found only £81,713 with the Rothschilds in London and 5,500 contos in the treasury. There were, moreover, large deficits from previous years. To cut down expenses and provide more money was the only way to get the country out of its difficulties, and that was the program adopted by the Government at the risk of incurring unpopularity. The paper money has since then been reduced to 108,000 contos, the rate of exchange has risen to 12d., and Brazilian bonds have risen 35 per cent. The rest of the loan of 1897 has been repaid, no treasury bills were outstanding, and the Government had at the end of the financial year £2,000,000 credit in London and 12,000 contos and £300,000 sterling with the Bank of the Republic. The era of deficits has changed to one of substantial surpluses. With the funding loan of £8,750,000 the nominal amount of the debt was about £2,000,000 greater, but adding the amount of paper money redeemed to £4,500,000 of gold bonds and 6,200 contos of internal bonds, a considerable amount of debt has been wiped out. The San Francisco railroads were acquired by the Government by bonds paying 5 per cent., instead of the 7 per cent. stipulated, a saving of £136,000 per annum; and for the purchase of the other guaranteed railroads £9,900,000 of 4-per-cent. bonds were issued, only £500,000 more than would have been due on the guarantees if they had remained the property of the companies. The Government has leased some of the redeemed lines with advantage, the deficits of some had been turned into surpluses, and the surpluses of others increased.

The commercial agreement with Italy was continued till Dec. 31, 1902, pending a new arrangement. In return for concessions in favor of Italian products, for which on account of the large Italian population there is a growing demand in Brazil, the Brazilian Government asked for complete exemption from duty on Brazilian coffee; when this was refused, it offered to continue the minimum tariff for three years only in return for a large reduction in the Italian coffee duty. Germans complain that German immigrants and their descendants in Brazil encounter hosility more than the Italian settlers and are subjected to injustice; that in many cases the provincial government of Rio Grande do Sul had declared their land titles defective because the Brazilian landowners who sold the farms to their ancestors had failed to fulfil the terms on which the land had been granted. The German owners had therefore in some cases been ejected and in others had been compelled to buy the land over again without allowance being made for the improvements they had made themselves. Nevertheless, emigration to Brazil is encouraged by the colonial party in Germany in the hope that the German communities there will preserve a patriotic attachment to the empire and extend its influ

ence.

Dr. Francisco Rodrigues Alves, who arranged with the European companies for the transfer of the guaranteed railroads to the Government, was on March 1 elected President of the republic for the term beginning Nov. 15, 1902, and Dr. Silvano Brandao was elected Vice-President. On Sept. 2 Dr. Joaquin Murtinho, who carried out the reforms for the restoration of the country's finances, desiring to enter the Senate, resigned the Ministry of Finance, which was taken over by Sabino Barroso, the Minister of the Interior, for the remainder of the presidential term.

BRITISH COLUMBIA, a province of the Dominion of Canada. Area. 383,300 square miles; population, about 177,000.

Politics and Legislation.-At the beginning of 1902 the Government was composed of James Dunsmuir, Premier and President of the Council; D. M. Eberts, Attorney-General; J. D. Prentice, Minister of Finance, Agriculture, and Education: W. C. Wells, Chief Commissioner of Lands and Works. The Department of Mines was vacant, and remained so until Feb. 27, when E. G. Prior, who had once been a member of the Conservative Government at Ottawa, was appointed minister. In politics the Government was a coalition, and the personal element remained during this year an important feature in British Columbia politics, although a feeling in favor of introducing direct party politics into the administration of provincial affairs grew steadily in force. A stormy session of the Legislature followed, with a fluctuating Government majority. Mr. Dunsmuir went to England after its adjournment to attend the coronation, and not long after his return he resigned the premiership in favor of Col. Prior, who on Nov. 26 announced the following as his Cabinet: Premier and Minister of Mines, E. G. Prior; Attorney-General, D. M. Eberts; President of the Council, W. W. B. McInnes; Minister of Finance, J. D. Prentice; Provincial Secretary and Minister of Education, Dennis Murphy; Commissioner of Lands and Works, W. C. Wells.

