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P SRCemEs * & 60 en e P e ic ( / )* / eeeaneeany o0 € W e d x 4e } _ nesd ay, Fe b, 23srd.-- _ The is&ue, ue saia, ~Tound a very iut in connéction it k 4250 _ ready market, and had been rapidly with the capital debt of this Prqv-' It will further be understood tnat _ absorbed. ince, Dr. Montith said that last far as the Hydro is concerned tfi:io 3 Again, in April of the fiscal year, fiscal year $17,100,800 was paid in part of the obligation will be prompt. " a $25,000,000 short--term issue for interest, as compared with $17,238,-- ly looked after year by year mndm.l one and two years in the form of| 175 in 1925, 40 interest saving over £0008 substantial start has been mada treasury bills, had been disposed of| last year of $137,375. 'in caring for the liquidation of th'{ %_ththe remarkably low rate of 4.53. ; This, said be. vlvas &t'mimll'e coindi-g part of the capital debt, * 4 roughout the year major portions, tion in the financing 0 e Province,| "| of money required wore binined. ac--| for in no other year had the in--| Out of Ordinary. Revenie. \ cording to the Treasurer, at the low| terest charges been less than in the|, As for the Provincial portion ot'q rate of four and three--qquarters per| preceding year. r:llgpgggt'o::i%a};e'p:hejd lghime as' cent. ovide "This form of financing," said he, Saving on Interest. Province provide annually at:)l:r: ':.l;f "was adhered to until such time as "Had this Government," he _ de--| proaching 3_1.500.000 each year,. To the market was favorable for a long.--| clared, "continued the course of ex--| be exact, this year the Province will term issue for refunding purposes.| travagant capital expenditures . in pay off the public debt the sum of . ' The Province made substantial sav--| the same ratio as that of the pre-- $1,668,000, and allow me to state | | ings owing to this method of financ--| ceding CGovernment, the interest | that this will be paid out of ordinmary inz. During the calendar year, 1926.| charges today would have been mil. YreVenUe, and has _ been provided there was not one long--term issue| lions of dollars higher than they}f,or. in the 1927 estimate o!] put on the market. The refunding| are," i ; revenue and expenditure. | Between| was postponed until such a time as a "This Government, he continued, the Hydro and the Province, the| favorable market presented itself{. proudly, "has introduced a new era. total amount which will be paid off | This (as previously stated) occur--| Of taxation reduction. As one knows, the public debt this year will hbe| red in January last.'" taxation is the foundation of a Gov-- $3,007,000. s * ernment, and no Government func-- Honorable members wili be grati-- Credit of Province. \fi(ms properly if its chief ambition fied to know that already the Pt:ov- Referring to the keen bidding on|is not the lightening of the burden ince has paid in this fiscal year, in | this particular issue, the 'l're.asiuror'"f taxatior. Also, another objective December, $700,000 of this sum. A | said: "It is apparent to the honorable!|that has been well observed by this repmrkable feature associated with \ M gentlemen of this House that the |Government is that it has endeavor-- this payment is that it is the first \ W growing appreciation of the credit!ed, so far as possible, not to invade payment that ever has been made | of this Province is observable, A re--}the field of taxation which belongs toward the reduction of the public ~ newal of confidence has come in theito the municipalities. This Govern-- | debt of the Province. The balance | l finances of the Province of Ontario.