-il1!l(lI‘5i, and even nlggardly scale,

lidrunicss what appe

FJBRUARY 11, 193s

" 0 VERJIVMENT B

Premier

“Fiscal

As Basic

Ne e d” Claim

.Over$600,000 Additional Revenue v Required To Balance Budget And Establish “Minimum Reasonable

Standard” Of

P u b 1i C Service,

Fzillcivina is the text of, tiie liiiei ll'd\\’ being presented to the Howell Commission by Premier Campbell ullil Gcleriimeiit coun- _t,,»l '1lie full 11531101114 reads: "liir- Care c1 Prince Etlwlild 1s- liiz-tl; u 51111111155101] Presented to ,, Rovzil Commiseslori on Domin- loii-Provinciril Relations by the UOVUYIHIIPIZL of Prince Edward Is- and":

Introductory

The Province of Prince Edtvard Llaiid approaches with a very shear degree of caution the prep- 1111151011 of submissions to be made lo the Royal Commission on Do- niliiioii-Provincial Relations.

On tlic one hand, tliis Province wiiiltiues _to believe that. under the existing relations between the Dominion and the Provinces, Pl'lllt‘l' Inward Island has not been and is not receiving a fair or ade- quate share of assistance from the Dilllllllll)“ Government: we also l]t'lli‘\‘(‘. that tiie so-cttlletl "Na- tional" Tariff Policy has worked to tiie great detriment and disad- vantage of Prince Edward Island and the other Maritime Provinces as compared with tiie larger cen- triil Provinces. And yet, 0n tiie other hand, by dint of the most drastic economies in provincial ad- niiiiistrtition, by doing without a great many services enjoyed by other Provinces of Canada and by maintaining other services on a

by exploiting every feasible source

of Itlllillili’ and revenue. Prince Edward l ~11 has succeeded ‘in aitalninu .. ibstantial balance be-

tween revenue and expenditure.

Our extreme caution in a - profit-hing‘, tiie problems oi t e Commission is therefore due to our feui‘ that any radical change 1n the set-up oi Dominion-Provincial Relations might upset the finely adjusted fiscal balance of this Pro- vince, unless ample precautions were assured that we should not be callied upon to give up any of our existing revenues without re- lief from an equal or renter a- uioiiiit of present expen iturrs. As l. matter of fact, we shall endea- vour to show the urgent necessity of. and the right of the Province in. substantially increased Domin- ion assistance for the provincial lervlces which Prince Edward Is- land is obliged to carry on.

But although we must approach the problem with caution, we are not unaware of the necessity for some measure of fundamental re- ldliistmeiit of the financial rela- tions and relative constitutional positions of the Dominion and the Provinces. Prince Edward Isltuid ls therefore willing to co-operatc lo the largest possible extent. in tiie work of the Commission, and lii its efforts to discover n. satia- tiietni-y method of lmiproveunentin these directions.

Proposal f0. Capitalize Subsidies

‘The subsidy problem has been a. vt-xntious one since Confederation, anti has been a ‘constant source of rai-lriitlon among the Provinces.

A plan has been adopted. which llllllvilrs to us to have considerable merit and which. ii adoptcchwould t-iitlrel abolish the resent ‘exist- inu su sltlics. As th plan is de- veloped, it may appear su erfio- illlly that it is of exce tiona ben- (‘iii to this Province. n any un- lmised examination of the subject, however. it must become apparent that such is not the case. It is title tiiatilie debt of this Prov- iiire is small in comparison with that of others. But this smailnelu must not be token to mean that our financial needs are not great. ltiiilirr it is an indication that he have lagged behind in the de- vtiopiiient oi many necessarpub- lie services. The people o this Province have a deep respect for iuuiiieiiil inttgrlty. They have de- manded of successive governments that Sliellflill" be commensurate with a sure ability to pay. During tho inst decade, however, taxes in both scope and rate have been ex- tended as far u possible. Indeed, ior a largely farming community, hi some respects they have become too high. Any extension of Dill- lie services would necessitate fur- tlicr borrowing, which in view oi our lack of natural resources would ciitiauaei" our provincial solvency. Its a result, ourpeople have been obllilctl to look on while other Provinces, more fortunately situ- ated. or perhaps with a lesser de- gree oi curefulncss. have unple- iieiiied many services equally ne- "s-fillry here, but which weielt we were unable to afford. We have seen other Provinces forge ahead oi llll in public welfare work, in health measures, in education. public servants have been lflflluateiy paid and their ublic works greatly improved. is is "ill possible in Prince Edward ls- ars to be lliiduo carelessness is exhibited to- “ll-Ids future expenditures. This {ageiliessness we have sought to

