NEWFOUNDLAND 
                  
                  
               
               
               
               
               
               
                  Hon. Mr. Rose moved that the House go   into Committee of
                  the Whole to consider the   resolutions on the subject of the Union of  
                  Newfoundland to the Dominion of Canada. 
                  
 
               
               
               
               
               
               
               
               
                  Mr. Mackenzie, before the Minister of Finance
                  proceeded to offer any remarks on his   resolutions, wished to know whether he
                  was   prepared to lay before the House information   as to the statistics
                  of Newfoundland, which   it was necessary the House should possess before it could
                  intelligently consider the resolutions. It was impossible for any but a very   few
                  of the members to obtain
                  this information   for themselves. He had gone to the Library   to-day and
                  found that almost every volume   relating to the statistics of Newfoundland
                  had   been taken away by parties connected with   the Government.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said. that very full statistics   as to
                  Newfoundland had been submitted to   the Quebec Conference, and little change
                  had   taken place since in the relative status of   that Colony compared
                  with the others. He   would be happy to give the fullest information   in
                  his power as they went over the resolutions 
seriatim. He was not aware of any books   on
                  the subject having been taken from the   Library, except that two hours ago he
                  had   sent for a volume containing the latest statements of
                  exports and imports. In now moving that the Speaker do leave the
                  chair, for   the House to go into Committee on these   resolutions, he
                  would briefly give the House   such information as he thought it should be
                  put in possession of. At this period of the   session, and as the terms
                  of the agreement   had been very fully discussed at the time of   the
                  Quebec Conference and subsequently, he   did not intend to weary the House
                  with many   observations. He took it for granted that the   policy of
                  bringing Newfoundland into the   Union would not be disputed. Any one who
                  looked at the matter would see that this   Union could not be complete
                  so long as this   Island, stretching across the Gulf of the St.  
                  Lawrence, with Nova Scotia on one side and   Labrador on the other, did not
                  belong to   the Dominion. He thought, too, that the extent and
                  value of the trade of Newfoundland   were not sufficiently known. He would first
                  allude to the extent of the Maritime interest.   According to the latest
                  statistical information   within our reach, no less than 1,557 vessels  
                  were owned in Newfoundland, having a tonnage of 87,000 tons, and
                  an estimated value   of $4,000,000. Then as regarded its foreign   trade
                  1,216 vessels in one year entered the   various ports of Newfoundland, and
                  1,016   vessels cleared. The aggregate of seamen belonging to
                  these vessels was upwards of   10,000. There were engaged besides in the  
                  seal-fishing 230 sail, and in the cod-fishing   13,000 boats, employing a
                  population of nearly   40,000 persons. Newfoundland stood in a happy  
                  
                  648
                  COMMONS DEBATES
                   June 8, 1869 
                      position. Her exports for a number of years   had always been larger
                  than her imports, but   the character of her population and of her  
                  industries was such that she furnished a   market for the surplus products of
                  the rest of   the Dominion. The population of Newfoundland was
                  wholly a consuming population,   raising nothing and manufacturing nothing.
                  They were wholly a consuming population,   engaged in maritime pursuits.
                  The following   were some of the leading articles of import:-  Flour,
                  200,000 bbls; Indian meal, 40,000 bbls;   biscuit, 50,000 cwt; butter,
                  1,500,000 lbs;   cheese 100,000 lbs; oatmeal, 4,000 bbls; peas,   4,000
                  bbls; manufactured tobacco, 1,000,000   lbs; woollen blankets, cloths,
                  leather, etc.,   $1,500,000. The great bulk of the importations   were the
                  products in which other portions of   Canada abounded, and which we could
                  supply, and she would furnish a market not only   for our
                  agricultural products, but for our   woollen and other manufactures.  
                  
 
               
               
               
               
               
               
                  Mr. Mackenzie thought the hon. gentleman[']s   figures as to
                  biscuits were too large.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said they had struck him   as rather large.
                  The articles he had just mentioned, he continued, constituted the
                  great bulk   of the imports of Newfoundland, and almost   every one of
                  them could be supplied by the   other portions of the Dominion. Then the
                  seafaring population which Newfoundland would   add to the
                  Union would be very valuable.   France had long shown her appreciation of
                  such a body of men by the bounty which she   gave her fishermen. She gave
                  $2 on each quintal of fish taken, or a total bounty of about a
                  quarter of a million sterling. (Hear.) He now   desired to say a word or
                  two regarding the   exports of that Colony. The last returns give   the
                  total exports at about $5,000,000 and a   little over, of which $1,500,000
                  went to the   United States, and over $3,000,000 to England;   $70,000
                  direct to Spain, $800,000 direct to Portugal, and $70,000 direct
                  to Brazil. Now, what   the Dominion needs is variety of markets.   Here we
                  can secure three outlets. To show the   trade we might look forward to with
                  this   colony, the honourable gentleman stated the   sources from whence
                  the principal articles consumed there were at present imported.
                  Out of   their entire $5,500,000 of imports of last year,   $1,500,000
                  came from the United States, including and principally composed of
                  the very   articles he had just now enumerated—flour,   butter, cheese, and
                  such articles as we produce. About one-third of a million came
                  from   Hamburg, and consisted of butter, lard, biscuits,
                  &c.; $2,048,000 came from England, in  
                  
                  
                  articles such as woollens, blankets, &c, leaving   only some $400,000
                  worth for the whole of   Canada. There was, he believed, very little  
                  doubt, that instead of this miserable moiety we   got, the whole of this large
                  trade might be   ours. To show how much more was consumed   by
                  Newfoundland, in comparison with the   other Provinces, he would state that in
                  the latter the imports ranged from about $20 to $30   per
                  head, while in Newfoundland they reached   $42.07 per head. (Hear, hear.) He
                  would now   say a word or two as to the mineral wealth   of the Colony.
                  Its development had increased   only recently. Only two mines were yet open,
                  in which 500 men were employed, who, with   their families, made a
                  population of over a   thousand souls settled in a country, where   four
                  years ago only three or four families were   resident. Having read from Sir
                  William Logan[']s report to show the great value of this   and
                  the other mining districts, the hon. gentleman said he would
                  reserve further details of   the scheme for the discussion in Committee,  
                  and would take up no more time with preparatory remarks further
                  than to observe that the   resolutions before the House were based on  
                  those of the Quebec Conference.  
                  
 
               
               
               
               
               
               
                  Mr. Masson (Terrebonne,) enquired what   steps were taken
                  with regard to the protection   of the inshore fisheries?  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose replied that they had the   treaty rights,
                  whatever they might be, to   guard against American fishermen.  
                  
 
               
               
               
               
               
               
                  The House then went into Committee on the 
                  
                  resolutions, Mr. Street in the Chair. 
                  
                  
                  
               
               
               
               
               
               
                  Hon. Mr. Rose moved the first resolution,   "That it is
                  expedient to provide that Canada   shall be liable for the debts and
                  liabilities of   Newfoundland existing at the time of the   Union."  
                  
 
               
               
               
               
               
               
                  In answer to Mr. Mackenzie, 
                  
                  
               
               
               
               
               
               
                  Hon. Mr. Rose said that the debt of Newfoundland was in round numbers $1,400,000.   It was at the
                  same rate per
                  head as New   Brunswick and Nova Scotia, $27.60. 
                  
 
               
               
               
               
               
               
                  Mr. Blake, Does the $1,400,000 include the   liability to
                  the water company?  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said it did not. This was only   the direct
                  debt of Newfoundland.  
                  
 
               
               
               
               
               
               
                  Mr. Blake—Does it include everything but   the water
                  works liability? 
                  
 
               
               
               
               
               650
               
               
                 COMMONS DEBATES June 8, 1869 
                     
                     
                  
                  
                  
               
               
               
               
               
               
                  Hon. Mr. Rose.—Yes, and the debt stands in   a very
                  satisfactory way so far as the Dominion   is concerned in this way. It is due
                  in a great   measure to the people of Newfoundland themselves,
                  mainly to the Savings Banks, and bore   a small rate of interest. The
                  aggregate amount   due was $651,000, of which $450,000 was due   the
                  Government. The greater amount of this   is due to 1,385 depositors; of whom
                  640 were   depositors under $200, 400 under $500, and   200 under $1,000
                  each. The rate of interest   was mainly 3 per cent. The debt of the colony
                  bore various rates of interest—4, 5, 5 1/2, and 6   per cent.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Smith asked if there were any   assets to
                  represent the debt. What property   was to be handed over?  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose—Their revenues are to be   handed over. The
                  average receipts from the   Customs for the five years previous to 1867,  
                  were from $510,000 to $530,000; and in 1868   $634,000. 
                  
