Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697722196784.pdf (Canada)
1748 Questions COMMONS held in regard to the POllt office of Hopetown and St. Francois d'Assiset.

county of Bona venture, Quebec, on the instructi01lll of the Post mallter General.

FOREST CITY, N.B.---CUSTOMS AND IMMICRATION OfTIct:RS Mr. VENIOT: For a copy of ali applications and corre- the report of the Civil ,!pondence, as 'well all Service Commi.ion, in connection with the appointment of customs and immigration officen at Forest City, New Brunswick.
1AYNES PILE DRIVING COMPANY Mr. REID: the report of Mr. Brydone For a copy of at Vancouver, Jack, supervising British Columbia, into matters in connection with a dispute of wages on contract work let to the JaynclI Pile Driving Company, on the south river, Britillh Columbia.

enj'tineer Fraser jetty the of GRONDINES, QUE.-UGHTKE£PER ~h.
DESROCHERS, For a copy of all correspondence and reports in connection with the dismissal of Charles W. Laganiere, of Grondinel, lighthouse keeper, on September 11, 1931; al80 a ltate- ment as to whether or not witnell8el heard before Mr. Leon Methot in connection with this case were under oath.

as .

D£SCHA),IBAULT, QUE.-POS'rMASTEB M,.

DESROCHERS, For a copy of the report of the commi.ioner.
and the evidence ~ven at the inquiry held at DC8chambault, on January 30, 1931, in connec dismissal of Mr. Ferdinand tion with the Dussault, as postmaster of that place.

MANITOBA SAVINGS BANK reports or M,.

WOODSWORTH, For n copy of all documents, ~ettcra, tele gramll, or other communications or memoranda, between the Prime Minister or the Minister of Finance and Mr. Bracken, Premier of Manitoba, relating to the Manitoba Provincial Savings Bunk.

corrCflpondence M,.
corrCflpondence M,.

WOODSWORTH, For a copy of aU document., reports or other letters, teI~ grams, correspondence or communications or memorand-a, between the Prime Minister or the Minister of FinAnce and the representatives of any of the chartered banks, relating to the Manitoba Provincial Savinp Bank.
RAILWAYS AND SHIPPING On the orders of the day: Mr. H. E. SPENCER (Battle River): Can the Minister of Railways and Canals tell the house when the special committee on railwaY3 and shipping will be called to meet?

Hon.

R. J. MANION (Minister of Railways It is called to meet to·morrow.

and Canals>: [~1r.
and Canals>: [~1r.

Marcil.l CANADIAN NATIO~AL RAILWAYS SUNNYBRA£-<lUYS80HOUCH BRANCH UNE On the orders of the dar: Mr. WILLIAM DUFF (Antigonish-Guys borough) : I should like to sddress a ques tion to the Minister of Railways.

Under clause I of chapter 34 of the statutes of 1929, respecting the cOD!truction of a Canadian to National Guysborough in the province of Nova Scotia, the completion of construction must be ·made prior to August 31, 1932.
Is it the intention of the government to extend the time beyond that date so that the railway may be com pleted?

from Sunnybrae railway line Hon.

R. J. MANION (Minister of Rail I shall give an answer to ways and Canals): the hon.· gentleman to-morrow.

THE BUDGET ANNUAL FINANCIAL STATEMENT OF THE MINISTER OF FINANCE Hon.

E. N. RHODES (Minister of Finance) moved: That Mr. Speaker do now leave the chair for the house to go into committee of waya and meana.
in moving that you He said: Mr. Speaker, the purpose of for do now leave the chair enabling the house to resolve itself into com mittee of ways and means, to make good the supply to be granted to His Majesty for the fisca.l year ending March 31, 1933, may I at the outset cr&\'e your th0ge imperfections which are bound to appear in the discharge <i a difficult and onerous task on the part of one w.ho has been Minister of Finance for but a lew short crowded week!.
the more appa-rent and my task the more difficult when viewed in the light of the brilliant achieve ments of my immediate predecessor in office.

This review of the year's financial operations impeTfections will indulgence for These be will be made under five headings: .

(1) A brief reference to events which have so profoundly disturbed international finance reactions on our own and the consequent situation; the dominion for (2) The financial operations a-nd accounta of the f1SC81 year ended Ma!
'ch 31, and in thif regard it.

will be under· stood that the fi~urea nre not final but repre sent the closest estimates that can be made; (3) Cana.da's trade and commerce; (4) The e8timate'd revenue and expenditure for the fiscal year 1932-33, and for to meet and means (5) Ways requrred revenues expenditures.
securing the estimated the APRIL 6, 1932 li49 The HI/dyet-Mr. Rhodes in and prices Canada, the most Throughout common with The past year was replete with financial difficulties and problems, many without pre eedent.

other in the midst of a period of nations, was declining diminishing revenues.

During the summer, coming events began to C:lst their shadow over international finance.
The crisis in Germany, foHowing quickly after important the collapse in May of b:mk in Austria, brought sharply to the p.tten tion of the world the need for international action upon the \'exed question of reparations and inter-governmental war debts.

The pro fo'!'

a ODe year posals of President Hoover moratorium were heralded as a signal for returning world confidence, but the optimism was unfortunately short lived.
Although the debt holiday was lu.·cepted after some delay, its effect was parti:lIly lost in the controversy which served only to emphasize the difficulties of the situation.

Meanwhile, the climax drew near, brought on by a repatriation of credits and consequent withdrawals of gold from countries whose reserves had already been reduced.

the world, gold was ceasing to be a medium of exchange, becoming instead a commodity to be jealously guarded.
The pound sterling became daily subject to lest and finally the world was startled by the annollncement on September 21 that Great Britain had been forced off the gold standard.

She was .followed in rapid succession by many other countries.

In the United States, prob lems arose as a result, on the one hand, of hoarding by individuals, aDd, OD the other, of the effort of their great financial institutions to build up their "liquid position."
The fall of foreign exchanges and the dumping of sec\lrities brought on practically a demoraliza tion of the Investmf'.nt markets.

It goes without saying that these events had a peculiar significance for Canada, a d-ebtor country, having at the moment an trade balance.

Our exchange lInfavouroble could be maintained only 50 long as financial operations, based upon Donnal conditions and confidence, were resulting in a net inflow of money.
Between October 1, 1931, and March 31, 1932, the dominion, provinces, municipal ities and semi·public bodies, had, it was esti mated, S72,OOO,OOO of debt maturing in New York or London, and, in additioo., $80,000,000 of external interest c:ha'fges had to be provided.

Added to t.hese, there were the debt" of oor porations and individuals.

With these obliga tions to be met, the disloca tion of external money markets presented no inconsiderable threat to our credit fl.broad.
Steps had been taken on September 8 to improve our position in New York by the the sale of opening up of negotiations for from Q in Canada, syndicate which $50,000,000 dominion guaranteed bonds of the <Atuadian National Railwa.ys which at tha.t short-term credits time had S37,OOO,OOO or borrowed in that ma'Tket.

The best tender was purchased $25,000,000 outright and took an option on the remainder.

The issue was popularly priced, and the option was exercised.
However, much of the buying was, on Canadian account, and it was necessary to a-rrange for partial settle· the consequence beling that ment to avoid a serious disruption of the already sensitive exchange situation, only part of the New York short-term loans could be paid off, leaying $18,500,000 to be renewed.

Following the decline in sterling, the Cana· showed -continual depreciation.
d-ia.n The Jow was te6Ched on December 16, when ftlods was the 241 per that, DOt withstanding of to stabHize exchange at Canada., any: effort par wit·h gold could not, under conditions ·then existing, be successful.

Our policy was therefore directed to accomplishing two re· to ensure the prompt payment suits: First, of all obligations due abroad according to contract and, second, to as.<;ist in maintaining normal currency .and credit conditions within Canada.
premIUm on N€w York realized cre<Ht It woas high position dollal" cent.

the On the 14th of September, the govel'Dment commenced buying the gold production of the la·rger Canadian mines, on a basis approxi mate to the value of New YQrk funds.

ThiiJ i~ gold has been used to meet obligations New York and has been sufficient to keep the dominion out of the exchange market, and at times to provide external gold funds for· and provinces.
From the viewpoint of Ca-nadian commerce, the policy was generally advantageous.

the National Ra-ilways With respect to the internal situation, the needs of industry, of crop-marketing agencies and of public bodies harassed by· falling revenues, made it obligatory that credit facili ties in Canada continue to operate smoothly and at reasonable cost to borrowers.

Also it there be no flight from was imperative that the Canadian dollar through fear of inRation.
This could be accomplished only by main taining domestic confidence and by preserving a reservoir of credit which could be drawn u'pon to meet any external crisis.

It was sUCe cessfully accomplished under a policy author· ized by the order in councilor October 19, which, while maintaining redemption the Dominion Notes Act, per rights under mitted the export of gold only under licence is.<ruable by to chartered banks.
On the 19th of October, the note issue, including those issued under the Minister of Finance the 1750 The Budget-Mr. Rhodes COMMONS the note issue, the Finance Act, was SI44,468,571, and the gold holding represented over 45 per cent or the face value of the is!Jlle.

On the 19th or including those March, 1932, issued under the Finance Act, was 1142,896,193; the gold holding represented over 45 per cent.
The number of licences issued to March 1 was 182, representing gold to the value of this amount $19,839,286 was 128,969,566.

Of on the Dominion's account, being gold pur chased from the mines; the balance was the property of miners, banks and individuals who deal in gold.

Well may Canadians look back with satis faction over what has been accomplished.

All external debts have been met on the due dates.


The $72,000,000 principal amount of exteroal debts, payable by the public bodies of Canada and maturing before March 31, was provided for partly by repayment and partly by renewal, but at this date only 133,000,000 of the original amount is represented by debt owing abroad, and this balance is so arranged that orderly redemption can be carried out without embarrassment.
The holders of Cana dian securities with obligations for external payment have received their 80 millions of interest as it became due.

