THE CANADIAN BUDGET.

Otago Daily Times, Issue 11455, 21 June 1899, Page 6

THE CANADIAN BUDGET.

(t'KOM UTJH UWS UOKSESrON'DENT.)

OTTAWA, May 3.

In some respects the Budget Speech delivered yesterday by Mr Fielding (the Canadian Minister for Finance) was encouraging, in others it was disappointing. In so fai as it told ot the marked progress and prosperity which Canada is at present enjoying, the speech was eminently iiatisfactory, but, as regards the eft'ect of the preferential tariff, what the Minister had io sny was not so gratifying. To a certain section of the Liberal party, those ivht pm thei'. laith to thb Freetrade platform adopted at the Ottawa Convention in 1893, the Ministerial deliverance oannoi but be most disappointing. The Conservative opposition claim • that the casting tariff, save the preferential feature, is their own iv another form: that the Liberal Government increased' the duties on many articles, which, is true, and then humbuggeo. the British people by offering Uieiu * induction ot 25 per cent. The principal effect of this method of procedure, the Conservatives maintain, has been to benefit thb United States rather than the mother country. Mr Clarke Wallace, ex Minister for Customs, and a leading member of the Opposition, lias, in regard to v number'of articles, analysed the effect ol the Ministerial tariff policy, and it certainly is a telling indictment. He points out that with regard to cotton prints, which Canada imports from the mother country in the proportion of 4 to i as compared with the United States, before giving the (preference of 25 percent., the duty was increased from 30 per cent, to 35 j>ci cent. Similarly on the item of braids, cords, fringes, tassels, etc., all of which are imported largely from Croat Britain, the old duty was 30 per cent, and the new duty 35 per cent. In the matter ot linens, brown or bleached, the duty was increased hilly 25 per cent. On towels the. duty went up from 25 per cent, to 30 per vent., on handkerchief:) from 30 per cent, to 35 per cent. ;. on damask of linen napkins, etc., from 25, per cent, to 30 per cent-, and so on ad' infinitum. Then Mr, Wallace points to the other side of the shield, and shows how the Government reduced the duty on many lines of imports, the greater portion of which come from the United States,. For '■. instance, in many classes of iron manufactures the reduction was very great, and to the advantage of Canada's neighbour. The best answer to Opposition criticism, which the Minister-for Finance could make yesterday, was that as between the Uuiii1 of the present Government and their predecessors, the average rate of duty on goods, dutiable and free, had been reduced 2.14 pei rent.

The Freetraao Liberals are distinctly disappointed because no tariff reductions are promised this year. Indeed, it was not the intention, the Minister said, U> propose any tariff changes at all. Mr Fielding admitted the present tariff was not perfect; far from it. There -were several reasons, howevei, why it was nut advisable to make any changes. In the first place there was a certain reasonable necessity'of tariff si ability "in the interest of business. Again, m the, tariff of 1897, the Liberals legislated not. only for the moment, but for the future, and as ■■that tariff only came fully into operation in August last, the country had a tariff only nine momhs old. There was another reason—viz., that the Joint High Commission r/as e>o reassemble shortly in Quebec, when Irade matters would be taken' up. Tl had been said that the people of Canada did not waul reciprocity; perhaps thai, was putting it- a, little too. strongly, for there were pecplt neai the boundary and people down by the &ea who' would always be at a serious disadvantage if deprived of the trade relations-which. Nature intended them to have. , Yet Canada was not so anxious for reciprocity as a few years aco. Canadians wero now devoting themselves to cultivating the lionie market, and pushing their tirade iri England and abroad. However, the commissioners would be going to Quebec in August """Co endeavour to make satisfactory trade" arrangements with our American brethren.' If that were not possible Canada would go on her way cheerfully, and work out her own development, for there was but oile feeling in the country —namely, that Canada would have a fair treaty or no treaty at all. This sentiment was received with general cheering.

