TERMS OF UNION OF PRINCE EDWARD 
ISLAND. 
OrpER IN COUNCIL DATED 26th June. 1873 
Ll. Canada shall be liable for the debts and liabilities of 
Prince Edward Island at the time of the Union. 
2. That in consideration of the larger expenditure authorized 
by the Parliament of Canada for the construction of railways and 
canals and in view of the possibility of a re-adjustment of the 
financial arrangements between Canada and the several provinces 
now embraced in the Dominion as well as the isolated and excep- 
tional condition of Prince Edward Island that Colony shall on 
entering the Union be entitled to incur a debt equal to 50 dollars 
per head of its population as shown by the census returns of 1871 
that is to say 4,701,050 dollars. 
3. That Prince Edward Island not having incurred debts 
equal to the sum mentioned in the next preceding resolution shall 
oe entitled to receive by half-yearly payments in advance from the 
general government interest at the rate of five per cent. per annum 
on the difference from time to time between the actual amount of 
its indebtedness and the amount of indebtedness authorized as 
aforesaid, viz. 4,701,050 dollars. 
4. That Prince Edward Island shall be liable to Canada for 
the amount (if any) by which its public debt and liabilities at the 
date of the Union may exceed 4,701,050 dollars and shall be 
shargeable with interest at the rate of five per cent. per annum. 
5. That as the Government of Prince Edward Island holds 
no lands from the Crown, and consequently enjoys no revenue 
from that source for the construction and maintenance of local 
works the Dominion Government shall pay by half-yearly instal- 
ments in advance to the Government of Prince Edward Island 
15,000 dollars per annum less interest at five per cent. per annum