850,634, or $1,543,228 in 

 excess of the receipts. 



The chief transactions of the Treasury for 

 the year, were the placing of the 3,000,000 4 

 per cent, loan on the English market, which 

 was taken up at 95 Is. lOJd. Out of the 

 proceeds 1,208,000 of 6 per cent, debentures 

 were retired. The only other operation was 

 the conversion of $3,005,095 of the Dominion 

 6 per cent, stock into a 5 per cent, loan, and 

 the redemption of $693,946 of the same, leav- 

 ing a balance of $422,197. By these opera- 

 tions the interest on the gross debt has been 

 reduced from the average rate of 3'95 per 

 cent, to 3'82 per cent. ; that on the net debt 

 from 4*51 to 4'37 per cent. ; and that on the 

 English loans from 4'57 to 4'45 per cent. The 

 amount of debt outstanding which matures 

 before 1885 is $40,642,872, of which $39,375,- 

 402 is payable in London : $33,419,089 of the 

 total amount does not mature until January 1, 

 1885. The total liabilities of Canada increased 

 from $188,974,753 on June 30, 1879, to $199,- 

 125,323 on June 30, 1880 ; while the total as- 

 sets increased from $36,493,683 to $42,182,- 

 852. The total debt, funded and unfunded, 

 increased during the year from $158,745,580 

 to $173,673,929. The expenditures for the 

 year on capital account for internal improve- 

 ments, were $8,241,173: $2,123,366 on ca- 



