1. 19

588081109 not:

“Mp-unfit!”

undsr certain condi- dwagtggmitoba Pool Elevat- M; Saskatchewan Pool . ‘ _, Limited; m4 ‘m w", Limited. cs " mavaieir respective workinl. I u, l, m, commencement of l”! mat-retina uuon‘

‘ ‘h; O! ti“ Nd “gaunt; dlfldhd t0 U- me amount of working cap-

. showed that the proposed basis um not b9 g 581181000017 011B, . meremre, a subsequent order déouncii was issued establishing ' nts which the Do-

diic amou n wouid guarantee under cer- conditions.

_ amounts were:

virgin; Pool .. 81,250,000 icllewnn P001 . .. $139901“,

be, m, ,,,,,,,,, .. s 1,500,000

m; plan has functioned to the

“suction of all concerned and no

buiiy has developed 88411159 the

, dam revenue filnd." Unmulured Funded Debt

M, Rhodes furnished the House

8i last, and the annual interest charges thereon. The total amount of the unmatured funded debt he

IAVQ ll 82,5M,170,057 “p011 which,

the interest charges are 9127598486. He summarised the loan situation as follows: Payable in Canada .8l.8ai,-i51,0_20.85 Payable in Canada

and New York _l81,04_0,900.00 Payable in New York 210.000.000.00 Payable in London . 811.668.185.89

Total .. . . . . . . 2,564,170,057!!!» less bonds and stock of the above loans held as sink- ing funds

$2,387,324.01

Total .$2,501,782,733.23

External Trade

The Minister then dealt briefly with Canada's external trade. "Turning now to the matter of ax-

Debt increase (including special expenditure) suaposooo.

‘ Canada will balanu budget and ’meet all obligations. -

Ordinary expenditure $878,748,000.

Ordinary rsvenuu $827,719,000.

Unemployment relief and wheat bonus cost $49,282,000.

Wheat bonus will cost $11,000,000 as compared with 97,000,000 estim- ate. For “direct" relief Dominion contribution 1981-82 (major portion applying to Saskatchewan ught areas) estimated at $8,957,000.

Temporary assistance to prov- inces to meet maturing obligations in New York, $11,637,190.

Exchange-mainly premium on gold purchases from _mines, $3,035,- 100. Exchange payment offset on revenue side by credits $2,248,000 from sale of New York exchange and discount cn sterling purchased to meet Inndon requirements. Fur-

BudgetHighlig/z

run. CHARLOTTETOWN GUARDIAN

thcr credit ‘ ‘ exchange pay- ment through $500,000 realised in Purchase of sterling securities for sinking funds. Net expense on Premium, discount and exchange, $881,000: decline in taxation rev- enues in common with other coun- tries. ' ‘

Post office revenues will show increase of $1,500,000 due to raise in Postage rates and use of stamps for excise.

1982 C. N. R. estimates $61,500,- 000, eastern line requirements $5,- 217,000.

Favorable trade balance increas- es. Strength of banking and finan- cial institutions manifested.

Canada met all external debts on due dates.

Obtimism for Imperial Economic Conference in Ottawa.

Expectation of new trade treaty with France.

temal trade," he said, "F ’ has continued to share in the pronounc- cd shrinkage, both in volume and value, that has marked the com- merce of the world. The following is a statement of Canada's. foreign trade for the first eleven months

tomcat of the unmatured

deg debt of Canada as at Mardnof the last fiscal year, as compared

ih a sia reuse imports . . . . . . pa,“ cauuda produce . . . . . . .

exports, foreign produce

, , . . . . , .........,......--...

H1181

$ 831,232 $ 521,056 $ 310,176 744.669 536,595 208,074 18,038 8.951. 6,087 $1,591,939 $1,067,602 8 524,337

m, iigurcs indicate a reduction . ihs dollar value of total trade of roxhnately 33 per cent, which ponds fnlrly closely to the w-gge fail in world trade.

