July 17, 1917

EXTENSION OF THE TERM OF PARLIAMENT.

MOTION BY THE PRIME MINISTER FOR ADDRESS TO HIS MAJESTY.

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Rt. H@

of the Lords, Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

1. Notwithstanding anything in the British North America Act, 1867, or in any Act amending the same, or in any Order in Council, or terms or conditions of Union, made or approved under the said Act, or under any Act of the Canadian Parliament, the term of the Twelfth Parliament of Canada is hereby extended until the Seventh day of October, 1918.

2. This Act may be cited as the British North America Act, 1917, and the British North America Act. 1867 to 1916, and this Act may be cited together as the British North America Act, 1867 to 1917.

All of which we humbly pray Your Majesty to take into your favourable and gracious consideration.

He said: In rising to present this motion to the House, I beg to call to the recollection of honourable gentlemen that on the 8th of February, 1916, I presented a similar motion. That motion for the extension of the term of Parliament from 7th October, 1916, to 7th October, 1917, was unanimously adopted at that time. In the speech from the Throne this year reference was made to a similar resolution, which would extend the life of this Parliament from the 7th of October, 1917, to the 7th October, 1918. Accordingly, the resolution which I now have the honour to propose was placed upon the Order Paper in the latter part of May, and it now becomes my duty to present it to the House, in order that it may be considered and dealt with.

In my judgment, the reasons for proposing this motion are quite as strong today as they were in 1916, and perhaps stronger. They are fully set forth in the remarks which I addressed to the House at that time. I need only summarize them now. In the first place, there would be, consequent upon a general election, disunion and discord throughout this country. There has, up to the present time, been at least a seeming unity. Outside and inside of Parliament men have worked together without regard to party or race or creed. I believe that party political questions have not been -tfery much in the minds of the people during the last three years, and I would hope that we might, on this occasion, arrive at some conclusion which would prevent the controversy and distraction consequent upon a general election. More than that, the minds, the thoughts, the energies of the people would be diverted and turned aside from the supreme purpose of aiding in this war, and would be concentrated on political issues of relative insignificance. In short, a general .election would leave, at least

might leave, a divided nation. Besides that, I desire to emphasize the fact that the time and the energies of the ministers of the Crown during a general election would necessarily be diverted from the [DOT]conduct of our country's participation in the war to the activities of a political campaign. It goes without question that members of the Government could not remain silent under attack. They would be obliged to speak and to use their best efforts to justify themselves and the administration for which they are responsible. In short, they would be obliged to take one course or the other; either to devote their energies largely to the necessities of a political campaign, or to let that campaign take care of itself, and continue, as they have been doing in the past, to devote their entire energies to the duties which are imposed upon them by the necessities of the war.

More than that, there is the fact that we have about 300,000 men overseas at the present time. It is impossible for any one of us to anticipate with any reasonable degree of certainty what proportion of those men would have the opportunity of exercising their franchise,, and what proportion would not have that opportunity. That would depend altogether upon the character of the operations in the field at that particular time. These men are the best elements of our population. They assuredly have a right to be heard in the selection of a parliament which will control the affairs of this country during the next five years; and, indeed, I might ask, what right would we have to entrust the affairs of this country for five years to a Parliament in whose selection these men might have so comparatively small a voice.

More than that, I believe that the discussion of political issues, the intrusion of party politics upon the gallant and heroic men fighting our battles at the front and walking daily hand in hand with death, would be regarded by them as odious and indeed insulting.

There is another consideration I must place before honourable gentlemen of this House, and to me it seems of some significance. Very eloquent appeals have been made by honourable gentlemen, chiefly, I think, from the other side of the House, that before the Military Service Bill, which has been under the consideration of Parliament for some time, shall be put into operation, there shall be a united and earnest effort of all parties and

JUL'i 17, 1917

all interests in this country for the purpose of endeavouring to obtain by voluntary enlistment the reinforcements which we seek to raise by the Military Service Bill.

I have listened to those appeals with a great deal of interest. I have given very attentive thought to them.

I should be willing to give them every consideration consistent with the certainty of providing the necessary reinforcements for the Canadian troops at the front, but I do not understand how it would be possible to have a united and earnest appeal of that nature, or how it could possibly be effective, under the imminence of an approaching general election. I hope, therefore, that hon. gentlemen, in coming to a conclusion upon the resolution which I am now proposing, will hear that in mind. The unity which would be necessary to make that appeal possible or effective could not be expected during a general election, or during the imminence of a general election; and so it would seem to me that if an election is forced upon the country at the * present time, such a proposal must be abandoned.

