April 10, 1924


On the Orders of the day.


LIB

William Daum Euler

Liberal

Mr. W. D. EULER (North Waterloo):

I desire to bring to the attention of the government a news item which appeared in the Manitoba Free Press some days ago which reads:

The Budget-Mr. Robb

Washington, March 27.-The new Immigration bill was reported to the Senate this afternoon, and will be given the right-of-way next week. The chief item of interest to Canada is the restriction upon immigrants from Canada not born in the Dominion. No quota barrier is erected against native-born Canadians, but other immigrants from Canada will be treated as though coming from the land of their birth. Thus, a Canadian citizen born in England would be refused admission if the British quota were exhausted.

Senator Colt, Republican, Rhode Island, chairman of the senate immigration committee, interviewed by the Free Press this evening, said: "The underlying principle in the bill is restriction of immigration from all countries except our sister nations on this continent. We find, however, that European immigrants evade the quota provision of the Immigration Act by colonizing in contiguous countries, notably Cuba, and then come into the United States as citizens of such country. To stop this we provided all immigrants shall be treated as coming from their native land. We had no complaint about Canada, but the provision is general, and, of course, applies to Canadian citizens not born on this continent."

I desire to ask the government if they have any information which they can give to the House as to whether this discrimination against naturalized citizens is to be carried on.

Topic:   MIGRANTS FROM CANADA TO UNITED STATES
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Hon. J. A. ROBB (Minister of Immigration and Colonization):

Until my hon. friend (Mr. Euler) brought this matter to our attention, I had not had any notice of it. I shall look into the matter to which it refers, and make a reply in a day or two.

Topic:   MIGRANTS FROM CANADA TO UNITED STATES
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REDISTRIBUTION


On the Orders of the day.


CON

William Garland McQuarrie

Conservative (1867-1942)

Mr. McQUARRIE:

Might I be permitted to ask whether it is the intention of the government to have a meeting of the Redistribution committee before the Easter adjournment? As a member of that committee I must protest against the unnecessary delay in getting down to business.

Topic:   REDISTRIBUTION
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LIB

Edward Mortimer Macdonald (Minister of National Defence)

Liberal

Hon. E. M. MACDONALD (Minister of National Defence):

For the information of my hon. friend, I desire to say that a meeting of the committee will be called for the first of the week.

Topic:   REDISTRIBUTION
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RURAL CREDITS


On the Orders of the Day:


PRO

Edward Joseph Garland

Progressive

Mr. E. J. GARLAND (Bow River):

A little more than three weeks ago a question was asked of the government by a member of this part of the House to ascertain when the government would place on the Table of the House the report of the commission on Rural Credits. Up to this date there has been no intimation as to whether the government had that report or when it would lay it on the

[Mr Euler.]

Table. As this matter is one of vital importance to western Canada, and a solution must be reached this year, I would ask the government when we may expect that report and when the House will have it before them.

Topic:   RURAL CREDITS
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Hon. Mr. ROBB:

Professor Tory, who is

entrusted with investigating this matter, has not yet reported. As soon as he reports to the government we will be in a position to answer the question.

Topic:   RURAL CREDITS
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THE BUDGET

ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE


Hon. J, A. ROBB (Acting Minister of Finance) moved: That Mr. Speaker do now leave the chair for the House to go into committee of Ways and Means.


LIB

Hewitt Bostock (Speaker of the Senate)

Liberal

Mr. SPEAKER:

I do not wish to be

critical, but, according to Rule 17C, on Thursdays and Fridays when the Order of the Day is called for the House to go into committee of supply or of ways and means, Mr. Speaker shall leave the chair without putting any question. I suppose if I were to take the letter of the law, I would have to leave the chair, and the budget speech would be delivered in the committee of the whole House. I think I am living up to the traditions of the House by putting the question and proceeding as we have always proceeded before this rule came into force.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
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LIB

James Alexander Robb (Minister of Immigration and Colonization)

Liberal

Hon. J. A. ROBB (Acting Minister of Finance) :

Mr. Speaker, in presenting the annual financial statement to parliament, I cannot refrain from expressing what I know to be the unanimous feeling of this House, our profound regret that the Minister of Finance (Mr. Fielding) is unable to be present to-day to deliver it himself. Last year that right hon. gentleman delivered his seventeenth budget speech, a record, I believe, unequalled by any other Minister of Finance within the Empire. When, upon the assumption of office by the present administration, the right hon. gentleman returned to his former post as Minister of Finance, it was at a critical period in the history of Canada. I am sure that the House will agree with me when I say that since then the Right Hon. W. S. Fielding has discharged his important and onerous duties with that ability, integrity and courage always characteristic of him during his long and distinguished career. Hon. gentlemen of all

The Budget-Mr. Robb

parties in this House will, I know, join with me in wishing him a speedy recovery from his present illness and an early return to his public duties.

Fiscal Year 1922-23-Revenue

The Public Accounts for 1922-23 were submitted to parliament during this present session. The consolidated revenues or ordinary receipts obtained during that year were $394,614,900, an increase of $12,662,513.01 over the previous year.

