g year and coll

-....._.. w... uIb~-~ i

. plants

‘their interest toArea. Iiltlni.

Sneaker dstehuttheydonoteolleetlatarthofiouselstullyollllllsarltotthe

Linens.

locations mm Page 1)

U9!!! the produce of his farm and every other source.

two columns. subtracts one from

' fieother, and flllds that his expen-

dltnrespxoeed his receipts by $200.

conclusion that this farmer has

' lone behind to the tune of $200 dur- -Ii‘ the year. lBut that may or moi

not ha the ‘case. and whether or no: vl-hicll I have refer?“ 1° "e Plrlfaild will come in later. These debts tlflliilldleelltlfely oil of the revenues of the provlncenndere also eahmhted by the Enefi those moneys. instead oi lit-lug expended they are m] Audlwr; eh the‘ he makes a

it is the’

how he h expenllfitf

- another way.

up to the 31st of December. 1925.

Then we have the accrued inter- eat on debentures. Of course. the coupons are ‘clipped off. hut there

eat to ths end of the caleadaryear. facts. A yearlao a reeolutionwas . Ind that Item for interes on loans rum! In this Helm unanimously is the amount, that would he psy- In favor of . questing the Federal ille if all thrlnterest were glen-y] Government to establish this die-

lease free cattle area in thisipro- lvviuoe. I do not think that tolay theie is ally debate, auyydivislonof opinion. as to the value of the natal».

In. connection with is a difference between the end of 118111118!!! 0f U118 area. Irrespective

Olll’ CHIN!" I999“!!! ""11 EXWMH‘ the debenture year and the end of 0|’ DI"! Politics. I think this was

7tures we have a hank account.

province. and from that account is checked out all the expenditures we make. Those expenditures are

‘so to speak; they are made for dif- ferent services-

!" th At the-that banll account are deposited all euee |h and of the year he totals up thlwthu receipts. all the revenues of thtqhere’ 9g H3561

I l

Than you will at once come to lhmmnde in v rious parts of the pro-Why everylhlhg o“ n we end Ivlnce; the Government loses them.‘

But these moneys l

e calendar year. aiid that differ-I PeDPUwI-ed by this sumlmoney e\'er made In the interests lot the province. At the time this

possibly the ivlsest expenditure oi

There are other liabilities, asiHI-‘illae met last year. when the esti-

we can very well UIICIENUlH-lnbe- mates were being voted upouhno-

cause while an attempt is made lnVbody In the provinc oeltherjny-

ty-the year there are bills that do not actually come in that belong to 1925. but are not ascertained 'then.,

0n what ae he has made oi them. simply taken out ot that bank ac-Q He,“ sweep m. the “ehhmee o, the

If. for _ n on his farm and one of the items

o1 expenditure that he has marked lug interest and they are there io-feuhumh av. How the» wt "my 10"“ Pi" lltosc liabilities to the 31st of De-lllloll or

down is I. payment of $500 on his mortgage, It cannot be said that be has gone hack $300. on thc mu.

count . . . .\ savings accouiiLbear-l

oi the deficit, ii the money: arci still there to the credit oi the pro-j

the year is gathered up and ell-z

ffilllllill‘. 192a. was $104,541. '

Bill there are certain assets that;

trnry. he is $300 ahead of the galueqwince, changed simply to anotherlere he, deducted h, ‘he proflheh“,

lie has paid out of his current ex-

penditure a larger sum on his t-ap- ‘

ital debt llllln the difference tween his revenue and expenditure It the and 0f the year. Now that very same course o‘ reasoning ap-

Province.

bank account? * Deductlng the Iullll of all those

as already fiEclainil-ll-ib have a balance oi $14.3 that la the deficit this year.

and will

lAudIlor. For instance. there is the _ the gmkmpwas a stipulation which this Gov- =- _ ~ <1 1 l W‘ "WWW "U!!! ‘he “PM”!!! Mm“ fund. The balance of that was not ernment did not dare to turn down. 2:3,!- very long 85o “as ep or “g '

accrued interest on

the 31st of December.

self nor any member of the. Gov- ernment—was aware that the estab- lishment oi this disease tree area would entail any cost upon the Pro-

call upon the revenue of the pro- vince in any tray. However, midsummer. when the activities

lviuclal Government or make, any

. he has a mortgage count and pill in another hank ac- hmvlhhe; eyeryuflhg m [he end dqjummenced 1h commune“ ‘qth ‘hle. ‘matter. this Government was re-ihglg a, much .5 in 1921. Amt the local amgunl ohquested to undertake the transpor-

the veterinary surgeons who were performing the work; null there were a great many of them.

