Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Seymour, Frederick to Grenville, Richard 15 July 1867, CO 60:28, no. 8565, 281.
Abstract
Despatch to London.
Minutes (7), Enclosures (untranscribed) (10), Other documents (7), Marginalia (2).
This document contains mentions of Indigenous Peoples. The authors of these documents
often perpetuate a negative perspective of Indigenous Peoples and it is important
to look critically at these mentions. They sometimes use terminology that is now considered
hurtful and offensive. To learn more about modern terminology pertaining to Indigenous
Peoples, Indigenous ways of knowing, and decolonization, please refer to the Glossary of terms.
Seymour forwards
a return of the probable receipts and positive obligations of [British Columbia] for the half year ending the 31st December.Seymour discusses British Columbia’s financial debt and why British Columbia is in financial distress. Seymour asks for assistance from England to pay British Columbia’s debts. Minutes by Cox, Rogers, and Adderley discuss how British Columbia has reached such a high level of debt. Minutes by Rogers and Adderley suggest, unless British Columbia can join Canada, American annexation is almost guaranteed due to the colony’s large debt. Buckingham’s minute orders a
comparative analysis of the expenditure & revenue for the last 2 years & of each Colony for 2 or 3 years before unionwritten. Robinson’s minutes describe, in detail, the finances of British Columbia and other colonies such as Hong Kong. Cox further minutes that Buckingham desires Holland to see what powers are available to Seymour for Seymour to remit
what is due for interest & sinking Fund on the Loansand again discusses British Columbia’s financial situation. Included documents describe British Columbia’s finances relating to income, expenses, revenue, and debt.
No. 90
Victoria
15th July 1867
My Lord Duke,
I have the honor to forward a return of the probable receipts
and positive obligations of this Colony for the half year ending
the 31st December.Your
Your Grace will see that with every
precaution we can use there will probably be a deficiency of two
hundred and twenty three thousand dollars or about forty five thousand
pounds (£45,000). Perhaps Your Grace will inform me if we can look
for any assistance from the Mother Country under these circumstances.
I had no idea when in England last year that the financial
condition of the two Colonies was so bad or else I should have
communicatedfully
fully with Your Grace's Department on the subject.
One great cause in the present depression is the admission duty
free on the Mainland of the large supply of commodities which
were imported to this place while it was still a free port.
Your Grace will see that with every
precaution we can use there will probably be a deficiency of two
hundred and twenty three thousand dollars or about forty five thousand
pounds (£45,000). Perhaps Your Grace will inform me if we can look
for any assistance from the Mother Country under these circumstances.
I had no idea when in England last year that the financial
condition of the two Colonies was so bad or else I should have
communicatedfully
fully with Your Grace's Department on the subject.
One great cause in the present depression is the admission duty
free on the Mainland of the large supply of commodities which
were imported to this place while it was still a free port.
I fear that I shall have to make some further serious reductions
in the staff of public officers.
It is now for the first time that the Colony has been thrown
on its own resources.Hitherto
Hitherto it subsisted to a considerable extent
on loans contracted in the Mother Country.
We have now, at a time of
unusual depression along the whole Pacific Coast, to make provision
for the repayment of borrowed money expended.
Hitherto it subsisted to a considerable extent
on loans contracted in the Mother Country.
We have now, at a time of
unusual depression along the whole Pacific Coast, to make provision
for the repayment of borrowed money expended.
I have the honor to be,
My Lord Duke,
Your most obedient
humble Servant
My Lord Duke,
Your most obedient
humble Servant
Minutes by CO staff
Mr Elliot
The despatch is not signed. A more unsatisfactory despatch I never read. A probable deficiency at the end of the present year of £45,000. In a Memo
I have sent on as to the Debt it
will be seen that the Colony is in arrear in the sum of £4375
to the Crown Agents on account of interest & Sinking Fund of their
Debt. £4125 more becoming due on the 1t Oct.
The despatch is not signed. A more unsatisfactory despatch I never read. A probable deficiency at the end of the present year of £45,000. In a Memo
I have sent on as to the Debt it
will be seen that the Colony is in arrear in the sum of £4375
to the Crown Agents on account of interest & Sinking Fund of their
Debt. £4125 more becoming due on the 1t Oct.
It is to be hoped
that Governor Seymour is preparing some Financial scheme for
extricating the Colony from its present embarrassed state—but the
sooner he is made aware that he will get no pecuniary assistance
from the Home Treasury—supposing I am right in inferring that
is so—the better for himself & the Colony.
We may expect
Mr Birch here immediately, & perhaps it may
be as well to hear what he has to say.
Mr Birch here immediately, & perhaps it may
be as well to hear what he has to say.