 
               
               
               
               
               
               
                  Hon. Mr. Wood—Was the debt created for   public works, or
                  did it arise on annual deficits?  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose—Some of it was created by   public works, a
                  large sum being laid out on   roads and bridges. The deficits he did not  
                  think would amount to any large sum.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Wood—It seems by the returns   to be the normal
                  state of things that $2,000   a year must be paid to the poor of the Island.
                  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Mackenzie contended that the returns   showed that
                  even a larger sum was annually   paid to the poor. As to a large portion of
                  the   debt being at four per cent.- 
                  
 
               
               
               
               Hon. Mr. Rose said he only stated that   some portion was at
                  that figure.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Blake—At the present rate, what will   be the annual
                  charge undertaken by Canada   under these resolutions, inclusive of whatever
                  amount may be due the Water Company, and   will have to be borne by the
                  Dominion? 
                  
 
               
               
               
               
               
               
               
               
               
                  Hon. Mr. Rose proposed to have answered   this on a
                  subsequent resolution; but would   state it at once. It was this:—Interest on
                  the   amount by which the debt of Newfoundland   is less per head than
                  Nova Scotia, New   Brunswick and Canada, $110,000 to $120,000,   say
                  $115,000; the 80c per head, $140,000,   Crown Lands, $150,000; Special
                  payments,   $350,000; making in all $406,000 or $408,000.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Wood said that the debt per head   was only
                  $25.76 and a fraction for the Provinces now in the Union.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
                  Hon. Mr. Rose said he had already stated   that he
                  proposed to make it equal to that of   Nova Scotia and New Brunswick.  
                  
 
               
               
               
               
               
               
                  Mr. Blake—That is, according to the proposed
                  arrangement, not the existing one.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
                  Hon. Mr. Smith said that having accepted   the situation
                  he would not oppose the resolutions, but he thought he could show
                  that this   bargain was very one-sided. The Customs   revenue would in all
                  probability fall far short   of that of any previous year. It was estimated in 1868
                  at $468,000. Under the Union   what would be the
                  result? The duty on flour,   which realized upwards of $69,000 to Newfoundland would
                  of course be lost, as it   would not be
                  imposed. Nor would that on   other articles, amounting in all to upwards  
                  of $114,000. Deducting this amount, let us   see what we get and what we will
                  give. We   will not probably get more than $300,000   from the Customs,
                  and we will pay interest   on their debt, $3,500,000—$175,000; and their  
                  debt, it had to be remembered, differed from   that of the other Provinces.
                  Theirs arose in   the construction of public works which were   handed
                  over to the Dominion. Then we have   to pay $150,000 for Crown lands which
                  were   worth nothing, Last year the revenue from   these was $2,600,
                  whereas the cost was $6,000.   Yet here we gravely propose to pay $150,000
                  a year rent, and manage them besides. Then   the 80c per head, amounting
                  to $104,000;   subsidy $350,000; steamboat communication   not now
                  provided for between Newfoundland  
                  
                  652
                  COMMONS DEBATES
                   June 8, 1869 
                      and England, as well as a subsidy to the   existing line between
                  Newfoundland and Halifax, $75,000; also the Lieutenant-Governor[']s
                  salary, say $10,000; expenses of the revenue   collection, $35,000;
                  judicial expenses, $10,000   or $15,000; making in all a payment to Newfoundland,
                  under the proposed arrangement,   of upwards of
                  $600,000, for which we are to   receive $300,000. Was not that a pretty dear
                  bargain? Why, it appeared that one-fifth of   the entire revenue of the
                  Island, $50,000, had   to be devoted to the support of the poor.   Then
                  the resolutions will give them $100,000   more than they are accustomed to
                  have for   their customary local wants. These matters   ought to be
                  carefully considered, for, as he   viewed it, while we were extending the area
                  of the Dominion, we were weakening our   strength, and it might
                  unfortunately turn out   that Newfoundland, instead of being a source   of
                  strength, would be a source of weakness.   (Cheers.) 
                  
 
               
               
               
               
               
               
                  Hon. Mr. Howe said he had no doubt that   Canada, for her
                  own purposes, had formed   this Confederacy. She had taken step after  
                  step with a view to this consolidation, and in   that view the acquisition of
                  Newfoundland was   a matter of prime importance. We were enlarging our responsibilty:
                  we had stretched it   westward until we hardly
                  knew its limits, and   now must stretch it east as far as Newfoundland. At all events,
                  Newfoundland to us is a   necessity. We
                  may throw ofi the great West,   but we cannot throw ofi Newfoundland. It lies
                  in the very chops of the channel, as it were;   is at the entrance of
                  our New Dominion, and   to every man looking to the consolidation of   the
                  Dominion he would say, Newfoundland   is a necessity. Newfoundland is worth
                  having   for her own value and importance; and her   higher political
                  importance, in looking at the   future, could not be over-rated. The five North
                  American Colonies had all their trials and   tribulations in the past,
                  but Newfoundland   had more than her share. Now she knocked   at the door
                  of Confederation for admittance;   she was not coerced, but wanted to come in
                  constitutionally, and for that reason he sympathized in her
                  application. She is the oldest   Colony on the Continent, was discovered first,
                  and occupied first. The honourable gentleman   proceeded to allude to two
                  or three delightful   summers which he spent in that Colony, and   said
                  what he then saw made him more willing   to admit this people into the
                  Confederacy. In   their towns he had found as educated, refined,   and
                  wealthy a people as any on the main land,  
                  
                  
                  and on their harbours and bays were to be   found a population physically as
                  fine as any   on the Continent. In point of beauty and social  
                  attractiveness, the women of Newfoundland   were magnificent, (loud laughter,)
                  many of   them being equal to two-thirds of a man. (Renewed
                  laughter,) Having dwelt on the seafaring population, this Colony
                  would bring   to the Dominion some 38,000, and stated that   this would
                  swell the number of able bodied   seamen in the Confederacy to 69,000 or  
                  70,000. The hon. gentleman went on to allude   to the political celebrities of
                  Newfoundland.   Men of enlarged mind and true political sagacity were, it appeared,
                  never wanting to fight   her battles where
                  difficulties arose, and he   hoped to see some of these men in the service
                  of the Confederacy. She was a country with   an interior. All her wealth
                  and industry lay   on the sea coast; but she had got an interior,   and
                  you can reach it. You can cross nearly the   whole island by water. The hon.
                  gentleman   spoke of the fine harbours of the island, and   said in some of
                  the towns, although the inhabitants appeared to be few, they were
                  worth   their thousands of pounds sterling. The cod-   fishery
                  was one for which they had a hard   contest, and out of which they made
                  comparatively little; but the seal-fishery was a rich   one,
                  peculiarly their own, and could not be   taken from them. In a small town, in
                  which he   was one day, he met a fine sturdy fisherman   with a gin-bottle
                  about as big as a clothes   basket, (loud laughter,) who had got in $10,000
                  worth of seals in four weeks. That would show   the exceeding value of
                  the crop. With another   story about a relative of his, named Paddy  
                  Malony, the President of the Council subsided.  
                  
