 
                  
                  
                     
                     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.
                     
 
                  The 
                  
                  
                     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:
                     
                     
                  
                  
                     1 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.
                     
                  
                  
                     2 To divide the whole Colonial expense of £18,000 into two
moieties
 moieties, and ask Parliament to grant on the Colonial
                     Estimates one moiety, amounting to £9000.
                     
                     3 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 
M 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 is
contemplated
 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.
                     
                  
                  M Elliot
                     As regards the pay of the Marines

 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 N 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
                     the

 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.