speech from the Throne mentioned the Tercentenary celebration at Quebec (ANNUAL REGISTER, 1908, p. 454), the Treaty with the United States relating to the Great Lakes, the need for public economy, the call for more railways, the surveys for the Hudson Bay Railway. In the debate on the Address (Jan. 22-26), the main interest arose from the determination exhibited by the British Columbia members to restrict or exclude entirely all Oriental and Japanese immigration. Regarding the Waterways Treaty, both the Prime Minister and the leader of the Opposition agreed in recognising the practical inconvenience of having the details of such treaties given to the United States Press, while the Canadian Parliament had to wait till the documents had crossed the Atlantic and received the Royal signature. At the same time it was admitted that the bad practice prevailing in the United States was no sufficient reason for altering the whole course of diplomatic action. The publicity given in the United States was due, as usual, to the indiscretion of individual Senators, not to any impropriety in the Department of State. The evil thus arising is obviously without any remedy so long as all treaties must be discussed in the Senate. On February 4, a despatch on the subject from the Earl of Crewe, Colonial Secretary, was laid on the table of the House. On this attention was drawn to the obvious impropriety of the American practice; but as no remedy was available, no motion was made. In addition to the irritation prevailing in the Federal Parliament, the Provincial Governments took alarm, and on February 17 representatives from them assembled at Ottawa to consult with the Federal Authorities as to the details of the arrangements to be submitted to the Hague Tribunal in 1910, regarding the fisheries as well as the water boundaries. The reference to the Hague Tribunal is to be made under a Treaty (Treaty Series, No. 21, 1909), signed at Washington on January 27, 1909, and presented to Parliament, September, 1909. The Tribunal is to meet in May, 1910; and the cases of the two countries have long been in the hands of experts, legal and technical (cf. pp. 438, 456).

The Earl of Crewe's despatch dated January 29, 1909, the "Canadian Hansard" (Feb. 4, 1909), stated that "according to Press reports there seems to be some misunderstanding as to the presentation of the Treaty to the Dominion Parliament. In this country the treaty-making power is the King, acting on the advice. of his responsible Ministers, who in cases of treaties which affect a Dominion Act of course act in full consultation and accord with the Government of the Dominion concerned. In the United States the treaty-making power is with the advice and consent of the Senate, and until the Senate of the United States of America approve of any treaty it is not the practice to publish or present to Parliament either in this country or in Canada, or to publish in the United States or to present to Congress. The fact that the Senate of the United States sees the treaty before the Parliament of the Dominion, but not before the Government

of the Dominion, is therefore entirely due to the terms of the Constitution of the United States."

He hoped that the Canadian Ministers would clearly explain this to Parliament, and would point out that the relation between the Parliament of the Dominion and the Government of the Dominion in this respect was practically analogous to that between the Imperial Parliament and the Government of His Majesty the King.

This despatch was in harmony with the paragraph in the King's speech at the opening of the Imperial Parliament (Feb. 16, 1909), which stated that the waterways question "being one of special Canadian interest, the advice of the Dominion Government was sought and followed throughout."

On February 26 Canada was represented at Washington at an International Convention for the Conservation of Natural Resources, called by President Roosevelt. Hon. Sydney Fisher, Minister of Agriculture for Canada, took part in the proceedings. The Conference, which was held in private, recommended: (1) an inventory of forest resources; (2) the creation and maintenance of large forest reservations under public control ; (3) public ownership of forests supplying the head waters of streams; (4) greater Government precautions against forest fires; (5) all lumbering operations to be placed under rigid regulation; (6) the private owners of lands unsuited to agriculture, once forested and now impoverished or denuded, should be encouraged by practical instruction, adjustment of taxation, and in other ways, to undertake reforesting; (7) excessive taxation on standing timber privately owned being a potent cause of forest destruction by increasing the cost of maintaining growing forests, the taxation of timber land should be separated from the timber growing upon it, and be so adjusted as to encourage forest conservation and forest growing. The protection of water-powers, rivers, streams and minerals was also recommended. Canada, in accordance with the recommendations, appointed a Commission duly organised and provided with means to procure and publish all necessary information. No report had been presented at the close of the year.