 
               
               
               
               
               
               
                  Mr. Blake. alluding to the remarks of the
                  President of the Council, said it might be   that the observations from
                  his side of the   House had been immaterial. It might be that   they had
                  taken too low and practical a view of   some of the aspects of the question.
                  He did   not think, however, that they had done more   to arrive at the
                  actual position of the facts   than anything that had been done in that  
                  direction by the hon. gentleman who had just   taken his seat. The hon.
                  gentleman had rightly   said that the inhabitants of Newfoundland   were
                  not to be coerced into the Union. He   (Mr. Blake) would say, neither ought
                  they to   be bribed. (Hear, hear). He did not say   whether they were
                  being bribed or not: but   he wanted to get at the facts on which he  
                  could form a judgment on that subject. He   did not think the House had been
                  properly   treated in the mode in which the Minister   of Finance had
                  introduced the question, and  
                  
                  654
                  COMMONS DEBATES
                  June 8, 1869  sought to carry it to a conclusion. On
                  a   question so important, he should give the   whole details that were
                  involved in the arrangement under which it was proposed to  
                  incorporate the Province of Newfoundland,   so that members might have an
                  intelligent   understanding of the whole matter, and   know What they
                  would probably have to pay   for Newfoundland, and what they would  
                  probably derive from it, so that they might   understand whether the bargain
                  was a fair or   an unfair one. The Finance Minister answered   this by
                  saying that they were merely consummating the proposition which
                  was made   at the Quebec Conference. He (Mr. Blake)   apprehended that
                  this House could not be held   as bound by any propositions made at the  
                  Quebec Conference, which were not then assented to, because
                  certain terms were then   laid down of which many members of this   House
                  might not approve, for the admission   of Newfoundland and Prince Edward
                  Island,   and which were not accepted by these   Colonies. This House was
                  not to be bound   for all time to come to incorporate Newfoundland and Prince Edward
                  Island on these terms.   This was entirely a new
                  proposition for the   admission of Newfoundland, and the House   were
                  entitled to discuss and ascertain the   justice or injustice of the terms on
                  which it   was now proposed that it should enter the   Union. Nor were the
                  terms the same. They   differed in very important and material   respects
                  from those offered at the Quebec Conference. The present aspect of
                  the question   also differed very materially from its aspect   at that
                  time. Then it was a question whether   Confederation could at all be
                  accomplished,   and the interests of the various Provinces had   to be
                  consulted so as to get a scheme under   which the subsidies to the various
                  local Legislatures should be based on some uniform  
                  principle. As regards Newfoundland, there   was an exceptional arrangement
                  that she   should sell her Crown Lands to the Dominion   and receive a
                  large annual sum for them. A   reason for that existed then which did not
                  exist now. It was necessary in order not to   interfere with the
                  apparent but delusive symmetry of the plan as to subsidies. That
                  symmetry was destroyed when it was agreed by   the
                  delegates to give fixed subsidies of varying   amounts to the four Provinces
                  not in proportion to their populations. These special subsidies would amount to 5
                  1/2 cents per head for   Ontario, 6
                  cents for Quebec, 18 cents to Nova   Scotia, 19 cents to New Brunswick, and
                  the   special subsidy now proposed to be given to   Newfoundland would be
                  28 cents per head  
                  
                  
                  of the population. If fair to Newfoundland let   a much larger sum than even
                  28c per head be   given, as special subsidy, but he objected to   its
                  being given under the guise of a sham   bargain, to buy lands which we did not
                  want,   which, to the Newfoundland Government itself, were a
                  source of annual expenditure   instead of income, and would be still more so
                  when managed from this distance. The argument of necessity
                  was used by the President   of the Council. That hon. gentleman said it  
                  was absolutely necessary we should have   Newfoundland, and the logical result
                  of that   would be, as necessity had no law, that we   would have to take
                  her own terms, whatever   they might be. He (Mr. Blake) apprehended   that
                  if there was any necessity in the case,   it was just as necessary for
                  Newfoundland to   have her fortunes united to the Dominion as   it was for
                  the Dominion to get Newfoundland.   He considered it not necessary, but of
                  high   consequence to the future of the Dominion   that Newfoundland
                  should be brought into the   Union; yet not however of so high consequence as that
                  we should agree to unreasonable
                  demands, if unreasonable demands should   be made; of not so high consequence
                  as that   we could not afford to wait until reasonable   propositions
                  should be submitted. He did not   say that these demands were unreasonable. He
                  was simply pointing out that it was their   duty to ascertain whether
                  they were reasonable or not, before acceding to them. The  
                  following figures showed what he understood   would have to be paid annually by
                  the Dominion for Newfoundland:—Subsidy, at 80c   per head on a
                  population of 130,000, $104,000;   special subsidy, $35,000; Interest on debt
                  at   5.23 per cent, $73,220; Five per cent allowed   on the balance, by
                  which the debt fell short   of the proposition of the other Provinces,  
                  $110,505; annual payment for Crown Lands,   $150,000. These sums amounted to
                  $472,725,   all cash payments. Besides these, there were   the charges for
                  the services which the Dominion performed ordinarily, and which it
                  would have to perform for Newfoundland,   amounting, he estimated, to
                  $165,000, which,   added to the other sum, made a total of   $637,725 per
                  annum. He thought it might   safely be said that the charge to the Dominion
                  on account of Newfoundland would be between $600,000 and
                  $650,000. Now from any   statements he had seen as to the revenue he   did
                  not anticipate that Newfoundland after   she entered the Union would produce
                  an   amount of revenue in any way approaching to   $600,000. A
                  considerable proportion of the   goods on which duty was now paid Would be
                  supplied from the other Provinces, and though  
                  
                  656
                  COMMONS DEBATES
                   June 8, 1869 
                      that would be an advantage to their trade, the   revenue of course,
                  would correspondingly decrease, and the Finance Minister would not
                  have at his disposal the convenient mode of   equalizing the revenue and
                  expenditure which   the Government of Newfoundland now exercised, by adding 30 per
                  cent to the duties when   it suited their
                  discretion. The Finance Minister   said that last year the revenue was
                  estimated   at $450,000, and actually reached $600,000.   But how was this
                  affected? By the simple   process of adding 30 per cent to the duties. He
                  thought it could not be doubted that in carrying out this
                  bargain the Dominion would have   to pay a very large sum in excess of what it
                  would receive. If his hon. friend could show   him that those figures
                  were not correct, and   that the arrangements were of a better character than he supposed,
                  no one would be   more delighted to be
                  convinced of that. He   could see, however, no such pressing necessity for the junction
                  of Newfoundland as to   justify us in the
                  present state of our finances,   in making a bargain, by which we would  
                  have to pay a much larger sum than we would   receive; a bargain by which we
                  would pay a   large sum in order to bribe Newfoundland to   join us. He
                  should like the Finance Minister   to deal with these figures which made out a  
                  
prima facie loss on our part, and if he could
                  not set them aside to show why we should   encounter that loss. He (Mr.
                  Blake) was prepared to encounter some reasonable degree of  
                  loss. He wanted to be liberal towards Newfoundland, but he did not
                  want that liberality   to assume so gross a form, as that it could be  
                  said that we had bribed and bought that   Colony. (Hear, hear).  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said the figures he was   about to submit he
                  hoped would show that we   were not buying Newfoundland, but were   merely
                  carrying out a fair arrangement with   that Province. Foregoing for the
                  present the   consideration of political and national advantages which we would derive
                  from the admission of
                  Newfoundland, he would only   trouble the Committee with figures bearing  
                  on the points adverted to by his honourable   friend who had just sat down,
                  and by the   member for Westmorland, who stated that all   we would
                  receive from Newfoundland, after   the Union, would be about $300,000, while
                  we   would have to pay about $600,000. Now, what   were the facts as to
                  the revenue? He would   show what had been the Customs revenue   during
                  the last eight years, under lower rates   of duty, except in 1868, than now
                  existed in   Newfoundland, and lower also than the rates   that would be
                  imposed under the Dominion  
                  
                  
                  tariff. The average Customs revenue for the   five years from 1860 to 1865, was
                  $582,000;   in 1866 it was $588,000; in 1867, $554,000. In   1868 the
                  total revenue was $634,000, of which,   perhaps, $25,000 was miscellaneous
                  revenue.  
                  