Favorable Trade Balance

Notwithstanding this unfavorable _.- iof our external commerce, a qy distinct improvement has . 31111868111 the conversion of an ... avourable into a favourable bal-

. . starting last June, our .ex- .. commenced to exceed the irri- .. L1 and a surplus of exports over poi-ts has continued month by nth to date. Taking ‘the last el- uu months‘ figures as a basis, the . hum has been favourable to the

tent oi $25,491,000 as compared ith an unfavorable balance of

10,520,000 in the previous corres- .. ding period.

GITAWA. Ont, April 6.—Speclal i. r duty rates on repair parts to . .. implements are extended for

other year in the budget brought

i» in the House of Commons to- . by E. N. Rhodes. Minister of ~- ance- a

‘lhese special tariff rates were ut into effect in the budget deliver- i - by Prime Minister R B- Bennett last year. The schedules were t0 ver one your only, and today's budge! udcnds the special rates for a further twelve months.

Financhl Summary 1931-82

Ordinary expenditures in 1931-32 were $19,000,000 less than estimated, Malling $378,700,000.

Ordinary revenues greatly reduc- Id by lesson of lower yield from tax- nton were $327,700,000.

Deficit 0n ordinary account 1931- 11851000000.

EXPtnditm-cs not provided from income:

599cm (not) including unemploy- ment and farm relief $48,000,000; upital $516,900,000; loans (non-ac- tive) 9000.000. Resulting increase = debt $110,500,000.

‘pendltures on unemployment ilrm lelicf 1931-32 $88,250,000? Ihest bonus $11,000,000,

Government ended year with cash balance of $53,000,000,

Eslhiated expenditure, ordinary I00 capital in 1932-33 $379,500. . I reduction from the previous year 91135400000 after absorbrlg 8n in- "W 01 $12,100,000 la interest on Mlbllc debt.

Mimlllble expenditures of the Munment on the usual services have. under the estimates for 10a:- ii been reduced saaaoaooo or 2o per w" mm the previous year.

Revenues under existing taxation Are estimated at $318,000,000 and or- ""101 Hlpenditures

New taxation, will, it is estimated. mifavoooco. balancing current “mymand leaving a surplus of mmlillon is noi, fully made from muss for capitaloxpenditurss or

' “malevolent relief or railway ‘I " ‘110011811 any improvement

m ""14 be immediately m7": 1h increased yields from “m” a? ‘mild correspondingly ma,‘ 43° Position on all

The Isles ‘h:

"mils tomorrow the calm sax & u’ W0 DQ100119. The jump from ‘my?’ '1! Percent. announced in ,,,_ ' ""980 will. it u anticipat- u m‘ 9 my considerable m-

m‘ "‘ ""1100 by u» end of m.

once, did notlgive go the house a separate estimate of the amount expected from this productive tax, but by the end of the present fiscal year, it will be an important facmr in helping to balance the budget.

Last year the government jumped the sales tax from one in four per- cent, The increase was announced by Premier Bennett when he deliv- ered the budget speech on June 1. Ii became effective immediately. In the preceding year, the tax had been reduced from two to one P0109110

The increive in the sales tax last_ year accounted for an addition to the revenue of approximately twenty million dollars as compared with the previous year. Sales tax yielded $41,271,000 in comparison with col- lections amounting to $20,784,000 in the preceding fiscal year when the tax was one percent. At that how- ever, the returns wer not as great as they would have been ‘had the tax gone into effect at the opening of the fiscal year. Two months had gone by before the increase brcame effective, and the result was a low- er return than would otherwise have been secured. This time. the maximum amount will be obtained- The increase becomes effective to- morrow and no time will be lost in gathering in the revenue resuliinB from the increased schedule. The sales tax has produced considerable amounts for several years. The Min- ister quoted figures which showed that it produced $72,100,000 in the fiscal year 1927-28, $63,846,000 in 1928-29, 844,859,000 in 1929-30, $20,- 784,000 in 1930-31 and $41,271,000 in the fiscal year just closed- Under the previous administration the tax was gradually whittled down in one percent. But business conditions kept the return up fairly high. Col- lections in 1930-81 were the lowest during the past five years.

