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N«w York U609 USA (716) 482 - 0300 - Phitw (716) 288 - 5989 - Fa« T BUREAU OF PROVINCIAL INKORMATION, THE FINANCES OF BRITISH COLUMBIA, HV TIIK HON. J. U. PRENTICE, MINISTER OF FINANCE. BULLETIN No. 6. TNCGOVCRNNCDTOr Va. PKOVJIICC OF BXTISH COLUMBIA Vl( TOKIA, |{. I'. : I'rinted li> Kuiiakp WdLiKMiK.N, I'liiitc-r to Hit- Kiiii:'> Most Km .■lUiit M;ijr»t.\. I'.HCJ. THE BUDGET SPEECH. -.o; Delivered in ll.e Legislative Assembly of British Columbia on Monday, April 28th, 10O^. :6:- Hon. Mr. Prentice. Minister of Finance, on moving the House into Committee of Supply, said :- . , Mr Hpeakkr: The moticm which I am about to propose is the usual one at this suge that the House resolve itself into Comnnttee of Supply Zt Lf. re tokrnK up the main question, viz., the Estimates, which hav« l>een submUted and the financial affairs of the Province generally should hke sTat that I do so with a full realisation of the resp.msjbd,t.es of the nn«ition which I now occupy in rising in my place to deliver my hrst budget Kch I ^1 hTt I am Smewhat Imndicapped in following the foofteps o mT Turner, who wa« Finance Minister of the Province for a penod o 13 or 14 vcar^ it is perfectly true that I was for some time m oppositmn to that LnUeman but faVn now free to admit that I never knew Mr. Turner until 1 sat in Ouncl w?Ih him, and I realise this, that in his Department and JhrouLhoutTe Jhole Province he will long be missed. I feel that it was not unt°rhtdeparture that we fully appreciated his splendid personality and his T worth I am sure we all hope that he will W. spared for many years Z rirentBriUsh Columbia in Lomlon. His duties in his present capacity Tre no o-^Unary ones, for upon him devolves the task of not only ^-anng /o a ?arae exte. t fo^r the credit of the Province in the largest u.oney centre of the S bu so far as lies in his power, of inducing emigration to and invest- ments in this Province. On account of his great knowledge .nd experience. Td the fresh rnfornation with which we propore to keep him supplied he wm be abTem St successfully to place before int nding settlers and investors Ue great opportunities to b^th which are aflbrded in this Province. He is pecuHariy qualified for this work and I venture to say his labours will bear ^"^I'plop e, first of all, Mr. Speaker, to briefly deal with the Public Account the 30th June, 1901, then with the accounts «- th« year enduig the 30th June next and the Estimates for the year en.ting 30th June, U03, "°^ ?aSg\';rh°eP:blic Accounts for the year -^li"« ^hf ^^ Ju^ „^^^^^^^ it will be seen that the actual revenue for that ye.r Z^JX^^lf^^^ ^'^ total expenditure $2,407,492; so that the gross deficit for the year was aSoi 'i72 There was however, put aside for sinking fund mvestment and Ktn S^rb^ures «nder\L I.an Act of^ 1^^^^^^^^^^^ which sum if deducted, leaves a net deficit of $681,9^ Jl. T^ow, sir, ine rxplanarn for this apparently large deficit can bejound to ^me extent in the failure of the actual revenue to come up to the Estimates by !5lf>I....H. much. ThUdHicituaceuuldr .1 5' ^7 "/ •"^T""" «-^"'^»« '^ the fact that the np^ou a! v^ Hi.ro tlr^'''*^ •^V'^''^" ♦'XFH"o«Hible. t.. wipe off worth ess al"^' wrT *"'*?' *'"'' ^'''*"* '-"nd percentage of thene arrears w II Trre»S"T''''w '"*"♦*''• *'''»^ » ''"«• expenditures are concerned Mr S ':«'»""«' «P«>». So f,ir «« laMt y^J'u Bition must ».ar their f^.,!:^^^':^:::^^:"'''':^ '' *''' P-ent^. L" his followers were.upp;>rM:« fr(t;V:rnt"7';!r'''?' '»'« ^^-ernaiellt aL passed, and we have not .Ko'ldlTZ^^^^^^^^ passing them. "'"' **"* authority granted by thi>* H..use in The item of .''^7'iO 000 f i r was certainly a k'rge ^ne. butTs die Tthe f" A^' ^^'*''""**^''^ '^^ '"00-1 901 'I>tures were not carried on d^ .1 th" nr!.? '*""; "?'*!'^ "♦"^^'^-••^ -P«» were numerous persistent and >*e - ounde the extent of 840,000, n.aking *80,000 niall; ast year !^1 20^800. In timber royaltier; and licences the amount is *80,000, §5,000 less than last year. Rentals, §37,000, the sa.ne as last yea,;. Timber leases, ftl 10,C00, of which §50,000 is for ar.-ears. b ree miners licences are put down at .§100,000, or §30.000 ur ^er last year. This estimate is l)ased on the collections being .na.le at the present time. Mining "-eceipts general §175 000, or iiS25,000 less than last year. Licences, geiieral, at §8(J,000, an incre'ase of §10,000— an estimate based on the collections made this year. Marriage licenc;s are the sa.ne as la.st year §6,000. Real property tax is estimated at §130,000, based on the assessment rolls ; this is a.i increase of .