 
               
               
               
               
               
               
                  Mr. Mackenzie—That included the amounts   under the
                  sewerage and water rates, which   will not come to the Dominion.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said the hon. gentleman was   mistaken.
                  These amounts did not come under   the Consolidated Revenue of the country.
                  The   question then came to be how much of the   revenue we would lose,
                  although the House   would hardly agree with his hon. friend that it   was
                  altogether loss if the revenue were diminished in consequence of
                  our furnishing Newfoundland with $2,000,000 or $3,000,000 worth
                  of our manufactures, our butter, cheese, flour,   oatmeal, peas, &c.,
                  which would go in free of   duty. What we might directly lose in revenue  
                  would be more than made up to us by the expansion of our trade,
                  and our finding an additional market for our surplus products. He
                  did not think, however, that the revenue   would fall from $600,000 to
                  $300,000, as   alleged by the member for Westmorland.   That could not
                  well be when the rates of   duty would be higher on cottons, woollens,  
                  rum, gin, whiskey, brandy, sugar, molasses,   tobacco, etc. On tea, also,
                  there was a small   difference on certain kinds. From the most   careful
                  estimates he had been able to obtain,   he believed that for some years to
                  come they   might expect to receive $500,000 in the way   of revenue.
                  Coming to what we would have to   pay on account of Newfoundland, he considered the
                  member for West Durham rather   over-estimated the
                  amount when he placed it   at $637,000. The following were the figures  
                  which he (Mr. Rose) had before him. Newfoundland would receive,
                  1st Interest on the   amount by which its debt falls short of the  
                  average per head of Nova Scotia and New   Brunswick say $115,000; 2nd. 80
                  cents per   head on 180,000 population, $104,000; 3rd.   The Grant for
                  Crown Lands, $150,000; 4th.   The Special Grant in aid of legislation and
                  government, $35,000; total $404,000. The   Dominion would pay the 80
                  cents per head,   $104,000; Crown Lands. $150,000; special   grants,
                  $35,000; interest on debt first to public, say $60,000; 2nd balance
                  payable to Newfoundland, say $115,000; together $175,000,  
                  payable by the Dominion for services enumerated in the 10th
                  resolution say $150,000;   tota1, $614,000. His hon. friend from Durham  
                  
                  658
                  COMMONS DEBATES
                   June 8, 1869 
                      had estimated the Dominion expenditure at   $165,000, instead of
                  $150,000 which he (Mr.   Rose) thought would cover the amount.  
                  
 
               
               
               
               
               
               
                  Mr. Mackenzie said Mr. Blake[']s estimate of   the interest
                  on the balance debt was less   than Mr. Rose[']s, being $110,000 in place of
                  $115,000, but his estimate of interest on the   actual debt due to the
                  public was greater   than Mr. Rose[']s, being $73,220, intead of   $60,000.
                  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said the $60,000 would be   about the
                  interest on the debt of $1,400,000.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Blake—My calculation was at 5 2/3 per   cent.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said the Dominion undertook   to pay
                  interest on that debt, be the rate   higher now; but he really thought that on
                  an   item of this kind they need not have much   discussion. The were
                  merely carrying out the   principle which entered into the arrangements with all the
                  Provinces that the Dominion
                  should pay the actual interest on the   existing debt to a certain amount, and
                  five per   cent on the balance required to make up   what was considered a
                  fair proportion of the   debt. Well, he had stated the payments at  
                  $614,000, and the probable revenue at $500,000. He did not say
                  that they would make   up the whole difference out of the Crown   lands
                  and mines, but he thought they might   reasonably expect some profits from them
                  directly, and very large indirect profits from   the development of the
                  mines. But be that   as it might, an important question to be considered was how Newfoundland
                  stood with   reference to this
                  arrangement. He took it   for granted no one would desire Newfoundland to come in
                  except on terms which would   enable her to
                  work satisfactorily in the Union,   and he believed he could show that the
                  sums   she would receive from the Dominion would   be no more than were
                  necessary to enable   her to provide for her local services. The   member
                  for Westmorland estimated that the   local services would require $300,000. He
                  (Mr.   Rose) considered that by a fair and liberal   estimate $400,000
                  would be necessary, and,   as he had shown, $400,000 would be provided.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Blake—Some $7,000 or $8,000 are   received for
                  license fees, at any rate.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said when he stated none at   all, he meant
                  they were of insignificant   amount, certainly not reaching $20,000. He  
                  was just now informed by the Receiver-   General of Newfoundland
                  that they could not   reach anything like that amount. The aggregate of local expenditures
                  would scarcely fall   short of $300,000, besides
                  $100,000 for roads,   bridges, piers and breakwaters.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Smith—My estimate of $300,000   included the
                  expenditure for roads and   bridges, for which I put down $80,000.  
                  
 
               
               
               
               
               
               
                  Mr. Young—If the Finance Minister has the   details, it
                  might be as well to give them.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said the details were, to a   certain
                  extent, conjectural; and if they entered   into a minute discussion of them,
                  the particular statements might perhaps be unfairly   used
                  against the hon. gentlemen now with us   from Newfoundland when they went to
                  their   elections.  
                  
 
               
               
               
               
               
               
                  Mr. Blake—How can we get at the general   result without
                  the details?  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose said, when their estimates   came within a
                  few thousand dollars of each   other, he thought he might claim the fulfilment of his
                  hon. friend[']s pledge, that he was   prepared to
                  deal with the proposition in a fair   and liberal spirit towards
                  Newfoundland. 
                  
 
               
               
               
               
               
               
                  After recess,
                  
                  
               
               
               
               
               
               
                  The House went again into Committee on 
                  
                  the Newfoundland resolutions—Mr. Harrison 
                  
                  in the chair. 
                  
                  
               
               
               
               
               
               
                  Hon. Mr. Rose said he thought it would be   more
                  convenient to give the figures applicable   to each resolution as it was
                  reached, instead   of giving the entire results, which must be to   a
                  large extent, conjectural. The two important   questions were, what was the
                  Dominion prepared to give, and what was Newfoundland  
                  prepared to receive? The answer to these   questions was that the Dominion
                  should give   what would be in excess of the requirements   for local
                  services, as anything like municipal   or direct taxation would be out of the
                  question, under the circumstances of the population   of
                  Newfoundland. The amount that would be   required by Newfoundland to carry on
                  its  
                  
                  660
                  COMMONS DEBATES
                  June 8, 1869  Local Government would be in the
                  vicinity   of $300,000, exclusive of the amount for roads   and bridges,
                  piers, breakwaters, etc., which   was about $100,000 more. The $300,000 was
                  thus made up: Education, $66,000; police,   $36,000; Legislative
                  contingencies, $27,000;   Lunatic Asylum, other asylums and relief of  
                  the poor, $90,000; Departments of the Colonial   Secretary, Treasury, Board of
                  Works, Attorney   General, and Registrar, $18,000; repairs on   public
                  buildings, $3,000; pensions, $9,000;   printing, stationary and postages,
                  $5,000; gas,   night police, &c., $5,000; coroners and administration of justice,
                  $20,000; agricultural societies, $2,000;
                  contingencies of the Lieutenant-Governor[']s office, insurance on
                  public   buildings, &c., $4,500. These made a total of   $286,000,
                  which was in the neighbourhood of   the sum he had mentioned. The amounts
                  which would be paid by the Dominion, as   he had formerly stated—for the
                  80 cents-a-   head, special subsidy, 5 per cent on the balance
                  of the debt, and special expenditures undertaken by the
                  Dominion—would be $404,000.   Adding the interest on the present debt, and
                  the $150,000, for Crown Lands, the total   payment by the Dominion would
                  be $610,000.  
                  
 
               
               
               
               
               
               
               
                  Hon. Mr. Anglin did not feel any desire to   higgle about
                  any terms which Newfoundland   might make, or any advantages which might  
                  be conceded to them; but the land transaction   for which the Dominion was
                  asked to pay   $150,000 a year was absurd. Let Newfoundland   keep her
                  land, and collect her revenues by   all means. The Dominion did not need it.
                  Basing his calculations on the estimates formerly needed for
                  the local services, he believed   that instead of paying $140,000 we would,
                  within twelve months after confederation,   have to vote $160,000 or
                  $200,000 for these   services. In all he calculated that the expense would be $625,000.
                  That would be the   expense of the Colony to
                  Confederation, not   including additional legislative expenses. For   all
                  this we would receive at the most a   fraction over $400,000, so that we would
                  really   pay $250,000 a year more than we received   from this Province.
                  What he complained of   was that unfair terms should be given. He   would,
                  however, support the resolutions,   believing that it would be better to
                  complete   the Union. As to the land, he would again   say, by all means
                  let Newfoundland keep her   land. If she wants to get rid of it, perhaps the
                  great Ontario Ship Canal Company might get   it to advantage.
                  (Laughter.)  
                  