As to precedents, I alluded to them when I spoke in this House on February 8, 1916. The Parliament of Great Britain has extended its life on three successive occasions, and its term now stands extended until November 30, 1917. New Zealand has

extended its parliamentary term to December 19, 1918 - a very long extension. Australia was precluded from carrying out an extension by disturbing political conditions which unfortunately prevented her representation in the Imperial War Cabinet. I referred, in speaking on the motion of last year, to the precedent in Great Britain, when in 1716 a Parliament which had been elected for only three years, extended its term to seven years. In every self-governing nation of this Empire since the commencement of this war it has been found impossible to preserve the same regard for constitutional conventions as in time of peace. Extraordinary powers have been conferred upon the Governments of each of these nations by their Parliaments, and indeed, hon. gentlemen in this House know that here in Canada powers of a very extensive character have been conferred upon the Governor'in Council by the War Measures Act of 1914, an Act which, reposes in the Governor in Council practically all the powers that could be exercised by Parliament under the British North America Act, except the power of taxation and of appropriation of public revenue.

It may be urged that this proposal involves an alteration of the constitution. 1 regard it rather as a temporary suspension of but one feature of the constitution. Surely it is not a very serious step, for it merely provides that in Canada during the necessities of the war we shall have a parliamentary term of seven years instead of five years. Great Britain had a seven year term for her Parliament during a period of more than 150 years, and I am content to accept in that connection the view expressed by my right hon. friend (Sir Wilfrid Laurier) who in speaking on this motion in February, 1916, said:

It is not proposed here to alter the principle of the constitution. It is not proposed to override the control which the people have over Parliament. It is simply proposed to suspend for the time being the operation of the co-n-stitution. If it were proposed to make away altogether with that principle which is embodied in the Constitution, certainly I would oppose such attempt with all my might. But no such thing is proposed. This measure simply proposes that the constitution shall be suspended for twelve months, at the expiration of which time it will resume its full force.

It is not necessary, I am sure, that I should dwell upon the gravity of the situation with which this country, the whole Empire, and, indeed, the whole world, are presently confronted1. When I spoke in. this House on the 8th of February, 1916, we had sent 125,000 men overseas. To-day, our casualties are rapidly approaching that figure, and since my return from Great Britain on the 14th of May last, just about two months ago, they number 12,000. Since the extension of the term of Parliament sanctioned on the 8th day of February, 1916, Canada has sent no fewer than 200,000 men across the ocean to fight for liberty and civilization. We must realize, in dealing with this resolution, that our country, in common with the whole Empire, is facing a supreme test1. The existence of the Empire, its institutions, and liberties, are in peril. More than that, the foundations of civilization itself are endangered.

It would be impassible to overstate the transcendent issues which are hanging in the balance, and I am content to have them portrayed in the eloquent words which my right hon. friend (Sir Wilfrid Laurier) addressed to this House in February, 1916, when he spoke thus upon this motion:

There was nothing for Canada to do but to do what she did; to illace at the disposal of England all her resources in men and money. Men there are to-day who sneer at the thought of Canada exhausting her resources to defend the Empire. Sir, who talks of the Empire

House and the country to-day, I am discharging as best 'I can the responsibility and duty thus devolving upon me.

It will be lor my right hon. friend to see for himself the path of his duty, and under the responsibility which appertains to him to act as he may think that duty demands. So, my final word of appeal to this House is that this motion may be passed with that practical unanimity which will enable us to present it to the Imperial Parliament for necessary action and ratification, and I believe in doing so we shall take a course which none of us, at any time in the future, can regret, a c,curse absolutely in the interests of this Dominion, of this Empire, and of the great cause for which our gallant troops are to-day fighting at the front.

