Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697719764906.pdf (Canada)
MARCH 1, 1929 The Budoet-iUr.

Robb 58' THE BUDGET ANNUAL FI~A~'CIAL STATEMENT OF HON.

J.

A. ROBB, MINISTER OF FINANCE Hon.

J.

A. ROBB (Minister of Finance) moved; That ?olr.

Speaker do now leave the chair the house to go into committee of ways for and means.

Mr. SPEAKER; In accordance with the TulefJ of the house on Fridays the Speaker leaves the chair without Question put, but by this motion may he put.
unanimous consent Mr. ROBB; Mr. Speaker, the general _optimism prevailing throughout Canada has, during recent months, been so widely reflected .and !ltrongly cmphllSized in provinebl legiilo' }ative as~emb1ies, anoual reviews and financial sl.atcmcnts in presenting this annllal 'budget, little need be ~aid beyond submitting official fiJ/:ures which, when Ilnall'sed and com pared with the records of previous yeal'S, will sholv a steady and' continuous reduction of both dE-ht and rates of laxation.
that, The fiscal rellr ends, as hoo.

members know, -on thc 31st of March, coollequeotly, when on the 16th of February, 1928, the annual budget it wu ~tatement for 1927-28 was presented, necess.ary to make Bn estimate of the total -rel'enues and expenditurcs.
The public ac- -couots for that year have since been tabled and give in detllil the various revenues and 'expenditures and show that, after transferring certain old and doubtful assets and soldier settlement loan adjustments from active to non-active assets, the aetual Det debt reduction fOr the fbcal year 1927-28 ~'l\S 8-50,984,137.17, Fiscal Year 1928-29 Revenues For the fiscal year 19"..8-29, which ends on the 31st March, it is estimated that the ordin 'llry revenues will be ~50,OOO,OOO, which, with special receipts from reparation paymcnts of S3~~OO,OOO and receipts of 51,400,000 from the Imperial ~overnment in final adjustment of together with 142,000 mis dispUIN!
cbims, estimated tolM!

·celbneolls rCl'enues for the l'ear of ahout $154,942,000.
'This will be Ull increusc of some 125,OOO,0Cl0 'O"cr the rcvCllUCS for the year 1927-28. rcccipts, makes It is estimated th:lt customs rC\'enueS will ~)(> SIM,OOO,OOO, lin increase of 128,000,000 over the l,rCI'iolis year; excise duties 863,100,000, incomc tax $58,500, an itll'I'l':,sc of 813,000,000; "000, an incrcase of 11,9IXJ.OOO; interest on in "l'S11ll1'1l1.~ (including $1.500,000 interest derived lillrplus frolU temporary investmcnts of our cash holdings>, 111 ,600,000, 5660,000; and revenues S16,350,OOO, an incre:lse of 5840,000. from other an increase of sources Services which it is estimated will show de ercases lire; excise taxes, sales, sl.amps, etc., l\.
decrease of 18,700,000 from the $81,500,000, tax prcvio\ls year; delayed husinese profits 1450,000, a decrease of $500,000; Post Office $31,000,000, a dccrease of 1560,000; and miilo' eelJaneous services 12,200,000, II deercase of S370,OOO.

Expenditures Our ordinary expenditures for the ycar, Mr, Spcaker, are estimated at S355,2O(l,OOO.
This includes payments made undeT authority of the Maritime Freight Rates Act,_ 1927, of 12,992,000 to meet the twenty per cent reduc tion in maritime freight rates, and 14,303,000 to meet deficits on eastern lines.

It also includes 11,600,000 by way of special grantll tf) the maritime provinces, ~OO,OOO to be paid to the provinces of British Columbia, Sas katchewan, and Mllnitobll.

as the Dominion'!
as the Dominion'!

share of old age pensions p:tyments, and $2,190,000 to the Federal District- Commission under authority of the Fedcral District Com mission Act as amended in 1928.

The capital expenditures are estim:ltect as 824,150,000 and specia.l expenditures at $1,937, 000.

In addition, loans in cash to ihe Cana dian CO\'ernment Me-rchont ~1nrinc are esti mated at $1,000,000 and to the Qur.bcc Har bour Commission 12,873,000.

As these loans are carried as non-active assets the amounts the year.
are included as expenditures for The told estimated expenditures will, there fore, be S3S5,IOO,ooo, an increasc of 122,332,000 Ol'e;' the expenditures of the previous yelH.

Surplus $69,782,000 By deducting the estimated total expendi tures of S385,160,000 from the estimated total it will be observed revenUeS of 5154,942,000, the eslimated smpJus of re"enues over that all eli:penditures for the current fi3enl yea>: is 169,782,000. fOr Mr, Speaker, the convenienec 01 hon.
mellLLers, may I, with the conscnt of the hou3e, plsce on Hansa.rd a comparative ~'"Um­ mary showing the actual revenues and ex penditures by services for 1927.28 und the corresponding cstimated revcnues and expen diturcs for fiscal year; also a sta.tement of the estimated ordinary revenues lOud the eslimatcd cxpcnditun'S, h)' services, for thc prescllt fiscal year, togelher with their pcrcent~gcs to lhc total revenues or expendi turc:; ~" the cnSC may be.
the current 588 Tilt: 8m/art-Mr. Robb COMMONS Rl!venul!~ Oroinary Revenue Taxation Rev~nue- Customs Import Duties.

.. .... ...........

Excise Duties ........ ...... .. ... ....... ... War Tax Revenues- Elcise Taxes (Sales, Stamps, etc.)

.. .... Income Tax .................... .... ...

Delayed Ruein!!
Delayed Ruein!!

