Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Peel, Frederick to Rogers, Frederic 8 June 1864, CO 60:20, no. 5280, 208.
Abstract
Public Offices document.
Minutes (8), Other documents (5).
Peel informs Rogers that the Lords Commissioners of Her Majesty’s Treasury
will not objectto British Columbia Ordinance No. 7 for a loan of £100,000. He also gives the Lords’ opinions on the ordinance
for the guidance of the Colonial Government in bringing this Ordinance into operation.
Peel to Rogers (Permanent Under-Secretary)
Treasury Chambers
8th June 1864
Sir
I am desired by the Lords Commissioners of Her Majesty's
Treasury to acquaint you, for the information of Mr
Secretary Cardwell, that Their Lordships have had under Their
consideration the British Columbia Ordinance, No 7 of 1864
to authorize a Loan of £100,000, enclosed in Mr Elliot's
letter of the 26th Ultimo.
My Lords will not object to the confirmation of this
Ordinance, but They request that the following observations may
be forwarded to the Governor for the guidance of theColonial
Colonial
Government in bringing the Ordinance into operation.
Colonial
Government in bringing the Ordinance into operation.
My Lords are of opinion with reference to Clauses Nos
1 & 9 that the application of the Money to be borrowed should
be confined to the Survey and fresh construction of Roads
Bridges & Public Works, & that no part of it should be expended
in defraying the ordinary charge of Repair & Maintenance which
should in British Columbia, as elsewhere, be provided for out
of current revenue.
Their Lordships observe that Clause 12 of the Ordinance
empowers the Governor & Council to redeem portionsof
of the
Loan before the Debentures arrive at Maturity, and to employ
for that purpose either current Revenue or the Moneys of
the Sinking Fund: and that Clause 13 directs that the amount
thereafter payable to the Sinking Fund shall be reduced in
the proportion of the Debentures paid off to those remaining outstanding.
of the
Loan before the Debentures arrive at Maturity, and to employ
for that purpose either current Revenue or the Moneys of
the Sinking Fund: and that Clause 13 directs that the amount
thereafter payable to the Sinking Fund shall be reduced in
the proportion of the Debentures paid off to those remaining outstanding.
Assuming that the Sinking Fund, as created by the Ordinance
will suffice for the ultimate liquidation of the whole debt,
and that the 2 1/4 per Cent is the amount required to accomplish
that object in thirty years, then the payments to the Fund—after
a portion of the Loan shall have beenredeemed
redeemed by purchase out
of the accumulations for the time being of the Sinking Fund—must
not be reduced in the same ratio as the Loan itself, otherwise
it will not be possible to avoid a deficiency of the Sinking
Fund at the end. On the contrary as the principal is
reduced by the appropriation of Sinking Fund, the per Centage
to be contributed to that Fund in respect to the balance
of the Loan should be increased, the limitation of the annual rate to
2 1/4 per Cent provided by Clause 10 being in such a case set aside.
redeemed by purchase out
of the accumulations for the time being of the Sinking Fund—must
not be reduced in the same ratio as the Loan itself, otherwise
it will not be possible to avoid a deficiency of the Sinking
Fund at the end. On the contrary as the principal is
reduced by the appropriation of Sinking Fund, the per Centage
to be contributed to that Fund in respect to the balance
of the Loan should be increased, the limitation of the annual rate to
2 1/4 per Cent provided by Clause 10 being in such a case set aside.
In any future Ordinance that may be passed & that may
afford an opportunity of doing so provision should be made
for increasing the rate accordingly on the Debentures outstanding.
Minutes by CO staff
Mr Elliot
Sanction the Ordce and furnish the Govr with a Copy of this Letter for his informn & guidance.
Sanction the Ordce and furnish the Govr with a Copy of this Letter for his informn & guidance.
ABd
9 June
Prepare draft.
TFE
9/6
Other documents included in the file
Elliot to Crown Agents, 1 July 1864, advising
that the ordinace had been approved, but that no steps should be
taken for raising the loan pending a report from the new governor.
Minutes by CO staff
Mr Fortescue
The reason for writing to the Agents appears on margin of enclosed draft: but I think you will agree with me that the present will be better instructions to address to the Agents at this time.
The reason for writing to the Agents appears on margin of enclosed draft: but I think you will agree with me that the present will be better instructions to address to the Agents at this time.
A draft should be prepared to the Governor
notifying the confirmation of the Ordinance, & telling
him the substance of these instructions to the Agents.
TFE
18 June
Returned to Dept.
ABd
30 June
Other documents included in the file
*
Colonial Office to Crown Agents, no date, advising that the
ordinance had been approved and authorizing them to raise the loan in
order to defray a charge of £10,704.17.6 currently owed to Treasury.
Minutes by CO staff
See substituted draft, circulated to day.
TFE
12 June
It is necessary to inform the Agents that the
Loan has been sanctioned in order that they may take
the requisite steps, when expedient, for raising it.
The Governor has written direct to the Agents
on the subject. See 4383.
Other documents included in the file
*
Elliot to Crown Agents, 16 July 1864, giving authorization to raise
the loan "in such portions and at such times as you may find compatible
with the state of the Money Market and with the interests of the
Colony."