But wo do not consider that we should be penalized for our fru- gality. Nor do we believe that. "1100 our position has been exam- b°d by the other Provinces and m? the Dominion. when they thor- mlflhly understand and appreciate

e extent to which expenditures R513“ lfifiznclcurtzéied tou ‘ghoul-o

n ng ei-o wi any

"A" Berdgf ntgitscgiminstiozi. m. mposo o exam

at on! length the wukneues in-

"Hit in the present schema of

oral mistsnco to the Provin-

These weaknesses have been

v

R8.

public finance in Canada. as well

115 by other Federal systems em. nlOyirliZ plans Himlilil‘ to the one followed iii Catiechi. Na doubt (he

many faults of the subsidy system are familiar _to tlic members oi this Commission.

We mention, therefore, only two of tiie many unfortunate features WhlPll llimear to us not lo have’ received the consideration to which i091’ are entitled.

Iii the first _‘pi:tce, any examina- tion o! imst history shows only too Clearly the bickering and provin- ciul jealoiul’ winch has resulted iiom the problem. we venture to

filly that much of the unfortunate -

iiiterprovinciul mistrust totiay is the result of dissatisfaction among the Provinces over the subsidy question. It seems very desirable, therefore. to remove this source of annoyance foryall time from the field of Canadian politics. This we believe Possible‘ 1r the suggested Dian is adopted. In the second place, it will be noted that from the very first it was intended there shouldbe no increase in the amount of subsid- ies. Yet increases have been peri- odically made, though at the time of some of them. the adjectives fixed and “unalterablc" were freely applied. Various reasons for the necessity of these increases have been given. We do not be- lieve that sufficient compensating effect has "been given to tiie con- stuntdeci-easc in the purchasing power of the dollar. Apart allo- gcther from the question of new auctions and increasing responsi- bilities falling upon Provincial overnmcnts. the amounts assign- d at the time of Union would not. iow be sufficient to carry outv the urposes for which they were in- cnded. There is no reason to be- ievethat this situation will not ontlnue in tho future. Conse- quently, the most careful planfor geallotment of functions. for divi- eion of revenue. for subsidy revi- sion. which may be made at the present time, if it includes the payment of fixed amounts to Pro- vlnclal governments ior the carry- ing out of certain functions, is bound to fail. Sometime in the future the dollar will not be cap- able oi purchasing what it can to- day. As a restilt, a Provincial gov- ernment will be obliged to secure revenue from other sources tocar- ry out services which the- subsidy

'alone was expected to cover. This

will lead to financial difficulties and applications will be made for periodlt: increases in the subsidy The olcl problem will begin again.

It is proposed. therefore, to cap- italize tiie existing subsidies at three per cent and to abolish en- tirely the system of unconditional subsidies for tho future, the capi- tal amounts so arrived at to be alppllcd to the reduction of provin- cal debts.

ln the case oi’ Prince Edward Island the proposed capitalization would leld a sum exceeding our provincial debt by apple imatcly fifteen million dollars. No other Province -wnu1|l be In tho some position; our unique situation 1a due to the reasons already given. We ropose that this txcess sum be Iced to our credit at Ottawa amEthe Province be paid Interest thereon at the rate of three per cent. If in the future It should become necessary, the Provincial government should he allowed to withdraw capital amounts from this credit in preference to fur- ther Provincial borrowing.

Unconditional Subventions

As a corollary to this plan. We sllltllest tiie payment of conditional eubveiitioiis to a Province if fill‘- tlier Federal assistance should be- COIIIO IICCOSSBIY.

(In this connection the brief

uotcs a lengthy excerpt from

rofessor Adarkars “The Principles and Problems of Federal b111- once") A Suggestion Conccrnlnif Provincial Debts

Arising out of the plan to ca i- talize the subsidies and 11111111’ e capital towards the reduction of provincial debts. is the 0111186500" that the Dominion Government assume the restiltiiit: residue of the indebtedness of tiie Pfoviflw! —conditioned on the Provlmes yielding up assets and revenue to the Dominion Government com- mensurate with the new burden it would have to bear. This 1018805‘ tloii is. of course. of no immediate concern to this Provinces. It dot-s appear to us. however. that 1t is extremely desirable that all the provinces be placed once again 011 a. sound financial basis. Indirectly. the other provinces and thelDfltln; inion are deeply interested n v_ financial welfare of any 0R9 P" ince. To tiie tnXPBYlBI‘. ll- mime“ not at all whether his taxes are Dtlld to the federal or vtovlmll“ authority. If the Domlnllon ernment could assume sl 11m 1 cial indebtedness without any ll- crease in the total amount of ‘He; w be paid. such a 6011189 would result in greatly en-llllllfllllg the financial st-andinil 0! ll" m”

roviiices in the eves oi the} lallefrl;

ng public and restore the necessary confidence which ha: been lost, in certain instances