Meanwhile the Legislature had been opened on Feb. 20 by Lieut.-Gov. Sir Henri Joly de Lotbinière, after C. E. Pooley had been elected Speaker and Richard McBride chosen leader of the Opposition at a party caucus. The speech from the throne contained these passages:

"In view of the unfavorable conditions which affected the mining industry during 1901, it is especially gratifying to know that the output of the mines considerably exceeded that of any previous twelve months, and that the year closed with several detrimental causes removed, and with prospects of greatly increased activity and development. Negotiations with the authorities at Ottawa, begun last year, have been continued by my Government, and a conference has been agreed to for the further discussion of matters affecting the relations of the province of British Columbia and the Dominion of Canada under the terms of union. A report will be laid before you concerning the results of the commission to inquire into and adjust, where possible, freight rates on agricultural products. It is satisfactory to state, as a consequence, that substantial reductions have been made, and shipping facilities have been improved. It is also a matter of very great satisfaction that the agricultural industry in this province is so prosperous. To further the interests of the stock-raisers of the interior a measure will be submitted providing for the establishment of a system of cold storage in connection with abattoirs.

"The subject of fishery development is one which has been receiving greatly increased attention, and the efforts of my Government are in the direction of placing the industry on a more satisfactory footing. Steps will be taken with a view to the introduction of a fair measure of redistribution. Measures will be submitted for your consideration having for their object the encouragement of immigration and the settlement of unoccupied lands. A measure will also be submitted for the purpose of consolidating existing loan acts and obtaining authority thereunder for the issuance of a new loan.

"Under the authority of legislation of last session, agreements have been entered into with several companies for the manufacture of pulp

and paper, and negotiations are now being carried on for the establishment of these industries. Negotiations are being carried on for the purpose of securing the construction of a railway from Bute inlet to Yellowhead pass, to connect with the railway system on Vancouver island, and for the construction of the Coast Kootenay Railway. Legislation will be introduced dealing with taxation and assistance to hospitals. The estimates of revenue and expenditure have been carefully prepared with a view to the strictest economy being exercised, and will be submitted without delay."

An important piece of legislation during the session, which closed on June 21, was a measure increasing the number of members of the Legislature from 38 to 42. Vancouver received 1 more member, or 5 against Victoria's 4. The bill passed its second reading on March 25 by 32 to 3, and was declared by many Opposition members to be extremely fair. It eventually became law. Railway Legislation. The most important enactment of the session was the passing of a measure that temporarily settled the problem of aiding transportation through the northern part of the province and of meeting the popular demand for some form of competition with the Canadian Pacific Railway. By this act, which was presented on May 6 and finally passed, the old Victoria, Vancouver, and Eastern Railway projeet was merged in a new line-the Vancouver and Coast Kootenay Railway-and Messrs. Mackenzie_and Mann, with their American supporter, J. J. Hill, received the reward of prolonged agitation. The measure provided for land and monetary aid to the Canadian Northern Railway, from Bute inlet to the eastern boundary of the province, and to the Vancouver and Coast Kootenay Railway Company. To aid the Canadian Northern, the Government was to pay for the first 50 miles of railway, beginning at or near Bute inlet, $4,800 a mile; from the end of the said first 50 miles to the point nearest to Quesnel, $4,000 a mile; from the said point nearest Quesnel to the eastern boundary of British Columbia, at or near Yellowhead pass, $4,500 a mile; and also 20,000 acres of land for each mile of railway, the company to sell the land at the current price of Government lands, and to accept the cash subsidy in British Columbia 3-per-cent. inscribed

stock.