§5,000. In addition to this, we .^timate §80,000 f„rarrea,^. Personal pro- pe ty tax is §80,000, an increase of §5,000-which, plus §60,000 for arrears, t.* (i amounts to |!140,000. Wild land tax is put down at «50 000 f h« ast year, with an addition of $75,000 for arreaJ T ni;?2 ' ?V'*"'« *« Government Dronospa f« ,«„t„ V tor arrears. Under this headmc the where thistLpS^t^tLVenrr"'"'^"'"' "^ '^°"«^' the arrears? and may be somewZ uipoplr bVt tf s d'"^'!^ P^"'''°" "^ '^' ''»"'^- This the Province. ""'^P"'*'^' ^"^ •'^ «« deemed necessary in the interests of Income tax is placed at 840,000, an increase „f «-. onn ti IS estimated at .* 1 no 000 Tj.«t L„ '* u ,!^^^ *" ilo.OOO. The revenue tax the basis of $5 pe head bu^tiifwa ?""f ' "'^^ ^^^O.OOO, which was on only collected therefoTe this sum wHn Tu P"* I"'." ^"'"'"' ^'^ ^^e $3 rate was this estimate of «S 000 MinerTl t '^^'^^^ '. P''"^'*'^'^ «^«"««« ""d«'- the estimate waslnOOOO ^SZll^ir T"^ f ^'^^••^^^' '"«^ y^*"* that the collections durin"' the nr^ . « , '^^ ™*'.'"^' ^ ^^ '« anticipated expectations in this "partfcular ar^ bas^'o'i 'Z T'' T'' $95,000. ^My particularly at Rossland and in fl.! p '^,"" *'*'^ ^*''g«ly increased output, expansion of the Sn"r . iustrv n^^"'^'*"'^ «*^""^7' «"d generally on thJ registry fe^s is Wed on" nrP«.nf ^n . ^°'"? ""• ^^« ''«™ «^ -^^O'OOO for reeeipti fr.un he HlnZ'^rthet' '.' l^' ^T '' ""^ *' '^'^^^O. The at .$10,000, and in tht connect 'on I 3. 't 7 y^^^"^'^'- ''' '''"''^'^^ the new management bvwS i '■^^^'' ^ *^« ''««"^t« achieved by cent., notwitZrdingth'eincreasrr^^^^^^^^^ '^P^^: !"^" '1^^'^^ «-' P- same as last year i^ln 000 Jn th ^ T \ Printing office receipts the Restriction A^ct, i have Saeed «40 OOo" k"" ?f ;«^^""« ""^er the Chinese 8130,000 estim;te»ent apportionment is, I ""-'«-«»"''• ,'™'^''„ "X"l a» a f„S%«ects o/chine^ i.i;migraUc,n in the Pro«^^^^^^^^^^ Tarrl^^rLTi:' r^n TheX c'it.rfT^Province^t.'^^e whole o| at all IS a n^ni aim juou , ^^^^ admit ot ZZT ^hTnlCrrShinU'wtt;, '^eir way - Extern Can^a a rr.U:and the effect on the lalxur market, in ~-.der.t.on"f the Urge- -r.ir%'nTS:^ii:.t :ssSn >: p-m^^i:^ .^- fisheries between the Hon. the Attorney-General and the H°^- ^^e Muuster of Marine and Fisheries, and we have reason o ^'^^V^ « ^JV^'^^ JoO for Jhe ■11 o;.,^«l^nnn for its share of licences for 1901, and ?>^u,uuu lortue Tuln ; L in a'ddUio^t: t^^^ is the matter of foreshore rentals and an Impost on the salmon pack, both of which are now having the consideration of the (lovernment. . >i!innnnO nf which Last year the estimate for succession duties wa ^100,000, ot win .%U,U00 may be realised. This year it is put down f^^^f 'J.^^; J'^,^^^' ^"^ cou;se, a very problematical ^.urce of income, and no exact estimate can ^'"^OnToi the most important items of revenue on the list is royalty ami tax on coa which, as you will see, is down at SLW 000. Last year it was nkced atto'oOO which will be just about equalled by actual receip s. The Fnc eased ou put of Crow's Nesl collieries and the present output of the Vancouver TsLd coal mines Justify me in the estimate 1 have mae provided for. ^.u\,-\i \< In Civil Government (Salaries) there is an mcrease ot f '^OO wjnch is mainly caused by new positions created, which are shown in the Estimates. This is not a large increase. 8 th.«Udi.Z'„'r'a^vi'ul'„™^StTs.T •"'!"?« • ^"■P'ri^n between The expenditure for 1900-1901 was ^.„o ^n ^q The expenditure for 1899-1900 was. . . . '^r-r,'? f^ ^"' tZonTTp'^i^'^'^^^^^-'^d^heexpendi- ^ ''''"' '' ture on Land Registry offices, viz.: ^ . . $ 06,399 66 ture on SX'JyXTa^te^rl^^^ '", ''VT '^^^-^'o^trex'pendi- Justice (Salaries)^ In the folSfnTv/^v ' '^^}^^'^ °^ Administration of fer the vote for these oSs to the nr^n ^-^ '''"™"^ *^^'«*b>« *« trans- (Salaries). ^' ^ ^^^ P'^^P^'" ^^^-^'^^e. namely, Civil Government veryl'r^lrJ:f/;S"o?ret^^^^^^^^ ^^^•-es) by a 308, will be found a total §26 399 ^6 ^'""""'^ 1900-1901, plge year l^l^f j'l^^^riS^t^^^^^ ^^^'-^-> ^ ^^^0,932; this different rp^LTpa^^^^^^^^^ this year $44,195. The tion of voter^undi; Ih'e^rRelSS" tT' '^ "^ '"^'^ ^^^ -"-^^ Ihere is an increase of about .S4 Oon f^^\\ \r ■ Institutions, and this is necessar? on ac'connt oJ,-' ^^'^•"^"^"^^ of Public There is an increase of Sl,d00 for tr?? ?n"Tffi'" population, the Bureau of Mines, to be applied to hpw r.l„ ^ ^^^ *"^ '^2,500 for An increase of ^400 is made f orT ^p .material, etc. while expenditure on\cco "nt o?the Hos^LT^^^^^^ "'""^ '^^ ^*™'-P^ before. I have already referred o the exctfl.!?. ^' ^'''''"" ^^ *^« «^'«« ^« >-Utution under the alle supelTeiul^c^S^:. 