PROSPERITY IN CANADA.

Manawatu Herald, Volume XXXVIII, Issue 1546, 4 May 1916, Page 2

PROSPERITY IN CANADA.

THE new Canadian Budget contains several features of interest. The -Minister for .Finance, Sir Thomas While, pointed out that the predictions a year ago, that special taxation would result in a revenue of £30,000,000, had been more than realised. By the end of the Jiscal year he anticipated a total revenue of £34,000,000. During the past year no new public works had been initiated, and (he result was a decrease in capital expenditure of £1,400,000. The policy of economy followed resulted in a. decrease of ordinary account chargeable to revenue of £2,(100,000. There had been a financial improvement in the position of the Dominion outside war expenditure, amounting to £11,400,000. A measure would be introduced for further war expenditure, which totalled £31,000,000. The general position of the Jinances was such that, while revenues were increasing and ordinary and’ capital expenditure decreasing, war expenditure . was mounting rapidly. As the result of the successful notation of the £20,000,000 domestic loan it had been possible to jdaee £10,000,000 to the credit of the Imperial Government in payment of munitions accounts in Canada. Since the beginning of the serious decline in sterling exchange last June, the Government had been able to finance all war expenditure in Canada without the assistance of the Imperial Treasury. (Summarising the financial situation, Sir T. White said that outside war expenditure the Dominion had a surplus of £0,000,000. At (he end of the year the National Debt would stand at £110,000,000, an increase during the year of £20,200,000. The .Minister remarked on the striking economic develop-

nient of the Dominion during the year. The bountiful harvest, combined with the demand for war material, supplies, and munitions, had given a great stimulus to trade and industry in the Dominion, whieh not withstanding the war, was experiencing a high degree of prosperity. The adverse trade balance three years ago of £(50,()()(),000 had been lhanslated into a fa-vourable balance of £40,000,000. In the

coming year. Sir T. White said, the Oovernment will continue to make all possible reductions in ordinary and capital expenditure. lie thought that in the coming- year they might count on a surplus of £7,000,000, which would be applied to war expenditure, leaving £43,000,000 to be borrowed.