interest, $10,966 for the Sinking Fund, $9,000 for the Miners' Relief Fund, and $11,000 for the refund of Succession duties on certain bequests of a charitable, religious and educational nature. Upon Bridges, $220,000 was to be spent out of the capital account. Mr. C. E. Tanner followed and criticized especially the Roads' policy of the Government. He favoured placing the entire grants in the hands of the Municipalities. Mr. C. S. Wilcox supported him, while Mr. E. M. McDonald spoke at length for the Government. An amendment along the lines proposed by the Opposition Leader was defeated by 24 to 4 votes.

The financial statements of the Treasurer came in for the usual political criticism when the elections approached in the Autumn. It was then pointed out that when the Holmes-Thompson Conservative Government assumed office in 1878 the Provincial debt was $384,406; when they retired to make way for Mr. Fielding in 1882, it was $312,766; when Mr. Murray made his recent statement it was over $4,000,000. The reply of the Liberal press-Halifax Chronicle, September 26, 1901, was to state the items of the debt as including $902,000 spent on Railways; $1,755,447 spent on Bridges; $599,619 spent on Roads; and the balance on charities, agricultural institutions, etc. They claimed that the credit of the Province had greatly increased, and that the position of Nova Scotia was superior to that of any part of Canada in this respect. Its net debt was $5.90 per head; that of Quebec was $13.73 per head; New Brunswick, $8.56 per head; British Columbia, $31.64 per head; and Manitoba $58.70 per head.

In the matter of increased revenue, the Opposition claimed that it was due to causes over which the Government had no control, with the exception of Succession duties "paid by the widows and orphans " and an extra coal royalty, "which the consumers paid fifty times over in the increased price of their coal." The great services of the Province, according to the Halifax Mail of September 10th, got little, if any benefit from it. "Our school teachers are receiving less remuneration than they did twenty years ago, and the roads of the Province are in a confessedly worse condition than they were in 1882." The greater portion of this increased revenue went to pay interest and sinking fund "on a permanent debt which Mr. Fielding and his successors have succeeded in placing by way of mortgage on the Province." This interest was figured up from the blue books as having risen from $1,150 in the beginning of 1884, when Mr. Fielding assumed office, to $106,012 in 1891; to $140,121 in 1896 when Mr. Murray became Premier; and to $174,194 in 1900. This amount was yearly and steadily increasing and already absorbed one-fifth of the Provincial revenue. As to the expenditure of the money borrowed under these conditions the Opposition took strong ground. The sum obtained for Bridges was alleged to have been spent as a corruption fund in general elections and should have been spent, so far as it was really required, out of current revenue. So with the Roads' money. It was also claimed that as the Coal royalties increased the Road

grants diminished.
latter $83,988.
$73,994.

In 1897 the former were $224,331 and the In 1900 they were, respectively, $353,102 and

One of the subjects connected with finance, which the Assembly discussed during the Session, was that of auditing the Provincial Accounts. On February 25th, the Premier had moved his Bill relating to this matter, and providing according to the summary of Mr. C. E. Tanner-that the Lieutenant-Governor-in-Council might appoint a person to audit the accounts of such Departments as should be determined on. The salary of this official was to be fixed by the Government, and the person appointed was to make an annual report to the Provincial Secretary. Mr. Tanner objected strongly to the measure. It was very late in the years of Liberal rule in Nova Scotia to bring down such a Bill. The Dominion and four of the other Provinces had long had official auditors. In most cases such an officer was a servant of the Legislature and not of the Government. He could only be removed upon a vote of both Houses, and his remuneration was fixed by legislation. His reports were made to the Legislature and not to the authorities whom he was criticising and dealing with. Why should precedents be overturned in this case and the Auditor be appointed and controlled by the Government, whose accounts he was supposed to check and oversee?