7::ZZV. ^' ^'^ ^'^"^^ Public Works. down^at'l65loo'";i:t't"" \l '^' '•'"" "' ^^^'^ ^^^^s, which is put exceptional ou;iay%ndnlS^^^^ ZZT T ^'''''''' ''^'^ -« - demands. This ^'ear, howTe^ ft j^fe?' Jtl^r'T'"'^'' ^"' ".""'^''^"-^ expenditure should be reduced «nrJ f L ■ • *^'^*' Present at least the appropriations for 1900 1 9oT ^PProp nations arc $19,633 less than increL'eTtd^^ct'^^ ^'••"" ^^19,000 to S137.570. This of Health. ()w ngTthe pretieL^ T^'T' "^ '"^^'^^^ ^^'^ ^^e Board this year, which to^stLpoSre'red exp^vr '" ,^ ^^"^'^^^" ^"'«"- It was deemed advisable to place^a sum in Thl?' f' ''^" *' P''^'"?*^' measures, the health authorities to Ce tith s mi ^'''""*^«« ^^^^ient to enable special warrants. ^ ^^ ''"''''*'" emergencies without passing 9 Education. I now come to the consideration of the expenditure in connection with obTecThtriuon o expenditure by throwing the onus of cost to some increased from §369,000 to $412,140. .$369,037 Estimates, 1901-1902 Buildings 70,750 $439,787 Less six n.onths' collection revenue tax, four coast cities. 20,000 S419,787 Estimates, 1902-1903 Buildings .!?412,140 . 62,750 8474,890 Less twelve months' revenue tax, coast cities ^^'^^^ $434,890 An increase of $15,353 or 3.55 per cent. The expenses for education had l>een increasing at the rate of 10 per cent. Thes^e estimates provide for an increa e of 3.55 per cent., wh>ch ,s largely due to the measure passed at last Session. If the Government had been compelled to bear the -hole cast of edu^ cation in the 14 towns that have been placed on a similar footing to the tour c ast cLs of Vict<.ria, Vancouver, New Westminster and Nanaimo, the ^ttate would have la;gely exceeded the 8412,140 set ^ o- - In each of the 14 towns a large amount of the cost of education has hvd to be Wne by the citizens. That the new policy adopted by the <'Overnment has been successful, not only in this re.pect, but in o'^ers, is shmvn by the fact that from each of the Inspectors the department otLucatmn ha^ received information to the effect that interest in education has been Nety largely increased as the result of the Municipalities shouldering a certain percentage of the vost. , i- j The expense in connection with education is a difficult subject to be taced and the solution will not be found by reducing sahvnes - l---gj,'^e standard of education. The staff is economical and the department ably administered. Receipts and Expknditukes. I have now Mr. Speaker, reviewed briefly the various heads of receipts and JxpeTditure's, and i'ndicatk the reasons for increase -d decrease^^^a^^^ case mav be I have endeavoured, in a straight-torward and frank .""^"^^r; to pS the facts fairly l^fore you, without any attempt to disguise their 10 Sr r' hlvT ZeXv"o^-i asThtn f dr "•. '" ^^^^^^^ ^'^ servative view possible upon ^revenue t^.l . ?v. '^ ^'^ ^''^ '"ost^con- pointment. I c*cnceive iH^ Je bSLr "t' -H *"' "^ " ^ "° ^''^'^P" than to be too optimistic. There^re now '?' *° ""der-estimate rather consideration, which largely affect tre7nT^.tTi '"«"^'"' '° ^ t'*^^^" into I shall devote some attentio* ^"'^' °^ *^" Province, anu to which DvKlNfJ. debt cL^S fn'^onttiofwrtt .^"^T""""' '''' '^ ^^^ ^^^ the public The districts where dXnrln. ".°"«*'-»<^tion and maintenance of dykes Meadows, Sun.as and Surrey The trrfif ^ ' ^'""i^f k, Coquitlam, Pitt various districts enclosed by" dykes i 43 44^*^5 fu '^' ^^^^ "'*^"" ^^e he 30th June last for constructfon 5nl^ • '1 7- '"'^ '^^ *"*"' ^'''bility up to i« #757 567, and it i^ e:STj TtilT :T^^^^^^ required to complete these wnrL ^ I- additional sum of i?195,000 is will observe, is a larW sum nf ' "^^'^g * »«*«! of 1952,567. This you affecting the' lands afpes^ntasTeS' .T^T^^' ^^« P-"'>- -ndl'ti^on^ indeed for the GovernLit to dearwivr '"^^' ^ ^"'"^ ^'^i^"'* P''oblem interest on dykin<. debenTurefanr "^'^^'^ /ou will presently see The fune, 1901, /mounts ttS^ ' ZlZlT '"' ''l'^"?' "P *" "'e 30th Districts have paid in only ^1 stl -i i ^ • ^^'f **""' '^e whole of the above the dyking wo^rks f ro^ L t ntroi of Sn" "-' ^'''■^'' ^'"^^ ''^"^'"^ -er them on under Government super °^^^^^^ "\^^^9«' ^"^ '^^'rying money for interest on the coTof tr;o L toT™'"' ^"^ 5\^ '° ^^^^^^^ has only been recouped to the extent of7l 813 «« "" k""' «V^60,94.3, and the dollar. ""^ °^ •'M.Wld.HS, or about three cents on Under the provisions of the " Dvkino- T»^i . annual rate sufficient to provide a Jl' ^ ^f^«nt"'-« f^an Act, 1897," an the debentures was to beTnTposed eh,-"^^r? ^T" '!"' '^"^^ redemption of tie purposes of redemption ^^e on^mo^' '^' ""^'^ '^"^ ^^^ «^*de for fi^m the whole of thedvkin.r^;=f-?