Other receipts, amounting to $8,479,310.30, which included $8,199,333.31 received from the Imperial government to cover exchange on repayments in London to the Dominion of Canada from July, 1920, to August 2, 1921, brought the gross revenue to $403,094,210.30.

Expenditure 1922-23

The expenditure side shows $332,293,732.09 for ordinary expenses. Capital, demobliza-tion and other charges amounted to $18,314,814.63, thus making the total disbursements for that year $350,608,546.72.

The surplus of revenue over total disbursements left $52,485,663.58 available for railways, Canadian Government Merchant Marine and other obligations amounting to $84,126,730.59. Of this amount $77,862,348.23 was required for railways and $5,979,856.08 for the Canadian Government Merchant Marine. The outcome of the year resulted in an increase of $31,641,067.01 to the public debt.

Fiscal Year 1923-24

Coming now to the year 1923-24 which has just closed, I might say that some time will elapse before all the returns for that year will come to hand and allow of definite results being determined. We can, however, make a fairly close estimate which should not differ materially from the actual figures when the books are closed.

Estimated Revenue 1923-24

By adding to the actual revenue received by the Department of Finance, up to and including 31st March last, the estimated amount of revenue yet to come, the accounts for that year, when finally closed, will show a total revenue of about $396,000,000, being an increase of $1,500,000 over the revenue of 1922-23.

The estimated revenue from customs duties will be $121,800,000, aj^ increase of $3,700,000 over the previous year. From excise duties we expect $38,200,000, an increase of about $2,500,000. The estimated revenue from excise taxes will be $121,000,000, an increase of about $14,500,000. From income taxes we estimate $53,750,000, a decrease of about $6,000,000 as compared with the previous year. From delayed business profits taxes we will receive some $4,650,000, a decrease of $8,381,000. We estimate a revenue from interest on investments of $11,700,000, being a decrease of about $4,700,000, which is accounted for by the reduction in 1922 of some $56,000,000 in the indebtedness of the Imperial government to Canada.

Estimated Expenditure 1923-24

Turning now to expenditures, it is estimated that when all accounts are closed, the expenditure for the year on ordinary account will be $328,250,000, a decrease as compared with the previous year of $4,000,000.

Estimated Surplus of Ordinary Revenue over

Ordinary Expenditure, 1923-24

Taking the estimated revenue for the year ended March 31, 1924, as $396,000,000, and the estimated expenditure chargeable to Consolidated Fund as $328,250,000, there will be a surplus of revenue over the ordinary expenditure of $67,750,000, available for capital, special and other obligations.

Capital Expenditures, 1923-24

Capital expenditure for public works, including Marine department, will amount tc $3,865,000, and capital expenditure for Railways and Canals, $8,305,000, making a total capital expenditure of $12,170,000, an increase of $2,362,000 over the previous year.

Special Expenditures, 1923-24

Special expenditures will amount to $8,390,000, of which $740,000 will be required for

demobilization accounts, and $7,650,000 for discount and cost of loan flotations.

Railway Loans

Parliament at its last session authorised $74,550,000 for loans to the Canadian National Railway Company, to be made by way of cash, or by way of guarantee, or partly one way and partly the other. These alternative provisions for meeting railway obligations as

The Budget-Mr. Robb

voted by parliament were first authorised during the session of 1921.

In July, 1921, $25,000,1)00 was raised by way of guarantee for Canadian Northern railway purposes; and in September, 1921, a further amount of $25,000,000 was raised by way of guarantee for purposes of the Grand Trunk Railway Company, making in all $50,000,000 by way of guarantee chargeable against the loan vote for 1921-22. During the fiscal year 1922-23, the government was in a position to meet the railway requirements by way of loans in cash. During the fiscal year just ended, $24,550,000 was paid to the railways by way of cash. We received $768,336 as a refund against the amount advanced in 192122 for purchase of rails.

The vote for the fiscal year was charged with $24,550,000, and the balance of $50,000,000 was raised in February last by way of guarantee and held by the Minister of Finance in a trust account, payments being made from time to time as necessity arose.

I may say that when loans are made by way of cash, under the arrangements made by the former Minister of Finance, they are treated as non-active assets and are, therefore, not taken into account when determining the net public debt. Moneys raised by way of guarantee, which places the government in the position of an endorser, do not presently affect the public debt in any way, as they are indirect obligations.

The action taken by the former Minister of Finance in treating cash loans to the Canadian National Railways as non-active assets is, I think, a very proper procedure, especially when such loans are for the purpose of meeting deficits whenever incurred, and interest charges.

Where moneys are required for construction purposes to better equip the railways for increased earning powers, there is no question that such obligations might be considered as proper capital charges, and, if necessary, be met by way of guaranteeing the issue of railway securities.

The railway issue of February last, guaranteed by the Minister of Finance, was to meet capital charges. A substantial balance is still held in trust by the minister and will be available for the railways for such purposes during the year 1924-25.

