Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697719872187.pdf (Canada)
2476 COMMONS Tuesday, May 18, 1920.

The House met at Three o'clock.

REPARATION BY GERlolANY-ALLIES CONFERENCE AT OSTEND.

On the Orders of the Day: Mr. P. R. DuTR£~ffiLAY (Laurier-Outre I see in the Montreal Gazette of this mont): morning a despatch stating that is ru moured that.

following the conference held at Hythe, the Government of Germany will .

be called upon to pay to the Allies as an indemnity the sum of about £6.000,000,000.

Would the Government te!!


us what portion of this sum is to be allocated to Canada?

it Mr. SPEAKER: I would ask the hon.

member to put that question on the Order It is one which requires notice and Paper.

with respect to which there is no urgency.

It Mr. DuTREMBLAY: is a question which rcquires the attention of the Govern ment.

The des.patch further state-s that a special conference of the Allies will be held shortly at Ostend to consider financial ques should like to tions among the Allies.
know if the Government have been invited to attend th~s conference and if they wilt have a representative at it.

I RL Hon.

Sir ROBERT BORDEN (Prime Minister): The answer ~o my hon.

friend', question ill in the affirmative.

THE BUDGET.

ANNUAL FINANCIAL STATEMENT DELIV ERED BY SIR HEl'ORY DRAYTON.

MIN ISTER OF FINANCE.

Hon.

Sir HRLVRY DRAYTON (Minister of Finance) moved: That the Speaker do now leav& the Chair ror the House to go Into Committee or Ways and Means.
He said: -Mr. Speaker, I am afraid that on the present occasion I shall have to ask ~he indulgence of the House as I shat!

have to address the House at considerable length.

The fault is not mine; the financial position of the country at I 'he present think, to be dealt with in considerable detail.

requires, The conditions not only in Canada to-day, are the world conditions obtaining, but very different· from the conditions which did obtain while the war was in progress.
Dur ing this period the compelling necessity of re the winning of the moment, ~uired raising large sums of money in the easiest possible way and with the least in- the war, [Mr. li'ieldlng.J tel'ference with the public or with businees methods.

It was absolutely imperative ~hat there should be no check in production.

no quesbions raised which might hinder th8lt It was production or hinder the war effort.

no time for the consideration of domestic politics.
which ill any way might distract the nation from a united effort towards ~he supreme end.

These conditions to-day are changed; the war is won; expenses are great; the C<lst of Government operations as well as the carry.

ing on of every business of every character in the country has increased enormously, and over and above this the country.

with other countries which wo1{ their part in the titanic struggle, is faced with a pyramid of debt.
The task to-day is to aid the return to ordinary economic conditiona to the ex tent this time pas sible.

that such return is at Indeed, The duty to·day is not only to carry on the Government of the country without any additions to t!

;l.e debt, but on the other hand to promote measures whir:h will Jeduce tohe flIltion's cfuligat:ions.

The task while heavy if!


nevertheles.s not a8 severe and difficlllt as t'he ob6't.ac1esand d·ifficul-tiee 'wh·ch the oountry hall glor-iotlSlY overcome in the fi·ve years (IIf war and stte6s.

,were it possrble for the count,r)' ·to again become a.s united and earnest as it was during the war if it were possible lor each and aU period.
of us to sink all differences, class and fiElC tional in-ter.egtg -and jealotlSies ·into an effort towards re-establia.hing Canada ras unrited and cCKlrdinated as that which won the war, the task would indeed be easy and simple.

Canada's soldiers during that period won .lor thenIBelv~ and our country 'imperish .. Their name liveth for ever able fame.

the productive efforts of Can more."

But ada during that period were second only to their glorious record.
For the five fiscal years ended on March 31, 1915. the excess of exports amounted to $825.521,490.

For the next suc ceeding five years.

ended on .March 31 last, this excess of imports was not only over taken, but our exports exceeded our imports by a sum of $1.803.442,233.
It is plain in view of such a t.remendoue IProductive and in ,a,nytihing like the dustrial exploit, tha.t i.s made to overcome debts, same effort and by overcoming debts to bring about a ,proper denation of prices, oredits, and ci.rcllla~ion.

lihe task -will ·prove weill 'Within our Po.wers.

Canada's 'trade while, as in the case of a:hJ.

{lo'l.mtries, subjedt ibo operiod iooJ.

depression haa steadi·ly advanced.

a.s the following figures will show: country's imports over the iIf MAY 18.
1920 2477 Fl.ca.l Year.

1879 1889 1899 1909 1919 1920 (unre"l~ed) Total Trade.

$ 149,459,188 196.809,107 304,227.1139 545,139,881 2.l85,194,620 2,851,174,886 The increase thus recorded is one which is contrjbmed to pracMcaJly ;by all o-f our productive agencies and is spread over a .wide field.

An increa<Se in the oMic in duslry of ag.ricu.llure may b& illWltrated by t:he country's wtleat produotio-n which has been 36 follows: Year.

1870 16$0 1UO 1900 1910 1919 Bushell.


16,732.873 32,250.269 42.232.872 55,572.368 132,077,547 In,260,400 As ind·icating Ule development 'Whieh has taken pJoace in the production of our agri culture, forests, mines, and fisheries.

and l·he growth of our manufacturing estab Iishmenta, I desire to place on record the following &tMietics: Year.

UOO •.

1910.

1917 .• 1919 .• Agriculture Productlon--Canada.

Field Crops.

$ H4,953.UIl 381,366,856 1,14 1.637.001l 1.452,437,000 Other Farm Produce.
$169,953,446 279.982,334 476,391,000 623.40UOO Total Produclion.

$ 3&4,906.866 663,3t9,190 l,621,028,IlOO 1,975,841,000 Forest ProductIon-Canada.

Log ProdUcts and Wood Pulp.

$ 39,G40.571l 55,266,368 55,1l51,865 72,878,051 114,713,655 79,767,938 HO,381,584 Minerai Produetion--Canada.

$ 14,013,113 49,234.01l5 91,831,441 Year.

1881 1891 1901 1906 1911 1915 1919 Year.

1889 1899 1909 Year.

1917 ."

•.

1918 .

.

.

.

1919 ·SubJect .• .. .

.

• .

to revbllon.


189,646,821 211,31l1,897 173,1l75,913· F!~hery P.roductlon--Canada.

Fiscal Year.

1879 .• 1889 •.

1899 .• 1909 •• 1917" .• 1918· .• "Calendar year.

Manufacturing Industries.

$13,529,254 17.655,254 21,891,706 29,629,169 52,312.1l44 61l,U3,U9 Year.

1881. .

1891 .. 1901. .

1906 •.

1911 .. 1915 .. 1917 .. Capital Invested.

$ 165,302,62-J 353,214,300 446,916,487 846,585,021 1,2t7,5S3.61l9 1,994,l{13.272 2,786,649,727 Employees.
25',935 369,595 S{l8,i82 356.034 515,21l3 lilt,883 692,067 Value of Products.

$ 31l9,676,068 469,847,886 481,053,375 718,352,803 1,165,t75,639 1,407,137,1'10 3,015,577,9411 Co,relat.ed with the \1oo\'e 8re certain financiall statistics wflich .are interesting.

Canadian Chartered BankS.

Amount of Fire Inllurance Pol\clee In Force.

Year.

1888 1898 1908 1918 1~19 Year.

U'8 1888 nn 1911S 1918 1919 Paid-Up Capital and Ue1Ierve.

, 79,218,565 91,197,340 171l,885.21l3 225.508.222 243.912,111 Year Dec. 31.
1878 1888 1898 1908 1918 1919 (unreviaed) I Amount.

409,899,701 650,735,069 895,3'H,I117 1.

'1l0,708,263 4.523.5l4.841 4,904,396,461 TQtal Bank DeposHs by the Public In Canada.

I 71,900,19.

128,725.529 248.572.085 639,899,36" 1,669,597.617 un,47U!S Amount Qt Life Insurance Policies In Foree.

.Year Dee.

31.

1878 1888 1898 1911B In!> 1919 (unrevised) Amount.


I 84,.51.931 211,7&1,583 368.523,985 719,513,913 1.785.061,27;1 2,187,833,396 24i8 COMMONS Ii the -progress (lOf the p;u;1, be but a fair indica,tion of the problems of kI-day and to-morrow lIlay be faced without doubt of n successful issue.

the future, During the period covered by tlhe above llt'atistics an Wl1lnenlie railway syste.m haa been built.

In 1879 the mileage of lrteam railwny.s in Canada was 6,484, (lnd in 1919 38,896. '
:Miles In operatlon ..

Tons of freight .

.

.

.

Gross earnings ..

Steam Rall,vays of Canada.

IS79.

G.iSi 8.348,310 $19,925,066 1889.

12.623 1,,928.626 42,149.615 1899. n,141 31,211,153 62,243,784 1909.

24,104 66.842,258 145.056,336 un.

38,896 116,699,612 382,916,901 A great canal syste-m has also been con· strucle<l from bide water to the head 01 the Lakes at a capital cost of $110,823,237.42 to the country.
Large and commodious public buildings haove 31150 been erected, that an investment has with.

been made in Goverrwnent capital accounts l1Ie Dominion of ledger inveetment& amaunting to $1,078,537,461.27.
$766,912,802.71, while shows Government the result National Debt The ledger as cd Maroh 31, 1920, shows the country'g gros-s debt 10 be $3,014,483, referred to The ca.pihal accounts 774.12. are nOlt deducted tram 'bhis debt but the treating investmoo~ as 8.Ctive, de ledger, duoLs them from the gross debt and dis- closes a. noet debl~ of $1,935,946,312.85.