This to~ether with the strength of our banking system and stability accomplishment, exhibited' of our financial institutions generaUy, bas con tributed greatly to the return of confidence, as the Canadian dollar in the exchange market, and in the higher quotations for Canadian public securities.
improvement of in the Revenues 1931-32 The finllncial statements published from mon~b to mont.h during the ,year have indi~ cated that, in Cl>ffi.mon with all other couI1ltries in the world, we have experienced a marked decline in taxation revenue, which represents approximately 83 per cent of the total receipts of the government.

Of the major sources, the income tax alone has brought in approxi mately the sum estimated, having yielded $61,000,000.
Customs receipts fell 'to $102,800,~ 000, reflecting the drop in the value of im.

ports occasioned by a number of factors, such as the further decline in prices, the unfavour able exchange rate as regards importation!

from the United 'States and generally the policy of encouraging produCtion in Canada.

taxes will be receipts 5273,300,000, a statement of which, together with the comparative figures for the previous four years, is now submitted.
froro total The -- Customs Import Duties .................... Elcise Duties.............................. War Tal Revenues: Banks ................................... Trust and Loan ComPllDies ............... Im~urance Companies .....................

Delayed Business Profitil ................. Income Tal ..............................

Sales Tax ................................ stamp, M.anufacturers' transportstioD tale5, etc•..............................

Taxation Revenues om.


'tted) (000 1927-28 1928-29 1929--30 1930-31 Estimated 1931-32 $ 156.98l) 67,401 $ 187,206 63,685 $ 179,430 6S,036 $ 131,209 57,7(7 $ 102,8Ql 48,688 1,225 ... .., '56 56,571 72,100 1,408 1.243 • .... ..... .

.95 '" 59,422 63,646 74 173 69,021 44,859 1,429 1,397 .

...... ... .

.

.

.

.... .


..... 74 ............ 34 3 61,000 71,048 41,271 20,784 18,123 19,361 18,560 13,951 18,098 273,348 Total Receipts from Taution............. 364,706 395,921 378,551 296,276 Public Service Revenues Collections from the various public services, is estimated, will it total $54,000,000.
Post office, which is the major contributor under this head, will show an increase of *1,500,000 due to the raise in postage rates and because postage stamps may now be used for certain excise stamp taxes.

The post office revenues are estimated at $31,748,000, as against ex penditures estimated at 134,550,000.

This does not include disbursements made by other de partments on account of post office, nor doee it, on the other hand, give any credit for (Mr.

Rhodes.)
Rhodes.)

handling the mail of the various branches of the public service free of charge.

the- boards, including Interest on investments, being payment8 from harbour etc., commissions, financed by way of loans from the Dominion.

regular by payments and it is estimated will Roumania on its loan, total 110,000,000. included the is In this interest paid by the chartered banks for ad vances under is estimated will amount 8.!1 com· pared with '$539,984 last year.
A five year comparison of the revenue from these public services follows: the Finance Act, which it to S360,247, APRIL 6, 1932 1751 The Budget-Mr. Rhodes -- 1927·28 1928-29 1929-30 193<>-31 • Can, Grain Act ..........•....•....•....... 2,677,877 81,243 Can.
Gazette .............•........•....... l,aM,677 Cnllals ...................•....•....•.... "'" 3,626,236 Casual .............................•....... Chinese Revenue..................... ...... 14,179 3,688,595 Dominion Lnnd9 ........................... Electricity ....... .

.

.

... .

.

.. .

..... ...... .... 563,913 Fines and Forfeitures...........•........... 568,140 119,144 Fi~herie!!.......................•...........

85,716 Gll!!
85,716 Gll!!

Inspection ............................. 123.768 Insurnnce Inspection ........................ 10.937.822 Interest.
on Investments.................... 191,564 Marine ..................................... Mariners' Fund ........ , .. " ............... 222.... 20,232 Military College .... " .... " ............. 128,017 ~Iilitary Pension Revenue................ " 14,206 Ordnunce Ls.nds.,., ..... , .... " ........... 495,792 Patent (lnd Copyright Fees ................. 177,933 Penitcnti..uies ..................... , ........ Post Office........................ , .. , ..... 31,562,580 Premium Discount.
and Exchange.. ........ 594,211 Public Works ....... ....................

39.

';,281 6,144 R.C.M,P.

Officers' Pens............ , ....... Supenmnun.tion Fund ...... " .... , .. , ..... , .
172 Weights und Measures.......... , ........... 361,690 • 2,992,540 80,214 1,230,333 4,041,095 18,224 4,070,339 563,964 655,485 109.300 92,398 131.626 12,227,562 182,810 236,808 20.204 155,830 24.830 530,239 178,449 30,611,9604 568,846 414,085 6,373 81 399,247 • Estimated 1931-32 • • 2,047,207 93,890 1,043.647 4,300,710 14,345 4,139,104 M6,9.57 748.343 IIO.724 100,763 138,780 13,518,205 184.637 209.322 19.820 ]58,881 30,277 574,918 181,024 33,345,385 531,366 408,151 6,471 5 2,179,047 1,4.35,054.
71,197 71,229 981,963 1.026.671 3,678.487 4,035,864 21,996 11,633 1,655,401 486,974 632,151 389,405 433.716 241,326 73.937 40,197 75,513 94,2'" 148.942 150,993 10,421,224 9,997,357 199,000 137,358 201,768 186,018 19,882 20,045 159,000 159,991 29.384 13,769 559,646 522,846 183,288 145,086 30,212,326 31,747,750 521.026 2,754,526 362,391 358,083 6,357 6,871 ..... ............ 4{l7,248 .... 4io, 750 400,455 Total Non-Tax Revenues... , ........... 58,012,180 59,542,M6 62,860,180 53,310,842 M,370,206 Having aeeepted Speeial Receipts the the moratorium in respeet of inter-governmental debts, our receipts from German reparations annuities were reduced to 51.001,570 applicable to the period prior to the lst of July.
principle of This has been supplemented by $6,000,000 received from the custodian of enemy prop- to the disbursements erty and taken into our aeeounts as a partial from the eOD offset solidated revenue fund in respect of eom pen.sation damages sustained in the war.

to eivilian!
to eivilian!

paid for The following is a comparative summary of five-year revenues over the last the total period: Summary of all Revenues (000 omitted) -- Rereipts from Taxation .................... Non-Tax Revenues...................... ... 1927-28 1928-29 1929-3<) 193O-Jl • • • • 364,706 58,012 395,921 59.543 378,55] 62.860 296,276 53,311 Estimated 1931-32 • 273,348 M,371 Consolidated Fund Receipts .............. _. Sp('C"inl Receipts........................... 422,718 7,129 Grand Total.
.................. 429,847 4M.4&4 5,476 .60,940 441,411 4,771 349,581 6,622 446,182 356,209 327,719 7,022 334,741 Ordinary Expenditures 1931-32 The ordinary expenditures for the year are placed at $378,700,000, which is approximately SI9,OOO,OOO less than was estimated.

The expenditur.es on sen'ices for whieh provision is made annually by "ole aetually were $25,- 000,000, less than the amounts authorized by parliament.
On the other hand, certain statu tory expenditures., such 3S subsidies· to prov inces, old age pensiol18 and exchange, ex eeeded the estimate by $6,000,000.

Over $3,635,000 was in connection with ex change, mainly the premium on gold pur- 1752 The Budget-.ur.

Rhodes COMMONS chased from the mines.

This expenditure was largely offset on the revenue side by credits totalling $2,248,000, resulting from the sale of )lew York exchange and the discount on ster lin~ purchased to meet London requirements.
A further credit of $506,000 was realized in the purchase below par of sterling securities for sinking funds, which made a net expense for the year on premium, discount and exchange or S881,OOO.

A statement by services of expenditure aD ordinary account for the last five fiscal years is as follows: Expenditures by Services on Ordinary Account (000 omitted) 1928-29 1929·30 1930-31 Finance- .

Interest on Public Debt Subsidies to provinces Charges of management Premium, Disc.
and Exchange .. Superannuation Civil Govemment Agriculture Figheriea Immigration Indian Affairs Interior- , ' .

.

.

.

.

.

.

.

Dominion Lands and Parks Scientific Institutions Govt.

o( N.W.

Territories .

Govt.

o( the Yukon ....•............... .

.

Justice- Administration Penitentiaries Labour- Technical Education ...........•.... Old Age Pensions..............•....... General ........................•....... Legislation- Marine- Parliament ....................•...
Elections Ocean and River Lighthouse and Coast Scientific Institutions Steamboat Inspection ~fines National Defence- Militia Services Naval Services Air Services General ServiceII.......... .

Govt.

N.W.T.

(Radio) National Revenue Pensions, War, etc Pensions and National Health- .

.

soldiers Treatment and after-care of returned .

.

.

Health Post Office Public Worke-- Charges to Income Charges to collection of revenue .

.
.

Railways and Canalll- Maritime Freight Rate9 Act, 1927 Other Charges to Income Chargell to collection of revenue .

.

.

.

q-eneral Lan?

Settlement .

R.C.M.

Police Soldier !ll!d AdmlDlStratl0n Trade and Commerce- .

Canada Grain Act, Exhibitions, etc Bounties!

copper bars, etc .

Mail Suosidies and Steamship Sui> .

ventions Other EJ:penditures .

.

.

.

.

.

.

.

.

.

.

.

.

.

.

•128,903 12,517.

885 42 1,499 11,576 6,488 1,751 2,705 4,200 4,083 73.

