New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-07-02

THE FINANCIAL BUDGET oP THE YEAR-FREE TRAhB
POLICY OF Mr.. GALT-HIs TROUBLESOME DEBTS
FIVE MILLIONS OF LEGAL-TRSDBRs TO BE ISSUED.
From Our Special Correspondent.
TORONTO June %. 1866
Mr. Gait the Finance Minister of Canada, has, in his
budget for the year, iDaugurated Free Trade poey
When Lord Monck was sent to Canada, with the high
sounding title of aforementioned of British America be
had two things in CHARGE procure reduction OF the
Canadian tariff and to bring about an union, federal OF
eesatiye-the latter would have been preferedof the
British American Provinces. The present tariff ranges
from 10 to 80 per cent duty. 1t has not undergone any
considerable alteration since 1885, and for these seven
wears II has been an object of denunciaon by the manu-
acturers of Sheffield and Manchester and these parties
with the Times for their advocate, have gives
Mr. Gait some trouble. He bore all their complaints with
what equanimty he could till other difficulties arose
When Congress abrogated the Reciprocity treaty cry
arose here for the adoption Of Free Trade policy on ne
notion that if the Canadians lowered their tarh they vod
sell an immense quantity of goods to Americans, wbo
would come here travellers or something else 10
fetch hem and they took them across the line without
tho payment of duty il of the business OF Cana
dams third motive 10 lower the tariff arose nom TIE
objections made by of the small potato politicians OF
the Maritime Provinces to the tariff Of Canada on the
pretense that il was high This objection proved an
obstacle the proposed union OF the Provinces aho u
was necessary that it should be removed This motive 10
admitted BY Mr. Gait. Under these circumstances lie
brings before the Legislature proposal to reduce the
tariff about per cent down to the ten per cents which
was his intention have reduced the duty on the bulk of
the imports l2 per cent but that the necessity oe
casioned by the Fenian raids and threatenings, which
oblges him add 81 900 900 TO the estimated ordinary
militia expenditure prevents him from carrying out this
design But he does not abandon the intentions be looks
forward 10 the future in the expectation that this scheme
will be carried out As he will lose the thick end OF
81 by this Free Trade policy he adds an additional
excise duty on whisky and inyents some new taxes.
Mr. Gait repeated, with great emphasis, the idea o.
establishing nationality, to which Lord Monek gave
utteanoe on first announcing the project of federal union
OF British America. awe all look forward" said the FL
Minister d" 10 form separate nationality on this
continent and we caa only do this in way. IT, in all
respects initiate nelghbors and adopt their ss
tenn such a policy must end in assimilation and our alb
sorpion But he thought Canada could avoid this fate
BY framing fiscal system after what he called the Euro
pcan plan though / am not aware that any common
model is 10 be found Ia Europe.
In round figures the exports for the year were
0OO and the Imports $50 900 900. But the volume Of
the export trade increased BY the exhaustion OF stocks
in the States at the close of the war; is not expected TO
be as large next year as il was last.
Mr.. Gait has taken to impose duty Of 10 cents
bushel on small grains coming from the States but he
saws it will DO repealed when Uncle Sam recprocates He
also apparently in spirit OF retalaon, puts duty OF %
cents barrel American -four. As IL Is believed the
States cannot do without Canadian timber duty Of -
cents log is to be imposed This proposal Is ega-,hc
standing instructions to the GoyernorGcncral called the
Royal instructions, which have not been revised within
the memory of living men, say that export duty shall
be imposed But il the Tariff bill pass proposed all that
il will be necessary do will be to send the bill TO Eng
andreserye it as it is all heEe-or the sanction OF the
| Queen. . 49,
But while Mr.. Calf is 80 anxious to adopt policy diff
ferent from that of tho States he is copying it on one
point He has floating debt which, like the small bills
d individual debtors found troublesome, and so he pro
poses to issue legatendcr notes to the amount OF $
900 OOO The whole bank circulation, see is only 81,
1000. But Mr. Gait proposes that these legatender
notes shall be redeemsbe in SPECIE in Montreal and
Toronto Where he intends to get the specie is not quite
clear as all the is liable to be paid and is actually
paid IN paper But he intends to make arrangement
with some bank withdraw its circulation and take i've
Der cent for issuing the Government notes. II Is believed
that this is the beginning Of plan in which the Govern
crnmen is to supply the whole currency Of the country