uAcnouALn's nunorr

Continued from I'll! 1

ius on account :3: nihtiulfllichl year 1954':55. after providing 55l,5tXi.00 for Sinking Funds, of S1, 4.97137.

The overall deficit of 3978,096.4li for the past year is arrived at af- mr providing for all expenditures on current and capital account. mi some 3427.000. net of money loaned or advanced under the policy of assistance to industry (or promotion and ideveloprnent; ml to municipalities. towns or villages for community or youth welfare 131500555-

he net unded and unfunded. debt at the end of the fiscal year. Mare). 31, 1955. amounted to 317.- 333.720.64. - FORECAST

it had been hoped to restrict the cost of services to that sum. and all departments were earnestly urged at the beginning of the fis- r-' year. as well as Isubsequently. to make every possible effort to come within the appropriations made by the Legislature. As time progressed, however. it became ever more obvious that the im- pact of ever increasing material costs and increasing demands would make it impossible to do so.

These conditions. together with our greatly accelerated highway program last summer. affected our budget appifbpriations to the extent of an additional sum of S1.- t45,5l0., bringing the total forecast expenditures. for the present cur- rent year. to 312,547,501. (rather

than 3ll.l02.08l). TABLE 1 Expenditures - ordinary and

capital for the fiscal year ending 31st March, 1956 with three months forecast in brackets:

Debt Charges 315513.396. (SL301.-

292.) Health and Welfare 2.001.814. (2,- 137.389.) Education 1.349.072. (l.332.303.) Attorney-General 218.640. (218,-

058). Legislation 92.600. (109.7911) Agriculture 325.845. (465.48l.) industry and Natural Resources

250.240. (17l.736.) Highways, Bridges. Ferries, etc. l.273.r?0. (1.53-L075.)

Refunds of evenue 325,500.

(360,200) Grants and Assistance to Muni-

cipalities and lncorporateed Vil-

lages 129,498. (130,227). insurance Premiums 30.000 (30.-

)

insurance Reserve Fund 20.000. (20.000.)

General Government 393.010. 006.004.)

Total Ordinary Expenditure 37.- 72.'i.08l. 63.217364.)

Capital and other extraordinary with forecast in brackets:

Highways. Bridges and Ferries

32,330,000. i53.096.425.)

Fixed Assets 366,000. (407,500)

Loans and Advances 190.000. (295,lll5.)

Other Extraordinary Expenditu- rcs 243.000.031.017.)

Rural Electrification 250.000. (300,000)

Total Capital and Other Extra- ordinary 33,379,000. (34,330.127.)

Total ordinary and capital x- pcndlturcs 8i1.l02.08l. (3l2.547. 1)

HIGHWAYS OVER

it will be noted from the above tabulation. taken from the interim Statement of Revemiev and Expen- diture for the fiscal year ending the 31st day of March, 1956. that Highway Construction includ- ing Trans-Canada, Bridges and New Machinery required an addi- tional appropriation of 3766.425. Also. the cost of maintenance of bridges. roads, pavement and snow removal a further allotment oi 3250.000. All of which will be fully explained by the Minister of Highways in his review of the 1955 activities of his department.

TRANSFER

in the analysis of the expendit- ures made by the Departments of Agriculture. industry and Natural resources, you will find the former department with an increase of 8130636.. while the latter shows a decrease of 373.504. The reason be- ing mainly due to a change in the administration of certain services In July of 1955. The iten1s-Forest- ry. Farm improvement Services, llunbury Nursery. and industrial Development for which appropriat- ions were r.. , d by and , i to the Department of industry and Natural Resources at the last ses- nion of the Legislature. were later transferred to the Department of Agriculture.

REVENUE 1955-56

RECORD

it may be refreshing for me to find myself in the position of hav- inif. in this the first term in which i have been in charge of the Pro- vincial Treasury. a revenue on or- dinary account which exceeds, with the exception of last year. by ovsr 5100.000. any income received by the Province in the years that have lane. but let me pause to say that the revenue I forecast for the pres- eni year barely suffices to cover the minimum demand upon the Provincial purse. the elasticity of which is dependent not only on the willingness, but on the ability of ilthe” taxpayers to fill it and expand

Your attention is also drawn to

rviace under the 1047 an

From the above we deduct the anticipated revenue for the some period 39,742,590. giving 320,630,722. Deduct from the above sub-total the amount provided tirernent 8530.500. And we have left a forecast net debt as of March 31. 1956 of 320.- 08. M. ' Or an increase in liabilities for

be

501., of which sum 3199.098. re- presents the net amount of loans and advances made during the year. Although these loans tem- porarily increase the debt for the year. nevertheless they are recov- erable at a later date.