 
               
               
               
               
               
               
                  Mr. Bodwell thought the information   brought down very
                  meagre and unsatisfac
tory.
                  The Finance Minister gives detail, approximates to some other
                  detail, and then   asks the House not to discuss the scheme too   much.
                  He, (Mr. Bodwell), thought it absurd   to ask the House to go blindly into
                  this scheme   lest the discussion might effect the scheme   adversely in
                  Newfoundland. What was the   meaning of that proposition? Was it that they
                  should lend themselves to practice deception   on the people of
                  Newfoundland in order to   induce them to enter the Confederation? Such  
                  a proposition was as monstrous as that by   which they were called on to give
                  $150,000 a   year for the land of Newfoundland. From all   he could gather
                  these lands were of little   value as mineral lands, and agriculturally  
                  they were worth little or nothing. The real   question was, is Newfoundland
                  taking the   value of its imports, revenue &c, worth to   the Dominion
                  what it is proposed we should   give for it? If it is, we ought to accept the
                  offer made; if not, we ought to reject it. The   question was not so
                  much what Newfoundland   required, but what the Dominion required.   The
                  land proposition he regarded as especially   deceptive and absurd. Although he
                  would not   oppose the resolutions, he felt that insufficient  
                  explanation had been offered. Before the   scheme finally passed, he hoped that
                  more information would be given, and the land grant   would be
                  struck out.  
                  
 
               
               
               
               
               
               
                  Sir George E. Cartier said that with the exception of $5,000 subsidy, Newfoundland was   now seeking admission
                  into the
                  Union on   the terms offered her in the Quebec Conference.
                  Hence the question was not in fact one   susceptible of much discussion. There
                  was a   bright and dark side to the picture, and certainly it
                  could not be said that the Finance   Minister had altogether pointed out the
                  bright   side. He (Sir George E. Cartier) would not look   at the dark
                  side, as spoken of by the member   for West Durham. That honourable gentleman spoke
                  as if he were not bound by the   Quebec Scheme,
                  because he had not been in   Parliament then. He was certainly a prominent
                  public man in Ontario then. He was a member of the party led
                  by the Hon. George   Brown, and still belonged to that party, and   that
                  honourable gentleman, it was well known,   had taken a prominent part in the
                  Quebec   Conference, and wished to unite Newfoundland in the
                  way now proposed for that action.   The member for West Durham was, as a  
                  member of the party represented by Mr.   Brown to a certain extent
                  responsible, and   could not now deny that responsibility. As to   the
                  falling off of the customs with Newfoundland, which had been
                  predicted, suppose  
                  
                  662
                  COMMONS DEBATES
                  June 8, 1869  it did take place, what then? Simply
                  that   what we would lose in customs our manufacturers must
                  gain. So it would be with the   excise. The fact was that as Newfoundland
                  went ahead and increased in population so   would we. Our wealth must
                  instantly grow   with this addition, but even if we did lose   $100,000 or
                  so a year, what was that with   the results which might be expected from  
                  the acquisition of an island in so important   a position—one forming a very
                  material link   in that chain of Confederation which it should   be the
                  wish and glory of all to complete.   (Cheers.)  
                  
 
               
               
               
               
               
               
               
                  Mr. Oliver was strongly in favour of completing the Confederation of the British North   American
                  Provinces; but he
                  thought too much   was being paid for this acquisition of territory. It was clearly
                  shewn that for the privilege of annexing
                  it we would have to pay   from $110,000 to $200,000 a year, part of which
                  was occasioned by a ridiculous land purchase.   If that land was good it
                  were better by far   that the people of Newfoundland should keep   it
                  themselves, and if it were bad it certainly   could be of no use to the
                  Dominion; and it   would be good policy to leave it with the Islanders to manage and
                  give them a subsidy.  
                  
 
               
               
               
               
               
               
                  Mr. Mills.—We have been told by the   Minister of Justice
                  that these resolutions are   intended to give effect to the terms agreed  
                  upon at the Quebec Conference; that we are   pledged to the resolutions of
                  that Convention, and that we are not at liberty to enquire  
                  into the fairness of the terms. I, sir, entirely repudiate any
                  such doctrine. The   Legislature and delegates of Newfoundland   have
                  repudiated it. They rejected the Quebec scheme. They refused at
                  the time to   accept the union upon the terms agreed upon   by the
                  delegates at Quebec. Their Legislature recently proposed other
                  terms, and the   resolutions now before the committee propose   other
                  terms. (Hear, hear.) Let me ask ministers how they can for a
                  moment pretend   to argue that we are tied hand and foot to   the terms of
                  the Quebec Convention, while   they and the Newfoundland delegates have  
                  in the interest of Newfoundland ventured to   propose something more? (Hear,
                  hear.) What   are the facts? It is well known that the   demand for
                  Confederation grew out of sectional difficulties in the Government
                  of   Canada; that Upper Canada demanded constitutional changes
                  to prevent the imposition of local laws against the wishes of
                  a majority of her representatives; to prevent   a wasteful expenditure
                  of public monies;  
                  
                  
                  to prevent an unfair distribution of the revenue to which she so
                  largely contributed.   (Hear, hear.) Well, sir, it is not at all surprising if to
                  attain this end, and to correct   what she
                  believed to be great abuses, her   delegates were ready to make liberal
                  concessions to the other Provinces. Confederation   is an
                  accomplished fact. Ontario has control   of her own local affairs. The reasons
                  which   excused, if they did not justify, the liberal   terms proposed in
                  the Quebec Convention,   no longer exist. (Hear, hear.) We are as   terms
                  proposed in the Quebec Convention,   little trammelled as were the delegates
                  at that   Convention; and we are bound by every   consideration of public
                  duty to consider the   terms submitted to us upon their merits. The  
                  gentlemen who formed the Quebec Convention had long been connected
                  with public   affairs. They were no doubt able men; but   they had been
                  connected with a system of   Government very different from the one they  
                  proposed to adopt. I am doing them no injustice when I say that
                  although they may   have had some general knowledge of the   external
                  features of the federal system, they   were totally unacquainted with its
                  internal   organization and with many of its vital   principles; they were
                  not aware of all the   changes and modifications the new system  
                  necessitated in the old. (Hear, hear.) This   is abundantly verified in the
                  anomalies and   contradictions in our system. Already our   short
                  experience has brought many defects   under our observation, and it appears to
                  me   it would be the height of folly to throw   away the experience we
                  have acquired, abdicate the right to judge for ourselves, and
                  adhere without a pretence of reason to what was   done in
                  great haste, under great pressure, five   or six years ago. (Hear, hear.) The
                  terms proposed in these resolutions is a proposal that  
                  Newfoundland shall come in with a debt of   $6,500,000 with the chance of
                  having her   general subsidy increased from $104,000 to   $320,000 a year.
                  If Ontario were allowed   the same amount instead of coming into the  
                  Confederation with a debt of $35,000,000 she   would enter with a debt of
                  $100,000,000.   Now, sir, I do not propose we should deal   niggardly with
                  Newfoundland. I admit she   is entitled to a much larger amount than the  
                  Provinces now in the Dominion. In addition   to the debt with which the
                  Provinces now in   the Dominion entered it a debt has been incurred on behalf of the
                  Intercolonial Railroad,   and the faith of the
                  Dominion is pledged to   the enlargement and deepening of the canals.  
                  (Hear, hear.) The cost of these works must   be considered a part of the debt
                  of the Do
                  664
                  COMMONS DEBATES
                   June 8, 1869 
                     minion, and Newfoundland so far, is entitled   to have an equivalent
                  allowed her. The   Minister of Militia and the Minister of Finance have spoken of
                  the large amount of   revenue collected in
                  Newfoundland—being   nearly five dollars 
per
                     capita. How much of   this is collected on breadstuffs that will pay
                  nothing after Confederation? Newfoundland   imports nearly everything
                  she consumes.   Every thing imported pays a high duty and   if that
                  intercolonial trade springs up of which   the Minister of Finance has spoken,
                  the revenue collected there after the union must   greatly
                  diminish. (Hear, hear.) Now it was   the bounden duty of the Minister of Finance,
                  in coming down to the House to   show what amount of
                  revenue would be collected there under the Canadian tariff. He
                  has told us Newfoundland imports largely,   fiour, beef, butter and
                  biscuits, which in   future she will purchase from Ontario; that   she
                  purchases a large quantity of woolen   goods, and these she will buy from the
                  Canadian manufacturers. Well, sir, admit this   and what
                  follows? Why, that upon a large   portion of her imports, upon which now a
                  duty is paid, no duty in future will be collected, and by so
                  much the revenue of Newfoundland is diminished. (Hear, hear.) What
                  of that, asks the Minister of Militia, if the   people of Ontario find a
                  market for their   breadstuffs? They can afford to pay. Well,   sir, I
                  confess this is a new doctrine in political   economy. There is to be no duty
                  on breadstuffs. If the people of Newfoundland can   buy flour
                  for less in Boston than in Montreal   they will buy in Boston. They will buy
                  where they can buy cheapest; there is to be   no restriction. Now, who
                  does that benefit;   is it not the people of Newfoundland? The   doctrine
                  of economists is that restrictions on   trade increases prices to the
                  consumer. The   removal of such, then, must benefit Newfoundland. Why then should
                  we, of all the   world, be compelled to pay ten
                  or fifteen per   cent, for the privilege of trading? (Hear,   hear.) My
                  honorable friend from West Durham   has conclusively shown that we must pay,
                  under the proposed system to Newfoundland an   amount
                  largely in excess of what we receive;   and as yet nothing has been said to
                  justify   such a proceeding that will bear a moment[']s   examination. As to
                  the trade in coarse   woollen goods being diverted to Canada. I believe that will
                  prove entirely illusory and for   reason that I
                  shall not at this moment discuss. I shall ask the committee for a
                  short   time to consider the effect of the fifth resolution. It
                  is proposed to assume the Crown   Lands of Newfoundland, which at present 
                  