Hon. GEORGE P. GRAHAM (South Renfrew) : I trust none ,of the hon. members of this House will think I 'am unduly intruding myself at this juncture in the discussion. What the right hon. gentleman has said concerning the desirability of Canada prosecuting this war so far as in her lies, until it is brought to a successful conclusion, finds an echo in the heart of every man. Canada did not enter this war lightly. She entered it of her own free will, without compulsion -I might say, without invitation-fully believing that on her, as part of the Empire, rested a duty, and on her shoulders as a young nation there rested also a privilege to join hand in hand with the free citizenship of the world in doing her best to maintain the rights, the privileges, and the liberties, for which our fathers and our grandfathers fought. We are in the war, and we propose to stay in it until victory finally perches on the banners of the Allies. There is no desire, no thought, of shrinking from what is before us.

Our experience during the past three years has been sad, but it has been stimulating, it has been encouraging, because we in this part of the Empire, we in this young nation of Canada, have discovered ourselves during these 'three years of great struggle. We have discovered within us those elements of greatness, of manhood, and of citizenship that always were there, but were, in a measure, allowed to remain latent until this great opportunity was given to us to bring them forth in all their grandeur and in all their strength. We have risen to the occasion. I am not of those who believe, or who hint for a moment that Canada has not risen to the occasion. She has sent her men, she has sent her women, she has sent

her money, she has made sacrifices great and voluntary, and she is prepared to make any sacrifice that may be requisite for the completion of this war in a proper manner.

I do not propose discussing what my right hon. friend has said, because I intend moving an amendment to the resolution. It is possible that we are losing our sense of proportion. The great question before qs is the winning of the war-the Prime Minister has made that very plain- and we ought as a Parliament to support all measures necessary to accomplish that end for the cause of civilization. The Prime Minister has rightly and eloquently said that the conditions at the front demand our greatest energies. With that I absolutely agree. But, they demand our energies in more ways than one. I said a moment ago it was possible that for the moment we wrere losing our sense of proportion. We have discussed, and passed almost to completion, a measure of military service for the providing of men-and though we have differed on it, yet Parliament has acted. Before that is quite completed the Prime Minister introduces a resolution for the extension of the term of Parliament, which term does not expire for nearly three months. While the discussion of the extension of the term of Parliament is necessary and right, while the introduction of that measure is proper, I submit there is a duty incumbent upon the Government which demands more immediate action than the discussion, or passing, or withdrawal, of such a resolution. We have three months yet before this term expires, and during that three months-yes, even now-this Parliament ought to manfully grapple with the conditions at the front and with the conditions existing in iGanada, and prove itself equal to working out a plan by which the conditions will be fully met.

One part of that programme has been dealt with. The other part has been left in abeyance. The second part of the programme, to my mind, is of little less importance than the first. The winning of the war being our great object, vte should not be so desirous, three months ahead of time, to discover whether we are going to extend our own term or not. Our chief business to-day is to see that we are' going to stand by the boys in the front in every particular. I have supported, and I intend to support to its conclusion, one branch of this programme and I am going to ask this House seriously if it is not

their duty now to proceed with the inauguration and the completion of the other part of the programme which is necessary for the carrying on of the war.

The amendmept which I intend to move has not been sprung upon this House. I gave notice of it several weeks ago, intending to move it on going into Committee of Supply but, not succeeding, as an opportunity was not afforded me to move that resolution, I take the opportunity of moving it to-day. I may say frankly that I did not care to move this on the third reading of the other Bill to which I have referred. Had I done so, a great many hon. gentlemen would have said that the hon. member for South Renfrew (Mr. Graham) was retarding the Military Service Bill. Consequently, I am moving it today in the proper place and, I believe, at the proper hour, and I would ask serious consideration of the few observations I am going to make.

It is useless to send men to the front, either voluntarily or forcibly, unless we are prepared to back them up. We must feed, finance, equip and clothe men,

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CON

William Humphrey Bennett

Conservative (1867-1942)

Mr. W. H. BENNETT:

Is the hon. gentleman still of the same mind as he was the other night, that the pay of the soldiers should not be increased as proposed by the hon. member for Westmorland (Mr. Copp).

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LIB

George Perry Graham

Liberal

Mr. GRAHAM:

I never made any such suggestion or gave any intimation to that effect and the hon. gentleman knows it.

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CON

William Humphrey Bennett

Conservative (1867-1942)

Mr. W. H. BENNETT:

The hon. gentleman had a chance of voting for it.

