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LR La HON. J. A. HOBB . Mr Robb, the Minigter of Finance, 4a provincial legislative assemblies, in the Interest Charges For . Future Years EXPLAINS POLICY Steady and Continuous Re- duction in Debt and Taxa- tion Is the Aim of the Gov-, . ernment--Caution. Used in Making Tariff Changes The Budget Speech Ottawa, Mar. 2.--In. his Budget Sheech made in the House of Com- 'mons yesterday afternoon, before ® cro Bouse and galleries, said: "The general optimism prevail-, ing throughout Canada has, during' recent months, been so widely re- and strongly emphasized annual reviews and financial state- ments that, in presenting this an- | nual budget, little need be said be- yond/ submitting ofticla figures whi¢h, when avalyzed com- pared with"the records ot. a years will show a steady and con- tinuots reduction of both debt and ratés of taxation, 'The fiscal years ends, as Hon. Members know, on the 31st of March consequently when on the 16th of February 1928, the annual budget statement for 1927-28 was presented. It was necessary to make an estimate of the total rev- enues and expenditures, The pub- lig: accounts for that year have since been tabled and give in de- tail: various févenues and ex- res and show that after transferring certain old and doubt- ful assets and soldier setilement Joan adjustments from' active to non-active assets, the actual net debt. reduction for the fiscal year 1927-28 was $50,984,137.17, "For the fiscal year 1928.29, which ends on the '81st March, 'ir is0 that 'the ordinary rev- will be $450,000,000, which, 'tures Tor 'the year. with special receipts from repara- tion payments of $38,500,000 and receipts of $1,400,000 from the Imperial Government in: final ad- justment of disputed claims, o- gether with $42,000 miscellaneous receipts, makes total estimated revenues for the year of about $454,942,000, This will 'be an in- crease of some $25,000,000 over the revenues for the vear 1927-28. Revenue Increases It is estimated that customs rev- enues will be $186,000,000--an in- crease of $28,000,000 over the pre- vious year, excise duties $63,400, 000, an increase of $6,000,000; in- come tax $58,500,000, an increase 0f$1,900,000; interest on invest- ments (including $1,600,000 in- terest derived from temporary in- vestments of our surplus cash hold- ings), $11,600,000, an increase of #16,350,000, an increase of $340, - 000. services which it is esumared will show: 'decreases are: Excise taxes--Sales, stamps, ete, $81.- 500,000, a decrease of $8,700,000 from the previous year; delayecl business profits tax, $450,000, a decrease of $500,000; post offfice $31,000,000, a decrease of $560, 000, and miscellaneous services $2,200,000, a decrease of $370000. Estimates for Year "Our ordinary expenditures for the ygar, Mr, Speaker, are estimat- ed at $355,200,000. This includes payments made under authority of the Maritime Freight aRtes Act, 1927, of $2,992,000 to meet the twenty per cent. reduction in mar- itime freight rates, and $4,303,000 to meet deficits on eastern lines. It also includes $1,600,000 by way of special grants to the Maritime Provinces, $800,000 to be paid to the Provinces of British Columbia, Baskatchewan' and' Manitoba as the Dominion's share of old age pensions payments, and $2,190,- 000 to the Federal District Com- mission Act as amended | 1928, Capital Expenditures The capital expenditures are es- timated as $24,150,000 and special expenditures at $1,927,000, In ad- dition, loans in cash to the Cana- dian Government Merchant Marine are estimated at $1,000,000' and to the Quebec Harbour Commission $2,873,000. As these loans are carried as non-active assets the amounts are included as expendi- The total -esti- h Points to o FHS u ar estimated 4 uditures. of $as5.100.000 'estimate: Bo '$454,942,000, rs wi ed that the estimated s revenues over all nt Sh for the current fiscal year is $69,782, . After reading tables of revenue and expenditures, Mr. Robb con- tinued: giving: a. total in debt. 150,000; 1903, 1904, duction Maturing Mr. Robb said" of maturity bonds were purchased Succeeding The Oshawa Daily Reformer OSHAWA, ONTARIO, SATURDTY, MARCH 2, I! Debt. Reduction "Having dealt with the revenues and expenditures, the attention of Hon. members ig now directed to the net debt of Canada. which, at At the close of the year, amounted to $2, At thec lose of the present fiscal Jour it is estimated it will be $3,- 227,068,000 or a reduction during the year of $69,782,000. duction is arrived at as follows: to the $94,800,000 surplus of or- dinary revenues over ordinary ex- penditures is added special reven- ues, of $4,942,000, tion payments and receipts from the imperial government in final ad- justment of disputed claims, thus of - $99,742,000. There are, however, certain other expenditures which must be de- ducted to arrive at the net decrease "These are: Special expenditures on