April 29, 1941

WAR EXCHANGE CONSERVATION ACT, 1940


Resolved, that it is expedient to introduce a measure to amend the War Exchange Conservation Act, 1940, and to provide: 1. That section 7 of the said act be repealed and the following substituted therefor: "7. (1) Goods enumerated in schedule two to this act, the growth, produce or manufacture of the United Kingdom, when imported into Canada in a manner and under conditions which entitle such goods to entry under the British preferential tariff of Canada, shall be exempt from the rates of duty set out in schedule A to the customs tariff and shall, in lieu thereof, be free of duties of customs. (2) Goods enumerated in this subsection (other than those enumerated in schedule two to this act) the growth, produce or manufacture of the United Kingdom, when imported into Canada in a manner and under conditions which entitle such goods to entry under the British preferential tariff of Canada, shall be accorded discounts on the amount of duties or customs computed under the British preferential tariff as follows: Goods enumerated in items 551, 551a, 552, 553, 554, 554b, 554d, 554e, 555, 568. 568a (i), 611 and 611a of the customs tariff-25 per cent. Goods enumerated in groups I, V, VI, VII, VIII, IX, X, and XI of the customs tariff (but not to include goods enumerated in tariff items 551, 551a, 552, 553, 554, 554b, 554d, 554e, 555, 568, 568a (i), 611 and 611a, and not to include fabrics composed wholly or in part of silk or goods of any kind in which silk is the component material of chief value)-50 per cent. Provided, that the discounts established by this subsection shall be accorded in lieu of, not in addition to, any discount to which the said goods otherwise might be entitled under section 5 of the customs tariff." 2. That part one of schedule one to the said act be amended by deleting therefrom items 560d, 560e, 569d and 634 (ii). 3. That part one of schedule one to the said act be further amended by inserting therein the following items and enumerations: ex 28a, ex 29a-Black tea. ex 506, et al-Games and puzzles: mirror frames.



The Budget-Mr. Ilsley



560c-Woven fabrics with cut pile, whether or not coated or impregnated, wholly or in part of silk or artificial silk, but not containing wool, n.o.p. Provided, that any enactment founded on this resolution shall not apply to goods which on or before the twenty-ninth day of April, 1941, were in Canada or in transit to Canada. 4. That part two of schedule one to the said act be amended by inserting therein the following item: ex 711, et al-Vegetable oils provided for in items 258, 259a, 259b, 262, 266, 276, 276a, 276b, 277, 277a, 278, 278a, 278b, 278c, 278d, 280, ex 711, 824 and 831 of the customs tariff. Provided, that any enactment founded on this resolution shall not apply to goods which on or before the twenty-ninth day of April, 1941, were in Canada or in transit to Canada. 5. That schedule two to the said act be amended by deleting therefrom tariff items 220(a) and (b), 228, ex 284, 288, 429(b) and (e), 439, 439a, 445f, 445g, 445k, 451b, 572 and 573, and by inserting therein the following items and enumerations: Item 238e: Regenerated cellulose, and cellulose acetate, transparent, in sheets, not printed, and manufactures of regenerated cellulose or of cellulose acetate, n.o.p.-Free. Item 289: Baths, bathtubs, basins, closets, closet seats and covers, closet tanks, lavatories, urinals, sinks and laundry tubs of earthenware, stone, cement, clay or other material, n.o.p.-Free. Item 326a: Manufactures of glass, n.o.p.- Free. Item 362c: Nickel-plated ware, gilt or electro-plated ware, n.o.p.-Free. Item 451a(ii): Needles, of any material or kind, n.o.p.-Free. 6. That any enactment founded on these resolutions shall be deemed to have come into force on the thirtieth day of April, 1941, and to have applied to goods imported or taken out of warehouse for consumption on or after that date and to have applied to goods previously imported for which no entry for consumption was made before the said date.