!lS Profits Tax... .. ..... Mu.ocllaneoull TlU:es... ....... .. ... .... ... ....... Total Revenue from TlI.xation........ InwTE:1ltoll Investmenta... ... ....... .. ........ .. Post Office Revenue., ........ .... / ........... Dominion Land6 lind Parb... .... .... ... ...... CaJUl.da Grain Act............ ................. Miscellaneous Receipl.ll........ ..... ............. Total Ordinary Revenue... ........ .....

Spt!
Spt!

()ial Receipl.ll Actual 1921-28 E3timatcd 1928-29 • 156.985.818 ,57.400,897 90,222,931 56.511, 647 956.031 2,569.018 364,705,802 10,931,822 31,562,580 3,688.695 2,677,818 9,145.306 • IncrelUlc • 28,014,182 S,999,I03 185,000,000 63,400.000 81,500.000 .

... 58,500,000 1,928,953 450,000 .


.. ... .... .... 2.200.000 ... ... ........ 391,050.000 35,942,238 11,600,000 662,178 31.000.000 ... ... ....... 4,ooo.00l 3,ooo,OOl 9,350,OOl 311,405 322,122 204,694 - Doo",," • 8, 722,~1 506,O:U 369.078 9,598, ---- 010... "'.
422,111,983 450,000,000 31,442,631 10,160, Germa!l Reparation Payments- Under Dawell Plall .............. ........... Arre&fll-Pre-Dawl!8..... , .................. Refunda or Previoua Year's E:tpenditure On War and Demobiliaation ........................ 204,9701 Re<:eived from Imp.

Govt.

in fiJUl.leettlement of disputed aeooulll.ll................. .. ........ ...... ·ijidi+ Mbcellsneoll.l.•............. ......... ........... 3,110O, 00l 491,W 3,002.048 3,189,430.
.... .. .... ... ..... ......... 42,OOl ..... ......... 1,400,000 1,«10, 00l ... .. ...... ... .. ... .....

Estimated Increase..................... .............. .............. 429,Bt7,552 464,942.

00l 39,340,599 14,246,141 US.

094, 448 Ordi..ury E:tpenditure 3,789,~ 162,914, 133,111 14,2-&ll,I41 128,002,945 39,778, lao 12,516,141 InWlrest on Puhlio Deby......... ............... Pen~ion8......................... .............. Subsidill3 to Provinces..........................
Soldier and General La.ud Settlement Adminia- tration ..................................... Soldiefll' Civil Re-eatabliabment................ National Revenue.............................. Post Office ..................................... National Defence ............................... Agriculture............................... , ..... Public Worlr._Chargeable to Inoome ...........
Ocean a!ld River Service ....................... Dominion Lands and Park•........ ............. Trade I,lld Commel'(l(l.................. , ....... ~ia1 Grant to Maritime Provinces............ Due to 200/Ereduction in might Rates..... astern Lines (C.N.R.)
.......... Deficit on Old Age Pensionl:l Act.......................... Federal Dilltrict COmmiuion ........ .......... ......... Civil Government ................... ........... Other E1pendiWres.................. ........... Total Ordinary Expenditure ... ......... aritime Freight Rates Act- 1,334,008 6,958,611 11,801,331 31,782,968 16,864,188 6,487,766 14,037,366 3,749, lOS 4,(182,752 4,016,1l85 1,600,000 1,353,466 2,117,936 131,452 11,676,140 38,077,072 336,167,9111 125,OOO.1lOO ............ '2,OOO,~ 12,550,000 2,221,810 33,259 3,902.941 1,400,000 7,900,000 13,300,000 33,250,000 18,000,000 7,390,000 17,110O,000 4,100,000 5,100,000 4.,600,000 1,600,000 2,992,000 4,303,000 800. ""
2,190,000 12,300,000 38,326,000 65,992 941.389 1,493,669 1,467,032 2,135,812 ",.m 3,462,634 950.895 1,017.248 684,016 1,638,535 2,185,064 "'.... 2,190,000 123,860 247,928 35.5,200,000 22, 93.f, ll84 3.902,Hi Special Expenditure AdjuBtment of War Claim•................... ,.

Miscel1&neous Chafll:u to ConllOlid..ted Fund.... 1,860,985 1,705,311 160,000 ......... ..... 81,(189 1,787,000 1,710,986 IMr.

&bb.l MARCIl 1, 1929 The Bur/aft-,Hr.


Robb 589 EJpcnd ituros-Coneluded -- Capital Elpcnditure Public Worh .......... , .......... .... ..... Public Works, Marine Dl']lIIrlmcnt ..... ..... Railwa~'s ..... ......... ............. Canals ..... - ... .......... ... .... .... ...... LoanSllrn!

Advances Kon-'\cti\"c C't\nluli:m Go,"cnHncnt Merchant Mnrinc.

.. ..... QueIJl'c Harbour CommiSllion ..... ...... .. ..... Actual 192i-ZS • Estimatcd 1928-29 • J nCll.

':lse • Decrcase ----- • I, 37~,f~~3 l,007.~M 3.


MH.

M6 IS, 762. tll)5 \, 190.000 ........ 2,760,000 6.960.000 13,2~I),OOO .... ... , ....

R52,.

'i36 3,3G8,354 183,633 522,91)5 999,837 l.458.ooo Sf>2, BZ7, U2 1,000.000 2,873,000 385, we, 000 ............ lfo3 l,oII5.000 ZR,G.

'iZ,7Z" G.320.~f>8 6,3~O,468 8urpl"s (II HcvenUC~O\'er E,penditutes_.
67,019,81 .... .......... Z2,332,2.>8 G9,7BZ,oool· ....... - ..... Estim~ted Ord!nnr)" RC\'cnucs for the Fiscal Y C,It l!IZ8-1929 bJ' Services with l'crC<'nta,e.es to T(ltnl HC\'cnUCI - - f:pcci,,1 \\11,.