It was necessary lo perform this work within a given time, not; it

sibllity of losing this great boon to

I‘. {Wb- .

ill-small Item. but indicating the econ-

r H c - ~ It leaves themxnesditures of as 310.000 less than their expel-l liters: in 1911. * That is to say, taking away than‘ tvva extraordinary Items oi Increase. for education and the establish-f meat elf the dlasass free area. l" ran the attain oi the province Iaat year for $20.1!» less than they ran them In 192i. (Applause)

To follow the comparison a little; further 1 will take another. class of . items, showing comparative expen-' ditnre over the two oorrespondlns years. l will state at the outset. that on every Item of expenditure where economy could he practised. the expenditure waalovrer in I925 than it was In 1921.

Take the administration of .lus-, tics. In 1921 the expenditure was, 827.569. ln 19:5 It was t25.t2tl-—‘ over 02.000 lees.

."1‘ake the "Board of Health.

{only that ‘has been practised. In 1925 the expenditure was just about ,

Other Comparisons ‘

Here is an Interesting Item; De- partment of Agriculture. My hon. friend the Leader 0f the Opposition,

extravagance In connection.

7"_ “w” calculated but has accrued up to “'9 OBI-lid I101 lllldérlliké the fe-‘POII-lwlth this Department. In 1921 the:

‘ordinary expenditure was 532.083.;

_ _ , _ _ , Then there is a credit ou hlghcthe Province on account of the ex-l 1 l; 33,'-'6_ 3 lmlgi P"?! 10 "'9 PIINIC Aliwums 0' ""5 F819!‘ l0 ""5 la!" ""~ "l" m? m‘ ways improvement account. Ill tile: 1191156 ellifllled ill lflllfilmflatiolnlwdltggg tlliifirfliwgaislofe; “gut in I921 I

ii it can be shown that present lei me say that ihe tloverii- previous yeah i“ [his very And“ {he mane, was agreed upon

and

amount‘; have been paid out oi cur- menl takes filll FP$DOII$llJIlll_\' for the balance was the (“her we“ we, [he work eel-fled Duh w"h__l mlgm

rent revenue to reduce the capital debt oi the provincmthen such pay-

Tllilf is the actual aiuoirui. I ‘trust. .\Ir. Speaker. that

that. and

had over-expended on highways and

say-commendable despatch. The

l that amount was charged up and Federal officials were greatly pleas~

merits are not expenditures which have iiiade- the explanation clear included in ‘he hank afl-ohhh Th1; ed with the services performed for

crate a deficit, in t e true and proper sense oi the um. The Debenture Debt

I will examine those columns u.’ figures for a IIIOIIIrIII and see how they may be analyze-d u .111‘ principle and with that in new Wevhave ulna! uzichi bt- .sll.—d mortgage on this prllvi‘ . I a" our debenture .l9l\I—II1lllt'_\ 10.. w- ed upon the credit and aim o! 1M province over a fern: years Those loans have been made LII d terent nines and Dow over a million and a hal’ Iars; Borrowings of lba: k I stated before in this Ht- only be made. by virtue anti the allfbflt.) m‘ a: Act n‘ 1h islature. Various slaieme

.1

.11

llJl- . a; t.ill under

liar»-

~ perforating m?" “H933” 1 3m glad m ‘all “Y “Y” 3M9 l" we know just exactly what those

and satisfactory.

l have mentions-ll allfiillf-r re- port. ihal of the hZxii-rilul xutliloi". This audiior is ensalzl-tl for lhai time lit-iii!

u.» ernnieni. for ibe

year we have a credit amount

which we carry over, and which

will be available (or next year. There was also a balance on

er. All the gasoline tax which was

them. and these services were per- Tormed at very reasonable rates. The transportation was made by curs; and I might say that we ob-