For the Vancouver and Coast Kootenay Railway the Government offered $4,000 a mile for the westerly 80 miles; for the next 100 miles, $4,800 a mile; and for the other 110 miles, $4,000 a mile. The railway was to connect with the Victoria Terminal Railway and ferry company's line for Victoria. The Canadian Northern was also to run a ferry to Vancouver island and a railway down Vancouver island to Victoria. The Government_also introduced a bill to borrow $3,000,000 to aid the railways, to pay the overdraft, and to carry on other public works.

The War.-On June 2 the following resolution was unanimously passed: “That this house, have ing heard with the greatest satisfaction that the war in South Africa has been brought to a successful termination, desires to extend to his Majesty's Government the most sincere and loyal congratulations upon the happy occasion."

In the course of his speech the Premier made the following remarks:

"It is at once a matter of pride and patriotic joy that we can join with the people of Great Britain and Britons everywhere in celebrating the successful outcome of a conflict in which our brave Canadian sons took so valorous and con

spicuous a part, having among colonial troops won special distinction everywhere in South Africa and throughout the whole war. It is especially gratifying to us to know that among Canadians the boys of British Columbia were ever to the front in deeds of bravery and shared the hardest fighting and the longest and most memorable marches. The gallant charge at Paardeberg will live long in history, and is engraved in the hearts of the British people."

Finances. The receipts of the province for the fiscal year ending June 30, 1902, were $2,140,751, the expenditure $2,475,334. The estimated receipts for the year ending June 30, 1903, were stated to be $2,222,568; the estimated expenditure, $2,486,127. The following are the details of the receipts for the first and second periods mentioned. The estimate of receipts included: Dominion of Canada-subsidy, grant, and interest, $305,968.65; land sales (including estimated collections on overdue payments, $40,000), $80,000; land revenue (including rental of lands and water dues), $37,000; timber royalty and licenses, $80,000; timber leases, $110,000; free miners' certificates, $100,000; mining receipts, general, $175,000; licenses, $80,000; real-property tax (including estimated collections on arrears, $80,000), $210,000; personal-property tax (including estimated collections on arrears, $60,000), $140,000; wild-land tax (including estimated collections on arrears, $75,000), $130,000; income tax (including estimated collections on arrears, $15,000), $55,000; revenue tax, $150,000; mineral tax, $130,000; fines and forfeitures and small debt court fees, $16,000; law stamps, $14,000; probate fees, $10,000; registry fees, $80,000; printing-office receipts, $15,000; interest on investment of sinking-funds, $35,000; Chinese restriction act, 1884 (Dominion refund), $40,000; fisheries, etc., $35,000; succession duty, $20,000; royalty and tax on coal, $130,000; miscellaneous receipts, $44,100.

The expenditures in 1901-'02 included $411,440 upon the public debt, $253,980 upon salaries, $231,132 upon justice, $41,325 upon legislation, $124,380 upon the maintenance of public institutions and $87,300 upon hospitals and charities, $110,200 upon administration of justice, $369,537 upon education, $32,200 upon transport and revenue services, $804,641 upon public works, and $119,900 upon miscellaneous matters.

The Opposition denounced the Government very freely for extravagance and for fing up alleged deficits year after year. R. G. Tatlow and Dennis Murphy were the chief speakers on this subject, and the latter estimated the public debt of the province at the close of 1902 as being nearly $10,000,000. Speaking on May 3, he explained this as follows: "The debt as it appears in the balance-sheet is about $6,450,465.08; unrecoverable assets, principally payments of interest on railway bonds, the details of which he had given, were $298,676.05; discount on diking items, $400,000; total, $6,749,141.13. To this must be added the overdraft for the current year. Taking the Finance Minister's own figures-he thought they were below the mark-this overdraft will on June 30, 1902, amount to $1,600,000. The overdraft on June 30, 1901, was $871,771.56, so that the increase during the current year will be in round numbers $729,668. Adding this amount to the debt as already computed of $6,749,141.13, the total net debt of the province on June 30, 1902, would be $7,878,141.13. The Finance Minister intended to raise a new loan of $3,000,000, of which, according to his own figures, $1,600,000 would be eaten up by the overdraft, leaving the sum of $1,400,000 to be added