“iihwouiti anew. indeed. "l" 1° the tnivnayors of the gtmlgflflf concerned. such I- SM" d t m, ctsl responsibilities slioul . lnwk 1mg run, mean I substantia

lag. The Dominion Government can float long term loans at re e

diluent. students of

greatly below those and "1 "l"? provincial b0046-

Urges’

ll

In the event of any such step helm: taken. we wish to assert our- selves as favouring the establish- lllllfillt of some type of Loan Coun- c .

Two outstanding suggestions have been made as to the form such u Council might take. The first proposes a scheme under ivhich a province or provinces would be- come voluntarily associated iv . the Dominion in setting up .- Council to advise in respect to provincial borrowings.

The other plan calls for the setting up of a Federal Loan Council patterned on the Austra- lian model. with necessarychanges to mtet the Canadian situation. ~

The utlvnnttiaes of this type oi Council have been admirably sum- marized by Mr. Exley in his Note on the Australian Council:

"1. Enhancing of Australian credit at home and abroad,

2. A management of loans with as little disturbance as possible to the money, tvork, etc.

3. Advantage that can be taken of stieeiztlly favourable conditions.

4. Lower interest rates due to abut-nee oi’ competition.

5. Limitation o1‘ loan programs.

6. Provisions ior sinking funds in respect of all new debts created by the Loan Cotincil.”

tNotc on Aust. 1.01m Council. in the Economic Record, May 1926, pp. 84-871.

'l"iiis Province favours any such plan which will tend to promote. the iiniiontil well-being. and which will not interfere unduly with provincial autonomy.

Whether or nut the foregoing proposals, namely, (In itullzation oi‘ Subsidies and Domino-ii assump- tion of provincial debts, or either of them. are adopted, this Prov- ince urges tiie establishment of some form of federal (founcil which in future would control or advise upon ull important ques- tions of Dominion subsidies, loans and other subvcutions to the pro- vinces. Such a Council should comprise representatives nf each of the provinces as well as 01' the Dominion.

The Eliot-ts u! the National Pulley

Prince Edward Island entered Confederation on July 1sl., 1873. Prior to that time there had been- a. steadfast refusal to have any-

thing to do with Union on the terms suggested. In 1800 tiie Ilotlse oi Assembly declared that

"any federal union of the North American Colonies that would eni- brace this Island would be as hos- tllo to its feelings and wishes as it would be opposed to the best and most vital interests of its people." (Prince Edward Island House oi

Assembly ..louriial. 1800. p. 05). There is litilo reustin to believe that this feeling and belief had bcri- altered among the DQ011165 ivl \ the Island entered Confeder- atiuut. But events conspired to force the Islautl to join. 'I‘liat

these events were not 0f the Is- land's own making. but were bi-ouaht about by the Ctinatllan and Imperial Govcrntrients. can be clearly seen on an examination of contciiiporaiy documents.

The people of Prince Edward Island seem to have had an ni- iriost. prophetic view of what tlio result of union would be. Yct once committed to the union, there never was‘. nor is there now. any quirstlon of withdrawal. The citi- zens ot‘ this Province have borne with patience a national policy which has been distinctly not beneficial: they see the citizens of other proiriiitzcs grow rlcli at their expense; they see the best of their youth attracted t0 other provin- ces, just as they are entering the period iviicn they might become an asset. to the conimtiiiity. The only protest has been an occasion- al request tor "better terms."

In fairness to ourselves, and that our position in relation to the Dominion and other provinces may be clearly tinderstood, it. seems advisable to emphasize the fact that Prince Edward Island was partly eajoled and partly forced into the tiiiion.

Al; the Conference in Quebec the representatives from tiie Can- adps were accustomed to voice in glowing terms the arlvantamxs which would accrue to the Marl- times from a federation. One of their reasons. however, was given by the Honourable G. E. Cartier: "....it is evident that no nation can attain great power without the maritime element. We must have commercial intercourse with Europe during more than six months oi the _ve'ar. You. who live down by the st-ii have sea ports open all the yenr round and it is better that you should have the benefit of our trade than that a foreign power sllllliitllllflVt‘. it..We thought that a was the best ..

