EXPENSE

The expence of Government in this country was formerly very moderate; for a series of years to that of 1726, it never exceeded 360,000 livres ; the two ensuing ones it was advanced to about half a million, on account of the Colony being at war at that time with the Indian nation of Renards ; from this period it gradually increased to a million, and from the breaking out of the war with Great Britain in 1744, till peace was concluded with her in 1748, the annual expence amounted to about two millons. In the month of August of that very year, the late Intendant, Monsieur Bigot, came over ; the expences have ever since increased, and to 1753 inclusive, dit not amount to less than four or five millions every year.

Livres.

In 1754 Bills of Exchange were drawn on France for... 6,000,000 1755 on ditto die sous, vossus sossss 5,500,000 1756 on ditto ditto ss sossssssssss 8,000,000 1757 on ditto ditto sous sossssmonsens 12,000,000 1758 on ditto ditto ss soossssss 24,000,000 1759 on ditto dittoe. soso sons ovouse 30,000,000

In 1760 the Intendant was directed not

to exceed two millions four

hundred thousand livres, and drew only for... 1,300,000

To the above is to be added, the paper money remaining in in the country, and for which no

0 Estates monastic )f inheriwho die

drove on k, all ex- "had one and the der.

COREEELIELELE

, in this 1oderate ; 1726, it the two to about e Colony 1 the Inis period lion, and var with Was COnnual exllons. In bry year, ot, came since indit not millions

Livres.

£4,533,333 6 8 Letters of Exchange have been drawn... 22,000,000 Of the whole, upon the most moderate computation, at £3,333,033 6 8 least eighty millions * are still due

Livres 118,800,000

The method of transacting the business was this. The Intendant for every expense emitted the ordinances which passed current with his bare signature only, one of which is annexed (No. 4,) to shew the nature of it; in August notice was given to the proprietors to bring them into the treasury within the month of September, and until the tenthof October, the ordinances in their possession, for which they took the Treasurer’s receipt, and commenced drawing the letters of exchange, which continued fifteen or twenty days, or until the navigation was shut up.

From the year 1740 to that of 1746, letters of exchange were drawn only for three fourths of the value brought into the treasury, these indeed payable in six, seven, eight, or nine months, when they were duly discharged, the remaining fourth, was reimbursed the proprietors, by a card money, of which there is nearly to the amount of a million still existing in the Colony.

From 1746 to 1752 Letters of Exchange were drawn for the full sum brought into the Treasury, and were all made payable some time within the issuing year, But the expences having increased considerably, orders were given to divide those of the year into three equal parts, payable in one, two or three years. This was put in execution in 1753, but the very year following, another arrangenent took place, only one fourth part was made payable in the course of the ensuing year, one half two years after that, and the remaining fourth in three,

and this method was never after observed till the year 1760.

By this means great numbers of those drawn in the preceding years, were not yet come in course of payment, when the King's arrêt of October 1759, suspended their payment entirely.

N. B. Throughout these calculations, and every other part of this Report, the French livre, to avoid fractions, is estimated at ten pence sterling.

OBSERVATIONS

1. I had the honour to inform the Lords of the Treasury very fully of the State of the King's Posts, in a letter to Mr. Martin, their Secretary, of the 7th of November last, at the same time that 1 transmitted all the Accounts relative thereto by Mr. Ainslie, whom I instrusted with the management of them until 1 could receive instructions from home; 1 am thoroughly persuaded, the proposal I therein made to their Lordships, of letting them to the highest bidder, for a term of years, is the surest expedient to make them profitable to His Majesty.

2. The duty on liquids will ever bring in a considerable sum, for though the Canadians are not in general given to drunkenness, yet men, women and children, are used to drink a certain quantity of strong liquors, the severity of the climate having probably introduced this practice ; but the great improvement likely to be made in the Fisheries, the consumption of these will considerably increase.

3. As the Canadians seem thoroughly reconciled to the use of British Corn Spirits, the consumption thereof could suffer no diminution from a moderate duty upon the same of six pence per gallon, and that of Rum or New England Spirits might be raised to a shilling ; this will check the importation of the latter, and favor that of the former ; that the Revenue may not suffer by this measure, it

will be necessary to prevent any attempts which may be made of smuggling by the Lakes, while they are navigable, as well as when they are to be travelled over by carriages.