Mineral Production. The total product of the mines of the province up to and including 1901 was $172,241,988, of which $80,000,000 was in gold and $54,000,000 in coal and coke. The total production in 1898 was $10,906,861; in 1899, $12,393,131; in 1900, $20,686,780. In the year ending Dec. 31, 1901, the placer gold produced was valued at $970,100, the lode gold at $4,348,603, the silver at $2,884,745, the copper at $4,446,963, the lead at $2,002,733, the coal and coke at $5,016,398, the miscellaneous minerals at $417,238.

Education. The report of the Superintendent of Education for the year 1900-'01 says the total enrolment during the year was 23,615, an increase of 2,084. Of this number, 12,069 were boys and 11,546 girls. The enrolment of the high-schools was 584, an increase of 31; at the graded schools, 15,460, an increase of 1,647; and at the common schools, 7,571, an increase of 406. The average daily attendance of all schools was 15,334.

The expenditure for education proper during the year was: Teachers' salaries, $213,088.23; incidentals, $20,428.07; per capita grant to city districts, $65,840.76; education office, $12,205.81; normal school, $1,944.30: total, $313,507.18-less fees for teachers' examination, $1,320-net expenditure, $312,187.17. The expenditure for the construction of new schoolhouses, furniture, and repairs and improvements to school property was $38,345.14. The average cost for each pupil in enrolment districts for principals and teachers was $59.26, and the average monthly salary for rural teachers and monitors $52.66.

The Chinese Question.-On Feb. 27 the report of the royal commission of 1901 to inquire into the question of Oriental immigration was submitted to Parliament. The decisions of this voluminous document may be briefly summarized. The belief was expressed that the Chinese kept out immigrants who would become permanent citizens, and created conditions inimical to labor and dangerous to the industrial peace of the community where they resided, spent little of their money, and traded chiefly with their own people. The commissioners believed it was impossible for the province of British Columbia to take its place and part in the Dominion unless its population was free from any taint of a servile class not imbued with a sense of the du

ties and responsibilities appertaining to citizenship. The estimated white population of British Columbia was 129,000, and 16,000 Chinese. The commissioners pointed out that British laws recognized that aliens can be kept out of the country, especially if as a class they are undesirable. The commissioners approved the views of the Legislature of British Columbia, alleging the probability of a great disturbance to the economic condition of the province and of grave injury being caused to the working classes by the large influx of laborers from China. They found that the capitation tax at $100 was ineffective and inadequate. They were of the opinion that the further immigration of Chinese laborers into Canada ought to be prohibited, and in the meantime the capitation tax should be raised to $500. Messrs. Clute and Foley recommended that the capitation tax should be raised at once, while Commissioner Munn recommended that $300 should be imposed for two years, and if a prohibitive treaty be not obtained within that period, that it be then raised to $500.

Boards of Trade Convention.-A convention was held at Kaslo during the week ending March 1, composed of representatives of the boards of trade of British Columbia. Resolutions were passed, including one from Traill in favor of increasing the duties on white lead and other manufactured lead products in Canada; another from Rossland regarding proposed popular safeguards against corporation control of fuel and its price in the Crow's Nest fields; one protesting against the injustice of the existing mineral tax, and asking the Government to reduce it so as to levy on the net value of the ore by deducting, in addition to the present freight and treatment charges, the cost of mining exclusive of capital expenditures. It was declared that further revenue might be obtained by rigidly enforcing the tax of 25 cents an acre now levied on non-working Crown-granted mineral claims, and also by increasing the fees for recording assessments.