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LIB

George Perry Graham

Liberal

Mr. GRAHAM:

The . hon. gentleman

speaks more frequently than I do and he takes it for granted that if one does not speak on a resolution one way or the other he must be counted against it. My hon. friend will allow me to proceed. I do not know on which side he is on any of these questions. We not only have to finance, feed, clothe and equip these men at the front, but we have to finance ourselves, and we have to feed the people of Canada. In addition to that, we have to produce all the food possible to asist our Allies. In all the discussions that have taken place in the United States, in Great Britain and in France, the questions of food supply and finance have been considered only secondary to the question of the supply of men. We in Canada appear to think that we have done our duty if we have passed a measure providing for the raising of a certain number of men. We are

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REVISED


not helping the Allies one iota if we provide men and do not provide to fully feed and equip them. Instead of helping the Allies, we are placing a burden on them. Let me take up the question of finance for a moment. Hon. gentlemen will see, when I move the amendment, that it is merely to defer the discussion of the question raised by the Prime Minister. There is plenty of time to discuss it before the term expires, while we deal with something that is more important, to Canada and to the boys in the trenches. I am not going to say that the finances of Canada are in an unhealthy state. Canada has powers of financial recuperation, has resources, has virility in her people, has energy, courage and ability to carry her through any financial responsibility that may be placed upon her by Teason of this war. Nevertheless, the fact remains that at the present moment we are incurring very heavy financial liabilities. And rightly so. But the question arises: Should we not, at this time of what may be called artificial prosperity, take advantage of the situation to more nearly pay our way as we go during this war? Why should we leave all the expense of this war to be borne by posterity, by the men who come back from the front, and by the sons and grandsons of these men? Why should We not, at the moment, look about us and see if there do exist sources on which the people of Canada can draw in order to meet the expenses of this war. There is not a man in this House who will not agree with me that in his own circle of acquaintances there are men who are able to pay and who are not paying according to their ability. The hon. the Finance Minister (Sir Thomas White) said the other evening that the time might come when an income tax would be imposed. The time has come now when something ought to be done along the line of securing from those best able to pay their full share of the financial burden of carrying on this war. That has not been done in its entirety. You ask me what I would do? I do not intend to keep the House more than a very few moments, because I discussed this question at great length some two weeks ago; but this I do say-that the men enjoying large incomes ought to be taxed on those incomes. It has been said that those receiving smaller incomes and those with small deposits in the banks have become alarmed. There is no need of alarm on account of any action that I would propose or on any action that this Parliament would take. No person