DEBENTURE ISSUE

During the month .of February the Province called for tenders for the purchase of 31,700,000. lo-year 3 3-4 per cent debentures. Out of eight tenders received a syndicate headed by Nesbitt, Thomson and Company, Limited of Montreal. submitted the highest bid of 99.18, at a cost to the Province of 3.85 percent.

The high rating which this Pro- vince enjoys in the financial mark- et is evidenced by the fact that Just before that time the Province of Ontario Hydro-Electric issued de- bentures at a cost. of 3.97 percent for a 10-year 3 3-4 percent coupon, and 4.07 percent for a 4 percent Bond maturing in 20 years.

FEDERAL-PROVINCIAL

Mr. Speaker, honourable mem- bers are fully aware of the fact that the present tax rental agree- ments between the Government of Canada and the Governments of

for Debt Re- '

the present fiscal year of 32.274; -. .,

Pictured above are the Montague Primrose Sisters who were runner- up to the Abbie Sisters for the P.

Runner-up

E. T. Girls hockey title. Front row (l-r): Eileen Cantelo, Anna Prosper, Olga I-iennlgar.

For

P.E.i.' Title

Anna Power, Frances Murphy.

Edna Ann Nicholson.

At

Third row (1-r): Elaine Poole. Second row ii-r): Kay MacLean, Maxine Lanigan. Marcia MacDon- Judy Cudmore. Pauline Murphy, aid, Catherine Watson. Gwen Mc-

Carron. Guardian Photo.

the ten provinces expire on March 31. 1957.

The purpose of these Agree- ments was to establish a more eq- uitable system of taxation through- out Canada by reducing duplica- tion of direct taxation and of machinery for the collection of same. They were also designed to give a greater measure of stabil- ity to the revenues of the Prov. inces in order to enable them more adequately to carry out their re- sponsibilities, and to enable Can- ada. with the co-operation of pro- vincial governments, to carry out fiscal and other national policies intended to maintain high levels of employment and production. The Agreements were to make it fin- ancially possible. for all provinces to perform their constitutional fun- ciions themselves. and to provide, a reasonable Canadian level of pro- vincial services, without an abnor- mal hurden of taxation.

The provinces were asked to sus- pend the levylng. and collection of income taxes, corporation income taxes. corporation taxes and suc- cession duties. In return the Gov- ernment of Canada agreed to make certain payments to an agreeing province in the form of a fixed guaranteed minimum for each pro- vlnce. geared to Gross National Product. The payments being gov- erned by a formula, which takes into account gross national product and population in the immediately preceding year. -

Under the 1952 proposals the Pro- vince of Prince Edward island was guaranteed a minimum of 32.977.- 015.

GNP HIGH IN 1955

"Both-gross national product and population reached new highs in 1955, with the result that it is es- timated that the Province should receive 34.131.178.48 plus statutory subsidies of 3656.93l.fi8, for a ill-and total of 34.788.110.36 in the fiscal

year 1956-57. Last October a full-scale Fed- eral-Provincial Conference was

held in Ottawa wher the Prem- iers of the ten Canadian provinces and the Prime Minister of Canada discussed and examined 'inancial and other problems of common concern.

Mr. Speaker, 1 had the privilege of attending that conference as one of Prince Edward Island's dele- gates and I wish to say to the honourable members of this As- sembly that I was deeply impres- sed with the presentations made by the various Premiers. Regard- less of the present disappointing terms offered to this Province by the Federal Government no re- flection can be attributed to the effort made by our Premier do so ably p. t d the needs and deserving rights of our Province.

NEW BASIS

The new proposals give no great- er recognition to the fiscal needs of the provinces than does the present tax rental agreements. They differ from the tax rental Jreements only in that it sub- stitutes the per capita yield in the tigp highest provinces from three fields of taxation for the gross nat- ional product; and they provide for an equalization payment to each province which falls below the av- erage. whether or not that pro- vince chooses to vacate the three tax fields.

