General
Court of
Appeal,

&c.

Creation

of Consolidated

Fund.

the Courts of Probate in Nova Scotia and New Brunswick), and of the Admiralty Courts in cases where the Judges thereof are for the time being paid by salary, shall be fixed and provided by the Parliament of Canada.

101. The Parliament of Canada may, notwithstanding anything in this Act, from time to time, provide for the constitution, maintenance, and organization of a General Court of Appeal for Canada,1 and for the establishment of any additional Courts for the better Administration of the Laws of Canada,

VIII. REVENUES; DEBTS; ASSETS; TAXATION. 102. All Duties and Revenues over which the respective Legislatures of Canada, Nova Scotia, and New Brunswick Revenue before and at the Union, had and have power of appropriation, except such portions thereof as are by this Act reserved to the respective Legislatures of the Provinces, or are raised by them in accordance with the special powers conferred on them by this Act, shall form one Consolidated Revenue Fund, to be appropriated for the public service of Canada in the manner and subject to the charges in this Act provided.

Expenses of collec

tion, &c.

103. The Consolidated Revenue Fund of Canada shall be permanently charged with the costs, charges and expenses incident to the collection, management, and receipt thereof, and the same shall form the first charge thereon subject to be reviewed and audited in such manner as shall be ordered by the Governor-General in Council until the Parliament otherwise provides.

1 In 1875 a Supreme Court was set on foot in Canada. It consists of a chief justice and five puisne judges, and has both criminal and civil appellate jurisdiction throughout the Dominion. The judgement of the Court is final, 'saving any right which Her Majesty may be graciously pleased to exercise by virtue of her royal prerogative.' By these words the right of the Judicial Committee of the Privy Council to allow an appeal is preserved. In 1877 the Exchequer Court was separated from the Supreme Court with one judge. An additional judge was appointed in 1912.

An Act of the Dominion Parliament authorizing questions either of law or of fact to be put to the Supreme Court and requiring the judges of that Court to answer them at the request of the Dominion Government is intra vires of that Parliament. (Att.-Gen. for Ontario v. Att.-Gen. for Canada, A. C. 1912, pp. 581–9.)

of Pro

104. The annual Interest of the public debts of the Interest several Provinces of Canada, Nova Scotia, and New Bruns- vincial wick at the Union shall form the second charge on the public Consolidated Revenue Fund of Canada.

debts.

Governor

105. Unless altered by the Parliament of Canada,1 the Salary of salary of the Governor-General shall be Ten Thousand General. Pounds sterling money of the United Kingdom of Great Britain and Ireland, payable out of the Consolidated Revenue Fund of Canada, and the same shall form the third charge thereon.

106. Subject to the several payments by this Act charged Appropriation on the Consolidated Revenue Fund of Canada, the same from time shall be appropriated by the Parliament of Canada for the to time. public service.

&c.

107. All Stocks, Cash, Bankers' Balances, and Securities Transfer of Stocks, for money belonging to each Province at the time of the Union, except as in this Act mentioned, shall be the property of Canada, and shall be taken in reduction of the amount of the respective debts of the Provinces at the Union.

108. The Public Works and Property of each Province Transfer enumerated in the Third Schedule to this Act shall be the of proProperty of Canada.

perty in Schedule.

109. All Lands, Mines, Minerals, and Royalties belonging Property in Lands, to the several Provinces of Canada, Nova Scotia, and New Mines, &c. Brunswick, at the Union, and all sums then due or payable for such Lands, Mines, Minerals, or Royalties, shall belong to the several Provinces of Ontario, Quebec, Nova Scotia, and New Brunswick in which the same are situate or arise, subject to any trusts existing in respect thereof, and to any interest other than that of the Province in the same.2 110. All Assets connected with such portions of the Assets

1 One of the first measures of the Canadian Parliament was a Bill reducing the salary to £6,500 per annum. But the assent of the Crown was withheld and the proposal not persisted in by Canada. It lost, however, to the Dominion the services of Lord Mayo as Governor-General.

2 This section gives to each Province the entire beneficial interest of the Crown in all lands within its boundaries, with the exception of such lands as the Dominion acquired rights to under Secs. 108 and 117. (Lord Watson in Attorney-General of Ontario v. Mercer, 8 App. Cas. 767.)

connected

with Pro- Public Debt of each Province as are assumed by that Province shall belong to that Province.

vincial

debts.

Canada to

be liable

111. Canada shall be liable for the Debts and Liabilities to them. of each Province existing at the Union.

Debts of
Ontario
and
Quebec.

Assets of Ontario and

112. Ontario and Quebec conjointly shall be liable to Canada for the amount (if any) by which the debt of the Province of Canada exceeds at the Union Sixty-two million five hundred thousand dollars, and shall be charged with interest at the rate of five per centum per annum thereon.

