No. 70, Financial
15 November 1861
With reference to my despatch No. 45 of the 7th August last and to former correspondence, I have the honor to forward herewith an Act providing for the raising of the sum of One hundred thousand Pounds (£100,000) on the security of the Revenue of British Columbia,togetherManuscript image together with a Precis by the Attorney General of the object and character of the Act, which conveys my own views so very fully that it is unnecessary to re-open the subject in this despatch.
2. The liabilities of the Colony in respect to securities at present existing are as follows:
Road Bonds payable 31st December 1861 ...... £1600
" " " " " 1862 ...... £1650
" " " " " 1863 ...... £1500
Total ......£4750
as fully detailed in theaccompanyingManuscript image accompanying Statement, which also exhibits the liability originally incurred under this head, and the amount of Bonds which have already been redeemed.
3. For further information I enclose a Statement of the Revenue of the Colony for the nine months ended 30th September 1861.
4. I trust that these documents may be considered satisfactory, and I would only further remark that we have not strictly adhered to the plan proposed in my said despatchofManuscript image of the 7th August either as respects the extent of the Loan or time of payment, for owing to the increasing demands of the Country, I thought it was better to increase the Loan, and to extend the period of repayment to twenty years, all of which I hope will meet with your Grace's concurrence and support.
I have the honor to be
My Lord Duke,
Your Grace's most obedient
humble Servant
James Douglas
Minutes by CO staff
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Mr Elliot
This question is at present under consideration. In the letter to the Treasury of the 12 of Octr last (see 8723) they were told that the Act for raising the proposed loan of £50,000 would be sent to them as soon as it arrived. The present Act authorizes a loan of £100,000, an increase which the Govr & the Attorney General consider is fully warranted by the improving state of the Revenue of the Colony.
VJ 14 Jan
See separate minute.
TFE 16 Jany
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Sir F. Rogers
The principle of raising a loan for British Columbia on account of roads was determined upon in the Minutes on the Governor's despatch 9924. I have so placed the Duke's minute as readily to catch the eye in case His Grace should desire to refresh his memory. The Treasury agreed in their letter of the 7th of Jany. The amount of loan at that time contemplated was £50,000. £100,000 is now proposed, but it is right to add that this does not mean an immediate loan to that extent, but a maximum to be raised by instalments from time to time as may be required.
The Revenue in 1860 was about £53,000 which afforded a surplus of nearly £9000: the revenue of 1861 has in the first three quarters increased at a rate which would bring it up to about £62,000.
The first question will be whether the Duke of Newcastle will be willing under the circumstances not to object to the increased maximum of £100,000. As the principle of a large loan has already been assented to, perhaps the increased maximummayManuscript image may be acquiesced in, with an intimation to the Governor that money must not be raised faster than the growing improvement of the finances may show to be consistent with perfect security for payment of the interest in addition to providing for current public services.
If this should be the view adopted the next step would be, I presume, to submit the Act to the Treasury with a recommendation in it's favor.
As this is a question however of law, I pass the despatch at once through Sir F. Rogers's hands for his inspection.
TFE 16 Jany
Duke of Newcastle
I have nothing to add. I see nothing wh calls for remark in the details—wh however are properly a matter for the consn of the Treasy & not of this department.
FR 16/1
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I think it would have been better if the amount of the loan originally proposed had been adhered to, and the question of a further £50,000 reserved for a subsequent Ordinance. There may however be local reasons why it may be advisable to take the whole power at once, and I do not think it necessary to raise any objections in sending this to the Treasury.
N 18
Documents enclosed with the main document (not transcribed)
Not in file.
Other documents included in the file
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Draft, Elliot to G.A. Hamilton, Treasury, 28 January 1862, forwarding copy of the despatch for consideration.
Douglas, James to Pelham-Clinton, Henry Pelham Fiennes 15 November 1861, CO 60:11, no. 406, 146. 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/B61070.html.

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