I have received your [
Vancouver Island]
               despatch, N 44, of the 
13 of October
               relative to the sale of Town lots at 
Victoria and 
Van Couver's Island
               and to the precautions requisite in order to prevent the appropriation
               of such lots by persons who have
not
 not the intention or the requisite
               means to make substantial improvements.
               
 
            
            
               You have, however, judged very rightly in believing it to be of
               paramount importance in a new Colony
to
 to guard against mere speculative
               purchases of land. So far as regards Town and Suburban Lots, one
               effectual security will be provided by only disposing of them, as is
               directed in another despatch from me by auction and at a substantial
               upset price.
               
 
            
            
               The attempt to impose conditions of settlement on purchasers of
               land has failed in every Colony where it has been tried, both in
               Australia and in North America. The opportunities
of
 of evasion are too
               numerous to be counteracted, and the Government only finds itself
               engaged in a hopeless conflict with the entire body of occupants of
               land. But your own consideration of the subject has led you to think of
               one remedy which has been most efficient in those countries where it has
               been tried viz a tax upon lands. This tax you would apparently lay
               on unimproved lands only. This however, has been found
open
 open to the
               objections, first, that debates may arise as to the definition of
               unimproved land, and secondly, that a resident Legislature may possibly
               enforce the measure too stringently against absentees by raising such a
               tax to an undue amount. Both objections are obviated by a general tax
               on all lands whatever, whether improved or not. It may be made so
               moderate as to be scarcely felt upon lands
which
 which are really occupied,
               whilst nevertheless it must fall very heavily on any extensive tracts
               held by speculators with no other motive than the hope of some future
               rise in the general value of land. The measure as I have thus described
               it, is one applicable to all lands whatever. In the case of town and
               Suburban allotments, a somewhat higher rate would be requisite in order
               to get rid of mere speculative
occupants,
 occupants, but then it may be supposed
               that in such situations higher rates would at all events be required, and
               be appropriate, for the improvements of the town and neighbourhood.
               They would be under the management of local Municipalities when such
               should be created in the progress of time, and in the meanwhile they
               might be created, if it should be found expedient, under the authority
               of the Executive Government.
               
 
            
            
               I have thrown
out
 out these general views, derived from the large
               experience which has been acquired in the course of the last 30 years in
               the formation of new Settlements, for your information, and in order
               that you may have an opportunity of using them as far as you may find
               them applicable to the wants of your Government; but I am well aware how
               much must depend on the varying circumstances of different colonies,
               and it is not
my
 my wish in the remarks which I have made to dictate any
               precise measure or to fetter your discretion.