TUESDAY, April 18th, 1865.
The report was received and adopted.
THE CROWN LANDS IN CAPE BRETON
Mr. MCDONNEL referred to the question of the
settlement of Crown Lands in Cape Breton which
had been discussed in the early part of the session,
and to the statement then made by Hon. Prov.
Sec., and the hon. leader of the Opposition, to the
effect that Cape Breton had been more highly favored than other parts of the Provinces
as regards
the terms upon which the payment of Crown
Lands was to be made—inasmuch as long credit
was given to purchasers in that Island, and the
moneys amounting from the sale of these lands,
were reserved for the opening up of roads.
He was rather surprised at the assertion at the
time, and he was induced to look into the question, and ascertain how the facts really
stood.- Upon referring to the law passed in 1859, for the settlement of Crown Lands
in Cape Breton, he found it enacted that the money arising from the sale of these
lands, was in the discretion of the Government to be appropriated to the opening up
of the roads in the Island of Cape Breton. In order to follow the matter up, he asked
the leader of the Government to lay upon the table & return all of the moneys derived
from this source since the passage of the Act. From that return it appeared that there
had been paid into the Re
274 PARLIAMENTARY DEBATES.
ceiver General's office $9,467 from the County of
Cape Breton, arising from the sale of Crown
Lands, while the sum contributed by that county
to the revenue of the Province, including amount
of outstanding lands, amounts to
$37,164, from
Inverness $27,138, Richmond $16,476, Victoria
$23,606.
And yet, would it be believed, that
altho' it is
five or six years since the law
was put upon the
Statute Book, there had not been a single cent of
the money appropriated either by
this or any
previous Government for the purpose pointed out
in the Act.
He had asked the Government for an
advance of
$8,000 which was absolutely
required for the roads
of the county he represented (lnverness) and
altho' there had been actually paid into the Receiver General's Office, from
that County since
the passing of the Act, the sum of $10,153,
which
after deducting therefrom the
cost of all surveys
made in the County since the Act, leaves a balance at this day of $6,049 in
the Treasury, yet
the Government have refused to give a single cent
for the purpose recommended in the Act. He
thought the House would agree with him that this
was not right. The Act referred
to was passed by
this Legislature—and that for
the purpose referred to. He could not suppose that it was in—
tended that it should remain a nullity upon the
Statute Book, and therefore desired to have it enforced. The hon. gentleman said he
had risen
for the purpose of contradicting the statements
made in the early part of this Session by
the hon. Prov. Secy. and the hon. leader of the
Opposition now sent broadcast by the hon gentlemen over the Province, that Cape Breton
enjoyed
all moneys coming from its Crown Lands, which
last assertion was not supported to the extent
of one cent. He also asked the Prov. Sec. what
the reasons of the Government were for not carrying out the provisions of the law,
and whether
the Govt. intended in the future, as in the past, to
treat the law as a nullity.
Hon PROV. SEC. was not sorry that this
matter
had been brought to the notice of the House. He
did not think that any reply was
needed from him,
as the clause of the Act to which the hon. gentleman had alluded, sufficiently answered
every
statement he had made.
He (the Prov. Sec.) was afraid that the remark he had made in debate, in a somewhat
jocular manner—that it was in the power of the
members for Cape Breton—by combining together,
to deal a fatal blow at the Government, had had
an unhappy effect. From the remarks that had
fallen on the previous evening from a gentleman
who had usually ranked himself as a supporter
of
the Government, and from the style of observations just made, he was
inclined to think that
there was a disposition on the
part of some of the
members for that Island to assume an attitude of
dictation to the Government. Now, he wished it
to be understood at the outset, that important
as
he considered it to be for the
Country, that the
present Government should
continue to occupy the
Treasury benches, and that the
Province
should enjoy for some time to come, the advanta
ges of so excellent a Government, yet he
had no
hesitation in saying, that he would rather resign
the position he held, and retire into the cold
shades of opposition, than yield to unfair dictation
from any combination of gentlemen. As regards
the complaint of the member from Inverness, he
had only to turn to the Estimates to prove that
no other part of the Province had received so
much consideration as the Island of Cape Breton,
and at no time had the members for that section
less cause to complain than the present.
Ever since he had the honor of a seat in
that
House, he had done his utmost to assist the members for Cape Breton, in their attempts
to obtain
for that Island that consideration which its importance deserved, and now after the
Government
had shown a disposition, which no previous Government had ever done, to deal liberally.
with its
wants, he would ask whether this was time, or the
occasion, for any gentlemen from Cape Breton,
least of all, for any one pretending to be a supporter of the Government, to assume
an attitude
of defiance and dictation.
The hon. Prov. Sec. here referred to the large
provision made in the estimates for the various
public services in Cape Breton,
and to the pledge
of the Government, that they would undertake
the construction of the wharf at
Port Hood, and
asked whether in view of all this, it was fair for
any member from that county, to complain of not
having received proper
consideration at the hands
of the Government. As regards the facts of this
case, he would say that the hon gentleman himself, was one of those who assisted in
breaking up
the system by which these monies were to be paid
into the Treasury, and which had the effect of
throwing the whole thing into confusion.
HON. PROV. SEC,—was under the impression
that he was a party to the arrangement, at all
events the law of 1859 was altered so, as to produce great confusion.
The hon. gentleman here read the act, and
said
it was the intention of the Government, to comply with its spirit and letter. They
intended as
they had already informed the members for Cape
Breton, to obtain reports from the Crown Land
Surveyors, as to the localities
most requiring aid,
so as to carry out the provisions of the law in
such a way, as would be best for
the interests of
the whole Province, as well as for the advantage
of the Island. The hon gentleman concluded by
regretting that he should be called upon to denounce in the terms he had done this
unfair attempt to prejudice the government in the eyes of
the people of Cape Breton.
MR. BOURBINOT, as far as he was
concerned,
denied the existence of any combination on the
part of the members for Cape Breton, and he was
not aware that this matter was
coming up. He
must do the Government the credit to say, that
they had done more justice to
Cape Breton than
any previous one, altho he was not, prepared to
admit that she had ever yet
received her just
rights.
MR. BLANCHARD was pleased to hear the assurance of the leader of the Government, that
PARLIAMENTARY DEBATES. 275
these monies were to be applied for the
purposes
contemplated in the act. He
thought that there
was no doubt that the object of the law was to
apply these monies to the opening up of roads
through the Crown Lands, the discretion left with
the Government was as to the time and manner
in which they should be applied.
