Hon. Mr. DAVIES.—I did not say that the Judges
had done wrong ; I merely repeated what I had heard
and read in the public newspapers ; and will, Mr.
Chairman, hon. members on the other side of this
undertook to purchase the Cunard estate, it was their
duty to have made some provision for the payment.
I think I saw in some paper a statement to the effect
that the Banks represented that they could meet all these
payments as they became due, without inconvenience.
I believe such a statement was made, and that the Government would not have effected
the purchase unless
they had such expectations. But we know the situa
ation of the Banks, that, under their constitution, they
can not afford the accommodation required, because
it has been and is as much as the Banks can do to
afford merchants the ordinary requirements for remittances to Britain ; and it is
evident to every man
acquainted with the trade of the Colony, that the Banks
cannot now meet the payment on exchange in England without draining the specie from
their vaults. In
doing so, the community would suffer, because the
exchange they require will be absorbed by Government, and the distress which we already
feel will be
fearfully augmented when the second and third payments are made. I therefore blame
the late Government for entering into a purchase before providing
means to pay it—without distracting the trade of
the Colony. Sir, they have left us this difficulty to
contend with, without allowing time to make the
neccessary arrangement for overcoming this want of
statesmanship, by obtaining money in the British
market to meet it. While trade is flourishing, it is all
very well, but when a reverse comes around, and the
Banks cannot give the facilities required, it is different ;
and where is the gentleman in business, who is not
aware of this? I am apprehensive that, when the time
for the next payment to be made on the estate comes
on, a great difficulty will be experienced, unless some
remedy is the provided. When the late Government
made the first payment, where did they go for money?
They went to the Banks. The Banks do not create
exchange or bring gold into the market ; that is the
merchants' avocation, who employ our labor in various
ways, in constructing ships, in fishing, &c., &c.; and
by exporting these effects abroad, they (the merchants)
then give the Banks exchange on their brokers for the
proceeds of their shipments. It is true the merchant
cannot go on without aid from the Banks,—one assists
the other; it therefore follows if the Government
drain the Banks of gold, that they cannot afford the
accommodation trade requires, then it becomes
paralyzed. This is what we are rapidly approaching
tom and if the Government cannot effect credit in London, to draw on in payment for
the sums falling due
on the Cunard estate, I think the Banks will either
have to stop specie payment or shut up for a time,
which will not only entail ruin on the trader,
but eventually fall as heavily on the agricultural
classes I cannot account for gentlemen, possessing
the ability the late Government were acknowledged to
possess, entering at all into this arrangement,
unless it was that they expected the payment of this
debt would be an inducement for us to go into Confederation, as we might be enabled
to meet this
difficulty out of the sum they expected the Canadians
would give us for yielding up our liberty. A deeper
laid scheme could not have been devised. (Hear,
hear.) You may say hear, hear ; but many who hear
me know it was so. My hon. colleague has said that
this state of affairs has been brought on by overtrading.
I cannot agree with him The stock now in this Island
is not one-sixth more than it was last year; nor does
the fall in the price of shipping apply to this Island
with any force. It applies with more force to those
ships sent from St. Jogn and Quebec. The people of
England ought to-be proud of these Colonies, when
they look at such splendid ships as are sent from New
Brunswick and Quebec. They are classed for seven
years, when they should be classed for twelve. They
are equal to ships built of English oak, being built of
material that will not take the dry rot. Now, I wish
to show that the cause of the low price of these splendid ships sent home from the
sister Provinces, is
that there are more of them in the market than are
required ; this is the reason why their price is so
much depressed. The ships we build range from 100
to 300 tons, and was but few so small are sent to market
from other parts.—the requirements being greater, our
vessels have not fallen equally low in price with those
PARLIAMENTARY REPORTER.
28
of St. John and Quebec. These vessels range from 300
to 2,000 tons register. There are but thirty or forty
Island vessels unsold in the English market. It is the
withdrawal of the money from this Colony that makes
the pressure. I do not mean to throw any blame on
the Banks ; I know better. They must respect the
rights of their shareholders. If the Banks have not got
bills of exchange, they must pay ont the gold ; and, if
means are not obtained before the first of July, the
Banks will have to close. Their object was to drive us
into Confederation. They thought it would release us
from these difficulties, and that they money we would
get out of Confederation would pay for the Cunard
estate. They were willing to sell our rights for the
self-interests of a few. But before closing, Mr. Chairman, I would observe there is
a very interesting tale
being published at London. It comes out in the periodicals, and is called "Birds of
Prey." If the author
were as well acquainted with the transactions of some
of the proprietary party as I am, and would introduce
one of them into his work, it would render his name
immortal.
