Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Douglas, James to Pelham-Clinton, Henry Pelham Fiennes 7 May 1860, CO 60:7, no. 6340, 231.
Abstract
Despatch to London.
Minutes (5), Enclosures (untranscribed) (1), Other documents (5).
No. 46, Financial
With reference to my despatch No 216 of the 10th of
September last, forwarding a letter from the Colonial Treasurer
representing the difficulties resulting from the paucity of
small coins in circulation
in
in these Colonies and requesting
that a supply might be sent out from England, I have the honor
now to enclose copy of a further letter I have received from
the Treasurer upon the same subject.
in these Colonies and requesting
that a supply might be sent out from England, I have the honor
now to enclose copy of a further letter I have received from
the Treasurer upon the same subject.
Minutes by CO staff
Mr Strachey
Perhaps you will have the goodness to let me have this back with any other papers which you may be considering on the subject. Whatever other questions may arise, I apprehend that the simple remedy for what is here stated will be to send out by the earliest safe opportunity a supply of British small coin. We are constantly in the habit of doing so to the Falkland Islands.
Perhaps you will have the goodness to let me have this back with any other papers which you may be considering on the subject. Whatever other questions may arise, I apprehend that the simple remedy for what is here stated will be to send out by the earliest safe opportunity a supply of British small coin. We are constantly in the habit of doing so to the Falkland Islands.
TFE
29 June
Mr Elliot
I annex for consideration a draft to the Treasury on this subject, in which I have not found it possible to separate the particular question, of sending out British silver & copper coins, from the general currency question, the Treasury having objected to the former application for such coins from the local Govt on the ground of the probable adoption by the Govt in B. Columbia, at no distant time, of the Dollar & Decimal system of the U States, which is already in common use among the Colonists, & with which, the
Treasury thought,
British silver & copper money could not be brought to harmonize.
Indeed the Treasury, in private communications which followed
their official letter suggested our deciding in favor of that
system at once, and sending out a stock of the Canada silver
& other decimal coins. Enquiries however, having been made as
to the working of these Canada coins, which the Treasury assumed
to be perfectly successful, it turned out that after a year
or more's trial, the Canada Govt had not
succeeded in
getting many of either the 20 cent or 10 cent pieces into
circulation—the Colonists it appears not finding them so
convenient as quarters and eighths—25c & 12 1/2c—and
continuing to use, as they have long done, British shillings
& sixpences in those capacities. See the private letter from
Mr Galt to myself annexed, and also the annexed report of the
Decimal Coinage Commission, which leads to a similar conclusion.
I annex for consideration a draft to the Treasury on this subject, in which I have not found it possible to separate the particular question, of sending out British silver & copper coins, from the general currency question, the Treasury having objected to the former application for such coins from the local Govt on the ground of the probable adoption by the Govt in B. Columbia, at no distant time, of the Dollar & Decimal system of the U States, which is already in common use among the Colonists, & with which, the
Treasury thought,
British silver & copper money could not be brought to harmonize.
Indeed the Treasury, in private communications which followed
their official letter suggested our deciding in favor of that
system at once, and sending out a stock of the Canada silver
& other decimal coins. Enquiries however, having been made as
to the working of these Canada coins, which the Treasury assumed
to be perfectly successful, it turned out that after a year
or more's trial, the Canada Govt had not
succeeded in
getting many of either the 20 cent or 10 cent pieces into
circulation—the Colonists it appears not finding them so
convenient as quarters and eighths—25c & 12 1/2c—and
continuing to use, as they have long done, British shillings
& sixpences in those capacities. See the private letter from
Mr Galt to myself annexed, and also the annexed report of the
Decimal Coinage Commission, which leads to a similar conclusion.
With this ill news of the Canada coins before us, and with
the imperfect information, as yet submitted, as to the
existing
currency practice in B. Columbia & Vancouvers Island, it is
not easy to come to any definite conclusion, & the Governor
himself appears to have come to none, as to the best future
system for these two Colonies, (which must obviously go
together in currency matters, though under different Governments).
existing
currency practice in B. Columbia & Vancouvers Island, it is
not easy to come to any definite conclusion, & the Governor
himself appears to have come to none, as to the best future
system for these two Colonies, (which must obviously go
together in currency matters, though under different Governments).
In the meantime, I believe, with yourself, the best course
will be to send out a moderate supply of British coin, as applied
for, and I have endeavoured to frame such a draft to the Treasury,
as
will reconcile them to this, avoiding as far as possible
controversial topics, which are better dropped, but pointing
out, in a general—not in a dogmatic way—a mode in which
following the example of Canada, it would be practicable for
the Pacific Colonists, if they think fit, to use B. silver &
copper, as small change for Dollars.
will reconcile them to this, avoiding as far as possible
controversial topics, which are better dropped, but pointing
out, in a general—not in a dogmatic way—a mode in which
following the example of Canada, it would be practicable for
the Pacific Colonists, if they think fit, to use B. silver &
copper, as small change for Dollars.