Since 1920 the following railway bond issues have been guaranteed by the Minister of Finance under special statutory authority, quite

apart from the amounts provided in the annual votes of parliament for railway purposes:

October, 1920-Grand Trunk Railway Company $25,000,000

December, 1920-Canadian Northern Railway

Company 25,000,000

March, 1922-Canadian Northern Railway

Company H 000.000

August, 1923-Canadian National Railway Company-Serial Equipment Issue 22,500,000

The $22,500,000 issue of 1923 is the first equipment issue carrying the government's guarantee. The bonds are secured on the equipment purchased and, in addition, guaranteed under the Guarantee Act of 1923. This was done so as to make the security more attractive to investors and secure the highest price. Previous equipment issues were obligations of the company, specifically secured by the equipment, but without any government guarantee.

Public Debt

Turning now to the public debt. On March 31, 1923, our net public debt stood at $2,453,776,868.74. Our estimated ordinary revenue for the year just closed is $396,000,000. Our estimated ordinary expenditures of $328,-

250,000, and capital expenditures $12,170,000; special expenditures $8,390,000; railway loans $23,781,664; Canadian Government Merchant Marine loans $1,500,000, and loans to Quebec Harbour Commission, which are treated as a non-active asset, $500,000, together with an amount of $621,987 carried on the books of the department for Victoria Shipowners, Limited, which it is proposed to treat as a non-active asset in the place of an active asset as heretofore make the total charges $375,213,651. Our surplus of ordinary revenue over these expenditures will therefore be $20,786,349 to be applied towards the reduction of the national debt as it stood on March 31, 1923. To this must be added $1,317,000, being the amount of sundry outstanding indebtedness cancelled during the past year, and a further amount of $8,305,760.37 received in settlement of an adjustment of acknowledged book debts between the Imperial and the Dominion governments. These two amounts, totalling $9,622,760.37, together with the $20,788,349 surplus of revenue over total expenditures, reduce our net public debt as of March 31, 1923, by the amount of $30,409,109.37.

On March 28 last an adjustment of acknowledged book debts between the Imperial and the Dominion governments was effected. The Imperial government as shown by the books of the Department of Finance, were indebted to us in the amount of $66,779,597.42. On the other hand, the Imperial gov-

The Budget-Mr. Robb

ernment held our bonds to an amount of $67,207,351.17, of which $2,000,000 were 3i per cent bonds maturing 1925-28, and $65,207,351.17 were 4i per cent bonds maturing 1925-45, the bonds being part of an issue made by Canada to the Imperial government in 1916. Negotiations were undertaken and settlement made by offsetting bonds issued to the Imperial government against their indebtedness to Canada. The unmatured bond issues were taken at the rate of 92.91 for the 3i per cent issue and 87.48 for the 4jt per cent issue. A settlement was effected on a 5i per cent basis, being the rate of interest Canada is paying on her outstanding Victory loans from which the moneys were obtained for advances to the Imperial government. The value of the bonds at these rates was $58,901,590.80, being $8,305,760.37 under their face value.

Refunding Loan

On November 1, 1923, the 5i per cent five-year bonds of the 1918 Victory loan issue amounting to $172,459,650 matured. In September last tenders were asked for an issue of a five per cent refunding loan. The highest bid, from a Canadian syndicate, was accepted, namely, $53,000,000 five-year bonds at 96.75 and accrued interest and $147,000,000 twenty-year bonds at 96 and accrued interest. Arrangements were made with the syndicate to give to holders of the maturing bonds the privilege of converting their holdings into bonds of the refunding issue. The price to the public was 99 for the five-year bonds and 98.25 for the twenty-year bonds. The maturity date of the refunding loan is October 15, 1928, for the five-year bonds, and October 15, 1943, for the twenty-year bonds. It was stipulated that the syndicate should associate with themselves the recognized bond dealers in Canada. All commissions to banks and brokers, advertising expenses and all other charges usually included in flotation expenses, were borne by the syndicate. Holders of the matured bonds took advantage of the offer to the extent of $59,388,200, leaving a balance of $113,071,450 to be redeemed in cash.

Fiscal Year 1924-25

I come now to the fiscal year 1924-25. Estimates of revenue for the year upon which we have just entered cannot be made with any degree of accuracy. The revenue we would receive on the present basis of taxation would be materially affected by reductions in taxes which, in view of the most satisfactory outcome of the year just closed, it is proposed to submit to parliament. It is hoped, however, to offset any considerable reduction in the revenue by a most rigid economy in ex-78*

penditures. The estimates now before the House show a very substantial reduction as compared with the estimates of last year. We shall no doubt have supplementaries, but rigid economy will be exercised in their preparation; and in this the government hopes for and expects co-operation from all sections of Canada.

Canadian Trade-Merchandise Only

I desire, Mr. Speaker, to place on record tabulated statements illustrating the development of Canadian trade. For comparison I have taken the year immediately preceding the war, then the years 1922 and 1923, and eleven months ended February, 1924. With the permission of the House I will place these statements on Hansard.