                  
                  yield a revenue of one half the cost of management, and pay
                  $150,000 a year for the   privilege. This, it is said, was agreed upon  
                  at the Quebec Convention. Be it so. It is   not the less a monstrous
                  proposition. (Hear,   hear.) No one believes the land valuable.   Why then
                  is this done? Why, sir, to deceive   the people. To pretend to have received
                  value   for this $150,000 a year when no value has been   received. Let
                  gentlemen be manly in this matter. Let them have the courage to do
                  openly   what they propose to do covertly. Let them   give the true reason
                  for what they do instead   of using this matter of the Crown Lands, and  
                  they will not add moral cowardice to other   wrongs. If the lands of
                  Newfoundland were   worth the money, it would still be an objectionable acquisition.
                  Why should we hold and   control lands in one
                  Province? (Hear, hear.)   Suppose them fit for settlement what would   we
                  be obliged to do? Why, sir, we would seek   to encourage emigration, not to
                  the whole Dominion, but Newfoundland. We would in the  
                  interest of Newfoundland become the rival of   all the other Provinces. We
                  would make free   grants there to actual settlers. We would establish a homestead
                  law. We would be at the   expense of surveying, building
                  roads and constructing bridges, at the expense of the Dominion, and pay Newfoundland
                  $150,000 a year for   the privilege?
                  (Cheers.) There are numberless   difficulties connected with such an
                  arrangement apart from its monetary features that I   shall
                  at a future stage consider. We are told   by the honorable President of the
                  Council we   must take a broad view of the question. It is   unworthy this
                  great Dominion treat this as   a matter of money. Sir, I was pleased to hear
                  such a patriotic sentiment from the President   of the Council. I
                  assume, I think I am justified   in assuming, that he is about to take a new
                  view of the Nova Scotia subsidy. I hope he   has learned to take a broad
                  view of that question and that he will not ask us to buy her  
                  good will. (Hear, hear.) I supposed, sir, he had   importuned the Government
                  for more money;   that he very nearly had Nova Scotia into   civil war for
                  more money, that he asked for   repeal, because Nova Scotia did not get more
                  money; that he deserted the Repeal party for   more money; that he
                  entered the Cabinet for   more money. (Cheers.) Well, sir, I am pleased  
                  he deprecates this way of viewing great   questions of state, and I hope we
                  may   be permitted to assume this to be a   withdrawal of Nova Scotia
                  pretensions. (No,   no from Ministers) I, sir, am ready to deal  
                  generously with Newfoundland, but I wish to   deal honestly with the people of
                  Canada. I   wish that they shall know the whole truth.  
                  
 
               
               
               
               666  COMMONS DEBATES
               
                  June 8, 1869 
                  
                  
               
               
               
               
                  It is not by dishonest concealment that we can 
                  
                  retain their respect. At the end of this century Newfoundland will still receive her
                  subsidy of 80 cents a head; Ontario will then receive less than 30 cents. Newfoundland
                  judges 
                  
                  and Newfoundland custom house officers are 
                  
                  receiving less than ours. As soon as they enter 
                  
                  the Union they will demand an increase. 
                  
                  (Hear, hear.) The Union to be lasting must be 
                  
                  mutually beneficial, and while I am most anxious to do to the people of Newfoundland
                  
                  
                  what will be fair to them, I will never consent to do a lasting injustice to every
                  other 
                  
                  portion of the Union. As yet the Ministry have 
                  
                  not made out their case. (Cheers.) 
                  
                  
                  
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Rymal said, that in considering these   resolutions,
                  it might be well to glance back at   the past, and when he remembered all that
                  had been predicted of Confederation, he was   forced to conclude that it
                  was not proving all   that its ardent admirers had expected. Indeed,   he
                  feared that the worst predictions made   by those who then opposed it, would
                  be fulfilled. The House should therefore be careful   as to the
                  admission of new Provinces, like   Newfoundland, into the Union; they would be
                  new partners in the firm, and it would be   well to scan closely what
                  they will bring in   as assets, and what they will take out.   (Hear,
                  hear.) The British America Act placed   the subsidies to be paid to Ontario
                  and Quebec at 80c. per head for all time to come, but   the
                  amount to be paid Nova Scotia and New   Brunswick was to augment until their
                  population increased to 400,000 souls; and besides   all
                  this the special subsidies gave 5c. per   head to Ontario, 6c. Quebec, 18c.
                  Nova Scotia,   44c. to New Brunswick, and now the special
                  subsidy to Newfoundland would be   about 30c. per head! (Hear, hear.) This was
                  a very unequal arrangement, and it might be   well to enquire what
                  Ontario loses under this   system. The subsidy to Nova Scotia would go  
                  on increasing for 9 years, which time would   elapse before her population
                  amounted to   400,000; that of New Brunswick would augment for
                  15 years, and he believed the sun   would never rise on the day that
                  Newfoundland would reach a population of 400,000.(Laughter.) He then showed that,
                  counting   the increase in the population
                  of Ontario, for   which no subsidy is allowed, that Province   lost the
                  first year of Confederation, $416,000,   will lose during the second year,
                  $499,000,   and so on until the amount would swell to  
                  
                  
                  $748,000 in the fifth year. But this was not   all they were defrauded of. On
                  the 5th year   the people not receiving subsidy in Ontario   would pay
                  about $2,000,000 to the revenue,   whilst at the same time it would take
                  several   years to get rid of New Brunswick, and as   for the
                  Newfoundlanders, we would never,   in this world, get rid of them. (Laughter.)
                  His   hon. friend, the Minister of War, had often   spoken of the
                  different elements which would   make Canada a great nation—the commercial,
                  agricultural and maritime. He had laid great   stress on the latter
                  element. But he (Mr. R.)   did not believe from the way things were  
                  being managed, that the Dominion was about   to become the first power in the
                  world; he did   not think they were about to play the most   prominent
                  part among nations. (Laughter)   He was opposed to the resolution before the
                  Chair, because we were asked to pay for   Newfoundland an extravagant
                  price. It would   not pay us to admit that Province on such   terms when
                  our finances were in their present   condition. The Finance Minister had to
                  request that no grants should be asked by   Ontario members from the
                  Government, the   exchequer was so empty, and although he   liked our
                  Eastern allies, he was not prepared   to allow them more than terms of
                  equality.   As an Upper Canadian he was not willing   that the interests
                  of that section should be   sacrificed. There was the Intercolonial Railway; of the
                  thirty millions required to build   that lien,
                  Ontario would pay one half itself,   yet not one solitary dollar would be
                  spent   within 400 miles of its border. (Hear, hear.)   Now, we were asked
                  to give $150,000 a year,   for all time to come, for the lands of Newfoundland, which
                  sum was equal to an expenditure of
                  $3,000,000 for them. The Government   which could make such a proposition to
                  the   House did not, he considered, possess an   undue share of modesty.
                  (Laughter and applause.) He thought the great leader of Upper
                  Canada (Sir John A. Macdonald) had forgotten   his duty at the Quebec
                  Conference on this   matter.  
                  
