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310   HISTORY OF eaAtiAhA.

tion arose, not from any objection to the scheme of government proposed, but from objection to the tin:nicial arrangements, and these, therefore, should now be mentioned. The collection of a revenue by means of a customs tariff was to be entrusted to the central government ; and out of this revenue subsidies were to be paid to the different provinces for the support of the provincial governments. The central government was also to assume the various provincial debts. The power to raise money by direct taxation was still to be retained by the provinces. Now it so happened that in the Maritime Provinces the revenues collected by customs duties (that is, by indirect taxation) were largely expended on works of local improvement—road-making, bridge-building, and the like—such as were paid for in Canada by direct taxation in each municipality. By giving up to the central government the power to collect a revenue by customs duties the Mari-time Provinces would be driven to adopt direct taxation, unless larger subsidies, proportionately, were paid to them than to Canada. The public debts, too, of these provinces were smaller irr proportion to population than the public debt of Canada, and this difference had also to be equalized by a further addition to their subsidies.

The Plan Before the Provinces.—All these difficulties were grappled with by the Quebec conference in a wise spirit of compromise, and the scheme they adopted was now to be laid before the provinces for their acceptance or rejection. Being in the nature of an interprovincial agreement, the plan must be accepted or rejected as a whole. After the close of the conference the delegates made a triumphal progress through Canada. There was much eating, drinking and speech-making, and every-thing appeared favorable to a speedy execution of the plan agreed upon at Quebec. The colonial secretary sent to the governor (Lord Monck) a despatch warmly approving of the project as set forth in the resolutions. The British and United States press spoke cordially of the wisdom of the provinces in agreeing to a union which would convert them from isolated communities into a powerful nation, rich in the resources of all combined. From the first there was no doubt about Canada's position. The adoption of the resolutions by her parliament was a foregone conclusion. But in the Atlantic Provinces a determined opposition arose, and two years of hot discussion were to pass before Canada, New


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