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Mheeg SI . "MUM" ofd'g,tdtrh,ttta't2,1,ii'id'ur, my» .... 1g.tf2 "t,',t'ft . ' 9 ' when the o o 't "J,'d,tt IftT t'ght,',1. accordance with statutory require- will In", the an". distinc- fit 1'. Hepburn. Premier and 'rovin- ttt.nttt, htut istrued tltten.turet to the tton, unique In the Illrtgtinh4peato. eat Treasurer. delivered yesterday amount of 81,300,000, bearing m- in! world, of being obligated for in the Legislature. in the presenta- terest at the rate of 4% per cent payments of principal and inter. _ tion of his fifth Budget. follows: tter annum, and has 'fece'ved ttt est in any one of three curren- . payment therefor an equivalent sum ciea. at the behest of the holder-. Continuing mummy, of "I? ot "WW from the TracherS' and with the inevitable assurance that 2vteJnt"l:'1//'d',1t?,'vo,u'l,h"J,"nt Inspectors' Superannuation Fund. payment will he demanded in the front the municipalities. I am able Power Com m ission currency most costly to the pro- to report that we have benefited vlnclal purBe. Fouowinq i. h Bum- the municipalities by a sum of over The Hydro-Electric Power Com- mnry, presented in this connec- eleven million dollars during the mission of Ontario issued on Aug. I, tton. of the Wit to the Govern- !iseal year which ends tomorrow. 1938, debentures of a par value of ment "Id tho l%vdro-Eteetrie This statement will he understood 812500.000 repayable in ton years Powetr CommFon of 10min ex- when I Inform the House that this and containing a callable claUse for change for the fiBeal periods 1932 has been brought. about by assum- redemption on Aug. l, 1946. or onl to 1939: ing their share of: "W suhtiequont interest dale. TheseI Fiscal Year , Total Mothera' tt1lnwttncrtt .......a2,263,tt00 1'm'"luTs, Ivhil'.t m" diroct 1tiijrlij) Octobkepdael? 1932............s4.ii'4xrcgii1§§ Old-age pensions and pensions lion of the Province of Ontario and " 1933............ Eiiiii.if for the blind ............. !.19t.500 in no way connected with the] .. 1934............ 878,798.23 tr-Coat of annalorium trrat- financing of provincial capital ex-t Ma.r.eh 31, 11f3'r.:y.:::::y.: 238726513; ment re tuberculosis (1).. 1.300.000 e','t',ylbt,1,'.,Tiii,,. have "J, influence on I " gamma. ygisssim . . owmgs. as ey are guanine :: qPq .e.......... 1 395,04 "'J,'t.f,2',','i"g'd"fgf,'i1l1'.'d,t teed by the Province of Ontario.' "39("tim"ed)_1ePtft4 to so per cent of amount They were sold to produce an inter- 8T,RT3,2g9.S3 expended on road work .. 624,000 est cost of 3.24 per cent. U h E . Ity relieving counties of the Treasur Bills n appy xperlence 20 r cent share of the coupe; prmlncial highways .'l.026.000I _y . The foregoing Immary indi- By one-mill aubsldy.......... 2.0mm» Outstandingtreasury hills amount. rates the unhappy experience of , - ing to t60,00o,000, all payable in the tho province during the past few l 8ti.3Stt,3tht lawful money of Canada and heats 1,." in re ard to it f i -t tt--ThLq saving "as effective noon! Ing rates of interest ranging from l ' ' . ore "n ex. July 1 loss " peliiiti of nine months.' tu ptr cent to 1.65 Pet' rent. will chute problems. The future . be listed_in detail. in the statement threatens a similarly gloomy ple- Adrlie Accounts for 1938 22;???33 1:33:91"? m the printed ture. American exchange during It will be within the memory of Financing hy treasury hills, with tho IT,':",,",.', "m" 1Ul"h"5lt the members of this House that in maturities varying from one to three rear; 11 premium of over 20 ttet' the budget brought down on March rem. rather than by using long-) ""l' fr,,"., C"',,',',',,'",',',', nhould " of last year 1 reported that the term issues, has been continued, 'e/ll',', f"fll' 'f 'f/lf/ill',' mm" year surplus of ordinary revenue over and this government again derives tt . " .'%1lll; 946, when we ordinary expenditure exceeded the great advantage from this policy. much??? , 'ii ,000 to meet in sum of three million dollars. This Aceordintt to our information, all " tt " o theao "t?.anye was a moderate and modest esii- indications point to a period of 2t2tt the province wilt be mate of the surplus for the year. cheap "WNW ahead in this country a "l in" to my in exehttntte tlt The public accounts of the Province and lead me to conclude that be- gum © over $6,000,000. 1 httve of Ontario for the year ended fore a sound basis is found upon ttd preparedaaummary nhowinq March 31, 1938, have been placed which business may be stahilizod, the interest and principal maturi- in your hands and on reference to interest rates must descend to still tim of Province ot Ontario bonds page 9 you will observe that the not lower levels. - ','t,v,,',"'ll kl" tcte,"tuert',', or ordinary revenue for the fiscal year The soundness of the govern- Th: 'll',,",; 1',dl'1,r,' fr: Qt,',','; which ended March 31, 1938, ment'a policy of adhering to short- intergst o which I: nc "I an amounted to tttfi,052,T92.tt8. term maturities for financing its change rates a 1 agent: a" Expenditures, before providing obligations, by which it has been colossal sum o'l%foli'l 515' and 'l for unemployment direct relief. WHO to take advantage of propose to include the com leta amounted to $71,446,910, leaving a Interest rates of less than one-half summary in the printed mp", a surplus before providing for un- those whieh 89911011 upon previous this address ' employment direct relief and the t'a'g'drt, Th",,"',,",':','.', , be dem- ' ' administration thereof of tt4,60S.