The real reason iii tiie llonour- able Mr. Carilci-‘s iiiliid was, no doubt. that in ilie event oi war with tiie United States. Upper and lower Canada would have access to the sca through friendly ports. Possibly lie did not for-sec the other result which has come about—-tliat the l\'1l\l'll1l11C Provin- ces have been forced to bccoiiic purchasers from tiie Ilppei" Prov- inces. but have been unable to 591i their products to any extent to these same provinces, while itislng a, great part of their natural inur- kct to the south. The "benefits" of tiie trade have been very oile- sided indeed.

Afici- i807 tiie pressure was ap- plied to an even greater extent. The Imperial Government was very desirous that Prince Edward Island become a purl of the Dom- inioii. No efforts were spared to bring the; about. 'I‘lie Island Gov- ern-nieiit was discouraged at every turn in its efforts to float a loan. The ever vexntious problem cf absentee landlords vras refused dis- cussion until the Island should entur Confederation.

In 1707 the Island, then a part of Nova Scotia, was divided lntO 67 townships or 10w, 0f 11.001119 twenty thousand scrss each. With the exception of some small reser- vations for three County Towns, and certain fishing rights. these lots or townships were granted t0 certain persons, having real or im- aginary claims on the Crown. in a single day by lotter in London before tiie Board o Trade and Plantations. Certain terms and conditions as to settlement. ewe were imposed on tiie grantees. but never curried out (even in part.) in ninety per cent of tho cases.

Quit rents were reserved to the Crown but tlic proprietors never paid one fsrthing oi the quit rents. and the Imperial Govern- ment. let them oil on condition that they would pay u lower rate. Even this was never paid. Mean- while tlic tenants were obliged to take tho lands at whatever rent

ted cration scheme t

rue cnARwTri-iggivviu _ opgiapian

EF PRESENTED YES TERDA Y

the proprietors chose to demand from them. In not a few cases they let the lands to the tenants 8f forty times their yearly value.

The following year Prince Ed- ward Island became a separate colony. and its history from then until Confederation is practically a history oi’ the Land Question. The Colt-my was struggling under aunl- versal leasehold system, and the absentee landlords or proprietors refused in most cases to sell the freehold to the tenants. ‘The lat- ter. eager to buy and own the 10nd. in many cases refused longer t0 Day rent.

Distress proceedings had the appearance of military manoeuv- ies-a "Tenant League"wax forni- e_d iii open defiance of the prop- rietors. and the colony was in a chaotic condition much of the time. Riots were frequent. and it became necessary to call in the aid of the inilltla. from Halifax to keep the peace.

The government oi the colony, in an effort to effect a satisfactory settlement‘ oi the difficulty-endea- vouierl to act as an intermediary between tiie absentee proprietors and tlic tenants, buying out, the lands" from those of tiie propriet- ois that could be induced to sell. and re-sclliiiit same to tiie tenants on reasonable terms. It was ini- pessible to force the proprietors to scll-lc-zislalion to this effect pass- ed by tlic colony was disailovted hv "l0 llllllvrd Government. A good manv purchases were made, how- ever, so that at tiie time of our eiilrl‘ into Confederation about three-fifths of the land had been bought out. and paid for by tiie ‘Gevdtrnment of Prince Edward ls- an .

For a complete understanding of these transactions. it must. be borne iirmind that the Island Government was merely acting as an intermediary between the prop- rietors and tiie tenants-acting as a trustee in buying out the lands so that our people (already in oc- cupation) miirht become freehold- ers.

It was an enormous strain on so young a colony. The payments had to‘ be madc- iii sterling at London, with the result that money was leaving tiie country at an alarming rate. The cost of administration was a large item. A complete staff had to be organired under the sup- ervision. of a Minister of the Crown. Not all of‘ the land had been properly surveyed, and all this work was done at tiie expense of tiie Colony.

The “Quebed” proposals for the entry of Prince Etiward Island into Confederation, at the same timeas the original Provinces entered. were refused by the Island.

Eubsequently the “Terms of 180.1‘ were {illlllllllted to the Island glflWffllllwlli, whereby tiie Domin- 1011 Govcrngiit-iit agreed t0 endea- vour to gct Great Britain to re- lieve us of the Ltiiid Question. and. failing that. to pay us eight liiiiidred llioitsaiitl dollars to buy out tiie remaining proprietors.

These terms were refused by the Island ior two reasons: (a) We (lid not think them sufficiently lib- oral; and tbi iii that they pro- vided for further negotiations with Great Britain, they did not pro- vide an IMMEDIATE solution of the Land Question.

