Whoever may compose the Local Government, I think they must see the importance of the lumber trade, and will do what they can to foster and encourage that which is essential to the good of the whole country.

If a check is in any way put upon the lumber trade, as the consequence of its being placed under the separate control of each local government, it would be a result much to be regretted.

Honorable gentlemen composing the Government will permit me to repeat that our lumber trade deserves their earnest and best attention on account of the employment it gives to so large a number of persons, the way in which it swells the exports of the country, the market it affords for the produce of the agricultural portion of the community, and the manner in which it forwards the settlement of our wild lands.

in regard to the export duty on the lumber of New Brunswick, is it to be applied, as I understand it, to the local revenue of that province ? Then, as to the stumpage duty on that portion of the Crown domain appertaining to Lower Canada, is that to be applied to the purposes of the Local Government of Lower Canada ?

The House understands, of course, that the Crown lands of the provinces are retained under the Confederation scheme by each individual province. It was found necessary that they should be retained in order to provide each province with the required funds to carry on the local government. In the province of New Brunswick the duties that are levied in Canada as “stumpage dues” on cutting down timber, are not levied in the woods but collected at the ports as export duties, this being in that province a more convenient and less expensive mode of obtaining revenue from the timber trade. Now, the honorable gentleman will see that if we do not allow the Local Government in New Brunswick to collect these dues in this way, the revenue which is derived in Canada from ” stumpage dues,” would be lost to New Brunswick. That is the reason why the exception he refers to was made. In the same way, with reference to Nova Scotia, was allowed the royalty on coal, that is the percentage of the product of the mines reserved for the use of the Government, which is collected as a duty out the export of the article. There also the export duty is reserved as a source of revenue to the Local Government, it being necessary in both cases that they should have the advantage of their territorial revenue in the same way as the local governments in Canada, which will collect the same revenue in a different way. At the first glance it may seem that this clause gives especial advantages to the Lower Provinces not conferred upon the local governments here, but this is not the case.

coal and other minerals.” That, it appears to me, is leaving very valuable material to be subject to taxation by these local governments, for they comprise a very large proportion of the exports of the country. This is giving a great preference to the eastern provinces in regard to powers of taxation.

HON. MR. REESOR—As no one has taken the floor to continue the debate, I beg to enquire of the Honorable Commissioner of Crown Lands why it is that certain export duties are allowed under this scheme to be collected by the local governments in New Brunswick and Nova Scotia, but which in Canada are collected by the General Government ? It is part of the forty-third resolution, which reads:—”The local legislatures shall have power to make laws respecting the following subjects: Direct taxation, and in New Brunswick the imposition of duties on the export of timber, logs, masts, spars, deals and sawn lumber; and in Nova Scotia, of

The correct interpretation of the clause would, however, leave to the General Government the power of levying a duty on exports of lumber in all the Provinces except New Brunswick, which alone would possess the right to impose duties on the export of timber.

He might remark that in the published statement it was said the General Government should not have the right of imposing duties on exports of lumber, coal and other minerals, but the understanding was that the clause should be limited in the case of timber to the Province of New Brunswick, and in the oas3 of coal and other minerals to the Province of Nova Scotia. The reasons for this prohibition were that the duty on the export of timber in New Brunswick was in reality only the mode in which they collected stumpage.