CUSTOMS TARIFF


1. Resolved, that schedule A to the customs tariff, being chapter forty-four of the Revised Statutes of Canada, 1927, as amended by chapter seventeen of the statutes of 1928, chapterthirty-nine of the statutes of 1929, chapterthirteen of the statutes of 1930 (first session), chapter three of the statutes of 1930 (second session), chapter thirty of the statutes of 1931, chapter forty-one of the statutes of 1932, chapters six and thirty-seven of the statutes of 1932-33, chapters thirty-two and forty-nine of the statutes of 1934, chapter twenty-eight of the statutes of 1935, chapter thirty-one of the statutes of 1936, chapters twenty-five andtwenty-six of the statutes of 1937, chapter forty-one of the statutes of 1939 (first session), chapter two of the statutes of 1939 (second session) and chapter twenty-nine of the statutes of 1940, be further amended by striking thi reout tariff items 219e, 264, subdivision (ii) of item 409e, 410d, 427f, subdivision (a) of item 429, 443a, 476a, 560d, 560e, 569d, subdivision (iii) of item 624a, 634(ii), 655a, 761, 824, 825, the several enumerations of goods respectively and the several rates of duties of customs, if any, set opposite each of the said items, and by inserting the following items, enumerations and rates of duty in said schedule A: [Mr. Daley.) 14873-150$ Tariff Item - British Preferential Tariff Intermediate Tariff199g Duplex backing papers or wrappers including those printed and/or skived for use in the packaging of photographic roll films; interleaving and wrapping paper, black, for packaging flat photographic films and photographic papers; when imported by manufacturers of photographic films and photographic papers for use in their own factories in the packaging of such films and papers 5 p.c. 12$ p.c.211b Kyanite, crude or calcined, but not further processed than ground Free 5 p.c.219e Chloropicrin, ethylene oxide, methyl formate, cyanides, carbon bisulphide, or mixtures containing any of these, for use in combating destructive insects and pests Free Free232g Inedible gelatine, when imported by manufacturers of photographic films, photographic plates and/or photographic paper, for use exclusively in the manufacture of such films, plates and/or paper in their own factories, under such regulations as the Minister may prescribe 5 p.c. 12J p.c.and, per pound 2 cts. 5 cts.264 Essential oils, natural and synthetic, n.o.p.; essential oils, natural and synthetic, containing other nonalcoholic material, n.o.p., for use in the manufacture of products or preparations for medicinal, flavouring, toilet, or other purposes, under such regulations as the Minister may prescribe Free 7J p.c.355a Rods containing 90 per cent or more of nickel, when imported by manufacturers of nickel electrode wire for spark plugs, for use exclusively in the manufacture of such wii i for spark plugs, in their own factories Free 5 p.c.General Tariff Present Rates B. P. Tariff Intermediate Tariff General Tariff35 p.c. 20 p.c. 32^ p.c. 35 p.c.25 p.c. 15 p.c. 25 p.c. 25 p.c.Free Free Free FreeFree 15 p.c. 15 p.c.25 p.c. 17J p.c. 25 p.c. 25 p.c.5 cts. 2 cts. 5 cts. 5 cts.7i p.c. Free 7* p.c. 7i p.c.15 p.c. 25 p.c. 25 p.c.10 p.c. 1 15 p.c. 25 p.c. 25 p.c. The Budget-Mr. llsley (Mr. Ilsley.] Tariff Item 409e 41 Od 427f U3a (ii) Fruit and vegetable grading, grating, washing and wiping machines and combination bagging and weighing machines, and complete parts thereof; machines for topping vegetables, and machines for bunching and/or tying cut flowers, vegetables and nursery stock, anti complete parts thereof; machines and complete parts thereof for making or lidding boxes for fruit or vegetables; egg-graders and egg-cleaners, and complete parts thereof, not including aluminum parts Well-drilling machinery and apparatus, and complete parts thereof, for use exclusively in drilling for water, natural gas or oil, or in prospecting for minerals, not to include motive power; machinery and apparatus of a class or kind not made in Canada for maintenance and testing purposes in connection