CANADA, DOMINION OF. 



Respecting the Ottawa Branch of the Royal 

 Mint. 



Finances. On March 14 the Minister of Fi- 

 nance, Mr. W. S. Fielding, introduced his fifth 

 annual budget. It was a cheerful statement, and 

 the minister declared that in almost every de- 

 partment of Canadian industry there had been a 

 most gratifying activity, while trade and com- 

 merce had flourished in such a degree as to make 

 the period one of unexampled prosperity. The 

 receipts for the last two financial years, ending 

 June 30, were as follow: 



The total increase had been $4,288,745, $1,000,- 

 000 more than he had expected. The total ex- 

 penditure chargeable to consolidated fund ac- 

 count for what may be described as the ordinary 

 purposes of government was $42,97*5,279, show- 

 ing a surplus of $8,054,714. This he described as 

 the largest in the history of Canada, the next 

 largest being that of 1899, which was $4,837,749. 

 There was, however, another class of expenditure 

 called capital expenditure, and composed of items 

 spent for special public works, railways, and rail- 

 way subsidies. These amounts, including $3,308,- 

 894 for the Intercolonial and Prince Edward 

 Island Railways, $2,639,564 for canals, $1,089,827 

 for public works, $230,850 for the militia, $725,720 

 for railway subsidies, and $1,547,623 for the South 

 African contingents and the Halifax garrison, 

 amounted to $9,742,187. The public debt had been 

 diminished by $779,639. On June 30, 1899, it was 

 $266,273,446 (net) ; on June 30, 1900, it was $265,- 

 493,806. On only two occasions in the history of 

 the Dominion had it been possible to announce a 

 reduction in the debt in 1871, when Sir Francis 

 Hincks was Finance Minister, and in 1882 under 

 the regime of Sir Leonard Tilley. He estimated 

 the revenue for the current fiscal year (1900-'01) 

 at $52,750,000, and the expenditures chargeable to 

 the consolidated fund at $46,400,000. The total 

 capital expenditure, however, he estimated at $10,- 

 700,000 additional, and thought that probably 

 $1,800,000 would have to be added to the public 

 debt. As to the condition of the debt generally, 

 he stated that the average yearly increase during 

 the four years of the Laurier administration had 

 been $1,749,093, against an average of $6,563,075 

 in the previous eighteen years. 



Dealing with the coming fiscal year, 1901-'02, 

 Mr. Fielding estimated an expenditure of at least 

 $44,000,000 on consolidated-fund account and 

 $6,296,000 on capital account, together with sup- 

 plementary appropriations and bounties on steel 

 and iroft production of at least $1,000,000. He did 

 not expect a much increased revenue, and in this 

 respect thought we had about reached " the crest 

 of the wave of prosperity." The total expenditure 

 upon the South African war was given in detail, 

 and included $1,547,623 expended in 1898-'99 upon 

 the contingents and the Halifax garrison; $724,068 

 expended from June 30, 1899, to Feb. 28, 1901, for 

 the same purposes; and an estimated further ex- 

 penditure to June 30, 1901, of $120,000 a total 

 of $2,391,692. He spoke of the position of Cana- 

 dian securities in the British market. Our 2| per 

 cent, loan of 1897, issued at 91|, was now quoted 

 at 92, while British consols, which stood at 113| 

 in 1897, were now quoted as low as 97|. If, there- 

 VOL. XLI. 7 A 



fore, Canadian credit had not materially risen, 

 it had at least not shared in the very natural re- 

 sults which war had brought to the greatest of 

 British securities. The only change in tin; tariff 

 announced by the minister was the free admission 

 for one year of all machinery used in the equip- 

 ment of beet-sugar factories. 



Mr. E. B. Osier, a financier and capitalist, was 

 selected to reply to Mr. Fielding in behalf of the 

 Opposition. After pointing out that in the past 

 four years the Government had obtained a rev- 

 enue of $30,950,000 over the revenue of the pre- 

 ceding four years, he declared that the surplus 

 should have been treated in one of two ways 

 either to reduce the taxes or to reduce the public 

 debt. Instead of this, it had been spent with a 

 free hand, and the debt was actually increased bv 

 $6,900,000. "Where are all the professions of 

 economy and all the platforms of the present 

 Government when in opposition? They proposed 

 to reduce expenditure, they proposed to cease 

 bonusing railways and other works which they 

 thought should not require public money." The 

 speaker came out very strongly in favor of call- 

 ing a halt in the squandering of public money 

 in the bonusing of railways and other public- 

 works. It was the duty of the Government to 

 cease this policy in the older provinces at least. 

 He declared that there was not the slightest effort 

 on the part of the Government to keep the expendi- 

 ture within the revenue. Mr. James Clancy took 

 high ground against the alleged extravagance of 

 the Government. They had collected a revenue 

 of $36,618,000 in 1896, and in 1900 one of $51,029,- 

 000. They had increased the taxation of the 

 people. In 1896 the customs duties were $3.94 a 

 head, and the excise 63 cents. In 1900 the cus- 

 toms rate had increased to $5.37, and the excise 

 to 83 cents. The specific increase on tobacco and 

 cigars was $1,313,337; on sugar, $737.534; on rice. 

 $26,000. While the minister had taken $14.000,000 

 more from the people than in 1896, he yet glorified 

 himself for a slight reduction in the public debt 

 of 1900. " In arriving at his surplus of $8,000,000, 

 the honorable gentleman did not include all the 

 expenditures." The receipts for 1899-1900 were 

 $51,029,994; the total expenditure was $52,717,466, 

 leaving in reality a deficit of $1,687,472. It was 

 unfair and misleading to separate the capital and 

 consolidated fund expenditures when both were 

 paid in the main out of revenue. 



Sir R. J. Cartwright, Minister of Trade and 

 Commerce, defended the Government's financial 

 position and record. It was true that the debt 

 had slightly increased, but it was for such indis- 

 putedly good purposes as the expenditure of $3,- 

 500,000 upon the Crow's Nest Railway, the grant 

 of $1,500,000 for the expenses of the troops sent 

 to South Africa, and the discount of about $1.- 

 000,000 on the 2i-per-cent. loan. As to the future, 

 he was very optimistic. " During the next twen- 

 ty-five years, in fact during a shorter period, we 

 shall probably have to refund the whole, or very 

 nearly the whole, of our debts. At this moment 

 the charges for our debt and sinking-fund are a 

 little more than $13,000.000 a year, but if my hon- 

 orable friend (Mr. Fielding) succeeds in establish- 

 ing 2J- or even 2f -per-cent. rates and in dispensing 

 with the sinking-fund as I know he will the 

 probabilities are that before the twenty-five years 

 have expired we shall have reduced that $13.000.- 

 000 to something like $6,000,000 or $7,000,000." 

 He was quite assured as to the nature of the 

 present tariff. Replying to a remark made by Mr. 

 Cochrane, Sir Richard said : " If he means to say 

 that our tariff is a very high revenue tariff, I 

 will agree with him; if he says it is a protective 