EDITION


understands better than I do the necessity and desirability of financial stability, and of doing nothing which will interfere with the financial progress and commerce of the country, because to do that would be to interfere with our financial status at home, and make us a burden instead of a help to the Allies. But, there are in this country many men who are not contributing their share. The poorer men and poorer women of the country are contributing their share. There is not a man in this House, there is not one man of ordinary means, who is contributing at all in comparison to what the washerwoman is contributing who pays fifty cents to the Patriotic Fund, and there are many of them. I do not minimize for a moment the splendid contributions that have been made to the Patriotic Fund, the Red Cross and other worthy objects. Many Canadian men and women have risen nobly to the requirements and have contributed liberally. But there are still sources that ought to be tapped, and this Parliament will not be doing' its duty if it ends this present session without devising means by which every man, and every woman, in Canada, who is able to contribute, is made to contribute his or her full share towards the cost of carrying on this great war. There are men who receive large incomes from mortgages and other securities, and on these incomes they are not paying one farthing towards this war. True, they are paying some small amount to the municipality, which is given authority to collect such a tax by provincial legislation. But I say again there are men in Canada with large incomes, drawn from sources which relieve flhem absolutely from contributing one farthing for the carrying on of this war-<and you will find them in every community. They do contribute to the Patriotic Fund-all honour to them- but in most cases, if a well-graded income tax were imposed, we could affoid to let them keep all they give to the Patriotic Fund, and we would gain a thousand fold by adopting the other method of collecting. I would not impose a tax on the man of the ordinary income. Heaven knows he has all the troubles he can carry mow, under the high cost of living, in keeping his family. But mem who enjoy the larger incomes, I would compel to pay into the coffers of this country in order that we might borrow less and approximate more nearly our revenue to our expenditure as we go along. We aTe mobilizing men. That is proper, absolutely right. But if we quit with the mobilization of men, our duty is half performed and we [Mr Graham.] are not doing what in us lies to make the issue of this wiar a 'success for ithe Allies. I spoke the other evening of several things. Allow me, without wearying the House, to mention one or two. First, the transportation facilities of Canada. To win the war, as the Prime Minister has well said, is the transcendent issue in the Dominion of Canada. Nothing should be allowed to- stand in the way of our transporta-4 p.m. tion facilities being so efficient that our produce of the farm and from otheT sources can be carried with all speed to the place of embarkation. No matter who criticises or who does not, this Parliament will be responsible if we do not see that the railway companies of Canada are equipped with the rolling stock to carry the crop of 1917 to the seaboard. The fact that the heads of the companies or - the Board of Railway Commissioners give as a reason why that was not dome that they had not rolling stock, will not excuse this Parliament for not seeing to it that they have the rolling stock-and differences can be settled afterwards. Then, when we get the food to the seaboard, we only 'have it partially to the Allies and to our boys at the front. To-diay the British Government, through the Imperial Munitions Board, is manufacturing ships all over Canada. This is proper and right; but I opine that, even if all the shipyards of Canada are busy, we in Parliament ought to sit down and devise a scheme whereby ships for the carrying of Canadian produce for out own boys will be built, and built without delay. That should have been dome .months or even years ago. It is useless for the farmer in the West or in the East to raise immense crops; it is useless to cry "production," unless we devise a scheme by which the products of Canada can be taken to the point of consumption across the sea. The discussions that have taken place in the press during the last few days of certain reports indicate to us that we have a work .to perform along other lines in the matter of food production at home. I submit-and I want to give the Government full credit^that during the past few weeks they have started out along a line that the people of Canada have been discussing for a year or more. A food controller has ibeen appointed; a fuel controller has been appointed. I am net going to criticise because this was not done before, but we seem to be working without concentration of effort, every man for himself. Some scheme should be devised by which all this would beJ co-ordinated and all would work, one with another, to attain the best possible results, with the minimum of expenditure. I could discuss natural resources as I did the other evening, 'but I do not want to detain the House. But I do. want to impress on the House that the winning of the war being the chief object, the great thing in view of all Canadians, of all lovers of the liberty which we enjoy, is that we should devote our energies to first things first; and I submit that the question which I have outlined in a very few words comes before the discussion of the extension of Parliament. If the winning of the war is the great object which we have in view, I ask the Government to accept this motion: to defer further discussion of the resolution for the extension of the parliamentary term and to bring in legislation along the lines which I have suggested. Let us get it on the statute books of Canada and proceed to operate under it. I may say, in all friendliness, that I believe there is nothing that could be done by this Parliament which would bring as great satisfaction to the people of Canada as would be given us if, after passing the other measure to which many objections have been raised, we were to proceed to show that we were in earnest in this matter and pass a measure providing for the mobilization of all our forces in order that no. effort may be lacking to carry on this war to a successful issue. Believing this, I have the honour to move this amendment, seconded by Mr. Pardee: That all the words after the word "that" in the said resolution he struck out and the following he substituted therefor. '.In the opinion of this House the consideration of the terms of said resolution should he deferred until the (Government brings before Parliament measures providing that those best able to pay will he asked to contribute their full share to the cost of the war and by which all .agricultural, industrial, transportation and natural resources of Canada will be organized so as to insure the greatest possible assistance to the Empire^ in the war, and to reduce the cost of living to the Canadian people.


CON

Edgar Nelson Rhodes (Speaker of the House of Commons)

Conservative (1867-1942)

Mr. SPEAKER:

I shall put the amendment, which is entirely new to me, reserving the right to rule later as to its relevancy.

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Right Hon. S@

Mr. Speaker, I have listened [attentively to my hon. friend (Mr. Graham'), and I must express my feeling cf great disappointment at the small amount of really definite suggestion that has resulted from his fifteen or twenty minutes' talk. From beginning to end it

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has been generality, generality, generality'-I ask any member on either side of this: House to take his pen or pencil and Hansard to-morrow morning, and go over the address of my hon. friend, and try to find, in it one single lineament of a definite-proposal to be carried out by definite' methods and in a definite manner, and if he succeeds then he will find what I have' been unable to find whilst I have been attentively listening to it. As to the relativity of this motion and its pertinence, I have been cudgelling my brains to ascertain where they came in. As to its consistency with the stand the hon. gentleman has already taken, I am equally puzzled.