CC
2 Sept
Mr Adderley
Mr Birch has arrived. But I am inclined to think that the first step shd be to ascertain what can be ascertained in the office as to the mode in wh this has come about, e.g. I should like to see—what was the Revenue & Expenditure per ann for the last few years & particularly how much of that expenditure went in Roads & public works, or such unforseen matters as the Indian rebellion, and also how much was defrayed by loans & how much by Revenue.
Mr Birch has arrived. But I am inclined to think that the first step shd be to ascertain what can be ascertained in the office as to the mode in wh this has come about, e.g. I should like to see—what was the Revenue & Expenditure per ann for the last few years & particularly how much of that expenditure went in Roads & public works, or such unforseen matters as the Indian rebellion, and also how much was defrayed by loans & how much by Revenue.
Also, as Mr Seymour says that
much is due to the decrease of the customs since or in anticipation
of Union, (the Merchants pouring their goods into Victoria while
it was a free port, & then pouring them duty free from Victoria
into B.C. as soon as the Colonies were united). I should like
to see what
was the position of the Colony before that cause
operated. My impression is that they were more or less insolvent
& only went on by aid of the Bank before that time, having
inter alia remitted the Gold Tax witht taking any means by new
taxation or reduction of expenditure to fill up the deficit wh
that (I suppose) had caused.
was the position of the Colony before that cause
operated. My impression is that they were more or less insolvent
& only went on by aid of the Bank before that time, having
inter alia remitted the Gold Tax witht taking any means by new
taxation or reduction of expenditure to fill up the deficit wh
that (I suppose) had caused.
This only concerns the past. As to the future it is no doubt
true that high taxation, distress and want of assistance from home
will probably cause the American population of the Colonies to
press for annexation—a pressure wh wd soon become irresistable
except at a cost far greater than the worth of the fee simple of the
Colony.
On the other hand if the Colonists once find that the
annexation threat [is] satisfactory in extracting money
from us
they will plunder us indefinately by it.
from us
they will plunder us indefinately by it.
I think in this state of things, that, although I do not
anticipate that HG will hold out expectations of pecuniary
assistance to B.C. yet it wd be better to master the case
as far as possible, before answering this in order to put the
refusal on the firmest & least irritating grounds.
I suppose the question to be (in the long run) is B.C. to
form part of the U.S. or of Canada; and if we desire to promote
the latter alternative, what form of expenditure or non-expenditure
is likely to facilitate or pave the way for it.
FR
16/9
I agree we should first get all information. It seems to me
impossible that we should long hold B.C. from its natural annexation.
Still we should give & keep for Canada every chance, & if possible
get Seymour to bridge over the present difficulties till we see what
Canada may do. I think our US Minister should keep his ears open for
any overtures of equivalents in exchange of this territory. Immediate
reductions & new taxation are inevitable, & what will be the
consequences.
CBA
17/9
Prepare comparative analysis of the expenditure & revenue for
the last 2 years & of each Colony for 2 or 3 years before union—which
will show the items which have caused the difficulties &
the course to be adopted can then be better considered. The
customs revenue will doubtless gradually improve after the consumption
of the articles imported free.
Sir F. Rogers
In July last Governor Seymour stated that the Colony of B Columbia would be in arrear on the transactions of 1867 by probably £45,000 & he asked for pecuniary assistance from home. He has repeated that request in several subsequent despatches, & more recently he has asked by Telegraph to be allowed to draw on the Imperial Treasury to the extent of £50,000.
In July last Governor Seymour stated that the Colony of B Columbia would be in arrear on the transactions of 1867 by probably £45,000 & he asked for pecuniary assistance from home. He has repeated that request in several subsequent despatches, & more recently he has asked by Telegraph to be allowed to draw on the Imperial Treasury to the extent of £50,000.
Now although there can be no doubt that the finances are in a
most embarrassed state, that the Colony is paying heavy interest
& sinking fund on Loans contracted in England, that it is
largely indebted to the Colonial Bank, to the Crown Agents, to some
of its public officers, & that the Salaries of the Public officers
are several months in arrear it is of course necessary that the
exact financial condition
of the Colony should be enquired into
before the Secretary of State & the Treasury can come to a final
decision as to whether B.C. should receive Imperial Aid, or not.
of the Colony should be enquired into
before the Secretary of State & the Treasury can come to a final
decision as to whether B.C. should receive Imperial Aid, or not.
In accordance with your direction Mr Hemming & I have
been engaged during the last few days in such an enquiry, which
owing to the manifest discrepancies occuring in the financial
returns & the annual Blue Books, has been accompanied with some
difficulty.
The result of our investigations will be found in the annexed
tables showing the Ordinary Revenue & Expenditures under each
head for the last 4 years, and the amount of aid (Table No. 3) on
the one hand from temporary & permanent Loans, and of the disbursements
on the other in part repayment of those Loans,
in redemption of
bonds, & in remittances to Agents to meet the interest &c accruing on
permanent Loans.
in redemption of
bonds, & in remittances to Agents to meet the interest &c accruing on
permanent Loans.