He was therefore quite satisfied with the statements
made by
the Prov. Sec , and he thought that what he promised, was all that the members for
Cape Breton
had a right to ask.
The object of the members for Inverness
in
making the application they did, was not to supplement the road grant but to
apply the money
to open up roads through Crown Lands, which
was the legitimate purpose
contemplated by the
act.
The hon. gentlemen explained the object
of
making the alteration in the law,
alluded to by
the hon Pro. Sec. It was held
out as an inducement to settlers to take up Crown Lands, that
they would be able to pay for them by their earnings from the expenditure of the public
monies,
in the opening up of new roads ; but when the
three years specified as to the
time for payment
had rolled round, it was found that they were
unable to pay, and the time had
to be extended.
As regards the amount of justice that
Cape
Breton had received in the distribution
of the public
monies, while he was prepared to acknowledge
that the Government had dealt as liberally with
her as with the rest of the Provinces, he could
not admit that she was under very great obligations. According to population she had
just re—
ceived what she was entitled to, one-fifth of the
whole grant. This however was a distinct question, and depended altogether
upon the rights
which the law gave them, and he
was satisfied by
the assurance, that the Government intended to
carry out the provisions of the
statute.
HON. FIN'L. SEC. said that this was not a
question of justice to Cape
Breton, and the hon.
Prov. Sec had done perfectly right, in rebuking
the hon member for Inverness,
(Mr. McD.) for
placing it upon that ground.
He
thought that hon gentleman had no reason
to complain of the way in which
Cape Breton had
been treated, either in the distribution of the road
grant, or in any other branch of
the public services. While some counties had their road grants
decreased, almost every county in that Island
had
theirs increased.
He would go further then the hon. Pro. Sec.
had, and say that if the Government had acceded to
the demand of the member for
Inverness, and
supplemented his new road grant,
as he wanted
them to do, they would have acted contrary to
law. He thought that he ought to be satisfied
with the assurance that had been given, that the
Government intended to carry out the policy of
the law, as soon as they had received
the neces—
sary information from the Crown
Land Surveyor.
MR. S MCDONNELL was glad that the government had at length announced
the policy they
intended to pursue in this matter.
The hon. Pro.
Sec. had thought proper to intimate, that in
making
his remarks he was actuated by covert
motives.
He (Mr. McD.) did not think the course
that
hon. gentleman had thought proper to pursue in
reference to this matter was conducive to strengthen the relations that subsisted
between them,
as to add to the decorum which
should prevail in
that House. He had stood in his
place, in the performance of a duty he owed his constituents, he
had no private interests to serve, but he was simply demanding the rights which the
law gave
them. He most emphatically denied that Cape
Breton had received more than her
just share of
the public moneys, or that he had demanded anything more than the Government were
bound to
give.
MR. C J. CAMPBELL denied that there was
any combination on the part of the members for
Cape Breton. He considered it unfair for any
one to attempt to get up a feeling against
that
section of the Province. He pointed out the provisions of the act of 1859, and contended
that it
had not been carried out as originally intended.
He alluded to the Crown Lands' office, and considered that more energy should be infused
into
the working of that department. He pointed out
one or two cases within his own knowledge of the
way the business of the peuple
was impeded in
that office.
The
subject then dropped.
Railway Extension.
HON. PROV. SECY then moved the resolution for Railway Extension,
which he had
laid on the table some days previously. In
doing so, he stated that he did not intend occupying the attention of the house with
any
lengthy remarks, for the simple reason that the
policy that this resolution propounded,
and the
expenditure it involved, had been fully discussed, and had received the sanction of
a large
majority of the Legistlature. He would not
open the useless discussion whether the present mode of construction
railroads was the
best. Suffice it to say, that the Legislature
had
decided, after a great deal of discussion, to
construet Provincial Railways
by Provincial
funds. When that policy was propounded by
the house, it was in connection with a certain
scheme of railway extension — that certain
lines of communication should be carried out
under that policy, and the act
originally placed
on the statute book, and under which the first
mile of railway was put under contract,
provided for the extension of our railway system to
the borders of New Brunswick, to the Gulf of St. Lawrence, to the
Granville Beach on
the Bay of Fundy. The house would see that
the object was obviously to give to all the people in the different sections of the
Province, as
fully as was possible, the advantages of railway communication. The cost of railway
construction, however, in this Province proved
to
be worth so much more than was
anticipated
at the time the act was placed on the statute-
book, that it was found impossible to go on
with the policy as originally
laid down. At the
last session, however, the house decided to go
on to Pictou, and tap the Guld of St. Lawrence.
The Government, in bringing forward the act
for the construction of that railway, felt it was
their duty to the outlying sections of the country to lay down a policy which, without
burthening the Provincial funds, would,
at the
same time, give the facilities of railway com
276 PARLIAMENTARY DEBATES.
munication to the large, and populous,
and fertile counties of the west as originally contemplated when the railway system
was inaugurated. He need hardly say that the house had
been always ready to adopt any means by
which the Province might have a
railway communication with the neighboring Provinces
and States. Accordingly, the Government
last session brought forward a proposition
which they thought would accomplish, without
burthening our means, the two-fold object of
extending our road to the borders
of New
Brunswick and to the county of Annapolis in
the west. The resolution
authorized the Government to enter into contracts with companies prepared to connect
us with the railway
system of New Brunswick, at a cost not to exceed 4 per cent. for twenty years, on
a capital
of £10,000 a mile. At the same time they
offered 4 per cent. on a capital of £6,000
a
mile for the extension to Annapolis. The
surveys that had been made of these lines
had proved, they believed, that the resolution offered most ample
compensation to
any companies that might undertake the
work. Under the authority of
that resolution, the Government placed
themselves in
communication with parties who they had
reason to believe would be disposed to carry
out their policy, and the result of this correspondence has been to show that the
provision
offered was not quite sufficient.
