No. 222
12 October 1859
My Lord Duke
I have the honor to acknowledge the receipt of your Despatch of the 25th June No 2, calling upon me for an explanation with regard to certain discrepancies existing between the amount of the Bills drawn to meet the expenses incurred byManuscript imageby the Military in British Columbia, and the requisition made upon me by Colonel Moody.
2. I forward herewith for the information of Your Grace the copy of a communication from the Colonial Treasurer, from which it will be seen that the discrepancy pointed out by the Lords Commissoners of the Treasury arises from the difficulty which exists in this country of obtaining cash for Bills, and from the necessity which consequently follows for the Sellers of Bills to accommodate the Purchasers.
3. I am myself well aware that it is not always practicable to obtain cash for Bills, even at unfavourable rates of exchange, in consequence of theManuscript imagethe large number of Navy Bills that are frequently in the Market, and as the Treasury Bills are always, if possible, drawn at 30 days sight, while the Navy Bills are at seven, it becomes a matter of absolute necessity, if cash be required, to accommodate the Merchants by drawing Bills for such particular sums as they may desire. Were the Market more extensive and the demand for Bills greater, we could no doubt dispose of one requisition by drawing one Bill for the whole amount, and thus any seeming discrepancy would at once be avoided, but under existing circumstances we can only sell our Bills as Purchasers may offer.
We will, however, use our best endeavours in all future occasionsManuscript imageoccasions to avoid as much as possible drawing for small sums, and so far as we may be able prevent any confusion arising.
I have etc.
James Douglas
Minutes by CO staff
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Mr Merivale
This explanation is for the Treasury. Communicate it in L[ithographed] F[orm]?
HT Irving 19 Dec
At once.
HM D 20
Other documents included in the file
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Draft, Merivale to G.A. Hamilton, Treasury, 29 December 1859, forwarding copy of the despatch for information.
Documents enclosed with the main document (not transcribed)
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W. Driscoll Gosset, Treasurer, to Acting Colonial Secretary, 12 September 1859, explaining the discrepancy as per despatch.
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List of British Columbia bills drawn on the paymaster general.
Douglas, James to Pelham-Clinton, Henry Pelham Fiennes 12 October 1859, CO 60:5, no. 12497, 156. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.2, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/B59222.html.

Last modified: 2020-12-02 13:40:34 -0800 (Wed, 02 Dec 2020) (SVN revision: 5008)