Act. What he desired to know was whether all the balance of the Government in the Banks were to be so considered, or whether he proposed to specialize certain balances as available for that purpose. He could understand the desire of the hon. gentleman to have a large balance at his credit at the Bank of Montreal, awaiting disposition for various purposes. He would like to know whether he contemplated using, or having the power to use such balance as the basis of issue of currency. If such were the case he could see a practical objection. The issues would be large when money was plentiful, but the moment the demands of Government required the use of those funds the hon. gentlemen would have to tighten the money market by calling in the issues. Hon. Sir FRANCIS HINCKS explained that there was no danger. It might occur were the Government able to expand the circulation, but it was to be observed that the circulation could only be expanded through the instrumentality of the banks. The Government had never issued a single note other than at the request of the banks. If the banks wanted notes they applied for them, and of course when they got them, the Government had to keep a specie reserve of 20 per cent., and as far as he was concerned he had no hesitation in saying, he thought that while he occupied the position he did, he should unquestionably keep a reserve of twentyfive instead of twenty per cent. so that there would be a margin of five per cent. for fluctuations, which constantly occur in circulation, but the Government had no desire to extend the circulation. His hon. friend wanted to restrict the money which they had in the banks because he feared it would be made the basis of an expanded circulation. Although the proposed amendment would be more advantageous to the banks than the present arrange ment he was quite sure they (the banks) would not circulate one dollar of Government money if they could circulate their own. Mr. ANGLIN thought the matter should be fully discussed. The intention of the Act now in the Statute book was to limit the circulation to $9,000,000, beyond which, dollar for dollar should be held in gold. As he understood it, the Government wanted unlimited power to circulate. He considered that the proposition was for the benefit of the banks, and particularly the Bank of Montreal, and if any benefit was to be derived from the increased circulation, he thought the public should have it. He suggested that the larger notes should be withdrawn and smaller ones issued. Mr. WORKMAN considered the measure was one required by the country, as he knew from personal experience both as a merchant and banker, that small notes were very difficult to get, not only in trade, but mechanics and others found great difficulty in getting them. He could see no objection to, but on the contrary, thought the measure should pass. MACKENZIE, explained that there was Hon. Sir F. HINCKS, in reply to Hon. Mr. at present no inducement to banks to circulate small notes, but if the proposed the interests of the banks to co-operate amendment was passed, it would be to with the Government in the circulation of small notes. cautioned the Mr. CARTWRIGHT House against authorizing too large a circulation, which the Government might be called upon to redeem at any moment should a financial crisis occur. Hon. Sir F. HINCKS did not see the slightest necessity for the apprehensions expressed by his hon. friend. The banks were bound by law to hold half their reserves in Dominion notes, and they were held chiefly in large notes. Considering the extent of the Dominion over which the notes not circulated the Government could hardly be called upon at one time to redeem the whole of them. And they could get any amount of gold they might require from New York in twenty-four hours. With regard to the Savings Bank deposits, there was not the slightest danger of a run upon the Government. His constant aim since he had held office, had been to six to a five per cent interest, and he had reduce the debt of the country from a getting interest on $7,200,000, and he did partly succeeded in so doing. They were not think it prudent to go beyond $9,000,000 of securities. He merely asked to treat the deposits in the Bank as equivalent to gold. Mr. M. P. RYAN complimented the Minister of Finance on his successful po licy, and attributed the increased circulation to the withdrawal of specie, particu larly American silver, amounting to over $6,000,000, which was greatly appreciated by all the country. He should support the amendment. Mr. GIBBS did not see there was any material change to be introduced except to enable the Minister of Finance in his returns to act in accordance with the Act. At present the Act was not prejudicial, but such might not always be the case and he thought there should be no desire to embarrass the Minister of Finance in carrying out the Act. The country certainly required a larger circulation of small notes, and if the Government acted in good faith no harm could result. Hon. E. B. WOOD said it appeared that the Act had worked well, that the public had confidence in the Act, and that the Government had carried out substantially the provisions of the Act to the extent of the issue of $4,000,000, while the