Colonial Despatches

I have the honor to transmit to you the copy of a Letter from the Crown Agents stating the liabilities of the Colony of British Columbia in respect of the Interest and Sinking Fund due on account of its Debenturesand and enquiring from what funds these charges should be defrayed.

I also annex a copy of the reply which I caused to be returned to that letter, authorizing them to pay out of other funds the Interest due on these Debentures, but instructing them to postpone for the present, payments on account of the Sinking Funds of these Loans.

I have to convey to you my instructions that you forthwith remit to this Countrythe the full amount thus overpaid by the Agents, or remaining due to the Sinking Fund, with such further amounts as will enable the Crown Agents for the future to meet punctually the engagements of the Colony under your Government.

I need hardly repeat the expression of my extreme dissatisfaction at the mode of management which has led to these results. It is necessary that the local Government should understand that it is discreditable in the highestdegree degree to any Country to neglect to remit punctually the interest due to its public Creditors. No expectation must be entertained that any default will be made good from other funds or that this Department would consent to let the Crown Agents negotiate further loans for any Colony if it should evince a persistent disregard for punctuality in performing this class of obligations. Your proper course for the future will be to remit the requisitefunds funds for Interest and Sinking Fund so that they may arrive some moderate time before they are due.