T"x HC\,CllUC- Exdsl' Tn,c, (1;alcs, SU1ll1ps.

HC.)

....... InmH1C TIlX .. , ... Dc1:<)'c<l 1I".in('.

", J>~fils'T~';..... , ......... , Mistdl"ncous "1"'''e5.

.... " - ... ........ -- .... 'fotnl Sr.cdnl \~'Hr 1',,, HcvcnIlC .. ..... ......... r.u~tom~ ) "'porI Dutics ........ E~ciS(> Dutic~_.
... --- .. TOlal nC\"Chue lrom T:...."tion.

........... , ........ , ....

Amount , 81.

500,000 55,:.00.01'0 450.(-.

'lJ 2,200.000 142. f.5ll.

COO 111.;.000.000 63.400.

(JOU 391,0;,0,000 J'Cl"('lmt.~gc of t<Jtal Ile""",uc 18'1l 13,00 0-10 0·49 31 ,70 41·l\ 14·09 86·00 I ntf>rc"t. on I" ,·(',tmer.

t~.. Post Ofli"l' n~\·c""e_.

,._ Dominioll r.",aln:l'Hll'urk·s ...... ..... " , ..... " ....... , .

, ... .... , ..... , ..... ..... , .. , .


, ...... Ca",,,la Grain .·\,'t ....... Mis"ellllJll'<lun n~("l·;pts .. 11,600.000 31,00II.000 4'OO!l.OOOj 3,OlJ(l,OOO 2·,>8 (,·89 (J·S9 0·6e.

__9.

:1"0,000 ___ 2.08 'W'''''''4 100·00 - - - - - - - - - - - - - - - - -S AlI.ount I',·t"""t,,~ "I 1,,1 "I 1-:'llt'mlill1!C ],It-l!n·~t "" 1'1d,li~ J)cb~ (lucre,,/;!)

0\"<;1' 1(14) \\",.I'c"~io"".. _, .

R<,I<l i,·t,,' (:j\' il 11"..,_<[,,1,1 i"h """'t.

",",I,li,·,' 1.,,,,<1 :-;...

tl.


),·"",,,t Ad",i"i,t"'t,ioll .. 1"'1"'ri,,1 \1 '''' (: '" "," ('"", '" i"ni<'>11 .... , , .

llat,tl"lic!,ln ~l ,·)"",.i"k .. _._ Adj"st",,·ut 01 II"r (;I:oi",.•.

_ 11~,]()7,flIX) ,lo.r~X),IJj~J i.

~XXJ.

r~XJ 1,·H~J.rul ;'74.

rX~J ].~o, rXXJ ].-~I,(XItJ ?fl.


II Hr·;",l ?O!> U:lr, tJ· 1r, (1- u:; tJ'04 590 Tbe BurirJct-Mr_ Rob/' COMMONS Estimnt.ed Ezpendiwre" ror the Fiscal Year 1928-1\129 by Services with I'cTC<)ntilges to Total Expenditunl_ C(llldwded Other Fixed and Public Debt Charges Interest on Public Thlbt (as of 1914).... Other Pensions Superannu~tion Subsidies to Provinces Espen!le!l of Loan Flotations.

Premium, Discount and EscblUlge .

.

.

Ceneral ESpellditure .

, .

.

.

, .. , Charges of Management.


Civil Government .

Administration of Justice.

Lelialuian ... .., Penitentiaries.......... .

.. Agricul~ul'l'l Immigration and Colonization.

Health .... National Detence Royal Canadian Mounted Poliee .. _.

Public Work_Chargeable to Inenme., .. Railways and Canal_Cbnrgc"ble to Income.

Mail Sub~idies Ocean and River Lighthouse and Coast Ste"mboat Inspection .. Fisherie!l .

, Mines and Geological Survey .

Scientific InsLitutions Indians .


,., .. , Government of the Northwest TelTitories Goveroment 01 the Yukon Territory Miscellaneous..... National Hevenue (Oubide Service) Poat Office (Oubide Service),.

.. Public Work_Collection of Revenue Railways and Canal_Colle<:tion 01 Revenue Dominion Lands and Parks.

Trade and Commerce Labour Public J'rintinl!i.and Stationery .

Miscellaneous <;onsolidau.-d Fund Charges Capil.lll Expenditure- Public Works Fublie Works.

Marine Department.
Marine Department.

Railways Canll.ls.... ... " .

.

, , .

.

.

, .

.

.

.

.

.

.

.

Total Estimated Expenditure all.

Government Sen'iees.

Other Expenditures Maritime Freill;ht Rll.tes .

'\ct-Estimated amount required- Due to ZOo/ll-roouction in frei/!

;ht rates Deficit on l';aswrn Lines (C.N.

R.) ...............•....... .

Special Grant to Mllritime l'rovinecs... Old Age Pensions Aet .. .·OOerlll DiUricL Commi-ssion Act.
LoaM to Quebec Harbour Commission Loans to Canadian Government Merchllnt ~rllrine .

.

.

.

....::::: Pe~n~ of total Expenditure- 3·" 0·" 0·" 3'2& 0'02 H' 0·2oS 3'19 0'S7 0·62 0'47 0,78 0,,, 4'67 0·73 ,."

....

,."

0'3% 0·" 0·7oS 0,,, 0·02 O·IS 0·" Hll 0'12 0·" 063 3·45 5·63 0·25 0· ..

