In consideration of the transfer to the general parliament of the powers of taxation, an annual grant in aid of each province shall be made, equal to 80 cents per head of the population as established by the census of 1861, the population of Newfoundland being estimated at 130,000. Such aid shall be in full settlement of all future demands upon the general government for local purposes and shall be paid half-yearly in advance to each province.
The system of provincial subsidies has often been denounced. The delegates may have thought that they had shut the door to further claims, but the finality of the arrangement was soon tested, and in 1869 Nova Scotia received better terms. There were increases in the subsidies to the provinces on several subsequent occasions, and no one believes the end has yet been reached. The growing needs of the provinces and the general aversion from direct taxation furnish strong temptations to make demands upon the federal treasury.
The conference, after adopting the seventy-two resolutions embodying the basis of the union, agreed that the several governments should submit them to the respective legislatures at the ensuing session. They were to be carried en bloc, lest any change should entail a fresh conference. The delegates made a tour of Canada, visiting Montreal, Ottawa, and Toronto, where receptions and congratulations awaited them. Their work had been done quickly. It had now to run the gauntlet of parliamentary discussion.