The difference
in the terms, however, was so slight, as to warrant the house to carry out the policy
which
received their sanction at the
last session.-
He went on to explain that the terms on
which the offer of the
International Contract
company was founded, involved but a slight
addition to the terms sanctioned last year, being the cost of dredging the river Avon,
which
was estimated at £40,000, and the provision of
£100,000 of subscription for the
line to New
Brunswick. He believed that the affirmation
of the resolution would entirely do away with
the objections of the city of
Halifax to taking
the stock to this extent, but assuming that this
sum had to be borrowed, it would only be an
increase of two per cent., the offer
of last year
being to the extent of four per
cent. As to the
route of the railway nothing could be now definitely said, and that matter would have
to be
decided by the government upon a careful examination. He said that the
debt of Nova
Scotia was fixed by the delegates who represented the government at the Quebec Conference
at eight millions in
consideration of the
resolution of last year in
connection with railways. That increase to eight
millions would
have given the means to complete the Pictou
and Western line, leaving the Intercolonial
road te be dealt with by the government, but
assuming that the colonies were to remain as
at present the burthen entailed for the extension would not be more than
£28,000 for the
trunk line, and £23,000 for
the western line, including the cost of bridging the
Avon, or about
£50,000 per annum. He thought
there could
be no doubt that the proposed extension would
give us such an increase of trade and revenue
as would compensate for the expenditure
involved. He expressed surprise at the opinion
enunciated on a former day to the
effect that
railway construction should be
undertaken
by
the government, by Mr. Killam,
who had long
been laboriously maintaining the doctrine that
such
construction
should be left to foreign capi
talists and companies. He was glad to find
that that gentleman's confidence in the government was so extended. He thought, however,
under existing circumstances, it was not advisable to prevent these capitalists who
were desirous of constructing our railways coming
in and expending their capital.
Mr. KILLAM said that it had always been
his desire whenever the question
of railway
extension was before the Legislature
to express such opinions as he thought favorable to
the prosperity of the Province. When the construction was commenced he thought it
wise
that the matter should be left to companies, but
the other policy having been adopted he
thought it would be well for the government to
continue it in respect to the main Trunk line.
It was estimated that the existing line would
pay one per cent. above its working expenses,
and there was every reason for supposing that
the extended line would be still more profitable, while difficulties would be caused
by having the railway under two distinct managements. If the lines were expected
to pay four
per cent. which the Province had offered would
it not be well for the government to undertake
their construction and realize whatever profit
was to be made? He feared that by accepting
the proposal the province would at the same
time lose all the advantages that would arise
from the increased prosperity of the country.
Hon. ATTORNEY GEN. explained that the
government were to have the power at any time
to take possession of the railway by arbitration in the usual form. If we were to
hand
over the lines without giving
any control to
the government or legislature, then there might
be something in the argument of the hon.
member for Yarmouth. He believed that the
time had arrived when we should deal with
this question. New Brunswick was prepared
to build to our borders, and there was this gap
between Truro and Moncton which should be
built at once. Connection with
the railway
system of this continent was, as all would admit, most desirable, as it would promote
the
best interests of this province. If the government could build the line directly
out of the
provincial funds, it would be a
matter deserving of serious consideration,
but under existing
circumstances he was of opinion that it was
the wisest policy for us to accept the best terms
that were offered us by companies who were
ready to invest their capital in the country.
Mr. ARCHIBALD
alluded to the great importance of the subject under consideration,
and then went on to say that when the matter
was before the house last year, he had the misfortune to be absent, and therefore
had had no
opportunity of offering any
remarks upon it.——
Under these circumstances, he had listened to
the observations of the Pro. Sec. that day
with no little anxiety, for he was desirous of
knowing upon what grounds he asked the house
to consent to the very grave proposition which
was contained in the resolution now before it.
That hon. gentleman should have
shown how
the railways were to be constructed
without
crippling the resources of the country. He felt
exceedingly disappointed that the hon. gentleman had not adopted the course which
he
should have taken as a Colonial
minister, asking the house to incur such heavy liabilities.—
Now there was no one in the house who had
been a greater advocate of railways than himself—or was more committed to their extension
PARLIAMENTARY DEBATES. 277
within the limits of the Province. On some
occasions he had even gone ahead of the Administration for the time being.
In 1857 a resolution was moved in the house for the construction of the Pictou Railway.
On that occasion he had warmly advocated that scheme,
being then as now in opposition. The Government of the day, acting under the belief
of
what they considered most
judicious under existing circumstances, refused to accept the resolution; and, after
the calm consideration
which a few years had enabled him to give to
the subject, he had no hesitation in acknowledging that he thought they discharged
their duty
to the country on that occasion.
When last year an attempt to repeal the Intercolonial Railway act was made
by the government he had not hesitated to express in
the most emphatic terms his
views in favor of
communication between the
Provinces, and his
preference of that great scheme to even the
Pictou railway which was at the last session
under discussion. He would refer to his language on that occasion to show how warm
he had expressed himself on the subject.
" It appears," he had then said,
"according
to the opinions of the present
government of
this province that the terms
agreed to were too
burdensome for Nova Scotia.
The
Canadian
ministry have also taken the ground that the
burthen imposed upon them is too great. With
these opinions prevailing at the Nova Scotia
end and at the Canadian end, it
is obvious that
even if the act remained in force, the prospect
of an intercolonial line is
adjourned to an indefinite period in the future. Therefore I feel
that we can approach the subject
of a Pictou
railway in a very different spirit
from what
we could have done if there
were any hopes
from the legislature in reference to the intercolonial scheme. I have no hesitation
in saying
that in dealing with this
important question I
would not be doing justice to myself if I did
unequivocally state what policy I would pursue if the intercolonial project were feasible.
I consider the branch to Pictou is of sectional interest compared with the former scheme. It
would be a priceless boon to Nova Scotia, jutting out as she does 500 miles
on the path to
Europe, if we could have
consummated an undertaking which must. have made her the
wharf on which the traflic of two continents
would concentrate."
And
again, "I must fully confess in conclusion that it has been with no little hesitation that
I have given up so desirable a project as the Inter-
colonial railway scheme. I have always looked
at it as the precursor of that union
which has
so long been the hope of every intelligent man
who wishes to see the arena of
politics in this
province enlarged and ennobled.. I fear
very
much that the actions of the government
on the
present occasion has done very much to postpone the great intercolonial question.
I fear
we are giving away the chances of ever effecting that great work, but on the gentlemen
opposite rests the entire responsibility."
