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3 Mr. Atkinson, on resuming the down on the .budget, made a referent-e tn en- ticisms of some previous speakers rp- lative to the management and "tspec. "ion of loan companies. Notwithsvami. iing the recent York County Loan Assu- ieiation troubles, Mr. Atkinaon was Hf 'opinion that the loan companies of the country were well conducted and man aged. There had been more failures oi banks than of loan companies. 1itol. 'brief allusions to several of the quea. tions covered in other eoniributioi,, in the debate. the speaker urged upon the Government the advisability of contrib- uting a few thousand dollars to tho. fund for the relief of sullen-rs in tho Ifamine-stricken districts of Japan. He ieritieized the Government for retaining the numbered ballot. which. when the iLiberal Government were administering (affairs, was denounced by the Conserva- 't.ives as iniquitous. Mr. Atkinson elm. ed with a reference to some of the mean- ures enacted by the. former Govern- ment for the. benefit of the Prm-inro, and words of praise for the leadership. both as Premier and as leader of the opposition. of Hon. Cleo. W. Ross. kMr. Smith (Sault Ste. Marie) nlpnrlml ibe negotiated through that tirnt. hut (that any sale of permanent 'sccuriti:ts lshonld be made through them. Thi, he Icharacterized as an extraordinary agree (iii/it-, and he demanded to know what iinducement there was for reaching such pn understanding. Mr. Harcourt rend- "tly explained his negotiation, with the firm named. With considerable. spirit he contended that the documents when laid on the table would show that he had acted with businesslike pin dence in all the negotiations he had con- ducted in connection with the Temiv kaming & Northern Ontario loan, for the'taking up of which the bond, were issued. The Province was not hound to the company named, the arguments "f the Provincial Treasurer himself show, ing this conclusively. The Premier moved the adjournment of the debate, which may continue to-day, Debate on the Budget. _ Pon. Mr. Matheson's Charge l, Against Mr. Harcourt. Says the Papers Will Show Be Acted With Businesslike Prudence in Ne- gotiitions Regarding Temiakaming Loan-Debate on Proposed New Liquor Act. .. An exciting incidmn marked thr- (my tinuation of the budget rlohato in tho Legislature last night. Hon. Mr. ling: " the close of his midi-ms submitted a motion which in otter-t was a eondvur nation of Hon. ll r. Matheson', flotation of the Provincial bond is-sue. The Pro- vincial Treasurer in a rigorous reply charged that Mr. Harcourt. as a mom- ber of the former Administration. had enteréd into an agreement with team ' Company that not only should to newals of the Provincial Treasury hills An Effective Reply by Member: For Monck. i FORMER LOAN CONTRACT. ITINE flllliNil STARTLES HOUSE. Fiir: MARCH 30, 1 . Marie) pleaded Hall's In Hm Wort-rs in tho t Japan. Ho for retaining h. when the administering mustice to tTiiriiiriGiiartitr.v. particu- larly in so far as the needs of the set. tlors were ooneerned. He pointod out that while $2.000.000 was received from ihe timber and minm'al wealth oi that country last year only $212.000 war, go- inc lmc-k from tho Government. It should he ai least four timcs' as muelt for a start. Mr. Smith doolared that in the past there had been "graft" in r9- Mr. Itttsca by numerous qilotutions'from I the last budget spew-h of the r.'.Tviyt'i.al Trvasuret' Alinwr-(l how the iwpdit "l the Province had been injured ly statemente ossertine the liuliilitief. dire" and JY" dirm-t. to mnmmt to s"')")".""", Tho fair fame of the Province 1iVtR to Iss made to ring in the market< of iho world. in the. humanoid those- "st'"..1tm"rttr [ iiivotid this. in the vainpmzn liiyy.ty.T "tithe t ottsuuwativo party it 1'0!le liahir iii. for the Provinee "a" iis'y,Cl. " t,is,0sTi.:',oo. Hut. m nn more. additional i! liabilities mire added to make a total of 824.N3dtN. The man who went to Eng- land to float a loan under thew t-ir-r'um- stances mule. a discredited application. The speaker would guarantee, that. Hon. Mr. Matheson never repeated these , statements in England nor to Lord Strathcona. l Hon. Mr. Matheson---) gave him a .copy of my speech. Hon. Mr. Ross-Did he read it ? lf t he did I'll venture to say his Lords-hip is too astute to believe it. Continuing, Mr. Ross showed that the. money market had been easy and the rate 21/2 per cent. but the hon. gentleman did not choose a proper time to go, and waited till the . rate was 4 per cent. He blames us for .ifret.tr.ied_fimiuce. We had not the .Re- gard to expenditures on the colonization roads in the north. and he assured the Minister of Public Works that it had not. yet coined. reading one or two items from the mlhlic accounts whieh should he looked into. The Growing Expenditure. Hon. Mr. Ross. following in the debate for the opposiiiou.drow attention tn the growing expenditures under the prourmt Government in its fourteen months of power. The Ortimates this your Ivor" fur an expenditure of almui. murmur»). an inc-ream of $700.000 over ihe whale ex- penditure of last year. and thi: did nnf im-lnde the supplementarios which would emne down Infer. It "an well to lunar in mind that the income of the Proriue, was limited: regard in the ledger ha!