The only compensate a province for lack of tax potential in only three fields of taxation and leaves this province with a per capita rate from local sources of taxat- ion for below the national average.

In 1946 we accepted the tsx-rent- al agreement offer. not because it represented some recognition of fiscal need but with a hope that during the lifetime of that agree- ment s more satisfactory formula woultlbadevlsed.inll62theFed- arsl Government proposed a new guaranteed minimum payment has- od on the one allotted to a pro-

1

SEE THE new 1956 wallpaper patterns now in stock at Hilcliey and Vanlderstine. Montague.

ATTENTION Rebekahs s n d Ocldfellows, Montague. Concert practice on Thursday at 9 o'clock. Pull attendance requested.

IN HOSPITAL - Mr. Peter Mc- Carron. Montague. is a patient in the Charlottetown Hospital follow- ing a heart seizure while on route to Summerside with the Kings County Juvenile hockey team Mon- day afternoon. Mr. Mccarron was seized with the attack near Hunter River. and was rushed back to Charlottetown as quickly as pos- sible. Report last evening said he was resting as well as could be ex- pected

with an increase proportionate to change in provincial population and per capita gross national product between 1942 and 1948.

No recognition of a province's fiscal need problem or its tax-rais- ing ability was taken into consid- eration in the re-allocation or dis- tribution of the tax moneys. but the same old factors were again used in the formula-the gross nat- ional product of Canada and the population of the province. One of the principal functions of the tax rental agreement was that they were to case the finances of the provincial governments possessin the lowest fiscal capacity. ..

NOT FAIR t

We contend that the old idea of grants based on population. as far as this province is concerned, is not a fair basis on which to ap- portion to the provinces' moneys necess .y to assist them to dis- charge their constitutional res- ponsib"' ll. . and to meet the fast increasing cost burden of capital development.

Because of its low taxable cap- acity to meet the demand for in- creased governmental services without imposing an intolerable burden upon the few surviving in- dustries and the abnormal popula- tion problem of the province. some special adjustment or formula must be made with respect to the Prov-

Eastern Guardian

Mr. Ken Aisenault of " er- side returned on Saturday from a five-weeks holiday in Florida. S

GIRLS HOCKEY GAME - The Georgetown girls and the Montague High School girls tied at 1-1 in the scholastic series played at Monta- gue last night. Scoring for Monta- gue was Ewen Mccarron, and for Georgetown E. Davis.

REPRESENT .MONTAGUE The Montague Curling Club will be represented today at the official opening of the Alberton artificial ice rink. Re resenting the Monta- gue Club wll be L.H. Poole, H.L. MacGregor. Doug MacLaren. Jam- es E. Cudmore.

ince of Prince Edward Island. ' The incident of the Canadian tar- iff upon the economit. life of this Province has contributed mater- ially to its low taxable capacity through the drain upon its annual income and the burden imposed on its export industries. The fin- ancial problems of the Govern- ment. both now and in the future. can only be met satisfactorily by a substantial increase by the Fed- eral Government in its annual pay- ment by way of special consider- ation to us in order to meet the Province's fiscal need problem.

We are not satisfied with the icrms offered and are. therefore, pressing for substantial adjust- ments. We sincerely hope that a solution satisfactory to all weill be found and that it will assure to this Province the ability to devel- op its resources and furnish the way and means to provide gener- ously for the current capital needs of the future.

Mr. MacDonald reviewed both the national economy and that of the Island in the course of his bud- get speech, noting the difficulties our farmers face in the way of prices and tariffs, transportation difficulties and costs. He warned that our relatively fixed provincial income cannot keep pace with the growth in service costs. He also re- viewed at some length the situat- ion in agriculture. fisheries, tour- ist industry, highways. public work

and motor vehicle branch.

ml vw ii iii hit 1--rim

("vi it illn-I iii lltti lit-In-.; (iwll out

for lilx

Ion-'

SHE KNEW WHM HE MS

i& Hun-REX-KHMI-WKIDWII

and she was afraid!

EXTRA!