 
               
               
               
               
               
               
               
               
               
               
               668    COMMONS DEBATES
               
                  June 8, 1869 
                  
                  
               
               
               
               
                  Mr. Rymal—He would admit George Brown   controlled Upper
                  Canada then, but at the   same time he was acting under the Knight   of
                  Kingston. (Hear, hear.) He deprecated   departures from the Quebec agreement.
                  The   Member for Cumberland (Dr. Tupper) had   spoken last session of that
                  agreement being   quite fair and just to Nova Scotia, and that   it would
                  only be opposed by demagogues like   the member for Hants. (Laughter.) The
                  past   records of the latter gentleman had secured   him a place in his
                  (the speaker[']s) heart, and   he thought last session Mr. Howe had been  
                  animated by a love for his country. But   what would he say now? (laughter.)
                  He would   not hurl a shaft between the joints of his   harness, as he was
                  made familiar with Mr.   Howe[']s name and doings at his father[']s fireside during
                  dark days in Colonial history; but   he must,
                  nevertheless, say that last year he   thought that gentleman did not object so
                  much to Confederation on acount of financial   considerations as in
                  consequence of the liabilities of his country being rather many.
                  But   when he secured better terms, he had changed   his position to a
                  supporter of union, and he   (Mr. R.) was delighted with the change, but  
                  particularly on his friend[']s own account.   (Laughter.) We should consider
                  where all   these concessions were landing us. Our debt   was getting
                  oppressive. All the inventions of   the Minister of Finance were unavailing to
                  meet our necessities, and yet, day after day   the Government offered
                  fresh schemes of   expenditure. Financial ruin could not be   averted by
                  any country beyond a certain line,   and if ruin came to the Dominion he
                  believed   it would be financial. If we went on trying   to walk before we
                  could stand, to trot before   we could walk, and race before we could trot,
                  we would never become a consolidated and   great people. (Hear, hear.)
                  Poverty generally   fails to command respect and if by extravagance the Dominion became
                  poverty-stricken,   we would fail to command the
                  respect of our   neighbours. Mr. Rymal went on to say that   he had
                  proposed calling this his Financial   statement, (laughter) having a tendency
                  to   figures. He did not think the figures he had   given could be
                  contradicted—even Mr. Rose,   or his chief assistant, could not show them to
                  be wrong. He had taken a fair basis, and if   injustice had been
                  suffered by Ontario, and   also by Quebec to some extent, why seek   more
                  eastern allies to draw the last drop of   blood from us? The Member for
                  Cornwall   (Sandfield Macdonald) had given his views of   Confederation
                  before it was carried. He   would read a short extract from his speech.  
                  Speaking of the Coalition Government of that   day, that gentleman prophesied
                  they would  
                  
                  
                  use the name of the Queen to carry their   point, they would stigmatize as
                  traitors all   who opposed them, and after carrying their   point in
                  England, would probably come back   with high-sounding titles. (Laughter.) It
                  is as   true as if the Prophet Jeremiah had uttered   it. (Roars of
                  laughter.) The Hon. Premier of   Ontario had lately been canonized as a saint
                  —whether he deserved that title or not, in   the prediction he had read,
                  that gentleman   had certainly proved himself a true prophet.  
                  (Laughter.) A great deal had been said about   Confederation allaying
                  sectional difficulties,   but he feared these difficulties were being  
                  extended. There was, in some quarters, too   strong a liking for the loaves
                  and fishes—too   strong a desire to bring in the grab game.   (Laughter.)
                  The cow which gave the milk   would be often sought for. The Minister of  
                  Justice knew which Province was the cow.   He would soon know who were the
                  suckers.   (Much laughter.) The speaker then said he   would not give the
                  Member for Cornwall all   the credit, but would quote from another  
                  speech made when Confederation was before   the Canadian Parliament—that was
                  his own.   (Hear, hear) This quotation showed the   speaker had opposed
                  Confederation at that   time because they had no right to change   the
                  Constitution, because he wanted the question referred to the
                  people, because it discarded an Elective Legislative Council, and
                  because he believed it would not heal our   sectional difficulties. He
                  thought he then   struck the nail on the head, and that the   heavy
                  expenditure entailed upon the country   would not be made up by corresponding
                  advantages. He feared Ontario would suffer   just as new partners were
                  taken in, and that   that Province would not have one but several   small
                  Provinces clinging to her skirts. Mr.   Rymal resumed his seat admidst
                  applause.  
                  
 
               
               
               
               
               
               
                  Mr. Blake replied to some of the remarks
                  made during the debate. He said that the   Finance Minister declined to
                  say what the   result of this arrangement would be on the   income of the
                  country. Although the hon.   gentleman might quite possibly come to a  
                  conclusion, the hon. gentleman had not dealt   with that question, simply
                  because he was   afraid the result would be too alarming.   There could,
                  indeed, be no doubt but the   statement of the member for Westmorland  
                  was the correct one, and that was that the   Colony would cost us a quarter of
                  a million.   At present and for years past the Colony did   not pay its
                  expenses. Clearly it would be less   able to meet an enlarged expenditure, and
                  hence there must be a reduction in these expenses. He
                  maintained that in the present  
                  
                  670
                  COMMONS DEBATES
                  June 8, 1869  condition of the country, before being
                  generous it was necessary to see that we were just.  
                  (Hear.) As to the proposition that we ought   not to ask for details lest it
                  might embarrass   the delegates in Newfoundland, he implored   the House
                  to adopt no such proposition, to   allow the people of Newfoundland to see
                  this matter in all its details, and to prevent   as far as possible any
                  such adverse understanding as occurred in Nova Scotia. (Cheers.)
                  It was argued by the Minister of Militia that   he (Mr. Blake) was bound
                  by the resolutions   of the Quebec Conference, and that these   favoured
                  the present scheme; but he denied   the proposition. He denied that at this
                  distance of time any one was bound by these   Quebec
                  resolutions, and even if it were otherwise, still in many
                  important particulars the   present terms varied widely from the Quebec Resolutions.
                  (Hear, hear.) It was observed, as
                  had been argued by the Finance   Minister, that the House should confine itself to
                  discussing the resolutions without   going into
                  details. How the hon. gentleman   could expect the House to come to a general
                  conclusion without going into details passed   his (Mr. Blake[']s)
                  comprehension.  
 
               
               
               
                  Hon. Mr. Howe said that Newfoundland   had hitherto been
                  able to carry on her government on her own resources, and without
                  any help from abroad. Therefore she must   have considerable
                  capabilities, and he believed if she did not join the
                  Confederation,   she could continue as she had been; but the   other
                  Provinces wanted her for reasons of   State. No one would deprecate more than
                  himself the old rivalries between East and   West, and he hoped such a
                  state of things   would not be perpetuated in the New Dominion. Some twenty millions
                  of dollars were   about being expended in
                  connection with the   Intercolonial Railway, and the West would   have to
                  supply the breadstuffs and other   provisions required for the labourers on
                  this   work. Already under Confederation the Lower Provinces
                  had been large purchasers of   the flour of Ontario, and Newfoundland  
                  would henceforth do the same. The people   of Newfoundland would buy the
                  timber of   Canada, and build ships, and thus engage in   a new and
                  profitable branch of industry. It   was hardly worth while now, under the
                  circumstances, to bring up such objections as   he had
                  heard during the debate advanced   from the opposite side of the House.  
                  
