On January 29 the Estimates for the year ending March 31, 1915, were tabled. A general reduction of $12,000,000 was a marked feature. The total was $190,735,176; there was a decrease on the Naval item of $150,000 and of $71,905 on Militia. Subsequently, on May 27, an additional sum of $17,438,000 was brought down, making the total $208,173,176.
On February 10 the Bill for the Redistribution of Seats in the House of Commons was brought down by the Prime Minister. This had been looked for as probably the most important measure of the session. It had been in the hands of a large Committee for some weeks, and had been reported unanimously. The general result of the Act (Chap. 51, 1914) is as follows: Ontario is to have 82 members; Quebec 65; Nova Scotia 16; New Brunswick 11; Manitoba 15; British Columbia 13; Prince Edward Island, 3; Saskatchewan 16; Alberta, 12; Yukon Territory, 1; in all 234 members. On the existing representation, Ontario lost 4 seats; Quebec (under the British North America Act of 1867) remained at 65; Nova Scotia lost 2; New Brunswick lost 2; Manitoba gained 5; Saskatchewan gained 6; Alberta gained 5; British Columbia gained 6; Prince Edward Island lost 1; Yukon remained with one seat as before. The figures show how population and political power are shifting to the West.
On February 12 the Minister of Railways laid on the table of the House the report of a Commission to investigate the construction of the Transcontinental Railway, under the previous Government. The report was long and sensational in character. The conclusions of the Commissioners were substantially that the Transcontinental Railway Commission, the Grand Trunk Pacific Railway and those having charge of the construction did not consider it desirable or necessary to practise or encourage economy in construction, and that, without including the money unnecessarily expended in building the railway east of the St. Lawrence River, $40,000,000 at least was needlessly expended in the building of this road. The cost of the unnecessary Eastern Section was estimated at $35,000,000; and thus the sum total of undue expenditure was stated at $75,000,000. The Eastern Section of the road was held by many persons on both sides to be a needless duplication of the Intercolonial Railway. The road was taken from the control of the Special Commission which had thus over-expended on it, and was completed and finally handed over to the Minister of Railways by Major Leonard, C.E., whose successful labours were highly appreciated by the public.
The Opposition were not satisfied with the report of the Commission, and on March 25 the former Minister of Railways moved, declaring that the Report was "so wilfully partisan and misleading as to be wholly unreliable," that the manifest object of the Commissioners was "to misrepresent for party purposes rather than to investigate in the public interest, without regard to the serious consequences to the country or this great national undertaking; and that for the appointment of such Commissioners, and for accepting and endorsing their report, the Government deserved the severe censure of this House." This motion was vehemently debated till Thursday, April 2, when it was rejected by 105 to 67.
On April 7 the Budget speech was delivered by Hon. W. T. White, the Minister of Finance. Many minor tariff changes were announced, but in general, as indicated by the Minister in his speech on the Address (p. [470]), the Protective policy was maintained. The demand made from various quarters for "Free Wheat" was refused. The Government asked for power to increase the existing surtax to 20 per cent, if needed. The duty on agricultural implements was reduced from 17½ to 12½ per cent. The large revenue and unusual surplus of 1912-13 was not maintained; and the revenue for the year ending March 31, 1914, would therefore be less and a large capital expenditure would have to be provided for. The sum of $56,404,231 had been borrowed on satisfactory terms. (The events of the next few months, of course, confounded all calculations. The revenue to the end of December, 1914, was only $99,635,943, as against $127,571,762 at the same date in 1913, a shortage of $27,935,819. The total net debt to the end of 1914 had increased by $73,182,060. The borrowings of the Government under the authority of the legislation of the War Session in August must have been large; but no full account would be given until the presentation of the Budget of 1915.)
The trade of the Dominion was, of course, subject to some fluctuations. The total aggregate trade of the year ending March 31, 1913, was $1,085,264,449. For the year ending at the same date 1914, the amount was $1,129,744,725. For the seven months of the fiscal year 1914-15 (i.e. from March 31 to Oct. 31) the total aggregate trade was $640,171,557. The effect of the war on the aggregate trade cannot be seen accurately till the Budget is delivered or the Customs statistics published in the spring of 1915.
The debate on the Budget was not concluded before the Easter recess. On the reassembling of the House on April 15 it was resumed, and continued till April 23, when the leader of the Opposition moved an amendment declaring that "in view of the prevailing economic conditions of the country, it is advisable to place wheat, wheat products, and agricultural implements on the free list, and, without doing injustice to any class, steps should be taken to alleviate the high cost of living by considerate removal of taxation." This amendment was defeated by a majority of 42.
The serious question of relief to the shareholders of the defunct Farmers' Bank was the subject of prolonged debate. On April 24 it was announced that the Government would satisfy all the depositors. The bank had been started on insufficient capital; and official recognition was given to it on what turned out to be false pretences. The results were disastrous, and the general manager was prosecuted and imprisoned. The new Government issued a Royal Commission to investigate the affairs of the bank, and, as a result, decided to pay the depositors. Resolutions and a Bill based on them were carried in the Commons by the usual Government majority. But on June 8 the Bill was thrown out in the Senate by a non-party vote of 32 to 25, several Government supporters voting against the measure.
One of the most serious questions of the session related to the affairs of the Canadian Northern Railway. Aid had become necessary to enable the company to carry on its great and varied industries. The Government of Canada had already assumed large responsibilities in guaranteeing the mortgage debenture stock of the company, and in payments for construction. On April 28 the Government brought down its proposals for relief (see Journals of Commons, 1914, p. 489; and Hansard Debates, May 13, sqq.). The proposal of the Government was to guarantee the payment of principal and interest on securities of the company to the extent of not more than $45,000,000; taking security by means of a Trustee and Trust Deed over all the property and interests of the company and all its subsidiary companies. Some reluctance to agree to these terms was visible among the Government's supporters, and two prominent Conservatives refused to support them. Some time elapsed before the complicated series of statements made by the company, including railways, steamships, bonds, shares, terminals, etc., could be understood (see Votes and Proceedings, 1914, p. 859). The total liabilities of the company to the Government were calculated at about $197,000,000. The actual debate began on May 13. The Prime Minister's speech was marked by the quotation for public use of messages of approval from the Premiers of Alberta, Saskatchewan and Nova Scotia, all Liberals, but in whose Provinces the Canadian Northern had large interests. The "six months' hoist" (equivalent to rejection) was moved by Mr. E. M. McDonald for the Opposition. The debate was maintained till May 19, when the Opposition motion was rejected by 111 to 64. In Committee various other amendments were moved, all of them defeated by majorities of from 40 to 44. A Bill was introduced based on the Government resolutions; it was passed in the Commons on June 2 by 85 to 38; and in the Senate on June 9 by a non-party majority of 40 to 17.
On June 1 notice was also given of a guarantee of interest on $16,000,000 bonds of the Grand Trunk Pacific Railway to aid in the completion of the road, the Government taking sufficient security. Owing to the outbreak of the war in August, these various guarantees are understood to have been of little value on a money market where all available funds were wanted for war purposes; but the actual results had not been made public at the close of 1914.