| ment has saved in taxation to the | of the 1927 quota will be applied in I might inform the House that this people of this Province, both direct-- |' the payment, out of revenue, of that ' was the cheapest money that this ly and indirectly, large sums of |amount of other maturing loans | §{ Province has secured since pre--war money. "- which will not be refunded. Year | W!days, a rate of 4.77, slightly over "Directly, they ~ have abandoned || by year, these instalments will re-- / | 4 3--4 per cerft" I might also draw the taxation on poolrooms, amounting to l; ceive due consideration by this Gov-- ' attention of the House to the fact $100,000 per annum, believing that| ernment to see that the payments| t that no issue in the last four months|this was a municipal tax; luxury tax | are regularly and consistently met. in any part of the Dominion has| on carbonated drinks up to $102,000; | The financial undertaking has been t brought such a favorable return as amusements tax, any entertalr.ment; assumed and the basis of procedure| $ this, the cheapest money that has|up to 25 cents exempt, some $600,--| will be such that they will be met.} been secured in any Province or city 000; automobiles, $5 on each car--| Thus, year by year, our~ interest in recent months. I draw this to your a saving to the people of $1,750,000 | charges will be lessened and the sav-- attention simply to prove to_this to $2,000,000. _ While the direct tax--| ing applied to debt retirement. The [ House that the finances of the Prov-- ation relief is large and substantial,| paying off of the debt will therefore ' ince of Ontario today are sound |YCt the ind'rect tax reductions rep--| proceed at a constantly accelerating 'M and wholesome, and have reached ajresent more money and more relief | rate. f stage where the outside worlda ap--|than the direct. We have saved, in-- ; "As an illustration of the rate of, | preciates stable government?' directly, large sums of money in the| acceleration, the amount of debt to : Declaring that during the Drury refunding operations. § l be paid off is shown below at five \ M{regime money «@ost in the neighbor-- "short--term financing during the| yearly intervals over the forty--year | 'hood of six and one--half per cent., entire calendar year of 1926 has| period: First year, 1927, $3,007 000; Dr. Monteith stressed the great sav-- saved this Province many thousands| fifth year, 1931, 33,545 006' t'entl.l | 'ing to the Province occasioned by of dollars. Still more important was | year, ©1936, $4.311.000: tifteenth' W leven a small margin in interest rate. [N€ consistent holding down of capi--| year, 1941, | $5,335,000;° twentieth | | This was reflected, he said, to all the tal expenditure, by which method | year, 1946 $6,651 000 ; 'fwentY-fltth§ t various commissions operated under the CGevernment has been able to ; year 1951, $8,361,000; thirtieth year the Province, and to which money}'sa\:e this Province in the three years 1956, $10,549,000; thirty--fifth year: \ | was supplied by the Province, such || of its offic.'era sum of money amount-- 1961, $13,320,000; fortieth year," as the Hydro. thlf' T. &IQ .\].)O. }muwa{li i';}% tcoasi3.6:3t.g14.l t\n]d this year, in 1966, $16,835,000. 11 # and the Agricultura evelopment |: e last loan, we made & Board. A rate of interest amounting | an exchange profit on the transfer 'l'o"Pay Off Entivre Debt. f ; |to one--half of one per cent. would of $11,000,000 of $15,000, which add--| As has already been explained, ; mean a saving to the T. & N. O., forii sd eo mich more (b the proceeds of the rapidly increasing rate of retire-- n 4 e r ar the ijoan. Another # E \ ment is effected by applying the sav-- . instance, of $150,000. And a similar er matter, by way )j f oi 6 rate on the borrowings of farmers . Of interest saved and lightening tax-i; Ns ? interest on Gebt paid off to | from the Development Board, which ation, is the reduction of the deficit. principal retgrementf. In other words, were $12,000,000 on October 31 last, Here, again, we have an indirect sav-\by maintaining an annual charge means a saving to the farmer of $60,-- ing." -- va%alnst revenue of the 1926 interest, 000, and is thereby reflected, he con-- | Me went on to refer to the Gov-- P usi ant laddlitéor(;al amount of ap-- i tended, throughout all the services. ernment's debt retirement scheme proximately $1,500,000 per _ annuM. 4 Aath@r EU s limmducpd aank . a & k for 40 years, the entire debt as at the a Continuing, he noted that the rev two years ago, whereby | end of 1925 will b id off, 1 M | enue for the last fiscal year, ordinary | the entire debt existing then could . e i oo sebt contractes A e C ~ | be retired in 40 years outstanding only new debt contracted | |ana capital, excluding loan repayt | * years. 