250 17.
2,191 1,756 06' 131 314 1,996 45 3,749 2,771 270 131 624 10,152 1,702 3,892 116 143 11,801 '39,778 6,959 771 31,783 J4,037 943 3,471 2,367 2,535 2,300 1,334 4,016 83 845 6,385 •124,990 12,554 923 67 1,409 11,820 7,202 1,974 2,632 4,598 4,987 794 318 18' 2,203 1,808 1;152 833 365 2,264 62 3,683 2,813 288 141 6" 11,044 1,836 5,041 103 139 12,877 4J,487 7,902 92' 33,483 17,003 940 7,178 1,120 2,405 2,601 1,442 4,476 79 1,026 7,104 •121,566 12,491 1,016 73 1,321 12,258 9,287 2,214 2,157 5,135 5,480 817 '35 186 2,199 2,56.1 413 1,537 416 2,293 26 5,136 2,875 317 140 806 11,033 3,013 5,921 227 140 13,131 40,407 8,494 1,021 35.037 18,134 92.
7,401 1,280 2,460 2,902 1,362 4,8M 40 1,083 5,055 Estimated 1931-32 •121,163 13,695 874 3,635 1,148 12.181 9,275 1.922 I,SS7 4,861 •121,290 J7,436 920 19 1,238 12,628 9,144 2,262 2,255 5,866 4,970 817 "6 201 2,214 I ' 3,231 391 5,658 511 2,428 2,235 3,639 3,~92 368 14' 789 10,953 3,598 7,147 127 218 13,206 45,966 9,774 943 36,293 23,763 936 10,327 1,200 2,9Il 2,95ti 1,300 6,586 92 1,323 5,3t2 2.659 55037.

18.

2,216 2,808 300 10.251 353 2,779 127 3.824 2,620 4I7 14.
M' 9,802 3,2Hi 4,072•198 13,003 48,529 11.244 8.5 34,551 16,060 774 11,247 895 2, Il83 3,287 1,043 8,l37 145 3,025 5,038 Total Ordinary Expenditures... 336,168 350,953 357,780 389,568 378,743 (Mr.

Rhodes.]

APRIL 6, 1932 li53 ·The Budoet-Mr. Rhodes Capital Expenditures The amount voted for capital ex,penditures was $18,861,000, of ,which it is estimated $16, 975,000 was spent in 1931-32.

A year ago the expenditures on capital account were 128, 200,000.
Savings of 1000,000 were made by the Department of Public Works and $1,300,000 by Railways and Canals.

The .principal item3 of ex.penditure were: Hudson Bay railway, 15,215,000; WeIland can,al, $2,940,000; St. Law rence ri\'cr Clhannel dredging, 14,200,000; and the Research building, Ottawa, 11,700,000.
A five-year comparison of capital expendi tures follows: Capital Expenditures (000 omitted) - 1927-28 1928-29 1929.:JO 193()...31 Estimated 1931-32 Canals......... .. " ..................... " Railways ..... ................. .

...... ... .. Public Works ... .. ............ .. .

.

.

... .
.

.

... .

..... $ 13.763 3,592 3,281 20,636 $ 13,164 6.302 3,343 22,809 S 9,324 6,6<3 6,574 22,561 S 9,842 6,371 12,009 28,222 S 3,255 6,21)9 7,451 16,9i5 Special Expenditures It is est-imated that special expenditures will amount to $55,100,000, as compared with in ;the previous SI6,789,000 on, this account year.

The chief items are wheat bonus and IInemployment relief.
The wheat bonus will cost $11,000,000 as compared with the estimate made originally of 17,000,000" the increase being due to the fact the crop proved to be greater .than was anticipated.
that Unemployment Relie1 Act, 1930 A reference to the Public Accounts- will disclose that as of March 31, 1931, the sum of 14,432,000 had been paid on account of unemployment the authori·ty of relief under In the year now under review, the act of 1930. exopenditures on the authority of that act will, it is estimated, amollnt to 113,250,000.

This brings the -total e~enditure by the Domin the 1930 legis ion under of residue lation accounts has still the esti mated amount being 1400,000.
Unemployment and Farm Relief Aot, 1931 Expendi-tures under the Unemployment and into three divis the authority of to 117,682,000.

A small to be adjusted, Farm Relief Act of 1931 fall IODS: (1) Dominion sen'ices, the wlllOle cost of .

which is borne by our treasury; (2) Provincial and municipal public works, to which the Dominion contributes an agreed proportion and (3) Direct relief, to which also the Domin ion contributes a proportion of the provincial and muni6paJ expenditures.
services, Under Dominion expenditures amount.iog to 16,481,000 -have been approved, of which $3,765,000 will be chargeable to the .

accounts of the fiscal year now ended.

The distribution by departments is as follows; Public Works Railways and Canals Interior National Defence Justice Board 01 Railway Commissioners National Battlefields' Commission Agriculture... Administration .

: .

.

.

$ .

.

.

.

.


1.560,000 568,000 885,000 71,000 83,200 500.000 25,000 7,000 65.800 S 3,765,000 The program of provincial and municipal involves an eX'penditure esti ,public works mated at 570,469,67.5, of which t:he Dominion's contribution is placed at J26,.586,i63.
These undertakings are under ·the control of either provincial or municipal authority, and pay the Dominion's conlribution are ments of made only after the submission of accounts for duly certified by the appropri-ate e"'p€l.ldi-ture, provincial authority.

Under this head, pro vision is made in the accounts of the fiscal year 1931-32 for di~ursement5 of SI2,278,000.

The ,following statement shows a division of this program of works by provinces: 1754 The Budget-Mr. Rhode' COMMONS Unemployment.
Relief Works, 1931 Province Prince Edward Island ........•...•...•....•...•...•........... ~ova Scotia ..... " ........... _..•...•....•...•...•........... :-Jew Brun!IWick ..............•...•...•....•...•....•.......... Quebee ....................................................... (rntario..................•...•........•...•........•.......... Manitoba ................................. , ....•...•.......... Saskatche'\ll·an............•....•...•........•...•....•......... Alberta ....................................................... British Columbia ........... .................................. Total Works , 272.250 2,546,869 1,911,8'i0 14.612,975 27,869,177 6,565,495 5,519,843 5,171,225 5,999,971 Dominion Share , 125.000 999.923 749.692 4,643.808 ~.
790,833 ~,931, 987 2,759,922 2,585,612 2,999,986 Provincial and Municipal Share , 147,250 1,,;46,946 1,162,178 9,96\),167 J9,078,:Wl 3,633,508 2,759,9'21 2,585,613 2,999,985 70,469,675 26,586,763 43,882,912 relief, For direct the federal contribution chargeable to the 1931-32 accounts is e3timated 3·t $8,957,000, the major p3.rt of which applies to the drought a-reas in Saskatchewan.
To sum up, these special e~penditures for unemployment and farm relief in the fiscal rear 1931-32 will be 513,250,000 under the legislatioll of 1930, and 525,000,000 under t:he legislation of 1931, a total of $38,250,000, and the balance of commitments ·to be carried )ver into ·the next ,fiscal year will be 516,000, including .provision for direct relief lOO, Dot beyond the actual disbursements mentioned above.

The latter requirements are difficult to enimate as -they are gonrned by tho!
exigencies of the situation in the difl'erent provinces and it requires a considerable period ,after the act'llal relief .payments are made for the accounts for the Dominion's share to reactl ,Ottawa.

Provincial Financing.

Having dealt with expenditures for unem ployment and farm relief, it may be appro pri:l.te, while on the subject, to refer to further :l.ssistance rendered to provincial governmentl!l It is a matter of common by way of IOBns.
for knowledge that some months variou3 provincial bodies 'have been unable to issue securities on the New York market, where they have had obligations falling due.

In the credit of Canada as a order to protect whole, temporary assistance was given to cer tain of the oprovinces in meeting their obliga~ tions, but in no iMtance did bhe government undertake the role of 'banker with respeot to the redemption of maturing !provincial debts in New York until it w&.!!
satiafied that every other avenue had been diligentJy erplored by the province without SUcoe5S.

The sums ad vanced under this head total 111,637,190.

In addition to this amount, 510,794,000 was loaned .for provincial In those instances the share of relief worb:.

.

government's assistance was given as & part of its relief -program on the urgent representa~ tions of .the provinces that in existing circum.

stances their commitments could not be ful filled witibout such aid from the Dominion.
As the Dominion holds One-year treasury bills of the provinces and the rate of interest charged is that which the Dominion had to .pay for the money.

The loans by provinces are: internal purposes, includiIl8 security, - Loan.
covering obligations maturing in New York, Jlublic works governmental Loans for and relief Loans for services , , Total , ),Ianitoba: ...............•...•.•...•....••....... Saskatchewan ...........••...•....•....•....... Alberta ........................................ Britiah Columbia ........••........•....•....... J ,189, 185 3,934,341 3,142,000 3,371,664 :;00.000 J,794,733 ............ 6,500,000 J.OOO,OOO .............. 1,000,000 .

...... .

.
...... .

.

..... 2,983,918 10,934,341 4,142,000 4,371,661 11,637,190 4,294,733 6,500,000 22,431,923 f:\rr.

Rhodes.)

APRIL 6, 1932 1755 The Budget-Mr. Rhodes Including I08Dil and expenditures, Dominion di~bursements on account of unemployment relief and assi"tance to the prOVlOces, will total SOO,681,923 as follows: Actofl930 Act of 1931- Federal Services Provincial and Municipal Works............................

Direct Relief ".
Direct Relief ".

Loans to provinces (not including ad....ance payments on account of Dominion contributionsj- .

113,250,000 $ 3.765,000 12,278,000 8,95i,OOO 25,000,000 Manitoba.

Saskatchewnn... Alberta... British Columbia.......... .

.

.

.. .. .

.

.

.

.

...•.... .
2,983.918 10,934,341 4,142,000 4,371,664 22,431,923 60,681,923 A. comparative statement showing special expenditures during the last five fulcal years follows: Statement of Special Expendituree (000 omitted) - 1927-28 1928-29 1929-30 1931l-31 Estimated 1931-32 S S S S S Adjustment of War Claims ....... ......... " 1,861 120 110 Cost of Loan Flotations.................... 13 17 193 11 Miscellaneous Charges ....•................ 1,692 2,056 3,027 2,955 Reparations; Claims for Compensation..... ........... ..... .
...... 6,700 500 Unemployment Relief 1930................. · ...... ..... .. .......... .... .

....... 4,432 ............ .... .

.. .

.... .. .......... Unemployment Relief 1931.. ............... · ,.