,."
1·19 0·36 0·" 0·46 0·31 0·" \·81 ,... 46·22 95'~ 0·78 1·1:>' 0·42 0·21 0·57 O·7OS 0·2& AmounL • 12.893.000 1.400.000 1,45<l,OOO 12,500,000 10.000 70,000 28,373,000 975.000 12,300,000 2,200,000 2.400,000 1,800.000 7,390,000 3.000,000 ".000 18,000.000 2,800,000 17,500,000 1,200,000 1,050,000 4,700.000 2,900.000 140,000 2,000,000 700.000 1.100,000 4.600.000 460.000 180,000 2.430.000 13,300,000 33,250,000 950,000 2.600,000 5,100,000 4.600.000 1,400,000 200.000 1,787,000 1.190.000 2,160,000 6.ll6O.000 13,240,000 178.lL8,000 369,402,000 2, ll'J2, 000 4,303.000 1,600,000 BOO.
000 2,190.000 2,873,000 1,000,000 Grllnd Tol.lll .

38.

'i, 160, 000 100·00 (;\1,.. Itobb.l MARCH 1, 1929 The Budget-Mr. Robb 59' is This added special !69,782,OOO.

Reduction in Net Debt 192&-29, 169,782,000 r.Ir.

Speaker, having dealt with the revenues and expenditures, the a.ttention of hon.

mem is now directed to the net debt of Canada b€rs the beginning of the present fiscal which, at the year, amounted to 52,296,850,232.
At close of the present fiscal year it is estimated it will be 12,227,068,000 or a reduction during reduction is the year of arrived at as follows: To the 194,800,000 sur plus of ordinary revenues over ordinary ex penditures of 14,94.2,000, being reparation pay menta and re ceipta from the Imperial government in final adjustment of disputed claims, thuS' giving & total of 199,742,000.

There are, however, cer tain other expenditures which must be de ducted to arrive at the net decrease in debt.
TJlese arc: special expenditures on account of adjustment of war claims and miscellaneous charges against conrolidated fund $1,937,000; capital to Canadian GO\'ernment Merchant Madne, 11,000,000; to Quebec Harbour Com mis.

;;ioo, 12,873,000, making a total of 129,960,000 which deducted from 599,742,000 will result in a reduction in the net debt for the present fiscal year of 169,782,000. expenditures $24,150,000; revenue.!

10llns loans tlle net.


debt was In connection with the debt reduction which the Dominion is again able to accomplish, may :lltcntion bc directed, Mr, Speaker, to Our re<:ord in that regard.

An examination of the public accounts shows that foc a period of fifty-six years, from confederation to March 31, 1923, increased year by year with lhe exception of the fisca'l years 1871, 1882, 1900, 1903, 1904, 1907, 1912 and 1913.
From tlhe beginning or the fiscal year 1923-24 to the en<\ of the present fiscal year, tbe net debt hilS annually decreased, the total reduction in the six-year period amount ing to about 1226,708,000, or a yearly average reduction of some 137,700,000.

For Public intere;;t nllturnlly centres in what Illis bC(:n accomplished in \he post-war period; may II Sllrvey, therefore, be made commen{}in" with the fisc;d year 1921-22.

The net.

debt thn.t.


year WaS inue:lSed by approximately the purposes of eventually 581,000,0()().

effecting a balan-ced bl1d~et, provision WlI!

made in the budget of HI22 for certain ad dition:tl bxa"tion.

The m:ljor increase was made in the stIes tilX where the rates were increased firty per cent O\'er tile then existing tax.

There W:IS ulso liD increase in the stamp t:lxes ha\'e been st.cadily de b.x.

to-<by they are creased :vear by year tmtil 1922.


COnsiderably less than the tutes of These imposed, taxes, were being Certain ot'her taxes, generally classed as manu facturers lhe articles affected confectionery, automobiles, cigars, a~ and b.eer and other beverages; these have since been repealed or tem<lved with the exception of the tax on ale and beer, cigars and part of the automobile tax.
revenues thus The additional rf'Cei\'oo, aided by economies in expend'itllres, in 1922-23 resulted in a lessened increase of net debt by $50,000,000 as compared with the previous year.

The following year tlhe era of surpluses and debt reduction commenced, and, as al the six-year ready stated, In ad peri~d has been reduced 1226,708,000. dition, through reductions in the rates of tax ation in force in 1922, the sum of $241,000,000 'has been remitted to the taxpayers.
the net debt for Retirement of MlI.tur.ing Leans On the 15th October, 1928, the five-year five per eellt rr'funding loan of 1923, amounting b &53,000,000 matured.

Previous to the date of maturity 120,866,400 of these boods were pur thus effecting a cha~d .in the open market, savlng m interest of $482,000.

The balance of the bond!t, amounting to 132,133,600, was ~ed.eemed in cash at maturity.

The saving m mterest resulting from this redemption will be 52,650,000 annually.
it have interest an annual Mr. Speaker, as the interest charges on the national debt are large, is a source of general gratification that each year witnessc.ll a .~uction.

Seven years ago, on the lst AprIl, 1922, interest charge on the annunl treasury bills out bonds, dabentures and sta.nding in the hands of the public, amounted to $133,482,113.

On the 1st.

April, 1929, we liability of will 1117,142,100, a decrease of $16,340,013.
'This saving in interest includes the redemption of our bonds held 'by the Imperial government which by agreement in 1923-24 were cancelled and written off against advances made by t:he Dominion to the Imperial government.

the 5j pCT cent to 160,000,000, loan of matu,rcs.

in 1\ be pO.

'>ition to take up this loan out of surplus reveuues lind thereby effect a further :.mnu;'\!

interest saving of $3,300,000.

On the 1st August, 1929, amounting government will l!l19, The lIud For the infot'malion of han.
members, i~ wilh lheir unanimous consent, a stalclIlrnt now placed on Hansnrd showing the outstitnU ing funded o~ ucad weight debt in the halH!.i In doiH~ this it mi;!ht wcll be of the public.

observed t~lat on 31st Mat·eh.

19)4, the deall weight debt \\':IS i.i $303,500,938, while the pulJlil: lo-day in t.he hilnds of debt the 592 COMMO:K3 S2,330,83:i,OSO.

