No. 14
12 March 1863
I have to acknowledge the receipt of your despatch No. 58 of the 15th of December last, requesting permission to extend the Loan for the construction of Roads in British Columbia to £100,000.
The grounds alleged by you appear to Her Majesty's Government sufficient to justify the proposed measure, and I shall therefore be prepared to advise Her Majesty to confirm a LawsimilarManuscript image similar to the British Columbia Loan Act of 1862—for raising a further sum of £50,000 by loan upon the security of the general revenue of the Colony.
In giving their sanction to this measure it must be clearly understood that Her Majesty's Government do not undertake any responsibility in respect of it, and that no Imperial guarantee is given for either the interest or principal of the loan.
MyManuscript image
My despatch No. 150 of the 12th November will have placed you in possession of the views of Her Majesty's Government on the subject of the sale of Debentures issued under the act of 1862, and you will no doubt adopt in the present instance the course which I then pointed out by entrusting the Agents' General with the disposal of the securities.
I am desirous of receivingfromManuscript image from you a statement showing the application of the loan of 1862—and the arrangements with the Contractors for the roads under which the guarantee of the local Government was given for the sum advanced by the Bank of British Columbia.
With respect to the two lines of Road now in the course of construction, one from Lytton to Alexandria, and the other from Lilloet to Alexandria, it appears to me that, lookingtoManuscript image to the great difficulties to be surmounted, and to the fact stated by you that the Contractors for the Lytton road had "signally failed" in fulfilling their engagement, the more prudent course would be to suspend the construction of one of the lines till the other was completed so as to afford access to the diggings and settlements in the the interior.
You will furnish me with a report upon thissubjectManuscript image subject, but unless objections of difficulties exist with which I am not acquainted I should wish you to act upon my suggestion by suspending the works on one of the lines of Road.
I have the honor to be
Your Obedient Servant