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, "As a result of the 'Pay-As-you. Go' policy. which has yieldedasur- plus of over "t,000dt00, and by vir. tue of the fact that the capital re- ceipts will exceed the capital ex- penditures by nearly nineteen mil. lions. by purchases for sinking fund investments. and other items ot which full details will be given in the printed copy of this Address it is estimated that hy March 31 next the gross debt will amount to ttB6,ttttg588.tm If you will refer to page T of the 1936 Public Accounts 1you will observe that 'Total liabilities as at 1 March 31, 1936. l tttttttttttt to toooeooe 8689,558,513.76 iDeduct trom this you debt as it will stand on March 31, . mm mm 1'arrytrele mg debt. d .ttte the t,gia"l'f, "a h much "a. Pwtggtg? the sister mine! or _ '- " e of Quebec. due ln "1;; 'ttg,1atfr't', mvestmenta In the y Power Commission project. In our magnificent system of permanent paved roads, in our extensive hos- pitals, in our agricultural develop. ment loans. and in tho T. & N. o Railway. This has, in a measure. plated the Province at a disadvan- tage tn the money markets of the world. but the present. Administra- tion has set for itself the task of the reduction of this gross debt to more reasonable proportions. It II is therefore evident that during the present tiscal year this Government has succeeded in re- ducing the gross debt by 0.00.000... s 32,N6,925.19 "This is a great sum to take off the buck of Old Man Ontario. "tn being able to announce a re- duction in the gross debt of, In round figures. 833,000.000, I submit that the Government deserves no small degree of credit in bring ing about a debt reduction in an amount of approximately three times the sum that wa. promised you in my Budget Address delivered in this House "A promise kept by a Government in these days is reason for hope. and it Is an assurance of better things to come when the Gov ;ernmen'.al program comes full .cnrcte and the expenditures are 'kept within the amount ot supply i voted by the Legislature. l, Ontario Savings Offices on the 12th day ot March. 1936 A Government that produces a sur- plus twelve times as great as that promised. that improves the finan- cial position of this Province to the extent that. instead of reporting a deficit of '13,342,T06.74. as was the case last year.' it can report a sur- plus of $7,347,729.73. that produces a reduction in the outstanding Treasury bills In the amount of ifitl 000,000. a reduction in the outstand. , ing debenture debt of 826.000,000, and a reduction in the gross debt of 33 million dollars deserves. I submit. to be called a sound Gov- ernment and, in the words of the axiom that J placed before you to- day, a Government that is to be commended for following a policy of sound finance. ) "At this juncture. Mr. Speaker, i shall take the opportunity of say- ing a few words about the Province '0! Ontario Savings Offices, which are brrnches of the Treasury De. partment. Province of Ontario Savings Offices show a substantial [increase in deposits during the past two years. On Dee. 31. IKM, the deposits amounted to 821,S66,3T9.43. On Dec. 31. 19.35, the deposits were 832,0t%,tntuW, and on Dee. 31. 1936. they had reached the figure ot '3T,ti0tM29.4tt. On July l, 1936, in- terest rates were fixed as mum: On deposits of 810.000 or less. 2 per cent.; and on deposits in excess of 10,000, 1 1-2 per cent. Certain 7 variation: downward in the ratea at interest allowed, obtain in the ease of large deposits. Branches now total 25. The latest branch to ht opened was atrNiagara Falls on Aug. 12; ma Individual accounts Grifsi Debt of Orttario . 8tk56,ti11.b88.57 l, have tnmued tn number htmost thy 5.000 during the calendar' year: and the Increase in the number at depositors and the amounts of de- posits. notwithstanding the low "ates of interest paid. indicate the confidence that the people have tn credit of this Province. l, "1.069 loans "er re-amortized on l a plan whereby the original mortga- '!ges which were on a menu-year ibusis, have been extended for a I further period from twenty to thirty, "ears at 4 per cent. interest TFA'. Most of these cases, however, pro- !vide for an interest payment only) for the first three years, and arei then extended for a further periodl of twenty years with the usual pay- ments of both principal and inter- est. This has been a liberal con-i cession, as it has had the effect of: placing these mortgages in good] standing. eliminating overdue inter- est and giving the mortgagor anl opportunity of making repairs, pay- ing taxes, and discharging other i pressing obligations. ol'arms Benoit]. l, "Great care is exercised in the imatter of reselling farms. Never tin a single instance has the sale of " farm been made without the rec- ommendation of the local inspector in the district, and the further rec- ommendat ion of the' Chief Inspector of the Board. The Chief Inspector is an excellent official. He is not. an appointee of this Government. but was in the service when the present. Administration took office, and came to the Agricultural De- velopment Board from the Domin- (ion Government over eight years iago. having been employed by the Dominion Government as an offi- 'cial under the Soldiers' Settlement iBoard. liar-mew Creditors Arrangement. Board . "The amount of loans oucstand- in: as at Jan; 31, 1937, was $47.- 279.315.11. the number of mortga- gor: balm: 16,082, which is the low- est In several years. For the period from April l, 1936, to Jan. 31, 1937, _the board repaid to the Treasury 32.663.667.59. Of this amount, $1.