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usly charged these amounts, or _ 80ME ONE HAs SRAVDULENTLY CASNHED _nauthorised or forged cheques. Circumstances Jead me to the latter conclusion, as during the ears in which these erroncous charges occur Eue preparation and filling up of the cheques as done by an ofticer of the department who "Was hscharged from the service of the Govern-- ut since that time for incorrectness in deal-- with money matters entrusted to him. Mr. omle's statement also shows that between and 1870 the total deposits are short of goipts by $2,213. 'These are not ye; y locatacd. Further examination, which is now proceeding, I hops will show that this . discrepancy wm{e accowhited for without im-- I puting anything more serious to the officer responsible than careless inaccuracy. 1 should | have preferred that these latter discrepancies | shoulg have been deiinitely located before re-- | porting to the House, but, as' before s.tu-lcd, the auditor was only ahleo to report detinitely the amount of the discrepancy on the 9th inst., aud having discovered the inaccuracy in the balance heretofore carried into the public accounts, both he and I considered it our duty at the earliest moment to bring this to the at-- } tention of the House and placs the trug bank i balances in the statemeut of assets, as I have I now done. A SURP LUS OF ASSETS of $5,665,352. (Loud chgers.) Before leaving ) this branch of the subject it will be well, in connection with the drainage loans, to which {I have referred, to mention that under the Act reducing the rate of interest from 5 to 4 'pcr cent., 1 have caused calculations to be made in regard to every loan on the new in-- terest basis. Mon. Mr. KRoss then went on to explain that to arrange a system of annual payments, paying off the securities in the number of payments at first arranged, would require very elaborate calculations, such _ as mainy of the municipal clerks couldnotbe ex-- -- pecied to engage in. It was decided rather to . arrange for payments as provided in the by-- | E; law giving credit at the close of the transac-- | tion for the necessary deduction. He gave ' an example of a loan of $100 on which six payments had been made before the reduction of interest. The payments would continue, | but instead of twenty payments there would | | be eighteen full payments and $7 68 on the ' | nineteenth, that is, the debtor would be re-- ' | lieved of one payment and 32 cents on | gnother. Ho continued :--I am sorry, Mr. Speaker, that I am not able at the present time to report any definite steps in connection with the unsettled accounts be-- tweeu the Dominion and the Province. The absenee of the Finance Minister and Doputy Finance Minister in England since the closing of the House and aiterwards their engage: monts in connection with the Fisheries negotia-- tion has prevented thein from taking up this question. But though no definite settlement has been made we are not without some pro-- gress in the direction of a settlement,. We have removed some of the difficulties which stood in the way of a settlement. . One of these, between OUntario and Quebec, was the interpretation of the award in con-- nection with the Upper Canada improvement fund, a question in which a large number of the municipalities are interested. I may be permitted to fo over, to some extent, the same explanations have given before. One of the questions between Ontario and Quebec related to the Upper Canada improvement fund upon Crown lands. Quebec disputes the liability of the late Province of Canada. The posi-- 1 tion taken by Ontario is in the pos. --] session of the Houso _ in _ correspon-- --| dence already brought down. I need not 3 go into the history of the question, but I may _1 premise that the fund was created by Order in E'ouncil in 1853, and provided that one--fourth ~| of the school lands and one--fifth of the Crown lands should be set apart as an improvement --] fund for the construction of roads and bridges --! and local works in the counties and munici-- _| palities in which the lands were situated. _] Our contention is that the Order in Council of _| 1861, although it put an end to the fund so A far as future claims were concerned, did not put an end to it so far as related to collections already made. Mr. ROSS--About three years ago. I may say he is now in the civil service of the Do minion Government. _ (Great laughter aud cheers.) 'The liabilities of the Province at present payable include :--Balance due to miunigipalities in surplus distribution, $1,291 ; balance due municipalities re land improvement fund, $3,256 ; Quebec's share of the Common school fund, $379,71i. 