Colonial Despatches

I have had the honor to receive Your Lordship's Despatch No 78 of the 4th August forwarding a Report from the Crown Agents upon Mr Hankin's Despatch No 13 of the 21st June respecting the stepswhich which have been taken by the Colonial Government to meet the liabilities of the Colony on account of the British Columbia and Vancouver Island Loans.

2. I regret to say that there is too much justification for the remark of the Crown Agents that the financial position of the Colony at their Office has been very imperfectly understood by the local authorities.

3. The Statement furnished by the Crown Agents as to the position of their Account appears upon investigation to be correct. The amount of £18,350, which they state to be required by the 1st January next to meet current liabilities, has been reduced by remittances since the date of their letter to the extent of £9,800, so that £8,550 will be the amount necessary to be forwarded by 1st December,and and this amount I hope to be able to make arrangements to furnish in proper time.