- an:-e must he had. Pro-ling, he on- iorod upon a 1liscu.cqion of thd romnf Provincial hand mutation. pix-faring hi, divet remark" by a raft-romeo tn (ho position financially of Ontario munpurod with (31:01:00. with its dvht of $21.900.01In_ and British ('uhnnhin. with a dvht of smut-what mar .F.000f00. Ho mum fair- ly plain] that Ctutario's onviahle pmitiun wa: largvl} duo to tho long and careful administration of the Liberal pa r1). Ho 1srieflc skotchml tho history of tho Tomiakaming l Northern Ontario Rail- way loan and it: rmwwah up to the thno of the Provincial hum] issue. ffrm. Mr. Mathew" thon found that his Nouwsis hm] ovtwialion him. For your; as tiuotwial critic. of tho Into ()ppt'wilinn. his, hon. frioud had mode it his hniinoa; to decry tho crmlit of the Province. Credit of Province Injured. curitios the hon. gentleman had, said the speaker. Premier 1Ditney---Why not ? . Hon. Mr. Ross-We were preparing to have them. We were able to Mat a loan at 4 per pent. . Premier 11fhitney---That in Ha answcr. Hon. Mr. lloss--Ny hon. friend muft not, suppose I'm going to answer to Sim; him. Fancy a Canadian Treasurh' gomg io the British market with a gold dollar and coming back with 96 cents. Hon. lf r. Matheson-We did very well.. Hon. Mr. Ross-The hon. gentleman thinks he did very well. Every, duck is a swan to him. In a series of figures Mr, Ross indicatml Hm Idml. .-1.- -- ____8___, Should Not Have "u." nucleated the high phwe muons Canadian securities held in the money market, arguing that Ontario hand: should have been much more highly rated. si",,',',',:',' no. (1 id very well. Evervy duck is Rim]? to. ly?m, Tn a series of figures Mr. 'd"itd,e,k1t':,l. -thc high phwe various 'I ' o . . 1'1'l',l1l',att ""Trities held m the money He thought the yat.newortii'y for float a nermnnnnt nought the hon. gentleman was orthy for having attempted lt, permanent loan at all under thé back with 96 ai/C" Mm" Matheson-We did very Well. I Itoss--The hog}. gentleman Attempted it. - n ---.Llr, v '1 Cr rr" p"' W t5'tyyftiiiiiri." He was 1Eiii" lWhe? gentleman might think him too seve He did not care so much for the In on of $240,000 as for the discredit brought upon the whole Province. The. hon gentleman was industrious and pains; tithing, but the Province had already paid $240,000 for him, and he would be dear at half the money. The Toronto Telegram had referred to him as a "help. less weakling," and The Catholic Ite. glster asserted that not a eorporuion in the city would engage him to put' through a financial transaction. He mm. eluded by moving in amendment that the House regretted that the pro. vineial Treasurer, by selling the securities of the Province lat 95 'instead of at par. had made it dim- cult to raise such further sums as might i be required without loss to the Treasurv Department. . Hon. Mr. Matheson's Statement. L Hon. Mr. Matheson said that the up. [position had acted most discourteously in moving the resolution without having [first given an intimation to the Home lot their intention. He had intended to 'pass over an act which was a disgrace to the Province of Ontario. an act in 'a. colleague of the leader of the on"; l,sition, and of which, he thought. the {leader of the Opposition must have been laWare. The hon. member for Monek. he "iron-eded. in leaving the Ministry, left ibehind him a statement in the Treasury Fiip'i"itriiis'iit as to his negotiations in 'regard to the Treasury bills. This in. ieluded a copy of an agreement signed {by Mr. Harcourt at New York on Oe tober JO, 1904. The, terms oi lthat agreement were that the (Government was to issue, Treas- {ury bills to the amount of £1.2W.000 ifor six months, to mature on May li, '1905, payable at the banking house of 'Glyn, Mills, Currie. K: Co., London. The 'sale of these bonds was to he tlego- I tinted through Coates, Son & Co., at a 3 price representing a rate of interest not [exam-ding 4 per cent. per annum. The ;sale of the bonds during the currency i of the bills, or later. was to he entrust- ed to Coates, Son & Co. To save expense :the bills were to be countersigned by :Coates, Son & Co. t The Treasurer noted how rare- Ef-ul hon. gentlemen opposite had :been not to back up the cry of stop [the loan. They could not very well do {so when the former Treasurer had po- i tered into such an agreement. Continu- iing. he said that after his intimation ito Coates, Son & Co. they wrote him {on November 10, 1905, expressing in!" Pprise at this repudiation of the agree- lment, and adding that when the proper time came they would be ready under its terms to negotiate for the sale of I Government 3 1-2 per cent. stock or bear. er bonds, which the Government might issue for the purpose of retiring Treas- ury bills, or otherwise. and hoping that the Government would give further con- sideration to the matter. On November t Hon. Mr. Matheson had answered "What possible inducement," demand- ed the Treasu.rer, "eould there be for the hon. gentleman to make such an agree- ment?" It meant, he declared, that. no matter what better offer the Govern- ment could get, they could not accept it owmg to this agreement. When ho (the Treasurer) went to London in the fall of 1905 'to negotiate for the taking up of the Treasury bills. Coates, Son t Co. went-around to the financial institutions of London declaring that the Province of Ontario was bound hand and foot to that firm. Accordigly. a: a precaution. he (Mr. Matheson) went to Coates, Son & Co., and asked what was the best they could do. They said they might be able to make. a, flotation at 96. less their commission. which would have net- ted to the Province only about M. He told Coates, Son & Co. tliatms Treasurer of the Province. he did not recognize the agreement: that it .wa-z his duty to protect the Province against any sueh agreement. The Agreement Repudiated.