with gas or oil wells; well-packers and complete parts thereof, for oil or gas wells; seamless iron or steel tubing of a class or kind not made in Canada, for use in casing water, natural gas or oil wells Machines for the manufacture of veneers and plywoods, viz.:-veneer clippers, veneer clipper knife jointers, veneer glue spreaders, veneer jointers, veneer lathes and veneer taping machines; complete parts of all the foregoing Cutlery of iron or steel, plated or not; (a) Knife blades or blanks, and table forks, of iron or steel, in the rough, not handled, ground nor otherwise manufactured; spoon blanks, of iron or steel, not further manufactured than stamped to shape; blanks, of iron or steel, for scissors and shears, in the rough, not ground nor otherwise manufactured Ovens, of a class or kind not made in Canada, for use in commercial bakeries: complete parts of the foregoing British Preferential Tariff Intermediate Tariff General Tariff Present Rates B. P. Tariff Intermediate Tariff General TariffFree 5 p.c. 10 p.e. Free 5 p.c. 10 p.c.Free 27* p.c. 35 p.c.Free Free Free Free Free Free10 p.e. 27* p.c. 35 p.c.Free 10 p.c. 35 p.c. Free 10 p.c. 35 p.c.10 p.e. 27} p.c. 35 p.c.Free 7* p.c. 10 p.c. Free 7* p.c. 10 p.c.[DOT] 10 p.c. 27* p.c. 35 p.o.Free 10 p.e. 30 p. Free 10 p.c. 30 p.c.15 p.c. 25 p.e. 30 p.c. o £ o co The Budget-Mr. Ilsley 443b Oven thermostats and automatic oven lighters, for use in the manufacture of apparatus designed for cooking with gas Free 10 p.c.470a Glassware and other scientific apparatus for laboratory work in public hospitals; chairs and tables for surgical operating purposes, and complete parts thereof; infant incubators and complete parts thereof; infant identification bead sets including cases, and integral parts thereof; electro cardiographs and complete parts thereof, and sensitized film and paper for use therein; apparatus for sterilizing purposes, including bedpan washers and sterilizers but not including washing nor laundry machines; all for the use of any public hospital, under regulations prescribed by the Minister Free Free560c Woven fabrics with cut pile, whether or not coated or impregnated, wholly or in part of silk or artificial silk, but not containing wool, n.o.p XU P-c. 32$ p.c.597c Strings for musical instruments 10 p.c. 20 p.e.624a (iii) Juvenile construction sets of metal or rubber, consisting of various stampings, punched or moulded and connections therefor; parts of the foregoing.... Free 30 p.c.655a Lead pencils and crayons, n.o.p 10 p.c. 35 p.c.655b Crayons of chalk or chalk-like material, coloured or not 10 p.c. 20 p.c.c. 15 p.c. 25 p.c. 30 p.c.Free Free Free10 p.c. 25 p.c. 30 p.c.10 p.c. 35 p.c. 35 p.c.27$ p.c. 30 p.c. 45 p.c.and, per ounce and, per ounce and, per ounce7 cts. 7 cts. 7 cts.c. 17$ p.c. 32$ p.c. 35 p.c.27$ p.c. 30 p.c. 45 p.c.30 p.c. 40 p.c. 50 p.c.c. 10 p.c. 32$ p.c. 40 p.c.20 p.c. 27$ p.c. 30 p.c.15 p.c. 30 p.c. 30 p.c.20 p.c. 37$ p.c. 45 p.c.17$ p.c. 33$ p.c. 45 p.c.10 p.c. 27$ p.c. 35 p.c.15 p.c. 25 p.c. 25 p.c.c. Free 30 p.c. 40 p.c.10 p.c. 30 p.c. 40 p.c.c. 10 p.c. 35 p.c. 35 p.c.c. 10 p.c. 35 p.c. 35 p.c. > The Budget-Mr. Ilsley Tariff Item 824 826 British Preferential Tariff Intermediate Tariff Tariff Collodion and emulsions thereof, iodizers for collodion, and stripping solutions, when imported for use exclusively by photo-engravers, lithographers, rotogravure printers, or engravers of copper rollers, in their manufacturing operations 15 p.c. 17£ p.c. 175 P-c.Perilla oil and cashew nut shell oil, for use in Canadian manufactures Free Free FreeWoven cord tire fabric, wholly or in chief part by weight of artificial silk or similar synthetic fibres, not to contain silk nor wool, coated with a rubber composition, when imported by manufacturers of rubber, to be incorporated by them in pneumatic tires, in their own factories Free 17| p.c. 25 p.c.and, per pound 3§ cts. 4 cts.Wire drawing dies in the rough, not being complete parts of machinery, and materials or articles entering into their manufacture Free 10 p.c. 35 p.c. Present Rates



