No. 43
3 September 1862
Adverting to my Despatch of the 2nd Ultimo No 38, and to Your Grace's Despatch No 131 of the 10th June, I have the honor to forward herewith "The British Columbian Loan Act 1862," together with the AttorneyGeneralsManuscript image Generals report upon the same.
2. This Act repeals the "British Columbia Roads Loan Act 1861," "The British Columbia Roads Loan Act 1862," and the "Temporary Loan Act 1862," and authorizes the Governor of British Columbia to borrow the sum of Fifty Thousand pounds Sterling (£50,000), upon Debentures secured upon the General Revenue of the Colony, such Debentures to be redeemable at the expiration of ten yearsfromManuscript image from the 1st January 1863, and to bear interest at the rate of Six per cent per annum payable half yearly.
3. I think it will be found that all the recommendations of the Board of Treasury which Your Grace was so kind as to convey to me in your Despatch of the 16th June are embodied in the Act now forwarded, and I therefore most earnestly trust that it may be confirmed at the earliest possible period,theManuscript image the more especially as I have been most fortunate in concluding arrangements for the negociation of the whole Loan upon such terms as are most favorable to the Colony under its present financial condition, and which arrangements greatly relieve me from immediate financial pressure, and from the harassing anxiety I have experienced for some months past, as I have already explained at length to Your Grace in previous Despatches.
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4. The arrangements to which I allude have been made with the Chartered Bank of British Columbia and Vancouver's Island, which has recently established itself at Victoria. I forward herewith a letter from the Agent in these Colonies of that institution in which he offers to take the whole Loan at par by giving Bills from time to time as they may be required upon the London Office; the sums so advanced by Bill to bearinterestManuscript image interest at the rate of 12 per Cent per Annum until repaid by the delivery of the Debentures to the London Office, a corresponding rate of interest being allowed by the Bank upon any sums represented by Debentures remaining in their hands undrawn.
5. Money to carry on the works actually contracted for in opening the lines of communication as far as Alexandria was an absolute necessity. The least rate of interest at which it could be obtained on the spot was 18 per Cent per Annum, andonlyManuscript image only a few thousand could have been temporarily borrowed at that rate, or even at the rate of Twenty four per Cent per annum. Thousands of persons have left Carribou this year in consequence not only of the enormous cost of provisions, but also to avoid starvation from their absolute dearth. The remedy must be applied at any cost, and the work on the roads could not be delayed for a day. Your Grace can therefore readily conceive the satisfaction withwhichManuscript image which I perused the offer of the Incorporated Bank of British Columbia & Vancouver's Island, and the promptitude with which I closed with it.
6. So soon as Her Majesty's Assent to the Act has been obtained, I beg that Your Grace will have the kindness to communicate the circumstance to the Agents General for the Crown Colonies and cause them to have the Debentures prepared with the least possibledelayManuscript image delay and issued to the Chartered Bank of British Columbia and Vancouver's Island, 80 Lombard Street.
I have the honor to be
My Lord Duke
Your Grace's most obedient
and humble Servant
James Douglas
Minutes by CO staff
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Mr Elliot
ABd 30 Oct
With reference to Treasury letter of 26 ulto & our answer of 3rd inst, send them this despatch for their consideration.
TFE 30 Oct
Documents enclosed with the main document (not transcribed)
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H.P.P. Crease, Attorney General, to Colonial Secretary, 22 August 1862, reporting on the ramifications of the act.
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John D. Walker, Chartered Bank of British Columbia and Vancouver Island, to Colonial Secretary, 25 August 1862, approving the loan for £50,000 and laying out the terms, as per despatch.
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Colonial Secretary to Walker, 27 August 1862, accepting the terms offered.
Other documents included in the file
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Draft, Elliot to G.A. Hamilton, Treasury, 31 October 1862, forwarding copy of the despatch and enclosures for consideration.