No. 75, Military
30 November 1861
With reference to Your Grace's Despatch of the 14th July last, marked "Separate," I have the honor to forward herewith an Estimate of the Expenditure necessary for the maintenance of the Detachment of Royal Engineers serving in this Colony, during the financial year 1862-63, amounting in the wholetoManuscript image to the Sum of Seventeen Thousand, Nine Hundred pounds (£17,900).
2. I earnestly trust it may be within the power of Your Grace to provide this aid from Imperial Funds. The Colony cannot undertake this expenditure without suffering material injury. I fully recognize the weight of Your Grace's remarks in your Despatch of the 11th May last No 78, and heartily appreciate the evidence of Your Grace's desire to accord to this infant Colony every assistance that can consistently be expected. But the demands now upon me for money are greater than ever. The present circumstances of the ColonypressinglyManuscript image pressingly call for the outlay of every available fraction upon the development of the communications to the recently discovered Gold fields in the Carriboo District, distant some 500 miles. The reports that have gone abroad backed as they have been, by the production of the gold, proclaim that District as the richest gold field yet known in the world. A rush to the mines when the season opens will be the natural consequence. Provisions must be thrown into the Country, and the present enormous cost of transport must be reduced to render them more within the reach of all, else the most fruitful source of evil will result. The sum we hope to raise on LoanwillManuscript image will not be more than sufficient to start the work. We have but the Revenue of the Colony to rely on to prosecute it.
3. I feel confident Your Grace will readily appreciate these circumstances, and I need not further dilate upon them to induce you to continue to us an aid that is most essential in the present condition of the Colony. Were it not so, I would not so anxiously beg for it, but in doing so, I would respectfully remind Your Grace that, with but small exception, the Colony of British Columbia, has paid all her Civil expenses, and that the only assistance she hasobtainedManuscript image obtained from the Imperial Treasury has been for the maintenance of the Military Force which must be present in the Country to guard Imperial interests.
I have the honor to be
My Lord Duke
Your Grace's most obedient
and humble Servant
James Douglas
Minutes by CO staff
Manuscript image
Mr Elliot
Governor Douglas writes excellent despatches especially when he wants money.
ABd 5 Feb
See separate minute.
TFE Feby
Manuscript image
Pay of the Royal Engineers in British Columbia

In considering this subject, it will be necessary to bear in mind the peculiar nature of the remuneration of the Corps of Royal Engineers. They are paid—both Officers and Men—by a small fixed pay, called, I believe, Engineer pay (analagous in the case of Officers to Half-pay in the line) with working-pay and additional allowances wherever they may be employed. For brevity's sake, we distinguish all the receipts of the Royal Engineers in British Columbia beyond their small fixed pay, as "Colonial Pay", but it must be remembered that at least half of this would probably have to be paid to the same Engineers if they were at home or in any other Colonial Garrison. I mean that the Colonial Pay in British Columbia is not a sheer extra allowance caused exclusively by their being there, like the extra allowances to Troops of the line in Australia or other places.
TheManuscript image
The amount voted by Parliament for the Colonial Pay of the Engineers in British Columbia has been for each of the last two years £12,200. The present despatch estimates their Colonial pay next year at about that sum; but there are other annual charges for provisions, fuel, Barracks, &c amounting to £5,900, thus making up £18,100. The Engineer Pay provided for on Army Estimates is nearly £4000; so that the grand total may be slated in round numbers at £22,000.
I apprehend that to increase the vote submitted to Parliament, which the Governor wishes, must be quite out of the question. In England everyone will be wishing for a diminution.
Such being the facts, three courses occur to me as open to consideration:
1st To continue to ask for a Parliamentary Grant on the Colonial Estimates of £12,200 for Colonial Pay, leaving the Colony to meet the other local demands of nearly £6000.
2nd To divide the whole Colonial expense of £18,000 into twomoietiesManuscript image moieties, and ask Parliament to grant on the Colonial Estimates one moiety, amounting to £9000.
