and the estimates of expenditure for the current year were based upon a promise from the Dominion authorities that their grant on January 1, 1902, would be $600,000 in amount. The estimates would, in many cases, show an increase over the previous year and this was especially so in the vote for Civil Government to which recent additions to the salaries of members of the Government had been charged. He believed this increase was justified and approved by the people as the duties had been steadily increasing for years. In the Public Works Department there would be an increase from $187,000 to $258,000. The amount actually required for what were considered public requirements was $400,000. There was an increase in the Educational grant of 10 per cent. caused by the growth of the population. The Government had gone as far as it was wise to go, in taxing the people for local improvements and yet the stage had not been reached where it was possible to do what ought to be done in necessary constructive work. The whole matter of financial receipts from the Dominion was loosely managed and insufficient for the purpose. "There is no difference of opinion throughout the NorthWest Territories as to the fact that we are not getting and cannot get under present conditions the amount of money proper to carry on the affairs of the country." The system of Territorial government would have to be changed to the Provincial and a stated and adequate sum contributed from the revenues of the Dominion. At present the Mounted Police force were getting as large a grant as the Territorial Government were receiving for carrying on the agriculture, public works and education of the whole vast region under their care. estimated $900,000 as a fair amount of revenue under conditions in which they would assume certain responsibilities now accepted by the Dominion. They could not continue to draw on the succeeding year's appropriation as they were now doing to the extent of $200,000. He The Budget was variously criticised or approved by Messrs. F. Villeneuve, A. S. Smith, R. S. Lake, J. B. Hawkes, J. W. Shera, E. C. McDiarmid and Charles Fisher. On June 7th, Mr.R. B. Bennett, for the Opposition, spoke at length. He accused Mr. Sifton of having obtained his position through the influence of his brother at Ottawa, and denounced his speech for having contained few or no details. He declared that there was an actual deficit being concealed of $88,000— $11,091 expenditure on local improvements in 1900, bridges contracted for at $30,050 and unpaid school grants of $47,000. The expenditure to be met in the current year would be $590,000 and the receipts $413,000. Yet the Government in this season of financial difficulties were raising salaries and increasing the expenditure generally! The expenditures on roads was criticised. Money had been very injudiciously spent in this respect. The main roads leading to market centres should be built first and then the branch roads. The present Government had only tinkered with the question. Mr. Bennett believed that, in view of all the circumstances and of the fact that 50,000,000 acres of ungranted lands in the Territories were still available, the Dominion Government should pay the Territories an annuity of $1,000,000. Mr. F. W. G. Haultain was the chief succeeding Government speaker and he charged Mr. Bennett with always finding things out a year or so after other people, and with basing criticism upon misconception of the facts. He defended Mr. Sifton and declared the statement as to his appointment untrue. "The Government had made most pointed requests of the Dominion and had used every legitimate means to obtain funds." As to the overdraft upon next year he thought one dollar spent now was better than two dollars spent a year hence. "When the final negotiations were made with the Dominion the Government would claim and urge a large settlement for the amount spent on the improvement of the roads and bridges." On June 12th, Mr. Bennett moved, seconded by Mr. D. H. McDonald, a long Resolution, expressing the Opposition view of the Government's financial policy and reciting, at the same time, a number of facts in connection with the subject. It was pointed out that the revenue in 1899 was $416,832; in 1900, $467,185, and in 1901, (estimated) $413,000. It was claimed that obligations had been created in 18991900, amounting to $100,000; that the total sum estimated by the Treasurer, as required to meet obligations and carry on the public service to the end of 1901, was $589,120; that further sums overdue or paid out of the next year would bring this total up to $647,120. It was pointed out that in the Speech from the Throne, a pledge had been made that proper representations would be made to the Dominion authorities, but that no result had followed, though Parliament