Be yond aU Question j,t is a matter of import ance that ·the exact !position ()f the country's debt should be clear.
While the books are correctly kept and t1he eIlJtries properly made, in my ()pinion SQme 01 the invest menLS canno,t be characterized as e.ctive investments.

They Me ahO'Wll 8.9 f<:illows: Investments, etc., Included in calculating Net Debt.

All of March 31, 1920 21,385,930.12 • • • • • • .

• $ 140,223,313.89 .. ..

Sinking Funds.. Canadian Northern RaHway Co. Grand 'Ilrunk Pa<:lflc Rallway Co. .

• .

.

• • .

.

.

.

• • • • .


• Grand Trunk Railway 00... .. Loans to Banks.. .. .. Advances to Trust &: Loan Cos. 1.osna to Provinces (Housing) to Provinces (Farmers) Loallll .. .. Impel'lal Government... Other Governments.. .. .. .. Miseellanoou8 Investments.

Miscellaneous &: Bunking Ace'ts Cash Specle Regerve.

Provlooe Accounb.

.


95,345,469.19 1,148,533.33 101,065,125.00 3,850,000.00 11,140,000.00 3,500,000.00 111,110,168.19 34,336,117.15 39,314.000.45 115,039,622.61 113,984,34:2.34 103.591,849.90 2,296,321.90 $1,018,531,461.27 Oros.s Debt.. Ll\IllI above .. •.

$3,014,483,114.12 1,018,531,461.21 Net Debt.

.

.

.

.

.

$1,935,946,31:2.85 It is obvious that the advances to the Canadian Northern, Grand Trunk Pacific, and Grand Trunk ,Railway Companies can lSlr Henry Drayton.)

not be treated as active assets.


They are not at the mOlllent realizable; further, no intereat is being paid, and in some cases the principal as well as interest is overdue.

As jg well known, Canada is now the owner of the Canadian Northern, the Grnnd Trunk Pacific, and steps have been taken the Grand the acquisition of Trunk.
While the railways have potential is that value, at the country itself OWll6 the Canadian North ern and is responsible for the operation 01 the Grand Trunk Pacific, with resultant he!lvy cost the present time the fact to the taxpayer.

receiver {or for Assets which are not readily convertible, oIlS the specie reserve is, or are not interest producing, are not such assets as ought to be deducted from the gross debt.
They are inactive, they are items of such 0. character as might weB be placed in a suspense ac count.

At any rate, whatever may be their future value, howe\'er great it may be, they are not assets of such a character as to directly reduce the groS6 debt any more than the other capital accounts or the coun try ought to be deducted from it.
I would therefore reduce the deductions made from the gross debt by the railway items already referred to, and on the same study of grounds the after making a $39,OOO,(J)) odd amounts making up the charged to misceUaneous I jnveirlmenta, would reduce that item by $11,015,961.20, and the item, miecellaneous and banking accounts, of $175,000,000 odd by the sum of $56,592,463.12.
While the charge against the Imperial Government is correctly stated 8S of the ahove date, beyond all question there are 'furthcr contra accounts 01 the Imperial Government which will approximately re duce this credit item by some $33,03..'3,333.34.
The result of providing for this contra ac count and of treating the inactive items as items that ought to go in suspense or capit al account is to reduce the investments in cluded in calculating the net debt by $337, 359,124.07, and to increase the net debt as shown from $UJ3.5,946,312.85 to $2,273,305," 436.92.

MAY 18, Hl20 2479 Inflation.

is in this Our in in credits.


amount $128,366,066 in Canada inflation inflation undoubtedly else commodities, inflation as There the price everywhere curren<lY, of and total iS6ue of Dominion notes on March 31, 191-4, was $117,795,718.

It reached a peak of $337,319,300 in November H118 and on it amounted to $3Il, the 31st March last 932,7!l1.

is Of issued against gold.

The amount of gold required undcr the Dominion Notes Act, as amended, to secure an issue of this amount is $90,866,006.
Gold to the extent 01 $100, 2B6,2BO is available.

$26,000,000 of the re mainder of the currency wag issued for na· tional purposes under the authority of the Dominion Notes Act 1915, and secured as therein provided.

$50,000,000 was issued for the purpose of making advances to the Imperial Treasury and is Sf(lured by the pledge of approved securities, and $107, 566,725 was issucd to the banks secured by approved ~ecurities largely consisting of Imperial Treaaury Bills and our own Treas ury Bills.
As a result there has been an increase since ·:March 31, 1914, in the circu· lation issued by the Dominion of $194,137" 073.

<In November The banks' circulation on 31st March, 1!

)14, was $96,848,384.

of the preceding year a high point of $126,839, 6i1l) was reached.

On the 31st March last it amounted to $225,769,628.

As against this increase, in the same period the holdings of the banks in cash rescrves (gold and sub sidiary coin) rose from $45,661,913 to $79, !
)9(},836, and the deposit of Do-minion notes and gold in the Central Gold Reserves, ear marked for the redemption of the bank note rose from $3,ff.Xl,OOO to $108, circulation, the bank holdings in 200,000.

In addition, Dominion notes for general reserve ,pur' poscs rose from $96,227,321 to $184,152,673.

Tabulating for purposes 01 comparison the combined circulation of the country 8S of March 31st, 1914, and the 31st March last, the result is as follows;- Dominion Note Circulation Bank Note Circulation .
.

Leu Dominion Notes held In Central Gold R~sen'e5 March 31st, I~H.

U17,19'5,718 96,848,384 U14,64'4,10'2 3,(;00.

(100 March 3111t, InO.

$311,932,791 221'i,169,628 $537,102.420 ~7,700.0()0 $211,144,102 $HO.

(I02,UO Gold Held.

.. .. .. By Government.. By Banks.

In Centrlll Gold Re6erves .. .. .


96.161.366 '5,661,913 on SlU,3Z3,2j9 Per Ci!nt ot Total Gold to Total Outslan:llng Circulation 10'0.28G.280 19,990,326 10,500,000 U90,777,ua.. " the 6tatement , - the combined As the country amounted on circulation of Ma'rch 31st tei $440:002,420 as againet • 211,144,100 on :March 31st, 1914, a percent- age increase of 100 per cent.

show6, last .comparing these increases with those of the Right Hon.
Reginald other eountries, McKenna Tf!Cently stated that the circula· tion ofGleat Britain had increased 207 per cent between 1914 and the end of 1919, while the eilculation of the United States, Ill; given in the report of the 6ecretary of the Treasury, shows an increase of 70 per ~ent from June 30, ]914, to the <lorrespond log date in 1919.

The circulation of.

other countries taking a prominent .part in the I\"ar has increased to far greater percent ll€ea.
Unquestionably, the currency in light oi former gold reserves is inflated.

The 'fact, however, ill that the world ovcr currency to an ever-increasing degree is related to move ment of oommodities, sC'Cured by '8 national guarantee eupported by approved securities.

This trend was apparent before the wer.

The best illustration is perhaps afforded the by t·he Federal Reserve legislation of United States.
Under that legislation, cur rency issued by Federal Reserve Banks re quires a gold reserve of 40 per cent end no currency stands higher.

Under aU the circumstances, bf!aring in mind that Canada before the war had to ,borrow abroad to finance her own require ments, bearing in mind that during the war and since the Armistice she has not only financed herself but extended credits to other nations, the situation of the conntry'!> currency remarkably is good.
The perccntage of the gold reserves t.o the Dominion and bank note cireula\.ion is 43 per cenl.

The percentage of gold to "er.v also has COMMONS the totnl circulation of Grea~ Britain based on 19m figures is 2& per cent and of the United Sta~s approximately 55 per cent.

large as it is, The circulation, is all re quired.

The greatest demand that actual circulation has kl meet is the pay-envelope.
In view 01 to-day's conditions the world over on a greatly increased wage scale, much more circulation is now required for :this purpose.

The of commodities mcan '.hat more money must be kept in the tens of thousands of shop :til1s all over the country.

The constantly increasing demands on the 'Mint telJ their 11 ,no, 108 pieces of OWofl story.
coinage were turned- out; in 1919, :/0,906,003 pieces-, a.nd for J.ast march .. 2,677,874 pieces were coined as against 800,646 pieces in March, 1914. increased In 1914, prices Increased credits have contributed and contributed largely in the first instance to increase in the cost of com the abnormal modities, and to a lesser ext-ent increased circulation contributed to the sallle result.
The cost of commodities under new high standards once having been aTrived at, howc\'er, if business is to continue in Can ada under existing world conditions, both the inflated currencies and inflated credits are at the moment neoossary to support it.

The high prices in Canada could not be 'and wcre not made by Canadian action alone.
They are the result of the general trend in the prices of commodities the world over, and to-day were it possible to suddenly deflate Canadian credits and cir culation, with the general demand for com modities that the influence to-day cxists, on the general situation would be negligible.

Prices would continue high and the only result to the Canadian public consequent on ~he withdrawal of purchasing power would be stagnation of business, unem ployment, and loss of production.
As stated, inflation of credit has more to do with increased buying power and there fore, with that increased buying power, has more to do with affecting the cost of com modities than circulation.

It is true that in part these credits are increased by an inflated circulation, but the circulation de posited in baTIks from t~me to time plays deposits.
but a small part of Every credit transaction, every advance made by a bank to a customer inevitably produces a corresponding deposit in the banks of that cusklmer's creditor or credi tors.

The net result is to increase bank deposits by the extent of the credit and to increase the liabilities of the bank grant ing ,the credit without any corresponding total the lSlr He'lry Drayton.]

increase in its cash assets.