It mr.:ms th,1t Ollr anllll:\1 m~ tr.rest ch:lI~e oi 51l7,1ol2.l00 on the funded oebt pl'c~ent this admini yr.:\r1y re\·r.nuc.,.
Thc polir)' of :I slth,;t.lntial :11\nll:11I."

rOl' stration 10 pro\·idr.

r('l'rf'~l'nt., O1l1'-<1\1;lrler of onr III llltl'l"est, l"(~Jllction .of.

the m:ttllrin,C; ob!lc;ations cauSE's in ou :\ 5ann,C; t :\.n<l P.1\'f'S th n:lIion:d fin:lllci:d rcpul;\tioll t:l:-.

:ation rcd\lction~ to\Var~ W:l.\· the pl'e~W:lr !cl·d.

:w 11l1[HOVemcllt illl'lhr.r for 1'uhlic D...,ht ::\bturinlt dates Ily years l"und~1 Debt Dat.cof maturity !\'"amc of loan IfJ2fJ Aug. 19::0 Fl'lJ.

Dec.

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'In 191!1-:!!!.


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.

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in C"n"da J'nY1I1llc ia ('anad" :1nd Xcw YOl·k.

1':\\".1,1'1 in !

'\(JI\" york 1'1\:l'al>lc ill London.

..... ,.

Ollar1nlced Securities Certain public services are a.sister!

or al treasury lind a brief lied with our n:ttion:tl financial commitments in the survey of 0111' the pr(!scut Montreal Harbour Commission and the Cann di:l:l Nation:\l R:li!w;ty 111:t)' be m3Jc.
connection with fiscal yrar in Montreal Hurbou1' Commission Dming; Ihe year the gOl"ernment guaranleed the ]\·rolltreal H:tl'bour Commis~ securities of {Mr, Robh.l AmOllnt lll:ltorinl( durill){ ya(l,r , GO, 000, 000 00 G.;, 000, 000 00 77,fl31,(iOO 00 7.1,.12.;,I.

'iO 00 Hli, 1j,'iS, 800 00 535,:m,856 Z7 874,lloo 00 40,000,000 00 32G, 400, no 00 Amount of Joan , 20.000,l)YI 00 45,OOO,1l00 00 2.i,OOO,OOO 00 .jZ,!

};;/,I~Jt) 00 , " .

.

.

.

~.~r:,~!J'J,S'iO ~O ~1O.


W!i,!lOll 00 11,071,230 lfl 18,2.;0,000 00 10.9.

'.0.000 00 1.;,O..')6,OOii GI; .

')2,327,23682 i6,OOO,0Cl0 00 IH,f1OO,ooo 00 !

",{l,OOO,OOO 00 45,000,000 00 4,SSS, 1S3 IH n',058,8..\loo lOO,f1OO,OOO 00 \l:l,\l211,666 66 :!,330,S,1,Ul!l639 .

. "

.. ' " ' " .

.

".

.

52,330.835.08639 SIOnel'S, ~s authorized b:y chapter 58 of the st:ltutes of 192·1, 10 the amO\1nt of $9,000,000, the raising of The secllrities were used ill money needed for the SO\\ th Shore bridge.
completion or the Can3di:1Il Nationo.l R:lilway Fin.

'lllecs With the ex(!eption of the p:tymcnls made to eO\'er deficits on the by the government eastern lines, no direct assistan~ WaS extended to the Co.mdian National RaIl· fimneial MARCH 1, 1929 The Budget.-Mr. Robb 593 way Company apart from certain temporary loana, since repaid.
The same situation pre vailed as in the previous year, the company's financial requirements being raiged in its own name, mainly with the guan.ntee oC the D1lminion, but, in part, without such guar· antee.

This financial position has been reached gradually.

In the early years oC government owneTShip, dcficits were met, the tines unified and the sy8tem rehabilitated largely at the Dominion's e:J:pense.

Latterly, however, de· ficits ha\'e b(!


(!n eonverted into a 8ubstantial surplus and the management antieipates that fur_ther improvements and exten'lrions, involv.

ing new CQpital, will be self-sustaining.

inclu In the calendar years 1920 to 1927, sive, pay· leaving aside interest nominally able on government advances but not actu· ally paid, the net defieits of the Canadian Na tional Railways amounted to S202,900.ooo.
In the Dominion the eotTCsponding fiSCAl }'ears, the sum of paid in cash to the railways, 1367,700,000. the government paid all losses and, in addi-tion, supplemented the eompany's capital by $164,800,000.

In earlier years, as hon.

members know, the com panies were operating as separate units and large advances were made by the government for capital purposes, as well as deficits.

Mr. Speaker, with the consent or <the house, the record for each oC the years 1920 to 1927 will be placed on Hansard.
In other words, Net Income Deficit of Canadian National Raih..aya, clclusive 01 intercu Government Payments in caah from Dominion do< Government (By fiats1 yeau) • • 123,.590,232 66,131,996 105.623.699 48.899.807 84,932,51\1 33,041,222 23.110,617 21,5J1U31 9.n4.45J 23,589,376 10,000,000 9,Wt,383 02.389,009 10.000,000 2.182,378 ............. 202,995,884 367,791,S8<l Calendar YC&r 1920.•... .. .... ]921 ... .............. ...... .. .
1922 ...• .. 1923 ...... .. .......... ....... ... 1924 ...... I92S •... ... 1926. , •... 1927...... .. ........... ........ o Surplus.

Coming now to the railway year recently closed, that is, 1928, the railway officials advise that arter paying all chargee with the excep tion of the aceounts of the company will show a SUrplUll of about $7,000,000.

