Year. Population estimated. Expenditure. Per Capita.1896 ... 5,070,000 $ 41,702,383 8-221897 5,120,000 42,972,756 8 391898 5,175,000 45,334,281 8'761899 5,230,000 .51,542,635 9-851900 5,285.000 52,717,467 9981901 5,340,000 57.982,866 10-88 Thus, these gentlemen have Increased the expenditure about 36 per cent, the per capita expenditure about 32 per cent, while the population has increased less than 7 per cent. And, from the proposed expenditure, it is evident that there will be a great increase in the per capita tax for the ensuing year, unless there is a much greater increase in the population than we can reasonably anticipate or look forward for. Now, the taxation of the country might be looked at for a moment in periods of five years, in the way in which I have just dealt with the expenditure :

1892. 828,446,157 1897.... .. $28,648,6261893 29,321,367 1898.... .. 29,576,4561894 27,579,203 1999.... .. 34,958,0691895 25,446,199 1900.... .. 38,242,2231896 27,759,285 1901.. . .. 38,743,5508138,106,054 $170,168,924 Average annual taxation under five years of Liberal rule $34,033,785 Average annual taxation under five years of Conservative rule 27,710,442 Average annual increase under Liberal rule 6,323,343 Total taxation, 1897 to 1901, both inclusive $170,168,924 Total taxation, 1892 to 1896, both inclusive * 138,106,054 Increase under Liberal rule.... $ 32,062,870 Thus we see that the taxes had increased by no less than $32,000,000 in a period of five years. Therefore, I thought it right to bring to the attention of the government and of the country the fact that, while there has been a very great increase in the volume of trade, and in the revenues of the country, there has been an enormous, a startling increase in the public expenditure. During this period of buoyant revenue we have had no decrease in the public debt as might have been expected. The Minister of Finance has referred to the increase in the public debt under Conservative administration, but ' 42i if during the period of eighteen years of Conservative rule, the government had had so large an average revenue as this government has had for the past five years, not only would there have been no increase in the public debt, but there would have been a great diminution. I desire to point out also that, during that period of time, the Conservative government expended enormous amounts in the public works of this country. From 1878 to 1896, the Conservatives spent $65,000,000 on the Canadian Pacific Railway; the Liberals, from 1896 to 1901, have spent about $33,000 for the same purpose. On canals, the Conservatives spent $36,000,000, the Liberals, $14,250,000. The Conservatives set aside as debt for the provinces, $10,300,000, while this government set aside $267,000. The Conservatives spent on the Intercolonial Railway, $20,500,000; the Liberals spent $8,250,000. Taking these things into consideration, I do not know that the Minister of Finance has dealt quite fairly with the country in his comparison of the Increased debt during the last five years and during the eighteen years of Conservative rule. He does not take into consideration the enormous revenues we have had for the past five years, nor does he take into consideration the very much larger amount the Conservatives spent on public works in this country than have been spent by the present government. Now, with regard to the trade conditions of the past year, I do not think it necessarily follows that because importations into Canada are greater than they have been in past years, the country is prospering. If the tariff of this country were so arranged as to close dozens of our factories and drive thousands of our people to the United States to seek employment, one of the first results would be an enormous increase in our imports. Merely that this country has increased its imports, that of itself does not prove that the country is prospering; on the contrary, it may indicate a very bad condition of affairs so far as some of our industries are concerned. The following figures afford a comparison of the exports for 1900 and 1901 :-

1900. 1901. $ $ Produce of mines 24,778,339 40,531,314n fisheries... 11,224,866 10,730.999ii forest 29,954,089 30,276,180Animals and their produce ... 57,296,667 56,299,282Agricultural products. 38,469,961 38,568,052Manufactures 15,511,581 17,751,350Miscellaneous 540,541 351,966 A considerable portion of the increase of the produce of the mine consists of the exports of gold-bearing quartz, nuggets, and silver concentrates and ore, which went to the United States, as the hon. member for North Norfolk (Mr. Charlton) told us, to pay the balance of trade which exists between this country and the United States. Let us eliminate these articles from the calculation. The total exports for 1900 were $191,894,723. Deduct gold-bearing quartz, silver concentrates, coin and bullion, amounting to $24,159,666, and we find that the exports of other articles were $167,735,057. In 1901, our total exports were $196,487,632. Deducting coin, bullion, concentrates, &c., $28,844,393, and we have a balance of $167,643,237, or about half a million dollars less of exports than we had last year. The following is a tabulated statement TOTAL EXPORTS OF CANADA. ' 1900. 1901. Total exports of Canada $191,894,723 $196,4S7,632 Less gold-bearing quartz, silver concentrates, coin and bullion 24,159,666 28,844,393

I do not see that my hon. friend the Minister of Finance has so much to congratulate himself upon, so far as the agricultural, mineral and forest exports of the country are concerned, because the advance seems to be made up altogether of gold-bearing quartz, bullion, &c., coupled with the substantial advance of upwards of $2,000,000 in manufactured goods. Now if we look at the imports and the exports in the same way for 1901, let us see how we stand. If we eliminate from our exports and imports gold-bearing quartz, silver concentrates, bullion and coin, our imports and exports stand as follows : Imports, $186,878,231; exports, $167,643,237; leaving what my lion, friend from North Norfolk (Mr. Charlton) would call a balance of trade against Canada of $19,234,994. The following is a tabulated statement Tctal imports, 1901 $ 186,878,231 " exports, 1901 167,643,237 Balance of trade against Canada. $ 19,234,994 Now the development of our trade with the mother country is a circumstance upon which my hon. friendi the Minister of Finance has seen fit to congratulate the country; but I notice that in doing so he congratulated the country more particularly on the average for five years, and not on the particular results of the past year. Well, let us look at the results of the past year and compare them with those of 1900 :

Annual Report of the Department of Militia and Defence, 1901.-Hon. Mr. Borden. On motion of the Prime Minister, House adjourned at 5.55 p.m.

Tuesday, March 18, 1902. The SPEAKER took the Ghair at Three o'clock.