Colonial Despatches

I think it my duty to report to Your Lordship the anomalous position in which I found the office of Treasurer in this Government on my arrival in the Colony.

2. It is the principal department of Revenue,Expenditure Expenditure, and Public Accounts, and yet has been allowed to remain for nearly three years without any recognized head—left to the administration of a clerk who has given no security for the safe custody of the Public monies.

3. In Mr Seymour's Despatch No 58 of the 6th April, 1867, he has mentioned his recommendation which was subsequently acted upon, that Mr Franks, thenTreasurer Treasurer of the Continental portion of the Colony, should be relieved from his duties, and his further suggestion that Mr Watson, late incumbent of the office of Treasurer of Vancouver Island, which Mr Seymour treated as having been abolished, should be appointed Treasurer of the United Colony.

4. In the same Despatch Mr Seymour stated however that he foundthe the financial embar[r]assment much greater than he anticipated, and also that what he mentioned as the light duties of the office of Treasurer could be performed without much trouble or increase of pay by the Collector of Customs.

5. I now find that this arrangement was never carried out, although Mr Watson was removed from the office of Treasurer,and and that, as I have stated, the Department has remained merely in charge of the Chief Clerk, who has given no security and has required the assistance of two subordinates in the discharge of his duties. While in effect there is no responsible official to whom the Governor can look for assistance in the adjustment and administration of thefinancial financial arrangements of the Colony.

6. I have no doubt that the amalgamation of the Customs and Treasury into one Revenue Department under the Collector of Customs, or any other Officer who might be selected as Receiver General, would have been a most desirable arrangement, though my own experience does not teach me that the duties of the officeof of Treasurer and Public Accountant in any Colony are so light as to be performed without trouble or increase of expense in another department. But such a reorganization of these public departments, which would have been easy and most desirable two years and a half ago is not now to be so readily accomplished, nor is it now free from objection. In view of the Union of this Colony withthe the Dominion of Canada it would be profitless to consolidate offices which would have to be again disunited, as the Customs would be a Department of the federal Government and the local administration would require a Treasury of its own. On the other hand, having regard to the necessity which exists for economy in the management of the finances, and tothe the fact that for nearly three years the office, though not the duties, has been practically abolished I am not at present prepared to recommend the appointment of a Treasurer. Yet it is obviously improper on general principles that the public should be without security for the safe custody of the public monies, while at the same time it would be hard upon Mr Graham, the Clerkin in charge after being allowed to remain so for more than two years and a half without any objection on this score, to be required now without further remuneration to give security which would probably entail upon him some expense.

7. I admit that under the complicated circumstances which I have brought to Your Lordships notice, I am disinclined for the presentto to attempt any alteration of existing arrangements from which no absolute evil has yet arisen, but I feel them to be so irregular that I could not allow them to continue without acquainting Your Lordship with the state of affairs and my reasons for not immediately taking some steps in the matter, in order that Your Lordship may be able to furnish me with any instructions thatyou you may think expedient under the circumstances.