^ """^^ P*'^ '"to the Government fund account, arnourte'^ ?n ""1 "f '" ''' '''*^ {""^' ' ^«1' -- «^^kfng tection of the debenture holders that a.. i-T""""^' *^«'-«fo'-«. for the pro of the current revenue to p ov de asinkit fun^'^^r;.^'^""'^ he set aside out to do out of the new loan I shall nnf ^J ' tu^ '^"' '* ^■'" ^^ necessary to say that the whole matter of d^a in' wirTe t'TT' ^r^''^''' ^^^'^P' consideration of the Government ind tiU k1 ^j'^'f "^^.^fected is having the Commissioner of Lands and Work tho" in "^T "''^' '"*''"°" '^^ ^^e Chief n^ission appointed to examine into ITl reoo In^V? 'T? ^'•°'" '^e Com- mcumbent upon the Government as " matC^f . ^ ^^?^^ '"^"^'■- ^' *« m a comprehensive way and dev se .neTns f? '*' *" "^"^^ ^'^^ ^he matter IS no doubt that a former Gove'^e rw/^n T'T^ '''here Fraser River lands subject to overlw d^5 s. ""^^''^'^k to deal with the request of the landholders in thLrdVk n^di^tW '. '''/ ^"i'^' ""^ ** *he endeavour, not only to protect them but fnff?' ^"^ 1"*'^^ *" ^^''ne^t ^%aluable lands otherwise largely useless T h I u'' '".^'*^°'' ^"'^ "^ilising handled satisfactorily, and thatViSt J^^^:^:!; ^ Z:^;- ^' 1 11 I now come to consider the overdraft, -''-hat with interest on rail- wftv bonds and dyking debentures, it amou. d on the Ist July, UUl to 8871 in ^uu wiirren.omber last year that Mr Turner m h.s Budget Spee;h Filleted that it would be 61,000,000, and that at the end of the Hsral vear 1902. it would be «!l,.")00, 000. ... I wil give you Mr. Turner • own words: "I w 11 not. cnti.-^- -^length the poircy o^- my predecessor in issuing only half .he loan he .as »uth,.nsed todSini899. I consider, however, that poh y wrong Our credit then wa. g<^ and money cheap. Our three per cents durmg the y*;- we"" a^ p-u^ and in 1898 had been 10:i. Only part, however, was issued, and now it would be d fficult to get 90 for the ren.ainde •. The result of this is that on .W h June next we shall have a liability to the bank of approximately a null.on dollars and by 30th June, 1902, a million and a halt. , .., ^ " We hav^e now a Loan Act before the Hou.se which provides alx,ut a million for Public Worls, and there is still power under former Acts to Itut another million, but as I have alreadv hinted, the presen tis a nmst unfa, ouroble time for an issue, owing to the conditions of the ' '»' ^J J.ar^et^ This is clearly shown by the fact that British consols which in loJJ, >.ere 112 Ire now 96, whilst British Columbia three per cents, ^hich were up to 03 are now on y 90 or 91. The Bank of England rate, in 1S99, abou 2 ier 'c^t., is now'4.1, and has recently been .0 per cent and may ««- S'-P; Ijnde.' these conditions it would certainly prejudice he credit « ^he ^m vince to go into the public market for a loan, l^^^*"^ ."'r^*^ "^^/'l^V^ ,7" ment therefore to make arrangements with a chartered bank for an ovei- draf ' pendhiglpplying for a loan. This will place the Government in the favouraUe pJ^itionof being able to issue whenever a good W;.^";;^^ «|^«-; thus removing the difficulty of being forced to i.ssue at a certain date, w hether the market is favourable or the reverse. ' ,. . ^ ., ,^ „^„_ ^,.j ,„ It will be .seen how very accurately he predicted to this Hou e and to the coun.ry what the needs of the Prov^^nce wouhl be, tor, ,^1 ad before, the overdraft, 30th June, 1901, was >«871,1-1, and cm .Wth June, 190., *^'^Many people have criticised the Oovernment for not borrowing under previous Un ^Acts to cover this overdrat^. The times wen. untavou.-ab e for converting a floating into a fixed loan, tor two reasons. These ^'f *' T unsatisfactory state of the money market, due to the war, a.jd he -ha we would have had to use up power under three old loans, the con_ . ot which vary ; whereas a bill will be introduced m due course to extmfe-.sh or consolidate the powers taken to borrow under these^Acts. 1 can very easily show how the Province has saved money by not borrowing in th^e then^state of tho market. Our stock was then , noted a 90 Ind 91 It, is now quoted at 92-94. 