Additional revenue from sales tax this year will come as a result of the adjustment of the exempt and partially exempt 11st of commodit- ie.s which formerly prevailed. The Minster save to the House a list of these articles which he stated were not primary products and should, under present conditions. carry a proportionate share of the tax burden. Also the new rates? of taxation. it is announced, will apply to all goods taken out of warehouse for consumption on and after April 7 "and to have applied to goods pre- viously imported for which no entry for consumption was made before that date." This, it is anticipated. will preclude the possibility o! P140‘ ing orders fora considerable quan- tity of goods Pfliir to the tax be- coming effective such goods to be delivered at some future date on the instalment plan, In the past. such method it is contended, was sometimes employed to evade Psi!- ment of the increased tax-

TAXES

___.._..

(Continued from Page 1)

cents to three cents on amounts “P to $100, and six cents over $100.

A five cent 18X ll P180011 W m9‘ gram, cables and radio messages, and long distance telephone calls.

On railway sleeping car berths. the tax will be ten percent with a minimum of 25 cents, and ten cents on chair car. These special taxes on cheques, tickets and rneslflstl will become effective May 7

in view of thenear apivwwh °1 the Imperial conference, the Min- am- mm, no change is made!"

~77‘ lliliahrclnn-

cilstcma tariff, except on one ltemoi m‘.

relating to extension to March 81, 1983, on special rates on repair parts for farm implements.

OTTAWA, Ont., April ii-Increns- cs in therates of tax payable on personal inco and n reduction in‘ exemptions were announced in the House of Commons this after- noon by E. N. Rhodes, Minister of Finance. The changes will apply to incomes of 1931. Penalty provisions for improper returns are being strengthened.

Corporation Tax

Taxation on incomes of corpor- htions and joint stock companies is raised to eleven per cent. This change likewise will effect 193i re- turns. .

"It is proposed," the Minister announced, “to raise the rate of taxation on incomes of corporations and joint stock companies to 11 per cent to take effect in the 193i tux- ation period. Under the act at pres- ent, a corporation whose financial year is not coincident with the cal- endar year is allowed until April 30th of the following your to pay the tax. It is proposed to amend the act to provide in such cases for the return of income and payment of the tax within four months from the close of the fiscal period. This will have the effect of accelerating the collection of the tax from those corporations whose fiscal periods do

A further amendment to the In- come War Tax Act will repeal the provisions relating to family cor- poration.

"In respect of the tax on person- al incomes, it is proposed to repeal the deduction of 20 per cent now allowed fro mthe tax payable under the established schedule of rates. In addition all taxpayers, including corporation, in receipt of not in- come in excess of $5,000 will be re- quired to pay a surcharge of 5 per cent of the amount of tax otherwise payable. The personal exemption, where heretofore $3,000 will be rc- duced to $2,400, and whore hereto- fore $1,500, will be reduced to $1,- 200. No change is to be made in the exemption for dependent child- ren. Hereafter the exemption grant- ed in respect of income from unnu- ity contracts will be $1,200 instead of $5,000. This will bring the ex- emption into conformity with the Annuities Act as amended in i981.

“The penalty provisions in the income war tax act will be amend- ed so as to provide that in cases where investigation reveals that a taxpayer has deliberately under- stated his income, the amount of income not disclosed will be added in double the amount and the tax assessc‘ thereon. The deccase of the taxpayer will not avoid the tax penalty. '

"The changes in the exemp- tions and in the rates of tax pay- baie will apply to incomes of 193i.

A Balanced Budget

OTTAWA, Ont., April S-Canada will completely balance her budget on the usual current governmental services this year. In delivering his budget speech in parliament today E. N. Rhodes, Minister of Finance, declared this was the considered view of the government after a cen- sideration of revenues and expend- ltures.