Tariff Intermediate Tariff General Tariff 15 p.o. 175 p.o. 175 P-o- Free 15 p.c. Free 25 p.e. Free 25 p.c. Free 15 p.o. 25 p.c. 15 p.c. 25 p.c. 25 p.c. 2. Resolved, that any enactment founded upon the foregoing resolu- of warehouse for consumption on and after that date, and to have applied tion shall be deemed to have come into force on the thirtieth day of to goods previously imported for which no entry for consumption was April, one thousand nine hundred and forty-one, and to have applied made before that date, to all goods mentioned in the foregoing resolution imported or taken out n



g o


APPENDIX TO THE BUDGET, 1941-42


A. Review of Government Accounts, 1940-41. B. Tables on Economic Conditions, 1940-41. A. Government Accounts, 1940A1 Comparative Summary Statement of Revenues and Expenditures 1. As the final figures for the fiscal year 1940-41 are not as yet available, all statements dealing with revenues, expenditures, investments and balance sheet items are estimated. It is expected that when the books of the year are finally closed, any variations from the figures shown herein will be of slight importance. 2. The following tables show, by main categories and in detail, revenues, expenditures and the increase in net debt for the fiscal year 1940-41, together with comparable figures for the four preceding fiscal years: The Budget-Mr. Ilsley The Budget-Appendix STATEMENT OF REVENUES FOR THE LAST FIVE FISCAL TEARS (000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41$ $ $ $ $Tax Revenues- Customs import duties 83,771 93,456 78,751 104,301 130,800Excise duties- Spirits, malt, etc 17,681 19,626 18,530 21,267 34,650Cigars, cigarettes and tobacco 28,707 32,837 33,225 40,557 55,080Licences 39 38 34 35 12046,427 52,501 51,789 61,859 89,850Less refunds 470 464 475 827 1,10045,957 52,037 51,314 61,032 88,750Excise taxes- Sales 116,139 141,864 125,927 141,121 185,550Manufacturers- Automobiles, rubber tires and tubes 1,464 1,453 1,343 1,568 10,000Cigars, cigarette papers and tubes. 1,345 1,428 1,575 2,009 3,500Matches and lighters 1,687 1,769 1,819 2,135 2,250Sugar 10,583 10,833 11,004 12,302 11,700Toilet preparations and soap 1,184 1,224 1,249 1,371 1,500Electric and gas appliances - - - - 1,850Phonographs, radios and tubes - - - - 1,500Sundry 436 477 465 732 1,500Special excise (importations) 15,415 18,622 15,591 1,979 1,006Stamps, transportation, etc 7,527 6,958 6,525 6,486 6,500War exchange - - - - 62,000155,780 184,628 165,498 169,703 288,850Less refunds 3,307 3,809 3,787 3,675 4,800152,473 180,819 161,711 166,028 284,050Income tax- Individuals 35,442 40,445 46,937 45,407 75,860Corporations 58,013 69,769 85,186 77,920 131,570Dividends, interest, etc 8,910 10,152 9,903 11,122 13,040102,365 120,366 142,026 134,449 220,470National defence tax - - - - 27,670Excess profits tax - - - - 24,000Banks, Insurance Companies, etc.- Chartered banks 1,210 1,107 1,014 949 930Insurance companies 775 867 891 926 970Miscellaneous 483 509 587 586 650Total Revenue from taxes 387,034 449,161 436,294 468,271 778,290Non-tax Revenues- Post Office 34,275 35,546 35,288 36,728 39,700Return on investments 12,497 14,463 14,407 14,617 16,700Bullion and coinage 1,414 1,715 2,052 3,756 6,300Service charges, rentals and sundry fees 8,017 7,398 7,305 8,249 9,000Proceeds from sales 856 910 818 1,023 1,250Premium, discount and exchange - 27 477 7,939 6,800Refunds of expenditure 576 643 740 685 750Miscellaneous 360 435 636 349 400Total non-tax revenue 57,995 61,137 61,723 73,346 80,900Total ordinary revenues 445,029 510,298 498,017 541,617 859,190Special Receipts and Credits- Sundry receipts and credits 0)8,464 3,010 1,256 164 (*) 8,450 (') Includes $8,000,000 from Canadian Wheat Board taken into the aecounte as an offset, in part, to the disbursements in 1935-36 re losses on 1930 wheat pool and stabilization operations. (!) Includes $5,504,000 representing the capital gain on redemption of an estimated ±'22,500,000 of G.T.R. 4% perpetual debenture stock and taken into the accounts as an offset to a corresponding increase in the Canadian National Railways Securities Trust Stock. The Budget-Appendix



