276 



DOMINION OF CANADA. 



The Budget. Sir Charles Tupper, Minister of 

 Finance, in moving the House into Committee 

 of Ways and Means, on April 27, said that the 

 revenue of the Dominion for the year ending 

 June 30. 1887, amounted to $35,754,993, an in- 

 crease of $154,993 over the estimate. The act- 

 ual expenditure was $35,657,860, an excess of 

 $57,860 over the estimates, thus leaving a sur- 

 plus in place of the expected deficit. He esti- 

 mated the revenue for the year 1887-'88 at 

 $36,900,000, and the expenditure at about $37,- 

 000,000, the estimates to be laid before Parlia- 

 ment amounting to $35,421,440.22: and the 

 supplementary estimates would include amounts 

 for mail subsidies and steamship subventions. 

 He said the Dominion had incurred a debt of 

 1,000,000 in England for. temporary accom- 

 modation. Since May last the country had ex- 

 perienced a certain amount of financial strin- 

 gency, and one of the results had been that 

 three banks had ceased to transact business. 

 The past summer was one of unusual heat and 

 drought in the province of Ontario, and the 

 harvest was not up to the average. The same 

 cause had operated against the extensive lum- 

 ber industry, and on account of the lowness of 

 the water, timber that had been cut and lay in 

 the streams could not be made marketable. 

 This had caused a certain drain on the resources 

 of the banks, in order that the legitimate re- 

 quirements of those engaged in the industry 

 .should be provided for. But against this they 

 had occasion to be gratified by the splendid 

 harvest in Manitoba and the Northwest. Still 

 it must be borne in mind that we were going 

 ahead rather too quickly. In our cities, and 

 especially in Toronto, there had been a certain 

 amount of speculation in real estate. In the 

 end, the short crop in Ontario and these other 

 attendant circumstances, would prove a bless- 

 ing in disguise by the curtailment of importa- 

 tions. However, by the exercise of economy 

 and prudence, Canada would soon recover from 

 the present stringency, her trade being sound 

 at the core, and would soon return to its nor- 

 mal condition. At the beginning of the fiscal 

 year the Government, chiefly in deference to 

 the banking community, lowered the limit of 

 deposits in the savings-banks, and fixed the 

 amount to be received from any depositor to 

 be $300 in any one year, and $1,000 in all. 

 Originally, the savings-bank deposits were un- 

 limited; a reduction was then made to $10,000, 

 and afterward this was again brought down to 

 $3,000 ; now the limit is $1,000. The effect on 

 the Government savings-bank deposits had 

 been that some of the larger deposits held by 

 the Government had been withdrawn, and had 

 gone to swell the general business of the coun- 

 try by transfers to the banks where higher rates 

 of interest were offered. The million pounds 

 sterling borrowed in England represented an 

 amount that was expected to have been received 

 from Canadian depositors, the capital expendi- 

 ture of the country having had to be met out 

 of ordinary revenue. 



With regard to the working of the iron and 

 steel tariff, the trade retuns showed that the 

 average duty levied by the United States on 

 imports of iron and steel for the year ending 

 June 30, 1887, was 41 per cent, ad valorem; 

 the average rate for the same articles imported 

 into Canada for the nine months ending March 

 31, under the new tariff, was 23|- per cent, ad 

 valorem. Comparing the United States customs 

 tariff on all goods imported for home consump- 

 tion with the Canadian tariff on similar im- 

 ports, the trade returns show this result for the 

 year ended June 30, 1887: Average rate on 

 United States imports, 31| per cent, ad valorem. 

 Average rate on Canadian imports, 21^ per- 

 cent, ad valorem. Comparing dutiable articles 

 under the United States customs tariff with the 

 same articles under the Canadian tariff, the 

 trade returns for 1886-'87 show the average 

 duty on United States imports for home con- 

 sumption to be 47 per cent, ad valorem against 

 an average of 28| per cent, ad valorem on Ca- 

 nadian imports for the same period. Under the 

 Mills Bill the average customs rates on dutiable 

 articles, based on United States imports for 

 home consumption for 1886-'87, is estimated 

 to be 43 per cent, ad valorem, while under the 

 amended Canadian tariff for the nine' months 

 ended March 31, 1888, the average customs 

 rates on dutiable articles entered for home con- 

 sumption has been 31f per cent, ad valorem. 

 The effect of the tariff on the market prices 

 had been to make a small increase, but not to 

 the full extent of the increased duty. He took, 

 by way of illustration, the value of warrants in 

 Glasgow, that being the best gauge of the gen- 

 eral level of the iron market, and as at Glas- 

 gow prices were pretty even during February 

 and December, 1887. Taking pig-iron, the 

 price in Canada was only from $1 to $1.25 per 

 gross ton higher in December than in Febru- 

 ary, 1887, while the additional duty, which 

 took effect July 1, was $2.24 per gross ton, in- 

 dicating that the foreign maker, carriers, and 

 importers, etc., had made a concession of about 

 $1 to $1.25 per ton to retain the trade. In 

 other words, the consumer paid fully one half 

 the amount of duty contributed to the revenue. 

 As to bar-iron, the price was as follows : In 

 February, 1887, $1.60 to $1.65 per 100 pounds; 

 in December, 1887, $1.85 to $1.90 per 100 

 pounds, showing an advance of only 25 cents 

 per 100 pounds, while the extra duty was 45 

 cents per 100 pounds. As to cast-iron water- 

 pipes, the contract prices for the corporation of 

 Montreal averaged asfollows: For 1885, $18.50 

 per gross ton ; for 1886, $26.21 per gross ton; 

 for 1887, $33.14 per gross ton; for 1888, only 

 $32.10 per gross ton ; although the increase in 

 duty has been $8 per ton. The Montreal wa- 

 ter-pipes for 1888, above referred to, are to be 

 made in Canada from Canadian ore. The in- 

 crease of price over the average for 1885-'86 

 is thus about half the increase in duty. 



After referring in detail to the effect of the 

 tariff in promoting the exploration of new fields 