Trade with the United Kingdom

Fiscal Year Imports for Total Excess of

ended 31st Consumption Exports Exports

March over

Imports

1914 $132,070,406 $222,322,292 $ 90,251,886

1922

117,135,343 300,363,193 183,227,8501923

141,330,143 379,918,526 238,588,383

Eleven Months

ended Feb., 1924

(unrevised).. .. 138,224,868 332,276,770 194,051,902

Trade with the British Empire

Including the United Kingdom

Fiscal Year Imports for Total Excess ofended 31st March Consumption Exports Exports over Imports1914 $154,526,846 $246,032,121 $ 91,505,2751922 149.109,253 347,450,451 198.341,1981923 179,638,805 440,993,115 261,354,310Eleven Months ended Feb.. 1924 (unrevised).. .. 178,619,198 408,714,744 230,095,546Trade with United States Fiscal Year Imports for Total Excess ofended 31st March Consumption Exports Imports over Exports1914 $396,302,138 $176,948,299 $219,353,8391922 515,958,196 304,104,177 211,854,0191923 540,989,738 380,347,721 160,642,017Eleven Months ended Feb., 1924 (unrevised).. .. 540.461,296 397,369,390 143,091,906Trade with all Foreign Countries Fiscal Year Imports for Total Excess ofended 31st March Consumption Exports Imports over Exports1914 $464,667,152 $209,405,103 $255,262,0491922 598,695,079 406,476,558 192,218,5211923 622,940,439 504,302,722 118,637,717Eleven Months ended Feb., 1924 (unrevised).. .. 627.794.090 556,223,251 71,570,839

The Budget-Mr. Robh

Total trade with all Countries

Fiscal Year Imports for Total Excess of ended 31st Consumption Exports Imports

March over

Exports

1914 $619,193,998 $455,437,224 $163,756,774

Excess of Exports over Imports

Customs tariff changes, and reductions under the Special War Revenue Act. These resolutions will show a substantial reduction in taxation. For purposes of brevity and clearness I shall place the proposed changes in groups according to the classes affected.

Customs Tariff and Consumption or Sales Tax Reductions

1922

747,804,332 753.927,009 6,122,6771923

802,579,244 945,295,837 142,716,593

Eleven Months

ended Feb., 1924

(unrevised).. .. 806,413,288 964,937,995 158,524,707

It will be observed that these statements show:

1. Canadian trade with the United Kingdom;

2. Canadian trade with the British Empire, including the United Kingdom;

3. Canadian trade with the United States;

4. Canadian trade with all foreign countries; and

5. A summary of total Canadian trade with all countries.

This brief statement showing the steady growth of Canadian trade with the nations of the world must be gratifying to Canadians.

During the fiscal year ended March 31, 1914-four months before the outbreak of the Great War-Canada had a total foreign trade of $1,074,631,222, with an excess of imports over exports of $163,756,774. To that extent the balance of trade was against Canada. The fiscal year ended March, 1922, shows a total foreign trade of $1,501,731,341. The difference between exports and imports~was only $6,122,677, but the balance was favourable to Canada. In the fiscal year ended March, 1923, we had a total foreign trade of $1,747,875,081, with a favourable balance of $142,716,593 over imports. In other words, Canadian foreign trade had increased 60 per cent over that of 1914, an unfavourable trade balance of $163,756,774 had been converted into a favourable balance of $142,716,593.

Returns for the eleven months ended February, 1924, indicate continued healthy growth of Canadian foreign trade. Already both imports and exports exceed those of 1923, and the balance of trade favourable to Canada on eleven months' business is $158,524,707. Statistics indicate that each succeeding year Canadians are increasing the percentage of products marketed in the finished or semifinished condition, thus providing more labour for our own people and higher class freight for Canadian railways.

We now come to the resolutions which I am about to submit to the House proposing

Items

Mowing machines, harvesters, binders, reapers 7* free

Cultivators, harrows, horse-rakes, seed drills manure spreaders, and

weeders 10 free

Ploughs, threshing machines and complete

parts thereof 10 5

Farm or field rollers, post hole diggers, hay loaders, stumping machines, grain crushers, potato-diggers, hay tedders and other agricultural implements 10 5

Farm wagons 10 5Fertilizers

5 freeAxes, scythes, sickles or reaping hooks, hay or straw knives, edging knives, hoes, rakes and pronged forks.. 15 10Shovels and spades. ..20 10

Farming Industry

Preferential Tariff General Tariff Old Proposed Old Proposed rate rate

rate

rate

12* 7*

15 10

17*

10

free

22* 20

32* 20

It is proposed to remove the sales tax from all the foregoing items grouped under the heading of Farming Industry and also from binder twine. Fertilizers are already exempt.

Materials for Agricultural Implements

It is proposed to give to manufacturers of agricultural implements "free entry" on pig iron, bar iron and bar steel when used in the manufacture of mowers, binders and reapers, in lieu of a drawback of 99 per cent. The "free entry" is also extended to these raw materials when used in the manufacture of cultivators, harrows, horse-rakes, seed-drills, manure spreaders and weeders. Materials which enter into the cost of the aforementioned items and other implements on which the duty is to be reduced will be entitled to entry at 7i per cent under all tariffs.