It would be seen,
therefore, that while he
did not hesitate to express the most unqualified
preference for the construction
of the Intercolonial Road, he had not attempted to disguise from himself or the house
that
the necessary effect of embarking in that scheme was in
his opinion to postpone to an indefinite
period
the construction of the Intercolonial Railway
on any
scheme which was then open to us,
or
could be opened to our unassisted
resources.
But not only was he interested in this
railway as a public man, and from Provincial considerations, but he was a representative
of a
county through which that road
must pass.—
Again, he was interested in a valuable mineral
property in that county, which would be exceedingly benefited by the completion of
this enterprize, provided the route selected should be
the one indicated in the proposals of the company and on the table of the house.
Therefore
it would be seen that not only his interests as a
public man and as a representative of the
county, but also his personal and private interests were at stake in this
matter. Therefore,
if he did not give his assent to
the present resolution, it could not be said that he was acting
from personal or selfish motives. He thought,
too, he could appeal to the
house to bear their
testimony, that during this and last session he
had not exhibited any spirit towards
the Government that would subject him
to the imputation of factious opposition to any measure,
but had a right to be considered as acting from
a desire to discharge what he believed to be
his duty to the people of this country.
He regretted that he had not all the
documents at hand which would enable him to
give that full information in respect to the
state of our finances which he was desirous of
giving. At the last session of the house a resolution was adopted, by which it was
determined that the financial year should end on
the 30th September instead of on the 31st Decr.,
so it was impossible to get the means of comparison between 1864 and 1865. A large
portion
of the liabilities which were chargable on the
year did not fall due till its end. He had, at
an early period of the session, asked for the requisite information; but the Financial
Secretary had not yet been able to hand him the documents which were necessary to
make the accurate comparison he wished; no
doubt, in the
hurry of the session it was difficult
for the officials to give all the information desirable.-
However, looking at the accounts as laid on
the table, he found that on the 30th September,
1864, the balance in the hands
of the Receiver-
General was $225,156 - a large amount, no one
will deny, to be in the treasury. The possession of this balance was nothing, if
at the
time
it was in the treasury we owed
the amount, or
a larger amount than these monies would enable us to pay.
Now it appeared by the statement submitted that at the very
time when this sum appeared to our credit we owed $276,000 for various services, so
with this sum
to pay, and
only $225,156 on hand to pay it with, we could
not be considered as having necessarily
a large
amount at our disposal. We had, it was true,
in the shape of assets coming
in, a considerable additional
sum, but as far as he could gather from the accounts there appeared to have
been borrowed from the Savings Bank $42,000,
and from Treasury notes $40,000, making
$82,000, which had gone to swell
the receipts,
and which, though actually borrowed money,
had been treated by the
Government as so
much revenue, and added to the balance at
their disposal.
He had been desirous or ascertaining our fiancial condition on the 31st Dec. last
and
therefore had asked for the amount of the revenue till that date. He
anticipated that there
must be a
falling off. It was impossible
to contemplate the condition of things
in the United
278 PARLIAMENTARY DEBATES.
States at this moment, and the effect that this
would necessarily have on our commerce-
it was impossible to view the panic which
was beginning to show itself in every branch
of business, and the necessarily diminished importations of the incoming year, not
to feel
that this would begin to show itself in the last
quarter of the year, and he had asked to see
the returns in the conviction that his anticipations will be realized.
By the returns the revenue of the year from
customs and excise amounted to $999,000. The
revenue of the December quarter was $306,491.
For the June quarter of 1862 it was $300,000.
So that in the last quarter of the year the increase over the corresponding quarter
of the
year before was only $3000. Compare that
with the 9 months preceding. The revenue of
that part of 1863 was $564,938, for 1864 it was
$692,818. So that the increase in the past nine
months of 1864 was $127,360, or at the rate of 23
per cent., while the increase of the last quarter
was only $3000, or 2 per cent. It was quite
clear, therefore, that the prosperity of the early
part of the year had not been kept up. That a
sudden and serious change had taken place,
which was an omen of the condition of the present year, and might be largely relied
on as indicating what we might expect, and the prosperity of the first nine months
continued to
the end of the year in the same proportion,
we should have had an addition to the
revenue of the quarter over what we actually received, of $63,000.—Now in 1863 we
contributed one third of our entire revenue
in the last quarter of the year.—This is
pretty much the fact every year, and therefore assuming that the trade of the whole
year were to fall off at the same rate, we
should have less by $109,000 than if our prosperity had continued uniformly as it
begun in
1863.
This is a very serious statement of matters,
and well claims our attention. I have asked
for the returns of the first quarter of the present year, with a view to continue
the comparison. I have not yet received them, nor does it
much matter. The importations of the first
quarter of any year are largely the result of accident.—They might be more or less
in any particular year without largely affecting the returns of the year, inasmuch
as they form altogether but a small part of our importations.
The main business of the year is conducted in
the Spring and Fall quarters.
Now what are the last terms referred to? I
have spoken of the panic in the United States
—that panic will be felt here. It will lead to
the interruption of our trade with the States.
Then there is a great depression in prices impending. The opening of the cotton ports
of the
U. States will bring down the prices of cotton
fabrics and diminish immensely the price of
cotton goods imported to this market. This
will react on the price of woolen goods, and
between the two your advalorem duties will
fall. Then agricultural produce is going down
in price. A friend of mine bought, the other
day, for the Cape Breton market a ton of butter for 12 1/2 cents a lb. This came
from the U.
States, where not long ago we were sending
our butter and getting three times the price for
it. Other articles of produce will fall, if not
to the same extent. The immense market
made by the fleet of blockade runners sailing
from Halifax is at an end.
The ability to buy, which the farmer derives
from a large and ready market for his goods,
has passed away, and our merchants will anticipate the change, and regulate their
importations accordingly. Then shipping and shipbuilding are both declining; freights
are low,
and the inducements to build are not great this
year.
Contemporaneously with all this, the market
was largely supplied with goods not intended
for it. The cargoes shipped from England to
the Southern States, and which recent events
had prevented from going there, were thrown
suddenly upon this market, and had to be sold
for whatever they would fetch. They of course
would be entered low, and thus would afifect
the advalorem duties, and diminish the usual
importations. Now, could any person of ordinary foresight shut his eyes to this concurrence
of events. Was it possible to anticipate that
the revenue could be maintained; and if it fell,
in what condition would we be found? Suppose we were to enter on this year as we
did
the year which followed 1854, would we be far
astray? 1854 was a year of plethoric revenue;
but it was followed by several successive
years of declining trade and falling income.
