Despatch to London.
Minutes (2), Enclosures (untranscribed) (1), Other documents (1), Marginalia (1).
Douglas responds to Newcastle's criticism of the lack of detail in some areas of the Estimates
for British Columbia for the year 1862 which Douglas
provided earlier in the year. Douglas offers an explanation, protests against the proposal that the colony absorb additional
military
expenses, and again asks to be allowed to raise funds through a loan.
No. 25
13 May 1862
I have to acknowledge the receipt of Your Grace's Despatch
No 105 of the 27th February last, and I regret to observe
that Your Grace disapproves of the form in which the Estimates
for British Columbia for theyear year 1862 have been transmitted,
inasmuch as while the Salaries comprised in these estimates are
exhibited in almost superfluous detail, those heads of
expenditure which most demand scrutiny and deserve explanation
are merely stated in a single large sum, such as Thirty one
thousand seven hundred and forty nine pounds for roads, and
Seven thousandfive five hundred pounds for Works. Your Grace also
alludes to evidence of a disposition, exhibited by the annual
estimates, continually to augment the Civil expenditure so as
to equal or even exceed the growing revenue, and lastly Your
Grace announces the decision of Her Majesty's Government to
throw upon the Colony of British Columbiaa a portion of the
Military expenditure for the year 1862, amounting to the sum of
Eleven thousand pounds, and instructs me to curtail some of the
different services proposed in the Estimates so as to admit of
paying this charge out of the Colonial Revenue.
2. I have in explanation to submit that the sum of seventhousand
thousand five hundred pounds the proposed outlay on Works,
comprises the cost of keeping in repair and erecting some
additional public buildings wanted in the Colony, and for
maintaining the Buoys which mark the channels leading into Fraser River.
3. These several objects are indicated in the Estimates
with as muchprecision precision as is possible in the case of works not
actually commenced, and of which the cost is uncertain and
necessarily dependent on the value of labour and material.
I forward herewith a detailed summary of them taken from
the Estimates, but should Your Grace desire any other form to be adopted,
I will notfail fail to give immediate effect to your instructions.
4. The subject of roads in British Columbia and the peculiarly
difficult and inaccessible nature of the Country, which really gives
to the opening and improvement of the inland thoroughfares a
character of the highest importance, have so often been dwelt upon
at length in mydespatches despatches to Her Majesty's Government, that in
forwarding the formal Estimates of Revenue and Expenditure I did
not consider Your Grace would desire that I should enter into any
further recapitulation of those matters, than was contained in my
Despatch enclosing them No 74 of 30th November 1861. The whole
sum disposablefor for that service was something short of thirty two
thousand pounds which at most represents an insignificant item of
the sum which must sooner or later be laid out in the formation of
upwards of three hundred and fifty miles of road connecting Lillooet
and Lytton with the Gold fields of Carribou.
5.
5. The increase of the civil expenses of the Colony, I would
beg to observe, is one of the inevitable effects resulting from
the extension of population and discovery.
Wherever men congregate in large bodies, instant and vigorous,
measures must be taken for the prevention of crime, and for the
protection of lifeand and property, otherwise a state of license and
misrule will be inaugurated which would be, at once disgraceful
to a civilised community, and injurious to the honor and dignity
of Her Majesty's Government.
6. I can assure Your Grace that no increase of the civil
expenditure except the small proposed augmentation of the Salariesof
of a few of the subordinate officers not in the whole exceeding the
sum of Six hundred pounds, has arisen from other causes than those
I have just stated, neither fancy buildings nor ornamental works of
any kind, nor even the Government House at New Westminster which I
was authorized by the Estimates of 1861 to erect, have been
attempted; but the whole disposablerevenue revenue of the Colony has been
rigidly applied to the paramount objects, of opening the thoroughfares
and maintaining the peace and good Government of the Colony.
7. With respect to the large proportion of the Military expenses
which are hereafter to be defrayed from the Colonial Revenue I thinkit
it altogether inadvisable to enforce the payment of that charge for
the present year, as the works of interior improvement which are
detailed in my Despatch of the 15th April last marked Separate
are now in rapid progress, and will absorb the disposable revenue
of the Colony as fast as it comes into the Treasury; in fact it
wassolely solely with the view of carrying on these works that I applied
to Your Grace for authority to contract a loan to the extent of
Eighty thousand pounds in England.