- ons " n e PIT-V8 " trend . . ".88. Inasmuch, however, as it toward lower interest rates. onfarlo S Cred" Abroad has been the policy of this gov- The shortsightedness exhibited by Nt?.trithsttndiry.r the unfavorable eminent to charge the cost of l former administration in permit- conditions to which I have lust unemployment direct relief and t ting the issue of bonds redeemable alluded, by completely reversing the administration thereof against both as to principal and interest, the financial policy pursued by our the ordinary revenue of the cur- and at the option of the holder. in predecessor, we have been able to rent year. we deducted the cost New York, sterling or Canadian cope with t.his situation thus far. of this item, which amounted to funds has at the same time brought Our byrowiryrs. have always been $9,996,164.35. In the result, we advantage to the bondholder and repayable only in lawful money.of were able to report a surplus for avoidable hardship to the Ontario Canada. We have had a succession the fiscal year ended March M, taxpayer, against whom the dis- of balanced budgets and tax reduc- 1938. of. not three million dollars, crimination has been considerably tions and these evidences of so.u.n.d but $4,609,718.53. accentuated hy the political and government are today responsible . . . financial uncertainties now obtain- for the fact that We "fed" of the Athlie Financing ing in Europe. Province of P.nta.rio enJoys a most It has been found desirable during £228:th 33:33:11? tht mans" my" Fi r . o P er in- ttui,se'tl,g',u'tiett,hg,/gvgrtTge Problems of Treasurer dication of the esteem in which our public in order to provide for the The problems that confront a Pro. icsr/i1ihigd"ec"s'/i"e,,d, g,ut1iebg/,,urg1i.' lane capital expenditures entailed vincial Treasurer, and the anxiety slive manner 'i'niTi1//,"tl,ne' inscrib- in the program ot highway construe. that accompanies all his efforts to ed stock of the Pro in of ontario tion and hospital extension. arrange payment of accruing obliga- was held b i e 'J, "id in the Debentures ot tt it" "we of $15., tions under exchange conditions ii.fiis last 'ld tnv gears At in: time 000,000 were issued on Nov. l, 193tt, most unfavorable to this province British WaspLiiTn 'is from 102li bearing a coupon rate of 3 per cent "I be understood and appreciated to 93 and undoubted] the reasoli: and repayable in twelve years; with by those familiar with the fluctua~ that 'the rice did not sink 106v" a provision for redemption on Nov. tions ot foreign exchange during was that pun London Stock Ex- L 1947. or on any subsequent the year under review. The unpre- chan e fixed a minimum rice of interest date, at the option of the dictable trends and fluctuations in 93 a I? d 93li p government. The price at which foreign exchange during recent I ". . the debentures were sold has result- years have presented a problem of Durintt tho dark days of 'dept. ed in an effective cost for interest tremendous proportions to the large _ M, " nnd M, 1988, trading in of 3.36 per cent. financial interests in the United war 'otuttg W" active and large. On Dec. IS, 1938. an issue of de. States, with which those interests Moekn changed hands. t2ltcf, Dentures was made of a par value have been only partially able to Gin?" the amount of laser f of 816500.000. bearing a coupon rate cope, hut. former governments of shoe representing obligations o (Diaper cent and maturing in eleven the Province o.t Ontario have .he- st"eaPt',vi,'g,t " Ontario lg con; years: a redemption privilege ena- ifriended them m their difficulties; I an. to some three millions: tiling the government, " its option I these financial interests have had 0 Ian. it " nevertheless g,',',',",',', to redeem the debentures on Dec. easy ttcc'etis to the major portion ot 1 lute that prwtttetuty none M, 185. or on any interest date the 9230,000,000 of vamce of 9n- I ', inscribed stock was offeredf. thereafter. In the sale of these tario bonds payable, " ll" option n mast, ,ttttotwtt the Bank o . debentures an effective cost for in. ot the holder, in Canadian. New . "rest of 3.06 per cent has been ob. York or sterling funds. and have talned. been able to purchase and sell these securities without difficulty as a ihedge in their foreign exdlange transactions. . -l------i-------.-...._-, ---.