sat for three weeks afterwards. The Resolution concluded as follows, and was voted down by 18 votes to 5:— That we view with alarm the rapid increase in the cost of Executive Government in the Territories, and deem it inexpedient and unjust to the masses of the people in view of our financial condition that the salary of the members of the Executive should be increased; and that the passage of a Supply Ordinance, providing for the expenditure of the entire revenue of the current year and of upwards of one-half of the prospective revenue for the succeeding year, is not warranted by our constitutional power-is contrary to the principles of responsible government, and, in view of impending constitutional changes demanding the consideration of the representatives of the people as well as of the people themselves, such a course is a menace to our rights and detrimental to the interests of the people and the future of the Territories. The of British On March 15th, a Report was submitted to the House of Assembly, at Victoria, by the Premier and the Hon. D. M. Eberts concerning their mission to Ottawa during the weeks lying between January 11th and February 6th. In the documents thus published and in the discussions referred to, Mr. Dunsmuir had pressed strongly upon the Dominion Government the claims of British Columbia in various important mattersthe necessity of checking Chinese and Japanese immigration; the right of the Province to a greater share of the revenues arising from the Chinese Immigration Act; the desirability of settling the conflicting Fisheries jurisdiction; the re-adjustment of the lumber tariff; the granting of co-operative subsidies to railways within the Province; the adjustment of financial relations. The latter was a particularly sore point. Since 1872, when British Columbia had joined Confederation, up to July, 1901, the revenue contributed by the Province to the Dominion had been over $42,000,000. If, Mr. Dunsmuir stated, the contribution had been on the same basis per head as in the other Provinces, it would only have been $15,957,000. The total amount expended by the Dominion in the Province during this period was $28,915,000. The Premier, therefore, argued strongly that on this account, and because of the immense distances, the natural obstacles to travel and transport, the great mineral resources available for exploitation and the sparse population, it was the duty of the Federal authorities to help the Provincial Government in building certain necessary railways. In the same way the Fishery question demanded settlement. By the decision of the Imperial Privy Council in 1898, the fish of the lakes and sea-coasts had been declared Provincial property, while the right of regulation and control had been largely vested in the Federal authorities. There was, however, much room for dispute and further litigation in the matter of licenses, and Mr. Dunsmuir had proposed to Sir Wilfrid Laurier that they should compromise the question by a ten years' Dominion grant of $100,000 annually for the purpose of encouraging ship-building in the Province. He pointed out that in this as well as other matters, British Columbia believed itself unfairly treated. For the year 1899 the Fisheries revenue of all Canada was $76,447, of which the Province contributed $45,801, while receiving only $12,195 out of a total Dominion expenditure upon Fisheries of $408,754. Other matters were discussed in a voluminous correspondence between Sir Wilfrid Laurier and Mr. Dunsmuir, but without practical result. On April 29th, the Hon. J. H. Turner delivered his thirteenth financial statement to the Assembly and announced his coming retirement from the Ministry. The principal receipts for the fiscal year 1900-01, and the estimates for the coming year, 1901-02, were as follows: The expenditures for 1900-01 and the estimated expenditure for 1901-02 were, respectively, $372,790 and $411,440 upon the Provincial Debt; $221,895 and $253,980 upon Civil Government or salaries; $219,470 and $231,132 upon the Administration of Justice; $67,350 and $41,325 upon Legislation; $118,700 and $124,380 upon the maintenance of Public Institutions; $70,650 and $87,300 upon Hospitals and Charities; $326,470 and $369,037 upon Education; $665.323 and $804,641 upon Public Works; $145,820 and $152,100 upon miscellaneous items. The total for the current year was $2,218,468, leaving a deficit of $461,229. The total estimated expenditure for 1901-02 was $2,475,335-showing a deficit of $334,584. The supplementary estimates, which had to be added to this amount, were $167,484. Mr. Turner spoke of the difference between the present conditions and those when he first took office with a Provincial revenue of $514,000. He hoped the Government would continue its policy of development by means of public works. Mr. Turner