Obviously.


if the money advanced is to be applied in a productive agency which would be carried on with a profit and result in a large gain of commodities to the country, there is no inllation.

On the other hand, the business sit.uation has been improved.
it be, inflation of The credit basis which is more vicious than any other basis is that which is given for Government elCpenditure on non-produc tive objects and which does not result in any addition to the national production.

Every loan lor an unproductive purpose that the Government makes, no matter how to some extent at any successful the rate increases the credit It either does it directly, as in country.
cases where money is loaned to loan sub scribers by the banks for the purpose of enabling lhem to take up the Government's securities, or indirectly by taking away from the productive agencies of the coun try savings which be available for them, rendering it necessary for the banks to enlarge credits for essen tial purposes 01 production which otherwise would have been met by the savings of the in other word!

!, has the effect of removing capi taL the tool of industry, from it!!
ordinary industry and and legitimate purpose of production.

to be noted that in It ought Canada the loan situation is extremely satisfactory.

Not only has the great bulk of our loans been subscribed kl by our own people but in connection with all our large issues not one single bond has popular been subscribed to by the banks.

Cana dian banks are not loaded with governmen tal securitie!!.

Government borrowing.

otherwise would nation.


The increase in bank deposits which has been brought about in Canada is in a very similar ratio to that which has happened in other countries.

Our total deposits on Jist ~larch, HlI4, amounted to $9!l1,734,246, and on the 31st March last amounted to $1,8.

'>5,131,598, an increase 01 87 per cent.

In England, according to Rt.

Hon.


Mr. McKenna, bank deposits increased- 115 per cent from 1914 to 1919, while in the Unfud States an increase of 80 per cent in total deposits occurred between 1914 and 1919.

In Canada it may be noted that the Gov ernment's war borrowings amounted in round num bers to $2,000,000,000 as against an increase in deposits amounting to $863, 397,352.
As a result, the increase in pub lic purchasing power gauged by the total currency in circulation and total bank de posits in Canada increased 91 per cent in In England 1919 over the figures 01 1914.

MAY IS, 1920 "" the increase was 125 per cent and in United States 78 per cent.

The commerce of the country sliB requires ample credits.
On the 31st March, 1914, the lotal of loans made by the Canadian banks amounted to $928,184,060, and on the 31st March last the loans amounted to $1,527,078, 232, an increase of 65 per cent.

This large sum does not include any advance to thp.

Government.
Government.

Although the business men of the country and those requiring accom modation are now enjoying this great in crease in credits, the fact is that from avail able resource:; the banks in Canada as well as in all other countries ought not to meet the full requests made for further credits, injurious apart entirely from the effect credita still increased would have on the general economic situation.
further The situation is therefore one in which it is impossible by any direct Government action to bring about deflation either in eirculation or in credits without great dan ger of economic disaster.
Inflation ean only safely be cured in this as in other countries, by the Government and Provin loans, cial Governments stopping further and by all governmental in cluding municipalities and indeed every in dividual whose circumstances permit it, re ducing expenditure whenel'er possible and by an increased production in all our forms of productive industry.
institutions, While the trade figures of the country show advances in the ,'alue of our produc tion and exports, and while these figures correctly show our standing and growth as compared with those of other nations, the fact must.

not be lost sight of that these figures are based on the inflated values to day obtaining and that expressed in quan tities the country in stead of increasing has actually decreased.
Without wearying the House with statistics, to mcrely point to the bed it is sufficient indicator of the trade llctivities, amount of tonnage handled by t.he coun· try's railroad system.

t-he production 01 that is, Those statistics show that in 1918 our rail wsys handled 121,543,681 tons of freight.
This indicates a remarkable activity parti cularly in view of the fact that many of ~he country's best workers were overseas and that relatively a very large propol' tion of our population was withdrawn from agriculture is and specially significant in view 01 the fact that in the year 1914, with our men at home, the freight handled only amounted to 101,300, 989 tons.

The tonnage handled last year, however, only amounted to 1l6,699,['12 tons.

Instead of decreasing our production the industry.


It the country imperative necessities of re (juired that it.

should be largely increased, not only to assist in financing and carrying to on the country's operations bul that reduction of in bringing about assist t·he present high cost of living which is so much desired.

also Trade.

I have already referred to the aggregate trade lor the past year and the favourable balance that.

has developed over the past five years.


The results af the past year re quire a greater detail.

Canada's external trade in 1919-20 resulted in a favourable balance of 8220,000,000.
The chaotic con dition of foreign exchange during the year was not without its influence on our busi ness abroad and tended to complicate the In readjustment of selling the United Kingdom-our a market-the Canadian dollar was at premium ranging from 1 to 22 per cent, while in the United States, where some 75 per cent of are made, our dollar 'has b~en at a discount of from 21 per cent to 171 per cent.

the national purchases international largest trade.
The rate of exchange thus worked against Canada in her chief selling market as well as in her chief purchasing market.

An appreciated currency assists national buy ing in any market, a premium, while purchases are made propor tionately the more onerous when made in' a market where the currency is at a dis count.
in which it is at Our total trade being &363,000,000 imports from United Kingdem amounted to $IW,Z74,OOO, which is ~5:1,OOO,­ 000 greater than in 1919 and very nearly, as expressed in dollars, equalled our pre·war trade with the Mother Country.

Her pur chases from us totalled $489,000,000.

a de crease of $51,000,000 from 1919. the balance of in Canada's favonr.
While our exports to Great Britain have fallen oft, it should be noted that the 1919 figures included about $170,000,000 for munitions and war materials.

To the ex tent of '120,000,000, therefore, this transient trade has been replaced by trade of a more permanent character.

The increase in im ports frOom Great Britain has been very marked in recent months.
They rose from a low point of '5,204,979 in April to $25, 555,386 in March, t,he latter figure const.itut ·ing not only a record but an exLraordinary increase.

Figures for the last six: months have been as !ollows:- October November .. De<:embcr .. .

..$ 8,655,848 10,919,282 9,888,015 .• COMMONS 16.414,503 14,953,730 2~,555.3S6 January •.

February •••.

March ....

The increase in impor~s from t·he :Mo~her Country is very gratifying and is very sig nificnnt.
volume of her monthly exports to Canada prior to the war was 514,395,740 in March, It is to be noted that tne good old Mother Counlry very nearly doubled March last, the greatest amount of exports she has ever sent to this country, previous greatest The l!H3.
Exports to the United States amounted to increasing by $9,000,000, while 3464,000,000, imports from that country reached the un· precedented figure of $802,000,000 exceeding The year's 1919 imports by trading, therefore, resulted in an unfavour able trade balance of The volume of imports from the United States ·is all the more remarkable owing to the fact the that for a considerable period of year the adverse exchange rate which has $338,000,000.

$55,000,000, - - obtained has added to the extent of the de.
preciation of ollr money in New York an additional cost to the Canadian purchaser.'

It is apparent the mere question 01 that cost has not weighed very much upon the Canadian buyer.

Undoubtedly, ex the interests of our change rate is again·st national buying from the United States.

Ii practicable it ought to 'be remedied but H cannot be properly remedied by any arti ficial means.
It will be remed~ed and can only be permanently relievod when sterling advances to its normal position and Can ada's commodities with of United States is reduced to n more reason able ratio.

interchange the The following compilations indicate the trend of our trade both as to imports, ex ports, and total (1) with all coun tries; (2) with the United Kingdom; and (3) with t'he United States, for the last three years and 'for the pre-war years of 191~ and 1914:- trade: Canadian Trad&--Merehandise Only.
Domestie Bnd Total Trade.

Imports '0' Consumption.

• Exporte :ForeiWl· • • 1,041,151,421 1.013.894,3M 2,548,113,538 2.

185.

194, 620 2,3:;1,114.886 Fiecal Year ended March 3lst- ...... .... 1913 .... ..... ....... 377,068,355 670,089,066 .. .. ..... .... 1914 ........ 618,457.144 455.431.224 1918 ........ ..... ..... ............ .................. 962,543.146 1,586,169.192 ... ......... 1919 ...... 916,429,335 1.

268.

76.5, 285 1920 (unrevised) ........ ..... ..... ... .. , .......... .... .
.. I.OM.516,171 J.

286, 6S8,109 .. ........ .., .

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

... Trade with United Kingdom.

- - Fiseal Year ended Mnreh 3lst- 1913.

19B .... ... ............. 1918.

............. J919 ........ 1920 (unrnvised) .. .... .. .. ....... .... .... .. .. .

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

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

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

...... Imports '0' Consumption.


• 138,741,136 132,070,362 81.302,400 73.035, liS 126.214.36.5 Exports Canadian Produce.

• 170.161.003 215,253.969 845.480.069 5010, 7W.

917 489.151 •.

'i52 Total.

• 308,003,639 247,324,331 926.782,472 613,186.095 615,425,917 Trade with the United St:ltes.

- - Fiscal Venr ended ltlllrch 3\$t- 1913.

... ... .

... ............. ...... 1914.

.... ... .. .... ....... 1918 .... 1919 ... 1920 (unrovi>Jed} ....... ........ ..... ,.
.. .. .... ... ..... .......... .............. .. .... ..... ... .. ........ ..... ... [Sir Henry Drayton.]

Imports '0' Consumption.

• 435.710.081 395.56.

';.328 191.906,125 746.920,654 8ln.

095, 452 ... Exports Canadian Produce.

• 139.125.9S3 IG3.

312, 825 417.812,807 454.873,170 464,029,213 Tou!'

