thousand dollars, even after allowing for the unusual militia charges of that year. The debt of the Provinces is very nearly as large as the debt of the Union in 1860, but as the charge per head of the population has been diminishing during the last five years, and now ranges from a minimum pressure of only 20 cents per head of interest yearly, in Prince Edward Island, up to a maximum pressure of $1 25 per head of interest yearly, in Canada, it ought to be easily practicable for the financiers of the new confederation, if the experiment at all equals by its results the expectations of its advocates, to adjust any necessary burden of enlarged and prolific expenditure to the ability of the population. The enormous sum, amounting to nearly $150,000,000, which has already been laid out by the Provinces upon railways and canals, at once explains the origin of their existing public debt, and proves that neither British capital nor Provincial enterprise will be slow to come forward in undertakings of general value to the Provincial people. But heretofore, as Mr. Hatch in his report on Canadian and American commerce has, we think, fully shown, this outlay has failed to produce its expected results. The Provinces have tried to divert American commerce with Europe into Canadian channels, rather than to open a new Canadian commerce through British American ports by connecting the St. Lawrence directly with New Brunswick and Nova Scotia. With this object they have lavished money on canals which have so far failed to attract our Western transportation, but they are still bent on the same policy. Says Mr. Hatch: Other Canadian routes, navigable for ships, are also projected. The longest is that proposed from Georgian Bay, on Lake Huron, to Montreal, following chiefly the Ottawa River, and connecting it with the Mattawan, French River, and Lake Nipissing. It is stated that of its whole distance, of about 430 miles, less than thirty-eight would consist of artificial canal. It is estimated by the friends of this route that the dis tance will be 842 miles less by it from Chicago to Montreal than by the present means of transit by way of the lakes and St. Lawrence; and the cost of its completion is variously computed by Canadian authorities at from $24,000,000 to $50,000,000. It is also proposed to enlarge the Welland and St. Lawrence canals so as to permit the passage of seagoing vessels of 1,200 tons burden. The present dimensions of the various canals required to overcome the natural obstacles of the route from Lake Erie to the ocean, via the Welland Canal, Lake Ontario and the St. Lawrence are as follows: While the St. Lawrence canals, completing the system of navigation from the ocean to Lake Ontario, can now pass vessels of 800 tons burden, no vessels of more than 600 tons burden can go from Lake Ontario to Lake Erie, via Welland Canal, and the other lakes above the Falls of Niagara. It will, however, we suspect be found, when the Confederate system fairly gets into operation, that the Maritime Provinces will press for, and that the inland Provinces will be led to recognize the necessity of modifying this canal policy, and of working together to bring the Canadas directly into relations with the Atlantic coast. Without entering now upon the strictly commercial statistics of the proposed confederation under existing circumstances, we may properly assume that the inter-provincial commerce at least must be speedily benefitted by the removal of the restrictions under which it now labors; and whatever may be its ultimate issue as a form of Government, the stimulus which will be given by the experiment of Confederation to political thought and to commercial enterprise in the colonies can hardly fail, we think, to redound largely and directly to their advantage, while the operation of the experiment itself will certainly both deserve and command the very careful attention and study of our own statesmen and people. DEBT AND FINANCES OF MICHIGAN. The funded and fundable debt of the State of Michigan on the 30th November, 1866, amounted to $3,979,921, and was made up as follows; Six per cent. St. Marie canal bonds (guaranteed by State), due Jan. 1, 1878... Matured adjusted bonds, past due and interest stopped full paid $5,000,000 loan bonds, past due and in't stopped. War loan bonds, called in Jan. 1, 1866, Past paid (unrecognized) bonds $125,000 adjustable at... Total funded and fundable debt.. $216,000 250,000 500,000 500,000 7:0,000 1,111,500 463,000 $3,790,500 $100,000 4,000 12,000 1,100 72,321 $3,970,921 The amount of this held by the several educational funds is as follows, to wit.: The policy of investing these educational funds in State bonds has been pursued for several years, the object being the ultimate withdrawal of the State debt from the public market, and the safe investment of the funds themselves. If this policy is continued, the Treasurer in his report says, that the amount thus received, added to the annual levy of 3-16th of a mill for the Sinking Fund, will probably be sufficient to pay the State debt as fast as it matures. Deducting the investments already made, viz. : $1,728,404, from the funded and fundable debt as above given, viz.: $3,979,921, leaves the net amount of that debt outstanding on the 30th November, 1866, $2,251,517. The State tax for the year 166 consists of the following items, viz.: 2.7-10 Mill tax (Act 363, Laws of 1865) General.... 