Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Trevelyan, Charles Edward to Merivale, Herman 27 November 1858, CO 60:2, no. 12159, 320.
Abstract
Public Offices document.
Minutes (1), Other documents (1).
Trevelyan reports that the Lords of the Treasury see
no obstacleto the creation of a bank in British Columbia and Vancouver Island and the
proper encouragement should be afforded to the undertaking.
The minutes transmit the memo to the Secretary to the Bank of British North America and to Douglas.
Enclosed is a draft from Merivale to the Secretary to the Bank of British North America communicating the substance of the letter from the Treasury.
Trevelyan to Merivale (Permanent Under-Secretary)
Treasury Chambers
27 November 1858
Sir,
The Lords Commissoners of Her Majesty's Treasury having
had under their consideration your Letter of the 16th
September
last
1
transmitting a copy of a Letter from the
Secretary to the Bank of British North America submitting
proposals for establishing a Bank in British Columbia and
Vancouver's Island, and requesting Their Lordships' opinion
and adviceon
on the subject, I am commanded to acquaint you for
the information of Secretary Sir E. Bulwer Lytton that as
the Charter of the British Bank of North America empowers
that Corporation to establish branches "in any of the British
Colonies or Settlements in North America or adjacent to
British North America" there would appear to be no obstacle
to the proceeding contemplated by the Directors in the case
of Vancouver's Island and British Columbia, and My Lords are
of opinion that havingregard
regard to the advantage which those
Colonies would derive from the early establishment of well
conducted Banks supported by British Capital, proper
encouragement should be afforded to the undertaking. At
the same time Their Lordships' consider that it would be very
undesirable to give to this Bank any pledge in regard to
entrusting to it Government business or to such preference in any
respect as would give it the privilege or even appearance of
a monopoly. Some risk will no doubt, as represented in the
Letter fromthe
the Secretary to the Bank, attend the first
establishment of a Bank in a new Colony, but, on the other
hand, it is impossible to foresee the extent of banking
accommodation which may be soon required at either place, and
My Lords think that it may be safely left to Capitalists to
judge of the expediency of incurring the risk.
on the subject, I am commanded to acquaint you for
the information of Secretary Sir E. Bulwer Lytton that as
the Charter of the British Bank of North America empowers
that Corporation to establish branches "in any of the British
Colonies or Settlements in North America or adjacent to
British North America" there would appear to be no obstacle
to the proceeding contemplated by the Directors in the case
of Vancouver's Island and British Columbia, and My Lords are
of opinion that havingregard
regard to the advantage which those
Colonies would derive from the early establishment of well
conducted Banks supported by British Capital, proper
encouragement should be afforded to the undertaking. At
the same time Their Lordships' consider that it would be very
undesirable to give to this Bank any pledge in regard to
entrusting to it Government business or to such preference in any
respect as would give it the privilege or even appearance of
a monopoly. Some risk will no doubt, as represented in the
Letter fromthe
the Secretary to the Bank, attend the first
establishment of a Bank in a new Colony, but, on the other
hand, it is impossible to foresee the extent of banking
accommodation which may be soon required at either place, and
My Lords think that it may be safely left to Capitalists to
judge of the expediency of incurring the risk.
The interference of Her Majesty's Government should be
confined in the case of New Banks to the enforcement of
those requirements which the regulations for the establishment
of Banking Companies in the Coloniesprovide
provide for the Security
of the Public and such Banks should not be detained from
fair competition by previous concessions to existing Banks.
provide for the Security
of the Public and such Banks should not be detained from
fair competition by previous concessions to existing Banks.
The circumstance that a petition has been presented to
the Queen in Council for the Grant of a Charter to another
Company for conducting Banking operations in the Colonies
in question, apparently under creditable auspices, affords
additional ground for caution in regard to any pledge of
special favour to the Bank of British North America.
Minutes by CO staff
Other documents included in the file
Draft, Merivale to Secretary, Bank of British North America,
10 December 1858, communicating the substance of the letter from
Treasury.
Footnotes
- = CO to Tre, 16 Sep 58, Bank of BNA FIND?? CO-Tre, 16 Sep 58, BBNA. Cf. 9245, BBNA - CO, 9 Sep, CO 6/26 ??