.

.

.

.

.

... Wht'at Bonue............ , ................. ·... .... .... ...... ...... ........... ..... ....... .

..........

Reduction of Loans to Soldier Settlers...... · ... .... ... 2,187 86 1,336 3,407 1.027 13,250 25,000 11,032 8,599 ... ... ...... 55,138 16, ;89 ... .
.. 3,566 9,839 Loans and Advances Non-Active estimating Advances to certain corporatioWl, being non· interest producing, are treated as expenditures These in advances were three in number-$I,360,OOO to t,he IMerchant Marine nnd Canadian National Indies) Service, SI,495,000 to Quebec (West our debt position.
Harbour Commission, and S534,OOO in pay ment of interest which the Dominion guaran~ teed on bonds issued by the H,arbour Com missioners of Montreal in connection with the harbour bridge, There is now presented a five-year summary of expenditures under the heading of Loans and Advances, Non-Active: Statement of Loans and Advancee, Non~Active (000 omitted) -- 1927-28 1928-29 1929-30 1930-31 Estimated 1931-32 S S S S S .... .

.. .

.... .
.. .

.... .

, .. Loans to Canadian National Railwtlo~s..... ...... '58 Loans to Canadian National Steams ips ... Loaus to Quebec Harbour Commissioners.

2,888 ~{iscellaneous Non-Active Accounts....... ' ..... ....... ... .... .

.... Ac('.ounts carried as Active Assets trane- [erred to Noo-Aotive .................... 1 1,000 1,458 16,036 10,000 ..... .. .

2,933 .
2,933 .

.... 2,491 2,821 17 ..... .. ... 1,827 3,491 170 1,361 1,495 53' ........... ............ 18,494 13,646 8,262 5,488 3,390 1756 The Budget-Mr. Rhodes COMMONS The lotnl of $454,246,000.

nil expendit.mes for the year statement.

A comparative is summarlzmg t.he expenditures by divisions, now submitted: IS Summary of all Expenditures (OOO omitted) -- 1927-28 1928-29 1929-30 1930-31 Ordinary expenditure .. ........ ... .......... .... .. ... ... Capital.

........... ....... .. Special.


.......... Loans and ad vances non-active .... ......... .

.. $ 336,168 20,636 3,566 18,494 S 350,953 22,809 2,187 13,646 $ 357,780 22,561 9,839 8,262 378,864 389,595 398,442 S 389,558 28,222 16,789 5,488 440,057 Estimated 1931-32 S 3i8,743 16,975 55,138 3,390 4.

)4,246 the revenues under result of Having detailed the expenditures the net from all the sources and the appropriate divi5ions, the accounts for the year may now be indicated.
With ordinary revenues of 1327,719,000 and ordinary ~xpendit\ll'es amounting to 1378,· resulting deficit on ordinary 743,000, account is $51,024,000, which has occurred as the decreased yield from a consequence of taxation and notwithstanding the reductions made in expenditures.

Special' expenditures, including $49,282,000 for unemployment relief md wheat bonus as previously detailed, total to this amount, 155,138,000.

As an offset $7,022,000 was received in special revenues, leaving II.
balance not provided from income of In addit.ion, there are the capital $48,116,000.

and expenditures of $16,975,000 The advances amount, therefore, of the increase in debt.

for the year is 5119,505,000. and loans 13,390,000. non-active of 1931 Conversion Loan Reference was made in the budget last year to the conversion loan campaign which the had just.

closed.
closed.

As a matter of record, figures in connection with this debt final operation are now presented: Of the $1,084, SOO,OCO in bonds eligible for conversion, $638, 600,000, or sixty per cent, were converted.

This operation did not involve any change in the amount of public debt outstanding, as the exchange was made at par.

Details of the conversion are: Loans Eligible for Conversion Amount Outstanding May 1,1931 Amount Converted 5% War Loan maturing October I, 1931.
.................................... S 5t% Renewal Loan maturing Nov. 1, 1932 .................................. 5t% Victory Loa!!
maturing November 1, 1933.......•.... ... .............. 5t% Victory Loan maturing November 1,1934 ............ , ........... ..... 52,929,600 S 38,625,700 73,323,150 37,523,200 276,688,100 446,659,950 2&,772,300 511,910,650 While the conversion had no immediate effect on the an-nual interest charges, the gO\' ~rnmeDt will benefit substantially within the next few years by 'reason of the lo\ver interest rotes obtained.

This is indicated by the fol lowing statement: Fiscal year .
1932-33 1933-34 1934-35 1935-36 and annually ·thereafter... .

.

Saving in interest S 193,128 568,360 3,335,241 6,192,9{)4 [Mr.

Rhodp.s.)

S 1,084,823,350 S 638, 609,300 The time for this conversion loan was Its execution was attended admirably chosen.

with outst~nding success, and its effect upon our financial position has been marked.

That this is so is due entirely to the vision of the Prime MlDister whose conception it was and uIIder whose guidance it was conducted.
The total expenses in connection with the Conver siob Loan were slightly over one-half of on~ per cent.

The conversion loan operations had resulted in 70 per cent of the October 1st maturity be- APRIL 6, 1932 1757 jog refunded.

There remained only about 513,000,000 to be paid on the due date.

The slate of the public finances did not permit this to be met out of current revenues.

Conse.
Conse.

quently in August, Cannwan institutions were ill\'ited to tender for the purchase of all or part of SI3,000,000 to be absorbed into the 1946-56 Conversion Loan series at the interest rate of 4; per cent.

Tenders were accepted !l~ par for 14,500,000.

The balance was ar ranged through temporary credits with the Bank of Montreal, which were later paid off ftom the proceeds of the National Service Lonn.
Temporary Borrowings last and these were In September the Canadian National Rflilways required funds in New York to meet maturing credita financed directly by the government by an issue of 2~ per oent S18,500,OOO in three months' treasury bills, which were sold to the Chase National Rank of New York at par.

At the same time, 11500,000 was borrowed for pur poses of the Dominion, making the total SI9, 000,000.
When the bills matured in Decem ber, $1,000,000 were redeemed and the balance renewed for ninety days at 5 per cent; subse quently 13,000,000 were redeemed, leaving SI5, 000,000 still outstanding.

Pending flotation of the National Service Loan in November, it was necessary to bor r0W temporarily on treasury bills from the chartered banks an aggregate amount of 534,800,000.

These bills have since been retired.


in Canada, The Budget-Mr. Rhodes National Service Loan open remain they might A major operation for the year was the the 5 per cent National Service flotation of Loan in Novembe-r.

The subscriDtion lists were opened on November Z3rd with Drovi sion' that until December 12th.
The bonds were offered for public subscription in two maturities at a price of 99·25 and accrued interest for the five-year bonds, and at 99 and accrued interest for the ten-year bonds maturinjl; in 1941.

The campaign was under the direction of a Do minion~wide managemen,t committee, under the chairmanship of Sir Charles Gordon, President of the Bank of Montreal.

The offering was SI50,OOO,OOO and, while provision was made for the camDailrn to ex the issue tend over a period.
of twenty days, met with such popular the that response, amount was substantially over-suhscribed and to lists cloSed on November 30th: but.

thE!

meet popular demand, subscribers on Novem ber 30th were allowed to offer in navment cheques dated December 1st.

The acceoted over-subscription was $71,198,200, total issue being $221,198,200, of which 579.535.200 was for the 1936 maturity and $141,663,000 for the 194.1 maturity.
The total number of subscriptions was 109,000, indicatinll; that the loan was widely distributed.

While the banks made application for $30,000,000 the govern men~ took the view that it was in the national to give the preference to small in interest therefore, when subscriptions far ex vestors; ceeded the $150,000,000 offerinp;, the banks were asked to withdraw their apolications.
the The following etatement indicates the ex tent and nature of the distribution: National Service Loan Distribution of Subscriptions Number Amou,lt 55,761 $ 48,649 2,937 1,013 310 241 ......... 21,629,900 88,889,900 24,106,900 18,154,200 12.815,900 52,918,200 2,683,200 108,911 $ 221,198,200 • Largely made by institutions.
In making announcement on the night of November 29th of the acceptance of the over sub~ription which, due to the influx of ap~ plications on the last day, turned out to he much larger than was then anticipated, it was into stated that the government would put 1758 The Bud{J~t-Mr. Rhodes COMMONS motion a plan whereby the excess would be used far debt reduction.

As of.
As of.

this date, S50,~ 745,000 of debt has been taken up, while over 111,600,000 is temporarily invested in pro- vin~ial treasury bills of the four western prov taken in cormection with New York inces debts.
The expense of raising the National Service Loan, advertising, printing and delivery of securities, was less than oDe per cen t. commissiaml, including Canadian National Railway Company and railway problem being notwithstanding The annual report of the Canadian National Railway Company for the year 1931 baving already been presented to the house and the whole under review by a roral commission, remarks under t.his head will be canfined to a brief statement of t-he operating results and capital require.
ments in t.he year and the financing arranged.

The year 1931 was marked by a further severe drop in gross earnings to a low point reduced since HU9, the system's ·operations operating expenses, (excluding easte'!

'n lines) in showed a net taking into come deficit of ~,262,OOO after consideration all debt charges, an increase of 123,000,000 over 1930.
Deducting the interest charged but not paid upon debt to the gov ernment represented by loans and advances carried in the public accounts as non-a.etive the loss amounted to '52,200,000 and assets, this is the amount which might be considered as the addition to the country's deficit for in interest charges in respect of the year, been government loans absorbed in the public accounts.
In addition to provision far the defici~, it was necessary to provide a further large Bum for capital expenditures and the N;!

'tirement of railway debt.

While new capital expendi tures were .greatly curtailed in 1931, commit ments arising out of expenditure programs terminalS" and hotels under fOT branch lines, lar~e.
The to 1930. were still taken prior total financial provision which the government was either directly or the Canadian indirectly, National Railways in 1931, was SlO8,976,265, made up as follows: fOl' expenditures of required to make, "already having Deficit, Canadian National Railways, excluding East- ern Lines Deficit, Eastern Lines...... $ 52,255,676 8,712,762 - - - -$ 60,968,438 ment Capital ezpenditures including new equip- .