It is proposed to grant a drawback of 99 per cent on materials and parts of implements on hand imported prior to this date which will have entered into the cost of all agricultural implements on which the duty is to be reduced. It is also proposed to exempt from the sales' tax all the articles and materials to be used in the manufacture of these

agricultural implements, as well as goods consumed in the process of manufacture.

Fruit Growing Industry

Preferential Tariff General Tariff

Old Proposed Old ProposedItems rate rate rate rateSpraying machines, fruit or vegetable grading machines, pruning 15 10hooks, pruning shears. 10 5

It is proposed to remove the sales tax from the foregoing items and also from nicotine sulphate and spraying preparations.

Poultry Industry

Preferential Tariff General Tariff Old Proposed Old Proposed Items rate rate rate rate

Incubators for hatching eggs, brooders for

rearing young fowl.. 10 5 15 10

We propose removing the sales tax from these items as well as from poultry feed.

Dairying Industry

Preferential Tariff General Tariff

Old Proposed Old ProposedItems rate rate rate rateMilking machines, cen- trifugal machines for testing blitter fat, 15 10milk or cream.. .. 10 5

The sales tax is to be removed from the foregoing items and also from cream separators and parts thereof, and extract of rennet.

Mining and Quarrying Industry

Items rate

Rock drills, percussion coal cutters, coal augers, stamp mills, ore and rock crushers, and rotary and coal

drills 15

Coal-washing machinery, coke-making machinery, and machinery and apparatus for use exclusively in the distillation or recovery of products from coal tar or gas 20

Preferential Tariff Old Proposed

rate

General Tariff Old Proposed rate rate

27*

7* 30

and from 7* 27*

12*

12*

It is proposed to remove the sales tax from the foregoing items grouped under the heading of mining and quarrying. In addition the sales tax is to be removed from mining cars and other similar appliances [DOT]used for mining or quarrying, and from explosives.

The Budget-Mr. Robb

Lumbering Industry

Preferential Tariff General TariffOld Proposed Old Proposed Items rate rate rate rateSaw-mill machinery.. .. 15 10 25 20Logging machinery which includes logging cars, blocks and tackle, yarders and pratic- ally all machinery used exclusively for logging operations.. .. 15 10 30 20and and 20 27* Logging wagons. 174 5 25 10

The sales tax is also to be removed from the foregoing items pertaining to the lumbering industry.

Fishing Industry

All marline for the fisheries is to be made free of customs duty; heretofore only barked marline has been free.

We propose that the sales tax on rubber boots shall be reduced from 6 per cent to 2J per cent. Rubber boots, as hon. gentlemen know, are used extensively in the fishing industry.

Barked marline for the fisheries is already exempt from sales tax, and, as a result of the change we are proposing, all marline for the fisheries will become exempt from the sales tax.

Breadstuffs and Provisions

It is proposed to remove the sales tax from the following articles:

Cereal foods, macaroni and vermicelli, sago and rice.

Meats, salted or smoked.

The sales tax is being reduced from 6 per cent to 2i per cent on biscuits, canned vegetables, canned fruits, jams and preserves.

Boots and Shoes, including rubber footwear

We propose to reduce the sales tax from 6 per cent to 2i per cent.

The sales tax will be removed from milk foods.

Materials Consumed in Process

Woollen, and many other manufacturing establishments will benefit by a proposed clause which will provide that materials, consumed in process of manufacture or production, which enter directly into the cost of goods subject to the consumption or sales tax, will be exempt from the sales tax.

Well-drilling machinery and apparatus

The sales tax is to be removed.

Crutches are being made free of both customs and sales tax.

Tariff

Items

449

450a

453b

453c

460b

field rollers, post hole diggers, snaths, machines, milking machine attachment fugal machines for testing butter fat, cream; stumping machines, and othei tural implements, n.o.p., and complete articles specified in this tariff item.

milk

straw knives, edging knives, hoes, rakes, n.o.p. and pronged forks

for the same. Lawn mowers..

thereof, for logging purposes exclusively, 're crushers, rock crushers, stamp mills, ro percussion coal cutters, coal augers, rol

476a

502b

506a

533b

663

663b

operations

-lachinery and apparatus for use exclusively in washing coal; machinery and apparatus for use exclusively in producing coke and gas; machinery and apparatus for use exclusively in the distillation oi recovery of products from coal tar or gas; and integral parts of all machinery or apparatus merated in this item not to include motive pi nor tanks for gas

facture of phonograph motor springs when im ported by manufacturers of phonograph motor springs for use exclusively in the manufacture of

such articles in their own factories

Bicycle rim strips of maple not further manufactured

than bent to shape and jointed

Crutches or specially constructed staffs for a cripple Linters of short fibres of cotton, bleached, when imported by manufacturers of blotting paper to be used in their own factories for the manufacture

of blotting paper

Farm wagons, logging wagons, and complete parts

thereof

Fertilizers, compounded or manufactured, n.o.p....