dealt at some length with certain securities or assets of the Province, as supplied to him by the Lands and Works Department. The total approximate mileage of roads in the Province built and maintained by the Local Government was 5,616 at a valuation of $6,000,000; that of trails was 4,415 with a valuation of $600,000; the number of buildings owned by the Government was 350, worth $2,102,170; the value of the Parliament Buildings in Victoria was $1,000,000-a total of $9,702,170. There was also $583,021 owing to the Province by the Dominion and certain dyking debentures and sinking funds, which increased this total by $3,100,000. He estimated the capital value of the Dominion subsidy-increasing decennially from the $284,000 now payable until it reaches $484,000 -at about nine-and-half millions. Against this total of $21,000,000, were liabilities of $8,866,868. The Minister went on to state that the expenditure for public works, hospitals and charities, agriculture and free education was, in British Columbia, greater in proportion than that of any other British Province or Colony. Mr. John C. Brown, in speaking for the Opposition, stated that he had no intention of criticising the Budget. "On the whole he regarded the statement as a fair and reasonable one." He did not, however, agree with the Minister in classing the public roads, trails and buildings as Provincial assets, nor did he think the Dominion subsidy should be capitalized in the same connection. The agricultural industry could not be helped in a better way than by improved transportation facilities. Mr. Smith Curtis, another Opposition member, was not surprised that the balance sheet showed a deficit, though he thought it was possible to avoid such a contingency. The revenue derived from active mining districts should be devoted to the development of these sections. He hoped that Vancouver Island would soon be given better transportation facilities and regretted that nothing had been done for the pulp industry. He disapproved of the 2 per cent. tax on ore, and argued that the tax should be on the net profit derived from the ore and not on its value. Mr. John Oliver thought that the civil salaries had increased alarmingly and that agriculture was being neglected. All the speakers eulogized the Minister of Finance-especially Messrs. Brown, A. E. McPhillips and Smith Curtis. Mr. Dallas Helmcken, in referring to Mr. Turner's pending appointment as Provincial Agent in London, declared that he had always wielded a potent influence in the country and that "his ripe experience and perfect knowledge of British Columbia admirably fitted him " for that position. An important incident of Provincial finances during the year was the introduction and passage of the Revenue Tax Bill, by which five dollars instead of three dollars could be charged as a poll-tax after January 1, 1902. The Hon. Mr. Turner moved the second reading on April 20th, and, after stating that the Government expected $180,000 in the current year from the smaller rate, declared it possible that they might not actually issue the Order-in-Council increasing the tax which they now asked power to do if necessary. The Hon. Mr. Prentice explained that this tax was the only way they had of getting at such classes in the community as the Japanese and Chinese who, as a rule, owned no real estate or property. He believed in the increased tax. Mr. A. W. Neill argued that the only fair basis for such a tax was income, and he thought the increase extremely unpopular. Mr. E. C. Smith considered the tax to be aimed at the wage-earner, and suggested that the Mongolian could evade it with ease. Mr. Smith Curtis thought that the proviso leaving the operation of the measure to an Order-in-Council was equivalent to its withdrawal, and he considered its principle to be wholly pernicious. "It proposed to take just as much out of the poor as out of the rich, and it was a maxim laid down by the greatest economists that the subjects of a state should contribute to the support of the Government as nearly as possible in proportion to their respective abilities." He read telegrams from a number of Labour men, condemning the measure. Mr. Houston took the line that the Bill was fair, because rich and poor did pay alike. Mr. McPhillips opposed the principle of the measure, but recognized its practical necessity. The vote showed twenty-two to eleven and eventually the measure became law. The financial position of British Columbia was brought before the House of Commons, at Ottawa, by the Hon. E. G. Prior, of Victoria, on April 30th. The speaker started upon the assumption that his Province was suffering from considerable disabilities because of the neglect of the Dominion Government to place sufficient sums in the national estimates for the protection of its interests. He |