No. 47
10th May 1865
I have the honor to lay before you Copy of a letter from the Agents General of Crown Colonies to the Colonial Secretary on the subject of the loan authorized under the Ordinance No. 7 of 10th March 1864. I amsorryManuscript image sorry to say that previous to the receipt of this communication we had drawn against the proposed Loan for a further sum of thirty thousand pounds (£30,000). I imagined that your despatch No. 61 of 31st December 1864, contemplated our drawing, if necessary to the full amount.
2. Although the prospects of the Colony are now more favorable than they have been for some years, there seldomwasManuscript image was a time when money was more wanted. It is absolutely necessary, if the Colony is to be maintained, that some improvement should be made in the communication with Cariboo, in order to enable its gold fields to compete with those of Oregon and California. The whole profits of the new discoveries on the Kootenay River will go to the United States if we do not provide access to them through English territory,andManuscript image and unfortunately we entered the year with a considerable local debt, increased greatly by the Indian troubles of last summer.
3. The late Session of the Legislature has imposed considerable additional taxation and we look forward to a large increase of Revenue. Unfortunately a winter of unprecedented duration has kept all our communications closed, and salaries had to be paid, enormoussumsManuscript image sums laid out in the clearing away of snow, at a time when no traffic could bring duties to the Custom House or tolls to the roads. Now that the line of travel to Cariboo is open, the weekly receipts are very large, but it will be some months before we can make up for the losses of the winter. Even now the road to the Eastward towards the Kootenay and Columbia is still closed by snow andiceManuscript image ice in the Cascade Mountains in the rear of Hope. I confidently anticipate a much larger Revenue for this year than the Colony has yet produced, but the money is wanting for immediate exigencies.
4. I trust that you will be enabled to give such instructions to the Colonial Agents as may prevent embarrassment in regard to the last draft for thirty thousand pounds (£30,000). The Colony has had a hard struggle duringtheManuscript image the last year with outstanding liabilities, Indian outrages, and a sole dependence on its own resources.
5. I may add that had we been permitted to make our own arrangements locally with the Bank of British Columbia, the whole of the Loan would, I understand, have been disposed of here on terms not unfavorable to the Colony.
6. Though the EstimatescontemplateManuscript image contemplate a large expenditure for the year 1865, I must beg to state that I am only undertaking public works of absolute necessity. The increased number of situations as Constables likewise are only being filled up as circumstances require it.
I have the honor to be,
Your most obedient
humble Servant
Frederick Seymour
Minutes by CO staff
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Mr Elliot
I send you the necessary papers and a note of Mr Julyans. I shd suggest this desph being sent to the Crown Agents with a request for a report.
ABd 10 July
Other documents included in the file
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Office of the Crown Agents for the Colonies,
Spring Gardens, London, S.W.
10 July 1865
Dear Sir
Sargeaunt is not here today. I therefore reply to your enquiries.
The B. Columbia Bills for £30,000 are I presume those referred to in ourManuscript image letters to C:O: of the 24th and 31 May last, and will be met at maturity as therein stated.
I do not read Mr Cardwells despatch of the 31 Decr as placing any limit to the Government Drafts until the proceeding of the debentures shallManuscript image have been exhausted.
I think it desirable that we shd have an Official Copy of the Govrs despatch, it would afford us the opportunity of opening negotiations with the Bank referred to in paragh 5 although strange to say that BankManuscript image has been looking to us to aid them in getting rid of the first loan of B. Columbia which they became the purchasers of, but have never yet been able to place on the Market. If there was a market in the Colony it is inconceivable why they should have kept the Bank here?
Yours Faithfy
Penrose G. Julyan

Minutes by CO staff
See Blank page.
TFE 17 July
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Mr Cardwell
The Governor's Bills for £29,000, & £1000 (Total £30,000) arrived in May, and the Crown Agents were authorized to pay them.
Call on the Crown Agents for a report on the present despatch?
When they have reported, and we know the facts, it will have to be decided what instructions shd be given to the Governor as to any further drawing.
TFE 17 July
Documents enclosed with the main document (not transcribed)
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P.G. Julyan, Crown Agents, to Seymour, 16 February 1865, advising that due to lack of demand for colonial government securities, it would not be expedient at present to draw further bills on the 1864 loan.
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Elliot to Crown Agents, 18 July 1865, forwarding copy of the despatch and requesting information on the subject.