lishment of Craft or Trade schools in cities and towns and Technical high schools in industrial centres. The Budget speech of the Provincial Treasurer (Hon. A. J. Matheson) was delivered on Feb. 3rd and dealt with the statistics. of the ten months ending Oct. 31, 1909. The ordinary revenue was $7,477,920 and expenditures $7,545,040 showing an apparent deficit of $67,000. Owing, however, to the change in the fiscal year these figures omitted the large revenue coming from Crown lands, Timber dues, and License fees, in November and December of each year. To the close of 1909 the Surplus would have been about $300,000. Every item of the estimated revenue had shown an increase-Succession Duties being $281,000 and T. & N. O. receipts $250,000 larger and the total $1,372,000 over the estimate. Reference was made to the Loans of the year£820,000 at 102 in London for Treasury bills; $1,150,000 floated at par in Ontario as a balance of the $7,000,000 authorized in 1905; and $3,500,000 for Hydro-Electric purposes also floated at 102 in Ontario and of which $2,070,000 had been taken up by Oct. 31st. I On this latter point the Treasurer said: "It is in the interest of this Province and its people that our own people should, to a certain extent, provide for the requirements of their own Province. They take a deeper interest in the Government and the finances of their Province when they, themselves, hold the securities. have never yet, in any of the many applications made, heard the slightest question raised as to the safety of the investment which all recognized was the best that could be had in this Province while, in England, at no time has the credit of the Province stood higher in proportion, for similar securities, than it does to-day." Several offers to subscribe for $1,000,000 in lump sums were refused. For the year ending Oct. 31, 1910, Mr. Matheson estimated a revenue of $8,540,000 and hoped, by close economy, to keep the expenditure within that limit-despite the many and increasing calls of a rapidly developing country. The actual Receipts were $8,891,004 and Expenditures $8,887,520.* The following table is compiled so as to afford a view of the financial situation for these two periods: The Opposition view of the statement for 1909 was presented by Mr. D. J. McDougal who claimed that, including Transmission Line expenditures, the 1910 total would be $10,374,000-showing a considerable deficit and being double the total Expenditures of 1905 when the Government made its first annual statement. He contended that the Government should float its 4 per cent. loans abroad, criticized the Hydro-Electric easement acquisitions and the refusal to permit the right of appeal to the Courts, deprecated the movement of population from the farms and asked for a Commission of Inquiry. Mr. A. G. MacKay claimed that on the 1909 figures there was really a deficit of $250,000 and moved a long Resolution dealing with educational conditions, Hydro-electric affairs and including the following reference to Financial matters: "This House regrets that, when a proper classification of current, as distinguished from capital receipts and expenditures, has been made, it clearly appears that the current expenditures for 1909 exceeded the current receipts, and this House therefore regrets that the Government is gradually depleting our forest wealth, while doing nothing by way of reforestation or otherwise, to make this large source of revenue continuous and abiding." After a speech from the Premier it was voted down by 71 to 17. The House prorogued on Mch. 19th. Questions connected with Liquor Licenses and Temperance were actively discussed in 1910. The result of the Local Option By-law campaign which came to a vote on Jan. 3rd in 158 places was the carrying of the By-law in 25 cities, towns and villages and its defeat in 34 through the three-fifths Clause; its success in 52 townships and defeat in 21 by the same Clause. There were majorities against the By-laws in 16 towns and villages and 10 townships. On Feb. 2nd a deputation of 100 persons saw the Premier, as representing constituencies where Local Option had failed to pass through the three-fifths vote requirement, and asked for amendment of the law so as to require simply a popular majority. Sir James in his reply said that without some such handicap to evoke the real feeling of the people Local Option would be "a fleeting and evanescent thing." The day would come, he hoped, when all rural Ontario would have Local Option on (6 a stable, immovable basis." To another deputation on the 17th he described this Clause as the greatest protection the Temperance people had. The total licenses issued during the year ending Apr. 30, 1910, were 2,244 as compared with 2,379 in 1909, 3,132 in 1895 and 6,185 in 1874. War was declared by the Provincial Police against illicit liquor sellers in Northern Ontario during the Winter of 1910. At the meeting of the Dominion Alliance (Ontario) Convention, Feb. 16-17, Resolutions were passed as follows: 1. That this Convention hereby expresses its appreciation of the energetic manner in which the officials of the License Department of this Province have performed their duty in the prosecution of violations of law. 2. That this Convention expresses its satisfaction that the Government of this Province has intimated its intention to make full provision for protection of the voting on Local Option by-laws, so that the safeguards which surround ordinary elections will apply in this connection, and we hereby memorialize the Government to amend the Local Option by-law so as to secure the same. 3. That we protest in the most emphatic manner against the granting of licenses to Clubs to dispense intoxicating liquors to members under any conditions, and the more, especially, do we protest against this practice being allowed in or near Local Option districts. 