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90 'The first corporation upon which the bill proposed to rest a, burden was the chartered banks The Government re- cognized what a great work the chart- ered banks had performed in 'the de. velopment of Ontario, and wished them all prosperity. The taxation imposed on these Institutions would be one- tenth of one per cent. on the paid-up i~apital stool: pf the bank up to 32.000.- 000. A chartered bunk with a capital of $2,000;000 and no more would, therefore. under the provisions of the bill, pay $2.000. There was. however. one bank in the Province with a paid-up capital of $6,000.000, and another with n paid-up capital or81'2.,000.000. In view of thiv very large capital a graduated tax was preferable. and the bill provided that an additional tax of $25 should be levied upon every $100,000 in excesg of $2,000,000 and pot exceeding $8,000,000, and $15 for every 8100.000 or fraction thereof. of un- paid stock over $6.000.000. In addition the banks would be required to pay $100 for every head office and $25 for web additional branch ott1tte transavting business in the Province. " am glad to be able to say." here observed Mr. Harcourt. "coming hack to the basis of taxation. that the banks approve of this bill, that the parties in- terested say that it is the better basis, tho preferable basis. The banks not only approve of the basis of taxation, but they approve of the whale bill as it concerns them." Hon. Mr. Hurcrruri---T will tell my hon. friend in a moment how they approved ot it. This Government has. consulted no corporation, this Government has no special alliance or affinity with any corporation, but each corporation af- fected had interviewed the Government and had indicated. Without knowing the contents of this trilr---(Ministerial hear. her.rs)-without knowing its provisions, what their views were. Mr. Wardell-i-Why did they do that '? Hon. Mr. Harcourt-My hon. friend is not as dull as he would have this House believe. In their conference-dt I might use the woid-or rather in their inter- views with the Government, in making their statements they indieated--and the Attorney-General was very care- ful that no indication should come from him to them-rwhat they thought would be a reasonable basis.. a reasonable measure of taxation. Why would they do that 't asks my hon. friend from Wentworth. The reason isso plain that I wonder he asks the question. Leading banks in this city have been paying a tax like that imposed by this bill in a sister Province. More than two banks Mr. Foy here made an observation which was inaudible to the Govern- ment side. and the Provincial Treasurer expressed the desire that his hon. friend would repeat it. would repeat it. Mr Foy---r simply made the observa, tion, and I willingiy repeat it, that seemingly the banks have been consult- ed as to this measure before this House was. Hon.Mr, H.attoupt---T m_very glad my hon. friend made that observation. It is as far 'from the truth as pole is from pole. Mr. For-How, then, did they approve otthe measure ? The Chartered Banks. The Banks SatistiiNt. "iiil.riillii"ieson- With reference to the taxation on banks, does it affect re- serves ? _ _ - in this city have been paying a similar tax in Chicago and New York for years. and therefore in the remarks they ad- dressed to the Government they would make observations concerning the tax they paid elsewhere, and by a very easy process of inference I am glad to be able to say to this, Howie that 1 know tho banks consider this 'blll, so far as it mneerns them, as a moderate and lib- eral measure, ot which they all ap- prove. Mr. Warden questlbned the Provincial Treasurer as to whetherhe had under- stand the latter to say that the banks had approved of the whole bill. Hon. Mr. Harcourt replied that he was responsible for hls own statements, but not for the hon. gentleman's un- dorstandlng. Hon. er. Harcourt-The question of reserves does not come in. But to con- tinue. My hon. friend from Wentworth will, I know, apart from the little heat he has at present displayed, welcome as a patriotic citizen any measure when he is assured the parties interested themselves approve of it. They approve ot it because it is moderate. and be- cause they believe that when additional' revenue is required they shoulq gladly and willingly pay their share of that additionalreVenue. _ New York has long taxed banks one- half of 1 per cent. on the capital in- vested in their business, and other States have also taxed the capital stock. These are not the only States to do so. as a tax on banks is one of the Lest known taxes in the history ot the whole country. Our own banks doing business in New York and Quebec have been paying special texe-taxes larger than those whicli- this bii1.itttpotses. They have not found fault with the Quebec tax. They..did not complain of the tax, but simply asked. "Will it be equitable '."' Pennsylvania received $600,000 and Massachusetts $966,000 from these banks in taxes last year. The foundation principle of the bill is abil- ity to pay, and in Support of that argu- ment he .quoted _ from the re- uirns showing the progress of the banks during the past ton years as follows :--Paid-up capital increased from $60,000,000 to upwards of $63,000,000; reserve funds. $19,000,000 to $28,000,000. an increase of nearly 31,000.- 000 a year. The deposits (other than Government deposits)'had also increas- ed during tho same period by $125,000.- 000. But more striking figures could he given of tho growth. In 1888 only one bank had a reserve equal to 76 per cent. of its capital: now two banks lune a reserve equal to 78 per cont. ', only five then had a reserve equal to 50 per cent . and now fifteen have that proportion of reserve to capital. The record of tho dividends paid during the period refer- red to were also quoted as additional proof. The success was attributable largely to the'fact that our bank. sys- tem is one of the best. if not the best. in the world, and the Managers are ef- tteient and able. He anticipated that the bill would yield in the-neighborhood of $40,000 from the banks.