27 JUNE 1891, Page 3

The Colonial Governments live a good deal on hope. Mr.

Foster, the Canadian Chancellor of the Exchequer, introduced his Budget on Wednesday, and announced a surplus, the re- venue for 1891-92 being calculated at 27,270,000, and the expen- diture at 26,842,600. The Government, therefore, proposed to add 2300,000 a year to the liquor-duties, but swept away the sugar-duties en bloc, to the great contentment, among others, of American sugar-planters, who have an important vote in Congress. The Budget is very popular, and the policy is probably sound ; but it is very difficult to reimpose taxes like those on sugar, and we should like to see Canada, like Great Britain, think of using surpluses in repayment of debt. The Colonial idea seems to be that the debts will become trifling as the Colonies grow; and so they would, but every bit of growth is discounted in expenditure for "public improve- ments," some of which are certainly intended to secure votes. The " horny-handed " democracy does not mind outlay, provided there is plenty of highly paid work going about.