1 do not say we can get 93 b.r it ;' a new loan, but I d'o say tha. whatever we do get will be pe. cent^ better than we could have got in December. Now we pay the bank 4 per cent on our overdraft. Our lixed .lebt costs us 3 per cent., so that the difference between floating a loan now compared with December works out as follows : — ;j.>0 aaa 2 per cent, less on #1,500,000 -k^us 1 per cent., 6 months, on ^1,500,000 ''''"" ... . Tj • .....?22,500 Saving to Province ' 12 is aii^Ltc^rd :ir;„tur«iraLV' VtrTra -^'^^ ^^« — 30th. 1902. it is estimaSTwHl^ «" J68,'oOO "^ '^' "'^"' ^^*'' "^""^ New Loan Proposed. Hnd to provide for works of n^ ^"'^'"T 'I" '''"'*«'' *« "««' ^he overdraft at the present irirftyurjl^'^^T^ The Government hj^ of 1901, to issue o,* or several In *' ^"^^ including the Loan Act ei,878,952.00. TheTJLtrar: n^f^t^ '" '^'^ •'««-««»^ ^ Under the Loan Act of 1891, £50,000 " under the Loan Act of 1899, £234 -'30 Praser nter Brid^" ^^' '^^ ''''' ^'^^^^^0 for the construction of the dition^gornTngl'San^^^^^^^^^ '^ "f,""'^ T" *«^'-*- '^"^ ^^e con- the posiLn has been iru„rtilct^rvT'/'^"''*'^^^^ ''"^y' «° ^^at these reasons, and owing t^ThesLT^tLT *" '^' r^^'^ ""^''•^«'- *^°'- ernment last fall came tS consider th«- ."^^ ""''*'*• '^^''^ '^^^ «ov- to defer action untTtirmS of th T'","^ * '^" '* was decided better could be submitted repS nrevinJ T^^'l'^'""' ^^^"^ * "«^ ^o*" Act authority was con^rned^^nd^taE .^*': ^''' *" '« ^*'- ^ *he unused to the amount reou^d namely tLrl^n-"*^, n '''"" ^'^ ""'"''^J^ "«- loan ow.ng to advicesLmUdotVhe "mS^^ ' '"*^' T' "'^«' ''''' such as to justify a flotation Thl^J / **>« money market was not Columbia seiuritiL, buftsecurli s.ener"l *PP^^ -P«"«»y *« British of the war, which had advanced the nrf^^^^^^^ unsettled financial credit The Governn-nf TlT '^"^ '" ^'""^ ">— « at an early date a measure as SuiioZ7 7' therefore, proposes to submit to issue a loan to Zeltenl:{Zt''''^^y^^^^^ dollars, subject to the us^a condLo„rwkh n'" "\'^''' """'^" "^"^ * ^^'^ or otherwise as may be deemeTrnor„;i k^T ''^ '''"^ "' inscribed stock market. It may Z that under thl '^^'^^^^le when a loan is placed on the borrow in New York or omeoh-^P'"'""'^-""^'^ '' "«"'d '^'^ -*««'• to depend upon the besVadre ^ t tuJnlTa'Tt^' '"h '' "'"' 1 ^''"^•^•^' ^" On the question of issuing another In«n' T^ ^^^ Judgment of financiers, some of^ vhom are fin^dal men ind nth ^T^ ^^' ^''"" ^^''^ ^y critics, financial condition of th" Province Ij^''! T^V^''" ""'' <^">"««™ing the ^*nd also in London, wl^re Xrse ^HH "" • ^'f . ^"" '^'^ '" ^^'^ ^«""fy effect upon the credit of tl p^^: ^.r^^tou^ the ^fl'^^*'' '^^^ I'' ^''''''' dition of our finances, and it has even been hinted aTth T"'''^''''''^ ^""- verge of bankruptcy. Now in the tiZt-^t ''l • i. *^*^ "^^ ^^""^ on the the Province in London wLre our i^^ ^l !' ''l'^ '° '■^^^'' "" '^^ ^"-^dit of loans have in the past ITn'rC ^ted it'' I '^"^'"^' ^"^ ^^^^ "- of the various colonial securitS, for th« . « ^^"^ * comparative list taken from the official stock nuoLtronsT^^^^^ five years, which have been credit, so far from being ^raTeTuZ.I ^^ . T" '^T '^^ * ^'^"'^^ ^^at our fluctuations of the stoc\ ^ar^k: ^tt tp^ 'd"d °"°"'^' ^"""^ '"'^^^^^ .;onsols and colonial securities acco^Xl. „« T 7'' '" ^^^'P^^hy with ditions which affect all similarly ^ '^^ '"^''''"* ^^ ^^'"^'^^ ''y con- 13 IS>I7 lis»!5. !»«»• Vmi. 11*11 to Jiini'.W). Hltth. i/w. Hijch. Low. Hlifh. l-<>w. HIkIi. Im*. Hl|{h. Low. Consols 1134 11« H^i 1<«^ '"4 »"^ '<''"'l ^^ ""^ IT: \Tw. n.3p.c.. 104 lOOA 10:H ».V 101 A ft«V "01 »H mi 9H NewZealpnd ... KW W)l 101 .\ 9«.\ WM »*i »'* »« »**i? "'< ^e^ZT::..:: um »7i mmj iwi- 9»5 ;« m.a j«.4 iu^ ^ .South Australia 113^ 1(J9 llO.i l(».-.i l.W,' H4 10, y UK, »4i »-J Victoria '*'^A ''•'i ''^ "'^^ l)on.inionofCana.la.. !OS.i 102 10" W. 1.4^ m m 97 lOlA »«l British Columbia ... . lOT.J 100 I04.\ »S UH-i 91.i JM ftji J^J JJU (Meilec"''''* ■■■■::■ ay^ im ai^ oi' 'jU' ssi o«^' ss s».s m- Ceylon. ..'^^.. ioTi' i04 wl 110 104i lOo' 101 9S ^ «7.i The present price of consols is •)3.