Treating of the financial condition of the country, Mr Fielding- said the past year had been the most ( prosperous in rthe history of the' country. The revenue for 3897-98 was 4e,555,238d01, being dol more than he had estimated for, and 2,725,459d0l more than the revenue for the previous year. "/The increase in customs duties was most pronounced; in very few linos had there been; any decrease whatever. Oh the consolidated .fund the total expenditure for the year was 38,832,525d01, somewhat more than had been estimated, arid 482,000d0l more than the expenditure for the previous year. There had been a considerable, reduction in postal expenditure, due to the businesslike methods of the Postmaster-general, the revenue having increased 324,871d01, arid the expenditure reduced 214,066d01. a 'total betterment of 538,937d0l as regards; this; department. . The consolidated fund. revenue last .year

amounted to. 40,555;.238dp1, and: the ex

penditure, as stated, to 38,832,525, leaving a surplus.of 1,722,712d01. , Deducting this surplus ..from "the capital, expenditure, including railway, subsidies and 930,822d0l expenses of the loan, there had been a nef addition to. the debt during the year- of only 2,417,802d01. But .with the approaching completion of the canals, and the termination of other large expenditures it was hoped that these debt additions would be henceforth decreased.

Coining to the current year, and adding to the revenue and expenditure up to April 30 an estimate for the. nixt two months based on last year's figures, Mr Fielding estimated the total revenue for this year at 46,632,398d01. the estimated expenditure being 42,026,028d01, thus leaving an estimated- surplus of 4.600,000d01, in round numbers. This surplus, owing to the buoyancy of trade, might be even larger. The capital expenditure for the current year he estimated at. 8,022,795d01, so that," deducting the .. estimated : surplus and 2',355,000d0l of sinking fund and interest from the capital expenditure, there would be left the sum of 1,700,000d0i added to the net debt during the current year. . This estimate lie considered an outside one, and the increase of debt might be less than that. After referring to the appreciation of Canadian securities, to.which he attached some importance, in view of the early maturing of a, considerable portion of Canada's debt, the Minister proceeded to refer to the fiscal year 1899-1900, but contented himself with merely informing the House that he found it difficult to make any prediction whatever, or any further statement than that the Estimates now before the House, show an increase xof 563,484d0l over those of the present year. The Minister then referred briefly to Canada's new El. Dorado. The Yukon in 1397-8, he said, had yielded a revenue of 1,G45,490d01,. and had cost in expenditure 698,032d01, leaving a considerable balance to the good. For the 10 months of the current fiscal year the expenditure had been 1,146,581d01, and the total revenue 795,757d01, thus showing an unfavourable balance, but it was expected that receipts would come in before the Ist of July that would more than make up the deficiency.' Speaking of the growth and prosperity of the country, Mr Fielding pointed out that during the 18 years, from 1878 to 1896, Canada's foreign trade had increased by 57,666,000d01, while during the two years, from 1896 to 1898, it had increased | 66,000,000d01. Our mineral production, which in 1896 amounted to 22,584,513d01, rose last year to 37,757,197d01, an increase of 32 per cent, over 1897. As to the business of the past year, Canada was certainly to be congratulated on the. evidences of prosperity and expansion to be seen on all hands. Deposits in the chartered banks and Government savings banks had increased since. 1896 from 230,000,000d0l to 270,000,000d0l last year, and on the Ist of . March this year amounted to 297,000,000d01. Returns of bank notes circulated, life insurance, railways, etc., all told the same story of prosperity and progress. Moreovei, comparing Canada's foreign trade with that of the United States, it was seen that the. former amounted to 56.29d0! per head ot thti population, an increase of 20.06d0l during the past 30 years, while the foreign trade of the United States wjis now 24.6Qd01

per head of the population, an increase of 7.30d0l in 30 years. During the past two years Canada's foreign trade had increased by 11.60d0l per head, as against an increase of only 1.25d0l in the United States.

It was regrettable to learn from Mr Peilding that the- preference given to West Indian sugar last year had not accomplished much improvement,, .although the Minister thought'he saw a rift- in the clouds. Without such a preference, Canadian trade with those islands might.l have been entirely destroyed. The fact was, the United States customs regulations' gave a preference to cane sugar over beet'sugar almost amounting to the Canadian preference of 25 per cent. ; therefore, whether Canada could do n very largt trade, .with the West Indies under present' conditions is problematical, and it might become necessary to take steps to-improve it. ' The Minister at this point made an announcement of great importance to British, shipping. He said that British and Canadian'•Vessel's"had been put to a disadvantage by-the application of the United States coasting ■ laws ; to Porto Rico, which prevented foreign' vessels carrying freight from those ports to the United States. But he was glad to state that orders had just been, sent by. the War department at Washington to the Governor of Porto Rico to permit all vessels, domestic and foreign, to load'-and clear for. the United States.

