New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-06-14
CANADA.
TIE PUBLIC DEBT-rHE LEGISLATURE.

From Our O~n NDIr'sIvhu'b-
TORONTO, June :, ]cjS.
The public debt Of the Province, direct or ihd-
rect is over sol ,OOO, GEO. The direct debt il over
SCI 600 600. OF the indirect sd, 100000 consists
Of loans to railroad companies and nearly 81 600, 600
has been issued on the credi. OF the Consolidated
Municipal Loan Fund, which the Government ad-
ministers; and although it only agrees to repay the
loans or the ntere,t Of them out Of this Fund, 'here
ia lit lie doubt that it is responsioe for debt, and
must, if leeds be, pay out OF the Co 'clIdate' Fund
of the Province. OftLe direct lelt the lnP'rlal
Government guaranteed cI,50Oo'g. fOJ ahich
Sinking Fund of cs29 80 has been created. ral'
fund is invested in the british thee percent CJn5os,
although the Province pays Xix ier cen: % thh
debcn,Ires which 10 issues WhCn ir creats5 l'in.
BY the issue Of such Il bontur-s, the Whole OF tae
remaining portion of the dcbc hls been troSsrd
As these dcbentures sell at high premium. the
real rate at which the Province bUrro"s IS only
four aud half per cent, and not SIX, as persons
unacquaintcd with the facts might DE apt to sup
pose from the circumstance that the Pr0vincai
dcbentures bear sly per cent interest. Inc dehen-
lures for the most part IN sterling money, ana are
usually negotiated by Messrs. ely Co and Barring
Bros. \ Co., to whom commission OF one per
cent is paid well a. for all payments on account
Of interest. The question has been raised whether
il would not be better TO consolidate the debt by the
issue of nc debcnture- in the place OF those no"
out bearing five per cent interest, care beng tikeh
that the holders do not lose by tho operation.
Their interests could be secured by taking care thdt
they do not receive less interest on the al0nt thfy
have invested than at present. The difference
| would be made by the difference bet@een TIE mar
ket value Of five Gnd six per cent debeDtlres. At
| present the debentuIes arc made redeenaoe NJ
| tweDty-one or twenty-five years; and the YIe'-
| ton hrs been raised by the Chairman OF thc 'om-
| mittee on Public Accounts. whether It would not ne
hotter TO cease to issue dcbenturcs for definite
period. and instead, to guarantee certain rate OF
| interest for given period, with the option oil III"
! Government 10 redeem them or to continue 10 pay
he same rate Of interest Oh the deb. he munlci-
palitics are largely in debt 10 the Municipal Loan
fnnd for interest: and IN some cases IL mas Oe'h
necessary iur the Government 70 tDreat'J tna0 they
Will cause special tax for that purpose to be lev
I'D by the Sheriff the property ofthe M1nicipal'
iv: aud this after an act was passed last session
| extending the time for the making al payments on
| account of the Sinking Fund. Last year there was
redeemed of th, direct public debt ,33O IL; but
part, at least Of it repaid by the issue OF new
dchtntures: and ON the whole, the direc, rlOlic
debt has increased from ci,3lo,o'D III i.'' ~
| 90 1.5G4 in l-J7. No portion OF tnls
increase was occasioncd by legislative apPfopra,
tions. The railroad companies, TOO, are all bennd
in REGARD to the interest on the Government loans
ast session i'c Legislature passed law pos pom
! INC the claim on account Of the provincial len On
! thai road, TO the amount OF loOOo,oO or T.
! Geo coo. til tie stock and private pOndhoiIers
| should get six per cent on their investment. lhe
| Government has paid cs-.21i in the shape OF H.
tere.t on the bonds which constitute III loan to tie
! Ontario. Simcoe AID Huron Railway Company,
without receiving cent in urn. And hnaly,
4 the Great Western. which has been dividing large
dividends has fallen IA arrears IN the HtNerhulehi
/ for 10 le.s a SUI than fl29191. OF which t""HV
is ON account of interest and i12,U-1 On account oil
/ tbe Sink;uq Fund applicable to the redemption
! of the Government losn. The condition ol inc
public works directly undertaken by the Province
/ as Investments is no better The Province nis eN'
pended upon canal navigation bet Teen Lake Erie
! and Montreal the sum ~ Slt.OUO,WU, 0n account
Of which the public exchequer - bJrdenei Win
| : Geo, coo year in the shape OF interest. Inc
| gross revenue derived from these works IS only
! S3IO1-O a wear; Il sum which, one year with
another do ~ no. suffice 20 make the n"cesSaTy re-
paj-s on the works. These facts show maj We nave
! not succeeded in drawing tho trade a. the West
! through the ST. Lawrence: and unless We can DO
tain much larger shave of it, there Is no nope mat
these canals viii ever become commercial! Ps0ht-
able. Some years ago, certain harber-. roads
ard bridges representing cost Of f746,2-7 were
.old 10 companies and municipalities. The conPe'
| titon of railroads, aided by Government loans, has
DESTROYED hes turnpike, and the result u that s
the companies which purchased. with one exceP-
ton ere in aIrears, and viii doubtless continue 80
till the claims are adjusted on some equitable bass
taking into account the injury inflicted By r&ro IDS
aided by public means.
The legislative session has gwen one s!gn Of
! drawing near Tits close-tbe Government has claimed
ard been conceded three days Of the weeh Tor me
| cOasdeIdtiC n OF It's measures. Inc Opposition 90
net yield without strong 6ght, the House remain
! ing IN session g hours, bat on the division the
! Government msicrty was very large.
Since Sunday the weather has reminded Us oi
Summer: the Spring having for l., most been cold.
! The season promised Ia BE- remarkably coward IN
March and even now it il no. backward. iho
! crops promise well.