country was secured, the Go. vernment got the use of $9,000,000 without paying interest, and therefore the country gained. It was now found that in the interest of the country the banks required a larger circulation, and if the Government proposed to give the same security as for the $9,000,000 already authorized that security would have been good. Hon. Sir FRANCIS HINCKS desired to explain the matter, so that the Committee might understand it. The Government were now getting the interest on $7,200,000, and if he thought it safe to increase that amount he would propose to do so, but he did not. He showed that on a certain date, though the Government had nearly $1,000,000 in gold in excess of the 25 per cent. of the circulation they were compelled to hold, yet the terms of the Act had obliged them to withdraw $200, 000 of the circulation, and it was to meet this difficulty that the proposal was made. He knew that a greater circulation in small notes was needed, but that was not the immediate cause for the resolution, but it was to do away with the difficulty that had arisen, and he was sure that it was in the interest of the Government and the public that the resolution should pass. The resolution was then passed. Hon. Sir FRANCIS HINCKS then moved that it is expedient to consolidate Acts respecting Public Debt and the raising of loans so as to make one Act applicable to all future loans, and amend the same by enabling the Governor in Council, in raising any loan hereinafter authorized, to establish a sinking fund not exceeding one half or one per cent per annum for paying of the same, and to change the form of any part of the funded debt by substituting one class of securities for another, provided the annual charge for interest be not increased, and to effect temporary loans for a limited time, and at a limited rate of interest in cases of temporary deficiency in the consolidated revenue fund to meet the -harges on it. He said the object was that, whereas ac Mr. SPEAKER also reported a message. from the Senate appointing Committees to act with the House of Commons with regard to library and printing. Mr. WALLACE (Vancouver Island) asked whether the Government intended to appoint during the present year an officer or officers to administer the Indian affairs in British Columbia. Hon. Sir GEORGE CARTIER replied in the affirmative. Mr. WALLACE (Vancouver Island) asked whether it was the intention of the Government to employ an armed vesssel to cruise in the waters of British Columbia for the protection of outlying settlers against depredations by the Indians, and at the same time to assist in the suppression of the present illicit and pernicious traffic in alcoholic liquors among the Indian tribes. Hon. Sir GEORGE E. CARTIER said the Imperial Government had provided a vessel for this purpose, and consequently there was no necessity for the Canadian Government to do so. Hon. Mr. BLANCHET asked whether it was the intention of the Government to fix the terminus of the Intercolonial Railway at Levis, opposite Quebec, constructing a branch line from St. Charles, County Bellechass, through the parishes of Beaumont and St. Joseph de Levis. Hon. Mr. LANGEVIN replied that the Government could not state their intention on the subject until the Intercolonial was completed. moved for a return of the cases decided by Mr. MACDOUGALL (South Renfrew) the Dominion Board of Arbitrators since Confederation. Carried. The House then adjourned at 9:35 5 p.m. The following petitions were read: Of Messrs. J. B. Osborne and Son, and others of Beamsville and elsewhere in the Province of Ontario. Of Messrs. Domville and Co., and others of the City of St. John, in the Province of New Brunswick. Of Thomas E. Grindon, of the City of Saint John, in the Province of New Brunswick, aforesaid. Of W. H. Howland and others of the City of Toronto, and of the Saint Lawrence and Ottawa Railway Company. Of the Great Western Railway Company, and of the Detroit River Tunnel Company. Of the Board of Trade of the City of Montreal, and of R. J. Reekie and others of the Dominion of Canada. COMMITTEES. Un motion of Hon. Mr. SEYMOUR, the quorum of the Committee on Contingent Accounts was reduced to 9. On motion of Hon. Mr. SANBORN, the quorum of the Printing Committee was reduced to 9. Hon. Mr. HAZEN, from the Committee on Standing Orders and Private Bills, reported favourably on following petitions: Of Sir Hugh Allan, President of the Montreal Telegraph Company, praying for certain amendments to their Act of Incor poration. Of E. Martineau, Mayor of Ottawa, and others of the same city. praying to be incorporated as "the Quebec Pacific Railway Co." Of the Grand Trunk Railway Company of Canada; praying for the passing of an Act to legalize a certain agreement between the said Company and the International Bridge Company, and for other pur poses. Of Sir Hugh Allan and others of the City of Montreal; praying to be incorporated as "The Canada Railway Equip. ment Company." Of John H. Gray, of the City of Ottawa, and others of the City of London, England; praying for the passing of an Act to incorporate "The Thunder Bay Silver Mines Telegraph Company." Also praying for the passing of an Act to incorporate "The Thunder Bay Silver Mines Railway Company," And