Discussing the result of the preferential tariff, Mi- Fielding held that no matter how high the. duties; were in the general taxifi, there was still a genuine reduction 01 one-fourth to the .British people under ths :: preference. - Not •- only the British manufacturer, but" 'the States manufacturer, understood this quite well. Taking the invoice.of- one Montreal merchant for about 12,000dpl worth (j-f dry goods, he showed- a---saving- of -700dol in duty under the,'preferential tariff. He had been assured that the-extra, cost of transportatiou'was equal to about 10 per cent, of the duty,', so ."that'-in any event the British' producer had a- net benefit of 25 per cent, over the/ American' in. Canadian markets. It was tme .Canada..'imported largely from the Unite'a States', ./.bii'tVthese imports were chiefly raw.materials,: which England herself imported. -And besides, with a 25 per cent; pVeference. in.his.favour, it was theBritish merchant's fault if he did not take advantage of it. One reason why he did not was .that for sonic years the British manufacturer was so;busy he had no time ■to expibit new ■"'markets'.' Another was that Canada was not represented-by importhouses in London, as.-,were. the;. Australian colonies.; The -, reduction "in duty during 1398 lindei" the /preference was 634,715d01, being the difference 6,549,428d0l actually ■ collected on;-British goo"ds last year, and what would'have been collected ; under the 1896 tariff." of 19.35 per cent.— namely;..7,lß4,M3dpii:'--vWhat-.' the preferen-' tial. tariff ,had, dbne ; ;"was to .arrest .the decline in our imports, from England, and to increase' it last y.eatjby. three millions of dollars, and this year, by-another two mil- | lions.' •■■..■. "'....-.' ■ v;".:iv>'■:: . ■ <•.',: ■ .

The Opposition was prone to haip on the accusation that the Libeials had destioyed Canada'.s chance of obtaining a piefeience jn England Jt vioulcl ceitainlv bp «m advantage to (J mtida to have a. piefeience on hei giain Hl did -lot say that, it would neve, be given In fact, lie legaided it quite probable ; but it would never be biought about; by any diekeung by the Cou^enatrves, but thiough the liberal spmt fosteied by the present Government by mean-, of its preferential tariff Tliat might nuke it possible, for the lieart of the Bntish people was touched, and now the British consumei is willing to giant a piefeience which he vould not gne at the dictation of the Opposition—the prefeience was in the heait of the Bntish people It was <.hown m the fact that our tiade with Gieat Britain liad mo eased by 36 per cent , while that ot th<- United States with Great Butain had increased hy onl\ 10 per cent And m the maitci of immigration they weie giving Canada the prefeience by sending the oream of their immigiants to this country. In conclusion, the Minister for Finance utteied a word of warning to the Canadian people He said • " Let me say .that 'Canada has much leason to be proud of the position she occupies to day" It h a splendid exhibit of her financial and mdustiial condition which A\e are pennitied to present to the woild But, bir, m the midst of all this piosperity I Mould -venture to utter a word of caution It js said that one of my predecessois rh'ofh.ee* at a time 'when trade was fairly prosperous, advised business men to ' clap on all sail " I can as&me you,

sir, ,tha^ I -woijl'd iratheriutter a: word .of cautionTin \ .tlie"; spiritr' of' Kipling's "Lest we forget ; vle'k°-vVe'forget.1 In the 'midst of this.-'great "prosperity I would remind

my hearers that the-conditions which have brought it about cannot be expected to prevail always. It will'hot constantly fall to the lot of a Finance Minister to make such an agreeable/statement as I have had the pleasure of submitting to-day. We cannot always have good crops and good prices. Conditions-at-home and conditions abroad may be such as to bring about a check to all this prosperity.--- T}\e experience of the

past...teaches .that. the.pendulum which has now for" two' or .three.'years been swinging strongly" in 'Cana'da's * favour, may soon swing back. It will <be Veil, then," if our national housekeeping. and m the business world, we .endeavour.*to .make a wise use of. our present' opportunities, so that when less prosperous times- come to \is—as come they .will-—,we,:shall be able to bear them easily. Let our -ainv be, not to have what is--commonly called -a "boom" in trade, but to lay. strongly" the: foundations of our business so that Canada may move steadily forward in; 'all things necessary for the welfare of. hec . people" and the advancement of her, position as the greatest colony of the greatest Empire;in the world."