560 



PRINCE EDWAKD ISLAND. 



crops and the fairly good prices obtained for our 

 products. 



" It is a matter of devout thanksgiving that 

 in the long and arduous struggle in South Africa 

 British arms have been victorious, and equal 

 rights and freedom, as exemplified under British 

 rule, is assured to the people of that country. 

 We also feel proud of the manner in which our 

 Canadian soldiers acquitted themselves; they 

 have brought credit and honor to this country 

 and raised Canada in the eyes of the world. We 

 rejoice that so many of the brave heroes who went 

 out from this province in the Canadian contingent 

 have been spared to return to home and friends. 

 Two of our young men have laid down their lives 

 for Queen and country, and their memories will 

 ever be cherished by every loyal subject in this 

 their native province. 



" The rapid growth and development of the 

 various branches of agriculture upon which the 

 prosperity of our province so largely depends sug- 

 gests the propriety of giving every encourage- 

 ment and assistance to our farmers by the dis- 

 semination of practical information with regard 

 to the best methods of feeding and caring for 

 stock, as well as the manufacture of dairy-prod- 

 ucts and fruit-culture. Some superior stock has 

 lately been inspected by my Government which 

 will, I am sure, be of great benefit to the coun- 

 try. At the beginning of the present year the 

 Department of Agriculture was constituted and 

 a commissioner appointed, whose efforts will no 

 doubt result in advancing the agricultural inter- 

 ests of the province. 



" A delegation of my Government recently vis- 

 ited Ottawa for the purpose of impressing upon 

 the Federal Government the great necessity of 

 supplementing our annual subsidy. A memorial 

 fully setting forth the demands of the province 

 in this particular respect was presented to the 

 Cabinet, and the matter argued at length. There 

 is good reason to hope that the result will be 

 satisfactory. 



" The working of our present road act, while 

 entailing a heavy expenditure, has not proved 

 satisfactory. A measure will be submitted for 

 your consideration for the purpose of enacting 

 some changes in the present method of keeping 

 up our public highways." 



The acts that were passed included the fol- 

 lowing : 



A public roads act. 



To ratify and confirm agreement between the 

 governments of Canada and Prince Edward Is- 

 land in respect of claims for non-fulfilment of 

 the terms of union. 



To amend an act to impose an income tax. 



To amend an act passed in the sixty-third year 

 of the reign of her late Majesty Queen Victoria 

 entitled " An Act to impose certain taxes on cer- 

 tain companies and associations and brewers." 



To impose taxes on certain life insurance agents. 



For the encouragement of agriculture. 



To amend an act prohibiting the sale of intoxi- 

 cating liquor. 



Respecting the use of tobacco by minors. 



To prevent the destruction of woods, forests, 

 and other property by fires. 



An act to amend several acts relating to con- 

 gregations of Presbyterians within this province, 

 in connection with the Presbyterian Church in 

 Canada. 



Finances. For several years the finances of 

 the province had not been in a very satisfactory 

 condition, and this fact was one of the issues 

 in elections of 1900 as well as the supposed cause 

 of the Premier's visit to Ottawa about the same 



time. On April 12, 1901, the figures were pub- 

 lished for the preceding year and showed receipts 

 amounting to $282,050 and ordinary expenditures 

 of $308,494, together with expenditures upon cap- 

 ital account of $47,499. The receipts included the 

 Dominion subsidy of $181,931; the provincial 

 land tax of $28,245; the sale of debentures at a 

 price bringing $22,000; the taxes upon special in- 

 terests commercial travelers $8,140, incorporated 

 companies $6,062, ferries $5,706 amounting to 

 $19,908; the succession duties, $3,641; and liquor- 

 sellers' registration, $4,700. The chief items of 

 expenditure W 7 ere $16,595 upon the administration 

 of justice; $129,112 upon education; $21,123 upon 

 the Hospital for Insane; $20,861 interest upon 

 loans, etc.; $7,443 upon legislation; $7,469 upon 

 the poorhouse and paupers; $17,118 upon ferries; 

 $23,503 upon roads; and $20,496 upon bridges. 

 The expenditure of $14,920 upon the Prince of 

 Wales College and that of $20,890 upon the Hos- 

 pital for the Insane were the principal charges 

 to capital account. At the same date the Pre- 

 mier stated that the debts of the provincial Gov- 

 ernment included $112,775 to the Royal Bank of 

 Canada, $69,411 to the Bank of Nova Scotia, and 

 $10,396 to the Merchants' Bank of Prince Edward 

 Island. The loans account stood at $170,858, and 

 the amount due on debentures at $222,263. This 

 made a total provincial indebtedness of $585,703. 



On May 8 the Hon. Mr. Farquharson delivered 

 his budget statement. He announced that the 

 provincial claims upon the Dominion had at last 

 been recognized, and $30,000 a year given as com- 

 pensation for the non-fulfilment of the confedera- 

 tion compact regarding steam communication 

 with the mainland. He then referred to some of 

 the items of expenditure recorded above. The 

 new building for the Prince of Wales College was 

 costing $38,000; the annex to the Insane Asylum, 

 when finished, would cost about $50,000. In other 

 directions they had been doing good work. " Our 

 steam service on the ferry routes is more efficient 

 than it was under our friends opposite. The 

 boats and wharves are better kept up, and the 

 cost is $10,000 a year less. We have introduced 

 33 road machines, which do efficient work, and 

 have ordered 2 more. We have built some steel 

 bridges, and a number of cedar and stone struc- 

 tures, all over the province." The expenditure 

 on education and on the Hospital for the Insane 

 was yearly increasing, but he did not see how 

 this could be avoided. He defended the principle 

 of issuing debentures for the construction of pub- 

 lic works, and stated that the $35,000 worth sold 

 for building the college and paying 3J per cent, 

 for thirty years had brought more than their 

 face value. In the past year another $22,000 has 

 been sold. Turning to the receipts, he said that 

 no other country had so low a succession tax, 

 and that the liquor-sellers' registration would 

 soon cease. The land and income taxes were slow 

 in collection. For the ensuing or current. year he 

 estimated the receipts at $314,581, including 

 $181,931 from the Dominion, $30,000 from the 

 land tax, $16,000 from road revenue, and"$15,000 

 from the additional (half-year) Dominion sub- 

 sidy. The estimated expenditure was $294,127 on 

 general account and $20,147 on capital account 

 a total of $314,274. 



The Opposition leader followed, and figured out 

 a deficit in the current year of $42,000. He based 

 this upon the probable falling off in land-tax 

 returns, the increased cost of roads, and the loss 

 of liquor licenses. The Prince of Wales College, 

 Mr. Gordon thought, was costing a little too 

 much, and the cause of the increased insanity in 

 the province should be investigated. 