Throughout all these negotiat- ions we see, therefore, that what was contemplated by all was a cift of eight hundred thousand dollars to Prince Etiward Island- "ior the purchase of lands now held by large proprietors."

Wc have seen that Prince Ed- ward Island never had any Piibllc Lands. Not only is it that tlic Gov- ernment of Prince Edward Island never had tiie administration of any Crown Lands,‘ but there never were any Public Lands in Prince Edward Island to be administered. On our entry into the Dominion, therefore, we were given a subsidy o1 forty-five thousand dollars a year.--

“as the Government of Prince Etiwnrd Island holds no lands iroiii the Crown, and conse- quently enjoys no revienue from that source for the con- struction and maintenance of local works."

Flll‘ill!.‘1‘iIlO1‘0, we were in a much worse position than if we had been merely landless-Aiecaiise the whole Colony was suffering under tiie curse of a universal leasehold sys- tem.

The D o m i n io n Government, therefore. on‘ our entry into the Union. loaned to the Island Gov- ernment tiie sum of eight hun- dred thousand dollars to buy out tiie lands remaining in the hands of the proprietors. (Three-fifths of tiie lauds had been bought out. pilot" to Confederation. and paid for out of current revenuei. Iii- tcrcsl. at five per ceiit on tiie a- mount so borrowed was deducted ziniiually‘ from our subsidy of for- Lv-fivc thousand dollars in lieu of public lands.

Let us stippose. for example. that our Provincial Government was. a ilnsiness corporation, tlesir- ous of borrowing clght huiitircd thousand (lcllars with which t0 purchase lands. At tlic same time it is necessary that we be subsid- ized to tlic extent o1 forty-five thousand tloliars a year. to enable us to carry on business. We bor- roiv the eight. hundred tliotisund cizillars to purchase tiie land. and commence to re-scll the same. But. we also commence to pay in- terest on the borrowed money.

Lniid sales brought us in a rev- enue between 1871i and 1900 of something less than forty tliotis- and dollars a year. So that the receipts from sales oi land were doing nothing more than paying the interest. on the borrowed money.

What then happens after 1900? The stock-in-trade, the land. has all been sold to pay the interest. and wc have nothing l€I|1-fl8Ii.I‘l(tl' land nor subsidy. -1n 1928 land sales brought in one hundred and seventeen tlollars and forty-six cents and no further income ls expected from this source.

We would like it. to be borne in inliid that we obtained no Public Lands from our purchases-most of the land we bought being al- ready occupicd by the tenants at the time such purchases were irlade; and tiie Province merely acted as an intermediary between them and the roprietors.

We got no a vantage as a Prov- ince in buying out these lands; instead. we lost s large sum of money, and by the transaction merely raised ourselves to the level of the other landless ov- Incsc. We were worse than and- less in the beginning. at the close oi the transaction we were still landless.

As a separate unit Prince Bd- ward island might have formed l very convenient one for mug-

gling operations. The problem oi sea-coasts fisheries would be great- ly magnified ii’ Prince Edward Is- land were not subject to the same authority as the other Maritime Provinces. N0 doubt other less material factors had an equally strong influence, such as tiie very definite desire of the Home Gov- ernment that the Island unite and the desire of Canadian statesmen to have a rounded out Dominion.

We are emphasizing these points t0 make our position perfectly clear t0 the Doiriinioii and the other provinces. Left to herself. with no coercion. direct or indir- ect. from the Imperial or Canad- ian Governments, this Province would have been perfectly capable of working out her own destiny, which might very well have re- sulted in a greater financial pros- perity and well-being for her people than they have attained un- der Confederation. This position we believe to be unique. No other Province became a member of tiie Dominion under conditions even nearly resembling the same situ- utlon.

It may also be asserted that to no other Province have so many dlaadvantages accrued from Con- federation and the National Polic‘ than lo Prince Edward Islaii. 'I‘lie nearest approximation to n similar result is to be found in nur sister Provinces of tiie Mari- liiiies~Novu Scotia and New Brunswick. The whole situation. and tiie detrimental effects of tiie National Policy uptin tiie Maritime Provinces. have been analyzed lna thorough and masterly manner by the Honourable Norman McLeod Rogers in a brief prepared by him for submission to the "Jones Commission" appointed lii i984 by the Government of Nova Scotia “to conduct a thorough enquiry into the economic welfare of Nova Scotia and its relations with tiie Dominion."