'WFaking the liabilities from the assets, it leaves us with Hon. Mr. ROSS --From 1875 to 1879, in-- clusive. Mr. MEREDITH--What were the years in which these discrepancies appear? _ _ _ _ _ _ Mr. MEREDITH--When was this officer discharged ? % THE AMOUNT TN DIsSPUCTR between Ontarioand Quebecis$101, 781. Ontario asa Province has nothing to gain from a settle-- Mr. ROSS --These are the main questions. I will ask you now to consider the estimates for 1883.° For civil government you will see we ask this year 819?.195. against $191,675 last 'year, an increase of $5,460. This is necessary because of increase in the work, aud because experienced and valued officers expect increases in their salaries and these increases cannot well be avoided. -- For legisla-- tion we ask $122,050, as againsst $125,600, a decrease of $1,550. . For administration of justice the estimate is $364,296, while for a similar -- {service _ last _ year _ we | asked $2735,9605, m decrease of §$8,430. _ ;The principal points of reduction are Crown counsel $2,000, and for criminal justice $5,000. 'The estimate for education is $580,-- 062, as ngainst $575,258 last year, an increase of $4,600, of which $3,000 is for new and poor schools in the new districts and $1,500 in con-- nection with the High schools. For public institutions maintenance the estimate is $703,624, against $661,106, an increase of $42,500. This is consequent upon the com-- fletion and occupation of the new buildings at Jamilton and Oriilia for the insane and idiotic. For soveral years we have always ex-- pressed the hope that every new building we have erected would be enough to meet the re-- quirements of the insane for some years,. But as each building is completed the necessity seeins to springup for further accommodation, and that accommodation the Government feels itself bound to supply, as far as it is possible. (Cheers). -- Instead of $16,990 for immigration we ask for only $7,709, a reduction of $9,200. I think that reduction is in accordance with public sentiment. We propose to contine our operations to the maintenance of the sheds and the distribution of immigrants as they come. ment in connection with this fund, but, in the interests of the municipalities of Ontario, the Government feels it to be its duty to press the claim. It has been agreed to refer | the -- matter to-- the arbitration _ of judges. _ Eminent _ counsel are _ to . be ' employed by the Government, and I would | suggest that the municipalities should engage | associate counsel, so that there may be no ; question that the rights of the municipalities will be looked after. Another matter that is to be referred to arbitration is the liability in ; connection with the Common school fund. When we get these bad questions settled I think we shall have all difficulties removed. the distribution of immigrants as thcy come, For agriculture weask 8136. 131 as against$139,-- 886 last year, a reduction of $3,753. 1 may say that it will be noticed, nvcoxwling to the estimates, that reduction is mainly in counection with the grant to the Agricultural and Arts Association, that portion of the grant to assist in holding the Provincial Exhi-- bition. _ While the Government have not come to any definite conclusion as to whether that exhibition should be continued or not, we thought it best not to provide for it, but to take the sense of the House upon it whether the exhibition should be continued this year or not, _ There was considerable objection made lust year to the continuance of the exhibition. But it was urged with irresist:ible force, as it then seemed to me, that it _ should be _ continued for a year, as it was to be held in the castern part of the Province and ought not to be interfered with. The exhibition was held, as arranged, but was not a financial _ success, _ Regarding the hospitals and charities, in respect of which the estimate is $113,277, an increase as compared with last year of $7,155, that increase is maldle necessary by the increase of work done under the Act. For maintenance and repair _ of public -- buildings _ we _ ask this year $231,412, against $313,334 last IT TS IMPOSSIBLE To Fonksr® what progress contractors will imnake with the works they have in charge, and the only safe course, therefore, is to ask for what may com« plete the works, but as they arenot all completed within the year the appropriation is not used up. _1 do not know that there are other items to which I noeed speciaily reior, except that for statute consolidution. 'The amount we ask is §91 KAM cous l . L © _ Mr. MEREDITH--Aro these the only ques-- tions Quobec raises ? x w 4 Frgmtails lfi t ludifict ids d t lt c c a o tR a a o d 64 to which I noeed specially reior, except that for statute consolidution. 'The amount we ask is $21,500, which is the estimate for complecing the work. It may be of interest to know what amount has been expended upon that service up to the present time. Tho total ex-- penditure lhas booen $47 TAL im whin is .o _ the Canada / 1877 we asked | Clergy lands,.. |.] Common School lands Grammar School lands Woods and forests.... Subsidy...... Intorest on capital hold and debts due by the Do-- minion to Ontario. ... ... .