8. I will not occupy Your Grace with a review of the reasons
which induced me to undertake those works as they are very fully
set forth inmy my (several) despatches commencing with that of the
24th October 1861 marked Separate and I am now, as the season
advances, more than ever impressed with their value and importance
to the Colony, for numbers of people are arriving, by every Steamer,
from California Canada and England, and the rush towards the Gold
Fields is incessant.Steamers Steamers are running every day with freight
and passengers from this place to New Westminster; the Customs
receipts have for the last 4 weeks been doubled in amount; the
inland duties will experience a corresponding impulse, and there
is little doubt of a great increase in the annual revenue, if we
can only succeed in retaining thepopulation population now arriving, and in keeping them from being driven from the Country by
want and
starvation, a calamity which will inevitably happen unless the
appalling cost of inland transport to Carribou, now exceeding
seven hundred dollars a ton, be greatly reduced; such reduction
being the effect proposed by the worksworks in progress which it is
estimated will produce a saving of at least five hundred dollars
on the ton, in the charges for the transport.
9. I have adopted these measures from the fullest conviction
of their urgent necessity, and that they will materially aid in
the development of the Country, add to the publicrevenue revenue, render the Colony independent of extraneous aid, and redound to the honor
and advantage of Her Majesty's Government.
10. It is in fact impossible to retain a population in the
Colony unless such improvements are made, and without population
there can be neither wealth, revenue, nor progressive development.
11. I submit as an impressive corollary to those views the
following extract of a letter just received from Mr Elwyn, Gold
Commissioner for the Carribou District, dated Lillooet, 6th May
1862:
The past severe winter tells against us more than I could
ever have expected. About four hundred men have up to the
present time left this place for Carribou; certainly a similar,
in all probability a greaternumber number have started from Lytton.
Not one single pack train, has yet left either place (most
luckily two or three trains are expected to leave Lytton tomorrow having got their loads out of boats from Yale) and those
Miners who have started had with very few exceptions only
sufficient provisions to take them up. The long winter must
have almost entirely exhausted the stock of provisions laid in
last autumn,from from the best information that I can obtain I
believe that the road side houses between here and Williams
Lake could not muster five sacks of flour between them. I
am entirely at a loss to know what those men will do who have
gone up, and greatly fear a rush back, though they will hold
on almost to the verge of starvation on account of losing
their claims. Added to all this, there are between three andfour
four hundred men at this point, only waiting to get a sack or
two of flour per company to start.
Even this much they can only get in driblets, and have to pay from 25 to 30 cents
per lb. (last year 12 1/2 cents).
Unless provisions are rushed up from below I can see nothing for it but a stampede
down stream.
12. Whatever expenses Your Grace may have in contemplationto to
bring against the Colony should not, I submit, be brought forward
and enforced at the very hour of its greatest need, and when it is
maintaining an arduous struggle with difficulties altogether
unprecedented, in the early history of Colonies. It has, up to
the present time, defrayed the whole of its own civil expenditure
and has put the ImperialGovernment Government to no expense whatever except for the Governors salary, and the pay and
maintenance of the Troops, and is therefore entitled to some consideration.
This, I think, is true, and is the strong point in the case on
behalf of the Colony.
The services of the Troops are, I admit, most useful to the
Colony, but as the portion of those services devoted to civilian
pursuits really amounts to no more than about the labourof of eighty men for five months in the year, I conceive, they will be dearly
purchased at the proposed charge of Eleven thousand pounds per annum.
13. I have however no wish to moot that question at present,
nor to dwell upon the value of the large and growingtrade trade of the Colony, which will more than re-imburse the Mother Country for the
expenses of this small Military force. All that I would propose to
Your Grace, is not to enforce a charge which would so seriously
embarrass me, and which by crippling my operations, would, at
this epoch,produce produce the most disastrous effects upon the Colony.
I have the honor to be
My Lord Duke
Your Grace's most obedient
Humble Servant James Douglas
It will be very difficult to resist this Appeal from the
Governor for "more time." Assuming that his representations
are void of exaggeration, & that he is what he ought specially
to be, in the important post he occupies, worthy of credit I
think that his request ought to be complied with. It wd
be a serious reproach agt the Col. Office if we helped to
cripple this new Colony for the sake of a few thousand pounds,
about which there can be little doubt that we are sure of
eventual repayment if we choose to enforce our claim.
I shd, however, order the Governor to stop building the proposed Govt house at New Westminster. The Governor does
not reside there, & the money will be more usefully applied in roads.
Documents enclosed with the main document (not transcribed)
"Statement of proposed Expenditure on Works and Buildings, as given in the Estimates
for the year 1862," signed by
W.A.G. Young, 9 May 1862.
Other documents included in the file
Draft, Elliot to Frederick Peel, Treasury, 21 July 1862, forwarding
copies of two despatches and discussing in detail the disposition of
finances in the colony.