I particular piece 0: work b)’ tht- Gasoline Tax which we carried or. talned these services for vgyymheh

less money than we -anlicipated

Tm“ -" '~‘“’7l\ o‘ exlem“) ammim‘ collected was not expended there when We first undertook the mat-

lia- been the system In this 1W"- alluilally one or livo of our bank managers in the province

been selelieti for (lli? purpose that uildii. Tuis year.

ubiain the services 0i .\Ir. .\. \\'.‘ ‘Ill-tidmari, the manazer o: the lllyval Bank of Canada lit-re in Cllzirlolie- town. a native of this t'il_\'. and .1- a

7118111101; as slifiicieili guarantee

is a credit to be curried over iilin

.- vince for a great iliany years. trill ‘me year

Theo there are the assets of the

can be converted into nioiiev. and

E1>S8IS are worth. When those items are totalled up

,it leaves the net liabilities o’ the

ter. However, that Is an additional expenditure which could not be es. "mRlBd. Wb h nobody could fore-

haw, Prohibition Qoinnlissinn. Those art- 599. ‘hilt which In the end was in- “ l-l-lllrulflled 1mm year to your; [hey evltable and could not be refused

or turned down in any way.

increased Cost o.‘ Education.

There was another Item. and l.

my hon. friends had just as much .i more money from the Federal Gov- erilment by way oi agricultural, grant. which has since been with- drawn. ln ofier words, they hadi a total expenditure in that departq merit cl over $50,000. where lath year we trad $334300. < Take the Department of Public Works. about which we have beard loo much I11 regard to the ecoiiouiy, of the Bell Government and the ex-L travagallce ol the present adminis". tration, In I921 the ordinary ex- penditure ior public works was $122,903. Lat year it was 8121.337.‘ Department of the Provincial Sec- retary (where silvings could be,’ niadeJ lli I921 the expenditure W118. $15,517. l-u 1925 it was 812.701. FaIcoilvvootL-ouc of the great. spending departments. and s plncc|

prflvitvcc. including the expenditure "WY deal Wllh this NOTE‘ "l"? l1 where there is some opportunity oil

every kind. up to the end of the

been 035594 i“ dlflfrm" “m” Kim“ that the illlllll “'11s properly. eifici- yea,._$2_e51_539_4o_

orizing loans of that kind to nt- made. and in fiery use ill» slilillir authorizing the loans prm-itlt-tl i ' for what we call a filIllilllL, ::l.i.|; other words. providing that om the current revenues oi‘ Ille pro wince a certain proportion <liall l». set aside 919:)" year and fiimletl iii securities to await llir- liuit- u-ht-n the principle ol that 19m: or lli-heir lure bt-comt- due. <0 ihal ivlicii lili- time conic-s for pnyniirlii. ii lll.'.’l will be available io moi-i illc loan to make puynlciil. calling altogether at least upon 1hr» current revenues for lliut your or making a new luau to pay orr lht old one. Il i. . . 1y a IPIII m‘ domestic providence. n! t-altfulziiid proper financing.

“'9 have had that e)'>'l"lll and we have been setting aside by \‘2ll'l~ ous statutes from year to year sillll- lug funds It) int-cl our dciienlilrt Dilrizig the past _vciil' there was set aside for that purpose. out of the revenues. the silln of 515.110. That money was not expended in the true sense of the word; it was simply transferred to what we might call a trust account ior the purpose oi taking care oi the loans. It was eillit-r placed lPlIllHlTilTlly iii llli‘ Savinzv Arr/tum or lll\'t'~li'il in inlvri-si ht-ariilg 41011115.

A5 I said, that 1's nut all r-xpciitli- lure which creates a deficit. lt is

<.i 2n .iI'

simply a iransiereilce of uluney 195$ than [hfl-ip y(~ars—thflt balance m the us, De . from one account to another to thc w“ more the" dgublg the present ed m ‘S1931

credil of the province. and inve. ed. from time to time. in interest- bearing bonds. Unfortunately il might say ill passing: we had a time when that was not adhered to. when the money which should hilvv been and which we all llIUILlllI was invested I11 securities was not >71 Iiivtslt-tl but was plat-rd to (Tilrrtilil Account In lht- llailk. Ztllil ilil- only

smurf!) n'ol1.'ilI\\i-r<- ii~<-ll-s-..l-i';l|i' ,.,| |||i., ,’|(‘4'Ill||ll Iln .'i sit-king filml e49“

of paper. At lhl- pru-st-iil time. how» cvt-rl those sinking funds art- r jirrsciilcd b_\ liilercst lluiirinl: sv- (tllflllitti. These bonds in which the sinking fund has been invested are bearing interest and that Interest is as much a part oi the revenue oi the province as any other item; just as much a part oi our revenue as the subsidies which we receive

- from Ottawa. or the income or per-

gonal property tax which we collect from the people. And that interest lust year amounted to $17,346.86.