All that was

The Hon. Mr. Murray, in his reply, stated that the person in question was not to be an Auditor-General, but simply a skilled accountant called in from time to time to examine the books of whatever Department required his services. The appointment of a permanent official would be expensive, and he hardly thought was necessary as yet. "We have reliable and competent officials and there is no justification for assuming the increased expense which the Hon. gentleman's suggestion would involve." Mr. E. M. McDonald defended the intended legislation of the Government. proposed was that, if, at any time, the Government found it necessary for any purpose, to have the accounts of any paid official audited, they should have power to appoint an official to do so." Mr. C. S. Wilcox thought the Bill did not go far enough. What was wanted was an independent audit." The expense need not be $10,000, as stated, or $400, as indicated by this measure, but could be a happy medium. Mr. Tanner followed with a long amendment recapitulating his reasons for opposing the measure and suggesting the appointment of an independent officer, responsible to the House, and bound to report to it. The amendment was lost and the Bill referred to Committee. In this connection, and as evidence of the necessity for an Auditor, the Halifax Mail, of September 25th, gave the average yearly expenditure under the Holmes-Thompson Government upon Government House as $3,846, and the average under Liberal rule as $4,530. Upon the Provincial Building the average expenditure had been, respectively, $5,278 and $13,995.

Finances of New Brunswick

On March 18th, the Hon. Mr. Tweedie, Premier and Treasurer, presented the annual Budget, or financial statement to the Assembly at Fredericton. The receipts of the Province for the year ending October 31, 1900, were $758,988, the estimates had been $745,191. The chief increase was in the Succession duties, which realized $39,522. The Dominion subsidies amounted to $483,491; the Territorial revenue was $175,818; the taxes upon Incorporated Companies realized $25,352; the Liquor licenses brought in $21,628. The expenditures totalled $794,476, showing a deficit of $35,488. Against this, however, were the unusual expenses of $24,000 in connection with the suppression of small-pox, the $5,000 spent on the South African Contingent, and $10,484 expended on the Bridge Inquiry. The net debt of the Province on October 31, 1900, was $2,851,068, as against $2,736,298 in the preceding year. The increase during the year was, therefore,

$114,788.

For 1901, Mr. Tweedie expected better returns and estimated the revenue at $1,030,491, and the expenditures at $808,424. Included in the revenue estimates were $483,491 for Dominion subsidies-although this figure might be increased as a result of the Census; $270,000 for the Eastern Extension claim and final payment; Territorial revenue, including land sales, Timber licenses, taxes on Incorporated Companies, $25,000; Succession duties, $25,000; Liquor licenses, $21,500; miscellaneous, $20,500. The estimated expenditures included $17,525 upon the Administration of Justice; $34,526 upon Agriculture; $206,494 upon Education; $30,070 upon Executive Government; $124,000 upon the Interest on bonded indebtedness; $8,000 on Immigration; $11,000 upon Public Health and the same amount on Public printing; $20,327 upon the Legislature; $61,543 upon Lunatic Asylums and $7,600 upon Public Hospitals; $296,077 upon Public Works; miscellaneous expenses, $38,300. Mr. Tweedie concluded his speech on March 19th with a declaration that the Province was in good financial condition; that it was upon the business sentiment of the people that he wished to stand; that the Opposition in their attempts to belittle the Government often did injury to the Province; that it was "unwise and unpatriotic" to say that the Government were extravagant and the Province upon the verge of direct taxation.

He

Mr. James K. Flemming replied on behalf of the Opposition. stated that it had become the custom to claim a surplus year by year whether there was one or not. On this occasion, however, the Premier and Provincial Treasurer had to admit the deficit, though he tried to excuse it by practically declaring that the finances were in such a shape that the slightest outside call would create indebtedness. He pointed out the steady increase in expenditures from $727,186 in 1897 to $794,476 in 1900, and asked how this was going to be met. Even with this increase, the great public interests were being starved. Education received this year $4,044 less than in 1897, and Public Works received only $2,000 more than four years previously. So,

with Agriculture, which only showed an increase in that period of $4,864. Meanwhile, the revenue had only risen from $745,212 to $758,988—a much smaller increase than was shown in expenditures. He did not think the Census would result in any addition to the Federal subsidies.

The revenue from lumber cut on the Crown Lands had, it was said, increased from $96,264 in 1899 to $112,315, but he believed that in the following year the lumber cut would be about one-third less and the estimate of $100,000 from this source was therefore excessive. Mr. Flemming then dealt with what he termed the Government's system of direct taxation-Succession duties, Liquor licenses and taxes on Banks, Fire and Life Insurance companies, Accident companies, Telegraph, Telephone and Loan companies, Street Railways, etc.-amounting to a total of $91,282. He did not think that this money came out of the pockets of rich corporations as the Government claimed. The banks took it out of their customers, and the insurance companies out of their policy holders. The people really paid these taxes. As to the Public Debt, he declared, that at the present rate of increase the interest charge in four years would amount to $16,695. He criticised the salaries and additional sums paid to Ministers, and declared that, if the present system of open competition in the construction of steel bridges-which the Opposition had so long urged-had been previously adopted, $35,000 would have been saved in the past four years.

