34 CONSTITUTIONAL HISTORY OF THE PROVINCES.

Conditions

of the
Union.

sembly in order to give the people an opportunity of deciding
the question. Delegates were appointed to meet the Dominion
 Government and certain terms and conditions were
agreed to. The Assembly was dissolved but the new House
passed a resolution to the effect that the terms and conditions
 proposed did not secure to the Island a sum sufficient
bo defray the requirements of its local government. A compromise
 was ultimately arrived at, and the House unanimously
resolved to present an address to Her Majesty to unite the
‘sland with the Dominion. The necessary Order in Council
was issued on the 26th of June 1873, and the Island was
declared to be a province of the Dominion from the 1st day
of July of the same year.
The principal terms and conditions were :—
(1) That the Island not having incurred a debt equal to
50 dollars a head of its population, i.e. of 4,701,050 dollars,
should receive from the Dominion interest at 5 per cent.
per annum on the difference between the actual amount of
its indebtedness and the above amount.
(2) That as the Government of the Island held no lands
from the Crown and therefore enjoyed no revenue from
that source for the construction and maintenance of public
works, the Dominion Government should pay by yearly
instalments to the Government of the Island 45,000 dollars
yearly less 5 per cent. on any sum not exceeding 800,000
dollars which the Dominion might advance to the Island
for the purchase of land held by large proprietors.
(3) That in consideration of the transfer to Canada of
the powers of taxation mentioned in the BN.A. Act, 1867,
the Dominion was to pay the Government of the Island
30,000 dollars and an annual grant equal to 80 cents per head
of its population as shewn by the census of 1871, such grant
bo increase as the population increased until it reached 400,000.
(4) That the Dominion should assume the following
1 See Appendix,