.
.

Debt retirement Discount on securities i8Slled ......•..•.. 33,990,106 9,791,691 4,226,030 '108,976.265 (Mr.

Rhodell.]

the Of these requirements, 141,282,899 are being furnished by way of advances by the govern the National ment out of the proceeds of Service Loan and temporary boNawings in New York already referred to.
The deficits on the Eastern Lines, amounting to 18,712,762 have, in accordance with the provisions of the Maritime Freight Rates Act, been paid as an expense of the government and are included in the statement of expenditures submitted.

The balance of requirements, namely, including discount, was provided 158,980,604, from the proceeds of Canadian Nataonal Rail way bondll guaranteed by the government.

in part, from an issue These proceeds came, (dated February I, 1931) made in the pre\'iou5 fiscal yea'!'
and, in part, from the 150,000,000 42 per cent 2O-year bonds, to which reference has already been made, sold in New York early in September last, at a cost of 4·79 per Issue cent.

as was Sll~410,400.85 of to redeem a temporary bank loan c8Tl"ied over from the previous }'ear.
The guamn1ee of the securities was authOTized by legislation of 1931. to the bonds were expenditures, sold Only applicable ~,5S9,599.l5 1931 this of The advances made by the government stand as to $29,910,400.85 under authority of the Canadian National Railways Financing nnd Guarantee Acts of· 1931, to the supplementary legis 511,372,498.86 under lation recently pabSed by parliament to pro vide for expenditures up to the end of 1931 in excess of amounts authorized for such purpose'S.
and as of the sale that find it transpire These advances have been made from the legislation which anticipate!

treasury under securihie!

repayment through It may, of guaranteed by the government.

such repayment will course, not be practicable and that the company to assume carrying will It has not been oon~ charges on this debt.
sidered advisable, however, these to take advances into our accounts as expenditures, ·pending the determination of policy with reference to the future financing of the com· pany after the report of the Royal Commis- .been received and mon on Railways has considered.
is unable The estimate which is before the house for the Canadian National the operations of Railways for the year 1932, is S61,500,000; to which 86,217,000 is to be added for Easte~ Lines deficit, after crediting the 20 per cent reduction in tolls, making a total of $67,717,000.

Of this amount, about $49,000,000 represents the estimated deficit after paying interest on funded debt held by the public but without interest· on tlte government's provision for in the system.
The total shows a capital APRIL 6, 1932 li59 The Budget-Mr. Rhodes considerable reduction from the requirements it is I;tiH a very in the past few years but large figure and constit·utes one of the coun financial problems.

Outside of try's major the interest on the national debt of the dom'inion, it is the largest single item in the counl-ry's budget and represents over one sCI"enth of the money which the government is called upon to raise for all current purposes.
Indirect Liabilities of the Government of be added $31,235,118 railway securities presently The amount of the the ollti;tanding bearing gU>lJ:antee Dominion of Canada, is $969,683,288, to which should securities gmrantecd for other enterprises, making a total of guaranl.ced obligations Qutst3.nding as of March 31, 1932. of 51,000,918,406, as com pared with 8954,917,112 a. year ago, II.

net lncre:J.l>(!

of $46,001,294.


The total funded debt of to the the Canadian National Railways public now amountd to $1,274,587,745.

of Steamship Compa,nics The steamship companies operated on behalf of the gO\'ernment, which are budgeted for on the basis of actual cash outlay required in the year, adv~nces from the dominion treasllry amounting to 81,360,853, follows: Canadian Government divided as Merch:lnt Marine, Limited, and Canadian National (West Indies) Steamships, Limited, .$916,568.
received 5444,285, Harbour Commi~ions Advances to harbour commissions in 1931-32 totalled $14,148,540.

The chief expenditure, amollntAng to approximately $5,800,000, was nlade in Saint John where a reconstruction program W[lS the The fire which occurred there.

disasLrous balance of the expenditure consisted mainly of commitments in connection with the com pletion of development programs undertaken prior to 1930. necc~~ll.ry on account of The following statement shows the amount!
advanced to each commission in 1931-32, and the total advances to date: Advances to Harbour CommillSions - .. Chicoutimi ................ Halirax .................... Montreal-Harbour ....... Bridge (deficit) New Westminster......... Quebec .................... Saint John ................ Three Rivers.............. Vancouver................ Advances 1931-32 Advances to date • 465,000 2,752,000 1.412,000 534,000 170,685 1,495,000 5,763,8Mi 747,000 809,000 • 2.626,000 7,593,000 57,389,000 704.000 170,685 25,924,995 9,170,855 2,426,600 21,416,900 14,148,540 127:422,035 The Quebec commission does not pay any interest, and consequently its loans are treated as non-active assets.
This also applies .to the advances made to enable the harbour com missioners of Montreal the defieit on the haTbour bridge.

The other loans have paid interest and arc carried as active assets, although it may be observed that some adjust ments may pro\'e necessary in this respect in the near future.
to meet Canadian Farm Loan Board The loaning operations of the Canadian Farm Loan Board were ag:lin financed from the dominion t.reasury by the purchase of 11,500,000 of the board's 5 per cent bonds at In addition S107,603 was paid for capit:ll par.

the Board in accordance with the stock of provisions of the Canadian Farm Loan Act.
The total capital furnished by the Dominion the board's operations since government to 57,216,465, di\·ided its inception amounts as f'Dliows: for Initial Capital.. Purchase of Bonds Purehase or Capital ~tock S .

.

5,050,000 1,800,000 366,465 S 7,216,4.65 Wheat Marketing Guarantees faced interest in financing Under the authority of section 3 of chapte'r 58, statutes of 1931, orders in council concern~ ing the marketing of the western grain crops were made.
The house will recall t.he prob lems which the Canadian Cooperative Wheat Producers, Limited, it-oS operations in connection with the 1930 crop.

The government, believing that it was in the national to ,protect the eredit of the the marketing agencies in such a way that grain might be marketed to the general ad vantage of growers, had given ..n undertaking to the seven chartered banks concemed, which the necessary credits.

then made available The undertaking was given status by order in council P.C.
2238, dated September 12, 1931.

This undertaking has served its purpose, and without cost treasury, Based upon present ma·rket prices, the expectation is that, when all accounts are settled, the Canadian Cooperative Wheat Producers, Limited, will be able to settle all advances without recour~e being had to the dominion's guarantee.
to the With respect to the 1931 crop, the three semi-public marketing agencies in the prairie provinces found their position a perilous one at the commencement of the marketing season.

against bank The credits were already ·encumbered, thus restrict ing the credit available.

Representations aD.
their behalf were made to the Dominion aSsets usually pledged 1760 The Budget-Mr. Rhode& COMMONS 12, 1931, government by the premiere of the three provincial governments concerned, ~nd, as a result, an order in cOlincil was passed on authorizing dominion September ~uarantee of credits under certain conditions to the Manitoba Pool Elevators, Limited; Saskatchewan Pool Elevators, Limitedj and Alberta Pool Elevators, Limited, calculated against capital at the commencement of the 1931 marketing season.
However, the the chartered accountants directed to establish l·he amount of working capital showed that respective working certificates their of issued establishing therefore, a subsequent order the proposed basis would not be a satisfactory in one, and, council was specific amounts which the Dominion would guarantee under certain conditions.

The amounlcl were: Manitoba Pool 11,250,000; Saskatchewan Pool 112,000,000; Alberta Pool $7,500,000.
This plan bas functioned to the satisfaction of all concerned and no liability has developed· against.

the Consolidated Revenue Fund.

The operations of the year are summarized in a condensed cash statement., which DOW follows: CondeD.8ed Caab Statement, 1931-32 Receipte;- Cash balances in banks, March 31.1931.. (estimated) , 1 44,599,43202 Loans and advances repaid:- Provincial Housing Loans Government of Greece .............•....•...........•.............

Soldier Settlement Loans .


1 J50.5OO 00 115,OOO 00 783,900 00 Loan Proeeeds:- National Service Loan .................•....•.....•.....•.....•...

Conversion Loan , ..•.....•......•....•....•...

Temporary Loan, New york ..................................•... 219,185,05600 4,500,000 00 19,000,000 00 Annuities, Insurance, Superannuation Funds-net accretion ..........•....••...•.....•.... Bullion and Specie, reduction in free holdings .
Royal Canadl8n Mint bullion advance account-reduction ..........•......... , •.......... .

Revenues, 1931·32 , • 1,049,400 00 242,685,056 00 10,J3O,58J 80 7,883,448 00 1,084,964 81 334,740,468 00 642,173.350 63 Payments: Reductions in Liabilities: POllt Office Savings Bank withdrawals Poet Office Money Orders, etc., redeemed Redemption of Debt: War Loan 1916-31..

Temporary Loan, N.Y.................................. Public Service Loan, N,Y., 1916-31.......
Renewal Loan 1922-32........................... Misc, Matured Stock and Bonds.

1 .

831,855 58 734,193 82 $ 12,627,OOIJ" 00 4,000,000 00 24,924,000 00 1,350,000 00 82,072 04 - - - - - -11 42,983,0720( Bond Purchase Account ............................•.....•.....•.................... Bonds and Stock acquired ror sinking funds .

Matured Couponll redeemed Cost of Loan Flotations-Unamortized , ........•....•................... ; .

Investmente-Active AlIlI8ts: , Provincial Governments.
Relief Act, J93J Canadian National Railways Harbour Commissionll Canadian Farm Loan Board.

.

.. .

.

.

.. .

.

.. .

.

.- , ••......... , .

.

.

22,431,923 00 41,282,899 00 J2,JI9,540 00 J,607,60300 3,368,87050 3,834,185 00 127.782 34: (,491,521 28 77,«J,965 00 912,539 38 (54.246.01800 53.201,34760 {Mr.

Rhodes.)