After short speeches by Messrs. S. B. Appleby, C. J. Osman, J. E. Porter and A. B. Copp in support of the Government, the Opposition Leader spoke at some length. Mr. Douglas Hazen described the Budget speech as a "dismal dirge," and declared it to be absolutely false that the freshets of the preceding autumn had had any effect upon the expenditures of the year. During the past four years the increase of the Public Debt had been, he stated, nearly half a million dollars, and this fact illustrated the "rash and reckless" management of affairs. "The Province is going behind every year despite the fact that the Government are getting $90,000 in taxes which the Provincial Secretary a few years ago did not have." A large proportion of this additional taxation came out of the people of St. John. He stated that the travelling expenses of the members of the Government averaged $648 and thought it would be wiser to increase their stated salaries than to do it in this way. They should also live in Fredericton. The immigration policy of the Government had made 50 people in the past year cost the Province $167 each. He did not think the Eastern Extension money should go in as current receipts. It should have been made into a permanent fund of some kind, Messrs. T. M. Burns, G. F. Hill and J. P. Burchill followed and the Hon. Mr. Tweedie closed the debate.

In commenting upon the Budget, the St. John Telegraph, of March 20th, congratulated the Government upon spending a portion of the Eastern Extension award "in clearing up the indebtedness of the Public Works' Department," and of repairing the serious damage

caused to bridges and roads by the rains of the previous autumn. The St. John Gazette described the Premier's speech as "complete and thorough." The St. John Sun drew attention to the fact that New Brunswick bonds which had sold at 96, five years ago, could not now be floated at more than 84 and to the recent announcement of the Hon. Mr. Pugsley that cold-storage bonds, drawing 3 per cent., with both principal and interest guaranteed by the Province, would have to be sold so that $60,000 worth of debentures would only bring $50,400. "The Provincial credit is not as good as it ought to be and the paper went on to declare that it was because the business community had no confidence in Mr. Tweedie or Mr. Pugsley. The Fredericton Gleaner thought the Provincial credit was decidedly declining and declared that Mr. Tweedie's contention that neither the British nor Dominion bonds were selling as well as they did a few years ago was not to the point as he did not quote the figures.

Later in the Session the Premier stated that he had received an offer at 90 for the bonds which had previously stood at 84 as the highest available bid. Financiers in Boston had also advised him of their willingness to tender for the Provincial bonds which were to be placed on the market. On March 19th, the Hon. Mr. Pugsley, Attorney-General, introduced a measure regarding Succession duties. The tax of 10 per cent. on nephews and nieces who inherited property in the Province, and 20 per cent. if residing out of it, was reduced by one-half. Duties were made payable on all estates of $30,000 or over, instead of $50,000 or over. A clause which gave the AttorneyGeneral an amount not exceeding 5 per cent. of the sums collected under this law was opposed by Mr. Douglas Hazen and others. The measure eventually became law.

The Finances of

Prince

Edward

Island

During a number of years past the finances of this Province had been in an unsatisfactory condition and this fact was one of the issues in the elections of 1900, as well as the supposed cause of the Premier's visit to Ottawa about the same time. On April 12, 1901, the financial figures were published for the preceding year and showed receipts amounting to $282,056 and ordinary expenditures of $308,494, together with expenditures upon capital account of $47,499. The receipts included the Dominion subsidy of $181,931; the Provincial Land Tax of $28,245; the sale of Debentures at a price bringing $22,000; the taxes upon special interests-Commercial travellers $8,140, Incorporated companies $6,062, Ferries $5,706-amounting to $19,908; the Succession duties, $3,641; and Liquor sellers' registration $4,700.

The chief items of expenditure were $16,595 upon the administration of Justice; $129,112 upon Education; $21,123 upon the Hospital for Insane; $20,861 interest upon Loans, etc.; $7,443 upon Legislation; $7,469 upon the Poor-House and paupers; $17,118 upon Ferries; $23,503 upon Roads; and $20,496 upon Bridges. expenditure of $14,920 upon the Prince of Wales' College and that of $20,890 upon the Hospital for the Insane were the principal charges

The