Articles which enter into the cost of the manufacture of fertilizers, when imported for use exclusively

in the manufacture of fertilizers

Fish hooks, for deep-sea or lake fishing, not smaller in size than number 2-0; bank, cod, pollock and mackerel fish lines; and mackerel, herring, salmon seal, seine, mullet, net and trawl twine in hanks or coil, barked or not,-in variety of sizes and threads-including gilling thread in balls, and head ropes for fishing nets; marline, and net nor-sels of cotton, hemp, or flax; and fishing nets or seines, and manila rope, not exceeding one and one-half inches in circumference, when used exclusively for the fisheries, not to include hooks, lines, nets or ropes commonly used for sportsmen's purposes

British Preferential Tariff Inter- mediate Tariff 1 General Tariffi- r i, , r t f 5 p.c. 10 p.c. 10 p.c.r 10 p.c. 15 p.c. 20 p.c.1 10 p.c. 15 p.c. 20 p.c.20 p.c. 30 p.c. 32$ p.c.10 p.c. 15 p.c. 20 p.c.10 p.c. 15 p.c. 20 p.c.71 p.c. 10 p.c. 121 P-c-Free Free Free10 p.c. 121 P-c- 15 p.c.Free Free Free71 p.c. 10 p.c. 12$ p.c.5 p.c. 10 p.c. 10 p.c.Free. Free FreeFree Free FreeFree Free Free

The Budget-Mr. Robb

4. Resolved, That Schedule B to The Customs Tariff, 1907, as amended by chapter nineteen of the Statutes of 1922 and chapter forty-two of the Statutes of 1923, be further amended by striking thereout items 1002, 1026, 1027, 1031, 1036, the enumeration of

goods, and the rate of drawback to the said items, and to provide that the following items, enumerations and rates of drawback of Customs duties be inserted in said Schedule B:

Tariff Items Goods

1026 Materials, including all parts, imported

prior to eleventh day of April, 1924

1031 Artificial silk tops and waste or artificial

fibre silk, artificial silk yarns or fila-

ments, enumerated in tariff items 583a

and 5S3aa.

1036 Bar iron or steel, rolled, whether in coils

or bars, one and one-eighth of an inch in

diameter and over.

1038 Materials, including all parts

1039 Materials, including all parts not finished

1040 Bags, boxes and barrels

When Subject to Drawback Portion of Duty (Not including Special Duty or Dumping Duty) Payable as Drawback

When enteringinto the cost of goods enumerated in tariff items 445, 446, 446b, 447b, 448 and 591, before the first day of July, 1927 99 p.c.

When used by manufacturers of malleable iron castings or steel shafting for use exclusively in the manufacture of such articles for use in the manufacture of goods enumerated in tariff items 445, 446, 446b, 447b, 448 and 591 80 p.c.

When further manufactured before the first day of January, 1925- 60 p.c.

W5 * 7hen used in the manufacture of goods enumerated in tariff item 410 99 p.c.

Wrhen used in the manufacture of goods enumerated in tariff item 544a 99 p.c.

When used in the manufacture of goods enumerated in tariff items 447 and 448b 30 p.c.

When imported by producers of salt, for use in covering salt produced in Canada 60 p.c.

W7hen used in the manufacture of bags, boxes and barrels, when such bags, boxes and barrels are used in covering salt produced in 60 p.c.

Canada

5. Resolved, That any enactment founded on the foregoing resolutions shall be deemed to have come into force on the eleventh day of April, one thousand nine hundred and twenty-four, and to have applied to all goods mentioned in the foregoing resolutions imported or taken out of warehouse for consumption on and after that day, and to have applied to goods previously imported for which no entry for consumption was made before that day.

Special War Revenue Act

1. Resolved, that it is expedient to introduce a measure to amend The Special War Revenue Act, 1915, and amending acts, by providing that the rate of the consumption or sales tax imposed by section nineteen BBB of the said act shall be reduced from six per cent to five per cent.

2. Resolved, That it is expedient to introduce a measure to amend The Special War Revenue Act, 1915, and amending acts, by providing that the following goods shall be exempt from the consumption or sales tax imposed by section nineteen BBB of the said act, that is to say:-books enumerated in Customs Tariff items 173 and 175; printed text-books authorized by the Department of Education of any province in Canada; goods enumerated in Customs Tariff items 45, 46, 209b, 219a, 352a. 410, 410a, 445, 445a, 445b, 446, 446b, 447b, 448, 449, 4o0, 453b, 453c, 460, 460a. 460b, 461, 461a, 466, 466a, 469 including goods enumerated in this item of a class or kind made