In order to keep the discussion of external affairs in safe and expert hands, a new department was created, to be attached to the Department of State. The Act (ch. 8, 9 Edward VII., c. 13) provides that all external affairs shall be conducted by the Secretary of State. His deputy for these affairs is Mr. Joseph Pope, C.M.G., C.V.O., who has for many years been engaged in the various external negotiations of Canada. The proposal met with general approval in Parliament.

On March 8 the Finance Minister laid on the table the Supplementary Convention between Canada and France to the Treaty of September 19, 1907 (ANNUAL REGISTER, 1907, p. 458). The Supplement made but one alteration in the original Convention-it excluded "animals in fat condition for butchering,'

but the condition of animals was to be decided on by the French authorities. The Treaty, including the Supplementary Convention, was passed by the French Senate on April 1, 1909, but the Canadian Parliament was prorogued on May 19 before the French Chambers had acquiesced. The acceptance by Canada had therefore to be postponed till the session of 190910. When the subject came up in Parliament again (Nov. 30, 1909) it was debated at some length with special reference to the exclusion mentioned above; but the supplementary agreement was accepted, without division, on December 1.

The financial Budgets of two years were included in the Parliamentary proceedings of 1909. The Budget for 1908-9 was delivered on April 20, 1909. No tariff changes of consequence were made. The population was estimated at 7,085,219. The surplus for the fiscal year 1907-8, closing March 31, was $19,413,054. The estimated surplus for the year ending March 31, 1909, was $1,500,000. The public accounts for the year ending March 31, 1909, which are always a commentary on Budget speeches, substantially confirmed the Budget Estimates. The surplus on the consolidated fund was $1,029,171. The capital expenditure, i.e. additions to debt, was $45,969,419. This expenditure was for railway subsidies, the Transcontinental Railway, public buildings, bonuses on iron and steel, binder twine, and petroleum, militia buildings, etc., and canals, all for development or protection of the country. The average rate of interest on the public debt had been reduced to 2:42 per cent. The bonds guaranteed by the Dominion are as follows:

1. The Canadian Northern Railway Company (cap. 7, 3 Edward VII., 1903). The guarantee is for the principal, 1,923,2871. sterling, and interest thereon at the rate of 3 per cent. per annum for fifty years. 2. The Canadian Northern Railway Company (cap. 2, 7 & 8 Edward VII., 1908). The guarantee is for the principal of 1,622,586l. 19s. 9d. sterling debenture stock and interest thereon at the rate of 3 per cent. per annum for fifty years from July 20, 1908, interest payable halfyearly, date of guarantee, October 21, 1908. 3. The Grand Trunk Pacific Railway Company (cap. 24, 4 Edward VII., 1904). The guarantee is for a sum equal to 75 per cent. of the cost of construction of the Western Division of the National Transcontinental Railway, but not exceeding $13,000 per mile in respect of the prairie section of the said railway. The amount of bonds issued and guaranteed is 5,200,000l., of which 3,200,000. was issued in September, 1905, and the balance in October, 1909.

The loans placed on the London market during 1909 were as follows:

In January, 1909, a loan of 6,000,000l. 3 per cent. bonds, due July 1, 1919, with option to the Government to redeem the whole or any portion by drawings at par on or after July 1, 1914, on giving three months' notice, was issued at 991 per cent.

in London for the purpose of meeting maturing obligations, to provide funds for the construction of public works, and for general purposes. Holders of these bonds have the option, up to November 30, 1913, of conversion into the existing 3 per cent. inscribed stock 1938, on the basis of 1101. of that stock for every 100%. bond. In July, 1909, a further loan of 6,500,000. 3 per cent. stock due July 1, 1950, with option to the Government to redeem at par on or after July 1, 1930, on giving six months' notice, was issued at 98 per cent. in London for the purpose of providing for the outstanding balance of the loan maturing January 1, 1910, and to provide for the advance of $10,000,000 (say 2,054,7941. 10s. 5d.) to the Grand Trunk Pacific Railway Company to assist in the construction of the National Transcontinental Railway.