(Quotations follow from tiie Jones Commission report indie-tit- ing tiie conclusions reached by that ody on the subject. also lengthy excerpts iroiii Mr. ilagurs‘

brief .1 Education

We have all-early a" ted that the disadvantages accruing to Prince Edvrurtt Island us a result of‘ tiie National Policy have been greater than those sitiiercrl by any (iiiier Province of tiie Dominion. One of the most. serious results of these tlisativantagzcs has been the inability of Provincial sotuccs of revenue to meet the expenditures necessary to maintain a reasonable standard of general and technical editcation.

While Section 93 01' tlic British North ilmcrica Act. 18117, provided that “In and for each Prtiviiirr- the 112111518111113111111’ exclusively make laws lii relation to education," tsubjcct to certain provisions», no provision is made for the financial iil'l'flIl'_l!L‘\llt5ll!S resulting therefrom Whereas at tiie time oi (ionic-dera- lion it was stipposed that each Province would be iii a posiiioii to finance its own educational pro- gram, many conditions have since arisen to prove otherwise.

There were a number oi reasons for this provision in tlic British North America Act, among them ligioihs minorities" the isolation of the Provinces. and the lack of conception on the part of tiie framers of the Constitution that Canada would become tlic nation she has become. In tlic seventy years that have since passed. each Province has built tip its own school system. with regard lo its own particular needs and any .11.- icnipt to SCCIIYE uniformity aiiitmt: the school systems of Cnniidit would meet with serious (lllilCill- ties ' '

Slliiilnrly it would appear impos- sible, ut the present. time. to se- cure any general ant-cement. for tiie traiiafei" of educational control t0 tiie Dominion Lloverimieiit.

There, are. however, tliiierent classes of Provliic s in Canada: tlic fortunate ones, unti those iviiicli hale not been so fortunate “flit-re it is found that a Province is unable. by tiie exercise of strict economy. to provide siieli educat- loiiul facilities as should be tlic birthright of every Catiatllaii. tlicii the Dominion Government is bound to consider the national as- pect of the situation. An approxi- mately equal-mot. necessarily iden- tical-educaiion is tiie right of every young person in Caiiadzmiiid the nation as a Whole should take such steps as circumstances will permit to provide this equality.

Statistics will show that our laci- capita wealth is the lowest in the Dominion. In Prince Edward 1s- land n condition of well-distrib- litetl relative prosperity is trans- lated into u feeling of comparative poverty for tiie reason that all the otlier Canadian Provinces have iii- lierlted great natural resources, which glie opportunity ior vast expansion. Prince Edward Island. with its present. (lisnbilltles. can conjure up no .~‘il(.‘ll brilliant lut- m.

e.

The earning power of our ptopic is tlic lowest. and tlic per capita ivoalth is tiie second lowest. of any Province in Cuiiarla.

Per Capltn Wealth of the Canadian Provinces 1036

(Canada Ycai- Book 1937, p, 963i British Columbia — -— — — $21,414 Alberta — — — ~ — -— — 2.721 Saskatchewan — —- — - — 2.711 Ontario — — — — — — -— 2.4611 Quebec -— -— -— —- — —- -— 2.2110 Manitoba -- -— —— —- — -— 2.201 New Brunswick -- -—- — — 1.739 Prince Edward Island —— — 1.558 Nova Scotia -— — — -— »-- 1.514

Again. in 1033 the per capita

sale of life insurance iii this Pro- vince was the lowest in tlic Doin- inion. It amounted to $11.00. while {ior all Canada it was $33.70 per

end.

In Prince Edward Islniid there are 12_800 farms. Of these:

3.400 are of less than 50 acres;

5.200 are between 50 and 100 acres:

and are over 200 acres than 500 acres.

(The Maritime Provinces in their relation to the National Economy of Canada-Dominion Bureau of Statistics, 1934i.

Oiir agricultural set-tip is there- fore of the small-scale variety. There are no nearby large centres of population to absorb our agri- cultural products.

No country can hold its own in the modern world without a. citi- zenry which is educated to an ex- tent oi which our forefathers would 11 ver have dreamed. In the face o these conditions. our nation cannot exist half ignorant and half educated. Provincial lines

86TH; and less

the saiegtnirtlliig of racial and rc-.