"Without building too greatly on help from this source in the pres- ent year," Mr. Rhodes asserted, "it is the considered view of the gov- ernment that reductions in expend- itures, on the one hand, and pro- posed additions to the‘ taxation rav- cnues on the other, will, in the fin- al outcome, represent o. complete balancing of the budget on the usu- al current governmental services, while, unfortunately, the estimates of revenues, which are conserva- tively based having regard to the present conditions of business, do not cover the special expenditures cn unemployment relief nor the

more indirect liabilities arising out

not end with the caldendar year.'

National Railways, it is neverthe- less, in our Judgment as substan- tial a. step in the direction of pro- viding currently for every respon- sibility of the government as would be in the public interest to make effective in any one year under ex- isting conditions.

ation and reasonably stable condi- tions, it was anticipated, the fin- ance ministcr stated, that the rev- enues in the fiscal years 1932-33 “will amount to $319,100,000 from the following suorces; Customs duties $100,000,000, excise duties $45,000,000 excise taxes $70,000,000 income tax $48,000,000, post office $32,000,000, interest on’ investments $11,500,000, other sources $21,600,000. Total $319,100,000.

Mr. Rhodes continued: “The or- dinary requirements for govem- ment services in 1932-33, as provided for in the main estimates, together with certain special and statutory amounts such as for old age pen- sions and payments to railways un- !der the Maritime Freight Rates ‘Act, are estimated at $369,900,000 and, in addition $9,600,000 is voted for capital expenditures. “A very considerable contribution to the balance oi’ the budget has a1- ready been made in the reduc- tions of appropriations which have been recommended to the House for the current year. Leaving aside the extra/ordinary expenditures on wheat bonus and unemployment relief. the expenditures in the fis- cal year just ended are estimated at $404,900,000. In comparison with which the estimated expenditures '01 $379,500,000 for 1932-33 show a !reduction of $25,400,000 after ab- .sorbing an increase in interest on

the public debt of $12,700,000.

"The perplexities which ordinar- ily attend the curtailment of ex- penditures on governmental serv- ices are rendered much greater in the present instance by reason cf the reductions which had already been effected in the ordinary and capital expenditures, and particu- !larly by reason of the increasingly Ysmallcr proportion of the expend- iiturea which are controllable. Thus 'in the proposed expenditures for !1932-33 the fixed and in general ‘uncontrollable amounts, including ‘debt charges, pensions and ex-sol- diers welfare, provincial subsidies, and similar items, aggregate ap- proximately $236,000,000, leaving only $143,500,000, or 33 pcr cent un- der the classification of control- lable. In the fiscal year Just end- ed, the corresponding figure of con- trollable expenditures was $179,300,4- 000.

It will therefore be seen that the reduction which it is proposed i0 effect this year in the controllable expenditures is $35,200,000 which is theequivalent of 20 pcr cent. These figures have been cited to illustrate the drastic economies which the government has felt it necessary to institute, having regard to the de- pleted returns from taxation.

With revenues estimated at $319,- 100,000 and the usual current ex- penses of government amounting to $800,900,000 it is clear that increas- es in the rates of taxation are ne- cessary.

Accordingly it is proposed to recommend measures which will, it is estimated, increase the rev- enues by $55,000,000. thus balancing the current expenditures and leav- ing a surplus of $4,300,000. If ex- pectations are realized, this sur- plus would serve to cover a large part of the capital expenditures as well. Even a. slight improvement in price levels, and the general volume of business would of course, he re- flected immediately in the returns from customs and excise taxes, and our budget position would be cor- rcspondlngly improved.

"In proposing these , additional measures of taxation, sideration has been given, on the one hand. to the ability cf our people to bear the extra burden, and on the other. to the absolute necessity of placing

financing of the Canadian

our financial house in order.

ts TNCWI Fertilizer And Potato Co.

Is Incorporated

New Company,‘- Capitalized At i $100,000, ,Will Be Under Man- agement Of G. McNeely.