4. That this Convention considers it inconsistent for members or officers of this Alliance to be members of Clubs where liquor is sold. In the Legislature, Hon. W. J. Hanna carried a measure containing stringent enactments as to corruption in Local Option contests, closing all bars on Christmas Day and making the wholesale liquor license a uniform $500 over the Province. On Mch. 15th the Bill of W. Proudfoot (Lib.) providing for the abolition of the three-fifths Clause was rejected on a division in which the votes were not recorded. On Nov. 17th the License Department announced that liquor could not under the License Act be further used at the refreshment tables of fraternal societies, lodges, etc. Government, VI-PROVINCIAL AFFAIRS QUEBEC. The Gouin Government remained strongly intrenched in power during 1910 and not all the efforts of J. M. Tellier, Leader of the few Conservatives in the Legislature, or of Henri Bourassa, the fiery freelance of Quebec politics, could make any apparent impression. Sir C. A. P. Pelletier, Lieut.-Governor, was in poor health during most of the year and on Nov. 9th Chief Justice Sir L. A. Jetté was gazetted Administrator of the Government during His Honour's absence. There were some changes in the personnel of the Government. The resignation of Hon. W. A. Weir, which was announced at the close of 1909 to accept a position on the Bench and which was accepted on Jan. 14th, made a vacancy in the Provincial Treasurership. Many names were suggested, notably that of Dr. J. T. Finnie, M.L.A., of Montreal, but on Jan. 17th the acceptance was announced of Mr. Peter S. G. Mackenzie, K.C., Member of the Legislature for 10 years. Of this appointment much favourable opinion was expressed and the Montreal Herald described the new Treasurer as "a man of good sound judgment, self-centred and independent." The Eastern Townships were particularly well satisfied. Mr. Mackenzie was re-elected in Richmond by acclamation on Jan. 27th. On Mch. 8th. Hon. Narcisse Perodeau, M.L.C., since 1897, was called to the Ministry without Portfolio, and appointed Government Leader in the Legislative Council in succession to Hon. Jules Allard, who retired to run for the Assembly. Sir Lomer Gouin was conspicuous in various directions during the year, but, perhaps, his policy and that of his Government, in conection with Temperance and with Pulp-wood were the most important public matters. Early in the year there was much speculation as to the Provincial Government's policy regarding the export of pulp-wood. On Apl. 6, Mr. Allard, Minister of Lands and Forests, made this statement: "The Government has not sold any timber limits. We lease these timber limits to the lumbermen for one year. The lessee has the right to renew his lease every year, provided the stumpage dues have been paid and the Government regulations concerning the cutting of timber have been adhered to. Owing to the large amount invested in the timber industry, however, the limit-holders asked an assurance that the rent would not be increased for a certain time. In 1900, therefore, an Order-in-Council was passed by which the Government agreed not to increase the rent for a period of ten years. This agreement expires in September next." There was much discussion of this announcement at Washington and Ottawa in view of pending Reciprocity negotiations; much dissatisfaction expressed by the United States newspapers at the loss of one more source of free supply; general satisfaction amongst pulp and paper men in the Province. It was described by the latter as a step in the right direction and the estimate made that the advance in stumpage dues and ground rents would ultimately increase the revenue of the Province by at least $750,000 per year. The great benefit to the Province, however, would be in the establishment of mills by American paper manufacturers. Meanwhile, Washington despatches to the New York press described the policy as hostile to United States interests, as hampering Reciprocity negotiations, as indicating that the Canadian Government was not in earnest in seeking closer trade relations. In reply to these and other protests Sir Lomer Gouin stated to the press on Apl. 18 that: "We have decided on prohibiting the exportation of pulp-wood after thoroughly considering the question and will not consent to alter our programme in any particular." At the same time the Hon. J. C. Kaine, Minister without Portfolio, and a prominent lumberman, pointed out that it required time to establish pulp and paper plants and that American mills would probably not suffer for some time to come. On Apl. 25, a lengthy Order-in-Council was issued making regulations, giving details of rent and license conditions, increasing the ground rent from three to five dollars per square mile and the stumpage dues by 60 per cent. and prohibiting any export from the Crown Lands of the Province after May 1, and from Settlers' lands taken up after Sept. 1, unless manufactured into dials or boards, converted into pulp or paper, or made into other articles of commerce or interchange, as distinguished from timber in its raw and unmanufactured state. Official protests from the United States Government followed, but two days later Sir Wilfrid Laurier informed the Consul-General at Ottawa that the Quebec Government declined to modify the new law. Threats of retaliation were then heard and on June 9 it was announced in a Washington Treasury Department ruling that Pulp and printing paper manufactured from wood cut on Crown Lands in the Province of Quebec, prior to May 1st last, was subject to a countervailing duty of 25 cents per cord, or its equivalent of 35 cents a ton in the manufactured state as print paper. Speaking to the press at Quebec on Nov. 11th Sir Lomer Gouin said: "The Province of Quebec is destined to become the great paper-making centre of the world. We have the raw material, and the necessary water power and |