There appears to be no doubt that the general practice of
both Colonies is to keep accounts in Dollars & cents, & pay
them (as far as gold money is concerned, & chiefly) in gold
Dollar pieces of the U. States. (I conclude, chiefly US Dollar
Pieces
struck at the San Francisco Mint.) The Governt however
in both Colonies keeps accounts & expresses taxes & salaries
in Sterling, using, it must be presumed, to some extent—but
to what extent does not appear—our British money. And
persons having dealings with Governt probably use
British money in the same way. The Government rate of
exchange between sterling & Dollars appears to be 4s/2d to
the Dollar in both Colonies—and if the Dollar system is
adopted by the Govt, Sterling taxes & salaries
& obligations expressed in sterling generally would, I conclude,
have to be converted at that rate into Dollars. But this must
not be esteemed certain for every case.
struck at the San Francisco Mint.) The Governt however
in both Colonies keeps accounts & expresses taxes & salaries
in Sterling, using, it must be presumed, to some extent—but
to what extent does not appear—our British money. And
persons having dealings with Governt probably use
British money in the same way. The Government rate of
exchange between sterling & Dollars appears to be 4s/2d to
the Dollar in both Colonies—and if the Dollar system is
adopted by the Govt, Sterling taxes & salaries
& obligations expressed in sterling generally would, I conclude,
have to be converted at that rate into Dollars. But this must
not be esteemed certain for every case.
The practice of these Colonies as to small change is
obscure, & I have not met with any one from the spot, to
give me information about it. By the U. States Mint Law
(according to Brightley's Digest p. 634 in the office) the
central & branch units are not open to the public for coinage
of small silver pieces, under a Dollar, but these pieces can
be bought by the public
at the mints, on paying in gold at
par; the Mint officers, however, or Secy of the U. States
Treasury, regulating the supply of these small coins from
time to time. Whether practically, under this Law, sufficient
small coins are obtainable at San Francisco for the use of
our Pacific Colonies, I have not ascertained. In these
currency questions, unfortunately, there is a perpetual
distinction between law & practice, which makes it difficult
& unsafe to deal with them, without minute local knowledge.
at the mints, on paying in gold at
par; the Mint officers, however, or Secy of the U. States
Treasury, regulating the supply of these small coins from
time to time. Whether practically, under this Law, sufficient
small coins are obtainable at San Francisco for the use of
our Pacific Colonies, I have not ascertained. In these
currency questions, unfortunately, there is a perpetual
distinction between law & practice, which makes it difficult
& unsafe to deal with them, without minute local knowledge.
I add a dft. to the Governor, to which I think Treasy
will not object, leaving any additional instructions for
considn after we receive their reply.
WS
18 Sept
Other documents included in the file
Waterloo Hotel
24 Jany 1860
Dear Sir
In reply to your enquiry as to the result of our new Canadian
Coinage I beg to state that we have not found the 20 Cent or even
the 10 Cent Silver Coin acceptable to the Public—and we have still
a large amount of these Coins on hand.
When
When we again procure Coinage I have no doubt we shall adopt
the 25 Cent and 12 1/2 Cent as representing a quarter and eighth of
a Dollar. These values are more available for the ordinary
transactions of the public with us.
When we again procure Coinage I have no doubt we shall adopt
the 25 Cent and 12 1/2 Cent as representing a quarter and eighth of
a Dollar. These values are more available for the ordinary
transactions of the public with us.
Minutes by CO staff
British Columbia Currency
On the 10th Septr 1859 Govr Douglas wrote to the
Secretary of State enclosing a letter from the Treasurer of
British Columbia, Capt Gosset, and requested that "a supply
of coins might be sent out from England with as little delay
as possible so as to avoid the inconvenience & loss which is
now daily experienced in consequence of the absence of such coins."
This request was accompanied by certain proposals from
Capt Gosset to base a decimal coinage in the Pacific on the
English florin—and from the Governer to pay for the coins
in gold dust.
The despatch being forwarded to the Treasury they replied
on the
10th December stating that they would not object to
direct a supply of British Silver & Copper to be forwarded to
British Columbia, if the requisition had not been founded on
false views of currency—entertained by Capt Gosset. They
suggested a decimal coinage founded on the dollar, and expressed
a doubt whether the introduction of British coin now, might not
produce inconvenience hereafter.