• 575,496,034 558,938,153 1.209,718,932 1,201.793,824 1,266,124,725 ~!A Y la, 1920 The follO\\'ing st"tenllmt indicate~ the dislocation brought about b."
the .....ar In our two chiet markHS, Great Brllah and the United Statn.

(E:q)re~s...d in l'erctntal:es or the Whole.)

.

- - C(l~odo'~ Pllrc~osu.

Pre-War.

Post War.

Year ended Yel<r ended 3tH ~lar.. 19B 31st Mar., 1919 3btMar., 1920 Year ended From United Kingdom ... From United State,.... .......... ... .. ........ ...... .. .. ........ ~1·3S% 63096% 7·96% 81'50"/0 1I·86% 75·4.4% Canado'8 Sule~.
To United Kingdom .. , To United States.. ............ .. .. ........ ....... ......... ..... .. ..... 48·81% 38·85% 44'20% 37-66% 38·54% 38·94% Reyenue, 1919-20.

The revenue f()r the fiscal year ended 31st March last will when the aCMunts are finally closed reach approximately $338, 000,000.

This is the largest Tevenue that the country has ever collected.
Instead of lessened receipts, 85 conditions at the time the last Budget '\\'as prepared seemed to indicate, the reven-ue of the preceding year has been exceeded by $75,000,000, and the country's revenue for 1920 was no less than $255,000,000 greater the first year of the war.

The chief sourees of re\'e nue were as f{lilows: than that of • • • .

.

.

Custom8.

.

Excise, Post Offl<:e. .

'Buslness Profits 'War Tax.

.

Income Tax.. Other war taxa.tion,.

.. .. .. .. .

.

$l69,OOO.


(HIO 43,000,000 Z2,()'QO,OOO 44,000,000 20,000,000 17,000.000 Expenditure, 1919-2O.

be The consolidated fund ordinary expendi.

tme will approximately $349,000,000.

This sum of $3019,000,000 includes $lOS,SOC, 000 interest on pu'blic debt, $26,000,000 for pensions, and $49,000,000 .for Soldiers' Re establishment.

For in:vcsbment and ca.pital outlays, be yond the ordinary current expenditure of $3019,000,000, an expenditul'e of $187,BW,OOI is e.Btimated.
The resulia n;t is $[">.36, 741,UO and represents the outLay of Canada foor all :purposes apart from 'war during the past year.

tMal With a total Tevenue of $388,000,000 and an ordinary expenditure of $349,000,000, it will be seen that during the ,fiscal year 1919-20 the Go\'emment, after meeting all ordinary in int.erest account and oreased amount pensions over totalling nearly $39,000.000.
has a sUl'plus of ap !proximately $39.000.000 onr ordinary ex· the previoUi; year eXlPenditure, including for an I'" penditure, ture.

to apply to capital expendi The eXlpCllditures demobilization for 1919-20 will amOWlt to $350,000,000, making a total outlay :for the year of $866,741,110.
Our total eJlipenditure for the war, up to and including the 31&t March, 1920, no'\'.. amOWl-t8 to $1,674,000,000, apart altogether from such expenses resulting from the war, as Pen sions, Soldiers' Civil He-establishment, Sol· diers' Land SettiemeI11, and interest on war debt.

Debt.

During the year just ,passed the country paid off a floating debt of $247,000,000 out of the proceeds of the Victory L01tn issue of 1919.
The floating or shQrt date indebt the close of the ednes-s of the country at year amounted to only $88,956,000.

The year debt during the addition to amounted to $300,000,000 and the position of the net debt has already 'been referred to.

the Expenditures for 1920-21.

The Main Estimates for 1920-21 total $537, l49,428 and Supplementary Estimates for $12,500.000 !for bonus IlImlP0SeS have -been tabled, with the question of Main, Supple mentary Estimates still standing.
In the nbove-mentiQned Estimates already brought down cert-ain considera,ble '!lIJIlounts dassified as im'estments are induded as follows: Soldiers' Land Sf"ttlement Loans .. $50,000,000 Loans to.

Canad,ian Northern, RaHway .. .

.

.

.

.

.


48.600.000 For Railwa)' Equrpmem ()UI'POlleS .. 1'7,000,000 Loans to pro\';ncf'$ for Botter Moulting Compan}·.. .. .. .. purpo&es !13.300,OOO to which ought to be added: $20,000,000 for shipbuilding programme incIuded in the above Estimates as "Public WO'Tks (Marine Department), Capital."

p'}:\,'S>;l> IWITlOS 2484 COMMONS The estimated expenditure on ordinary aCCQunt for the ,present year is: ·Main Esti· mates.
$:r..!8,500,OOO and Civil Service bonus, $12,500,000.

Of this, $140,000,000 represents interest on public debt, an irucre88c over 1919-20 of $31,500,000.

An estimated ex penditure on capital account of $4.1,000,000 is also included in t"he total of $M9,649,428.

There will be no separate Act providing for demobilization cX'pcmcs this year.
The :Main Estimates contain provision for $38, this purpose and also rover dis 463,400 fOf Mibuted items to the amount of $1,745,624 for services paid out of the demobilization In order to rom appropriation last year.

pare the expenditure proposed for all -pur poses a,part from the ,war with that of the past year then of $40,209,024 must be deducted from this y.ear's Esti mates.
As th.ese Ei~timates are alS<l en larged by an unescapable increase of $31, it will be found interest, 500,000 in debt that for oomparable expenditures, notwith standing increaged costs of service, a sav ing of $71,709,lYlA is indicated.

the arno-unt Probable income for the peesent Fiscal Year, 199..0-21.

9 .. .. .. .. .. .. for ..


The revenue for the year ending the 31st March, 1921, estimated on the basis of ex isting fiscal legislation, and assuming that values of importations 1O'r customs purposes remain practically the same as for 1919-20. should amount to 5:181,OOO,OOO"I1S follows: .

.

$167,000,000 43,000,000 22,000,000 .. .. n.llwa}·s .. .. .. Buslnl'1l5 Pronts War Tax.

Income Tax .. Other War Taxation.. All other revenues..

The revenue from the Government Customs..


ExcIse.. .. Post Offlce.. Government months.. rail- ways for 1919-20 is put at $42,500,000.

For 1920-21 only $28,000,000 is taken into account on the assumption the end of this calendaT year the revenue from Gov ernrnt!nt railways will be under the t!ontrol the Canadian National RailwaYll, and of applied directly againd the working ex penses of such rail .....ays, which will be eor respondingly reduced in OUT estimate 01 or dinary expenditures for the year.
28,000,000 40,000,000 35,000,000 17,000,000 29,000,000 .. .. that at .. ..

Including the estimated revenue 01 $.181.

cash on hand lind outstanding 000,000, counts including balances due from Great Britain make a whole total $720,441, In all probability t,he whole 01 752.88. these accounts will not be collected within the year and $571,000,000 will more accur ately represent the actual cash resources for of [SIr Henry Drayton.]

already the year.
already the year.

No further pointed out, ought In -addi_ lion to the commitments already mentioned.

certain floating obligations mature during the year.

They are as follows: loan, to be made.

as Treasury BlILs, Oct. 1st, 1920 .. $2~,G05,OOO Treasury Bms, Oet.

15th, 1920.

49,215,000 Debenture Stock, June lilt, 1920.

238,~00 Total.. .. $14,058,'00 The revenue of the year ,and eash assets least not only CaTry available should at current expenditure but retire this debt.

by the These Estimates.


readjustment increased ·this year Deficits b'*ln GraTKl Trunk AcquisitIOn.

The current expenditure, however, will Oe greater tthan that already indicated.

on railway the system have the in reported Main dur deficits period will be ing acquisition Olah:riall}' the of the Grand Trunk.

The primary object of the aCfluisition of the Grand Trunk was to render efficient and properly complete the National system.
The country had a la.rge rail .....ay investment with proper ter minal facilities in the West, but, speaking g:enerally, lacking them in t·he East.

Tho) railway burden was also largely increased by the failnre of the Grand Trunk Pacific promoted and owned by the Grand Trunk.

The country was faced with the necesl'.ity either of providing new terminals at great leading to a still cost greater r-ailroad duplication, or of acquiring the Grund Trunk system.
traffic centres of the East had to be opened to the National system if that system was to be put upon a proper basis and enabled to properly through-traffic.

in Over and above this, the Grand Trunk waa acquired for the purpose of reducing exist· ing and enabling extensive opcr:lting economies to be made.
in ea~tern centres, duplication eompete The all Over and above these considerations, the acquisition of the Grand Trunk was highly desirable in order to prevent the insolveney of the line and the consequen~ breakdown of railroad facilities in the districts served by that system.
Railway receiverships in some instances do not carry with them serious consequences, but in the case of the Grand Trunk a receivership would be ex ceedingly objeetionable owing to the fact that the company's system is composed of many separate railway corporations having in instances separate obligations and differ ent creditors, rendering a re-organization as of a completed system very difficult.

Such re-org.nnization would be attended with still MAY 18.
1920 2485 irrcater difficulty owing to the fact that part of it would take place under the direction of Unitcd States courts and part under the direction of Canadian courts, The disloca tion of business would have been exceeding ly great and the inconvenience and loss to Canadian shippers and consignees and to Canadian business heavy.
Some economies ought to be effected in future, but with the arbitration the ncar pending it is improbable that full benefit of the Grand Trunk acquisition can be ex It will be pected in the current year, necessary to make advances to the company to cm'er past due operating obligations.
These advances will constitute obligations of the company and as such must be taken into account In 'addi tion to this, advances of necessity will be made to provide for this year's operations, including the acquisition of necessary roll ing stock.
in the arbitration, The abstract of the company's c.lsh book of February 21 last shows obligations n ol'erdue or short.ly payable amounting to $18,7IO,5B8, made up ,in large part of unpaid l'ouchers, bank overdraft.s, drafts held for acceptance and short date notes given for supplies.