This sum is, therefore, avail~ able to the company for capital purposes.
the governmcnt, int-erest due The interest due to the government, amount ing to over 132,000,000 for the year, is taken .

into the books of the company as a liability is taken in the but not paid.
As no credit books of the government lor this unpaid in terest, it may be left aside in estimating the outcome of the year's business when con· sidering the government's and the railway's fiscal relationship, In December last, the government guaran teed an issue or$35.ooo,ooo Canadian National Railway Company 4~ per cent forty-year bonds which were sold by tender.

In addition, the company borrowed S40,000,000 by way of chartered temporary lOans batik!.
to issued £nllnce expenditures on construction and bet terments as approved by parliament, and also to refund maturilll seeurities.

The following statement indicates the authorities under which these borrowings were made: from Canadian These obligations were 1927-28., 1925·29.. Rail",,·a~· Loan Appropriation, .

Raih'-n.v I...o»n Appropriation, .. BraMh Lines.


spceial Acts .. Toronto Terminals Rail""·ays .. .. Canadian NorthfOrn Income Charge Act, 1928 (refunding) Act.. .. .. .. .. .. • 5,900.000 00 32.S51,890 40 9,500.000 00 4,000,000 00 22.748,109 60 .75,000.000 00 the railways, The net addition in 1928 to the liabilitiea in the form of outstanding of long term and short date debt, amounted to the borrowings &44.soo,000.
The balance of effected during the year was required to pro vide for the redemption of maturing securi ties.

Forecast of Rc\'cnuea snd Expenditures Before leaving the financial accounts, some reference might be made, Mr. Speaker, to the probable revenues and e:J:penditures for the coming fiscal year.
Without bei~ unduly optimistic, the gov~ is warranted in anticipating crnment feels it that, to b~ the reductions llotwithstandinp; lIlIbmittcd in this budget, the rcvenu~ will meet all expenditure obligations and also pro vide for the rt!demption of the loan maturing in August next, The ordinary re\-enues Cor the present fiscal year have already been estimated at $450,· It is hoped the ordinary revenues 000,000. for least the coming £seal year will be at equal.
After making provision Cor the statu tory charges and maturing obliglltions, the expenditur~ have been allocated ,to lIlIch long deferred reo- votes as will provide for 78W4-38 u.-'HllllllnOIf 594 rile Blllioct-Mr, Robb COMMONS p:"Iirs :"Ind needed improvcmcnts to the public properl i{'~ and services, :\8 arc required by a growin:;; nnd prosperous country.
it Mr. Spc:lker, the volume of the monthly puulication of trnde sL,listics being avnibble to all, is unncel'SS:lry to pbce on record 3ny ext.ended st:"ltement of the Dominion'a In tJle first ten months of the extern:l.l trade.
the Department of National fisol Revenue reporLS total cxport.s amounted to import.s 51,187.400,000, which, when the total of $1,003,300,000 a favour:able tl"3de bl\lance of $154,100,000 for the wn months' periodo subte-Joeted, le:lvC$ )°c:tr are tl1lde of The remllrhble growth in Can:uia's external tr:Jde m3Y be itlustl"3l.ed by the fact that the fll\'oul"3ble bal:1nce just quoted is alm~t equal to the total export this Dominion thirty yelll'S ago.
It m~bt also be noted that a eomparison with the pre-war year of 191:;-14. shows fully mll.nuf:u:lured goodJ exceeded the total exporta of row, semi-m:lnufllcturcd :md fully manu factured goods in We year 1914.

Can:1di&N may well incrcase in take pride in the great thi.

!J Ihe per apia producinl; Dominion.

the 1927-28 exporta of ability of shows a credit the tolll.l eJlports of Unfortunately, 00 method haa yet been de \.i.sed whereby the ultimate destination of our export!

may be determined.
may be determined.

This is partieu lady true in respeet to exports of grains which, on the buts of l:ut )'ur'a st:ltistica, represent about one-third of the Dominion.

Vessels oftentimes obtsio c1ear llnce for the United Kingdom, but unload in Thus, while our export EmofX'!l.n porta.

records to Great Britain, the actual dcstinstion is some other country or countries.

The of both France and Switzerland illustrde this.


The import records of the French government show that in the year ended December 31, 1927, Fmnce imported from Canadn goods to the value of $28,400,000, but our records for the s~me period credit Ron UP0l't to Fmnce of approximately $11,700,000.

The Swiss records credit 117,000,000 Il.S the imports from Can ada, while ollr this export Dominion only sold S4SJ,000 of goods to Swit:erland.

trade records records state intcr--empire trade.


Canada, It is gratifying to note the steady develop the ment of pioneer of looks on the British preference, empire trade as the key-slone of its external tmde policy and desires in every way to foster closer trading relations throughout the British commonwealth of nations.
Throughout a period of years parliament has authorized the adoption of variollS eommercial treaties with foreign countries, and it will be reoalled that hut se.ion agreemellts with a 1~1 •• R..bb.1 into effect durin; number of countries were accepted.

These 'l\"ere form:llly brought the year.

Sufficient time has DOt yet elnpscd to these armngementa but jw;tify a. survey of the trnde reports show th3t in the fisc:ll' year 1927-28 Canada sold 165 million dollar.
worth of goods to countries with which we have en joyed most-fnvoured-nation treatment over a period of years.

From the pme eountriet Our purchases 1LI1l0unted to 103 millioo dollarso This record is a substantial improvemeot O\·er the fiscal )'ear 1921-22 when our ex))Oft.s to the ame countries had a value of about 82 millions of dollars and our importa of $7 millions of dollars.

that In 192t-22 the ('.


()neem of all Canadians wu that our dolb.r !hould be brought baek to the nation's pureha.siog power be p:l.r, substantiaJly increa.aed, that no man willing to that CanadiAu work be out of employment.

goods become firmly established on the inter_ national trading markets and tbat Canadiana, wherever they might be, would feel that the problems of each section were the mutual concern of all.

