It appears therefore that the only alternative which now offers itself to the inhabitants of Lower Canada is a choice between dissolution pure and simple, or Confederation on one side, and representation by population on the other. And however opposed Lower Canada may be to representation by population, is there not imminent danger that it may be finally imposed upon it, if it resist all measures of reform, the object of which is to leave to the local authorities of each section the control of its own interests and institutions. We should not forget that the same authority which imposed on us the Act of Union, or which altered it without our consent, by repealing the clause which required the concurrence of two thirds of the members of both Houses in order to change the representation respecting the two sections, may again intervene to impose upon us this new change.

Her Majesty’s Government cannot but express the earnest hope, that the arrangements which may be adopted in this respect may not be of such a nature as to increase—at least in any considerable degree—the whole expenditure, or to make any material addition to the taxation, and thereby retard the internal industry, or tend to impose new burdens on the commerce of the country.

accustom the people to direct taxation

however, have said that they were in favor of direct taxation for the support of the local governments, because it would lead those who have to pay the taxes to look more closely into what was going on, and the manner in which their money was expended. (Hear, hear.) There seems also to have been a feeling in the Lower Provinces in favor of a legislative union, and the Hon. Mr. GREY seems to be combatting that idea. He says that with a legislative union, municipal institutions, and direct taxation in every province, would be the only means of getting along. He expressed himself as opposed to that and in favor of a Federal union, which he thought would afford them all the advantage that could be attained, commercially, by union, and would allow each province to retain control over its own local affairs. The local legislatures, he said, were to be deprived of no power over their own affairs that they formerly possessed. But in Canada it was represented that the local legislatures were to be only the shadow of the General Legislature—that they were to have merely a shadow of power, as all their proceedings were to be controlled by the Federal Government. That is the position taken by the advocates of the measure on this floor. So it seems that those gentlemen who have represented to us that they acted in great harmony, and came to a common decision when they were in conference, take a widely different view of the questions supposed to have been agreed upon, and give very different accounts of what were the views of parties to the conference on the various subjects. (Hear, hear.) In the Lower Provinces they were strongly opposed to direct taxation, while here it was present end as one of the advantages to accrue from the Federation. (Cries of No, no.) Well, Mr. SPEAKER, I say yes. That view of the case has been taken. If the amount allowed for the expenses of local legislation—the 80 cents per head—was found insufficient, the local parliaments must resort to direct taxation to make up the deficiency, while in tile Lower Provinces, it seems, nothing of that kind was to follow.

Another question on which the hon. member has also called us to account, relates to the export duties on timber and coals. In clause 29, which relates to the powers of the Federal Parliament, the third section reads as follows : This imposition or regulation of duties of customs on imports or exports, except on exports of timber, logs, masts, spars, deals, and sawn lumber from New Brunswick, and of coal and other minerals from Nova Scotia. The fact that this power has been conferred on the Government does not imply that it will be exercised. The power was granted simply because it might be necessary in certain cases mentioned. Now this is the reason for the second part of the clause which I have just read to the House, and which I cannot better explain than by citing some expressions of a speech by the Hon. the Minister of Finance on the subject. Nevertheless, as there are several honorable members in the House who do not understand English, I think it will perhaps be better to explain them in French. Here then was the thought of the Convention : as in New Brunswick the Government had found that it was a great disadvantage to collect the duties on timber according to the system formerly adopted, and they had substituted an export duty which superseded all other dues on that product, it was no more than right that this source of revenue should remain in New Brunswick, to which province it was an object of absolute necessity to defray its local expenses. In Canada we retain, under the new Constitution, our own method of collecting similar duties. As to New Brunswick, the duty on the article in question is their principal revenue, as coal is almost the sole revenue of Nova Scotia ; and if they had been deprived of them, they would have peremptorily refused to join the Confederation. (Hear, hear.) Their demand was perfectly just, and could not therefore be refused. Moreover, we have no right to complain, for they leave us all our mines and our lands, and we shall now, as heretofore, collect the proceeds for our own use and profit. The honorable member for Hochelaga says that it will be impossible to administer the affairs of the local legislatures without having recourse to direct taxation ; but a man of his experience ought not to have made that assertion. Instead of attempting to trade on popular prejudice, he ought to have admitted at once that the right granted by the new Constitution of levying direct taxes, is the same that already exists in the present Constitution ; it is the same right that all our municipalities possess.

reference to the meaning of the 5th sub-section of the 29th clause, which commits to the General Parliament ” the raising of money by all or any other modes or system of taxation.” Am I to understand that he General Government are to have the power of imposing local taxation upon the lands of the provinces ? HON. MR. CAMPBELL—The general national power of taxation is to be in the General Government.