In addition to that wt» had a sur- pllis of the (lastlline 'I‘iix. on llillltl. amounting l0 SZl.9tl‘2..'i5. 'I‘Iici'c is also a credit balance of the llilzli- ways money 0n hand of 31.350112. The sinking lwud appropriation ltl which I have already referred was l0 meet the ordinary debentures as distinguished from the highways: and In addition there was a sinking fund set aside to meet the high-I ways expenditure. of $0..’ _ .0. Those Items, in all, amount to $51,- 488.34.

The Bank Account.

Let mt- illustrate the matter lli

eiiily aim t-urefillly" perforiuctl. . The External Audit

The l‘t~|i()l‘i of the Exit-mall Antill- n1‘ is made illl a somewhat 1liife.e‘li basis from that ol the Pmviul-ial Ailtliitir. Ills dill .-

Willi ilit- llillllllllr$ of tho prov‘ w‘ in a larci-l- ivuy. Perhaps I llllL. .1 illllslrftlp my piliill .l1_\' (‘XIOIHIIIIL llll" illustration zilrcad)‘ KIVUII. Wr- will say lllill a fzirillt-r ill llll‘ t-lid

lrithulll uf Illa yt-HI‘ lizi- all ilppzirt-lll '|0|I'.'Il know “v

in‘ $3011. bill has 1l(‘(|llll'[’Il zisscisby" illwri- (-1- l'.\l"lll lllibil the aplmrluli tlciicii: tiit-ri-inijr- his inial liabilities will 1i.- allogelht-i- different. no liabilities. His zissv-ts. taking iilill t-Iliisivli-ralinii all lii< property. Illilv cxccctl his liabilities ivllill: Iii Purim-ill cxlieillliliirt-u and rt-vt-iilii for the yrul- may show a dl-iii-ii I; is upon this lulu-r basis lllal External Auditor lines llir-i work. II you will permit lne I will refer to the audit itsi-lf. Ill (“rilflllilllllll

thl- liabilities o1 Ihc province w- fiiid llll'.\'l' I liililit-s in several dif- fcri-iil plum Fire-I. as I szlizl hr- forc, ivt» llii\'l' lht- l-ilrrcnl at-rrviliit

in llil- Ilailk. \\':- 0W0 the Bank |lII_ l'lll‘f'i>"‘.ll ilvvilllill. til llli‘ (‘llil 0f this icar soilll- $231 I may men

3..

film, in conni-t-llml with lllls t-uiint. Illtilji fciv years 8K0’ "<11

amount, ind upon that balance we were paying 55/2 per cent, and

was not earning anything for us. srlmu.» of that Bank overdraft- was paid by Issuing debenture-x We were able to borrow the money at 4|, per cent., thus saving 1 per cent interest-Mic lllfiflrfillfl‘. W0 “were paying on dcbl-illurcu and nil mlr blink ltltiil. \\'t~ also Iltivl- plat--

Ilsisis; Iliad is in Silyfl. lion! as that Iarlw lmlalire riiiis iii tllc bzilik tlicrc is un provision for it llein: lliilil off. but ivllon it is Invested Iii debentures there is a slnkilig fund provided which is gradllzilly act-li- miilatetl in order to pay off the debt when lhc debentures become due.