account of adjustment of war claims and miscellaneous charges agajnst. consolidated fund $1, 237, 000; 'capital expenditures, loans. to Canadian Gov- ernment Merchant Marine, $1,0vy, 000; loans to Quebec Harbow Commission, $2,873,000, making a total of $29,960,000, which deduct- ed from $99,742,000 will result in a reduction in the net debt for the present fiscal year of $69,782,000. A Five Years' Record "In connection with the debt re- duction which the ° again able to accomplish, may at- tention be directed, Mr. Speaker, to our record in that regard. examination of the. shows that for a per from Confederation 1923, the net debt was increased year by year with the exception of the fiscal Pdtv 1871, 1872, 1900, 1907, 1912 and 1913. From the beginning of the fiscal year 1923-24 to the end of the pre sent fiscal year, the net debt has annually decreased, in the -six amounting to about or a yearly average 320.708 of some $37,700,000." ublic accounts od of 56 years, "On Oct. 15, 1928, the five-year five per cent refunding loan of 1923, amounting to 000 matured. Previous to 866,400 market, this effecting a saving in in- Tes stylish, original ine , . rues WHO KNOW £250 08 everyone sees land prices. he Olympic Ses its value For the Olympic Oakland on the road. Series Oakland Six Taz ibutious siding comfort snd ita offers more performance . . more. . the subjects luzury . . more quality . . than Ts rl oy le a such low. price has ever bought gt pe before. ively few of all who "Astonishing" verdict sr beau of Oskand's Fide Si pl dee +» » or the commanding per. j formance of is smooth, Oakland Si nit BA yous own Judgueuc say those PRODUCT OF oenEgal MOTORS OF CANADA, LIMITED D SIX Olympic Series Ontario Motor Sales, Ltd. Oshawa and Whitby, Ontario Little Harry and owt time coasting on a tree and root of below the knee. breakin, truck which was passing. Harry's ambition now, so chums were havin, etchers Hill, the steep track his little sled caught in the he was dashed against a rock | was nearby, the telephone men 2 telephone men who are qualified fi The Knights of Industry _ Flash hs ngs looked his 1 bad for r fray. rhe traffic policeman on the near-by corner, sensing an accident, stopped a Bell Telephone e knew from experience that the crew would be able to render first aid. The three Bell men in the truck were all qualified first aiders and it was no time until they had the little fellow's leg in splints. When the doctor arrived, he said he could do no more there. As H aced him on one of their ladders and carried him ther tells his mamma, is to grow big fast and be one of the 4,000 and more rst aiders--one of the Knights of Industry. Slims Bally Times A Growing "Newspaper in » Growing City 8 Week; 3 Comtex Comm: Second Secon Pa TI 8 home .terest of $482,000. The balance of the 'bonds, amounting to $32,133,600, was redeemed in cash at maturity, The saving in interest resulting from his sedemption will be $2,650,000 an- nually, "On the 1st August, 1929, the 5% per cent loan of 1919, amounting to $60,000,000 matures. The government will be in a position to take up this loan' out of surplus revenues and thereby effect a further annual in- terest saving of $3,300,000. Interest Charges Reduced "For the information of 'Hon. members, and with their unanimous consent, a statement is now placed on Hansard 'showing the outstanding funded or dead weight debt in the hands of the public. In doing this it might well be observed that on the 31st of March, 1914, the dead weight debt in the hands of the public was $303,560,938, while the debt today is $2,330,835,086, It means that our annual interest charge of $117,142,100 on the funded debt represents one- quarter of out present yearly reven- ues. The policy of this administra- bave been converted into a sub- stantial reduction of the maturing '| obligations causes a saving in inter- est, an improvement in our nationa) financial reputation and paves the way for further taxation reductions towards te pre-war level." Dealing with Canadian Nation- al Railway finances, Mr, Robb said: The Railway Finances "Wich the exception of the pay- ments made by the government to cover deficits on the Eastern Lines, no direct financial assistance was extended to the Canadian Nation- al Railway Company apart from certain temporary loans, since re- paid, The same situa.ion prevailed as in the previous year, the com- pany's financial requirements being raised in its own name, mainly with the guarantee of the Domin- jon, but, in part, without such guarantee, "This fingneial position has been reached" gradually, In the early years of government owner- ship deficits were met, the lines unified and the system rehabili- tated largley at the Dominion ex- pense. Latterly, however, deficits have been converted itno a sub- stantial surplus and the manage- ment anticipates that further im- provements. and extensions, in- volving new capital, will be