The Grand Trunk Pacific Railway Company was granted a loan of $10,000,000 in aid of the completion of the prairie section of the railway, on the security of an issue of bonds at 4 per cent., secured by mortgage of the prairie section when completed, and by the guarantee of the Grand Trunk Railway Company. The proposition was much debated. The Opposition contended that the cost of the line had been understated at the outset, and that the security for the present loan was insufficient. Five resolutions were moved to that effect. After prolonged debate the Government resolutions were carried on May 4. The progress of the Transcontinental Railway during the year was great. The entire line was under contract; one of the officials announced (Dec. 22) that the western section of the road would be completed to the Pacific coast by the end of 1912. The eastern portion from Moncton to Winnipeg will be ready at the same

time.

The Hudson Bay Railway project was also beginning to assume importance. It had been long before the country, and a land subsidy was available (ANNUAL REGISTER, 1907, p. 452). The Federal Government was pledged to its early construction. Money had been provided liberally for surveys and reports. The latest report (Sessional Paper, No. 20a, 1910) affords a more encouraging view than heretofore, though it is pointed out that grain shipments would be practicable for only about two months in the year, from the early part of August till October 15; that at least nine ships per day would have to be loadedeach ship probably making two trips per season-in order to carry away 64,000,000 bushels of wheat; and that the only other immediate freight would be cattle and the usual package freight. Coal from Nova Scotia could probably be laid down at Port Nelson at a much cheaper rate than at present. Mr. M. J. Butler, Deputy Minister of Railways, reported that:

Equipment for thirty-two trains per day of the character outlined would cost about $9,000,000; and meant the providing of 108 train crews, 150 telegraph operators, 54 gangs of section men, shopmen, round house men, superintendents, train and yard

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masters-the greater number of whom were not likely to be required once the rush of the season was over. The railway, therefore, would seem to require to be worked by one of the large corporations, so that the men and rolling stock could be utilised the whole year. There is in Canada only one locomotive of the type described, and by using the largest freight engines now operated on western roads the train load would be reduced onehalf-and the capacity of the road in like measure. Under any circumstances, however, grain could be shipped at the Hudson Bay terminus as cheaply as at Fort-William; hence the saving possible was 5 cents per bushel, assuming insurance and freight rates to be equal at Montreal and Port Nelson.

The Budget for 1909-10 (Parliament having met on November 11) was delivered on December 14, being the fourteenth Budget presented by Hon. W. S. Fielding as Finance Minister. The figures for the year 1908-9, ending March 31, 1909, were, as given in the Public Accounts, Revenue $85,093,404, Expenditure $84,064,232; Surplus $1,029,171. The Expenditure had exceeded the estimate, so that an estimated surplus of $1,500,000 had been reduced as above. For 1909-10, the Minister held out a more cheerful prospect. As the financial year ends on March 31, 1910, the Minister had but the figures for eight months before him in December. In these eight months the revenue was $64,656,509, an increase of $9,541,282 over the corresponding period of 1908. He estimated that the complete year in March, 1910, would show a revenue of $94,636,687 with a probability of considerable increase. The expenditure for 1909-10 would probably not exceed $81,000,000; so that the surplus would be $16,500,000. The total capital expenditure, i.e., addition to debt, would be $35,500,000, a reduction of $13,422,161 from the previous year, besides a reduced expenditure on income of $3,064,232, a total reduction of expenditure of $16,486,393. In view of the flourishing state of the revenue it was proposed to charge to current revenue the cost of naval construction, also the sums payable in bounties. The total trade of the Dominion to October 31, being seven months of the fiscal year, exceeded the corresponding period of 1908 by $48,400,000. The total trade of 1908 (year ending March 31) was $566,887,770; the total for 1909 was $602,857,387. The total for the year ending March 31, 1910, was estimated at a still larger sum.

After the delivery of the Budget, another month's figures were published, showing the total trade of the Dominion to have been for the eight months elapsed $439,959,213, an increase of $62,037,973 over the corresponding period of 1908, while the Customs Revenue showed an increase in the same period of $8,210,069. During the same eight months the immigration showed a great increase, 150,256 persons having come in, of whom 71,988 were from the United States. The debate on the Budget was not concluded at the close of the year; but no amendment was expected.