3.000 are between "Iflifmsiifd

have faded before our modern transportation facilities. Every child born in one Province is a poten- tial citizen or criminal of some other Province. _ Iii tiie year i936 there were in operation in Prince Edward Island 4'10 schools, employing 657 teach- ers. Oi these schools 413 were, one-roam rural schools. Only 6B. or one-seventh 0f the schools of the Province, had more than one teacher. in utter/grace for 1936 ilvas 18.18.! 1n 1889, fifty yctirs ago, the hum» ber of children enrolled in our‘ schools of Prince. Edward Island

was 211.045. This loss of popula- iioii. ta direct result of the Nat- loiiiil Polit-vi, W111i tiie conse-

quently increased number of small one-room schools, i150 schools have aii average daily iiitetiduiice of less than lfii. has given rise t0 the most difficult problem the ed- ucation authorities of the Province are called upon to solve. 'I'he.se small schools are extremely costly, the cost per pupil being sometimes as much us $100.00 per annum.

And Hitthesc schools niu~t be kept in operation.

Oi tiie 657 teachers in the schools iii 1030. there were 120 be- itiiiiiei. Another 1C0 had only one experience. 144 had

from five to ten years’ experience. while only 11B had taught for ten years or more. It is evident that under existing conditions the tcachint: pmiesnoii has no perma- nent attraction. certainly none whatever ill tiie one-room rural school. The average time spent in fill" profession by the G57 teachers is about six years. Moreover. 465 are young women. tiie majority of whom are still iii their teens. Only 34 men with more than ten years’ experience are now employed in ourschools and oi these only seven have had more than twenty years of service.

Prince Edward Island 1s the only Province in Canada. where the principle (II governmental respon- sibility in education has been rec- ognized. and expenses paid, by more than fifty per ecnt. In this Province. us the following table shows. more than sixty per cent of tiie total east education and inc-re than ‘ 11y per cent of teat-hers’ saint is. are liurne by the Provincial Government:

Table N0. 1 6a Ii- S ,1 I :3 l: E5 :55 S. :1 §_ 5 n) ‘n '5 :.-. 5 i cl u --g '5 c: ,_ h c: ‘i Q 3L a l1 s a if U f “e a. 101th ’ 06.39040 61.7 10111 321,507.63 62.9 10112 324,830.87 59.7 1933 344,109.25 (15.3 11134 341954.01) 67.7 10115 351.778.2111 61.0 1930 343,938.08 63.0 Average per ecnt—03. . 'l‘;ible No. T5 : v v1 w: " "F ‘i Pr: ‘E a "q 1 1i > q, " 3 gs U Es ° e a a S: - i030 8249024600 v2.6 1031 "'i8.904.00 72.5 15"?“ 20.703400 74.3 lfliil 264210.00 78.6 1934 262.3 .00 75.7 11130 231541.00 75.9 193a 265.721] OD 75.8 ‘Gross Avcrtise per cciit—74.0 Willioiit Crown Lands. Vtvithout natural resources. iviiliout manu-

facturing iiidiis ies, without any distinctive advantages, our limited financial IPMJUTCPS not only fail i0 permit tiie titiriertikiiiu of a com- plete system of e<iiicalion,-—but the very existence of tiie present one is often scriaiislv threatened.

It iiiust be pureed that the na- tional lmooriaiien of education jus- tifies the Dominion Government in liikini: ivliat steps circlmlstmices will permit. to foster this service, tiie most iiiipurtnnt of all tiie s0- ciiil services. and to uivc aid ivliere aid 1:; needed to those provinces ivliicli. like Prince Edward Island. arc untibic to sci-tire revenues ade- quate to maintain a reasonable standard oi aeiicrzii t-dticatioii.

The standard of general educa- tion should be tiie same thiough- oui Caiintlti. Slime Provinces, are Ullllblt‘ to 11121111111111 this standard. It ienialiis for the Canadian Gov- ernment to equalize this (liifcrenee. No stale can rise above the level of tiie education of its citizens.

'I‘he concentration of wealth in ceitain are s. creating inequalities iii funds nuiilalili- tor tlic educa- iioii of cliiltlrt-ii. has become a grave national problem. This prob- lriii can be solved only by tiie Federal (iD\'(‘l‘l1l1l£'ll‘. tiie sole a- gent-y which collects taxes over the entire ii.i'loii and tiistrlbutes-i them to pi-tiiiiotc tiie welfare of the whole iiiitioii. Problems which ziffect the wolf-are of the entire nation. no matter liow localized. should be rieeltired national prob- lems and dealt with as such. _We should tax the wealth ofthe nation wherever it is found to educate the children of the nation wher- ever they are.