1 642,173,350 63 APRIL 6, 1932 1761 The Bltd(lct-Mr. Rhodes practice introduced Continuing the the ('ash statement last is followed by the .

'rear, babnce sheet.


The 3Cti\·C assets are made up oi cash balances and specie accounts, loans and ad\'nnces which are realizable or income producing, and other miscellaneous accounts.

Tbc:;:e as::cts arc taken us aD offset against the gross liabilities in arriving at debt.

the net Total liabilities as at March 31, 1932, being estimated at 82,832,355,834, and acti\'e assets the resulting net debt figure at 8451,238,348, is 12,381,117,486.
The balance sheet follows: Liabilities, March 31, 1932 (estimated) .

$ 157,300,000 00 6,811,79241 Dominion Notes Outstanding Bank Circuhtion Redemption Fund Insurance and Superan~u.n.tion Funds: Goyernment Anntlltles...................... Insurance Fund.

Civil S('rvice.... Insurance Fund, Heturncd Soldiers.

Retir('lnent }·und... Superannuation Funds...... .

......•.

..1 .

...•....••...•............. .

.

.

•....•... .

.

Trust Funds: Indian Funds.... .

Common Schools Funds.


lontmctors' Securities Deposits Other Trust Funds .

.

.

:.

.

.

.

.

s 26,643.41241 7,026.451 72 10.340.48630 6,888,204 08 39,488.30622 S 13.591.800 48 2.668.4-19 17 560.000 00 2, lH3.54I 17 - - - s Conting('nt and Spcei:J,I Funds Post fltliec l\loncy Orders.

Postal Notes.

etc., outstanding .... Provinre Accounts.... .

... Post Office Savin~s Dank Deposits.....

Temporary Loan Funded Deht: .

.


l·nmatured............................................. Matured but not presented for payment.................. Interest coupons matured but not presented for payment .

.

...................•.................. .

.

.

.

90,386,860 73 18,983,790 82 1,847.31500 3,401,154 10 9.623.816 77 23.918.37139 15,000.000 00 .
.... 12,501,782.73323 1,000,000 00 2,502,782.733 23 2,300,000 00 $ 2.832.355,834 45 Cash bn!nnees in banks... Specie Reserve Arh'unces to banks under Finance Act... .

.

Active Assets, March 31.

1932 (Estimated) $ 64,600,000 00 32,000,000 00 toans to provinces for housing........ Loans to provinces.

Relief Act.

1931..... .

•..............•.... .

•....•... ... ...... 10.521,187 72 22,431,92300 Lonns to Foreign Governments: Greece Houmnnia .

.
.

Loans to Harbour Commissioners: Chicoutimi..... Halifax..... ..... .. .... MontreaL........... Saint John..... Vancouver...... Three Rivers............. New '''estminster...... .

.

.......•.....•.

.

.........•.

.

.

.....••........... .

.

.

.

...............•.. , .... , ... .

6,52;;,000 00 23,969,720 ()() 2,626,000'00 7,593,000 00 57,389.000 00 9,170,855 00 21.416,000 00 2,426,600 00 170.685 91 Cannd ian Fal'Jl\ Loan Board.

.

.

.

.

..

Soldier and General Land Settlement.


Reed Grain and Relief Advances.

Canadi:ln.Nationnl Railways .

Bond purchnse Account ......................................•.... , Advances for Working Capital:'lnri Miscellaneous: .

..... ,... .

•.... , ... .

.....•.. .

..........•.............•.... ' •.................. Advances to Ro}'nl Canadian Mint (':In.

Govt.

Railways Open and Stores Accounts Miscellaneous.. .

.

.

.
3.223,200 00 15.748,921 60 3,020,994 36 , , •.... Dererred Dehit.s: l"namortizecl discount and commission on loons ........•...•....••.............. 41761-111 kE\'IHD l:DIT10S $ 53,201,34169 96,600,000 00 32,953,110 72 30.494,720 00 100,793,040 91 7.216.465 00 47.366.985 44 2,391,97184 41,282,89900 4.403.67606 21,993,11596 12.541.015 28 $ 45'1,238.347 00 1762 The Budget-Mr. Rhodes COMMONS Non-Active Assets, March 31, 1932 (Estimated) Canadian National Railways................... Canadian National Steamships......................................... Harbour Commissioners- .
"o.

614,406,239 42 16,911,48255 Quebec ......................................•........•....•..........• 25,924,99568 783,45256 Montreal and Three Rivers .............•........• _...• _...• _.........

Seed Grain and Relief Advancea ............•......•....•......................... .

Soldier and General Land Settlement Miscellaneous Advances ........................................•.................... Capital Accounts- _.0 Canals.................................. .

....................•.....


~:~W~ab~·ii((i~·gS·.·H~~bO~~·a~d·Ri~~j.

'im'provenie~~~::: Military Property and Stores........... Territorial Accounts.

.. .

.

.

.

.

.

.

::::::::: 237,033.72500 441,960.29277 243,349,53587 12,035,420 50 9,89S,94768 .

.
.

26,708.448 24 782,464 71 16,468,9579S 997,98723 Completing the statistical tables to be sub· mitted, there are those showing by maturity dates the direct obligation of the Dominion in the form of unmatured funded debt and the indirect obligation represented by guar.

anteed securities outstanding in the hands of the public, as follows: .

Unmatured Funded Debt as at March 31, 1932, and Annuallntcrest Charges Date of maturity Rate Where payable Amount of loan 1932- Nov. 1.......•...•.......... Dec. 1. .
.

I 1................•...•.

.

1 .

I 1933- Nov. 1934- June July Nov. 1.3b--- Aug. 1936- Feb.

I ............•....... Nov.Hi ............•.......

I (a) Mar.

1 (a) .

Dec. 1 (a) .........•......... po.

.

5!

Canada 4 Canada and New York.

5t Canada 31 5 51 London Canada Canada .

.

.

.

s cts.

34.449,95000 40,000,000 00 169.971,85000 23.467,206 27 33.293,47085 226,138,35000 4!

New york S Canada .

.

40,000,000 00 79,535,200 00 S Canada and New York.

.
.

51 Canada 90,166.900 00 236.299.800 00 : 1 1.............•........

I .

1........•....•........ .

London London .

London .......•......... London .......•......... Sept. 1.

.......•....•........ Canada 8.071,230 16 18,250,000 00 10,950,00000 )S,056,006 66 7S',000,000 00 141,663.000 00 Interest charges 1932--33 s ot•.
1,89'.7472:i 1,600.000 O!J 9,348,451 75 821,35222 1,664,673 M 12,437,609 25- 1,800,000 00 3.976,760 00 ',508,3'600 12.996.48900 242,136 90 547.500 00 328.500 00 .526,960 23 3,375.000 00 7.083.150 00 .

5 Canada and New York.

874.000 00 43,700 00 1937- 1938-- July July July July 194().-... 1941- Nov. IS '943- Oct. '944- 1946- Feb. 1947- Oct. ,,_ July 1952- 1.

May I 1.56- Nov. 1.

IS........•............. Oct. IS........•............

I ........•............. 1....•...•.......... (a) Tax free in Canada.
[Mr.

Rhodes.)

3 3 3 31 41 5 Canada •S Canada 4!

Canada 4!

Canada 2!

London 3!

London 5 New york 41 Canada .

.

.

.

.

.

.

.

.

.

.

.

.


147,000,100 00 7,350,005 00 50,000,000 00 2,2!iO.000 00 '5,000,000 00 2.025,000 00 4,888,185 64 122,204: M 137,058.84100 4,797,0.59 '3 100.000,000 00 5,000,000 00 43,125,700 ()(J 2,102,377 87 APRIL 6, 1932 1763 The Budget-Mr. Rhodes Unmatul'cd Funded Debt as at March 31, 1932, and Annual Interest Charges Date of maturity Rat, Where payable Amount of loan 1957- 1958- Nov. 1 (b) ... ................ Nov.

I (c) ........... , ........


., Canada ..... _........... 'I Canada ................. p.C.

1959- Nov.l Id) ..........•....... 1960- Oct. 1.. ...... .

.

... ........... Oct.

I ........................ 'I Canada ................. , London ................. , New york ....... , ......

Payable in Canada, Payable in Canada.

and New york Payable in New york Payable in London ~ • cts.

37,523,200 00 Interest charges 1932..13 • cts.


2,063,77600 276,688,100 00 15,217,84550 285,772,300 00 15,717,47650 93,926,666 66 100,000,000 00 3,757,066 67 4,000.000 00 2,564,170,057 24 127,598,186 75 .

.

.

.

11.881,461,02085 131,040.900 00 240,000,000 00 311.668,13639 , Less bonds and stocks of the above loan!!

held as Sinking Funds .

(b) 5!

"70 to Nov.

I, 1932.

(c) Tax free to Nov.

I, 1933, 5!% to Nov.

I, 1933.

(d) 51% to Nov.

I, 1934.

2,564,170,057 24 62,387.32401 12,501,782,73323 Bond!
Cuaranteed by Dominion Covernment as at March 31.

1932 ' Date of Maturity I8!lue Interest Ra..

Amount Outlltanding Sept.

I, 1934 Feb. 15.

1935 Sept. ], 1936 I.

1940 Oct. Dec. 1.

1940 July 1.

1946 April 1, 1948 Sept. 1, 1951.

Aug. 1.

1952' July 10, 1953 1.

1954 Feb. Sept: 15, 1954 Mar.

1.

1955 June 15.

1955 1.

1956 Feb. July 1.

1957 July 20.

1958 May 4.

1960 May 19, 1961.

1.

1962 Jan. 1.

1962 Jan. 1.

1968 Dec. 1.

1969 July 1.

1969 Oct. 1, 1969 Nov. Feb. 1.


1970 By tenderll or drawings Various dates 1932-54 : Serial-Feb.

I, &: Aug. 1, 1032-1938 PerpetuaL " " " .. .. U761-1111 .

.

.

.

.

.

Canadian Northern Canadian Northern Grand Trunk Grand Trunk Canadian Northern Canadian Northern .