STATEMENT OP EE VENUES FOB THE LAST FIVE FISCAL YEARS-Concluded (000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 194041Other credits- $ $ $ $ $Refunds on capital account 616 1,543 40 21 76Credits to non-active accounts Net credit resulting from various adjustments in Railway accounts authorized by Canadian National 45 819 2,858 20,292 3,855Railways Capital Revision Act, 1937 - 1,023 - - -Total Special Receipts and Credits 9,125 6,395 4,154 20,477 12,381Grand Total Revenue 454,154 516,693 502,171 562,094 871,571


STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST FIVE FISCAL YEARS


(000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41Ordinary Expenditure $ $ $ $ $Agriculture 8,741 9,017 9,527 11,817 8,886Auditor General's Office 423 463 473 459 454Civil Service Commission External Affairs, including Office of 305 358 379 398 398Prime Minister Finance- 1,341 1,450 1,057 1,220 1.02SInterest on Public Debt Cost of Loan Flotations and Annual Amortization of Bond Discounts and 137,410 132,118 127,996 129,315 139,239Commissions 3,839 4,555 4,914 4,992 6,376Premium, Discount and Exchange (net) 400 - Subsidies to Provinces 13,735 13,735 13,752 13,769 13,769Special Grants to Provinces 3,225 7,475 7,475 5,475 5,475Other Grants and Contributions 540 560 643 660 633Civil Pensions and Superannuation Government contribution to Super- 787 712 638 567 536annuation Fund Old Age Pensions, including pensions to 2,019 2,065 2,220 2,271 2,316blind persons commencing in 1937-38. 21,149 28,653 29,044 29,977 29,924General Expenditure 3,498 3,573 3,689 3,966 3,233Fisheries Governor General and Lieutenant Gov- 1,691 1,850 2,036 2,320 1,711ernors 224 225 226 227 219Insurance 172 187 194 195 176Justice 2,773 2,790 2,748 2,725 2,726Penitentiaries 2,372 2,577 2,675 2,941 2,714Labour. 720 706 788 788 835Technical Education 76 49 27 31 30Unemployment Insurance Act, 1940.... Government Annuities- - - - 125Payments to maintain reserve Legislation- 541 8,941 - 379 500House of Commons 1,760 1,516 1,800 1,286 2,510Library of Parliament 75 79 72 76 71Senate 587 536 600 432 869General 73 57 75 68 55Dominion Franchise Office Chief Electoral Officer, including elec- 53 76 50 tions Mines and Resources 72 45 114 458 2,475Administration - (>) 1,491 (l) 184 (*) 186 (>) 172Immigration and Colonization 1,313 1,163 1,335 1,338 1,303 (l) Prior to 1937-38 general administration expenses were not segregated from other expenditures of the respective services of the departments which were amalgamated to form the Department of Mines and Resources. The figures from 1938-39 represent only Departmental Administration, other administration costs being included as in other departments, under the respective services.



