236 DIVISION OF LEGISLATIVE POWER. 
The above powers may be classified under the heads of 
(1) Public Debt, (2) Direct Taxation, and (8) Indirect 
Taxation. 
Public Public Debt. The Public Debt of the Dominion is under 
Do the exclusive jurisdiction of the Dominion Legislature. By 
section 111 of the B.N.A. Act, Canada was made liable for 
the debts and liabilities of each province existing at the 
Union, and on the admission of British Columbia and Prince 
Edward Island the debts of these two provinces were taken 
over. 
The provinces, however, were made liable to Canada for 
the amount by which their respective debts at the time of 
the Union exceeded the respective sums mentioned in the 
Act; and on such sums five per cent. interest is payable’; and 
on the other hand Canada undertook to pay British Columbia 
interest on the difference between its indebtedness and the 
indebtedness of Nova Scotia and New Brunswick, and to pay 
Prince Edward Island the difference between its indebtedness 
and a certain amount specified in the order in Council. 
Direct Direct Taxation. A province may raise a revenue by 
direct taxes for provincial purposes. 
A. G. for The meaning of “direct taxation” was discussed in 4. @. 
Shan for Quebec v. Queen Insurance Co. 
Dra? In 1875 an Act was passed by the Legislature of Quebec® 
which enacted that every assurer carrying on in the province 
of Quebec, any business of assurance other than that of 
marine assurance should take out a license every year, 
and should pay for such license a certain percentage of every 
premium by means of an adhesive stamp affixed to the policy 
or receipt. In an action for penalties for not complying with 
the terms of the statute, it was contended, that the above 
Act was not within the powers conferred on the Legislature 
of Quebec. as the tax imposed by the Act was neither a 
LB. N. A, Act, 8s. 110-116. 2 L. BR. 3 App. Cas. 1090; 1 Cart. 117. 
3 89 Vie. ¢. 17.