As against these debts the Grand Trunk has supplies on hand and certain capital accounts as against which no capi.

issue has been made.


Thcy are, how tal ever, not of a character which can be relied upon for the purpose of supplying cash to meet these liabilities, The .approximate amount to COl'er ad· the purposes above mentioned "ances for is 528,000,000.

Railway difficulties and overdrafts ought now to be at their peak.

Proper eo-ordina· tion and economies will, just as soon as the Grand Trunk arbitration is over, be practi.

into effect.

cable and will be put Thc balance shcet, however.


inevitably depends on the cost of carrying on business, which has been very greatly increased, and the rate schedule.

The serious drain general made by the railways on the country's fi· nances ought to be materially lessened.

As a matter of common justice to Canada it should be stated that the charges of un· f-airness le\'ied against Canada by different shareholders at Grand Trunk meetings, are unfounded.
The simple fact remains that if the Grand Trunk had not been taken over the shareholders in all human probability It would have lost their whole investment.

is entirely untrue the Government that forced the company to pay a highly in the same lime creased wage scale and 6t 1581 from raising its rates either prcvented it through the Board of Railway directly or Commissioners.
the Grand Trunk is reported to have made the following statements at the special general meeting of the company: chairman The of thel·e were inOU(!ntlal men in Canada I kne\\' the polley the Government should who· thought JJursue was to let us alone, and that the weak~r we beCRme the ens;er we could be dealt with heal')-they knew we were beIng -(lleur, to carryon under rorced by th.. Government over which Impossible condltlons-condltlons we had absolutely no control.

What were those conditions?


That we should meet every order Issued by the Canadian Railwa.y War Board to Incre,lse wages by Immediate compliance.

notwithstanding that no Increase of ratn to meet the Increased expenses was allowed.. freight Ilomelhlng under In 191'8 an Increase or rates Wall g.·anted on a great portion of the freight car In March l'(; per cent ried.

and something under U. per cent in AUgllllt.


.Notwlthstanding thIs, owIng to a further seri_ ous Increase of wages beIng ordered by the Canadian Railway War Board, wIthout any there was an correspondIng Increase In rates.

aetunl decrease In net protlt for The grOM traffle ror 191$ amounted to £12,600,0(1(1, as COmjlared with .£9.800,000 In 1917. or a gross Increase of £2,700,000, but the working expenses Inerell6ed by £2.90{l,OOO, or a net loss of .£200,000 for 1918.
In 1919. there will and the accounts of which are not yet conlfllete, lhe gross earnings are estimated at H4,OOO.OOO, as ",galnst £12,600,000 In 1918, or an Increase of £1,400,000.

OwIng, however, to another large Increase in wages being ordered by the Canadian Railway 'Var Board-agaln Is not ex~ without any increase In rates-It peeted In net profit.

compan)' wlll only be able to meet Its fixed charges, ThUs, ln each of the three years-Ul1, 1918, and 1919_in consequeOl::e of being compelled.
by to order of the CanadIan Rallwa.y War Board, !l'rant Increased wages without sufficlently In creased rates, the shareholders lost on the aver· age at leut between £1,2&0,000 ana .£1,&00,000 In each of those three years, Which they ought to have I·ecelved In dividends.

be consequently the Increase lUi.

any that The direct railways wcre imputation conveyed to the the Railway \Val shareholders was instiiution to Board was a governmental It subject.

who~e orders II statutory was not.


That board was not body but was an organization formed by the railway companies (including the oper· ators of the Intercolonial) for the express purpose of more perfectly co-ordinating their activities and for the purpose of dealing "'ith large railway questions.

The board was organized in I!H7.
The Grand Trun]{'s representation was 8S follows: Mr. Howard G, Kellcy, a president, and Mr. W. E. Gil· len, chairman of the Administrative Com· :Mr. GilIr.n subsequently rctirod mittee.. and Mr. W. 0, Robb, a vice-pre8ident of the Grand Trunk, 'ViM elGCI.ed a member of the In HlI9 the Adlllinistrative Committee, 2486 co~nIONS hoard was reorganized as The RIli!way Asso ciation of Canad:a with ~-[r. Kelley this time ,kS sole president and with Grand Trunk _represen~ation on every committee.
The urganization was f!ntirely a railway organ· It was not a Government organiza ization.

tion.

The organization had, however, no p.ontrol over The Gralld railroad rates.

Trunk has American lines as well as Cana dian lines.

H has traffic originati"ng at Am for Canadian destinations.

erican points The rate for the shorter haul in Canadian territory canllot obviously be greater than ~he rates on the longer haul for Canadian destinations from American territory.
Sub ject to this consideration, and just as soon as action was taken by the American Com mission, every application made by the com pany ior a general increased tariff during the whole of the war period was given effect to.

anci I am informed by the Board of Rail· way COlllmissioners that there is no general applicalion for an increase of rates by the Grand Trunk Railway ComplLny pending or refused, nor was any application of that character pendin~ at the time the meeting was held.
The highest dividend distribu tion of the Grand Trunk amounted to $4, i36,241.22.

The average dividend pa~'ments are much lower withou~ deductions being made for deficits of the Grand Trunk Pacific (the subsidiary of the Grand Trunk and ol'ganized by it) which were Illet by ad vances made by the Parliament of Canada to an amoun~ in exccss of $50,000.000.

Luxury Taxes.

and luxurious Not only is more revenue necessary but expenditure extravagant ougM to be chi'('ked.
Just so long as ex penditure on non-essentials and extrava just so much gant expenditure continues, longer wiU the drop 'in the value of essen tials be po-stponed.

On those having in come more than necessary ior properly maintaining themselves and families, there rests a special duty of saving whenevel possible and in this manner adding to the available financial for develop ment and for industrial undertakings.

Ex travagant buying should 8tOp.


With this end in view, as well as for necessary rev enue, certain is proposed to levy on specified articles excise taxes which are to be paid by the purchaser to the vendor at the tiille of sale for consumption or use, or on importation use other than resale.

Upon certain articles of ,wearing a.p'P'Mel, su.ch as boots.

shoe... , ere.• tl pair.

men's alllt hoys' in exce-s.s O'f $\) fur Nat!

'- 811d sn,i.!..

in exci"s!

'- of $45 \'Oa('h.


consumption resources for or it [Sir Henry Drayton, J ;;hirls.

exc~;; of $Il~l pach.

WOHlen'.• rolles in eX0eS;l of \\·... llhm·~ suits dres~,·s ill "Xl'es!'

of .H:, eal"h. ill ,~x("'ss of $(j,() e'H'h.

Hlel1·.~ ami \\"omen'~ ill (wcrcoal5 ~5(1 cadl: hats an;j ll(!oCkwear.

hose.

prices.

bought.

g-loves an...1 (t1X"l'a fang and i, proposed to levy a tax of 10 per cent of the total purchase price.
The women are given a litHe preference over the men because men's suib in excess of $.J5 will 'be tned, whereas women's suits up to $00 will be exempt from taxation.

,s,l'ecifi\l\' purse..;.

cloaks.

a.bove on it Mr. BUREAU: ,W'here does the influenc~ come from?

Sir HENRY DRAYTON:: The same rate 01 in excess ivory handled cutlery, cut lace, sporting of tax is to apply to trunks in excess $40 each.

valises, suitcases.
valises, suitcases.

etc., of 525 each; glass ware, velvet and silk fabrics, ribbons, silk em'broideries, goods.

and Under the terms of the French Treaty silks, velvets-, lace.

and silk embroideries were given a preferential treatment.

Not only was France interested 'in the Treaty hut other countries making like importa tions rt'Ceived full benefits of the Treaty.

These countries amounted to eleven in num· ber, including Japan and Switzerland.
The operation of the French Treaty ceases on the 19th June next and thereafter.

subject to what further action may be taken when the tariff is revised.

these article!!

will take rates from 30 to 35 per cent instead of the present mtes ranging from 20 to 211 per cent.

In addition to this, these luxuries will to the abo\'e excise tax of 10 their purchase be subject per cent on the whole of price.
equipment A similar tax of 20 per oCellt of the total purchase price is to be levied upon su.ch articles as cigar and cigarette 'holders and pipes in excess of $2.50 each, humidors and other h\mting.

for shooting, and riding garments, fancy pocket knives, gold, silver, ebony and ivory toilet ware, artides of silver adapted for house fur wearing hold or office use, a.pparel liver' ies, oriental rugs.
expensi\'e carpets and curt·ains, ,and >chandeliers._ (except as provided a'bove), jewellery, smokers, An excise tax of 10 per cent wiU also be payable at the time of sale by the Can adian manufacturer or when imported on boats canoes, boats, yachts.

(when used for commercial purposes re fund of tax is provided for).

cameras, candy and conrectioner~', firearms, shells or cart- and motor M.o\.

Y H~, 1020 2487 p:allof, ill<;tru or:;anf, rld¥E'~.

ments, and plated ware adapted lor house· he,ld use.
mu~ical A like tax of 20 per cent will be 'imposed upon mechanical player grapho.

pianos, phones inl>tru· and mechanical musical ments and records used therewith.

Articles (,ffice of gold lId-apled for household or use will be taxed to 50 ,p,or cent of the selling prices.