Our dollar is no longer at a depreciated val uatiou.

CllDadill.n., to-<h.r are: prospering.


Em is at a high level.

Our buic and plo,)"ment macufacturing indll5tries are producing larze qUD.atities of goods for borne consumptioll alld also for the: vast external trade outleta which ha\·e ~n developed.

M:LDy new tr:lde chan nels within the British commollwe:Llth are being opened and, the e\·er-in creasing number of countries .,..iLh which CaD.
ada ucbnnges most-favoured-nation t~at­ ment assists CaOll.dian business to establish permanently" made-in-Canada " goods on the markets of the world.

in addition, These, we believe, are fnetoTl which, coupled with good crops, h3ve materially assisted in the e~pansion of our basic induslriea, en coumged the enlargemell>t and exlenaion of in· dustries throughout the Dominion, and pro vided m\leh new business for Cnnadiao tfllXlt portat:on systems.
Our railwaya, relieved in some me:lsure of pressing financial problems through the general increase of bU!l'iness, are now in a posi~ion to exlend aervices lo parts of the Dominion where additiOllll.1 trnffic will add to their earnings.

Enjoyin,; such adva.nta;es and blew<!

with 0. fertile soil and vast resources, Canada haa many opportunities for developing a well balanced diversity of production within the Dominion as well ll3 .securing permanent trade channels with other nations.
10 ao far aa we have a fiscal problem, our task: would appear to be that of reA.djustiog.

as necessity arises.

Ollr cllstoms tariff schedules to meet new con removing inequalities where in- ditions, of MARCH·I,1929 595 The Budf/('I-loJr.

Robb quiry pro'·es !

;ucb t.o exist, of encouraging greater and more economical production of quality products, of assisting in the uti!iza· tion of domestic resources and, other things being equal, of favouring those countrie, which fll\'our our products.
In applying these prin· ciples, availability of 8upplies, transportation costs, and the proJ[imity of markets arc fac tors which must be considered if all are to benefit and the Dominion prosper.

the creater The constant up:msion within Canada· brings new problems.

We should recognite that this Generation has an obligation to build t(>.morrow.

The ex wi~c1y for pUlsion of business within Canada has in creased locol competition .nd interlocked the inl.cresls of many acti\'ities.
Add lhe prob lems arising out of lhe varying costa of do- mestic produotion, sourcea of supplie!, tt:l.ns· pertation cht~es lind the location of do mestic and external markets.
Consider as well the demands for tariff changes of various in terests, and it rna)' be of interest to note that there are basic industries applying to the Min illter of Finance for increases in customs tariff f3tes, also manufacturing industries applying lind we have an for reductions in schedules, appreciation of some of the domestic prob lems which must be considered in COllnec tion with any tariff revision.
The Advisory Board on Tariff and Taxa tion has lldh'ely investigated numerous re quests referred for investigation.

Many public hearinJl:s hlwe tnken place, and the spirit of the applic:'lnts before the boud, the frankne!!

of the diseuS!ions, nnd the impnl'tiality of the eommissionel'l have created a favourable im pression among the Canadian people.
It is appnrent is physically impossible for the advisory board to investil;ate thoroughly in a few montha the scores of ILpplication.s which have been referred ,to it and that time must elap.se before the I;overnmcnt can be pbced fact--finding.s, especially in those C:l.SCS wbere whole tariff schedules nrc involved.
possession thILt the of In it This Dominion continues .to bc ODC of the world leaders in the volume of its external therefore, problems arising in conriec trade; tion with our foreign trodc can never be the :years 1;0 by an increasing ignored.

As qunntity of Ollt domC5tic production must nece~rily be mnrketed abroad.

It is our de ~ire to trl\de frccly w~th nn,' flnd all who arc willin!

:" to tmde with us.
:" to tmde with us.

What mlly, or may not, be ]lOssihle in this particular necC5S:lrily depends in some mea!lure on the ,purch:l.sing pOw('r nnd the fiscal policies of other coun trirs.

The policy of this administl"lltion is not is a low tllriff policy.

it :l.

hi.!

!h t:lrilI pulicy; !H~ : -:,:/4 Its policy is to encourage production at home and the marketing of our excess of production abroad.

In applying this policy both domestic and international factors must of necessity be eonRidered.
the has and investigated, tariff changes In accordance with the fiscal policy of the to be sub government, mitted to-day nre designed to reduce taxa tion and to lessen the costs of production.

The chlLD.ges to be submitted arise!

out of refer ences which the Ad\,isory Board on Tariff nnd Taxation are balled on its fact--findings.
The hoard is con tinuing its inquiries, on which substantial pro gress hILS already been made, into several larger problems which in\·olve the considera tion of whole tariff schedules and the inter relation of many important Canadian indus tries.
While these inquiries are being pursued, opportlmity will be afforded {or considering the pemble effect on tt:l.de of chAnges being proposed in the tariff schedules of other oouo· tries, should they be implemented by legis lation, Dealing specifically 1\,ith the tarifT changes the resolutions now proposed in this budget, submitted prol·ide for a re\,ision of certain tarill items oi particub.r interest to Ihe min ing industry.
In aeeord!l::lce with the tradi tional policy of a!Sisting the de\'elopment of the rates of duty on our basic industries, certain machinery and equipment used in the mining industry have been reduced.