New We8tmill!lter Harbour Commission .

Canadian NationaL .

Saint John Harbour Commi8sion .

Canadian Northern .

Canadian Nationa!..

.

Canadian National.

.

Canadian National (West Indie8 Steam8hips) .

Canadian National.
Canadian National.

.

Canadian National.

.

Canadian NationaL Canadian Northern .

Can.

Nor.

Alberta ................•..........•.. .

Can.

Nor.

Ontario Crand Trunk Pacific .

Crand Trunk Pacific Canadian National.

Canadian NationaL Canadian NationaL Harbour-Corom.

of Montreal.

Canadian National.

Canadian NationaL City of St. John Debs.

assumed by St. John .. .

.

.

, .

.

Harbour Commi8!lionefll .

Canadian National Equip.


C Grand Trunk Guaranteed Stock Grand Trunk Debenture Stock Great Western Debenture Stock Grand Trunk Debenture Stock North.

Ry.

of Canada Deb.

Stock %, "6 7 7 ~l 'I 5 3 5 41 5 'I 41 'I 31 31 31 3 4 'I 5 5 5 5 2 , ets.
6S,OOO,OOO 00 7,896,563 49 3,149.998 66 34,229,99j} 87 34,992,000 00 8,440.84800 35,000,000 00 60,000.000 00 60,000.000 00 19,000.000 00 18.000,000 00 29.452,409 67 various 1,467,164 96 .

, .

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.
, .

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.

5 5, 5,, 9.750.000 00 60,833,333 33 20,782,491 67 13.252.322 67 119,839,01433 1,499,97967 1,000,918,406 41 1764 The Budget-Mr. Rhode8 COMMONS Trade of Canada Turning now to the matter of external trade, Canada has continued to share in the pronounced shrinkage, both in volume aDd value, that has marked the commerce of the world.

& atatement.
& atatement.

of The following is the firat eleven Canada's foreign trade (or months of the last fiscal year, u' compared with the same period in 1930-31: (000 omitted) - 11 months ended 11 months ended Feb. 28.

1931 Feb. 29, 1932 Imports... _.......................• , ...•....•....•....•....•.. Elporta.
Canadian produce ........•....•....•....•.........•.. Jte...ellports, foreign produce .........•...•.........•....•....... S 831,232 744,669 16,038 S 521,056 536,595 9,951 1,591,939 1,067,602 Decrease S 310.17& 208,07" 6,087 524,337 The figures indicate a reduction in the dollar trade of approximately 33 per value of total cent.

which corresponds fairly closely to the in the world trade.
Notwith average fall aspect of our standing this unfavourable external commerce, a very distinct improve ment has hken place in the conversion of an unfavourable into a favourable balance.

Start ing last June, our exports.

commenced to exceed the imports and a surplus of exports over imports has continued month by month to date.

Taking the last eleven mooth!'


figures as a basis, the balance has been favourable to the extent of 125,491,000, as compared with an unfavourable balance of corresponding $70,524,000 period.

Comparative figures are as follows: previous the in (000 omitted) 11 month.

ended Imports Elportl S S E,,,,,," of Importl over ElporUi , February 28, 1930......... .. •....•....•....•....•....•....•........ February 28, 1931.. ......•.
......................................... 1,135,248 831,232 1.053,246 760,708 82,002: 70,62f Elcess of Elporta over ImporU February 29, 1932.............. _...... _............... _............. 521,056 546,54,7 2S,'Vl imports In the eleven months' period ended Feb ruary 29, 1932, the latest date for which statistics of trade by countries are available, Canada's from the British Empire amounted to 131 million dollars, representing imports and showing a 25·3 per cent or total from the of 56 million dollars decrease previous corresponding period.
Our exports to the British Empire are show at 204 million dollars representing 37·4 per cent of total exports, a drop in the period of 71 million dollars.

The imports from the United Kingdom de creased 43 million dollars and exports dropped 44 million dollars.

A summary showing the imports from and' exports to the principal para of the Britiah Empire is tLS folloW!

: [Mr.

Rhodes.]
: [Mr.

Rhodes.]

APRIL 6, 1932 1765 The Budget-Mr. Rhodes Trade of Canada with British Empire First eleven months (000 omitted) - Imports 1931-32 Decrease (rom 193<>-31 Exports 1931-32 Decrease from 1930-31 United Kingdom ...............•...•........... Australia...........................•........... Dritish South Africa ............•...•........... New Zealand .......................•........... 'Vest Indies ................................... Newfoundland ........ ........... .

.

.

.

.

.
.

.

.

.

.

........ .

Other.

........... '" .......................... Total British Empire ...... .. • Increase.

Our largest trade continues to be with the United States, to which exports in the eleven months ended February 29, 1932, amounted to 227 million dollars and from which imports were 317 million dollars, an unfavourable b3lance of 90 million dollar.s to Canada on the declined in the period, our purcbases 32·5 per cent interchange.
While exports • 94,579 5,357 4,259 '38 10,995 1,465 14,247 131,840 • 42,842 1,495- 1,091- 5,347 2,359 1,007 7,526 56,495 • 163,152 <,688 8,011 3,433 7,694 6,320 11,266 204,564 • 43,922 1,605 1,554 8,717 3,657 3,987 7,808 71,310 from the.

United States have decreased 40·6 per cent.

A statement is submitted to show the per centage of our trade with the British Empire, United State!

:l and other countries in the first eleven.


months of the fiecaJ year, and, for pur poses of comparison to indicate the trend, similar percentages for the previous fiscal year.
Trade o( Canada - Imports ElPort9 Fiscal yo>, 1930-31 First 11 months 1931-32 Fiscal yo>, 1930-31 First 11 months 1931-32 aritish Empire ........•...••...••..••.......... United States .............................. ... Other Countries..... ........................... % .... '2-6 12,9 100·0 % 25·3 60·' 13·8 100·0 % 36·6 43·7 19·7 100,0 % 37·4 41·5 21-1 100·0 Having reached the conclusion that the interests of both contracting parties would be promoted by the negotiation of an entirely new convention, Canada gave notice to France, in December last, of ber desire to terminate the French convention made in 1922, and to proceed to the making of a new agreement.
therefore, on The existing treaty terminates, is the earnest June 16 of hope of the government its place will this year and it that in the near Iuture be taken by a commercial convention which may be of mutual ad.

vantage.

Es'timated Revenues and Expenditures 1932-33 Based upon present rates of taxation and reasonably stable conditions, it is anticipated the revenues in the fiscal yenr 1932-33 that .
wbich has just commenced, will amount to 1319,100,000 from the following sources: , Customs Duties Excise Duties Excise Taxes Income Tax Post Office Interest on Investment9 Other sources ..

,.

", , _.....•......... , .'

_ .

.

, .....•...•.....•........ , , .....•.......... , •... ,.•... ,.....•............... .
,.,., .. _, .....•....•.... , •....•....••......... , ..,.. , , 1100,000,000 .5,000,000 70,000,000 .8,000,000 32,000,000 11,500,000 12,600,000 $319,100,000 1766 Tile Budget-Mr. Rhode, COMMONS The ordinary requirements (or government services in 1932-33. as provided for in the main estimates, together with certain special and statutory amounts such as for old age pensions and p.'\yments to Taihvays under the Maritime Freight Rates Act, are estimated at 5369,900,000 and, in addition, $9,600,000 is voted (or capital expenditures.
.

'\.

vcrY considerable contribution to the the budget has already been balancing of reductions of appropriations in the made which have been recommended to the house for the current year.
Leaving aside the extra~ ol'clinn.l'y expenditures on wheat bonus and the expenditures in the unemployment relief, just at arc fiscal yenr in comparison with which the 5404,900,000. estimated ror 1932-3a show a reduction of '25,400)000, after absorbing an increase in interest on the public debt or 812,700,000. expenditures or 5379,500,000 estimated ended in the fixed and, The perplexities which ordinarily attend the curtailment of expenditures on governmental services are rendered much greater in the insmnce by reason of the reductions present the which had already been effected ordinary and capital expenditures, and par ticul:1rly by reason of the increasingly smaller proportion or the expenditures which are con trollable.
Thus in the proposed expenditures ror 1932-33, in general, un controllable nmounts, including debt charges, pensions and ex-soldiers' weICare, provincial subsidies, and similar items, aggregate approxi~ mately S236,OOO,OOO, leaving only SI43,500,OOO, the classification of or 38 per cent, under In the fiscal year controllable.
just ended, the corresponding figure or controllable ex penditures was 5179,300,000. thererore be seen that is pro posed to effect this year in the controllable expenditures the is equivalent of 20 per cent.

These figures have been ciLed to illustrate' the drastic economies which the government baa felt it necessary to institute, having regard to the depleted returns from taxation.
the reduction which it 535,800,000, which It will is With revenues estimated at $319,100,000 and the usual current expenses of government amounting to 8369,900,000, it is clear that in creases in the rates of taxation are necessary.

is proposed to recommend Accordingly it measures which will, it is estimated, increase the revenues by 555,000,000, thus balancing the current expenditures and leaving a surplus or S4,300,000.
H expectations are realized, this surplus would serve to cover a large part of the capit.al expenditures as well.

Even a [Mr. Rhodes.l impro\'ement the government slight in price levels, and the general volume of business would, or course, be reflected immediately in the returns rrom customs and excise taxes, and our budget position would be correspondingly improved.
Without building too greatly on help from this source in the present year, it is the con that reduc sidered view of tions in expenditures, on the one hand, and proposed additions to the laxation revenue3 on the other, will, in the final outcome, repre sent a complete balancing or the budget on services.
the While, unfortunately, rev_ ennes, which are conservati\'ely based having regard to the present conditions or business, do Dot CO\'er the special expenditures on un employment indirect liabilities arising; out.

or the financing of the Canadian Nntional Railways, it is nevertheless, in our judgment, as substantial a step in the direction of pro\'iding currently ror every responsibility of the government as would be -in the public interest to make effective in any one year under existing conditions.
governmental the estimates or relief, nor the more current usual Income Tax act the taxation period.