It would not be unreasonable to expect that
the receipts from customs and excise in 1865
would not much exceed $800,000. The revenue
after 1854 did not for many years reach the
figures of that year. Whether we collected
more than that in the ensuing year or not, he
was quite sure that we would not be justified
in making our calculations on a larger scale
for several years to come; and if that was
true, we should be unable to meet the appropriations we have made this year by an
enormous sum. But these appropriations, large as
they were, made no provisions for our new liabilities. Now, let us see what these
are: First,
there is the Pictou railway. This was estimated
at first to cost us $1,600,000. It was supposed
to be forty miles, at £10,000. The government
pass the bill before the road is created. It is
then measured; and forthwith ten miles or one-
fourth of the whole is added to the length and
cost. Then Mr. Fleming surveys the ground
more accurately, and finds it will cost 2 1/2 million of dollars to build it, and
somewhat more
to build and equip it. He is told, however,
that he must reduce his figures, and he does so,
and now tells us we may have a road for two
millions. Anybody, however, who knew how
immensely expenditures exceed estimates,
must be satisfied that if we get off for two and
a half million of dollars we should be fortunate
indeed. Now, as the contracts are to be completed in 1866, we are fully assured that
one
half the work will be done, and one half the
cost incurred in 1865. If so, we shall need to
sell debentures to supply what means we
require. Already we have had them in the
market for several months, and we have sold
£21,800 stg. or $109,000. Suppose we have to
make up the amount we shall require for the
year 1865, we shall need still to sell over
$1,000,000 in debentures during the present
year. How is this to be done? Our debentures
are now selling at 92 to 95 per cent. At par
they are worth, with the interest to date, £101
10s. So that on every debenture we sell, we
lose from £9 10s, to £6 10s. Take the medium
and there is a loss of 8 per cent., which, on
$1,000,000 alone, would be a loss of $80,000,
and would add that sum to the cost of the
PARLIAMENTARY DEBATES 279
railway. Can anybody hope, in the uncertainties of the future, that we can
sell at par
what we require this year?
But not only are our sales affected by
the
uncertainties
of the future; they must be largely affected by the certainties of the liabilities
we are heaping on ourselves. We
have before us a Bill to construct the St. Peter's Canal. This is variously estimated.
Mr. Perley,
who is the best Engineer out of the half-a-dozen who have reported on it, put the
cost at
$170,000. We have appropriated, this year,
bonds at $30,000, which will leave a sum of
$140,000 to be provided for-assuming you
could place any reliance on the estimate for a
Canal. But as a rule, nothing can be more
fallacious than such an estimate. A Railway
may be estimated. Any work on
the surface
of the ground may be computed, but there is
something in the nature of canal
operations
which renders such computations unreliable.
The Shubenacadie Canal was estimated
at
$250,000. It cost $500,000, and was then scarcely begun. It was subsequently made
a present of to gentlemen who were deluded with
the idea that it could be finished for $40,000—by
the amount of estimate by a competent Engineer. They accepted the fatal gift,
and spent
$200,000 to find the work still
incomplete, and
with all this money spent on it, it would be
difficult to find any other body
of gentlemen
who would be willing to accept the thing as a
gift.
The
Welland Canal was begun by a subscription of stock to the extent of $150,000.
Before it ended the enormous sum of $6,629,000
was spent in its construction. I do not contend
that the cases are paralel ; there were circumstances in each case to render
the works much
more formidable that anything that is completed at St. Peter's ; but I refer to these
instances, to shew the whole unreliability of
canal estimates ; and I undertake to tell the
house that nobody need expect to come out of
this scheme under $200,000. But
the government are determined to commit the house
to
it ; and if so, we may as well look the expense
steadily in the face, and
prepare for it. Let
us then assume we have to raise the amount,
how can it be done? By debentures alone ;
and this will throw into the
market well on to
$200,000 more of debentures.
Next we find an additional liability to be assumed for Mabou or Port Hood wharf.
What
this may be we, on this side of
the house,
have as yet no means of
knowing. Indeed but
for the sudden revelation which
flashed upon
us the other day, when one of the
hon. and
learned members for Inverness
complained
that it was not in the estimate,
and expressed his fear that the promise privately made
would not be redeemed, we should have
been
ignorant, that any such expenditure was intended. But now that the hon. gentleman
has
had the private promise, publicly acknowledged, we may prepare for
another expendi
ture in that quarter. That it will be of no
trifling magnitude, is clear ; but with
the obscurity that surrounds it, we cannot undertake to say what is its extent or
merit.
Next
in order comes the scheme for
aid to
the railway to the borders af New Brunswick.
The proposition is that we shall
give 4 per cent.
or
£10,000 a mile for twenty
years. This is
equivalent to an annuity for 20 years of $120,000; and the proposition as made to
us-the
proposition as this house, if it passes
this
resolution assents to it, is that either party is
to have the option of capitalizing
this annuity ;
and that, too, taking both propositions together,
not on the terms of paying in debentures what
the annuity is worth, but paying a principal
sum which shall yield an interest equal to the
amount of the annuity ; leaving it
to the company to be formed, to pay off the principal sum
out of a sinking fund to be instituted by them
for that purpose. It is quite true that the government declared they do not intend
to allow
the capitalization to be made on that footing ;
it is quite true that they have said they will
not even give the contractors
the option of capitalizing at all ; and further, that they will
not capitalize under par value ; but when they
make these statements, they are not accepting
the proposition ; and yet,
while they do not accept it and declare they will not accept it, they ask
us to pass a resolution to empower them to do
that which they say they have no intention to do.
But whether they capitalize, or not, they are
to take stock to the extent of $400,000,
for
which they must issue debentures, and these
debentures must be put in the market. If
they are sold, of course they will affect the
saleable value of the debentures for the Pictou road ; and whether they are sold or
not,
the very fact that this amount of debentures
is to be thrown into the market—or
is liable to
be thrown into it-will reduce the value of the
other bonds. If this proposition
stood alone,
it would be difficult to bear the burden of it ;
but when it is accompanied by another proposition, equally burdensome, it is impossible
to
contemplate the position without
fear and apprehension. Indeed, it would seem that
the
twin scheme is looked upon with even
more
favor than the New Brunswick proposition.