'from 1926 onward, in various stages -- !ments by municipalities and rsnec1a1 | Debt Retirement Scheme. | of repayment through the medium U !fund receipts, amounted to $54,000,° | «--pne scheme," said he, "was as lof Annuity Bonds. _R ; 000, and that the expenditure O" |fojows: The debt was d;{-ideda '1{'5 \ __'""The Serial Bond Issue of Decem-- s 'ordinary and capital account, °X2 |{y "! 6 - vided 1nli0 (pep, 1925, and the one in Janu £ | lusive of loans to municipalities and wo parts--the main Provincial debt, ) jp;g & 4 oo it : clusive o $192,765,308, and Ivar i !this year have both provec a decided snecial fund repayments amounted * , an the Hvdro -- debt, | SI 2 0094 (;00 pal 8, $127,198,046. The Hydro assumed success. In both cases, these were is-- [R | to $65,000,000,. 'its own financing of the retivrement SlUSS refunding the old debt. The _\ | Succession--Duty--Free Bonds. of their portion of the debt and ie ove in January calls for an annual. B | He referred briefly to the bonds fare to pay off a certain instalment ;paymffit .Of 'ifiog'oooii-'% nfixt flsca(; M |and stocks free from ° succession | Provided by sinking fund annually, |3£$aol'; oo;le Wt ite ret rt% t ezsleggg (M | duties as at Oct. 31, 1926. The origi. | thus liquidating their entire present | A mMald uo & S21000t j a 4 ~| debt in 40 ye j 000 1925 issue, and the first $800,-- & nal amount was $13,998,600 in cur years. I might inform q < k . Wa A he House fthat i 3 00 maturity of the $24,000,000 1926 U | rency ana £2,457,841 in sterling. .A j / se that the Hydro has @l-- |'jssye, which means that, in the fu--| M | great portion of these issues Nas | ready entered upon this scheme, and {upe, each issue will be taken care of| been redeemed or cancelled, and will pay to the Province this fiscal i ¢ i t f *L _/ year their first in o as the annual maturities fall due, so y much has been brought into the sink-- . Y ir first instalment toward the ' ti f thi h a s 5 liquidating of their deb that, in 40 years' time, i this scheme ing fund. .There remain in the d o t The fact ;s persisted in you will have a Prov-- public hands $2,433,500 in currency is that in 1926 they surrendered to incp free of debt so far as the "old" | and £273,130 in sterling. the Province over $4,800,000 of ac-- debet is concerned. With careful at--| There was a bricf referents also'cumulated sinking fund, which they tention to the control of expenditure j to the canteen fund. He reviewed |had invested in -- Provincial bonds, .and doing without things that cannot *\ }now the fund of $940,000 had come | This was set against their debt, and 'pe paid for, there is no good reason a into the hands of the Province; how |to that extent the gross Provincial: wp this should not ve accom--| v magh gh a lt , debt reduced. Thi i Y +# ' " |the Province had taken it in trust. was reduce his is a proof. plished. A Treasury bill for the amount for of what is being done and shows the He continued to deal with Hydroi d one year. bearing interest at 5 per|Getermination to carry out the 'affairs declaring, "financially Hydro | | cent.. was sBld at par to the Canteen scheme of debt retirement." is sound." He went on to review | Fund Commussion. "This means,'" 80 Already in the cancelling of their |again briefly Hydro's part in debt f it was stated, "that the soldiers Of 33.800,000 of bonds the Hydro has |retirement. M the Province have a fund that i§; own to the public its good faith'; Then he dealt with financial aC} ' safely invested, and they seCNTE ol br;scigrrying out its undertaking, and. 'tivities in connection with the T. & ' their investment a rate of interest es, as I have intimated, this |x,. O, Railway. Up to date the tota1| : one--quarter per cent. at least bet-- {:arflthey will pay to the Province |amount of monetary sitpport from ; 4 ter than they could obtain elsewherej ; e first annual instalment, accord-- the Province has been $30,207.834., for a similar security." t?xg to the debt retirement scheme, During the past two yeats money k *+® e sum of approximately $1,350,000.' advances from -- the Province had a . been nil. -- In interest alone the railway has