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 theColonialManuscript image 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 portionsofManuscript image 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 beenredeemedManuscript image 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.
I am Sir
Your Obedient Servant
F. Peel
Minutes by CO staff
Manuscript image
Mr Elliot
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
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Draft reply, Cardwell to Seymour, No. 11, 11 June 1864.
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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.
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
*
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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
*
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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."
Minutes by CO staff
N.B. This draft was by Mr Elliot's directions copied from a signed letter.
RE 20 July
Other documents included in the file
*
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Draft reply, Cardwell to Seymour, No. 21, 16 July 1864.
Minutes by CO staff
N.B. This draft was by Mr Elliot direction copied
from a signed letter.
RE 20 July
Peel, Frederick to Rogers, Frederic 8 June 1864, CO 60:20, no. 5280, 208. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.2, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/B645TE10.html.

Last modified: 2020-12-02 13:40:34 -0800 (Wed, 02 Dec 2020) (SVN revision: 5008)