Colonial Despatches

Mr Herbert

Salary recd by the late Governor Seymour from that Fund.

The letter of the 12 Jan last to the Treasury (c/14206-69) explains exactly the state of the case on this latter point—& it has now to be decided whether Mr Seymour's Representatives (His Widow I believe) shall be called upon to refund the £2561.2.2. he received on account of additional Salary at the rate of £1000 [per] year. That decision was postponed—with Treasury concurrence see Treasy/771-70—until this further information should be recd. I would refer you to Sir F. Rogers' minute on 4/11115-69.

Mr Musgrave was also requested to state up to what period the Accounts of the Crown Fund had been sent home for Audit. The answer is not since the Union—but why or wherefore is not stated.

Mr Musgrave further suggests that the Crown Fund should be paid into the General Revenue, & thus become subject to the control of the Legislative Council.

Up to the Union of Vancouver Isd & B. Columbia various Vancouver Isd Salaries &c were paid out of the Crown Fund of the former. At the Union the Salaries of the Public Officers were paid from the General Revenue of the United Colony under the Crown Officers Salaries Act B. Columbia No 12 of 1863—that is to say the Salaries thus given to the Officers of B. Columbia before Union were continued as the Salaries of the Officers of the United Colony—with an additional £1000 to the Govr under a subsequent permanent Act.

The last account of the Receipts & Expenditures of this Fund that can be found is that for 1864—it is as follows—
Due by the Colony—1 Jan 1864 $34,321.65


Receipts
Land Sales 15,528.45
Land Revenue 565.—
Rent—Mining 1,140.—
Mining Revenue 21,263.65
55,585.30


Expenditure
Salary of Sir J. Douglas, late Gov 13,611.27
" Gov. Kennedy 11,323.18
" Colonial Secy 1,529.45
" Gold Commrs 1,608.26
Court House—Leech River 791.62
Preemption Fees to Land Recorders 151.32
Refunds 19.50
$29,034.60
Due by the Colony on 31 Dec. 1864 26,550.70

I find that in 1866 or 7 Fines Fees & Forfeitures were brought back to the Crown Fund—as done previous to 1864—coming to about $1000 a year. I do not clearly make out what is meant by "due the Colony," $26,550, because by a Return laid before the Legislature Feb 1865 of receipt & payments the intimated balance in favor of the former is put at $84.066.

As regards the surrender of this Fund to the control of the Legislature I conclude there is no bar to it because in a dispatch dated the 15 June 1863 the D. of Newcastle stated that on the passing of an Act to secure the principal Officers permanent Salaries he was prepared to hold the Crown Revenue of Vancouver Island at the disposal of the Legislature, retaining only such temporary power over the Land as will enable HM's Govt to close its transactions with the Hudson's Bay Cy. When this is effected I shall be ready to transfer the management of the Revenue to the Colonial Legislature.

The H. of Assembly declined to pass a Civil List Act—upon learning which Mr Cardwell (30 Ap 1864) wrote It appears from the Resolution of the Assembly that the Crown Land Fund for the year 1863 amounted to £4,500 (1863—$27,898 from the Return in all), but that a considerable portion of this sum consisted of the proceeds of sales effected in former years. There may be sources of Revenue such as Fines & Forfeitures, Fees of Office, the proceeds of which the Crown could justly appropriate, but in the absence of any precise information on this head I can only authorize you to issue Warrants for the payment of the Salaries of the Governor & Col: Secy at the respective rates of £3000 & £600 per an assigned to them by my Predecessor, out of any Funds that may be under the direct control & at the disposal of the Crown.

And here the matter rested apparently lost sight of in the exciting & important question of the Union of the two Colonies.

As to the surrender of this Crown Fund to the control of the Legislature I may say, tho perhaps beyond my province, that having a sufficient List I do not see any fair reason for retaining the money at the disposal of the Governor—& that this surrender might [be] coupled with the single condition, as suggested by Sir F. Rogers if I may refer to a casual conversation, that they shall place permanently at the disposal of the Governor a sum of say £1000 as a general contingent Fund, an account of the Expenditure being laid before the Legislature at the beginning of each ensuing year for their information.

It remains to be considered what instructions shd be given for the audit of passed Accounts, & for how far back, & I think there [should] be sent home an account of the receipts & payments since 1864 to the present time.

Send copy to the Treasury saying that Lord Granville will now be glad to have their decision upon the question raised in the letter from this office of the 12th Jan; & is of opinion that, as a sufficient Civil List has been permanently provided, the Crown Fund may now be merged in the General Revenue, & placed under the control of the Legislature, on condition of their passing a supplementary Civil List securing £1000 per ann., to be accounted for by the Governor, but expended by him alone as Imperial Interests may require. And that Lord G. proposes to instruct the Governor tosend send home for audit the accounts of the Crown Fund since the Union.

As to the manner of relinquishing the Crown Fund, say that the Governor is authorised to assent to any Ordinance that may be passed for that purpose if it reserves the £1000 as above mentioned.

At once.