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.