The amendments were read a second time
and agreed to.
SUPPLY
On motion of
Hon. Mr. Rose, the House
again went into Committee of Ways and
Means, on the ordinary resolutions on which
the Supply was based.
The following is the text of the resolutions:
1st. That towards making good the supply
granted to Her Majesty for the financial
year ending the 30th day of June, 1869, the
sum of $380,904.12 be granted out of the
Consolidated Revenue Fund of Canada.
2nd. That towards making good the supply granted to Her Majesty for the financial
903
year ending on the 30th day of June, 1870,
the sum of $14,205,016.68 be granted out of
the Consolidated Revenue Fund of Canada.
3rd. That it is expedient to provide that,
in order to enable the Consolidated Revenue
Fund to meet the charges placed thereon, the
Governor in Council be authorized to raise by
way of loan, with the guarantee of the Government of the United Kingdom, a sum of
money not exceeding $1,460,000 (ÂŁ300,000 sterling) on the credit of the Consolidated
Revenue Fund, being the sum voted to be paid
to the Hudson's Bay Company whenever
Rupert's Land is admitted into the Dominion;
and that such loan may be raised on such
terms, for such period, at such rate of interest,
with such sinking fund and subject to such
conditions as the Governor in Council may
think most advantageous, with the approval
of the Commissioners of Her Majesty's Treasury, and that such loan be a charge on
the
said Consolidated Revenue.
4th. That it is expedient to provide that,
in order to enable the Consolidated Revenue
Fund to meet the charges therein, the Governor in Council may raise by way of
loan on the credit of the said fund a further
sum not exceeding $1,460,000, being the sum
voted for the purpose of opening communication with the North-West Territory and
establishing a Government therein, and providing for the settlement thereof; and that
such further loan be raised on such terms,
for such period, at such rate of interest, with
such sinking fund, and subject to such conditions as the Governor in Council may think
most advisable, and that the same be a charge
on the said Consolidated Revenue Fund.
5th. Whereas, authority has been given by
the Act 31 Vic., Cap. 13, to raise by way of
loan the balance of ÂŁ2,000,000 sterling required for the Intercolonial Railway, not
yet
negotiated; and by the Act 31 Vic., Cap. 41,
to raise by way of loan ÂŁ1,100,000, which
may be required for certain works of Fortification; and by the Act 31 Vic., Cap.
48, to issue Dominion Stock to the extent of
the deposits made by Insurance Companies
under the said Act, and by the Act of the late
Province of Canada, 29 and 30 Vic., Cap. 10,
and the Act of the Dominion, 31 Vic., Cap
46, to issue Provincial notes to the extent of
the balance of the sum of $8,000,000 therein
mentioned; and whereas, over and above the
said loans, there remained on the lst day of
July, 1868, a balance of debentures, or other
securities, negotiable under the authority of
various Supply Acts, and under the Act of the
late Province of Canada, 22 Vic., Cap. 14, sec.
6, and under the Act of the Dominion of
904 COMMONS DEBATES June 21, 1869
Canada, 31 Vic., cap. 4, sec. 2, to the extent
of the sum of $8,380,925.55 (vide Public Account, 1867-68, statement 26, part 2nd, p. 42),
and whereas during the current financial year
a further amount of debentures has been redeemed, to the extent of $1,573,600, to
which
extent there is authority under the Acts above
cited for the issue of new debentures or other
securities,
Resolved,—That it is advisable that the
authority to issue new debentures or other
securities to the extent of the two last sums
above named, amounting in the whole to
$9,954,525.54 be cancelled and repealed, and
that in lieu thereof, in order to meet such
redemption and other charges on the Consolidated Fund, the Governor-in-Council may
raise by way of a loan, on the credit of the
said fund during the year ending 30th June,
1870, a sum not exceeding $7,000,000 over
and above the four special loans first above
enumerated, that is to say; the balance of
the Intercolonial Loan, the loan for Works
of fortifications, the Dominion stock to cover
Insurance Companies deposits, and the balance issuable of Provincial notes, together
with the two sums of $1,460,000 each for the
purchase and opening out of the North-West
Territories, as provided by the 3rd and 4th
of the resolutions.
6th. That if at any time the Governor in
Council shall deem it advisable to change the
form of any of the existing funded debt by
substituting one class of securities for another, the restriction as to the above
total sum of $7,000,000, which shall not be
exceeded in the year ending 30th June, 1870,
shall not prevent the issue of new securities
in the place of the old ones called in and redeemed, provided neither the capital
of the
debt nor the annual charge for interest shall
be thereby augmented.
7th. That the Governor in Council may
authorize the raising of the sums mentioned
in the foregoing resolutions by any of the
methods following, or partly by one and
partly by another of such methods, that
is to say, by the issue or issues
of Dominion stock or debentures or of exchequer bills or exchequer bonds, or by the
granting of terminable annuities, any of which
securities shall be in such form and be made
payable for such sums and bearing such rates
of interest not exceeding 6 per cent per annum, for or redeemable at such period of
time respectively as the Governor in Council
may deem expedient, and such provision
may be made for the creation of a sinking
fund for the payment of such loans and the
905
management thereof as the Governor in
Council may deem expedient; and all sums of
money so raised shall form part of the Consolidated Revenue Fund.
Hon. Mr. Rose explained that the Government took power in the resolutions to borrow
to the extent of $7,000,000, repealing all other
powers of borrowing conferred by previous
Acts, the object being to restrict the borrowing power to the Supply Bill of each
year.
Mr. Mackenzie did not see why the
Government should ask the power to borrow
with nine millions in the exchequer?
(Laughter).
Hon. Mr. Rose replied that it was required
for a special service.
Hon. Mr. Holton thought the Government announcement alarming, and implying
the possibility, if not the probability, of the
revenue falling short of the expenditure. It
was a strange proceeding after all the financial feats of the session. Mr. Holton
said
that before going into Committee, he intended to call the attention of the Government
to the fact that a very important Government measure had disappeared from the
Order papers on Saturday night. The House
had been repeatedly told that the Government were going to push this measure
through. He wished to know whether they
intended to keep faith with the House and
country in this matter; whether they intended resurrecting that order (laughter),
which they could easily do by a day's notice?
Sir George E. Cartier said the Government
were not under the necessity of doing this.
There had been three other notices on the
paper; and that afternoon the Government
would give the hon. gentleman an opportunity
of taking up the matter. (Laughter) .
Committee rose and reported the resolutions.
This individual participated in:
