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"The growth of the rural service is indicated by the fact that in 1922 there were 441 miles of rural line. This mileage had increased to 8,196 miles in 1931; 2,226 rural customers were served in 1922, and approximate-- ly 56,000 in the year just past. "The capital investment on the Provincial Hydro System increased from $163,964.840 in 1922 to $265,-- 000,000 in 1931, and the investment of the municipalities increased from $53,583,400 in 1922 to $105,000,000 (estimate) in 1931, a total investment on the part of the municipalities and the Province in this great public ownership enterprise of about $370,-- 000.000. "Net advances to the Hydro--Electric Power Commission on the part of the Province as of Oct. 31 last were $188,-- 8177,180.39. These advances are made by the Province to the Commission at the net cost of the money to the Prov-- ince. The Commission has thus had the advantage of low interest rates on its invested capital. These low in-- terest rates have in turn been reflect-- ed in what may safely be said to be the lowest rates for electricity obtain-- able anywhere in the world for service supplied under similar conditions. Development Board. '"The Provincial Savings Office is now serving approximately 90,000 in-- dividual depositors; 19,394 new de-- posit accounts were opened during the year, and the year's business shows an increase in deposits of $3,548,.725. The various branches handled a volume of business during the year in excess of $61,000,000, and total de-- posits reached a new high level in the amount of $26,855,844. "The Savings Office made a profit on the year's operations amounting to $25,026--more than double the profit of the previous year; $678,153 was paid to depositors in interest during the year, and the surplus account now stands at $211,802. Old--Age Pensions. '"Up to the present time five Prov-- inces in Canada have adopted old-- age pensions. "In Ontario, as of Oct. 31 last, the number of pensioners on the roll was 40,401, and the total amount paid in pensions for the fiscal year was $8,-- 765,049.23. The Province's propor-- tion of this expenditure was $2,945,-- 853.26, and the municipalities con-- tributed $1,511,310.74. "The percentage of population over 70 years of age, by Provinces, is as follows: Alberta, 1.17 per cent.; British Columbia, 1.84 per cent.; .. on claims in Schedule 1 was $24,317,709.33, earning an average rate of interest of 5.322 per cent. Schedule 2 funds invested amount to $3.453,-- 005.45, and had an average interest earning of $5.81 per cent. for the year 1931. | "The facilities offered by the Agri-- cultural Development Board of the Province were availed of by agricul-- turists during the year in 3,361 new loans, in the amount of $8,041,838.44, and the amount of the outstanding loans as of Oct. 31, 1931, was $35,-- 450,646, as compared with outstanding loans at Oct. 31, 1930, in the amount of $29,442,986.90. Hydro Affairs.: "The steady growth of the opera-- tions of the Hydro--Electric Power Commission during the past ten years is shown by the following statistics: In 192% the peak load carried was 605,000 norsepower. In 1930 the peak load was 1,425,991 horscpower, and in 1931 this peak load rose to 1,520,989 horsepower. The figure for 1930 has been corrected so as to include umc Dominion Power and Transmission Company's plants. it 'Sinking Fund invested at the .X the year to cover annuities, "Under the Mothers' Allowances Act, there were 5,997 beneficiaries, and 18,036 children benefiting by the allowances under this act, in a total of $2,582,251.41, of which amount the municipalities contributed $1,185,-- 8$18.20 and the Province the balance. The average of the monthly allow-- ances is $36.72 and the cost of ad-- ministration $3.31. d o 70 years receiving pensions in every other Province is much in ex-- cess of the percentage in the Prov-- ince of Ontario. "The percentage of those over 70 years of age receiving pen-- sion, by Provinces, is as follows: Al-- berta, 50.67 per cent.: British Co-- lumbia, 54.84 per cent.: Manitoba, 58.25 per cent.; Saskatchewan, 66.32 per cent.; Ontario, 34.56 per cent. "It will be noted from these figures that the percentage of those over "Twenty--one per cent. of the cards received mentioned the courteous treatment received from Ontario peo-- ple--police and customs officers in particular; and 29 per cent. com-- mented on the excellence of our roads. Other outstanding remarks were the prosperous appearance of our country and the beautiful scenery our Prov-- ince had to offer, A great impetus to the Northern flow of tourists will be gciven by the completion of the trans-- Canada highway, the most northern transcontinental road, and one that will equal in scenic beauties any of the older lines of travel. "In the year 1931 there was expend-- ed on all road construction, including the King's Highway, colonization roagds and roads in Northern, Ontario, the sum of $28,741,118.45, capital and ordinary. Comparing currernt expen-- diture on highways with curzent reve-- nue for highway purposes for the year 1931, the figures are as follows: Main-- tenance, $6,621,440; interest, $8,253.