The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-22
THE DOMINION.

PANIC IN THE MONTREAL MONEY MARKET
SHARP DECLINE IN LEADING SECURITIES
NEW MANAGEMENT FOR THE MERCHANTS
BY TELEGRAPH TO THE HERALD.
MONTREAL Feb. q, 1877,
There was considerable excitement tho Stock Ex-
change to-day and all tho leading fancies were sub,
jected to further decline Within the past few days
the stock OF the Bank OF Montreal has dropped u,
Ontario y. Toronto Jacques Cartier IA. Merchants
l3st, Eastern Townships l, Commerce x. Montreal
Telegraph p R.chelieu and Ontario Navigation Com
pany l41s, CITY Passenger and Consolidated | y.
AT meeting OF tho directors OF the Merchants
Bank, held to-day. the resignation Of jackson Rae
general manager was accepted The directors are en-
aeavoring TO secure eminent banker 10 take hts
place. aud II successful IN engaging the gentleman
mentioned, confidence may be restored Sir Hugh
Allan has offered 10 resign the presidency. Sir A. T.
Gait is mentioned as his probable successor.
The directors of the City Passenger Railroad Com.
pany have all resigned, with the exception of r. J.
Rcikie great many OF the shareholders have
considerably dissatisfied with their management
being decline of fully 100 per from the market
value about three months ago.
ST. Jean Bapste Bank has ceased to do business;
committee has been appointed to wind up its affairs
Tho subscribed capital is 100000, but only about
$4,000 of that amount is paid up
FINANCE MINISTER CARrwRIGHTs BUDGET
sPEECH-HE EXPLAINS THE LARGE DEFICIT
FOR THE PAST YEAR AND MAKES HOPEFUL
PREDICTIONS.
OTTAWA, Feb. u. 1877.
In his budget speech before the Dominion Parliament
to-day Mr. Cartwright said that the maximum expend
turc OF the Dominion had in his opinion, been reached
In 1876. In that year the expenditures were
$24, ass, o00 while tho revenues only amounted TO
$22, SIS, 0oO leaving dchcit OF sl,000,000. Many
items In the expenditure account were exceptional aud
temporary and therefore The existing state OF things
might be fairly regardcd,as abnormal lie instanced
In this connection the following United States
boundary survey $l34, 900; Centennial and Mennonite
loans, and grants TO depressed Northwest settlers
s2lo,oo0; minor public works closed, $3.50 600;
change OF gauge aud steel rails on the lnercoonial
Railway, $3.50. 900, making total from exceptional
causes, Sl,574,0OO, which would reduce the
actual deficit from ordinary causes to about
slOO,0O0 Had the harvest OF 1876 proved so lar
below the average the calculations OF the last budget
speech would have been fully verified. The decrease
in the revenue in 1876 had been almost exclusively in
customs reduction, whcn was from $l5, 3jl, 900
1873 to S12 $40, 600 The excise, the other hand,
had increased and other sources OF revenue had fairly
held their own, but IL would be seen that the loss
from customs amounted 10 s., 800 200, or much
than tho entire dchclt. 1t was only the enormous
Progression OF imports that had ntcrered with tho
calculations as to the revenue that had been
basis of uati0n 10 tho future. At tho present
time the tendency Of customs revenue was toward I'M
provcment, and although there was some decrease
receipts, other branches of revenue well
maintained The estimates Tor 1871 he pointed OUT
nominaliy $780, 900 higher than those OF the
year-namciy, $23 l67 200 against $23 03 O00-but
something over slOO0OO was due TO entries
did actually enhance expenses Tue necessity Tor
adding TO the public DEBT had entaiicd charge OF
nearly $500 900. but IL subject OF cOIgratu.
aon that tho expenditure Tor public services, cassed
public accounts ordinary expenditure, would
exceed So 800 OOO or 81 000 900 less than 1878
1874 1873 to 1876; anu this included charges Tor
| Indians, mounted police and other items which, as
outlay consequent on the acquisition and organization
Of new territory might iairy be regarded in the
O expenditure on capital account, although charged W
revenue.
COST WORKS FOR COLUMBIA.
1t would here, he remarked DO as well TO notice,
especially IN reply To any one who complained that
government had been Negligent toward the Northwest
and British Columbia, that not only had very largo
expenditure been regard to the former
In tho Pacific survey and the Pacific works
they had spent since Jul. 1874 less
Sd In relation to expenditure Oi the Depart.
ment Ut Agriculture the Finance Minister remarked
that II was probable that the Northwest expenditure
had now reached It's maximum.
| f. REDUCTIONS IN FUTURE EXPENSES.
The reduction OF The rate OF interest would involve
a considerable saving. The loss or working inter
duccd and the revenue from tho wclland Canal would
no doubt, largely increase when tho improvcme u Is
now IN progress were completed The total cxpcndI.
lures Of from So, 00O 700 TO $2 0000O might there.
fore be regarded as normal expenditure for some
years 10 come. On the current year as the result
Of bad harvest there would be a small denct,
and 1t was In the Finance Minister'S opinion, desirable
provide for that contingency wei! to prevent
recurrence OF deficit IN lS77-7S. He then proposed
changes tho tariff already tciegrapbcd and said the
result OF these changes would amount to from $500 OUO
to $50000 This he believed would be sufficient TO
protect the revenue against deficiency from such
II was possible for any government lore
see. He expected the revenue IRON customs would he
S1 600 O00 excise So 800 900, and IRON other
sufficient 10 make up the sum total OF $23, 400 900.
FLArTEEiNG COMPARISON.
He concluded bis speech by referring to the expert
oil the United States, apd showed not only that
the depression had been lar more in that
try than In Cauada but that, both In exports and
ports per capita proportion in favor OF the Do
minion. He claimed that the finances OF the country
had economically administered, that the OF
Canada had been than maintained, that Canadian
securities were increasing IN the estimation Vi capital
lists, and that, while compelled 10 impose additional
taxes the burdens vi the people would be materially
ghtened.