Under to provide in such cases for income nnd payment or It is proposed to rnise the rate of taxation on incomes of corporations and joint stock companies to 11 per cent, to take effect in the at 1931 rear present, a corporation whose financial is not coincident with the calendar year is allowed until April 30 of the rollowing year It is proposed to amend the to pay the tax.
act the return of the tax within rour months from the close of the fiscal period.

This will have the effect of accelerating the collection or the tax from those corporntions whose fiscal periods do not end with the to the calendar year.

A rurther amendment the pre Income War Tax Act will visions relating to family corporations.

In respect of the tax on personal is proposed to repeal incomes, it the deduction of 20 per cent now allowed from the tax pay able UDder the established schedule of rates.
including corpora In addition, all income in excess or tions, 15,000 will be required to pay a surcharge of the amount of tax otherwise 5 per cent or payable.

in receipt of net taxpayers, repeal The personal exemption, where heretofore 13,000, will be reduced to 12,400, and where heretofore 11,500, will be reduced to SI,200.

No change is to be made in the exemption ror dependent children.
Hereafter the exemp tion granted in respect of income rrom annuity APRIL 6, 1932 1767 The Budget-Mr. Rhodes contracts will be 11,200 instead of SS,OOO.

This wiM bring the exemption into conformity with the Annuities Act as amended in 1931.

The penalty provisions in the Income War Tax Act.


will be amended so as to provide that in cases where investigation reveals that a taxpayer has deliberately understated his the amount of income not disclosed income, will be added in double the amount and the tax assessed thereon.

The decease of the taxpayer will not avoid the tax penalty.

The changes in the exemptions and in the tax payable will apply to incomes rates of of 1931.
The following statement indieates the proposed increase in taxation, in the case of a married person without dependents, at various amounts of income: Income Tal Married Person without Dependents Tales Payable Income TIU-Concluded Married Person without Dependents Tal Payable Income Present To> 175,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 600,000 700,000 800,000 900,000 1,000,000 42,92000 51,49600 69,072 00 87,04800 105,424 ()() 124,200 00 143,37600 162,9.52 00 202,928 00 242,92800 282,928 00 322,928 00 362,928 00 Proposed T., -- 56,597 10 67,859 40 90,934 20 114,534 00 138,658 80 163,308 60 188,483 40 214,183 20 266,658 00 319,158 00 371,6S3 00 424,158 00 476,658 00 Increase - - 13,677 10 16,363 40 21,862 W 27.486 ()() 33,234 80 39,108 60 45,107 40 51,231 20 63,730 00 76,230 00 88,730 00 101,23000 113,73000 Sales Tax Income Present T., Proposed T., Increase S 2.400 2,500 2,600 2.700 2.800 2,900 3,000 • ,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18.000 '19.000 20,000 25.000 30.000 35.000 40,000 45.000 50,000 55.000 60,000 65,000 70.000 75.000 SO,OOO 85,000 !lO,ooo 95.000 100.000 110,000 lW,OOO 130,000 140,000 150,000 ............ ............ .. .......... ............ 200 ... ......... '00 ... .. ....... 600 .... ........ 800 ............ 1000 ............ 00
40 63200 318 20 73600 359 50 84800 403 30 968 00 1,09600 "9 60 498 40 1,23200 764 SO 2.024 00 1,038 60 2.88000 1,324 90 3,776 00 1,623 70 4,712 00 1,935 00 5,688 00 2,258 80 6,704 00 2,1) 17,MB 00 6,184 30 19,064 00 7,10810 22,000 00 8,056 90 25,01600 28, 112 00 9,030 70 10,029 50 31,288 00 o 11,053 3 34,544 00 200 '00 600 800 1000 12 00 3200 5600 98 70 147 00 205 SO 275 10 354 00 44520 54600 65730 779 10 911 40 I,OM 20 1,20750 1,371 30 1.5015 60 1.
730 40 2.788 80 3,918 60 5,100 90 6,33570 7,62300 .8,962 80 10.355 10 11,799 90 13,297 20 14,84700 16,449 30 18,104 10 19,811 40 21,57120 23.383 50 25,248 30 29. lOB 10 33,072 90 37,142 70 41,31750 45,597 30 list, in the case.

The saleE!

limited ad·justment of tax will be increased by 2 per revenue will also be the cent.
Some additional derived from a exempt and ,partially exempt of a number of artides not ,primary products whioh it is tbelieved should, under present con ditions, carry a ,proportionate share of the tax burden.

The chief items to be' taken from the lard.

eJOC-mpt ~ist are bakers' cake, -and pies, compound and similar subE!tances made from ani.mal or vegetable stearine or oil, ice cream, processed milk foods and cereal foods under Customs Items 45 and 46, and usual coverings for goods not subject.
to ·the sales tax.

Bis cuits are to Ibe raised from the half to the full rate.

Special Excise Tax on Imports The special excise tax on goods imported into Canada will be increased by 2 per -cent, making it 3 per cent.

Insurance Tax the jurisdiction of The tax upon insurance premiums 'Passed at ·the last session was not put into effect by proclamation as provided by ·the statute, owing the to difficulties over Dominion and provinces in the matter of in It is now proposed, under the Special surance.

.
.

War Revenue Act, to impose a. tax of I per cent of net premiums of insurance companies authorized to ,transact business in Canada or in any province of Canada, otiher than life, marine and farm mutual.

This tax was in force from 1915 to 1929, British and foreign companies, not so authorized but maintaining deposits with the Dominion, will also be asse.."5'ed 1 'Per cent of net premiums received in Canada.

Canadian policyholders who in~ 1768 The Budget-Mr. Rhode!
COMMONS sure their property in Canada with companies than thOl3e mentioned above, will be other the gross charged a tax of 15 .per cent.

of premiums ·payable 00 sUch iIllJUraDce.

rate is The stamp tax on cheques, .promissory notes, money order8, etc., w.ill be increased.

The pre cent two cents for euh instrument exceeding $5.

Tae new rate will be t.bTee cents over IS to $100 and on instruments over 1100, six cents.
The tax of 10 per cent, minimum 25 cenls, on sleeping car tickets and of 10 cents on each parlour car ticket, wiD be reenacted.

The tax on cable and telegraphic me~ges will also be reenacted, but the rate will now be five cecta for each message costing more than fifteen cenLs, and the measure will be extended to include long distance telephone calls Bot the same rate.

A minor amendment also is proposed to in connection the Special War Revenue Act tax.
Thlt wit.h the stock and bond transfer present trans for actions in bonds is to be repeaied and a regu lation substituted which will ensure the appli .cation of transactioQ.

!l except • where dealers in securities are acting as pur the tax in all inter...dealer exemption chasing agent!

for clients.

The 93IeS tax changes come into force immediately; the stamp tax 00 cheques, tele graph and telephone and transporta-tioo taxes, it i.s proposed to put into effect Il8 of May 2.
Tariff the Imperial Conference, Having in mind the near approach of the is meeting of deemed undesirable to make 'any tariff changes touching the British preference.

This decision of necessity precludes any major tariff adjust ments'.

~t With one exception, no tarit!

amendmen'ts are therefore Iproposed.

The exception relates to repair parts for farm implements, for which the special rate!

g.ranted to March 31, 1932, win be further extended to March 31, 1933.
In proposing these additional measures of taxation, considera-tion has been given, on the one hand, to the ability of our people to bear to the the ex·tra burden, and, on the other, absolute necessity of financial house in order.
,pla.cing our Bearing tully in mind the fact that, in com 'We have suffered mOD with the whole world, -while not in equal degree at leaSt in sub stantial degre~s the result of a depression universal in scope and of unparalleled magni tude; realizing also the anxieties and burdens of the people and the manifold difficulties re sulting from the trying period through which we are passing; and appreciating hoW' desirable lMr.
Rhodea.l it is that we should endeavour to the fulled pOS3ible extent compatible with th~ public interest to call for a.s little fur,ther sacrifice as possible;-at bbe same time we would be re creant to o~r duty if we failed to faoe ouI' problems with determina.tion and at whatever sacrifice.

fully meet our financial obligatiOIUlt balance our budget and preserve our national in the eyes of an observant financial credit world.

This .course may result in ·hardship.


It may in the long run it will entail sacrifice.

Bu,t in ~eM hardship, and will call for result less sacrifice than· tba.t which would 80w from a policy less courageous.

Furthermore, the pre.servat.ion of our na is an indi.

!pensable prerequisite tional credit to the return of prosperiLy..
While the world is close knit to.day in mat-ters of trede and finance as never before in its history-and we cannot ex.pect normal or prosperous conditions apart from the general world .trend-neverthe-less some one nation, or group of nations, roust assume the ~eadership and point ·the way.

To that end an oppor tunity unique in history is afforded to the British nations, whose representatives wiU assemble in OttAwa at the Imperial Economic Conference in July next.
If the delegates who assemble here meet in an atmosphere charged with determination to approacit their deliberations from the view point of mutual adv~lDtage, there will result measures which will give a marked .stimulus to empire trade.

~ And while these measures are primarily de signed to stimulate trade within the empire, they will release forces and establish CUn-ent!

which may well flow ,beyond our borders to the eventual benefit of the world at large.
that As a final ·word, may I say that I do not I do,.

propose to indulge in prophecy.
But desire to record my firm conviction that we are not far removed {rom events which will herald tlhe dawn of bet.ter days; tbOle qua·lities of courage, resour.eefulnes9 and thrift which characterized our lorebears are not lost that our struggle.s 'to the present generation; serve as a and difficulties of challenge to greater eflot't on the part of governments and people to the end that Canada will be found in the VAlJCUard of those nations who 8ucces!lully emerge from the gree.te3t testing time in .modern history.
I beg to give notice, Mr. Speaker, that when we are in committee of way!

and meana I shall move tte following resolutions: to-day will 1.

Reeolved, that Ichedule A. tariff, being chapter forty·four of to the e~ the reVl.ed