A specific tax on playing cards is also provided lor.

On all cards felling at wholesale rates not O\'er $25 pet gross packs, a pack and in excess of $25, 50 cents a pack.

the tax will be 25 cents Excise Tax on Motor Cars.


A large revenue was received during the year from taxation on motors which tot,a:k·d tl2,9G2,365, of this amount f6,378,l71 being from customs dutie~ and $6.584,194 from ex c:~e.

The taxation of motors would seem to be a reasonable and proper source or JIIlS been revenue.
always occupied by t11e provinces, and ir.. stl'ad of it hIS taxing motors generally, been determined to increase the excise tllX, whieh is chargeable both on Canadian and imported cars, Irom 10 10 15 per cent.

The field, however, Beer, Wine, and Spirit Duties.

It is also propo.sed 10 incre~se the dutie~ on beer, wine, lind spirits.

is cruelty.

Mr. LAPOI~TE; That :\1r.

BliREAU: There is no lll()re beer.

Sir HENRY DRAYTON: I hasten 10 reo RHure my hon.


friend that we do not clas~ 2 per cent as beer, and it is therefore not for subject to the tax.

The proposals call an increase in the duties on beer of ~ro ('ents a gallon, on non-sparkling wines, 30 cents a gallon; on spirits, $2 a gallon, and on sparkHng wines, 53 a gallon.

These are - in excess of the present duties both customs and excise.

),Ir.

BUREAU: That hibition law passed yet.

is Ihe best pro· Sales Tax.

Si'!


HENRY DRAYTON: In view 01 the necessities of Increased revenues, a tax 01 (,ne per cen~ on the sales of all manufac· turers, wholesale dealers, jobbers -and im· porlers is 'llToposed.

The tax will not in dude Ifetailers as such but will include the goods manufactured or imported hy any retailer although manuhictured or im ported by such retailer for r· tall sale by himself.
Consideration must also be given to the cost 01 essentials and on this ac the tax it has been determined thai ('Ount will not apply to sales of meats, Iresh, sal ted or pickled; butter, cheese; oleo mar garble, margarine, butterine, or any other substitute for buHer; lard, eggs.
vegetables, fruits; grains and seeds in their natural state; buckwheat meal or flour; pot, pearl, rolled, roasted or ground barley; cornmeal, oatmeal, or rye flour, wheat flour; coffee, green, roasted or grO\llld: tea, salt, cattle foods, hay and straw, nursery· fresh, pickled, salted, smoked, stock; .

(\:ried or boneless; sugar, .syrups and mo lasses; anthracite or bituminous coal; arti ficial limbs and parts thereol, or to goods exported.
'ToHed oats, fish, The sales tax ought not to be used as a basis of lurther profits and must not, there· fore, be included in the manulact\uer's or wholesaler's costs on which profit is cal culated.

The tax when not ah30rbed by the vendor must then be included in his in voice as a separate item.

Stamp Taxe~.
Stamp Taxe~.

The existing tax on cheques will he ron the rate increa~ed on bills of tinued, but exchange and ,promissory notes so as to provide a 2 cent tax on all bills or notes 01 $100 or less ~md for every IfIdditional $100 OT fractional part thereof 2 cents more.

A tax of 2 cents lor each share of stock transferred is also proposed.
by having The method 01 collecting stamp duties on patent and proprietary medicines and per fumery will be changed the stamps affixed by the manufacturer or im porier instead 01 the retailer at the time of sale.

The stamps are not to be included the manulacturer or in the costs of im if not absorbed by t1:e selle.T porter but are to be added in the invoice as a separate item.

Removal of Tax on Moving Picture Films.


Under existing legishU"1l a special tnx is collected <>n filma used in moving picture thoo.tres.

The tax provided is a chnc~~ of 15 cents per film lor each day upon which It has been found that such film is used.

this duty has worked 'l hardship on small movie theatres.
'Mal~Y ,:'{lmplaints nave been received -and it has b(:(':':T:le -apparent that th~ ;;ll\311 the.atTes sometimes represents a charge <!f as high as 6 or 7 per cent of ilS total re ceipts, already subject to municipal and taxation, while in the ease of provincial large thedres the tax amounts to less than 1 per cent of the present tax is unfalT in its incidence <and it it.

Movie has been decided to remove the tax in the case of receipte.
Undoubtedl)' COMMONS of amusement theatres nnel other forms instance proper would a.rrear in the first suhjects of if is felt that it ta.

:<oation, but these theatres arc to be subject to further taxation, it ou::ht to be done by an increase in t,he existing forms of taxation impoe.ed by the provincial and municipal authorities, rather than by a new federal tax.

Income Tax.

The income tax rate was sub~tantially in creased last year, so as to bring it up to the increased United Stales rates.
The in crease was material as the following ex amples indieate: 0.

Incomell of • 5,000 from • 100 to • 1:!0 an Increase oC • " 10.000 from ~O,OOO from :lO,OOO from :;0,000 (rom 100.0aO from 200,000 from 500.000 from 1,000,000 from 39% to l,3S~ to 2,102 to 5,182 to 11,601 to 50,951 to 195,401 to 499,H'1 to li90 1.990 3.890 9.190 31.190 93,190 303,190 663,190 15S 60S 1.188 3,~OS 13.5S3 42,233 101,7S3 164,O~3 The corporation tax was in like manner increased ko," 6 to 10 per cent.
revenue is urgenUy These large increases will be pnyalJle this for th~ rtrst It is anticipated time.

year that they will yield approximately an ad ditional $15,000,000.

That our measures of in view of our geogrnphical taxation must situation have regard to United States legis lation is !l principle that haa found general I do not desire to question it.

acceptance.
acceptance.

But required and a difference or 5 per cent in these individual and corporation taxes will not deter im migration and the investment of outside to ollr national de capital so essential It is therefore pro Yelopmen' and growth.

posed to increase these ta.

'l(es on incomes of $5,000 and upwards by 5 per cent.

The in crease will be made effecti\'e this year.


As a result income of the tax 01\ a :personal $5,000 will be $126 as against a levy of $100 last year, and on an income of $50,000, $9,649.50 as against $5,;82 last year, In the case of a corporation with an income of $100,000, the rate this year will be $10,500 ail against $6,000 last year.

Collection of Income and Profits Taxes.

These taxes are not collected with desir able despatch and under the existing Act'5 there is reason for vexatious delays.
An assessment once made by the department stands.

As a result any zealous officer makes no assessment until satisfied that he has luade every pos.iible check and has ex hausted all avenues of information bearinf: In addition to on the taxpayer's income.
this, the business profits tax requires an exhaustive inquiry into the company afl'ed ed-a.n inquiry which coyers the question of the true amount at which capital dock should be valued, often resulting in shares being valued considerably below their actual sellinl; market value.

and also covers the liflUid and other debts and obligations, rStr e.nry Drayton.l In many caSl"lS personal liquiJ alld othel' assets, depreciation and in maintenance.

cOllles depend on the ascertainment of bus_ ;nei!


!s profits taxes.

The result is delay, loss or int.

'rest, lind ndded difficulties in finally eolleding the tax.

Delay is inseparable from the business profits tax.

The situation can, however, be materially improved in 80 far <15 the ordinnry income tax is concerned.

A Hill will be introduced making each taxpayer in the first instance his own as sessor.
For the guidance of the taxpayer a plain table "'ill he either attached to or in· cluded in the form of return showing ex actly what taxes are payable on incomes of various amounts.

The taxpayer will with for his return include his cheque, either the taxes properly payable by him or for an amount not less than 25 per cent of tha\ sum-the remaining 75 per cent to be paid in three equal bi-monthly inst-almenls, the to be first of such bi-monthly instalment:.
paid at the expiration of two months after so the that return tax: will the whole be the paid Interest will be charc~o!d r<:turn is made.

at the rate of 6 per cent on gil plI.ymellt, made on instalments.

The returns will he carefully checked by the department 1lnd in all calleS where it is discovered that oyer payment hIlS been made by the ratepayer, a ref.und for the amount mun be immei· iately made to him Of' applied on an.y in stalment due or becoming due.

If investi gation show!


the t~ayeT has mis that 'Penalties 'Will be prO stated his income.

vided.

A mistake of 10 per cent in income might well arise from bona fide error and no penalty is proposed.

except that the fur ther payment found to 'be due will earry cent per the fate of 10 'per interest at annum.
Where the actual inoome exceed, 10 !per cent and doea not exceed 20 ,per cent of the amount .shown hy the w:xpayer's re- is made, of amount six month and the after in ~1A Y 18, 1920· 2489 tum, a penaHy of !>O per cent will be pro vided, and where the deficiency is greater than 20 per cen't a ,penalty of 100 ·per cent will be provided.

These penaltiu will be calculated on the amount the returns are deficient.

The praper tax with interest at 10 per cent must alro be paid.

Business Prollts War Tax.


the continuance of ~fany representations ha\'e been made the Business a"aimt P~fits War Tax.

The tn is charged vo'ith being largely responsible for the high c~st .of living.
It is held that it is impossible to fairly collect and administer the tax owing the differenl characteristiea of different kl businesses and to lhe fact that what is a fair in one class of business is entirely profit inadequat-e in another, and further that the capitalization of companies differs very very widely in proportion to their activit-iea and to their resuHant profits, so that some companies are taxed on the same amount of in('{l!O€".

<Ierh·ed from the lime clan of business.


