Colonial Despatches

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 byby 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 thethe 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 occasionsoccasions to avoid as much as possible drawing for small sums, and so far as we may be able prevent any confusion arising.