Let us then have direct taxation, and what will be the result ? If there is a large expenditure on the part of the General Government, in addition to this taxation, political agitators will arise, who will cry out that the public burdens are unequally borne —(hear)—that two-thirds of the revenue is borne by the people living west of Quebec— that is, the population west of this city will, man for man, pay twice as much to the public exchequer as the population east of it.

system of taxation, my honorable friends opposite would have had a much better chance of success in blowing the bellows of agitation than they now have. (Laughter, and cheers.) The objection, moreover, was not confined to Lower Canada—all the Lower Provinces stood in exactly the same position. They have not a municipal system such as we have, discharging many of the functions of government; but their General Government performs all the duties which in Upper Canada devolve upon our municipal councils, as well as upon Parliament. If then the Lower Provinces had been asked to maintain their customs duties for federal purposes, and to impose on themselves by the same act direct taxation for all their local purposes, the chances of carrying the scheme of union would have been greatly lessened. (Hear, hear.) But I apprehend that if we did not succeed in putting this matter on the footing that would have been the best, at least we did the next best thing. Two courses were open to us—either to surrender to the local governments some source of indirect revenue, some tax which the General Government proposed to retain,—or collect the money by the federal machinery, and distribute it to the local governments for local purposes. And we decided in favor of the latter. We asked the representatives of the different, governments to estimate how much they would require after the inauguration of the federal system to carry on their local machinery.

I trust I commit no breach of discretion in stating that in Conference I was one of the strongest advocates for defraying the whole of the local expenditures of the local governments by means of direct taxation, and that there were liberal men in all sections of the provinces who would gladly have had it so arranged. But, Mr. SPEAKER, there was one difficulty in the way—a difficulty which has often before been encountered in this world—and that difficulty was simply this, it could not be done. (Hear, and laughter.) We could neither have carried it in Conference nor yet in any one of the existing provincial legislatures. Our friends in Lower Canada, I am afraid, have a constitutional disinclination to direct taxation, and it was obvious that if the Confederation scheme had had attached to it a provision for the imposition of such a

the second feature of this scheme as a remedial measure is, that it removes, to a large extent, the injustice of which Upper Canada has complained in financial matters. We in Upper Canada have complained that though we paid into the public treasury more than three fourths of the whole revenue, we had less control over the system of taxation and the expenditure of the public moneys than the people of Lower Canada.

But, sir, I am told that though true it is that local matters are to be separated and the burden of local expenditure placed upon local shoulders, we have made an exception from that principle in providing that a subsidy of eighty cents per head shall be taken from the federal chest and granted to the local governments for local purposes.

constitution of the Legislative Council, and insisted not only that it should have remained elective, but that the principle of representation according to population should also have prevailed. But who ever heard that in a Federal Constitution the Upper House should be arranged on that principle? If that view be the sound one, the better way would be to have but one House, for the only effect of having two Houses, both elected on the basis of population, would be that one would constantly be combating the other, and the wheels of government would unavoidably be brought to a stand-still. In such a case the more powerful members of the Confederacy would be wholly unrestrained, and would completely overwhelm the weaker. This was fully considered on the adoption of a Constitution for the United States, according to which it is well known that the smaller States are represented in the Senate by the same number of senators as the larger ones—there being two members for each. The same principle has been adopted in arranging the terms of this proposed union, and for the same reason; viz., to protect the weaker parties to the compact.

direct taxation, all the means whereby the industry of the people may be made to contribute to the wants of the state, it must be evident to every one that some portion of the resources thus placed at the disposal of the General Government must in some form or other be available to supply the hiatus that would otherwise take place between the sources of local revenue and the demands of local expenditure. The members of the Conference considered this question with the most earnest desire to reduce to the lowest possible limits the sum that was thus required, and I think the figures that I have already given to the House afford the best possible evidence that no disposition existed, at any rate on the part of our friends from the Lower Provinces

If, nevertheless, the local revenues become inadequate, it will be necessary for the local governments to resort to direct taxation ; and I do not hesitate to say that one of the wisest provisions in the proposed Constitution, and that which affords the surest guarantee that the people will take a healthy interest in their own affairs and see that no extravagance is committed by those placed in power over them, is to be found in the fact that those who are called upon to administer public affairs will feel, when they resort to direct taxation, that a solemn responsibility rests upon them, and that that responsibility will be exacted by the people in the most peremptory manner. (Hear, hear.) If the men in power find that they are required, by means of direct taxation, to procure the funds necessary to administer the local affairs, for which abundant provision is made in the scheme, they will pause before they enter upon any career of extravagance.

But this precedent could not be urged as an objection to Federation, inasmuch as it would be for the General Government to deal with our commercial matters. There could be no reason for well-grounded fear that the minority could be made to suffer by means of any laws affecting the rights of property.

the Central Government would have the power of raising money by all the other modes and systems of taxation—the power of taxation had been confided to the General Legislature—and there was only one method left to the Local Governments, if their own resources became exhausted, and this was direct taxation.