CANADA. 



177 





which may attend the working of the Central and 

 the Local Government. Her Majesty's Government 

 cannot but express the earnest hope that the ar- 

 rangements which may be adopted in this respect, 

 may not be of such a nature as to increase at least 

 in any considerable degree the whole expenditure, 

 or to make any material addition to the taxation, 

 and thereby retard the internal industry, or tend to 

 impose new burdens on the commerce of the country. 



Her Majesty's Government are anxious to lose nc 

 time in conveying to you their general approval of 

 the proceedings of the Conference. There are, how- 

 ever, two provisions of great importance which seem 

 to require revision. The first of these is the pro- 

 vision contained in the 44th Resolution, with respect 

 to the exercise of the Prerogative of Pardon. It ap- 

 pears to her Majesty's Government that this duty 

 belongs to the Representative of the Sovereign, and 

 could not with propriety be devolved upon the 

 Lieutenant-Governors, who will, under the present 

 scheme, be appointed, not directly by the Crown, but 

 by the Central Government of the L'nited Provinces. 

 "The second point which her Majesty's Government 

 desire should be reconsidered is the Constitution of 

 the Legislative Council. They appreciate the con- 

 siderations which have influenced the Conference in 

 determining the mode in which this body, so im- 

 portant to the Constitution of the Legislature, should 

 be composed. But it appears to them to require 

 further consideration whether, if the members be 

 appointed for life, and their number be fixed, there 

 will be any sufficient means of restoring harmony 

 between the Legislative Council and the popular As- 

 sembly, if it shall ever unfortunately happen that a de- 

 cided "difference of opinion shall arise between them. 



These two points, relating to the Prerogative of 

 the Crown and to the Constitution of the Upper 

 Chamber, have appeared to require distinct and 

 separate notice. Questions of minor consequence 

 and matters of detailed arrangement may properly 

 be reserved for a future time, when the provisions 

 of the bill intended to be submitted to the Imperial 

 Parliament shall come under consideration. Her 

 Majesty's Government anticipate no serious difficult v 

 in this part of the case, since the Resolutions will 

 generallv be found sufficiently explicit to guide those 

 who wiQ be entrusted with 'the preparation of the 

 Bill. It appears to them, therefore, that you should 

 now take immediate measures, in concert with the 

 Lieutenant-Governors of the several Provinces, for 

 submitting to their respective Legislatures this pro- 

 ject of the Conference ; and if, as I hope, you are 

 able to report that those Legislatures sanction and 

 adopt the scheme, Her Majesty's Government will 

 render you all the assistance" in their power for 

 carrying it into eSect. It will probably be found to 

 be the most convenient course that, in concert with 

 the Lieutenant-Governors, you should select a depu- 

 tation of the persons best qualified to proceed to this 

 country, that they may be present during the prepa- 

 ration of the Bill, and" give to her MajestVs Govern- 

 ment the benefit of their counsel upon any questions 

 which may arise during the passage of the measure 

 through the two Houses of Parliament. 



ed) EDWARD CARDVTELL. 



Governor Viscount MOKCK. 



The Financial Position of the ProtiMa.* 



\ Debt, 1S43. Income, 1363. Outlmy, 1S63. 



Increased Eetenues in 1664. 



Canada, without the produce of the new taxes 11,500,000 



New Brunswick 100,000 



Nova Scotia 100,000 



$1,700,000 



Deficit of 1563 1-27.512 



Surplus of 1564 878,488 



$1,700,000 



Total Revenues of all the Colonies, 1564. I14.2-23.320 



Outlay 18.850,631 



Estimated surplus $;7-2.-4S.S 



The Position of the Confederation, estimated on ifo 

 latin of 1864. 



Local Reve- 

 Revenue now nue which 

 produced for would not 

 General go into the 

 Government. general 

 i Cheat. 



i Difference 



Subsidy to available for 

 be paid to the purpose* 

 each of the Gen- 

 Province, era! Govern 

 cm-- 



Nora Scotia 



New Brunswick 

 Prince Edward 



Island 



Newfoundland. . 



$11.250.000 $1.297.043 $2.006,121 

 1.300.000 107.00O 264.000 

 1,000,000, 89,000: 264,000 



2,000,000 82,0001 153,723 

 4SO,00<K 5,000) 869,000 



$18,260,000 $1,530,043 $3,056,549 $9,543,103 



*li507,591 I $3,954,212 $5,553,379 

 Surplus at the disposal of the Government $l,089,72t 



Average of the Present Tariffs. 



Canada ...................................... 20 per cent 



Nova Scotia ................................. 10 



New Brunswick ............................. 15J ' 



Newfoundland .............................. 11 



Prince Edward Island. ....................... 10 



Future Position of the Proi 



The Auditor's Statement of the Liabilities of Canada, 



Debenture debt, direct and indirect $65,235,649 21 



Miscellaneous liabilities 64.426 14 



Common School Fund. 1.151.958 85 



Indian Fund. ^7",S02 44 



Banking Accounts 



* Appended to printed copy of Mr. Galt'i speech \3f-mtnai G-Mtttt Oftt, 

 VOL. IT. 12 A 



* Average of the last four years. 



t Interest on excess of debt 



; Not estimated by Mr. Gait, for reasons given in the speech. 



