Colonial Despatches

With reference to Mr Elliot's letter of the 23rd ultimo, transmitting the Supply Ordinance of the Colony of British Columbia for the year 1866, together with the Colonial Estimates for this year, I am directed by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for the information of the Secretary of State, that My Lords will not object to these Estimates, which appear to have been prepared with a view to more careful economy thanthose those of preceding years, and They assent to the confirmation of the Ordinance, No 4 of 1866, providing for the expenditure of the year. With reference, however, to the uncertainty as regards the accuracy of any Estimate of Revenue, to which the Acting Governor alludes in his despatch of the 3rd of April, and to the large amount of debt now owing by the Colony, I am desired to request that the Governor may be instructed to limit as far as possible his Expenditure on New Works and Buildings and Streets, until he is able to form a sound opinion as to the proceeds of the Revenue for the year.

My Lords are glad to observe the large amount which is included in the Estimated Expenditure for the repayment of "Temporary Loans," amounting to $170,000, and They trust that after the remarks upon this system in the letter of this Board of the 19th of April last, the Government of British Columbia will understand the necessity of limiting the expenditure of the Colony within the Receipts from Ordinary Revenue. As the actual Expenditure of the year of 1865 is stated by the Governor in his despatch of the 2nd of April, 1866 (No 31) not to have exceeded £185,000, it may be that the $80,000 included in the Estimate of Revenuefor for 1866 as "portion of Loan of 1864 undrawn" is applicable for the service of 1866, but on this point My Lords must reserve Their opinion till They are in possession of the Statement of the Actual Receipts and Disbursements of the Colony within the year 1865, together with the account of its Liabilities at the close of that Period, which Their Lordships called for in Their letter of the 19th of April last.

I am further desired to observe that My Lords trust that under the prudent management of the Finances of the Colony which is apparent in these Estimates, it willnot not be again necessary to resort to the system into which the Government of the Colony had fallen of being continually in debt to the Bank of British Columbia. On the 1st of January, 1866, this debt amounted to £33,675, and though arrears of Revenue might be set against some portion of this sum, it practically represented expenditure in advance if not in excess of means.

My Lords would wish that the attention of the Governor should be directed to the number of the Clerical Staff employed in the Establishments, which appears to them larger than the Public Business of so small a community can really require.

The Colonial Estimates are herewith returned, but I am to request that a copy of them may be forwarded for retention in this Department.

I am desired to observe that under the head of "Administration of Justice" the expenditure is estimated for 1866 at $7150 against an actual expenditure in 1864 stated to have been $100,563. My Lords would request some explanation as to the large difference between these sums; as also as regards the item of "Transport" for which $13,750 are inserted in the Estimate, but only $12,750 is appropriated under the Ordinance.