^9.j'{ and of B. C. securities 93-94 (since risen to 96). From 3Lst December, 1900, to .Ust Deceml-er, 1901, consols dropped 3i points and New Zealand 3 per cents dropi^d 3| points, while B. C. 3 per "cents only dropped 2 points. You will see, therefore, Mr. Speaker, from these (juotations that so far from British Columbia securities beir ; now, or at any time, discriininated against, they have occupied the same relative position throughout. This is undeniable, and it is nothing short of, I was going to say, criminal, t». endeavour to injure our credit by such ill-advised criticisms as have been made. Comparing our stocks with consols, wv find that British Columbia securities are actually frc \ i.', to 2 per cent, iii a better position than they were tive years ago ; nd, of course, consols must be our guide ii; matters of such comparison. We lUst borrov. in order to develop, and to pay interest o> cost of developmen we must tax. We have, however, the sources of revenue in sight, and in 1903, when the Finance Minister rises in his place in this House, he will be in a position to state that he has no deficit to face. The financial ability and status of a Province must be determined by several conditions, viz. : — Progress and development ; Amount of liabilities ; Revenue-producing powers ; and. Ability to meet increasing demands. It will be seen that British Columbia has developed rapidly and sub- stantially in population and production, and that in the face of many physi- cal obstacles. Its per capita debt is largely exceeded by that of the chief colonies of the Empire, and by many of the principal countries of the world. Its revenue, derived from a very low rate of taxation, had it been limited to actual necessity, would have been more than sufficient to meet expenditure ; but the phy JaX character of the country demands extraordinary outlays in order to furnish means of i^cmmunicatJon, promote settlement, and provide facilities for development— in other words, rendering resources available. Its ability to meet increased demands is dependent upon an equitable return of its revenues to the Dominion for local purposes, to enable it to develop its enormous resources and the large per capita wealth also dependent for reali- sation upon further development. 14 Devklopmknt or Province. folio Ji'i'g:'!"^ '" development of British Columbia i« ,hown by th 1881. (cenwiB.) .Nurnber of miners 2 79:* Number of fishermen ....... l^'soO Number of farmers 2381 Number of houses Q99-> Population ; ■ ■ 49*459 Jietvnuf,-- 1891. (cen*U8.) 4,591 3,798 o,874 16,775 98.175 1001. 10,000 23,000 10,000 30,000 177,272 1871. « 192,000 Export* — 1871. *1, 912,907 Impiirtx — *1, 790,352 1881. 1^397,035 06 1881. 2,255,753 2,489,246 I8))l. *1,038,237 95 I8»l. 6,199.280 '•',477,411 «3,702,459 «4.744,999 fiet^enve, Post OJice— if"';; 1881. *i4,<05 $22,5 19 Jievemtt;, Customs — 353,865 601,000 By Province to Dominion— 376,318 695,330 Coal Mined — '^"4- 1881. . ^o"f. Tons. 81,000 228,000 #11,676,691 !8»l. $106,875 1,344,356 1,862,145 1891. Tons. 1,029,097 ltN)l. #1,605,920 1001. 21,645,000 11,137,436 832,782,436 1901. 1250,000 2,364,000 3,391,180 1001. Tons. 1,692,000 ^ff.Qregate Assessments Num£rfSls--*^''^-^''T '''''''T. '''''''^''' Number of teachers.. U6 24^ 'Ht Number of pupils 5,345 li,4S5 03 6i? ^nlTitels^" ^^*''' ^^^^-^^^^' *here were spent in- EduSltion .■;.■.■; ^ 528,000 Roads, streets, bridges anle to permit the gradual payment of arrears of land payments and taxes, which is being done. During the session of Parliament, 1900, an Act was passed enabling the Government to assess mines two per cent, on the value of output, less freight and treatment, and for the year 1901-2 and hereafter a very substantial revenue may be anticipated frou\ this source. This revenue had been derived largely from the llossland and Boundary districts, and the law had lieen unpopular, as owners claim their low grade ores will not stand such a tax. It has been suggested to go back to the assess- ment plan, but that was considered impracticable by the best authorities. A similar proposition in the United States was thus spoken of in the Engineering and Mining Journal of March 15th, and the inference to be deducted was decidedly favourable to our system. "The special session of the Colorado State Legislature has been devoting its chief attention to the framing of a revenue law which will meet the increasing needs and expenditures of the state, and also fairly distribute the weight of taxation. With this purpose in view, the question of taxing mines naturally takes a very prominent place; hence, these deliberations have been followed with peculiar interest, and not a little anxiety by those identified with this great industry. 