- .7-.').000 was applied as capital re- ceipts in reduction of debentures lssuul by the Agricultural Develop- ment Board. and the remaining sum of 81,1trl,667.59 was properly accounted for as ordinary revenue in payment of interest. Farm Properties. "Tho board have on hand as at| Jan. 31, 1937, 524 farms which are; carried on the books at $2,865,151.91 1 During the year 346 farms 'were taken over by either quit-claim' deed F or sale proceedings. and 406 farms were sold. In respect to the farms repossessed. it should be stated that the tarms' are never repossessed unless the mortgagor is in art-eats of both interest and principal for a period of four years, with the ex- ception of cases where definite evi- dence shows that the mortgagor is exploiting the property or damag- ing the security. In no single in. stance has the human element been lost sight of; and in no single n- stnnoe where there has been the rev motest possibility of the mortgagor making an honest effort to succeed. has he been refused extension. Agricultural Development "The Board has co-operated with the officials under the Farmers" Creditors Arrangement Act and has re-amortized all loans as requested; and. in addition. the Board has ac. rented a reduction of principal and interest in the case of 202 loans for an amount exceeding 5260.000 in the aggregate. Temiskaming and Northern Ontario Railway . "The financial statements of the railway tor fiscal year ending March 31, 1936, continue to reflect the upward trend of business in the territory served. . "The result was as follows: For the year ending March 31, 1935. net earnings were $260,559.47. For the year ending March 31, 1936. net earnings were 'r2,011uS1uerP.tg cyx IO. ' "The significant features in (that while revenue shoived an in- Acreage of 7.59 per cent., operatlie i l expenses were reduced by 4.44 per! I cen . ' "The territory served by the rail- way has forged steadily ahead and indications all point to even more prosperous times during the years Ito come. ' crease. "The lumbering business Its more active-agriculture shows consider- able improvement,- while mining-- and in particular gold mining in the territory served-continues to expand to a very marked degree._ f'During the past year certain abandoned steam-line mileage was lifted and the cost written off. The road bed and equipment were kept up to standard, and the very best of service to the public maintained. In order to properly handle traffic the Commission has found it nec- essary to purchase two modern locomotives-six latest type passen- ger coaches and four combination cars. . "No Budget Address of this Ad- 'Im.i!t.strtytion would be complete without a reference to the Succes- ision Duty Act. _ - - - "For the fiscal year which will end March 31, 1937, returns now available indicate a satisfactory in, crease in traffic over the previous fiscal year. "The present Administration has been doing,its duty. It has re- opened a number of estates Where there was fraud or wilful' con- cealment. and where there was gross undervaluation of some of the assets of the estates. "This Government has collected from upward at thirty estates re- opened, amounts due the Crown varying from $2,000 to an amount exceeding $1,500,000. As I have said, it is the duty of this Govern-.l ment to recover some of the millions , that have been wrongfully withheld l.. from the Treasury; and bv the 3lst of this month we expect to have 'collected durin" this fiscal year up- tward of $16,000,000 for Succession Duty. . "We have just placed upon thel Statute Books of Ontario e pro- vision whereby every person who 'wiHuily makes anyjalse Statement' in any statement. written instru-i ment, letter, note, telegram, or; other document or paper writing; required by the Department, shalla| be guilty, of tut,offenstyuyi ehall.-. "I said that this Government-has been doing its duty; and it will continue to do its duty and intends to sift to the bottom every estate where fraud or misrepresentation appears to have been practiced. No innocent persons will be molested or annoyed; but, having put my hand to the plow, as Treasurer of this Province, I assure you that I intend to see this difficult and un- pleasant task through to its con- elusion. on conviction. be subject to a? penalty of a fine not less than) $1.000 and not exceeding 510.000! and imprisonment. We intend' to' see that this section of the act is enforced, as we shall enforce every other section of the act to the letter. I desire to make it known to every one concerned that if they have knowledge of any irregularity m any statement with which they have had to do, if they will come forward §and give to me, as Treasurer of this :Province, the information which will :enable the Treasury Department to icollect the amount of suwession duty wrongfully withheld. they will ie, given a full discharge, and no penalties will be imposed, except Ithe amount of interest provided by istatute. A _ , . "I have heard it said that the Treasury Department has been able to collect the large sums that it has gathered in because of the fact that legislation passed by the Do. minion Government ,in 1933 made available to the Treasury Depart- ment the names of coupon-clippers of bearer bonds. Such a statement is wholly untrue. Practically ever estate that has been dealt with w created through the death of th Succession Duty or 203.9 per cent. in.