In Prince lfitiward Island we are able to spend far less per pupil per hnnum than any other P1'0- vince: and vet. our Provincial Gov- ernment lJhYs more than twice as much towards silcli cost as any other Prtirinu-

The iolloxvliia! lithle- sholvs the amount silent oii schools in the various Provinces lii 1034: -

Ell ‘.1 ° a i iii e s‘ : t; Q q i. 5 2a l‘ p, 1_ s 4110.41.35 11.390 $31.05 Nova scoila 3.335.040 aa.2o4_v40.0a ‘Now Bruits. 2.580.533 72.101! 3562 _Q1l0bcc 212117.377 542.35 20.16 (lntnriti 471.028.4221 614.2411 10.05 6.017.753 120.314 55.00

Manitoba Suslc. 7.557.281 175.457 43.07 Alum-in 9,551,840 130.155 ‘ 13, Columbia 7.055.193 103.408 74.03

Percentage of Provincial Gov-

ernnieitt expenditure on education of total expenditure on education by Provinces 11933» Prince Fxlvmrd Island — — — 66.3 British Columbia —- —- — —— 29.9 Nova Stalin -- -- -- — — — 25-3 Que-bee -- —-~ -- — -- - — — 23.4 Saskateheivnti -— - —- —- - 20.3 New Ifrnnswlek - — - — -— 17.3 “Ilfllliiriill - - - -— -— — —— 15.9‘ Alberta - — — - — -— -— 14-9 Ontario -— —~ — — —— -- -— —- 120 We are further of the opinion

The number of children t

that federal arants should not be stated to be specificially in aid of any one branch of education, such as agricultural. technical. or com- nierclal schools.’ To do this would rtin the risk of artificially stimu- lniiniz a Lriven class of education. We must have u system cure- fullv thought out and efficiently fldlllllliflefld, one which will hal- uncc- tlii- needs o! the whole of iCanarla in education against the resources of the whole of Canada. It is for this reason that we fav- l nur stiletunilal Dominion subsidies ,‘ dvfluilelv earmarked for education. l thoutrh not for any specific educa- tional service. and [ranted on some luv-is of provincial need.

Financial Arrangements Willi The Dominion

It has been laid down a- a basis of proceedings that the present Royal Conimtulon “will not revive: Iillfiilil" of the Duncan or White Comm . ans but wi'l accept these as part of the general sitiuvlon

affeciiiie, Dotninion-Pi1ii,in~i;11 re- latlons.“ From the point of "i-“W of

Prince Edward Island. (.1: ruling must he subject to the following limitations:

(Al The Province cannot accept tiie finality of the findings of tiie White Commission.

In the report Commission, at p. following conclusion. on arrairzemonts:

"ti. Conclusion on Fiiiamial Arrangements.

“It. follows from what we have said, that. both in respect of grant».- for the machinery of governments and in respect of debt allowances, the Maritime Provinces have satisfied us that they have a genuine claim to a readjustment of the financial arrangements that exist be- tween the Dominion and them- selves. and that in any re- adjustment their heriitlorial limitations entitle them to still further consideration.

“The tlernui of readjudmeiit are obviously a matter for de- tailed determination and assess- ment. so that the actual am- ount-as W011 as the reasons and purposes attaching to it can be recognized by the rest of Canada as fairand equit- ab'e. It is not possible. there- fore, to make a. final recom- mendation as to the increase and form of Dominion aid wlhich is required to satisfy the just claims of’ the Mai-l- tlme sittiatlon, but we recom- mend that the Dominion Gov- ernment should give immed- latc consideration to the Whole of this subject. with a. view to r complete revision of thi- financial arrangements as be- tween them and the Maritime Province; We do not feel, how- ever, that it would be right or wise that the Maritime Prov- inces. in their present state of grave necessity, with deficits accumulating against them in their ordinary revenue and ex- pendltiue. should be left in stispense until a reassessment is made by the Dominion Gov- ernment. and accordingly we recommend that immediate iii- terini lump sum increases should be made in the payment to the three Maritime Prov- inces as foi‘ows:-

Nova Scotiu $ 875.000

New Brunswick‘ 600.000

Prince Edward Islund- 125 ono

‘Iliese interim payments should be continued until tlic Dominion Government has had time to complete its in- vestigation and reassessment.“ Attention is especially directed

to the folloiving words: "The terms of readjustment are matter for detailed determination and assessment.”

The White Commission, as ap- pears by a. recital in its commis- sion of authority, was appointed to "deal with the recommendation of the Duncan Commission, that iliei'e'be a revision of the finan- cial arrangements between the Do- minion Government and the Marl- tlme Provinces." This clearly in- ferred that tiie duty of the Wlillc ComniLs-alon was the "detailed oe- termination and assessment" re- served by the findings of t-hc Diiii- can Commission.

'I‘lic White Commission, however,