"ery much more heavily than It is auacked on the ground that others.

it directly contributes to extravagance and places a premium on inefficiency.

in man}' instances coJnTlanies in providing for the tax have advanced their costa in far greater proportion than was at all neces sary to provide for these paymenl.s and still keep their business in a ftourishing condi tion.
It is further contended that much of the profits are represented by necessary plant extensions and by stocks of commodi ties on hand whicb have been bought.

and are valued at current high prices, ao that 100 per cent of 'Profits sh~ by the books are rarely if ever ·represented 'by cash.

that Much undoubtedly can be uid againat the Business Profits War Tax.

Under normal conditions it .....ould indeed be hard to find any argument wldch 'Would ill6tify its con tinuance.
We sre oot yet, hO'Wevel', under noL yet normal c<Jnditions.

SUJ])ply has caught up to demand, and in sonle lines of business activity, at any rate.

the salu tary effects of competition are, as a result, not in .pla~', and wha.lever can 'be said against the Business Profits Tax, it at least has m.eal~t that a substantial sum of money has been recC'vered for the country out of large profit::.

th€" that the maximum rates.


Business in 191!1 was carried on under the existing Business Profits Tax and to the it was possible for com full extent panies 10 avoid the tax and paS!

full illcidence to others, that will 4hcady have b€"ell tiOIl{'.

During the current 5"C&1 year our business profits revenues will come frcm 1919 profits, the tax being levied under lut It may year's Act at possibly be that with another year.
business will be more normal and that no Bu~ines~ Profits Tax ought to be levied_ It und"ub!

edly is probable that some measure of de flation and retrenchment will have occurred, that there will be some decrease in the in· fisted prices of commodities.

and it is in the interest of the country that business concerns should be able to make some pro shrinking price lists and de vision for creased bu}'ing power of their customers.

Our Bnsiness Profits Tax is at a high rate.


It makes no allowance for pre"""u profits.

large they may have been.

but hO"'ever fixes an arbitrary return of 7 per cent on the capital employed before the lax com mences to opera.te.

Unquestionably, with the higher return money ~ay commands.

7 per cent is not a reasonable reward for It haa been deter commercial ventures.
is impossible to stop im mined that it mediately the imposition of the Business Profits Tax, and a resolution will be intro duced which will provide for the continu Rnce of a tax of this character, but on a reduced scale, on the profil.s derived during the year 1920, the tax being paya.

'ble in J921.
'ble in J921.

The present exemption will be extended from 7 lo JO ,per cent, the schedule of taxa tion to be as follows; On prollt@ In txcen of 10% but not excecding Hj,~";'.. On prollt" In uce'8 of 15% but not exceedIng 20%.. On protlu In C:<Cl!U of 20% but not exceedlnll' 30%.. On I'l"Onts 30%............, , over .. .. .. .. .. .. .. .. Tax.
2,0% 30% 50",," 60% The present Acl provides a different scale of taxation for the profit.8 of businesses with capital of not less than 125,000 and under $50.000, being one·qullrter 01 all profits ex- ceeding 10 per ccnt on the amount of the cltpital employed.

It is proposed to reduce this tax from 25 to 20 per cent.
It has been leh that the concessions made in the proposed llmendments are sufficient the purpose 01 enabling firms to set for their profits to reserves or a~ide more of plant extensions and to put their businesses ito a better position to meet the deflation period, w'hile at the same time a check will 5t:11 'be held on ahnormal profits.

Removal of Customs War Duty.


The general war customs duty of 71 per 1\1 im- cent was repealed last year articles of food, clot.hing, agricultural in so far COM)IONS It is II lH well items are concerncd.

pll=mell13, and lerliliz.ers.

II~ &Olll~ vlher It, however.

~Ul obtains on a large part of our import:!.· I!vns, a'pproximately thirty million dollilis "i 1'!VE'nue accruing from this source lilH tax which hll8 been bla:n.:'!.

j'E:llr.

pn1ulps as much as IIny tax.


with the ~x· cepl;on of the busineslI profits war tax.

a~ reason for the high cost of living.

Not· .

!l in view withstanding the need for revenue.

the d pn:sent time 10 intelligently revise the ta~­ the incidence iff 'lnd the lurt·her fact is in a generai of blanket way.

works and maintains incon· ~;stt>llcies.

H is proposed 10 abolish entirely ;hiE it per cent war duty.

this tax, placcd as it is impossible at IiJe fact that that it )finor Tariff Changes.
A very apparent anomaly exish in the J'rf'~~nt larm .....hich ought 10 be corrected and the correction of which can do no pos harm 10 any Canadian trade or in siM€.

dustry.

That anomsly consists in the tll.rifl :LC1lJi which allow the importation free of duty of novels and other books (other than Jan fcienlific worka).

when in It is f:!Uilges other than English or French.
Jiropo.sed to remove tne discrimination in fav{lur 01 foreign publications by placinJ:; them in the Sllme category as those pub lished in English or French.

printed Owing to the fact that the blind popula.

tion of Canada has been increased by the war.

it is dcemed a small measure of jus tice to remove the duty on books and other essentials for the blind which Rre not manu !actured in Canada or which are only of tpecial use and advantage to blind people.

Tariff Revision.
Tariff Revision.

The following statement was issued on tariff December 15 la.st on the subject of revision:- the Armistice 11 Since the signing of !lUle over a year ago the Government and Parlia ment have been devolfnll" attentlon to Deace :ond reconstruction Droblemll.

Amon&" the many lluestlons that have received consideratiOn Is taat relating to a genual revision of the tariff.

Dealtng wJth this subject my predeoesllOr SIr Thomas ' ...·hite.
in his IUt Budcet Speech Is re ilorted in HlInliard, June 5 last, as follows:- "It would nOt be ,practlcable at this tlme to revision of ,the tariff.

make a sound general trllde Is most unsettled, stlll ham International pered by war restrlctlons and prohibitions and by exchange conditions.

Which are and may to violent fluctua 'long contlnue to be subject a.nd labour con tions.

Prices are unlltable.

internatlonally (Jitions, un 1:nlll Peace Is restored and the world rutain.
to is upon a more stable buls wllh respect u<pital.

labour, prices.

markets.

and exchan&,e.

the tarltf cannot be re"lud Intelllllently.

speaking, most "It is my hope that Within a year conditions 1I"iIl have become so ltablll~ed as to permIt of fSir Henry Dr;\yton.]

bl!

Such there Should Industrial.

nshln&,.

a g~nerf\l n·,·i"ion M the tarif(.

",'hlch Is Ion" but.

owing to the war.


una"oldnbly overdue: a Preccdlng lIul'h revision thorough Inquiry conducted by lha Minister of r'lnance and two Or more of hili colleallUe, representing the dlfl'erent geographical SectIon, Inquiry should attord <al\ of Canada.

Intere5Ul:.

acricultural.

lum_ bering.

mining.

commerclnl, and nnancl,l, Pro_ ducers and consume"1 alike.

an opportunity ot expreS!llnll their views and opinions and ur&,lng their particular need!l and requl~ments.
The result of such Inquiry lIhould be , body of In.

ronnarlon which will enable the Government to etrect a &"enerat fair to all parbl of the community and efl'ectually promotln&, the national welfarl!

of Canada.

This Inquiry lIhould proceed with Its work JUSt h soon as conditions are sum<::lently stabl1l~ed to pennlt.
:'ory own view II that It might weil be commen~ about a.utumn of this year.~ revision of the tarllt arid Internatlonal Unfortunately, Internatlonal exchanlJes economLc eon(Jitions are not only fnr frOm nonnal but in many re!ll)«'lS are wOl"lle than they were 'Iz months ago or at any tlm ... durlne the enUre war period.

In par_ ticular are not only unnable but err-atle.

Tar ifl' considerations of nece.


!lSlty have lal'l'el,y to be ba3ed on Internationat and economic <::on dillonll and the rellult Ie that the dl!Terent coun_ tries of the "I'orld are sUIl refraining from any general tarttr rearran&'ement.

waiting unlll 'Orne appreciation may be pclMlble of the future COli dltions.

under which their tarlfl's will operate.

re Inasmuch.

however, vision must be based upon :u complete a know.
ledge as possible of the condltlons and rel.. 'ions one to another of our various national llldustrlee and producth-e agencle.. and as It I, aillo desirable to Obtain the views of as many person!!

as possIble whose practical knowledre Is and experience would be most valullble, conllidere(J advisable to be&,11I the COllection of Information relative thereto.

III any gener:t.1 laMI!


It relief In order to obtain proper ruulte from publlc hearings and In order to give aU th~e Inter ested the best opportunity of presentlnll their cases.

It has been decided thilt the inquiry sha.J1 be started by wrItten statements.

Which Should Issue all each Interested cover each particular claimant lees It.

These statementa ror to sho'" the particular complaint In each oUllht Instance, a fUll statement of the grounds on which that complaint IS bued, the remedy pro posed.
and a statement or the &"rounds leading to the conclusion that luch remedy proposed iIJ The issue ts TeaJly of course not efl'ectiVe.

Issue from the standpoint of m~rely a tarin: protection or otherwlee but revenue issue, and in like manner the lubmlllllons of those desiring reductions In tariff should at the slime time Show methods by which compensat ing revenues O&n be obtained from taxation or other sources.
The preparatlon of these state careful ments wIll necessarily require mU\lh consideration, rep' N!sentlltlons as to the problema Involved a.re therofore asked to undertake the prepara.tlon of the aame without delay and forwan1 their statements addrtllaed to the Mlnlner Of FInance at Ottawa.
Upon receipt or the statements they will be lIystematlcally analysed and classified for the purpose of maklnC them G. baala of the general public InquIry to be held throughout the country as Indicated by Sir Thomas 'Vhlte.