On the 23rd November, Mr. Levesey's proposition was before the government.
It had been
before them for weeks ; yet the government do
nothing. Connexion with New Brunswick and
the United States may be secured by accepting
the offer ; but it is not accepted,-and from
that day to this no sign is made, no council is
held, no minute passed either
accepting or
rejecting the proposition. It is quite otherwise with the Annapolis scheme.
A constituency is vacant—a member has to
be secured-
and forthwith a council is convened,
and a
minute passed, and the government
pledged-
and the house controlled, so far as that pledge
controls them-to build the
Annapolis road.
New let us see what this involves-4 per
cent on £6000 a mile, or 80 miles, is equal to
$76,800 a year, and there is the same option as
to capitalization. And as in
the North so in
the West an aditional liability is to be incurred. The Avon is to be bridged, and
the
Government are to bear the cost. This we
have no estimate for, but the Provincial Secretary put it at $160,000. I don't pretend
to
be an Engineer, but judging
from the width of
the river, the character of its approaches, the
nature of the foundation, nobody need be
astonished if it should cost much beyond $200,000. And for this sum
debentures must issue,
and
these again will act upon the debentures
for Pictou and affect
their value in the market, and increase the cost of the Pictou Road.
Now
let me group all this together:
|
Annual debt. |
| We shall have to pay for the Pictou
road............................ |
$150,000 |
| Cumberland road .................. |
144,000 |
280 PARLIAMENTARY DEBATES.
| Annapolis.......................... |
76,800 |
| Avon Bridge....................... |
12,000 |
| St. Peter's.......................... |
12,000 |
|
$394,000 |
| Less 4 per cent. guaranteed on stock taken on road to N. B., 400,000. . |
16,000 |
|
$378,000 |
So that for these liabilities, when
completed,
we shall have to provide a Revenue of nearly
$400,000 a year. But this is not
all. We borrow money, which we ought not to have borrowed, to erect a building in
Halifax which
is to cost us £30,000. We borrow, to be sure,
from the Savings' Bank, and to pay only 4
per cent, but this will entail some $5,000
additional for interest. So that if
this added to the
other sums, we may fairly put our whole burthen at $400,000 a year, and
this to be paid all
by new taxation. True, the Prov. Sec'y says
that we may count an additional revenue from
the Railroads as reducing the charge. But we
are already counting $50,000.
The Finl. Sec'y
has taken credit for that amount this year.
In 1863, the whole yield was $22,000
or thereabouts. In 1864, very little more, and it is beyond reasonable probability
that will yield
$50,000 in 1865. But if, when
the roads are
completed, there is a larger yield, it will arise
from a larger traffic, and just
in proportion
to
the traffic will be the wear and tear, and the
time is at hand when necessarily
the permanent way will require to be renewed, and all
that we can obtain, and more, will
be required
for that service when it has to be done.
Now, Mr.
Speaker, I believe I have not overdrawn the picture.
It is not very wise to
present the state of our public
finances in a
gloomy aspect. I have great faith in the character of our resources; I think that
with fair
play, we can cope with a large burden; I believe, too, that if depression come, we
may
feel it severely for a while, but
in time we
shall rally again. But if the prospects of the
incoming year are such as I have
described
them—if we have no reason to hope that
our
revenue will meet the amount already voted
away, and if the necessity of preserving the
public faith intact is a
paramount consideration—if we are committed to
the, Pictou
contracts, and must find the means to
pay at
whatever cost,—I have seriously
to ask this
House whether they ought not to
pause before
committing the country to those
enormous additional responsibilities. Three
years ago the
country was disturbed from one
end to the
other, lest taxes should be
imposed to meet a
temporary deficiency, the interest of which
would only be about $8,000 a year. And yet
the gentlemen who raised that cry, and who
made the people believe it, are not only enormously increasing the ordinary
expenditure,
but adding a debt which must be provided
by new taxes, to the incredible amount
of
nearly $400,000 a year. He
asked the Government to give themselves a year to
breathe,
and see what the prospects were. In all
probability nothing could be done for one
year,
even if they passed the resolution. New
Brunswick was hardly in a condition to
incur
additional liability, and if it were, he
had reason to believe that the favorite project
there
would be western extension. The people
of that Province were deeply interested
in connecting their railway system with that
of the United States, and were not
perhaps so
anxious to
extend that connection east of
their
own metropolis. At all events there was good
authority for believing that a
gentleman exercising much influence in the present
Government of New Brunswick, without whose
aid it
could hardly exist, stood pledged to support
no Government work. If this was so, New
Brunswick, clearly, could do nothing more,
and any hopes of connection between her rail
road and our border might be
given up for
the present. If then to press
this resolution
could do no good, if the only effect of
pressing
it would be to do mischief by operating upon
our Pictou loan, and depressing
it, he ask-
asked the government whether as
men of ordinary prudence, it was not their duty to accept the suggestions that were
offered from
this side of the house, and not needlessly imperil the public credit or embarrass
our finances?
He felt that as a member of the
opposition he
had no particular responsibility in this
matter.
It was the duty of the government to be satisfied of its ability to cope with the
enterprises it
originated; but, as a public man,
owing a public duty to his constituents and the province,
he had raised his warning voice, and felt that,
whether it was listened to or not,
he had done
his duty ; and he wished and hoped the
government would receive his suggestions
in the spirit in which they were offered.
One word more and he would not detain the
house further. Many gentlemen had appeared
to be in great dread of confederation from the
increased taxes that might be
imposed. Whether confederation would or would not result
in that, he would not stay now to ask; but he
was curious to see whether these
gentlemen,
who were frightened at imaginary
taxation,
were willing to subject themselves to a real
taxation exceeding the wildest flights which
the opponents of union had
ventured to assume as the result of confederation. If we
were willing to bear these taxes—if we were
willing to rush
into them when no necessity
pressed us,—then he could not but feel, and he
did not say it offensively, that the dread of
taxation was mere hypocrisy, and those who
used that argument would show their insin—
cerity by voting for this resolution.
