No. 19
22nd February 1870
My Lord,
In reply to the enquiries made in Your Lordship's Despatch No 1, of the 10th January, I have the honor to acquaint you that the sum of $12,421 37/100, equal to £2,561.2.2, Two Thousand, five hundred,andManuscript image and sixty-one pounds, two shillings, and twopence, sterling, was drawn from the Crown Fund of Vancouver Island by the late Mr Seymour on account of Salary to the Governor; and that the accounts of that Fund have not been sent home for Audit since the Union of the Colony with British Columbia.
2. I would submit for Your Lordship'sconsiderationManuscript image consideration whether this fund and its sources may not now with propriety be transferred to the General Revenue as the Civil List of Vancouver Island has been provided for by the Union of the Colonies. The greater part of the accumulations of the fund has already in fact been so transferred as a Loan, as will be observed on reference to the Returns forwarded in my DespatchNoManuscript image No 4 of the 7th Ultimo.
I have the honor to be,
My Lord,
Your most obedient
humble Servant
A. Musgrave
Minutes by CO staff
Manuscript image
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. heManuscript image 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 orManuscript image 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 RevenueManuscript image 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 asManuscript image follows—
Due by the Colony—1 Jan 1864 $34,321.65

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

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
Due by the Colony on 31 Dec. 1864 26,550.70

Manuscript image
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,
Manuscript image
I find this was money lent to the Colony & not repaid.
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.
Manuscript image
The real balance on paper.
As regards the surrender of this Fund to the control of theManuscript image 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 effectedManuscript image 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, FeesManuscript image 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 ofManuscript image 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 mightManuscript image [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 beManuscript image given for the audit of passed Accounts, & for how far back,
Manuscript image
Yes, since the Union.
& I think there [should] be sent home an account of the receipts & payments since 1864 to the present time.
CC 6 April 70
Manuscript image
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;
Manuscript image
Is it necessary to ask for an answer. I believe the widow is in very bad circumstances.
& 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 tosendManuscript image send home for audit the accounts of the Crown Fund since the Union.
RGWH Ap 6/70
WM 7/4
G 7/4
Manuscript image
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.
RGWH Ap 9/70
Other documents included in the file
Manuscript image
Herbert to Secretary to the Treasury, 14 April 1870, forwarding copy of the despatch with discussion of future financial arrangements in the colony.
Minutes by CO staff
Manuscript image
Received 11th. I was not able to attend to this before in consequence of pressure of other work.