3rd To take the entire cost both Imperial and Colonial of the Engineers, amounting to £22,000, and to require the Colony to find one moiety amounting to £11,000, whilst the Army Estimates do already provide £3,800, so that £7,200 would remain to be voted on the Colonial Estimates.
The last plan would of course be the best in an English point of view, if we can be sure that the Colony is capable of doing it's share. I agree in a remark of Mr Blackwood's that Governor Douglas is off-hand in his way of dealing with financial questions, and I have shown on his annual estimates that with a great appearance of copiousness in his returns, the information he gives is in fact superficial. This is calculated to shake confidence in his representations of his exigencies: and with regard to the important matter of Roads it must be borne in mind that authority to raise a considerable loan iscontemplatedManuscript image contemplated which would admit of his sparing more than could otherwise be done out of the proceeds of the current revenue.
In conclusion I must say that I understand that the accounts show that Governor Douglas has quietly disregarded all our successive intimations of the amount granted for the Engineers, and has actually drawn Bills on the Treasury, not merely for their Colonial Pay, but even for the miscellaneous allowances which are above shown to be at the rate of £6000 per annum. I think that he ought instantly to receive a stern admonition on that subject, and I should almost go so far as to tell him that if he ventures to draw Bills on the Treasury, disregarding instructions, he must be prepared to find himself held personally responsible for the amount.
TFE 6 Feby
Duke of Newcastle
I would adopt Mr Elliot's third course.Manuscript image If Govr Douglas has really disregarded positive instructions in the way mentioned by Mr E., I think he should be called upon to refund from Colonial funds the sums so drawn.
CF 8
I agree. The English Public & Parlt will naturally expect that a Colony the produce of whose gold-diggings is now so marvellous should be self-supporting, and in addition to the information proposed above of an unpleasant character to the Govr I should be inclined to say that B. Columbia must appear on the Colonial Estimates this year for the last time.
N 9
Manuscript image
Mr H. Irving
As the Colonial Estimates are on the eve of being delivered, I will take Mr Fortescue's views today about an item for extra pay to the Marines. Will you therefore look into the correspondence to see whether we can state any particular sum for their pay whilst doing Engineer work in Columbia? We must also I suppose try to get from the Admiralty by personal application the amount of pay necessary from the time of their landing in San Juan to the 31st of March 1862. This will be simple for it will be single pay of that amount of force. The best way will be to ask General Wellesley, Adjutant General of Marines, Spring Gardens.
TFE 9 April
Mr Elliot
As regards the pay of the MarinesManuscript image employed under Colonel Moody I think that it may be estimated at £2500. The number of men and the rates of pay are given in a despatch from the Governor of 8 June 1859 No 168. Their employment lasted from 14 April to 31 July.
The pay of a detachment of 100 Marines amounts to about £2500 per annum. It will be necessary to provide for two years pay of theManuscript image Detachment in San Juan to March 1862, as they were sent to the Island early in 1860.
The Item therefore for extra pay for the Marines in San Juan (being a sum equivalent to their regular pay) will be £5000.
Documents enclosed with the main document (not transcribed)
Manuscript image
"Estimate of the probable sums required to defray the Expenditure of the Military Department irrespective of Regimental Pay from 1st April 1862 to March 31st 1863," signed by Douglas.
Other documents included in the file
Manuscript image
Draft, Elliot to G.A. Hamilton, Treasury, 21 February 1862, forwarding copies of two despatches on the finances of the colony for consideration.
Manuscript image
Draft reply, Newcastle to Douglas, No. 104, 27 February 1862, rejecting Douglas's request for funds.
Minutes by CO staff
Duke of Newcastle
I have added a par. as to Govrs Salary, for your consideration.
Manuscript image
Note in file: "Folios 191 r.—202 r. being too large, will be photographed later."