self- sustaining." . The Coming Year "Before leaving the financial ac- counts," sald "Mr. Robb, "some re- ference might be 'made to the prob- able revenues and expenditures for the coming fiscal year. Without being unduly optimistic, the gov- ernment feels it is warranted in an- ticipating that, nothwithstanding the reductions to be submitted in this budget, the revenues will meet 811 expenditure obligations and al- 80 provide for the redemption of the loan maturing Jn August next. "The ordipary revenues for the present fiscal year have already been estimated at $450,000,000, It is hoped the ordinary revenues for the coming fiscal year will be at least equal, After making provi- sion for the statutory charges and maturing obligations, the expendi- tures have been allocated to such votes as will provide for long defer- red repairs and needed improve- ments to the public properties and services, as are required by a grow- ing and prosperous country." 's Trade Dealing with Canada's trade, Mr, Robb said: "The remarkable growth in Can- ada's external trade may be fllus- trated by the fact that the favour. able balance just quoted is almost pid to the total export trade of this Dominjon thirty years ago. It might also be noted that a com- parison ale the pre-war year of 1913-14 'shows the 1927-28 exports he soul manutacturcd and fully manu- goods in the year 1914. Canadians may well take pride in the great increase in the per capi- ta producing ability of this Dom- inion. "It is gratifying to note the steady development of inter-Em- pire trade. Canada, the pioneer of the British Prefer:nce, looks on empire trade as the key-stone ot its external trade policy and de- sires in every way to foster closer trading relations throughout the British Commonwealth of Nations." * The Tariff Board In connection with the activities of the tariff board, the Minister of Finance said: "The advisory board on tariff and taxation was actively igvesti- gating numerous requests referred for investigation. Many public hearings have taken place, and the spirit of the applicants before the board, the frankness of the discus- sions, and the impartiality of the commissioners have created a fa- vourable . impression among the Canadian people. It is apparent that it is physically impossible for the advisory board to investigate thoroughly in a few months the scores of applications which have been referred to it and that time must elapse before the government can be placed in possession of the fact findings, especially. in those cases where whole tariff schedules are involved. External Trade In the matter of external trade, Mr. Robb said "This Dominion continues to be one of the world leaders in the vol- ume of its external trade, there- fore, problems arising in connection with our foreign trade cam never be ignored. As the years. go by aa increasing quantity of our domestic production must necessarily be mar- keted abroad, It is our desire to trade freely with' any and all who are willing to trade with us. What may, or may not, be possible in this particular necessarily depends in some measure on the purchasing power and the fiscal policies of oth- er countries. The policy of this ad- minstration is not a high tariff pol- fey, it is a low tariff policy. Its pol- icy is to encourage production at home and the marketing of our ex- cess of production abroad, in ap- plying this policy." Tariff C "In accordance with the fiscal policy of the government the tariff changes to be submitted to-day are designed to reduce taxation and to lessen the cost of production. The changes to be sumbitted arise out of references which the advisory board on tariff and taxation has investigated, and are based on its fact-findings. The board is continu- ing its inquiries on which substan- tial progress has already been made, into several larger problems which. involve the consideration of whole tariff schedules and the in- ter-relation of many important Can- adian indutsries while these inquir- fes are being pursued, opportunity will be 'afforded for considering the possible effect on - trade ot changes 'being proposed in the tar- iff schedules of other countries, should they be implemented by leg- islatiqn. : "The taxation changes just sub- mitted, on\the basis of this years estimated revenues, represent an estimated loss of revenue of ap- proximately $25,000,000. "The past fifteen years have wit- nessed the dislocation of many in- ternational structures and the fin- anefal stability of many countries is not now measured by thespossible producing capacity of the citizens, but by the degree of success with which these national governments are able to meet the demands nade upon them. Sometimes inability to do so has interfered with general credit and hampered industrial ana national expansion Canada Not Suffering "Happily Canada is not suffering from ch a blight. For six sue- cessive Years the rigid application