This Government to-day, and this Parliament, as a working body behind the Government, has a lease of a little less than three months of life. Perhaps one might easily answer the question in any line of business as to how much vigour, how much strength, how much optimism, and how much real action he could put i'nto a new proposition, faced by the fact that within three months his vital cords will have been severed, and he himself will have ceased to exist. He would be trying to make peace with his Creator; his remaining time would be spent in endeavouring to foTget, if possible, his sins, and in coming to a recognition of better ways of living, so as to better the prospects of his future. My hon. friend has very well stated that there are three things that are necessary for the carrying on of the war. The first is men, the second is food, and the third is munitions and equipment. The Bill upon which we have been most earnestly engaged for the last two months in this House has been framed to provide the first great essential, men. We took that up first. We pursued it definitely and uniformly, because in our heart's heart, whatever may have been upon our lips, we felt that the one thing needed at the present time at the front, as far as Canada is concerned, is men. There are our four divisions; they have no recess and no holiday. Day after day, night after night, they take their places in that grim struggle, and not an hour passes by day or by night that death does not visit their ranks, and men fall, never to rise again. They are in the trench, in the dug-out, going over the top, passing No Man's Land, bombing the trench where the enemy, when the bar-age of fire is lifted, is to 'be found. Death faces them at every step, and casualty sows every path they tread. How long-and every man's heart responds to the question-will those four divisions of ours at the front.

under that constant pressure day and night, week in -and week out, month in and month out, with no surcease, be able to sustain their own courage, to maintain their faith in the country that sent them there and pledged to them its support? As man after man goes down by death or casualty, and none come to take his place, hope and courage are apt to sink. My hon. friend says that Canada has risen to the occasion. God grant that we may stay risen to the occasion.

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Some hon. MEMBERS:

Hear, hear.

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CON

George Eulas Foster (Minister of Trade and Commerce)

Conservative (1867-1942)

Sir GEORGE FOSTER:

Of all the pities and of all the deep disgraces, no pity would be greater and no disgrace deeper, having once risen to the occasion, than that we should cease on the path of duty, of fervour, of courage, of sacrifice and of support. 1 agree with him when he says that Canada has risen to the occasion. My prayer now is that Canada may not decline from that lofty, proud, honourable and glorious position. But let there be no mistake at all. My hon. friend felt that we might have a disproportionate idea of these different factors in the contest. So we may. But today we will not have a disproportionate idea of the different factors in that contest if we stand by the conviction of these last three years, and the conviction of most men's hearts to-day, that what is needed on the other side at the present time is men prepared and skilled for the work of the trenches. Although it is a fact that no man can fight without arms and without food, yet neither arms nor food are of the slightest use, unless the men are there to use the equipment and the food which is produced for them.

Let Canada make no mistake about her position, and the supreme factor in the long line of factors which are fighting for liberty and civilization on this long battle front. Let Canada make no mistake that for her, and for the cause for which she is fighting, the important thing to-day is men, and every delay, dilatory or otherwise, which intervenes to prevent the calling of men, the drilling of men, the transport of men, the preparation of them for the final trench work, is just so much which impedes the path to victory, and delays the coming peace, which can only follow a victory on the front fields of battle. Just at this moment, when we have passed the Military Service Bill which my hon. friend (Mr. Graham) supports, and which he, as others, declares is necessary in order that there should be no gap, what is this that I see in the paper to-day, if it rightly states what

the dissident Liberals have concluded as their pronouncement, to fill the gaps without delay? Will my hon. friend tell me how it is possible for this Government, with a bare three months of life left (unless this Parliament extends its term) to organize, to gather, to drill, and to send to the front men to fill these gaps, which are daily becoming wider, and which the men at the front are calling upon us to fillup instantly? How is it possible for the Government, which has but three months of life left to it, unless Parliament extends the term, to go forward and fill those gaps without delay? If there is one thing which is pressing, if there is one thing, above all others, in this Parliament that is now pressing, it is to know whether or not the term of this Parliament is to be extended, and the Government of the present day, or the organized Government which shall come afterwards-if a reorganization there be- should know at once what its term of life is to be. Without that knowledge it seems to be impossible for strong, vigorous and effective action to be taken, and yet when we come to decide that question, my hon. friend interposes with this motion of his. It seems to me that he might have put that motion into a chink where it would have greater relationship to some question in hand. He might also have placed it where it would not have stood in the way as a delay to this very necessary motion now before this House. I do not want to characterize my hon. friend's speech in strong terms.