1-8 Mill tax (Act 122, Laws of 1861) $2,000,000 Loan, Sinking Fund. 1-16 Mill tax (Act 5, Laws of 1861) War Loan, Sinking Fund....... Military tax (Act 16, Laws of 1862). Appropriation for Insane Asylum (Act 192, Laws of 1865).. Total amount of State tax for 1866.. .... $464,550 67 38,495 73 19,247 87 19,628 70 40,000 00 $581,922 97 -the proceeds of which are destined for the service of 1867. The tax of 2.7-10 mills is levied, according to the Auditor's report, on the equalized valuation of 1861, and the sinking fund taxes of th and 1-16th mill on the valuation of 1866. In 1865 the State tax proper was 3.2 mills on the taxable property; in 1866 it was reduced to 2.7 mills, and for 1867 a rate of 1.5 mills, it is thought, will be abundantly sufficient, provided no extravagant appropriations be made. Specific taxes are derived from railroad, banking and insurance companies. These, especially the railroad and insurance taxes, are becoming important. A State military fund to aid, arm and equip military organizations within the State, is supported from a tax of 15c. levied on each voter. The following statement exhibits the receipts and disbursements ou account of the several funds administered by the State for the fiscal year ending Nov. 30, 1866: The following statement shows the principal sources of the receipts and the chief object of expenditure on account of the general fund. From this showing it appears that the resources of the State are greater than are necessary to cover ordinary expenditures, and that the credit bal ance is rising annually. The State debt is also being rapidly decreased, and will soon disappear, by direct payment or by absorption into the trust funds. The whole annual cost of the State expenses, including the cost of the debt, and reckoning the population at 850,000, is now only about 67 cents per capita; and in relation to the wealth of the State only about 85 cents on the $100 valuation. This estimate, however, does not include the school or other local taxes, of which the State Report gives no account. The equalized assessed valuation in 1866, as deduced from the rate and amount of the taxes levied for that year was $307,965,840. DEBT AND FINANCES OF LOUISIANA. The Auditor of Public Accounts, in his report to the General Assembly for the year ending December 31, 1866, reports the debt and liabilities of the State at that date to have been as shown in the following recapitulation : Liabilities for the property banks.... Debts proper in trust funds.. Debts proper in bonds, maturing between 1867 and 1906. Certificates of indebtedness. Grand total of debt and liabilities...... $4,838,933 38 1,562, 65 72 5,485,800 00 1.471,000 0 $13,357,999 05 Deducting from this sum the liabilities for the property banks, which, though represented by bonds of the State, are only contingent, the absolute debt of the State at the close of the year 1866 was.. From the total of this indebtedness can properly be deducted the following items: $8,519,065 72 State certificates of indebtedness, the same being gradually withdrawn from circulation. $1,471,000 00 Trust funds, the amounts of which are nominal, and may b considered as mere book accounts 1,562,265 12 State bonus held by the State for the trust funds. 1,190,500 00 State bonds issued to the Board of Levee Commissioners, and in possession of the State Treasurer Reducing the actual outstanding bonds to..... $3,595,300 00 The following statements exhibit in detail the several classes of the debt, showing the purposes for which issued, the amount, and the dates of maturity, &c.: The bonds issued in favor of the New Orleans and Nashville and the Mexican Gulf Railroads are 30 year bonds: all others issued before 1861 are 40 year bonds. The Levee Bonds of 1866, and the funding bonds of 1866 and 1867 are 20 year bonds. These certificates are receivable for all State dues, and are being paid in, which will necessitate a higher rate of taxation than has hitherto prevailed. Debts Proper in Trust Funds. Sundry Liabilitis, on various accounts... Amounts due Free School accumulating Fund, borrowed under Act No. 45 of 1863.. Amounts due General Government, under deposit act ... 50,000 00 65,070 81 Aggregate amount in trust December 31, 18:6.... $1,562,265 72 |