10 "After exempting nil mine, from taxes of any character for a «»».*,! Virion . ?r,.. T«- l^'1'n.K mining ».,t» „f tl,e U«ky Jl,.unti.in tTrJ'T/f'^n '*'"'"' '^*'^^"^^'"'">*''*'«"«h a doubt WHS ixSd ai to .i...n. i„«„«, i;,„,„ ,„ ig«el;:r?hT„!:r;„\TLtii:rpr'.h« r. eitl.e, rLf.!!L!^ u ' ■ }, " *"8hly objectionable and deserves to be eithe.^ defeated or substantially amended by the Senate : - Ihat all mines and minins claims bearina an\A «;i..».. i«„ i 17 jind taxed like other property, iicronliiig to lh«' v»Iup tlw-reof ; and in HHcer tttining Huch value the AwtHMor fhail, in addition to other nHjuirenientM of thii Act, Ukfi into consideration the location thereof, the proxinuty to other mines or mining clainiH, and any other matter which aii\y tend t«» awist him in arriving at a fair and e(|uitahltf valuation of MUch property. "Ah an inntanceof the way this section in t-onHidered hy the mining men, Mr. James F. HurnM, manager of th»^ Portland Mine, is reported to have can- celled an order for ^^.'iO.OOO worth of new machinery, and to have said that if the law as al>ove <|Uoted goes into effect the mine will lie cl(meni one of th«! largest mining companies in the Koot- enays, and the plan placed before me by the manager would not only, in his opinion, increase the revenue, but populari»«<' the (iovernment in the mining districts. T will read the memorandum submitted by him. He says: " The plan proptisetl as a substitute for the _' per cent, tax is to tax all mineral claims, excluding surface improvements. The total amount to Iw raised is to l»e a definite sum, deternnned each year by the Lieutenant (Jovernor in Council, who shall, when the assessment rolls are complete, levy the particular rate necessary to secure this sum. " Details of assessment should l)e left to the Assessors. All that is wanted is to have unifornuty of method in all districts, and Assessors will naturally and necessarily do this. " The advantages of the plan are as follows : - "I. It relieves the (Jovernment of its ditticulties : "(rt.) By giving it more revenue than the J per cent, tax, and a iletinite sum which may l»e counted upon : "(fr.) By leaving the amount and rate for each year entirely in the hands of the Government : "(c.) By securing the credit for reforming a sjiecially unpopular and irritating measure. "2. It relieves the mining industry from the peculiar evil of the 2 per tent, i-ix, which is the fact that as lower grades of ore are rained the tax seizes increasing percentages of the net profits. This stops or limits all new enterprises for utilising low-grade ores. "3. It not only relieves the industry from this evil, but will, moreover, actually benefit it by checking another peculi.ir evil to which it is subject. This is the fact that ihe great majority of claims are held by idle speculators or stock companies, who are waiting for some other claim-owners to develop and thus create a market for their properties. They will not develop them- selves or make terms which will permit others to develop their claims. As everyone knows, the annual assessment work is a farce. Thus, each mining district, after the boom, passes into a state of hopeless paralysis from which there is no relief. " These owners practically , -axes, although if asked to sell they demand 810,000 to 8100,000 a value of their unimproved claims. Practically all the taxes. Dominion and Provincial, are now paid by the few ownc^ who are developing and improving and trying to put their claims on a paying basis. 18 r.al »ut,. Th«r. ,. ^mething to be «.id in th..t l«l,.lf, 'ut I .rZilJ :''t;X: r.r :o'ri:r::'„t'':;;r^M'";i:u7r!::':rrif ■■' hitherto »)eeri exemot whir«h fnr loni / """'"ver island, whuh had *6r)010 ' "^ ^^'^ '■"*•*"* priKluction, was «450,000 per annum ' ^"^ ''">■■ ?"«!"«'»« • revenue of coant^XI wh oh frtTZt , """* "" '•'!''"' y^' "'" "»°'"l"y outpnt^of ove; ?3'i?,X:'s,"s.'nrnrL:,,'r'rtirai^^^^^^ wnt. *'"'P*'^J' * P**^ <=«'»*•> income, 1 to 3 J per cent.; wild lands, 2J per ID ..♦ It hax •m-.ii il«f iiiei) in the |..»Ht wim' to iiiiiintain an low a Hgurf as potwi- l»U' for tlif purjMKHf olf •'ncourii;(iiiK iiivt-Htiiii'iits of riipital, ami for th« op<>ra lion of tnuli', intiuHtrv ami itimnu-nv, t>iit it will Ik* olwrv*"*! that thniw r»t«'M i^ht hi i\ without i» hiinli onii". litfconi I'Hovisi i\i, Wkaltii. |{fHp»'. (iiij{ th*" wciilt'i of the IVoviuie jkt heail of thf i»o|inhition Mulhill iiKluflfs in his t>«tiiniit<' of tli*- wi'.ilth of niition.H : birwlx, cattle, hoUM«'H, furmtui.'