 
               
               
               
               
               
               
                  Mr. D. A. Macdonald thought we were   asked to give too
                  much to this island. This   was more especially the case in the matter  
                  of $150,000 a year proposed to be given for  
                  
                  
                  the land; and no such terms would, he hoped,   be concluded with Newfoundland.
                  
                  
 
               
               
               
               
               
               
                  Mr. Killam seriously believed that if Newfoundland had to join the fresh-water Legislature of
                  the
                  Dominion, she would soon be   tired of it, and long for a return to her
                  saltwater experience, even though it were accompanied with small incomes.  
                  
 
               
               
               
               
               
               
                  Mr. Mackenzie said he was glad to congratulate the House on adding another to the   Confederated
                  Provinces. He
                  thought it to the   advantage of all the Provinces that the Union   should
                  be consummated at as early a day as   possible, based on such terms as would
                  not   occasion heart-burnings hereafter, and he   could not but
                  congratulate the House and the   President of the Council himself in being in
                  the right way. Some of the arguments advanced required a
                  little attention, and to   these he would address himself for a few  
                  moments. The Minister of Militia seemed to   think that the resolutions of the
                  Quebec Conference were binding for all time to come,   and
                  that there should be no departure from   them. He (Mr. Mackenzie) was quite
                  willing to coincide in that argument if the honourable gentleman made these resolutions
                  binding all round. (Hear, hear.)
                  While demanding that he should be placed in the   position of
                  obeying strictly these resolutions,   the Minister of Militia was himself
                  disobeying them by the very resolutions before the   House.
                  (Hear, and cheers.) There could be   nothing more illogical than the
                  honourable   gentleman[']s proposition. Did he imagine that   honourable
                  gentlemen were merely to accept   the dicta of the Ministry of the day, and
                  that   every argument was to be put down by a   reference to something
                  which happened years   ago. (Hear.) He could assure the Minister   of
                  Militia that he would take what course he   thought best with those Quebec
                  resolutions.   (Hear.) Some fallacious arguments had been   advanced
                  during the debate to which the   honourable gentleman (Mr. Mackenzie) next
                  drew attention. It had been urged that the   market to be opened in this
                  island would be   a great benefit to Ontario. He was not disposed to underrate the
                  advantages to the   Provinces or the Dominion arising
                  from the   opening of this market; but he might say   that he did not
                  anticipate that the result of   the Union would be to advance the interests
                  of the agricultural portion of the Dominion   one whit; but rather the
                  contrary. Again,   Canada affords but a poor market for Newfoundland produce, which
                  either goes to Europe or South America,
                  or the United States.   So far as the flour argument was concerned,  
                  
                  672
                  COMMONS DEBATES
                   June 8, 1869 
                      he did not see that the country would benefit   one farthing from the
                  abolition of the duty   on flour in Newfoundland; but, as had been  
                  stated, the reverse. (Hear, hear.) Hon. gentlemen seemed to take
                  it for granted that Ontario and Quebec were at a loss for a
                  market.   Such he would assure them was not the case.   In grain, what
                  they needed a market for was   coarse grains, and these were precisely the
                  articles not wanted in Newfoundland. Again,   the Finance Minister
                  argued that our woollen   manufacturers would get a market in this  
                  island, but his (Mr. Mackenzie[']s) impression   was that the bulk of these
                  goods would be   put on the market by those having an interest
                  in a return cargo from England. The   hon. gentleman indicated that on
                  concurrence he would indicate his views on some   matters
                  connected with the resolutions, which   he would not touch till then. At
                  present he   would merely say that, so far as he could   do so
                  conscientiously, he would aid in accomplishing the Union, but hold
                  himself as a   free agent in that matter, allowing himself   to be bound
                  by no conditions whatever.   Having replied at some length to the member for Westmorland,
                  and argued that New   Brunswick had no
                  reason for complaint as   to being unfairly dealt with in the arrangements under Confederation,
                  the hon. gentleman
                  closed by expressing his regret that, in   debating this subject, the House
                  had not been   in possession of full detailed information respecting the Colony about
                  to be annexed.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Rose referred to the tables of   exports from
                  Newfoundland, to show that the   amount of fish now exported to us was insignificant,
                  and there was therefore no foundation
                  for the argument of the member for   Lambton, with reference to return
                  freights.  
                  
 
               
               
               
               
               
               
                  Hon. Mr. Tupper expressed his gratification   at this
                  further step towards the consummation   of the great scheme which originated
                  at the   Quebec Conference. He took issue with the   member for West
                  Durham, when that hon.   gentleman asserted that the House was not   in
                  any way bound by the terms agreed to at   the Quebec Conference with regard to
                  Newfoundland. These terms had received the approval of the people throughout the Dominion,
                  and the terms now submitted
                  with reference   to Newfoundland were substantially the same   as those
                  agreed to by the Conference. The   action of the Conference was endorsed by
                  the   people, when the Ministry, at the subsequent   election, were
                  sustained by a great majority,   and, as part of the scheme so approved, it
                  was agreed that the Dominion should assume  
                  
 
               
               
               
               
               
               
               
               
               
               
               
                  the lands and mines of Newfoundland paying 
                  
                  a certain sum therefor: it was not now open 
                  
                  to this House to go back from that arrangement. The reason why this arrangement was
                  
                  
                  made was that Newfoundland had no sources 
                  
                  of local revenue, and it became necessary to 
                  
                  make special provision in this way for its local 
                  
                  services. He believed the mineral wealth of 
                  
                  that Island was very great and only wanted 
                  
                  the application of capital to be profitably 
                  
                  developed. Suppose it was possible to drive 
                  
                  a harder bargain with the gentleman representing Newfoundland, he did not think it
                  
                  
                  was desirable to do so, as it was very important that they should come into the Union
                  
                  
                  satisfied with the future opening up to them. 
                  
                  The member for Lambton had spoken of this 
                  
                  matter as a marriage. If so, if we were about 
                  
                  to make a matrimonial arrangement with this 
                  
                  fair bride of the ocean, we should not haggle 
                  
                  about the pin-money. He regretted to find the 
                  
                  strong Province of Ontario presenting the 
                  
                  View it had presented tonight. He thought it 
                  
                  could afford to take a more generous course. 
                  
                  Gentlemen from all the other Provinces had, 
                  
                  without hesitation, declared their willingness 
                  
                  to vote what was necessary to enlarge our 
                  
                  borders in the West by paying £300,000 for 
                  
                  the rights of the Hudson[']s Bay Company, and 
                  
                  whatever might be required to open up the 
                  
                  North West. The gentlemen from Ontario 
                  
                  should act in like spirit with regard to completing the Confederation on its eastern
                  
                  
                  borders. 
                  
                  
                  
               
               
               
               
               
               
                  Sir John A. Macdonald suggested that as   notice had been
                  given of amendments, further   discussion should be taken in concurrence tomorrow,
                  and that the resolution should now   be allowed to go
                  through Committee.  
                  
 
               
               
               
               
               
               
                  Mr. Mackenzie thought it would be too soon   to ask
                  concurrence to-morrow. The resolutions   as to the other Provinces could be
                  proceeded   with.  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
                  Mr. Mackenzie—There are plenty of other   Government
                  measures you might interject-  the Banking scheme for instance. (Laughter.)
                  
                  
 
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               
               674  COMMONS DEBATES
               
                  June 8, 1869 
                  
                  
               
               
               
               
                  Mr. Blake urged that as amendments were   to be proposed,
                  it was well that they should   not be proposed and proceeded with hastily.
                  
                  
 
               
               
               
               
               
               
                  Sir John A. Macdonald, in deference to the   views of
                  hon. gentlemen opposite, consented   to defer concurrence till Thursday. This,
                  in his   view, would also involve the postponement   of the resolutions as
                  to the other Provinces.   He would therefore propose to go on tomorrow with the Insolvency
                  Bill, and the   Criminal Procedure Bill.  
                  
 
               
               
               
               
               
               
                  The resolutions were then adopted and reported by the Committee. 
                  
                  
                  
               
               
               
               
               
               
                  The House adjourned at 12.20.