113. The Assets enumerated in the Fourth Schedule to this Act, belonging at the Union to the Province of Quebec. Canada, shall be the property of Ontario and Quebec

Debt of
Nova
Scotia.

Debt of
New
Bruns-
wick.

conjointly.

114. Nova Scotia shall be liable to Canada for the amount (if any) by which its public debt exceeds at the Union Eight million dollars, and shall be charged with interest at the rate of five per centum per annum thereon.

115. New Brunswick shall be liable to Canada for the amount (if any) by which its public debt exceeds at the Union Seven million dollars, and shall be charged with interest at the rate of five per centum per annum thereon. Payment 116. In case the public debts of Nova Scotia and New of interest Brunswick do not at the Union amount to Eight million Scotia and and Seven million dollars respectively, they shall re

to Nova

New

Brunswick.

spectively receive, by half-yearly payments in advance from the Government of Canada, interest at five per centum per annum on the difference between the actual amounts of their respective debts and such stipulated amounts.

Provin- 117. The several Provinces shall retain all their recial public property. spective public property not otherwise disposed of in this Act, subject to the right of Canada to assume any lands or public property required for Fortifications or for the defence of the country.

Grants to
Provinces,

118. The following sums shall be paid yearly by Canada

to the several Provinces for the support of their Governments and Legislatures:—

Two hundred and Sixty thousand; and an annual grant in aid of each Province shall be made, equal to Eighty cents per head of the population as ascertained by the census of One thousand eight hundred and sixty-one, and in the case of Nova Scotia and New Brunswick, by each subsequent decennial census until the population of each of those two Provinces amounts to Four hundred thousand souls, at which rate such grant shall thereafter remain. Such grants shall be in full settlement of all future demands on Canada, and shall be paid halfyearly in advance to each Province; but the Government of Canada shall deduct from such grants, as against any Province, all sums chargeable as interest on the public debt of that Province in excess of the several amounts stipulated in this Act.1

1 Nova Scotia was at first much aggrieved at the amount of financial aid received under the British North America Act. As the result of negotiations between Sir John Macdonald and Joseph Howe 'better terms' for that Province were sanctioned by the Canadian Parliament in their session of 1869. (See Pope's Life of Sir John Macdonald, vol. ii, pp. 32-7 and 301-11.)

Complaints having been afterwards made of the amount of the subsidies granted to the Provincial Governments, an agreement was arrived at by an Interprovince Conference in 1906, which was embodied in the British North America Act, 1907 (7 Edward VII, ch. 11). The new annual subsidies which replace those granted under Sec. 118 of the original Act are as follows:

(1) A fixed grant according to population.

(2) A grant at the rate of 80 cents per head of the population of the Pro

Further grants to New Brunswick.

Form of

payments.

manufac

119. New Brunswick shall receive, by half-yearly payments in advance from Canada, for the period of ten years from the Union, an additional allowance of Sixty-three thousand dollars per annum; but as long as the public debt of that Province remains under Seven million dollars, a deduction equal to the interest at five per centum per annum on such deficiency shall be made from that allowance of Sixty-three thousand dollars.

120. All Payments to be made under this Act, or in discharge of liabilities created under any Act of the Provinces of Canada, Nova Scotia, and New Brunswick respectively, and assumed by Canada, shall, until the Parliament of Canada otherwise directs, be made in such form and manner as may from time to time be ordered by the GovernorGeneral in Council.

Canadian 121. All articles of the growth, produce, or manufacture tures, &c. of any one of the Provinces shall, from and after the Union, be admitted free into each of the other Provinces.

Customs

and Excise Laws.

Exportation and

122. The Customs and Excise Laws of each Province shall, subject to the provisions of this Act, continue in force until altered by the Parliament of Canada.

123. Where Customs Duties are, at the Union, leviable on importa- any goods, wares, or merchandises in any two Provinces, tion as be- those goods, wares, and merchandises may, from and after Provinces. the Union, be imported from one of those Provinces into

tween two

Lumber dues in New Brunswick.

the other of them, on proof of payment of the Customs Duty leviable thereon in the Province of exportation, and on payment of such further amount (if any) of Customs Duty as is leviable thereon in the Province of importation.

124. Nothing in this Act shall affect the right of New Brunswick to levy the lumber dues1 provided in Chapter vinces up to 2,500,000 and at the rate of 60 cents per head of so much of the population as exceeds that number. (3) An additional grant of $100,000 given to the Province of British Columbia for a period of ten years. (4) An additional grant of $100,000 is payable to Prince Edward Island under an Act of 1912, and the payments to Manitoba were revised by the Extension of Boundaries (Manitoba) Act (2 G. V, ch. 32).

1 Under Article XXXI of the Treaty of Washington of 1871 these lumber dues were abolished; but New Brunswick received compensation from the Dominion for their abolition.