also praying for the passing of an Act to incorporate "The Thunder Bay Silver Mines Bank." the City of Hamilton, praying to be incorOf D. B. Chisholm, Mayor, and others of porated as "The Bank of Hamilton." DIVORCE. ST. LAWRENCE NAVIGATION. Hon. Mr. LETELLIER DE ST. JUST gave notice of an enquiry with respect to the improvement of navigation on the Lower St. Lawrence, and in doing so called the attention of the Minister of Marine and Fisheries, to the difficulties and loss of life that occurred last fall. Very many vessels had been lost, some of them of been lost had it not been for the humane large size. And more lives would have exertions of the inhabitants on the banks who went out in their small canoes at a great risk. The Government should either have a tow-boat or encourage others to have such facilities for saving life and when the late season arrives and casualties property on the St. Lawrence, especially are most likely to occur. Hon. Mr. MITCHELL replied that the Government, like his hon. friend, had deeply regretted the casualties last year, but it would be remembered that the severe weather had set in remarkably early, and taken shipowners by surprise. He had looked with much interest on the highly praiseworthy exertions made by the habitants to save life and property. The subject to which the hon. gentleman had called attention had been brought to the notice of the Government, and was now under its consideration. It should be remembered that there was a very etticient Tug-boat Company on the river, and the Government felt that they should not interfere with private enterprise when it was energetically carried on. The plan laid down by the Government was not to compete with private enterprise, but rather to step in and give their aid when that private enterprize was not in a posi tion to afford the requisite succor. Charges had been indeed brought against the Government that they had allowed their steamers to go down and perform the work under peculiar circumstances. It had been his delicate duty to know where to draw the line. JUDGES' SALARIES. Hon. Mr. MILLER said that the enquiry which he was about to make, was similar to one he had made last session, when he was sorry to say the response had not been satisfactory. He could not un derstand why the distinction between the salaries of the Superior Court Judges in the different Provinces had not been removed long before this. It might be said that when the Maritime Provinces came into Confederation, their salaries were not so high as those of the Judges in the Upper Provinces; but he did not think that argument at all met the case. Before Confederation the Lower Provinces had a right to pay what they chose, but now they were called upon to provide for the higher salaries in the upper provinces, whilst the remuneration of their own judges remained unchanged. It must be remembered, too, that the cost of living in the Lower Provinces, especially in Halifax where all the judges except one resided, was increased some forty or fifty per cent., and it was unreasonable to expect that the salary of eight or ten years ago would be sufficient for the same class of persons at the present time. In Nova Scotia the cost of the administration of justice was far less than it was in any other province. Her judges were called upon to do duty which is performed by judges of Inferior Courts in the other sections of Canada. That province had no County Judges as in New Brunswick and Ontario, or District Judges as in Quebec. That province had before the Confederation a duty of 10 per cent. ad valorem, whilst Canada had 15 per cent. ; but was it any argument to say that the ten per cent. ought to be continued. Nova Sco. tia had no stamp duty, like Ontario or Quebec. It was no argument to say that it would be, therefore, unfair to impose this taxation. So with respect to postage on newspapers. In all these cases the taxation of the Lower Provinces had been brought up to that of Canada, and he could not understand why the salaries should not be equalized on the same principle. With these remarks he asked: Whether it is the intention of the Government to introduce a measure during this Session to reduce the salaries of the Judges of the Supreme Courts in Ontario and Quebec to a level with those of the same officials in the Maritime Provinces, or otherwise to remove the distinctions now existing in regard to the payment of these officers' and the regulation of their retiring allowances? Hon. Mr. CAMPBELL replied that the salaries in the various Provinces had been continued as they were before Confedera tion, with the exception of a certain increase made to the judges in the Lower Provinces. It should be known, however, that there was a considerable discrepancy between the salaries of the judges of the superior courts of Ontario and those of Quebec; and it was inevitable because the systems were different. Taking, however, the average of the salaries paid in the Province of Quebec, there would not be found much discrepancy between them and the amount given to the judges of the Maritime Provinces. He acknowledged that there was considerable force in the remarks with respect to the contributions made by Nova Scotia and New Brunswick, but at the same time one