Colonial Despatches

The Lords Commissoners of Her Majesty's Treasury have had before Them your letter of 14th February last inclosing correspondence on the subject of the refusal of the Bank of British Columbia to discount a Bill which the Acting Governor proposed should be drawn by the Crown Agents on the Government of that Colony for the Interest and Sinking Fund due on the Loans to 31st December last, and requesting to be informed whether Their Lordships can suggest any particular method of remittance as most fitting for placing the requisite funds in the hands of the Crown Agents at each half yearly period.

My Lords request that you will inform the Duke of Buckingham and Chandos that, in the absence of a Treasury Chest in British Columbia, My Lords consider that Bank Bills of short date should be purchased in the Colony and sent to the Crown Agents early enough to mature before the payments of interest and sinking fund fall due in London.

The Governor should be directed to consider liabilities in respect of loans to stand in the position of primary charges on the Revenue, even before the Salaries of Public Officers; and to purchase at least three months in advance, good Bank Bills, and to send them forthwith to the Crown Agents.

My Lords desire me to express Their regret that their reply has been so long delayed; which has resulted entirely from an accidental oversight.