Colonial Despatches

H.M. Govt have had under their consideration the application contained in your despatch No. 84 of the 28th of August last for permission to raise a loan of £50,000 in this Country to be applied to the construction of Roads in B. Columbia, and I enclose, for your information, the copy of a correspondence which has passed on the subject between this Department and the Board of Treasury.

You will perceive from this correspondence that while the importance of opening up as promptly as possible the internal communications of the Country is fully appreciated, and while every wish is felt on the part of H.M. Govt to assist you in accomplishing that object, the absence of precise informationas as to the financial position of British Columbia would render fruitless any attempt to raise a loan in this country upon the credit of the Colony. In another despatch I have called your attention to the omission to supply this information, and to the prejudice which in the present instance the neglect has inflicted on the interests of the Colony. It only remains to state that upon receiving from you the accounts required by the Lords Crs. of the Treasury I shall beprepared prepared to submit your proposal again to their Lordships' consideration.

With respect to the loans which have been raised by you in the Colony to provide the means of completing roads which were in course of construction I have received and will communicate to the L. Crs. of the Treasury your despatch No. 104 of the 12th Dec. explaining the circumstances under which you have had recourse to that step withoutthe the previous sanction of H.M's Government.