Those dulrlng to make IS also a While unfortunately trade and economic conditions are yet un~lable.

t-he tariff inves- ~lA Y 16, l:)2Q 2491 that tigation has commenced and public sittings will be held throughout Canada aiter proro ~8tion.
The investigation will be conduct ed by the DelJartment of Finance with the assistance 01 such expert and other ad I·i.crs a~ will be npcessRry to conduct a lhorough inquiry.

I am furlher 01 the opin ion that not only should the investigation proceed but information SllOUld now be given 01 the principles and policies of the Government in the light 01 which effeet will be given in the tariff revision to lollow 10 the evidence and fnels developed in the inquiry.

.
Our policy calh for a thorough redsi"n 01 the tariff with a view to t·he adoplion 01 such reasonable measures as are necf:s~ary -(a) to assist in providing adequate reven ues, to stabilize legitimate industries Rnd to encourage the establishment of new industries essential t.o the proper economic development 01 the nation-to the end thai a proper and ever increasing field of use ful and remunerative employment be avail able for the nation's workers, to de velop to the fullest extent our natural re~ t.o specially promote and in sources, crease trade with the Mother Country, the sister dominions and colonies and Crown dependencies, (e) '-he abuse 01 the tariff for the exploitation of the con sumer-- to prevent (d) (b) (c) Mr. LAPOINTE: Some change.
-and, Sir HENRY DRAYTON: to safeguard t.he interests the Canadian of people in the existing world struggle for commercial and industrial supremacy.

(I) As a means of raising revenue, the tariff ehould be so adjusted as to place ~he chief burden upon those best able to hear it.

Articles or luxury should be heavily taxed through the imposition 01 customs and ex cise rates.
Food commodities and ot,her necessaries of life, not produced or manu· factured in Canada, should, i·f taxed at all, bear only such imposts as are necessary lor revenue purposes.

Those produced in Can ada should be f1ubjecled to such customs duties only as may be necessary in the gen eral national interest to be determined after investigation from time to time.
sl,rict Apart from the question 01 revenue, the tariff should have regard to the rnainum· ance, stability and prosperity of Canadian enterprise in the qevelopment of all our natural resources in lands, forests, mines, fisheries.

as well as our agricultural and· manUfacturing Consideration industries.

must also he gi,'en to the importance of ('reating and maintaining conditions that will afford to Canadian industrial workers the natural the export of opportunities for steady and remunerathe employment.
It is undoubtedly in the true interests of Canada as a whole that Cana dian workers ~hould not be forced to seek in foreign countries employment and op portunity dcmied them at home by reason of resources, primary products, and raw mat.erials with whieh the Domiuion is so limply endowed.
For the purpose of encouraging the full resources est development 01 our natural the tariff should be so adjusted as 10 per mit machinery and the implements of pro duction to be purchased at prices that will compare equitably with those paid in other countries for similar articles.

The revised tariff law should be so framed and admin istered as to effectively prevent any cus· toms duty being used to facilitate the for mation or maintenance of any combine, among or trust, manufacturers.
dealers, or producers lor the purpose, at the expense 01 the general puhlic, of restraining trade, preventing com petition, or unduly enhancing the selling price 01 any article of commerce.

The prin ciple of trade preference between the differ ent members of the Britannic Common weaith ~hould be maintained and extended from time to time to such degree as may be .found practicable lind consistent with Canadian interes~s.
association agreement the financial difficulties of While a general re"ision of the Canadian tariff based upon t-he loregoing considera tions is· due, it must be recognized that, owing to the war, economic and commer cial conditions the world round have been proloundly disturbed and 1·11R~, as a conse quence it is neither practicable nor possible in the national or public ir.terest to under take such revision until a thorough inquiry is made to ascertain the essential facts upon which tariff provisions must necessarily be based.
All the mo ment can .be, and I have no doubt will be, I am confident that every hon.

readily met.

gentlemaIl has the firmest belief and con fidence in Canada-and that belief is well justified.

Immigration and a reasonable in vestment o.f outside capHal rendering our illimitable national resources available.

but above aU the national characteristics and st.rength of character of the citizens of Can ada, will easily surmount the past.

And Canada's situation to-day is indeed an en viable one.
There is no country in the world that can offer grea.ter inducements to the im migrant and grea.ter inducements to foreign capital than Canada can.

Prosperity is en tirely relative.

Our position relatively has COMMONS finished borrowing, enhanced.

We have and notwithstanding the great increase in our debt, Canada's securities to-day stand as high, or higher, than those of any foreign country in what is t~.dny the great rnarllet fur forclg-li seeurities-New York.
Canada's world ~tatus is far greater to-day not with standin!,!

: her losses and war debts than it was in 1~14.

the lengt.h 01 I crave the induls-ence of the House, Mr, Speaker, {Or time I have spukcn before introducing these resolutions.

I wonder if before reading them I might not sar just one or two words more, You know, some people to-day think, and apparently uelleve, that the country is in a bad state; I do not.
Some people to-day think, and apparently believe, the job ahead 01 that Canada is a bigger job than Canada can look after; I do not.

I wonder if we are not altcgether too prone to forget what Canadn has done; I wonder if we are not entirely too prone to lorget the amount of hard work, of sacrifice and of devotion thll~ the Can, adian people showed themselves capable 01 slIstaining during the war period.
to forget Are we not a little too apt that it was the soldiers of Canada who formed jW:lt a few sllOrt manlths ago the 6i*arhead the fHrces of righteousness?

Are we not oi a liHle too apt tc forget that we have got the same spirit and the same blood in Canada )'et?

Are we no~ a little too apt to forget that their magnificent achievements never could have been and never would have been possible had not in the deed, the women, soldiers were supported, that reinforcements were gent?
Yes, the war record is a glorious record; but there were other war activities.
Why, there is no better record than the record of the Canadian Medical Staff; no better record than the record of Canada's production; no better record than the :record of Canada's transportation facilities, which remained at a higher point than did those of any other country engaged in the war, the men behind and, too, seen tc it that Does it not seem rather ridiculous for any one to seriously think that a nation that hu done so much will not now be able to look after its own business; that a nation that has done so much for Europe and the world is not going to do something for Canada something for that Canada which is 50 dear to every Canadian, aomething for Ihat Can infinitely more ada which is to-day the precious and glnrious by reason of fighting men than sacrifices made by her she ever was before, that country which the very best 01 us in con secrating his services to her is compensated something for so (Sir Henry Drayton,) by the thought that it is impossible for any Canadian to do too much for Canada?
RESOLUTIONS, I beg to give notlcc that upon the Houae resolvin::;- itself into committee I shall move tile following resoilltions; ReSOlved, Thal It 15 expedle-nt to amend The Spcelal War Revenue Act, 191:;, and to pro vlde;_ the articles hereInafter \.
That the t<>llowlng exclse taxes be Impo!led, levied llnd collected on the total purchase price of specified, and on articles of clothing the said tax may be Im poscd upon the combined selilng ,price of ma terlala and cost of manufacture when sotd eeparately;- .
(a) A ta.x or len per cent on,_ Boots, shoes, pumps and sllllpen of any ma_ (not Including shoes or allPllances made terial to order ror persoos having a crippled or de formed rool or ankle) In exce5ll of $9 per IXlJr: Hats, men's and boy's In excess or $5 e~h; Caps, men's and boy's In excess or $2 oo.ch; In HOlle or stQoCklngs.
silk, men's and boy's, exccss or $1 per plIlr; Neckties and neckw"",r and scarrs, men's and boy's, In exceas ot $1,50 CQch; Clothing coniS13tl~ of coat, vest and panta In exceu or coat and panta, men's and boy'S, or h5; Cloth overcoats, men's and boy's, women's and miasM', In excess of $:;0 each; Waistcoats, men's sold separately from suits, In I'xcess ot $5 each; In excess ot $3 each; Shirts, Including night shirts, men's and boy's, Hats, bonnets and hoods, women's and 1l11,,~es', in excess or 112 each: Hose Or stQoCklngs, silk, women's and misses', In !>xc""s of 52 per pair; Kimonos, peltiCOats and waists In excllSs of $12 each; Ing robes; Nlght8'Owns In excess or $3 each; House or smokl~ Jackets or bath and loung- Pyjamas and underwear In exc_ ot $5; Fans: Pursell and pocket-books, In eXCMS of 52 each; Sh<liPPlng and hand-hap In excese of U ea.Qh; Umbrellas, p:l.ra.eols and sunshades In exc_ or $4 each; TrunQ In excess of $40 eaoh: V:l,llllllS, tntveillng bags, suitcases, hat boxes In eXCll.llll at 525 and fitted travelling cases I:aCh: Gloves, except fur In eXCIlIlS of $3 per pair; In excells ot Dreases, women's and mlsees', H5eaQh; each; Sul!ll, women's and misses', In exceas of $60 Open cloaks; Coats and robes, chief value being fUT', the comJlOnent material ot In CXCll$S ot noo each; Ivory handled cutlery; Cut c1aesware; Sportilltl" &,00<1$, such.
a" tennIs racket., nflts, llnowshoes, rack..t covens and prellllOll, skates, tobonrana, oe.noe paddlu and cushions, .kls, polo maUet", baseball bate, glovell, mUQ, pro teclOr9, "hOllfl and untroMlVl, football helmets, 'baeket·ba.ll goa!.s and uni harne" and trOllls, lacrosllO .tleks, form., golf hap and clubs, ball" and rael'" chess and ch.ecker billiard and pool llshlng rods ta.bles, klndll, all at