Hon. FINANCIAL SECRETARY replied: I
cannot pretend to have so long a familarity
with public accounts as the hon. leader of the
Opposition, nor to possess the financial
ability
of that hon. gentleman; but I think I shall be
able to show that the premises on which
he
founded his statements—statements which,
if
true, would justly create serious uneasiness in
this county—are entirely baseless. I have no
hesitation in saying, that the facts and figures
in the possession of the hon. member
(which
were as full as it was possible to
procure for
him) were sufficient to convince him that his
statement was entirely fallacious. He started
with the assertion that in the preparation of
the estimate which I laid on the table
there
was the large sum of $82,000 placed to
our
credit which did not belong to it. He
was good
enough to insinuate, if he did not
assert, that I
was so incompetent to discharge my duty as to
allow the sums borrowed from the Savings
Bank, and the amount of Provincial Notes
issued by the Receiver General,
to go with the
general account without giving credit in
the
estimate. Now if the hon. member had taken
the trouble to look at the paper in his hand, he
PARLIAMENTARY DEBATES. 281
would have found that he is entirely inaccurate. By the Receiver General's account,
it
appears that the sum of $40,000 was
issued in
Treasury notes, and an amount of $42,000
was
borrowed from the Savings' Bank. The Treasury notes were issued on the authority of
the
House, in connection with the new Provincial
Building, and $42,000 was
borrowed towards
the construction of the Pictou Railway. The
sum of $148,000, which I show is
the balance in
the general treasury for my disposal, is
totally
independent of the $32,000 in
question. In the
Receiver General's account there is paid for
the Pictou Railway $21,000, and the
balance is
brought up as outstanding liability against the
Province, as a glance at schedule B of the estimates will show. Then there is the
sum of
$40,000 of treasury notes. By an Act passed in
1863, the Government were authorised to issue
Province notes not to exceed $40,000, and to
take from the Savings' Bank a sum not to
exceed $60,000 for the purchase
of the lot
known as Hare's lot, and the erection there—
on of the public building now in
course of
canstruction.
In accordance with this authority, the
lot
was purchased, the building contracted for,
and up to the 30th Sept. last the account of
that building with the Province
stood as follows:—
| From Savings Bank in 1863 |
. . . .. . . . .. |
$36,000 |
| New Notes in 1864 |
....... ........ ........ |
40,000 |
|
|
$76,000 |
| Paid for Land |
. . . .. . . . . . |
$39,644.30 |
| On acc't of building in 1864. . |
6,116.45 |
45,760.75 |
| Leaving a balance of. . . . . . . . . . . . . . |
$30,239.25 |
being the amount brought up as a liability
against the Province, as the hon. gentleman
woukd have seen at a glance had
he taken the
trouble to consult the papers
which have been
under his hands for weeks—before
attempting
to prejudice the government by
statements
entirely without foundation and
greatly calculated to mislead those not
having the ready access to the public accounts which the hon. gentleman can command.
The hon. member then
proceeded to question the soundness of the esi
timate for the present year,
and compared
the receipts of the past two quarters with those
of last year. The house will
recollect that the
actual custom's receipts were
$999,000. Now I
have before me the contingency of a revulsion
of trade—the
probability
that in view of
events transpiring in the United
States there
might be a serious reduction in the revenue received from our imports. Therefore I
estimate
$79,000 less than was actually received last
year. There is nothing that I can see in the
circumstances of the country—apart from
any
great convulsion of trade that nothing
at times
can prevent—to warrant us in corning
to the
conclusion that the year is
not to be a prosperous one in a commercial and financial
point of view. We see in the island of
Cape Breton which is making such rapid
progress in all the elements of prosperity,
immense sums of money are being expended for the development of its resources
and the construction of the Railway. Under
such circumstances the people in that section
must be better able than heretofore to buy
largely of dutiable goods. We have the assurance that capitalists are ready to expand
an
enormous sum of money in proportion to
our
population in the extension of our lines of
railway. Again, the Province is going on with
the construction of the Pictou
line. According
to the hon. member we are this year to expend a million and a half of dollars among
our people in connection with this work. All
these facts show that there will
be a large
amount of money in circulation, and as the
people will buy in proportion to their ability
to pay, the consumption of dutiable articles
must largely increase with the
increased circulation of money. Therefore,
apart from the general favorable condition of the country,
I
think under all the
circumstances, no man is
justified in saying, that for this year at all
events the ordinary receipts from our ordinary
sources of revenue are to be largely reduced.
I am not, however, obliged to deal in mere generalities on this point. I have, on
a
previous
occasion, shown that in the first quarter of this
year we had received over $100,000
in excess
of the same quarter last
year; now we have
another quarter gone by, the one
ending in
March. The revenue for that quarter is
$129,000, or an increase of over $20,000
on the
same quarter of last year. I can also
state to
the house that I had the
assurance of gentlemen who can best speak as to the prospects
of our revenue for the present
quarter, that
they are most favorable, and that, in fact,
there will be an increase in the receipts over
the same quarter of 1864. Under these circumstances I don't think the hon.
gentleman was
justified in drawing the alarming pictures he
has of the state of our affairs.
The hon. member went further, and charged
the Government with recklessness in spending
large sums of money. He complained that he had not the liabilities to the end of
the year at
hand,—that it was impossible
for him to get at
the exact condition of our financial affairs,
and thereupon assumed that the expenditures
were largely in excess of the receipts. My
hon. friend from Richmond, when Financial
Secretary, estimated largely in
excess of the
actual expenditure, and the paper which I
hold in my hand shows that on the 30th Sept.
the Receiver General had paid on the estimate
of my hon. friend an amount very much less
than the estimate.
Supposing
the total expenditures to be as
stated, yet the hon. member will find that the
financial condition of the country is sound, and
that there is no reason whatever why the country should be in the slightest degree
alarmed
as to its ability to meet the obligations it has
incurred. The hon. member attempted to cause
alarm respecting the sale of our debentures.
Every man who has the interest of
his country
at heart must deprecate the attempt to prejudice the public mind in
connection with the position which our debentures occupy in the market. I have reason
to know that the discussions which have taken place in another branch
of the Legislature have
already deterred men
from investing in these bonds to the extent
they intended. Before an hon. gentleman endeavored to create mistrust and prejudice
on
the public mind in this respect, he should have
at least grounds for so doing, and I for one
cannot see that he has any. He is altogether
in error in estimating the expenditure on the
railway to be one and a half millions during
the present season. I have reason to believe
that theexpenditure will be between 700 and
282 PARLIAMENTARY DEBATES.
$800,000, and that there will not be any
serious
dificulty in obtaining the money required.