Crone Entry

There is illso a ct-rtain zliilmliit tiiic 011 slim-i Imlils. The (loveriv. niciit is authorized by Stntull- to, ‘Ilnrrniv from pTlVIIII.‘ persons. and‘ upon llllH accnuill there is iliit- by the Government Silltitlilo. Tilt-ii thl-rc is diic (liialillllt Tax ilvrtlllllll that money ls there Iii tlit- flank. ‘hilt further down we Ilave n cross

‘entry. because the llloney is nu Ihand; that is, it is i1 crctlit. su- that we have a cross entry. I'poil'

‘debentures loans there is II debit of $1,441,317. Then there is ac- crued Interest ou short loans. Th:- ailditofs account simply shows tilt.- Jnterest actually paid on those ‘loans. A certain number of our people have money there; they come in at various times dilriilg the

Your el Mere

The name "Steele,

clovers, grains or Steele. or c Alws You cannot buy ette

T1170 - NAIILTON

nized throughout Canada as standing for all that is best in Seeds. It is your pro- tection against disa pointrnent. Whether you grow vegetah es, flowers, grasses,

Briggs‘ Seeds and excrcisi ary care, you will cnfoy rucceutu

ya Ill for bIfIIi-I. IIIIOI‘ Illfilw- r.

laid Everywhere in Cong] land In "lusts-sill 192C Cue

STEELEBRIGGS SEED 6&- ‘Usuaan-a snarrar nu four"

l

hunt Sells Them Briggs" is recog-

roota, by sowing

Urlcollected Taxes-Not an Asset.

l): gtgnllyuupn whoq- nzlmq. l ncezl only o" highway‘ and expenditure. o‘ "me later on Th,“ is m", expem In referring‘

ditnre for Education.

to that last year. In moving this‘

some resolution. I said that 1 had _been informed by the officials of: ‘the Department of Education that,

practicing economy. In 1921 the ._i_>xpeudilure was $118,859. Last year it was $103,44‘l—a difference 0-‘! ‘some $15,000.

The Interest charge in 1921 was $58,686. Last year lt was $66,441.,

Some zentlemeu in the (lpposi-ithe? beuewd- and “'9 ‘H benevedflbut the year before i192-il It W85’

no“ may ga_\'_ “Bu! you are leaving that the expenditure in educatI0n-;59,00Q_

out some HSSBISr-Illé uncollocletl

taxes." I have always taken the‘

m" m ‘I'm stand in this House that these are [he U19" 00min: Yea!‘-

not an asset which can h.» l-aIt-illtil» d fir depended upon, The as rs,

l" which I have ml-ntitiiictl aIri-hdy. if “Peale? Pmpilrilllfl "f fir!" 1""! Bolt-fin 1921 was $22.16. "Loud class teachers engaged in ourlwah reduced m 515,945

not tho

liquid. could be liquidated present time at par. aclil we’ We could clean up .il ll".\' time on those;

not s0 with the taxes lliul are list-lli"! "m Ti-‘lidlcd “S Pelik “lid i! ""5111 was $12,021.

ed as assets. When we come to

some people have left the provinccd

some are dead; we have found that "lliemm-"fl? 79" "l? W593" Fn" i-rlg.

some of the taxes have law-n paid though they were ninrltuzl ur.p fllitl are calculated as an asst _ that even from the ordinary \'.e\v-' pointtliese should never he calcul»

alerl as such. Sn far as I ill11 pe-r- W" mlflh" "Ill" "P ih°"¢$13.00(1.-'| oulllllll ma‘ “W59- srlilally concerned l would gm: m1: °"l' $2.000 more than the amouhtlsiaiiiiate the statement I made b8-

s-‘irlcr that they should wr- i-itlu-liili

‘in an audit of that kind. II is very "=35"! 0V0!‘ Our ciiimiiol-

well lo piit ihcln down :1.- uh help. mate, hill for llnllillic, iiltlrv. ‘

The total liabilities 0f illi! pm; ‘ince. lei-ls those assels. as of the lat December. 1925. amount to! $2.I)51.5f’.9.-iil. The liabilities caIcliI-i all-d iii exactly the same niaiiiler up iber. 192i. alnoiiiii-, 13. or a total i:i-‘ crease 0i‘ $99. T. That is the to- tat increase oi liabilities.

When our predecessors were in power they did not calculate it that way. They did nut admit that, amount of increase in the liabilities: because that included the highway Improvement expenditure. llllil llloy’ fllWflyii took the stand flint that W115‘ um! ii liability. Wt: take a tlifliirl-ill

i. Wr- say as in this that sinking fliiid is prnvldctl nut of all

hand the increased expenditure for Education which we had no means

had reached its peak. and thati there might be some decline during