$ Interest on investments o $2,938,724 5 $2,938,724 52 ; then there are certain statu-- tory expenses outside of the estimatres, namely, railway certificates $247,982, and annuities 352.205 ; so that the total anticipated expen-- diture is $3,238,906. Our estimated receipts for the next year are as follows :-- INSURANCK, It will be noticed that the item of insurance of buildings is not carried out? in the column of 1888. There is, no doubt, m difference of opinion as to the policy of a Governiment insur-- ing its buildings. The experience of a large number of _ years is necessiry for the formation of an accurate judgment; but when reasons are pretty well balanced, the introduction of a new element--uncer. tainty in collecting insurance--appears to de-- cide the question and to leave no doubt that the Government should not insure in the com-- panies, but should do its own insurance. Last year a portion of the main building of the London Asylum, described as a kitchen eand laundry departiment, was destroyed by fire. It was supposed by the Government that that portion of the building had been covered by insurance for the last twenty years ; but when a claim was made nearly all the companies disputed it on the ground that the building was not proRerly described as part of the main building, We concede that the com pavies are not acting as they ought to act in taking advantage of a technicality to refuse payment, and I think it only fair to mention the honorable conduct of the Hand--in-- Hand and Queen City Insurance Cos., who have {mid the claim. But if technical objec-- tions like these are to be taken when a loss occurs, the prudence of paying claims is very much to be questioned. _ Under these circumstances the Government have asked for an appropriation / for insur ance, and _ when the _ policies expire, the Government will do its own insurance. In t:(l'lrn'\or:_l"i'nnrv estimates we ask altogether for Mr. ROSS--No; the moral is that the hon. gentlemen's friends in Ottawa should amend their Order in Council so that the fines wiil go to the gencral funds of the Province, and the municipalities will only be asked to pay the difference, It may be said that the inuni. cipalities lose the revenue by the opera-- tion of the Act. Taking a close esti-- mate of the amounts received by the municipalities before the Act came into force, it may be estimated that they have lost $135,000. If we deduct from this their profit of $50,245, we find that their net loss is $84,755. The Government, on the other hand, has paid directly in cash $24,596, and they have lost in revenue $124,000, making a total loss to the Province of $148,596, against a loss to the municipalities of $84,755. The figures I have given, I think, show that the Domminion Government ought to amend their Order in Council so as to give the Province the fines collected, and let the difference be provided by the Province and the municipalities. lor @11,400, DUL Sent 924,09d. \¥e hear our Temperance (friends are finding faul; with the Government for not doing its duty in the enforcement of the Act. 1 think we can fairly point to our expenditure last year and to our proposed expenditure this year in answer to this. (Cheers.) 1 may say that the cost of the enforcement of the Act is much more onerous upou the Government than upon the municipalities, and yet it is the people of the _ municipalities who brivg _ the Act -- into force. It would be mug more _ reasonable that _ they _ shoula bear the brunt. (Cheers.) In fact the municipalities are making a direct profit out of the Act under the systeim which hands the fines over to theim,. The Government have some right to complain that when the Provincial Government agreed to assume the responsi-- bility of enfercing the Act, the Dominion Goy. ernment should place the fines so that they are not available for the administration of the law by giving thein to the municipalities, leay. ing the bulk of the expenditure upon the Province. 1 will give the House | a few figures to show the working of the' system. _ _ In 1887 the municipalities received | in fines $94,808. They were asked to contri.| bute their proportion of the expenditure, two.' thirds. 'This amounted to $44,563. Deduct.' ing that from the £94,808, the municipalities | are left with a profit during last year of $50,.| 245, ngainst a clear loss of expenditure by the , Government of $24,8596. | Mr. MEREDITH--Moral: pass the Act. (Laughter.) rown lands 'rov.m Lands Departmont : KSTIMATED RECEIPTS, 1 ESTIMATED RECRIPTS. $ 74,000 00 1,000 0) ' 16,000 0) + 2,000 0) 1,300,000 0J 279,111 10 40.000 0J 4,.095. . We 35. -- We liear finding fauly oing its duty 1 think we can last year and -- 1,339,600 0 $1,196,97 319,111 10