1206. The Customs duties are collected by the Department of Customs, and the amount of duty received on the various dutiable articles imported is set out in detail in the chapter on Trade and Commerce. The Excise duties are collected by the Department of Inland Revenue, and it will be seen from the foregoing table that there was a decrease in accrued revenue of $554,530, there having been a decrease under all heads except those of petroleum inspection fees, bonded manufactures and other receipts. Spirits, tobacco and cigars together contributed 88.1 per cent of the total Excise receipts. The total amount accrued has been exceeded four times since Confederation. The average amount for the three years, 189192-93, was $7,668,904, and for the fourteen years, 1881-93, $6,391,179 The figures for 1894 show an increase of over 7.8 per cent over the 1891-93 period and of 29 per cent over the 1881-93 period.

1207. English statesmen take the consumption of tea and sugar as i gauge of the prosperity of the people. Whether the tea test applies to Canada equally well may be doubted, as coffee is largely used. The follow ing table shows the consumption of tea and sugar in Canada :CONSUMPTION OF TEA AND SUGAR PER HEAD IN CANADA, 1868-95.

:

1208. With the exception of the United Kingdom and the Australasian colonies, the average consumption of tea is much larger in Canada than i other countries; in the first named country the consumption is about 55 lbs. per head, and in Australasia about 7.97 lbs. per head. The country of the next largest consumption is the United States, with about 1-38 Its per head. The same remarks apply equally well to the consumption & sugar, that of the United Kingdom being 70 lbs. and of the Australasia colonies 85 lbs. per head. The United States, however, consume about bå lbs. per head, which is less than in Canada. Both tea and sugar are more largely consumed in English speaking than in foreign countries.

These tests must be taken with the limitations arising from increased cheapness owing (a) to changes in the fiscal policy of any country to which they are applied, (b) to reduced rates of charges in connection with trans portation and (c) increased areas of production. Thus the increased ares devoted to tea culture by the development of the East Indian teas has had a great effect upon prices, and the reduction in prices has led to a great increase in consumption. In the same way the policy of government in developing the production of sugar from beets in Austria-Hungary, Ger

many and France has so greatly enlarged the area of sugar making, and so greatly cheapened the article for export, that the price is reduced both through competition and favourable bounty systems as to place sugar within the reach of the poorest.

1209. The amount of taxation in the United Kingdom and principal British possessions, with the proportion of population and revenue, are given below

TAXATION IN BRITISH POSSESSIONS.

*The above figures (except for United Kingdom, Canada and Newfoundland are taken from the Victorian Year-Book, 1894. +Customs Revenue only.

The average per cent of revenue derived from taxation in the 34 divisions of the Empire is 66.39 per cent. The average taxation per head of the various portions of the Empire specified above is $7.01. Canada's is $5.01 per head.

1210. The following table gives the amount of taxation, as nearly as it can be arrived at, in some of the principal foreign countries:

It will be seen that the amount raised by taxation in France is larger than in any country named in the two tables, the United Kingdom having second place; Russia, Austria-Hungary, United States, Italy, Germany and India following in the order named. Taxation per head is much larger in the Australasian colonies than in any of the countries named, except in the Argentine Confederation. In Great Britain taxation is $4.77 per head more than in Canada, and in the United States it is 75 cents less.

1211. The gross public debt of the Dominion of Canada on 30th June, 1895, amounted to $318,048,755; on the same date in 1894 it was $308,348,024. There was, therefore, an increase during the ear in the gross amount of liabilities of $9,700,731.

The net public debt on the same date in 1895 was $253,074,927, and in 1894, $246,183,029, being an increase in the actual net liabilities of 6,891,898. This increase is to be accounted for as follows:

1212. The following table gives the total liabilities and assets, and the net liabilities, together with the multiple of revenue, for every year since Confederation :—

1206. The Customs duties are collected by the Department of Customs, and the amount of duty received on the various dutiable articles imported is set out in detail in the chapter on Trade and Commerce. The Excise duties are collected by the Department of Inland Revenue, and it will be seen from the foregoing table that there was a decrease in accrued revenue of $554,530, there having been a decrease under all heads except those of petroleum inspection fees, bonded manufactures and other receipts Spirits, tobacco and cigars together contributed 88.1 per cent of the total Excise receipts. The total amount accrued has been exceeded four times since Confederation. The average amount for the three years, 189192-93, was $7,668,904, and for the fourteen years, 1881-93, $6,391,179 The figures for 1894 show an increase of over 7-8 per cent over the 1891-93 period and of 29 per cent over the 1881-93 period.

1207. English statesmen take the consumption of tea and sugar as a gauge of the prosperity of the people. Whether the tea test applies to Canada equally well may be doubted, as coffee is largely used. The follow ing table shows the consumption of tea and sugar in Canada :— CONSUMPTION OF TEA AND SUGAR PER HEAD IN CANADA, 1868-9.

1208. With the exception of the United Kingdom and the Australasia: colonies, the average consumption of tea is much larger in Canada than in other countries; in the first named country the consumption is about 5-53 lbs. per head, and in Australasia about 7.97 lbs. per head. The country t the next largest consumption is the United States, with about 1.38 lbs per head. The same remarks apply equally well to the consumption of sugar, that of the United Kingdom being 70 lbs. and of the Australasia colonies 85 lbs. per head. The United States, however, consume about 63 lbs. per head, which is less than in Canada. Both tea and sugar are more largely consumed in English speaking than in foreign countries.

These tests must be taken with the limitations arising from increase cheapness owing (a) to changes in the fiscal policy of any country to which they are applied, (b) to reduced rates of charges in connection with transportation and (c) increased areas of production. Thus the increased area devoted to tea culture by the development of the East Indian teas has had a great effect upon prices, and the reduction in prices has led to a great increase in consumption. In the same way the policy of government in developing the production of sugar from beets in Austria-Hungary, Ger