iu Canada, 506a, 544, 591, 591a, 663b, 666, 667, 696; insulin; extract of rennet; poultry feed; ice cream; sago; rice, cleaned; macaroni and vermicelli; meats, salted or smoked; carbolic or heavy oil, to be used only in creosoting timber; cream separators and parts thereof; cars and other similar appliances for use exclusively at a mine or a quarry for mining or quarrying; articles and materials to be used exclusively in the manufacture of goods enumerated in Customs Tariff items 219a, 410, 410a, 445, 445a, 445b, 446, 446b, 447b, 448, 449, 450, 453b, 453c, 460, 460a, 460b, 461, 461a, 466, 466a, 469 including goods enumerated in this item of a class or kind made in Canada, 506a, 591, 591a, 663, 666, 667, 696; articles and materials to be used exclusively in the manufacture of cars and other similar appliances for use exclusively at a mine or a quarry for mining or quarrying; articles and materials to be used exclusively in the manufacture of cream separators and parts thereof; materials, not to include plant equipment, consumed in process of manufacture or production, which enter directly into the cost of goods subject to the consumption or sales tax, manufactured or produced by a licensed manufacturer or producer; materials, not to include plant equipment, consumed in process of manufacture or production, which enter directly into the cost of goods enumerated in Customs Tariff items 410, 410a, 445, 445a, 445b, 446, 446b, 447b, 448 , 449 , 450 , 453b, 453c, 460, 460a, 460b, 461, 461a, 466, 466a, 469 including goods enumerated in this item of a class or kind made in Canada, 506a, 544, 591, 591a, 663,

The Budget-Sir

Henry Drayton

663b, 666, 667, 696; and by providing that on the following goods there shall be imposed, levied and collected only fifty per cent of the said consumption or sales tax, that is to say:-boots and shoes, including rubber footwear; biscuits of all kinds; goods enumerated in Customs Tariff items 86, 105, and 106.

3. Resolved, That it is expedient to amend The Special War Revenue Act, 1915, and amending Acts, as follows, that is to say:-

(a) By repealing subsection three of section nineteen BBB of the said Act and substituting therefor a new subsection three providing that if at any time it appears to the Minister of Customs and Excise that payment of the consumption or sales tax is being evaded by a licensed manufacturer or producer or licensed wholesaler or jobber the Minister may require that the consumption or sales tax shall be imposed, levied and collected on any material specified by the Minister, sold to any licensed manufacturer or producer or licensed wholesaler or jobber or to any class of licensed manufacturers or producers or licensed wholesalers or jobbers specified by the Minister, at the time of sale of such material when produced or manufactured in Canada, or at the time of entry for consumption by such licensed manufacturer or producer or licensed wholesaler or jobber when such material is imported, subject to deduction thereafter on submission by the licensed manufacturer or producer or licensed wholesaler or jobber of proof that such material has been used in the manufacture of an article which is subject to the consumption or sales tax and on which the said tax has been paid.

(b) By repealing subsection five of said section nineteen BBB.

(c) By striking out subsection six of said section nineteen BBB and substituting therefor the following:- "(6) Subject to the provisions of subsection three

of this section, every manufacturer or producer shall take out an annual license for the purpose aforesaid, and the Minister may prescribe a fee therefor, not exceeding two dollars, and the penalty for neglect shall be a sum not exceeding one thousand dollars. Provided that the Minister may direct that any class of small manufacturer or producer selling his product exclusively by retail shall be exempt from payment of consumption or sales tax on goods manufactured or produced by him and persons so exempted shall not be given a license. Such exemption may be withdrawn by the Minister."

4. Resolved, That any enactment founded on the foregoing resolutions numbers one and two shall be deemed to have come into force on the eleventh day of April, one thousand nine hundred and twenty-four, and to have applied to all goods mentioned in the foregoing resolutions imported or taken out of warehouse for consumption on and after that day, and to have applied to goods previously imported for which no entry for consumption was made before that day; and that any enactment founded on the foregoing resolution number three shall come into force on the first day of July, one thousand nine hundred and twenty-four.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON (West York):

I rise, Mr. Speaker to move the adjournment of the debate, but before doing so I desire to make one or two observations. In the first place I want to congratulate the Acting Minister of Finance (Mr. Robb) on the very pleasing and friendly way in which he has discharged the duties which devolved upon him. He has been frank and I think he has made the best of an impossible job.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
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LIB

Jacques Bureau (Minister of Customs and Excise)

Liberal

Mr. BUREAU:

The job and the man are all right.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON :

I say that my hon. friend the Acting Minister of Finance has been frank. He has pointed out to us that in connection with a good many 'of the better showings that can be made, the activities of past years must be taken into consideration; he has been frank in showing that out of a debt reduction of $30,000,000 no less than $10,000,000 is due to the previous administration. He is frank also in pointing out that the surplus claimed is obtained by the elimination of obligations which we are now entering into, but absolutely real in view of the value of the investment and I call upon the Minister of Railways (Mr. Graham) for a corroboration of this-railway obligations to the extent of $/2,500,000, which we will finallv pay.

W hile my hon. friend has been brief in his statement, he has given us a lot of material which I think should be carefully considered, and I propose to move the adjournment of the debate, to which I think there is no objection, until Monday next, there being comparatively few members in attendance as a rule on Friday. Before submitting the motion I wish to point out one or two things that we on this side conceive should be looked into in connection with these budget propositions. The first thing that we look upon as essential in a budget at the present time is something which will enure to the benefit of Canada as a country rather than to the advantage of other nations; something which every patriotic Canadian will look upon as extremely necessary; something which would go far to stop the exodus of Canadian workingmen to the United States; something which will tend to change the present policy which however conceived will have for its inevitable result the expansion of the United States rather than the building up of Canada. That is one of the matters we shall give special attention to when studying these questions.