TODAY and CAPITOL '

"SAUTER FINIGAN ORCHESTRA"

THURSDAY

LON DON

PLAN COURTESY CALLS

Malenkov. former minister, will pay courtesy calls rives here from Russia Thursday on Prime Minister Eden and For- to tour British electrical lnstalla- He prayed the way to him be shown eign Secretary Selwyn Lloyd dur- tions.

lug his three-week tour of Britain, it was learned Tuesday. Malenkov. T G90”? now minister for power stations, Soviet prime is leading a delegation which ar-

(Reuters)

A Farmer Takes A Wife

PART FIVE The.farmer consoled him by say-

ing

Tho it's not for me to decide. I see' no need for longer delaying. But. find for yourself a wee bride.

Our neighbors are having a party- Many young folks will be there, Your welcome 1 know will be

hearty. And plenty good food is the fare.

so off to the party they hurried- The farmer was happy and gay. But Laddie seemed a bit worried Having very few words to say.

When the guests all gathered about They seemed so friendly and gay

secretary-treasurer. Dick MacLean The following were appointed com- mittee chairmen: road side tables; John Shaw. Mem-

The Guardian. Page 5

y Wed., March 14, 1956

Mr. Arnold Wigbtman was elect ed president of the Montague Jun- ior Board of Trade at the annual meeting held at the Town 1-lall last eve . Others officers are: first vice ident, Allan Nelson; second ice-president. John Tredenlck;

Ralph Beck.

Montague Junior Board Of Trade Holds Annual Meeting

bership; Lloyd Marshall, ways and means: Allan Nelson. junior Rodeo membe of executive, Ken Clem- ents.

A brief business meeting follow- ed under the chairmanship of the new president, following relim. quishing of the chair by the past president. Gilbert Clements. Brio! reports were heard from several 00171111111995. after which the meet- ing adjourned.

Of their sincerity he had no doubt- And was glad he decided to stay.

The DENY motive was a spinning bee-

All neighbor women taking part,

Their time and food were given free

To contest in the spinning art.

Laddie delighted the young folks

While seated around the meal table-

He amused them with stories and jokes.

Dabbling in truth and in fable.

His smile delighted a maiden

Who seemed so happy and free-

Whilst he with home duties laden.

Thintking. by rights, there he should e.

Theyguests all joined in the danc- in

That would lead him to the right.

8 And singing folk songs of the day Till the wee small hours were

Bank. and Carleton Hume. M. A. MacNeill. Edwin MacKenzie and Charles Stewart, Little Sands. at- tended the Jubilee L. 0. L. in Iris on Sat. night

Sands. who is spending some time with his son Mac in Cornwall is local Women's institute sold lunch- improving in health. es and fudge. and a good sum was

realized. was glad to receive word from her sister, Mrs. Rowan 0ak.Valiey, that she is recover- ing aftcr her fall. Best wishes to out to Mrs. Sencabaugh from her many friends and relatives for a complete recovery,

business visitor to Little Sands onl Wednesday.

Lrrrie SANDS

Messrs. Norman Stewart, High

Mr. John Dan MacLean. Kittie

Mrs. Alex Blue. Little Sands, Sent-abatiixii,

Mr. Willie Ross of iris war-. a,

lflrown-urn as snail as child so are cranky, irritable. an appetite or colizy pains.

Parkdale. was at her home in Little Sands over the weekend,

The Farm Forum. met at the home of Mr. Charlie Stewart on Monday.

A very fine concert from Murray Harbor North was held in the Little Sands hall and was greatly enjoy: ed by a large crowd that gathered from surrounding districts, Th.

ANYONE CAN SUFFER FROM WORMS

an molar .2...” f:.':”3 Dr. MeKass&'I

... worms. if you. or any of

advancing- The High Bank and Little Sands Dendahot Wonn Cn-dv- warm In;-I,-I Then all to their homes scurried Women's Instituc which was to be ”":,:,'m':”' n'f"l;"'” D: ”K”':u:a' away. held on March 6 at the home oflmiiar. Try it today and Irhn

Laddie went to the farmers home To await the dawning light-

Mrs. Alex Blue. Little Sands was postponed until the following even- ing.

Miss Ellen Munn. teacher at

hnokietrmwornl. 'lIssW.ll.cesnshoItOo.L4l-o

Is0&VH. Olilrh C-I-I

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