. riiilwiiys. shipK, uHTchiiiMlist', bullion, KumliifH, etr. Takin^j, th»'n'foi-.., the \iiiut' of MMiie of thei*«i fur ihitish Coiunihia we timl the value of .MiKceliuneous aiul indusliikl cstahlishMients ^ 1H,0,()00 Kl.'ctiii- li){ht and ruilwuys :J,r)0O,(XM) Tel..phom. I,0(H),000 Water workH 2.r)00,000 H lilways and telegraphs «'»'», r>(K),<)00 SteaniNhipsund navijiation ;},.»00,000 Mint's and smelters (inilu!tO,000,()00 for duplieations in as.se iients and public property, the prr capita wealth is .*1,710. The •' Mulhall Harper Comparative Statistical Tables " give the fol lowing in regard to the principal countries in the world, 1?<'.)6 : — IVr CnpitH. Australia •Sl,229 Cnited Kingdom 1,450 Oenmark 1, 104 Germany ' "t" France I.-IO Holland >^"*^ United States 1.123 Canada 775 The above real property, personal property, wild lands and incomes are taken from the returns of the Government Assessor, and the municipal assessments are from the returns of the various municipal officers. w There are 1,450 miles of railway in this Province, which oost, roundly, $60,000,000. Of the public lands of the Province, the area of which is 65,000,000 acres, only about 26,000,000 acres, or one-tenth of the whole, have l>een alienated, including Crown grants, land subsidies to railways, th(! railway belt of the Dominion Government and all other alienations. As the Indians, who number about 25,000, in round figures, do not dwn property, and are practically wards of the state, if they are eliminated from the population, placed at 175,000, leaving 150,000 upon which the estimates should be based, the per capita wealth would l)e raised to $2,000. The Indians, however, are in possession of a large urea of land included in their various Indian reserves, which is among the most valuable in the Province. Nor does the above statement for British Columbia include immense tracts of unalienated lands of which the Province is still in possession -mineralised, agricultural, pastoral and timber lands which in the aggregate, as already seen, amounts to about 265,000,000 acres or a public domain of 200,000,000 acres still untouched. Per capita trade (population 1901, at 175,000) is .*!1S0. Compared with this are : — Holland $262 Australia 169 Switzerland 121 Great Britain 98 Belgium Ill Denmark 75 Canada 71 France 40 Germany 41 United States 29 The population upon which the various amounts of per capita commerce are based in the above are those of the census of 1890 and 1891, whereas British Columbia estimated on the same basis would have a per capita commerce of $3^0 instead of -$180. But in addition to these considerations, the Province has assets of its own which represent value received. A statement I have had prepared shows that the nominal assets of the Province are $14,142,900. This, of course, includes public buildings and schools, of an estimated value of $2,090,000 ; 6,500 miles of road, with an approximate cost of .$6,500,000 ; 5,000 miles of trails, with an approximate cost of $1,000,000 ; wharves and bridges, $3.36,000, or a total of $9,036,000. These, of course, cannot be called assets in the ordinary sense of the term, because they are not realisable in the ordinary way, but they represent value, and in the same way as the works of the development of a mine represent value, or the improvement of a farm, and would have to be undertaken if not already in existence. We have in addition to that assets more or less realisable to the extent of over $5,000,000, so that the Province is far from being in a position which some of its financial critics would have the public believe. As a matter of fact, no other Province in the Dominion has so much available public wealth at its disposal or anything like the same private wealth per capita to be drawn upon in case of an emergency. 21 TlIK FiSIIKKlKS. Wcliavealso another asset,' which appears in our Estimates t».i« v^ar f,3r the tirst time, ami which up to the present tin.e has been .••♦^g'*"»«d 'vs exclusively the property of the Dominion. I refer to our hsheries In the Ve already appreciate fully the value of the salmon fisheries in the Iraser and other rivers, and we believe that in the development of the deep sea fashenes and the fisheries of our inland lakes, an additional fashery output wdl be obtained, as great, if not greater, than that arising from the salmon canneries^ We know the value of the t s Most Excellent Majesty. 1802.