No. 35, Legislative
28 July 1862
With reference to your Despatch No 123, of the 13 May, and to mine of this date No 34, I have the honor to forward herewith for Her Majesty's Confirmation the "British Columbia Roads Loan Act 1862," accompanied byaManuscript image a Report from the Colonial Attorney General.
2. The Attorney Generals report points out wherein this Act differs from the Act of 1861, which it repeals. The main features of difference exist in the Amount and in the rate of Interest. The sum to be raised is limited to Fifty thousand Pounds (£50,000), and the rate of interest the lowest at which that sum can be obtained, not exceeding 10 per Cent per annum.IManuscript image I was induced to specify a Maximum rate of interest from the fact that I received an offer from the House of Henderson and Burnaby of London and Vancouver's Island, to furnish any sum that might be required as a Loan not less than £50,000, at interest of 10 per Cent per annum, but I trust that the continued intelligence of the vast auriferous wealth of the Colony, and the rapidly increasing confidence in its ultimate importanceandManuscript image and prosperity, may justify the hope that we shall be able to obtain a more favorable rate of interest than 10 per Cent.
3. Your Grace's instructions respecting a priority being given to the Loan over all other Demands upon the Revenue, and for its redemption by means of a sinking fund, as well as for the Agents General being duly empowered to borrow the money, have been carefully followed.
4. The period ofredemptionManuscript image redemption has been fixed at Ten years, instead of Twenty as in the 1861 Act, as it was considered more desirable to terminate the liability in the shorter period.
I have the honor to be
My Lord Duke
Your Graces most obedient
and humble Servant
James Douglas
Minutes by CO staff
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Mr Elliot
See 8836/62.
This Loan Act is founded upon the Duke of Newcastle's desph of the 13 May, copy of which went to the Treasury. The Treasury Lr of the 13 June had not been recd by the Governor when he wrote this desph.
Copy to the Treasury where it will have to be decided whether this Act is sufficient or not for the purpose.
ABd 8 Sep
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I think that this should be sent to the Treasury, with reference to their letter of the 13th of June, for their consideration; and with the expression of a hope that their Lordships may find the provisions of the Act to be such as will warrant the confirmation of this attempt to render the means of the Colony commensurate with the demands upon them.
TFE 9 Sep
Yes certainly, recommending adoption.
N 11
Documents enclosed with the main document (not transcribed)
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H.P.P. Crease, Attorney General, to Colonial Secretary, 25 July 1862, reporting on the ramifications of the act.
Other documents included in the file
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Draft, Elliot to G.A. Hamilton, Treasury, 17 September 1862, forwarding copy of the despatch and enclosure and recommending confirmation of the act.