From these tables, Nos 1 & 2, it would appear that
which shows an excess of Expenditure over Revenue of £155,060.14.2.
| The total Ordinary Revenue during the 4 years ending in 1866 has been | £433,895. 5.0 |
|
—————
|
|
| The total Ordinary Expenditure, including that on Roads during the same period has been | £588,955.19.2 |
The temporary & permanent loans raised during 1862/3 1864 & 5
have been respectively
| Temporary | £135,081.3.7 | (Bearing 10 & 12 p.ct) |
| Permanent | £200,000.0.0 | |
| Total | £335,081.3.7 | |
|
—————
|
||
| The disbursements made for the redemption of Bonds & repayment of temporary loans has been | ||
| £125,141.5.9 | ||
| Total | £125,141.5.9 | |
Leaving an apparent debt at the end of 1865 of
£209,939.17.10. The remittances to the Agents for interest & sinking
fund during that period were £42,109.12.6.
The permanent Loans of £200,000
were raised in 1862-3-4 under
local Ordinances for the purpose of
carrying two roads through a wild & thinly populated Country.
were raised in 1862-3-4 under
local Ordinances for the purpose of
carrying two roads through a wild & thinly populated Country.
The last Loan for £100,000 raised in 1864 (which
only realized £95,800) was not however entirely spent on
roads. £20,000 went towards the suppression of Indian disturbances
& £10,700 to the Imperial Treasury for buildings occupied by the
Royal Engineers & for Surveys undertaken by them.
The Colony received therefore only £65,100 for the objects for
which that Loan of £100,000 was raised.
The amount which the Crown Agents must
annually provide for interest & Sinking Fund on the BC Loan
of £200,000 & the Vancouver Isld Loan of £40,000 is
£24,000
(see statement prepared by me in September last No 5.) The
account of the Colony with the Agents is annexed & shews a
deficit of £4550. (No 4.)
£24,000
(see statement prepared by me in September last No 5.) The
account of the Colony with the Agents is annexed & shews a
deficit of £4550. (No 4.)
One of the causes for the present
depression has been the falling off in the Customs Revenue
owing to large importations of Merchandize into Victoria while
a free port, which, after the Union were introduced on the
Mainland without the payment of any duty. This falling off
would simply be of a temporary nature.
All these circumstances
combined are stated to have caused a deterioration of over 95
per cent in the value of property, that is to say that Land which
in 1863-4
was worth £100 would now fetch at auction £3 or £4.
was worth £100 would now fetch at auction £3 or £4.
It is worthy of remark, as will be seen from the detailed
tables Nos 1 & 2, that in 1866 the cost of Establishments was
£38,000 out of a Revenue of less than £95,000. (Estabts &
interest on Loans therefore absorb 1/2 the Revenue).
In the same
year in Hong Kong notwithstanding a large increase for the Mint
Staff the Estabts only cost £32,000 out of a Revenue of
£160,000—and the relative rates of Salary to the principal
officers in those Colonies were respectively
| B Columbia | Hong Kong | ||
| Governor | £4000 | & £1000 allowance | £5000 |
| Col Secty | £800 | £1500 | |
| Auditor | £500 | £1000 | |
| Registrar | £500 | £800 |
In conclusion I beg to be allowed to observe that the Blue Books,
the Estimates & the Financial Returns from B Columbia besides
being carelessly prepared, are most irregularly transmitted to
this Country—for instance the Statements of Revenue &
Expenditure & the Estimates for 1867 which were drawn up or rather
passed in March last have only within the last few weeks been
received in this office, and they are seldom if ever accompanied by
such an explanation as would make them intelligible without a
rigid examination.
The Revenue of Vancouver Island the year before Union was £58,000
exclusive of Loans.
Documents enclosed with the main document (not transcribed)
*
[Enclosures with minute above:]
Table No. 1, Statement of British Columbia Revenue for the years
1863 through 1866, showing a grand total of £433.895.5.0.
Table No. 2, Statement of British Columbia Expenditure for the
years 1863 through 1866, showing a grand total of £598.255.19.2.
Table No. 3, Statement of Receipts on Account of Loans for the
years 1862/63 through 1865.
Table No. 4, Statement of Accounts with the Agents, showing the
status of the assets and liabilities of the colony, prepared by W.C.
Sargeaunt, Crown Agent, 17 December 1867.
Table No. 5, memorandum on British Columbia finance, prepared
by colonial office staff [taken in entirety below].
Minutes by CO staff
The first Loan of 1862 for £50,000 was sold in the
Colony, what it realized is unknown.
