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March :10 y Short-- T erm Loans _ Hepburn Gambles With Ontario Credlt,' * # # * Charges Conservative Budget Critic 1 AMBLING with the credit of Ontario was charged against Premier Mitchell Hepburn in the Legisla-- ; ture yesterday by Arthur Ellis, Conservative mem-- > © ber for Ottawa South, in the course of a spirited attack on the Budget. } '~ayaneas * **~*~~~--"Mits Finance Plan. | "Misgovernment, maladministration and mismanagement" were other charges hurled against Mr. Hepburn by the Ottawa Tory during an address tha? brought both the Prime Minister and the Provincial Secretary, Hon. Harry Nixon, frequently to their feet. "You have failed at long--term & financing and have gone back to the * short--term," charged Mr. Ellis. "Short-- term financing is the neight of folly, as you well know. Within the next few years the Government will have to raise $212,000,000 as a result of your financing policies, and I must say that I do nct envy you that task. You hear rumblings of war, and if war comes, what will happen to interest rates?" | To Mr. Hepburn's charge that much of the huge total was a "Henry heritage" from the previous Govern-- ment, Mr. Ellis replicd that only $79,-- 000,000 of the debt could be laid at the feet of the Conservative adminis-- tration. "You, Mr. Prime Minister, and your Government have gambled with the credit of Ontario by issuing Treasury ¢f notes and short--term bonds," declar-- ed the Ottawa member. Says Credit Bad. The Government, he said, had enormously increased the capital in=| cial periodicals to support that asser-- debeedness. From Nov. 1, 1934, until | tion. March 31, 1935, Treasury bills to the Mr. Ellis then offered the House to:al of $51,500,000 had been issued. "the startling information that both and the lowest interest rate was 2% | the City of Ottawa and the City of per cent. ' Toronto have in the last year sold Mr. Hepburn interrupted to remark | . bonds at a better price than either the that when the Government took office| Hydro--Electric Power Commission of they found outsianding Treasury bills| Ontario or the Province of Ontario and overdrafts of $47,000,000 at be-- itself." And he charged, furthermore. tween 4 and 5 per cent. that Provincial issues had been sold by "I say to this House," proceeded| private arrangement, and without ten-- Mr. Hillis, "and I say it with the| ders being asked. most profound conviction, that the "That was done," Mr. Hepburn ex-- credit of this Province is not good---' plained, "because the desired price it is bad. And it is my firm belief, could not be obtained by tender." that no one in this House knows it "Yes. You couldn't get the price better than the Prime Minister." you wanted because you had ruined In June of 1935, he said. the Gov»| the cregil: of the Province," re_;orted ernmert called for tenders for the| Mr. Ellis. He urged the Pre'n'uer to sale of $15,000,000 in bonds, and not| &bandon short--term 101111& "wmch he a single offer was made. "Surely,"| Called "the height of folly." he said, "that is wholly conclusive At_ this pqm.t, Mx.fi Hepburn guoted . proof that the credit of this Province | MST 1*"1;0 d we o oo ove ;lr'at all On-- * was at a dangerously low ebb when a'rjgoesntfia? eix;fd?caotz*e rr:u'n'"ationv * he not a single bank or investment house, | A6ked. f * ¢ either within Canada or outside, '}f" "It indicates that you sold bonds at willing to put up any bid whatever. Y se o ratr chrall e & & a price lower than you should have, "The act of the invesiors at that the Ottawa Tory retorted. time," interjected the Prime Minister, PA imo 'hnaonaks % I am only quoting bonds sold by "was in the nature of disciplining the infetration " the bri the former Administration," the Prime Government for its attitude on the i nithay a Minister shot back. * power contracts, and h'd, not.hins Mr. Ellis then turned to taxation. . | whatever to do with Ontario's credit." . ym froppurn had promised to reduce : Sees Lost Faith. taxation, he said, but, instead, had & i t« loaded on more taxes, "until there was ' 'Then," replied Mr. Ellis, "all I CA | nothing left to tax." -- say is that it is a sad day for Ontario Mr. Hepburn commented that A. H. necessary to discipline the GOVerN® suyosested in the House a tax on all ment. The truth of the matter is purchased meals. Statistics showed that the investing public has l@argely that the 1935 revenue from this source lost faith in the present Govern-- pnad dropped. ment." Nothing had contributed more "The people are all coming to On-- ; in that direction, he said, then the tario to get their meals" suggested power contract cancellations. The| Mr. Nixon. § | Province was now reaping the harvest|| "If you keep on with your taxation ' of "that ill--considered and ill--advised | they will have no meals to eat," replied | act." He quoted from British finan-- | Mr. Ellis.