Notice appeared in the Royal Gazette of April 2nd announcing the formation of a. new Corporation, capitalized at $100,000, to be known as the Associated Shippers Inc. of Prince Edward Island.

Associated with this firm are the following-Messrs John A. McDon- ald, Cardigan; Matthew d; McLean Limited, Souris; Austin A. Scales, Freetown; Poole 8a Thompson, Lim- ited, Montague; Joseph Read 6r Company, Summerside; Simmons a McFarlane Freetown; Col. G. El- liot Full, Iiunter River; Russell C. Clarke, Mount Stewart; W. N. Wil- son, Charlottetown; M. G. McNeelly, Charlottetown.

The Company proposes to deal. namely, in Potatoes, Fertilizer and Bags.

One of the undertakings of the

Based upon present rates of tax- inew Corporation is to offer a con-

tract deal whereln they agree to take potatoes in payment of fertil- izer, through the merchants of Prince Edward Island. The

Finance Minister's Appeal

"Bearing fully ,in mind the fact that, in common with the whole world, we have suffered while not in equal degree at least in substan- tial degree as the result of u. de- pression universal in scope and un- paralleled in magnitude; realizing also the anxieties and burdens of the people and the manifold diffi- culties resulting from the frying period through which we are pass- ing and appreciating how desirable it is that we should endeavor to the fullest possible extent compatible with the public interest ‘.0 cull for n5 little further sacrifice as poa- slble at the same time we would be recreant to our duty if we failed to face our problems with de- termination and at whatever sac- rifice, fully meet our financial ob- ligations, balance our budget and preserve our national credit in the eyes world.

“This course may result in hard- ship. It may entail sacrifice. But in the long run it will result in less hardship, and will call for less sac- rifice than that which would flow from a policy less courageous."

OTTAWA. Ont, April 6—(By the Canadian Press)--An increase in sales tax from four to six percent was announced in the budget speech of E. N. Rhodes, Minister of Finance, in the House of Commons this afternoon. A limited adjustment of the exempt and partially exempt list in the case of a number of articles not primary products which it is believed should, under pres- ent conditions, carry a proportion- ate share of the burden takes place Chief items to be taken from the exempt list are bakers cake and pies, lard compound and sim- ilar substances made from animal or vegetables ‘stearine or oil. Ice cream, processed milk foods and cereal foods under customs items 45 and 46 and usual coverings for goods not subject to the sales tax." Biscuits are to be raised from the half to the full rate, Mr. Rhodes stated. Additional revenue would be obtained from this source, he added.

The two per cent increase in sales tax and the readjustment of the exemption list are in accordance with forecasts.

OTTAWA, Ont., April 6-—A tax of one percent of net premiums of insurance companies authorimd to transact business in any prov- lnce of Canada, other than lifc, marine and farm mutual was an- nounced in the budget speech of E. N. Rhodes. Minister of finance in the House of Commons this af- ternoon. "The tax upon insurance premiums passed at the last ses- sion was not put into effect by proclamation as provided by the statute, owing to difficulties over the jurisdiction of the Dominion and provinces in the matter of in- surance, Mr. Rhodes remarked. "It is now proposed, under the special war revenue act, to‘ a tax of 1 percent of net premiums of insurance companies authorized to transact business in Canada or in any province of Canada. other than life, marine and farm mutual. This tax was in force from 1915 to 1920. British and “foreign companies not so authorized but maintaining de- posits with the Dominion, will also be assessed i percent of not prem- iums recelved in Canada. Canadian policyholders who insure their prop- erty in Canada with companies oth- er than those mentioned above, will be charged a tax of 15 percent of

the gross premiums payable on such insurance. _'

farmer is guaranteed a definite minimum price for the quantity of potatoes required to pay oil‘ his fer- tilizer bill. His potatoes are then pooled and marketed. When the pool is closed out the Associated Ship- pers Inc. take a. commisison for financing the deal, and pay back to the farmer whatever proceeds are left, after the fertilizer bill is taken care of.