No. 45, Financial
7 August 1861
I have the honour to acknowledge the receipt of Your Grace's Despatch No 68 of the 1st of March last, enclosing the CopyofManuscript image of a correspondence with the Board of Treasury on the subject of the application contained in my Despatch No. 84 of the 28th of August 1860, for permission to raise a Loan of Fifty Thousand Pounds (£50,000) to be applied to the construction of Roads in British Columbia; a measure which I observe with gratitude has met with Your Grace's warm support, and I have to express the deepest regret that the financial statements, without whichtheManuscript image the Loan could not be effected in England, should, from unavoidable circumstances, have been delayed in their transmission.
2. The information sought by Your Grace having however, been communicated in my Despatches No. 7 of the 26th of January 1861, and No 12 of the 7th of February 1861, shewing from the actual accounts that the local revenue is fully able to meet the charge for theLoan,Manuscript image Loan, together with all other legitimate Colonial charges; and the accounts required by the Lords Commissoners of the Treasury having been forwarded to the Board of Audit by the last Mail, I take advantage of Your Grace's permission to renew, under those circumstances, my application on the subject, trusting that their Lordships sanction will not now be withheld, especially as Her Majesty's Government, so fully appreciate theimportanceManuscript image importance of opening up the internal communications of the Colony, and seeing that its financial position, which the formation of Roads will materially tend to improve, offers the most perfect security for the payment of the interest, and of the Loan itself, at the period fixed for its redemption.
3. In the correspondence with the Board of Treasury transmitted with the DespatchfromManuscript image from Your Grace to which I am now replying, I observe that their Lordships suggest the passing of an Act providing for the raising of the money required, on the security of part or the whole of the revenue of the Colony. I have issued instructions to the Attorney General to prepare an Act for that purpose, and he has informed me that he will be ready to submit one in the course of a fortnight, when it willbeManuscript image be transmitted for Her Majesty's approval.
4. In the meantime to prevent delay, I beg to inform Your Grace that the Act will authorise a Loan of Fifty Thousand Pounds (£50,000), bearing interest at Six per cent per annum, payable in England half yearly, by means of Coupons, and redeemable, half in 1872 and half in 1882. As I feel satisfied that the Colony will be in a position to meet the wholeliabilityManuscript image liability at any time after the close of the year 1862, I would have fixed that period for the payment of the whole Loan, but I believe, in that shape, it would probably be less acceptable to the public.
I have the honor to be
My Lord Duke,
Your Graces most obedient
and humble Servant
James Douglas
Minutes by CO staff
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Sir F. Rogers
Now revive this subject of a Loan by sending copy of this desph to the Treasury, & with it, a copy also of the Govrs desph No 7 of /61 which the T-y seem not yet to have recd.
Duke of Newcastle
Stating that the Act will be forwarded for their Lps consn when it arrives?
FR 2/10
N 5
Other documents included in the file
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Draft, Elliot to G.A. Hamilton, Treasury, 12 October 1861, forwarding copy of the despatch for consideration.