-- 787; Gdebt retirement based on 20 years, $4,992,319; total, $19,867,546. repayment, $399,692; total, $16,960,780, or 85.3 per cent. of the current ex-- penditure. _ f "Our King's Highways are main-- tained to a very high standard as to surface, grades and curves, and in addition to the benefits of a high-- class road system for the citizens of Ontario, our investment in highways indirectly is of very substantial bene-- fit through the tourist traffic it cre-- ates to the Province as a whole." _ Manitoba," 1.68 per cent.: Saskatch-- ewan, 1.17 per cent.; Ontario, 3.48 ber cent. --_"The current revenue for the same year was: Motor vehicle and gas tax, $16,561,.088: county and suburban area 2 Responsibilities resting on the Pro-- Mar 12 . "As far back as October last," Mr. Dunlop continued, "the Province con-- sidered going into the market for $20,000,000, and arransements were being made to float ar issue imme-- diately after the British elections,. provided the results of that election were favorable to the MacDonald Government. It was thought that in this eventuality the bond market would improve, but at the request of the Premier of CanaCa, who was anxious that no other major financ-- ing should interfere with the National Service Loan, then contemplated, ne-- gotiations for our loan were tempo-- rarily discontinued. The Governmen;, however, after that time, kept closely in touch with the market, and the rates of interest as finally determined for the Provincial loan, at 5.90 per sent. on the long--term loan and 6 per cent. on the short--term loan, were only arrived at after consultation with rep-- resentatives of banks, bond houses and men who were well versed in Cana-- dian financial affairs. Financiers both in Toronto and Montreal, were consulted. '"While on the subject of loans," he added, "may I say a word with refer-- ence to the $25,000,000 loan which the Province filoated in January of the present year, Some eriticism has been made as to the rate of interest paid by the Province on this particular loan, and statements have been made, editorially and otherwise, that this loan could have been filoated at a lower rate; that the Province estab-- lished a 6 per cent. rate, and ty rea-- son of its action had enhanced the cost of money to municipalities, These statements are all absolutely errone-- ous, and made without the knowl-- edge and full consideration of the situation. Largely because of the success of the $25,000,000 issue, he went on, the Province was able to renew $16,000,-- 000 in short--term loans which ma-- tured in New York in February. Mr. Dunlop declared that, with possibly one exception, we were the "first for-- eign Government which had been able to menew a loan in the New York market since England abandoned the gold standard in September last." He was satisfied that this result could not have been achieved had not the $25,000,000 loan issue been so prompt-- ly oversubscribed. The success of recent loans was stressed also by the Provincial Treas-- urer, who remarked that a $30,000,-- 000 4% per cent. instalment issue, maturing 1932--71, was sold in January on a cost basis of 4.598 per cent.; and that in June of last year a 4 per cent. instalment issue was sold on a basis of 4.409 per cent. This last, he said, was the cheapest long--term money the Province had obtained since before 1914. Loan Interest. He stated that if he again had to fix the rate of interest on the Pro-- vincial issue, knowing as he now does the immediate oversubscription of it, he would not fix the issue price at less than 5.85 per cent., or one--twen-- tieth of 1 per cent. lower than the rate at which it was issued. This issue, he declared, "did much to check the prevailing increase in interest rates, and without doubt cheaper money is available today because of the success of that loan." Evincing much confidence in the future, Mr. Dunlop stated: "Once the source of our trouble has been defi-- nitely determined, the cure will soon be arrived at." Mr. Dunlop explained that items such as old--age pensions were not shown in the Province's Public Ac-- counts, since 85 per cent. of the ex-- penditure in this regard is contributed by the Federal Government and the municipalities. The form in which the accounts are now kept is that, Mr. Dunlop explain-- ed, in which they were kept from the time of Confederation till the ap-- pointment of Provincial Auditor James Clancy in 1905. This form is ince for the past year exceeded the ordinary expenditure by upward of a quarter of a million dollars, This result, he went on, was achieved only by the co--operation of every Minister and every departmental official in the closest possible scrutiny of all cex-- penses, in accordance with the rigor-- ous retrenchment policy prevailing through the past year. vincial Treasurer were repeatedly stressed by Mr. Dunlop. Fliminating the expenditure on ac-- court of direct relief, Mr. Dunlop said the ordinary revenue of the Proy--