of 8 policy of spending less than was collected has made it possible for every activity of the Dominion, including all capital expenditures, to be paid out of current revenues and, in addition, to reduce the ma- tional debt. This fiscal record has not only enhanced the international credit of the Dominion, but has us so strengthened confidence in our domestic credit markets, thus smoothing the way for the provin- ces and private enterprise. A healthy business expansion, the gov- ernment -feels, is of the greatest importance to Canada." Err on Side of Caution "In drafting the fiscal program for the coming fiscal year, the gov- ernment has sought to err on the side of caution. The lightening of the burden of taxation is, admitted- ly, a sane policy, and to that pro- gram this government remains com- mitted, When Wilie starts bringing in nroblems in the Einstein theory for his home work, there'll be another 'Reduction in Sales Tax . to Two Per Cent., While Other Taxes Have Either Abolished or Re. duced Taxes on Telegrams, Cables, Railway and Steamship Tickets Abolished -- Re- duction in Certain Ma- chinery Tariff Schedules. (By Canadian Press) Ottawa, Mar, 1--The budget today takes another one per cent off the sales tax, bringing it down to two per cent, This was the most im- portant tax change it contained, The tax on the sale and transfer of stocks is changed from a flat rate of three cents to a graduated scale from one cent to four cents, Tax on insurance premiums other than life and marine of one per cent, is abolished, Tax on railway and steamship tickets is removed, . This takes effect May 1. Minor Adjustments Most of the 34 changes in the tariff provided in the budget are in the matter of adjustments, The rates of duty on certain machinery and Se! used in the mining indus- try have been reduced. The present rate is 15 British preference; 25 per cent intermediate and 27% 'general. The new rate is ten per cent, 15 per cent and twenty per cent respective- by, The lower duties on engines for shermen's boats are extended to include parts. Request of horticulturists for re~ duction in certain bulb sterilizing apparatus has been granted. fore Jiductions are made in print- ing, ach inery. ates on 8 autc into line with private 101 are brought automobiles, Provision is made for the govern- ment to levy a duty of half 4 cent a pound on copper rods if found ad- visable. The tax of three cents on tele- grams and cables is abolished. The total loss of revenue from re- duetions in the tax- MANY MINOR CHANGES|; Is Important Feature Of the Federal Budget Tax Is Reduced From Three | abolished, (section 29 of the special war revenue act), is a tax of five cents on tickets over $1.00 and less than $5.00--over $5.00 for each addi~ tional $5.00, five cents; Heamahipa 10 when Tale exeed. S150 ess than then $3. " re $65.00, above that a $5.00 tax; chair car, ten cents; sleeping car, ten per cent, These are abolished from May st, 1929, Tarift Cha Ottawa, Mar, 2.--Hon. J, A Robb's tariff proposals as present~ ed in his budget speech yesterday suggested few changes of note. Some of the articles admitted to the free list specifically had not previously been provided for in the tariff schedule and amendments were introduced to place the com- modities concerned in proper class~ ification, Desiccated cocoanut, not others wise provided for is assessed at 5 cents per pound under the British preferential tariff, six cents under the intermediate rate and six cents In the general rate, This is a new ax, Desiccated cocoanut, unsweeten- ed, is placed on a lower rate, The tariff is reduced from five to twu cents on the preferential rate; from six to three on the intermediate and six to three in the general, Other Cha : Directories for free libraries ara added to the duty-free list of boons on the application of science to in- dustries, Fused borax, formerly five per cent, is added to the free list. Stearic acid, not otherwise pro- vided for, is now admitted at the existing schedule of 12), 17% and 20 per cent, The same commodity when imported by manufacturers of candles and crayons will be ad mitted 'free. A reduction from 15 per cent, 20 and 223 per cent. to free, five per cent, and 7} per cent. is provided for sizcouiun ozide, tnd to Airplane ustry As an aid to the airplane indus~ try, chronometers and compasses of a class not made in Canada are put on the free list. Formerly the articles were restricted to ships, no provision being made in the list for flyng equpment. Motor-cycle or side-cars are ac~ corded the same treatment as autos mobiles for conveying passengers only and vi lace of produc~ tion at not 1,200, Pos es is estimated at § Ti reason why men leave home.--Ar- kansas Gazette, rans, ax... The transportation tax which is torcycles will be a : 12% per cent, B preferential rate, 17% per cen rmediate and 20 per. cent. 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