Conservative Convention.-On Sept. 12-15 a gathering of representative Conservatives was held at Revelstoke. It was addressed by R. L. Borden, the Dominion party leader, and John Houston, M. P. P., was elected president of the Provincial Conservative Association. Charles Wilson, K. C., was selected as the provincial leader, and after speeches from Col. Prior, the Hon. T. Carter-Cotton, and the Hon. R. McBride, opposing leaders in provincial politics, a resolution was passed in favor of the introduction of Dominion party lines into provincial affairs. The following resolutions were also passed:

"That the policy of the party in matters of provincial roads and trails, ownership and control of railways, and the development of agricultural resources as laid down in the platform adopted in October, 1899, is hereby reaffirmed.

"That to encourage the mining industry the taxation of metalliferous mines should be on a basis of percentage on net profits.

"That Government ownership of telephone systems should be brought about as the first step in the acquisition of public utilities.

"That a portion of every coal area hereafter to be disposed of should be reserved from sale or lease, so that state-owned mines may be easily possible if their operation becomes necessary or advisable.

"That in pulp-land leases provisions should be made for reforesting; and that steps should be taken for a general preservation of forests by guarding against a wasteful destruction of timber.

"That the Legislature and the Government of the province should persevere in an effort to secure the exclusion of Asiatic labor.

"That the matter of better terms in the way of subsidy and appropriation for the province should be vigorously pressed upon the Dominion Government.

That the silver and lead industries of the province be further encouraged by the imposition of increased customs duties on lead and lead products imported into Canada, and the Conservative members of the Dominion House be urged to support any motion introduced for such a purpose.

"That as industrial disputes almost invariably result in great loss and injury both to the parties directly concerned and to the public, legislation should be passed to provide means for an amicable adjustment of such disputes between employers and employees."

ent elected G. R. Maxwell, M. P., as his successor, chose Mr. Martin the party leader by a substantial majority, and passed resolutions in favor of the adoption of party politics in provincial affairs and of fealty to Sir Wilfrid Laurier as the Dominion leader.

Labor Party and Questions.-On April 1113 a convention of labor representatives was held at Kamloops, and Christopher Foley, of Rossland, was elected president of a newly organized provincial Progressive party, with the following platform:

"1. That we gradually abolish all taxes on the producer and the products of the producer, shifting them on land values.

2. Government ownership of railways and means of communication.

"3. That the Government establish and operate smelters and refineries to treat all kinds of minerals.

Meeting of Liberals.-On Feb. 6 a provincial Convention of Liberals opened in Vancouver, with Senator Templeman, chairman of the provincial Executive of the party, in the chair. The object was to discuss the question of introducing party lines into provincial politics and to select a leader or discuss the advisability of doing so. The whole matter soon settled into a struggle on the question whether Mr. Martin should be chosen by the convention or the subject be postponed to another occasion. The chairman found the meeting hard to control from the beginning, and the first important issue raised was the right of the provincial Executive to appoint its members as members of the convention. Disputes as to credentials, therefore, occupied the attention of the 110 delegates present for hours, and the speeches were interspersed with opinions for and against the adoption of party lines. Finally a vote of 69 to 41 declared that the provincial Executive and the editors of Liberal newspapers appointed by that body were not entitled to membership in the convention. Senator Templeman and his friends then left the hall, and those presVOL. XLII.-6 A

"4. That the franchise be extended to women. "5. The abolition of property qualifications for all public offices.

"6. Farms, improvements, implements, and stock not to be taxed, and wild lands to be assessed at the price asked for them by speculative holders.

"7. No land or cash subsidies. Lands to be held by the actual settlers.

"8. Ten per cent. of all public lands to be immediately set aside for educational purposes, and the education of all children, up to the age of sixteen years, to be free, secular, and compulsory. Text-books, meals, and clothing to be supplied out of the public funds when necessary.

"9. Compulsory arbitration of labor disputes. "10. Restriction of Oriental immigration by a law on the lines of the Natal act; and if said law be disallowed it be repeatedly reenacted until the end sought is obtained.

"11. That to protect us from Asiatics already in the province the Government insert a clause in all private acts to this effect: This act shall be null and void if the company fails to enter