10th December stating that they would not object to
direct a supply of British Silver & Copper to be forwarded to
British Columbia, if the requisition had not been founded on
false views of currency—entertained by Capt Gosset. They
suggested a decimal coinage founded on the dollar, and expressed
a doubt whether the introduction of British coin now, might not
produce inconvenience hereafter.
The question was handed over by Mr Merivale to Mr Strachey
on the 15 Decr and I conjecture that some interviews have taken
place between Mr Strachey & some of the Treasury authorities.
But it appears that practically the matter was then dropped
& nothing further done about it.
On the 25th June a despatch
was received, and on the
29th of June forwarded to Mr Strachey stating with
reference to the previous despatch of September 1859 that
the want of Coin was such that the Treasurer "has had for
some time past to give and take I.O.U's for portions of
account under 1/2 a Sovereign."
was received, and on the
29th of June forwarded to Mr Strachey stating with
reference to the previous despatch of September 1859 that
the want of Coin was such that the Treasurer "has had for
some time past to give and take I.O.U's for portions of
account under 1/2 a Sovereign."
On the 18th Sept Mr Strachey submitted a letter to
the Treasury and a draft despatch to the Governor with respect
to this subject, which are annexed. The object is to propose
that British Coin shall at once be sent out to British Columbia.
It seems to me (as in the cases of Hong Kong & New Brunswick) exceedingly unfortunate that this (which is the
obvious course/vide Mr Elliot's minute of 29 July) was not
proposed to the
Treasury months ago.
Treasury months ago.
I have no doubt it is the right course pending a settlement
of the general question. But I would not encumber the
immediate practical question with the general arguments which
Mr Strachey raises.
On the general question, I cannot, I confess entertain
any doubt that it will be found impossible to force upon any
part of N America any other mode of computation than that by
dollars & cents—that if the computation be by dollars &
cents it is expedient that the coinage should follow the
computation—and therefore that the proposal of the Treasury
to coin parts of a dollar, is a more effectual course than
sending out coins founded on the British Sovereign—which
must either pass at a false value or at an inconvenient value
(a florin e.g. must pass at 51 cents which is an inconvenient
amount or at 50 cents which is a false one).
sending out coins founded on the British Sovereign—which
must either pass at a false value or at an inconvenient value
(a florin e.g. must pass at 51 cents which is an inconvenient
amount or at 50 cents which is a false one).
It is true that Mr Galt says that the 20 & 10 cent pieces
have not (at least as yet) found favour in Canada. But he does
not propose to introduce subdivisions of a Sovereign, but
different subdivisions of a dollar. Viz 25 cents & 12 1/2 cents.
I do not therefore see the good of raising a question as
to the mode of getting sovereigns & shillings into concurrent
circulation in British Columbia. And would simply write
to
the Treasury transmitting the Governor's last despatch and
stating that the Secretary of State does not wish at present
to enter into the general questions discussed in the Treasury
letter of 10 Decr 1859 which however will be forwarded as
their Lordships desire to British Columbia but that perceiving
that their Lordships do not absolutely object to forward a
certain amount of British Coins to British Columbia in order
to meet the present necessities of the Colony—he anticipates
that the state of things described by Capt Gossets letter
will be held by them to justify that course—and he would request
that the amount applied for in
Governor Douglas' despatch
of the [blank] Sept may be forwarded
without delay as he then desired.
to
the Treasury transmitting the Governor's last despatch and
stating that the Secretary of State does not wish at present
to enter into the general questions discussed in the Treasury
letter of 10 Decr 1859 which however will be forwarded as
their Lordships desire to British Columbia but that perceiving
that their Lordships do not absolutely object to forward a
certain amount of British Coins to British Columbia in order
to meet the present necessities of the Colony—he anticipates
that the state of things described by Capt Gossets letter
will be held by them to justify that course—and he would request
that the amount applied for in
Governor Douglas' despatch
of the [blank] Sept may be forwarded
without delay as he then desired.
It might be added that in case their Lordships should
be of opinion that the peculiar views of Capt Gosset had led
him to ask for an excessive number of florins it would be
easy to reduce the number of that coin by sending out:
£
60,000 Shillings = 3000
and 30,000 florins = 3000
6000
instead of
40,000 Shillings = 2000
40,000 florins = 4000
6000
£
60,000 Shillings = 3000
and 30,000 florins = 3000
6000
instead of
40,000 Shillings = 2000
40,000 florins = 4000
6000
It would probably be time to write to the Governor when we
receive the Treasury answer.
FR
15/10
Documents enclosed with the main document (not transcribed)
W.D. Gosset, Treasurer, to W.A.G. Young, Acting Colonial
Secretary, 2 May 1860, discussing the difficulties encountered due
to the lack of small coins in Vancouver Island and British Columbia.
Other documents included in the file