The Budget-Appendix


STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST


five fiscal years-Continued (000 omitted) Ordinary Expenditure Mines and Resources-Concluded Indian Affairs Interior * Lands, Parks and Forests Surveys and Engineering Mines and Geological Survey Movement of Coal and Subsidies under Domestic Fuel Act Munitions and Supply National Defence- Administration Militia Service Naval Service Air Service Sundry Services National Revenue (including Income Tax) Pensions and National Health- Administration Treatment and after-care of returned soldiers Pensions, War and Military Health Division Post Office Privy Council Public Archives Public Printing and Stationery Public Works Royal Canadian Mounted Police Secretary of State Soldier Settlement Trade and Commerce Canada Grain Act Mail Subsidies and Steamship Subventions Transport- Administration Air Service Marine Service Canadian Radio Commission Canadian Travel Bureau Railways and Canals Maritime Freight Rates Act Railway Grade Crossing Fund Total ordinary expenditure. Capital Expenditure Canals Railways Public Works Total Capital Expenditure. War Expenditure War (see section 16) Special Expenditure Administration-Relief Acts Grants-in-aid to Provinces Material Aid to Provinces, including municipal improvements projects. 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41$ $ $ $ $4,904 4,897 5,305 5,675 5,3132,887 - - - -1,910 2,249 2,116 1,955933 1,325 1,301 1,2001,135 658 1,340 1,324 1,1972,277 2,521 1,921 4,532 4,352 9(«) 409 (*) 178 (*) 3211,346 17,221 15,772 5,997 1524,763 4,372 6,590 1,869 -5,822 10,018 11,216 4,852 -992 1,149 447 295 3911,205 11,870 11,899 12,064 12,138- - (*) H8 (*) 132 (*) 13111,579 12,109 13,453 14,771 13,66142,801 42,240 42,181 42,219 41,568873 957 1,012 1,113 1,18531,906 33,762 35,456 36,726 38,60045 48 49 59 54160 170 159 150 126169 161 191 199 28114,519 12,382 15,484 13,065 11,6005,901 6,308 6,145 5,626 5,476655 693 730 836 784806 801 758 624 5905,523 4,070 4,763 4,999 4,5541,739 1,675 1,847 1,933 1,9252,120 2,029 1,993 1,907 1,100(*) 417 (*) 371 («) 358 (*) 368- (5) 2,935 (3) 3,457 (!) 3.S62 (8) 3,8155,614 4,290 4,271 4,215 3,934878 - - - -250 250 249 312 4963,769 3,661 4,371 3,763 3,5822,506 3,183 2,583 2,660 3,95154 180 187 255 135387,112 414,892 413,032 398,323 393,06152 203 71 26 23 73,237 4,359 5,398 7,007 3,3983,492 4,430 5,424 7,030 3,405- - - 118,291 791,862194 378 260 287 25228,930 19,493 17,037 - -- - - 19,534 14,757 «) Prior to 1937-38 in the case of the Department of Transport and prior to 1938-39 in the case of National Defence and Pensions and National Health general administration expenses were not segregated from other expenditure of the respective services of the departments. (*) Prior to 1937-38 expenditures on civil aviation, now the Air Service Branch of the Department of Transport, were included under expenditures for the Air Service Branch of the Department of National Defence. The Budget-Appendix


STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST


five fiscal years-Continued (000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41Special Expenditure-Concluded % $ $ $ $Dominion share of joint Dominion-Provincial projects 12,692 8,841 6,259 7,147 2,321Dominion Projects 23,554 13,913 12,981 24,919 9,588Transportation facilities into mining areas 1,221 1,324 1,213 l' 121 50Railway Maintenance Relief Work 2,662 - 69,253 43,949 37,750 53,008 28,963Western Drought Area Relief- Direct Relief Feed and fodder and freight thereon... 5,144 3,517 11,9251 11,352/ 8,869 1,605 Freight charges on movement of cattle. 90 Expenses of marketing cattle 337 Purchase and distribution of foodstuffs 972 277 Prairie Farm Assistance Act, 1939- Administration 350Advances to Prairie Farm Emergency Fund - - - 7,500 4,8008,751 24,586 9,146 9,105 5,150Provision for reserve against estimated losses on 1938 wheat marketing guarantees 25,000 27,000 Provision for reserve to meet deficits resulting from the operations of the Canadian Wheat Board calculated as at July 31, 1940, not previously provided for... 10,500Total special expenditure 78,004 68,535 71,896 89,113 42,613Government Owned Enterprises Losses charged to Consolidated Fund- Canadian National Railway System, ex-eastern lines 37,449 37,882 48,194 34,850 14,451Eastern lines 5,854 4,464 6,120 5,245 2,514Prince Edward Island Car Ferry and Terminals (*) 388 427 461National Harbours Board 250 289 ' ' 138 94 40Trans-Canada Air Lines 111 818 412 Central Mortgage Bank 16 -Total charged to consolidated Fund 43,553 42,746 55,658 41,044 17,466Loans and advances non-active- Canadian National Steamships Cr. 1,754 104 6 8 National Harbours Board 2,419 1,983 3,279 1,027 716Total non-active advances 665 2,087 3,285 1,035 716Total government-owned enterprises 44,218 44,833 58,943 42,079 18,182Other Charges Write-down of assets chargeable to Consolidated Fund- Drought Area Relief Loans, 1934-35- Province of Saskatchewan 1,374 Reduction in soldier and general land settlement loans 628 750 1,023 1,643 9S3Yearly established losses in seed grain and relief accounts-Department of Mines and Resources 44 14 18 10 46 (*) Included with Eastern lines in previous years. The Budget-Appendix STATEMENT OF EXPENDITURES BY MAJOR CATEGORIES AND BY DEPARTMENTS FOR THE LAST five fiscal years-Concluded (000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41Other Charges-Concluded Write-down of assets chargeable to Consolidated Fund-Concluded Canadian National Railways Securities Trust Stock-Reduction due to line abandonments during calendar $ $ $ $ $years 1938, 1939 and 1940 Canadian National Railways Securities Trust Stock-Capital loss (exclusive of loss applicable to expired service life) on sale of S.S. Prince (*)- 2,713 2,600 2,334David and Prince Robert Cancellation of Canadian Farm Loan - """ 1,475Board-Capital Stock 20 10 14 11 12Province of Manitoba Treasury Bills.. Province of Saskatchewan Treasury (<) 805 ~ Bills Non-active Accounts- - (<) 17,682 General Land Settlement Loans - 139 - - -Active assets transferred to non-active. Fulfilment of guarantees-* Saskatchewan Seed Grain Loans 1936 (*) 18,487 7,150and 1937 Canadian National Railways Securities Trust Stock-Capital gain on redemption of £22,500,000 G.T.R. 2,638 4% Perpetual Debenture Stock - - - 5,504Total other charges 19,179 1,718 3,768 25,958 17,504Grand total expenditures 532,005 534,408 553,063 680,794 1,266,627 (i) An amount of $711,000 representing line abandonments during the calendar year 1937 was included in the adjustments resulting from the Canadian National Railways Capital Revision Act, 1937. (') Dominion contribution to Voluntary Debt Adjustment Program effected in Provinces of Manitoba and Saskatchewan respecting Drought Area Relief that was financed by the Dominion up to January 1, 1935-Manitoba $805,000, Saskatchewan $17,682,000. (4) These amounts are offset by a contra account on the revenue side.


SUMMARY OF REVENUES AND EXPENDITURES


(000 omitted) - 1936-37 1937-38 1938-39 1939-40 Estimated 1940-41$ 387,112 445,029 $ 414,892 510,298 $ 413,032 498,017 $ 398,323 541,617 $ 393,061 859,190 57,917 95,406 84,985 143,294 466,129 War and Special expenditures 78,004 8,464 68,535 3,010 71,896 1,256 207,404 164 834,475 8,450 69,540 3,492 44,218 19,179 65,525 4,430 44,833 1,718 70,640 5,424 58,943 3,768 207,240 7,030 42,079 25,958 826,025 3,405 18,182 17,504 " Government owned Enterprises... 136,429 661 116,506 3,385 138,775 2,898 282,307 20,313 865,116 3,931 135,768 57,917 113,121 95,406 135,877 84,985 261,994 143,294 861,185 466,129 Over-all deficit or increase of direct net debt 77,851 17.715 50.892 118.700 395.056 The Budget-Appendix


April 29, 1941