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LIB
CON

George Eulas Foster (Minister of Trade and Commerce)

Conservative (1867-1942)

Sir GEORGE FOSTER:

My hon. friend has been a politician so long that his hide is thick. I do not wish unnecessarily or str.ongly 'to criticise his speech, but it struck me as being but one of the very many generalities -wbioh are glittering in themselves, but which, not 'being brought down to definiteness, have no weight or meaning.

Broadly speaking, my hon. friend's speech is twofold. He wants accumulated wealth to give an immediate and effective contribution. The motion of which he previously gave notice was in those very words. The first part of that motion he has changed somewhat, but the meaning is probably just about the same. His first branch then is this, that accumulated wealth should give immediate and effective contribution to the cause of the war. That is based upon the assumption that accumulated wealth has, up to the present time done little or nothing in the way of contributing

to the war. The same assumption is made by others than my hon. friend. It is an assumption which is made too much in general and at large, probably mainly from a lack of thinking out what has been done in Canada during the last three years and the part that accumulated wealth has played in doing what has been done.

What has accumulated wealth contributed during the last three years of war? It seems to me to be a baseless assumption that it has done nothing, and almost equally baseless that it has done little. A fair statement to make would be that accumulated wealth in Canada is doing and has done wonderful things in the last three years of war. Has there been in Canada a period of greater activity than that which has intervened between the opening of the war and the present time? Has there been a time in which the manufacturing industries, the producing industries of nearly every kind in Canada have been busier at work, and have made greater outturns and output than during the last three years? And what, Sir, pray you, has been one great factor in that activity and outturn? It has been the factor of accumulated wealth. There was capital in this country, and when the war broke out that capital applied itself to the resources of the country and worked with enterprise and skill, and with the splendid co-operation of labour, in (Order to produce that astonishing wealth of production which it has turned out from the 1st of August, 1914, until the present date. I am not going to labour that question. Hon. members know that this has taken place, and that accumulated wealth, by virtue of its employment as capital in all these different lines of production, has contributed not a small, but, on the contrary, a very great share towards the general output and special war equipment of the country.

Accumulated wealth has done more than that. It has paid its share of a large and increasing general taxation. The war tax, the increased customs tax, the increased excise tax, have all been imposed on this country since the war commenced, and accumulated capital has paid its share of those taxes under the general law of consumption, and payment for that which is consumed, and accumulated wealth is notably a large consumer in this country. Outside of customs and inland revenue taxation, special financial taxes have been im-pased upon banks, upon corporations, upon different enterprises and industries, upon instruments of credit, upon the various

things upon which they have been imposed, and - from those taxes revenue has been taken in. That is therefore a contribution that has been made by accumulated wealth.

I noticed in a speech made not long ago by the Minister of Finance the statement, that the added taxation imposed in those different ways on this country for the purposes of the war will this last year total some $200,000,000. That amount of taxation has fallen on accumulated wealth, as well as upon other branches of industry, production, and earnings. Then there is the special profits tax, the business mens' profit tax which is heavier than any similar taxation imposed by any other country of which I know. Leaving out agriculture and insurance, it takes in every business which has a capital .of not less than $50,000, and it takes in businesses which have a capital of less than $50,000 if over 20 per cent of the business of the corporation or person has to do with war equipment or war munitions. It allows 7 per cent of a profit to the business- corporation. All the profits over 7 per cent in the years 1915 and 1916, it taxes 25 per cent. You may look through taxation schemes, high and low, and you will find no taxation scheme on business profits which takes in a larger percentage than is taken in by the Canadian legislation of 1915 .and 1916 in that respect.

By the legislation of 1917, a profit up to 7 per cent is allowed to the business corporation or person. Of profits from 7 per cent and up to 15 per cent, 25 per cent is taken by the Government; of profits between 15 and 20 per cent, 50 per cent is taken, and profits over 20 per cent 75 per cent is taken. Therefore, there is no doubt or dispute that there is no business profits tax that I know of, or that I think is extant in the world to-day, which approaches in severity the business profits tax in this country. In 1915, that tax produced $15,000,000. In 1916-17, it will produce $20,000,000. In 191718, it will produce $20,000,000 or over. That i3 a direct tax upon accumulated wealth.

