Colonial Despatches

With reference to your letter dated 17th Instant enclosing copy of a Despatch from the Governor of British Columbia with a Proclamation which provides for raising a Loan not exceeding £50,000, I am commanded by the Lords Commissioners of Her Majesty's Treasury to transmit to you copy of certain Observations by Mr Julyan, Agent General for Crown Colonies, on this Proclamation, and I am to request that you will state to the Duke of Newcastle that it appears to My Lords very probable that on the receipt of the Despatch of 16 June last, founded on the Treasury letter of the same date, the Governormay may have taken steps in conformity with the precise instructions conveyed to him, whereby most of the objections raised by Mr Julyan will have been removed, and that it will be better to defer any proceedings on this Proclamation until a further communication shall have been received from the Governor.

In the meanwhile the substance of the Observations might be communicated to the Governor, and he might be informed that as the money is to be raised in England it will be necessary that the Agents General should be advised regularly of the Local Rates of Exchange on London, in order that they maybe be enabled to judge of the most advantageous mode of remitting the money to the Colony.