The second of 1863 realized £52,403.19.0. The third of 1864
for £100,000 was sold piecemeal—the Agents unwilling to put it
on the market were obliged to do so because the Govt drew so
heavily on them—it realized £95,800 or £4.4s discount.
The liabilities of the Colony on the 1 Oct (next Tuesday)
will be £8500. The account with the Agents is in a deficit of £5,940.
The annual payments
which the Agents must meet for interest
& sinking fund, on B.C. Loan £200,000 & VCI £40,000 are
which includes payt of interest on V.C. Loan of £40000 or nearly
one fourth of the Actual Revenue.
which the Agents must meet for interest
& sinking fund, on B.C. Loan £200,000 & VCI £40,000 are
| 1 Jany in each year | 6250 |
| 1 Apl " " " | 4125 |
| 15 Apl " " " | 2000 |
| 1 July " " " | 6250 |
| 1 Oct " " " | 4125 |
| 15 Oct " " " | 2000 |
| Total | 24750 |
WR
28 Sept 67
[The following minutes overlap in time with those already taken:]
Mr Holland
The Duke of Buckingham would be glad if you would look at the B. Columbia & Vancouver Loan Acts & see what power the Governor has of remitting what is due for interest & sinking Fund on the Loans raised.
The Duke of Buckingham would be glad if you would look at the B. Columbia & Vancouver Loan Acts & see what power the Governor has of remitting what is due for interest & sinking Fund on the Loans raised.
The Acts are, (herewith)
| B. Columbia | |
| No 44 of 1862 | £50,000 |
| 56 of 1863 | 50,000 |
| 7 of 1864 | 100,000 |
| Vancouver | |
| No 54 of 1862 | £40,000 |
On the 1st April last B. Columbia was
in arrear for interest
& sinking fund to the extent of £9,000, to meet which the Agents
had in hand, for all purposes, only £2843 leaving a balance of
£6,157 agt the Colony. In addition to this amount there became
due in July a further sum of £6250 for interest & sinking fund on
the two £50,000 Loans amounting together to £12,449. And on the
15th July a sum of £2000 for interest & sinking [fund] on the
Vancouver Loans of £40,000 became due = £14449.
in arrear for interest
& sinking fund to the extent of £9,000, to meet which the Agents
had in hand, for all purposes, only £2843 leaving a balance of
£6,157 agt the Colony. In addition to this amount there became
due in July a further sum of £6250 for interest & sinking fund on
the two £50,000 Loans amounting together to £12,449. And on the
15th July a sum of £2000 for interest & sinking [fund] on the
Vancouver Loans of £40,000 became due = £14449.
Monies have subsequently been recd which have enabled the
Agents to pay off all interest due, & a portion of what was due
on
account of the Sinking Fund, leaving only £4375 due.
on
account of the Sinking Fund, leaving only £4375 due.
On the 1st Oct. a further sum of £4125 will be due on
account of the £100,000 loan.
I learn from the Agents that they have been promised further
remittances.
Will you be good enough to add what you have to say & send
this on.
CC
30 Aug
Documents enclosed with the main document (not transcribed)
Statement of estimated revenues from 1 July to 31 December 1867,
showing a total of $270,310.
Statement of funds needed to meet the necessary expenditures and
liabilities of the colony from 1 July to 31 December 1867, showing a
total of $223,584.
Other documents included in the file
Table listing revenues and expenditures for British Columbia
and Vancouver Island for the years 1864 through 1866, prepared by
colonial office staff.
List of acts authorizing the raising of loans for British
Columbia 1860-1866 and Vancouver Island 1862-1864, prepared by
colonial office staff.
Two tables indicating the status of the colonies with respect
to interest and sinking funds, prepared by W.C. Sargeaunt, Crown
Agent, 20 May 1867.
Memorandum, T.F. Elliot, 31 December, indicating Buckingham's
intention to print the papers of Rogers and Birch for Cabinet, and
asking to know whether any further refinements were required.
Printed copy of confidential report by Rogers and
Birch on the financial status of British Columbia, with two tables
appended.
Duplicate copy of despatch No. 90, Seymour to Buckingham,
currently under discussion.
Robert Ker, Auditor General, to Colonial Secretary, 3 June
1867, indicating financial needs of Colony to end of the year, and
the means of meeting the salaries of public officers, marked
"enclosed in duplicate despatch No 90 of 15 July 1867."
Documents enclosed with the main document (not transcribed)
Statement of estimated revenues from 1 July to 31 December 1867,
showing a total of $270,310, enclosed in duplicate despatch No. 90.
Statement of funds needed to meet the necessary expenditures and
liabilities of the colony from 1 July to 31 December 1867, showing a
total of $223,584, enclosed in duplicate despatch No. 90.