There have been various references before the Advisory Board on Tariff lind Taxation to those engaged in the fishing in of interest dustry and it in dustr}' further by placing certain articles on the free list.
is proposed to aMist that the tariff the horticulturol Representath'cs of indus try have st.ated that it would be of assistance rates were reduced on certain if apparatus for the purposes of bulb sterilization It is and determining the maturity of fruit.

proposed to reduce the duty on such Apparatus from 20 per cent the tariff, und from 30 per British preferen.tial cent to 10 per cent under the general rate.
to 5 per cent under Resolutions' will be submitted for your approval empowering the p:0\'ernor in council.

whf'll satigfied that copper b:'lfs are being sold lower price thaD ill the country of export at 0. for expOlt thc p;:encr~1 turilI, II duty on copper rods of one half cent a pound, 10 equnlite such differential as may exist.

lo Canad!l, 10 impase, under V:trious reductions lire submitted llITcctinl!
: ilcms of eonttrn 10 Canadian indu~tries and are recommended ria mc:\sures of :l.ssistance 10 producers in order Ih:lt Iheir cost of p~ ,Iuctiorl may be rt'dur:ed.

596 TM BurirJl':t-Mr. Robb COMMONS In nil reductions, where applicable, Briti<rh prefercllCe has OOD kept in mind.

the Mr. Speaker, a comparison of the fi!C31 repo~t.t show!!

th:l.t c:!ch YelIr our surplus has incre:l3Cd, although llntl\llli reductions Ire made in the I':l.tes of tantioo.
If the duty of pst li3ment were simply to preserve" baJsoce of the government re\'eDues over expenditures, might either substaDtilllly increMe the public undertakings, or, a.bolish some sources of revenue.

The rulional debt•.

however, cannot be ignored.

The snnual intereM I':harges 011 the funded debt amounting to over 117 millioI13 of dollars, are a direct aDd preS!ing charge It is a sound no the re\'enues of this country.
snd helpful policy to plan to reduce this non-productive outlay and to do that the Dstional debt itself must annually be reduced.

The gnv(lTomcnt is, therefore, again budgeting fOf debt reduction.

At the same time, following the settled tax policy of this ad-mininration, substantial is It ation reductions are again pro!'QSed.

in addition the intention of the government, to abolish as quickly as to other reductions, as pos!ible "ooiunce ta:le.5," and which affect the generlll public.
taxes generally known those Early in tbe war yean, under the Special War Revenue Act, a tax nf one per cent was imposed on iasuranef!

pnmiuma, other than life or mariae.

This tu: has been 8. heavy burden particularly farmers' mutuab and the hail insurance com panies.

This tax is no.
This tax is no.

abolished, «lmpa.nies, certsin to Anolher tax impo5ed during the war lrU the traMPOrtation tAx, a levy 00 rail"ay and at.eamship tickets, h is now felt this ta:l eanbe dispensed with ..nd, effective May 1, it is abolished, tbat Aliied ",it·h the ttan.eportation lax is the three cent tax 00 telegrams and cables, This tax was aim imposed during the war years.

It is another of the nui39.oce taxes whicb the government feels our !
'C\'ermes can do without, therefore, it is propoged to abolish it, The major reduction will be in the 8Illes tax.

This year a reduction of one-third of the tax is prop08ed, The reduction involves a large loss of re\'enue, but the tax is burden.rome and ita gradual diDppea.rance meets with general «lffimendatioo, Instead of a Oat rate, For many years there has beeo It tax im pMed oa the sa.le aad transfer of ahares of stocb.
is proposed to c1aaeify the t.u in four diviaiotle: on a graduated seale, ranging from oac cent to (ollr cenls Iltr Aha"" regl\rdl~ of par values.

The change will simplify the collecting of the tax the and at the same time will elmira thst it fl.1o.
RoWo I government receives a more equitable share of the proceeds resulting from the present_ dl\Y stock market transactions- The laxation C'hanges just mbmitted, Oil this year's ~imated te\'enues, revenue of the basis of represent an etim:tted loss of 3pproximately $25,000.000.
The p:1St fifteen )'ea~ hsve witnessed the disloo.tion of many in~rnational structures and the fin:mci"l stability or m"ny countries it DOt now measured by the pouible prod-ue inll: capacity of the citi.cDS, but by the degree of SUCCC:'lS with which theae national govern.

the demaods made menu are able to mect upon them.
Sometimes iaability to do so has interfered with general credit and h"lnpered indunrial and national expansion.. H:lppily Canada is not :!RIffering from such a blight, For six Nccessive yean the rigid application of a policy of spending less than was collected has made it possible for every activity of the Dominion, including all capital to be paid out of current reve upendilures, in additiO'll, to reduce the natiooal nues and, record hIlS Dot 0013" ell debt, the D0 hanced the international credit of minion, but hllll "Iso strengthened cormdcace in our domestic credit marketa, thus smooth the pfOvinees and private ing the way ror ent~pri~s, A hellltby busine$l txpaMioo, the gnvettlment reels, is or the greatm importaoe8 to Can:lda.
Thi~ fl3Clll it remains committed.

In drafting the fiscal program ror the com ing fi~1 year, the loveramenr.

has sought to CrT on the side Gf caution, The lightening of the burden of wation is, admittedly, a Doe policy, and to that prognam this II:OV ernment Previous tax atioa reductions ha\'c stimuillted busioC$i!

and is hooed aimplified public fioaucing aDd- the experience will again 'be repealed, but I is frankly stale that, prepared.
to en'Courage in every way the natioD..!l.1 progrC!\.S of ClD&da, the administra· tion will refuse to support any extravagance in the spending of the taxpayel'$' money, To the support of this policy we again solicit hon.
members in order the end of that at ano~her year it may again be round that, continuing to live within the public income, Canada is able to retire maturing obligations and also to make !till furt-her reductions in taxation, ,,-hile the go\'ernment I beg to give notice that when the hou3e I shall move into «lmmittec, resolves itself tbe following rnolutions; 1. n~h·ed, that It> am~lId to Thf!

Cu.tom' Tariff, !

;chedule _" heiug fnrty·fnllr of th~ Re.-iaed Statuue of eh.
:ll't-.r Can:",la, l!t2i, ;If amended by ch::r.pter seYClltf'Ct' il expedient it