We also regard as essential the restoration of the purchasing power of the Canadian people as a whole. That is something which is of importance not only to the farming community but to every industry in the Dominion. We are wondering what is being done by this budget to check the exodus, and the admitted exodus, of 181,000 capable and educated Canadians, who paid their head tax and entered the United States. This startling disclosure is made by official returns. These men left Canada for the purpose of finding that work which was denied them in their own

The Budget-Sir Henry Drayton

country, that work which was denied them in the land of their birth. Now, we should like to find a policy adopted which would restore these 181,000 good Canadians to their native land and enable it to benefit from the resumption of their activities in the Dominion. Many of these men left Canada as a result of the closing down of our woollen factories. Many of them earned a livelihood of $29 a week; in mere labouring work others earned $23 a week. Reducing the amount lost to the low average earnings per capita of $1,000 a year one can see at a glance the great loss in the purchasing power of the Canadian home market on which at any rate the majority of our farmers depend. We have removed from that market a purchasing power of no less than $181,000,000, and we would expect something to be done in connection with the present budget to remedy that serious loss. We would further expect something to be done to help the Canadian farmer who to-day is shut out by an absolute barrier from his natural market to the south. Certainly the least we might expect is that something would be done to help him in his own market. Thus we would expect that the producer of cheese in Canada would have something done for him when we remember that the sales of American cheese in this Dominion have increased 86 per cent, while his own market has been cut in two. We would expect that something would be done for the great basic industry of agriculture, and especially for mixed farming the development of which my hon. friend the Minister of Agriculture (Mr. Motherwell) preaches so sedulously. We would expect something which would change the situation which permits American eggs to the amount of $2,416,000 to be sold in Canada, whereas the sale of Canadian eggs in the adjoining republic amounted to the small sum of only $49,000. We would also expect something to be done to help the vegetable grower of Canada whose market is encroached upon to a serious extent by products from the United States.

I do not know that we should expect impossibilities to be done by this budget,. That would be to restore to the industrial worker everywhere the confidence which he placed in the professions of faith of hon. gentlemen opposite in the Fielding-Laurier tariff which he desired. And at the same time the faith of the grain growers of the West that the Liberal platform of 1919 was seriously meant. Hon. gentlemen opposite have before them the task of reconciling these rival claims. We are going to consider the whole fiscal policy having regard to the doctrine preached by the Finance Minister (Mr. Fielding) last year that there

should be stability in tariff but stability looking to the expansion of all matters Canadian.

We have not the budget hefore us yet, but I want to make just one statement to the minister which is perhaps an answer to much that he has said in connection with traffic over our railways and the like, and that is simply this. There was a time when our railways in western territory were good assets, but we have got a return to-day by the Minister of Railways and Canals (Mr. Graham) showing how the earnings of the National system are made up. The hon. Acting Minister of Finance (Mr. Robb) talks about the great increase of industrial and agricultural activity that his measure will produce. Why, we have never had a bigger or better year, so far as volume is concerned, than the present year; and yet the whole earnings of all the western territories, the prairie provinces and British Columbia, for the last year amount to $72,000,000 and the operating expenses amount to $74,000,000; so that as a result, with the movement of the greatest crops we have ever had, we still have a railway deficit in actual operation in western Canada this yeai of $2,020,000. On the other hand, in Ontario and Quebec, in the central region of industry, the National Railways earn $127,900,000, with operating expenses of $109,212,000, a credit of $18,687,000. I hope a study of these resolutions that have been brought down will not result is this: That defenceless industrial Canada is further shackled, and that a complete Americanization of many lines of industry is made certain; that the exodus this year of 181,000 good working Canadians is to be indefinitely and permanently increased. We hope a study of these resolutions will not disclose these rasults. We fear it will, but we hope not. 1 beg to move the adjournment of the debate till next Monday.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
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LIB

William Lyon Mackenzie King (Prime Minister; President of the Privy Council; Secretary of State for External Affairs)

Liberal

Right Hon. W. L. MACKENZIE KING (Prime Minister):

In reference to the

motion my hon. friend has just made, as I intimated last night, it was the hope and expectation of the government that the debate would proceed this afternoon and continue until concluded. If, however, my hon. friend wishes a little longer time to prepare his speech, there will be no objection to the adjournment; I should have thought, however, that an adjournment until tomorrow would have been sufficient. My hon. friend has expressed a desire to have the debate adjourned until Monday, and if that is his wish of course we will accede to it. I would like to have an understanding with my hon. friend's leader as to what we may be per-

CJV.R.-Branch Lines

mitted to take up on Friday. If we accommodate my hon. friend's party, I hope he will extend a like accommodation to us. We would like to take up the Labour estimates on Friday, among other things, but there is a technical rule which would prevent us going into supply on Friday on the Labour estimates without the consent of the House. If the House is agreeable and will give us consent, we are quite agreeable to the adjournment.

Topic:   THE BUDGET
Subtopic:   ANNUAL FINANCIAL STATEMENT OF HON. J. A. ROBB, ACTING MINISTER OF FINANCE
Permalink

April 10, 1924