was bound to consider the nature of the duties perform ed, and their relative importance. He would also confess that the cost of living had greatly increased throughout the Dominion, in Ontario as well as in Nova Scotia; and he thought another Parliament would undoubtedly have to deal with the question of remuneration to all the officers throughout the country who are working in the interests of the public. In reply, however, to the inquiry of the hon. gentleman, he would say that it was not the present intention of the Government to remove the distinction to which reference had been made. Hon. Mr. LETELLIER DE ST. JUST said that if he occupied a responsible position like gentlemen opposite he would not wait until another Parliament to increase what he honestly believed was an inadequate salary. Hon. Mr. LOCKE-Are not the salaries in Ontario higher than those in the other Provinces? Hou. Mr. CAMPBELL-They are some. what higher. Hon. Mr. WILMOT referred to the increase in the cost of living within the past ten years, and the propriety of equalizing the salaries of the Judges, especially in view of the large contribution to Customs by the Maritime Provinces-larger in proportion than that made by the old Province of Canada. He could not understand why such a distinction should be made in the case of men so highly qualified to fill the position as were the Judges of the Maritime Provinces. Hon. Mr. MITCHELL agreed with the remarks of his hon. colleague that the question of salaries might have to be dealt ment of that region can be satisfactorily carried on, and future litigation avoidwith in another Parliament. ed? Hon. Mr. LOCKE was curious to know whether there was to be a radical change in that new Parliament to which reference was made (laughter). STATUTES. The House then went into Committee, Hon. Mr. Hamilton in the Chair, and pass. ed the Bill with respect to the custody of the Statutes of Canada, MESSAGE. Hon. Mr. CAMPBELL announced a Message from His Excellency graciously acknowledging receipt of the Address of the Senate. The House then adjourned. HOUSE OF COMMONS. seconded by Mr. Mr. HARRISON also moved for leave to introduce a Bill to amend the Act relating to the carrying of dangerous weapons. Read a first time. Hon. Sir FRANCIS HINCKS submitted certain statements concerning claims for losses by the rebellion in Manitoba, and a statement of the affairs of the Bank of Upper Canada. Mr. HARRISON introduced a Bill to ex. tend the right of appeal in criminal cases. Read a first time. QUESTIONS BY MEMBERS. In answer to Mr. HARRISON, Hon. Sir F. LINCKS said after the proceedings of last session it was not the intention of the Government to recommend the placing of duties on flour, wheat, corn, &c. Hon. Mr. GRAY-Whether any arrange. ment has been come to between the Dominion Government and the Ontario Gov ernment, pending the investigation into the difference as to the Western bounds of Ontario, touching the mining rights, or the granting the Letters Patent in the disputed territory, whereby the develop Hon. Sir JOHN A. MACDONALD said there had been correspondence on the subject of the boundary line, which Government intended to bring down, but no question had been raised as to the mining rights. Hon. Mr. GRAY-Whether any steps have been taken by the Dominion Government to determine the exact position of the boundary line at the N. W. angle of the Lake of the Woods, so as to prevent future difficulties with the United States relative thereto ? Hon. Sir JOHN A. MACDONALD said that a Commission would be appointed for the purpose. Mr. FOURNIER-Whether it is the intention of the Government to take any action to compel the Hon. Judge Bosse, appointed to perform judicial functions for Districts of Montmagny and Beauce, to comply with the order of the Government of Quebec, dated 7th April, 1869, directing him to reside at St. Thomas de Montmagny, and ordering him to establish his domicile there as soon as possible. Hon. Sir JOHN A. MACDONALD said the matter rested with the Local Government, and it was only, in case of impeachment, that the General Government could interfere. No petitions had been presented to Parliament. Mr. GODIN-Whether it is the intention of the Government to issue regulations for the protection of fish in the inland lakes and rivers an i to grant licenses for fishing in these lakes and rivers under such suitable restrictions as will prevent the dein them, and struction of the fish be granted whether permission will to Canadians to exercise this branch of industry to their own profit to the exclusion of foreigners, or whether leave will be given to foreigners to engage in the business concurrently with Canadians? Hon, Dr. TUPPER-It is the intention of the Government to issue regulations so far as Canadians are concerned, but it is not the intention to grant concurrent privileges to foreigners. Mr. GODIN-Whether it is the intention of the Government to pay the claims that have been sent in to it by hotel keepers and waggon owners, who have boarded or provided transport for the Volunteer Force, or have rendered it other services during the Fenian invasion of 1870. and whether it is the intention of the Government to oblige those Officers of the Volunteer Force, in whose hands the |