Taking all these things into consideration let us modify our views, at least to this extent, that we shall not run away with the idea in general that accumulated wealth has done nothing to aid the Empire or to carry on the war during these three years.

But accumulated wealth has done a very special work. To whom would we go for loans if not to accumulated wealth? Since the war began, the Dominion of Canada has issued, and the people of Canada have taken.

$350,000,000 in domestic loans. Before the war, how much of the money that Canada required for her great expenditures was raised by loan in this country? How many of our people thought, before the war, that Canadian accumulated wealth was able to bear the burden of loans to that extent? It is because there was accumulated wealth, and because appeal was made to it, that $350,000,000 of loans have been raised in Canada forHhe purpose of the war and the purpose of the nation. But that is not the end of it. Accumulated wealth well knows that there are more loans to be issued, and accumulated wealth in Canada is willing to take more loans, and still more loans, as necessity demands. That much must be allowed to he .accumulated earnings which make the wealth of the country. I state these things simply for the purpose of correcting an impression which, perhaps, is too widespread in this country, that the accumulated earnings of the Dominion have contributed little or nothing to the general work of the war and to the general interests of the Empire.

Let me go a little further along that line. What is accumulated wealth? Can we separate it into divisions which will be fairly definite? I think we can. We can take the first division of accumulated wealth as consisting of cash, liquid money which a man owns and keeps in the bank, or invests in short loans. That is cash more or less completely liquid, which the individual owns and uses as he pleases. That division of the accumulated wealth of Canada is not touched by our present special taxation.

The next division of accumulated wealth may be taken to consist of that property which belongs to an individual or to companies, and which is in a fixed, condition, Take as a simple illustration the home a man owns and lives in. His earnings have accumulated and have been invested in a home for himself and his family. To that extent those earnings have become wealth, but it is wealth that is not productive in the economic or business sense. That wealth is the home which shelters, nourishes, and feeds the man, and gives him strength and vitality for his daily work; but the investment itself is fixed and is not productive of yearly returns. You can apply that illustration to numerous other things which appertain to the individual and to the aggregation of individuals the whole country through, and which form a vast portion of the accumulated wealth of the country-wealth which is in a fixed condition, which produces nothing, and

which cannot readily be turned into productivity.

The third division is that portion of che accumulated earnings and wealth of a country which invests itself in resources, and each year produces more or less of earnings, and consequently adds to the sum of the accumulated wealth of the country. These, I think, without being too nice about it, are the three great divisions of accumulated wealth.

Now what does my hon. friend propose to do? If he wants to make accumulated wealth in those three divisions contribute immediately and effectively to the work of the war and of the Empire, how does he propose to go about it? Will he conscript the fixed wealth of the individual?

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LIB

George Perry Graham

Liberal

Mr. GRAHAM:

My hon. friend has been arguing for fifteen minutes about a term that appears nowhere within the four corners of my resolution. There is nothing about accumulated wealth, near or remote, in the whole resolution. It says, "those best able to pay shall contribute."

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CON

George Eulas Foster (Minister of Trade and Commerce)

Conservative (1867-1942)

Sir GEORGE FOSTER:

That is very good. My hon. friend gave notice of his resolution, and a copy of that resolution was put in my hands at 11 o'clock this morning. It dealt with accumulated wealth, and demanded that accumulated wealth should make an immediate and effective contribution to the cost of the war; that was his confirmed and reasoned meaning of his resolution. Aliy hon, friend .since then, perhaps feeling himself impelled to get his resolution a little more into relativity with the question in hand, has changed the first part of it. But between the first part as it now is, and the first part las it was, there is no generic difference, and the argument I am making is the argument used by my hon. friend himself and by many others all this country over who have argued in like manner. I prefer to keep the term "accumulated wealth," my hon. friend's own choice in his cool moments. I propose to stick to that in order that my 'argument may be even with the argument which has been made by members of this House and by people outside of this House.

It is a perfectly proper use of the term and quite germane. What were the actual words of my hon. friend's resolution as originally proposed? To-day is July 17. On July 16, a letter was addressed by Hon. George P. Graham to Sir Robert Borden, giving notice of the resolution which he proposed to move to-day. It is in these words:

That in the opinion of this House it is desirable that steps should be taken forthwith

by the Government to provide that accumulated wealth should contribute immediately and effectively to the cost of the war.

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LIB

July 17, 1917