The hon. gentleman next stated that the
adoption of the resolutions on the table would
impose upon the country an additional burden of $400,000 per annum for Railway interest;
and on giving us his assumption that
$800,000 will hereafter be the
highest amount
on which we can calculate as revenue receipts, he concludes that we shall not be in
a
position to meet the increased demands upon
our revenues. Now, sir, I assume that our
revenue for at least a few years to come, will
not be materially less than at present; and I
found the estimate upon the increasing
trade
of the country, which I have before endeavored to show the house, must inevitably
be the
result of the large expenditures
now being and
likely hereafter to be made on
our public works
and in the development of the mineral wealth
of the country. The hon. gentleman has altogether ignored this view of the question,
and
also the not only probable but inevitable inrease in our casual and territorial revenue.
We must also consider the very large increase
which must take place in the earnings of ourpresent railways on the completion of
the contemplated extensions, east, north and west. Now it
must be evident to the house that every coal
mine opened not only represents the capital
invested in its development, but gives annually an additional revenue in
proportion to the
extent of its shipments—just as every additional mile of railway built in connection
with
existing lines will throw a large additional
traflic on the government work. The receipts
on our roads are even now largely
increasing,
as every month's return shows—and
I shall be
much mistaken if the receipts this year will
not amount to $200,000 as against $168,000
last
year I assume, therefore, that I may safely
ask the country to base the revenue for a few
years to come on the estimated revenue for the
present year—and on that
assumption it will
not be difficult to show that even without resorting to the expedient of raising our
present
tariff the additional burdens could be met, and
all the substantial interests of the country
subserved. Indeed, was I inclined
to rely
upon such authority alone, I need
only quote
the speech of his friend the hon. member for
East Halifax, who, in a speech
delivered in
Temperance Hall, when his object was not to
depreciate the resources of his
country, proved
to a demonstration—if his figures be accepted
as of any value—that the country
could safely
undertake the work contemplated by this resolution without seriously entrenching upon
the
other essential services of the country. The
hon. gentleman has even stated the liability
which the adoption of these
resolutions will
entail—the amount being $312,000 with the interest on the cost of
construction of the Avon
bridge. This estimate will give
the following
result:—
| Estimated Revenue for 1865 |
................ |
$1,307,927 |
|
Liabilities. |
|
| Present Railway Interest............ |
$240,000 |
|
| do for N. Brunswick line....... |
112.000 |
|
| do for Pictou line............ |
120,000 |
|
| do for Annapolis line...... .. |
81,600 |
|
|
$553,600 |
|
| Civil List |
63,205 |
|
| Criminal Prosecution |
1,600 |
|
| Crown Land Department |
14,000 |
|
| Coroners Inquests |
1,400 |
|
| Revenue expenses |
61.000 |
|
| Judiciary expenses |
1,400 |
|
| Poor Asylum |
8,000 |
|
| Rations to Troops |
100 |
|
| Steamboats and Ferries |
11,000 |
|
| Militia |
20,000 |
|
| Postal Communication |
58,750 |
|
| Return Duties |
66,000 |
|
| Education |
127,000 |
|
| Indians and Relief |
1,300 |
|
| Public Printing |
8,000 |
|
| Gold Fields |
12,000 |
|
| Agriculture |
6,000 |
|
| Railway expenses |
120,000 |
|
| Statistics |
3,000 |
|
| Legislative expenses |
45,000 |
|
| Relief of Poor |
8,000 |
|
| Navigation Securities |
8,000 |
|
| Public Works |
90,000 |
|
| Miscellaneous |
6,000 |
|
|
$1,244,455 |
|
| Present ordinary Road Grant |
160,000 |
1,404,455 |
|
|
96,528 |
Leaving a balance of only $96,528 to be made
up from the increased receipts upon our railways and on the revenue derived from our
coal and gold mines—or if necessary by a
small addition to our tariff, which would not
be felt by the people, and which they would
willingly grant on advantages to be derived.
It was never contemplated by any one party in
this house that our public works could be largely extended without somewhat increasing
our
tariff, at present the lowest in America; but it
is not necessary that I should
now enter on
that subject. One word now, sir, as to the
propriety of a gentleman occupying
the position admittedly occupied by the hon. and learned gentleman from Colchester,
as a financier,
for any purpose attempting against the facts
of the case to depreciate the
financial position
and character of the country at
a time when
it is the duty of every man to further
and sustain its credit. That hon. gentleman's position
and talents give even false and erroneous views
and assertions when propounded by him, a
weight and consideration which would not
otherwise attach to them, and he will be held
responsible by the country for allowing his
eagerness to embarrass the government to betray him into the hasty and inconsiderate
statement of facts either utterly baseless
or founded on mere speculation, but which may, not,withstanding, coming from such
authority have
a tendency to injure the public credit. His
calculations to-day, sir, are somewhat on a
par with those by which in
1859 he proved so conclusively that the Pictou Railway could be built at a cost to
the Province of £6000 a year, and, I am sorry to
say, are not a bit more reliable than that
celebrated financial statement. I have thus
shown that the hon. gentleman's attempt
to impugn the correctness of the estimates on
the table have utterly failed. I have attempted, and I think with success, to show
that the
large expenditure of this Government for the
present year is founded upon well-considered
and safe calculations of our resources,
and that
Mr. Archibald's attempt to
play the alarmist is
due rather to his desire to embarrass or injure
the Government than to any fear of financial embarrassment on the part of the men
who
did not hesitate to embrace the Quebec scheme
of 1862 for the construction of
the Intercolonial
Railway
I can only say, for my own part, if it was at
PARLIAMENTARY DEBATES. 283
all apparent that the construction of
these railways was to impose burthens we could not
bear, I would hesitate before adopting the resolution. No man in this country, however,
can
deny that, if we are able to obtain the connection with St. John, and with the railway
system of the continent, we shall gain vast commercial advantages. The increase in
trade will
soon counterbalance any additional burthens
that we may impose upon ourselves. Railways make trade wherever they pass, and no
one can doubt that a road to the
fertile counties of King's and Annapolis would be not
only a great boon to the people of the west,
but create an ultimately remunerative traflic.
In due time a trade would accumulate that
would repay handsomely the Province for the
expenditure it might incur.
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