With reference to the letter of this Board of the 19th
instant, respecting the Financial condition of the colony of
British Columbia, I am directed by the Lords Commissioners
of Her Majesty's Treasury to acquaint you, for the information
of Mr Secretary Cardwell, that My Lords observe from the
returns, which were enclosed in Mr Elliot's letter of the
17th instant that on the1st1st of January last the debt
due by the colony to the Bank of British Columbia was
£33,675, whereas in January 1865 it was £27,209.
I am desired to request that the attention of the
Governor may be called to this fact, as it is evident that
the expenditure of the Colony has been continued throughout
1865 at a rate out of all proportion with the resources at
its disposal. It is apparent also that in spite of the
experience of previous years the error has been again
committed by the ColonialAuthorities Authorities of overestimating the
Revenue of 1865.
Instructions should therefore be sent out as early as
possible that the expenditure of this year must be reduced
to such an amount as may be covered by a Revenue calculated
on the actual average receipts of the last two years, and
that any further large expenditure on New Roads and works
of that nature must be postponed until the resources of the
Colony will admit of their being undertaken with less
pressure on its finances.
Mr Elliot
The result of this investigation of the T-y does not
surprise me as I have frequently observed upon the
excessive expenditure of the Govt of B.C. over Revenue.
This should be sent to the Acting Governor together with
the previous Letter from the T-y (3899) and Mr
Seymour should, in conformity with Mr Cardwell's
direction, be immediately communicated with. As we are
very shorthanded at this moment it wd be a great
convenience if Mr Seymour cd be requested to call
here to see the papers.
Mr Blackwood
The Copies can be prepared in the copying division. I
think that there will be some advantage in sending them to
Mr Seymour in an official letter, rather than in his calling here.
Draft may be prepared to Acting Governor on this & the previous
letter from Treasury: and draft to Mr Seymour.