Peel to Rogers (Permanent Under-Secretary)
Treasury Chambers
4 December 1862
With reference to your letter of the 19 Ult, enclosing two Acts of the Legislature of Vancouver's Island entitled, respectively, "The Vancouver Island Road and Harbour Loan Act 1862" and "The Vancouver Island Temporary Debenture Loan Act 1862".
I am directed by the Lords Commissoners of Her Majesty's Treasury to acquaint you, fortheManuscript image the information of the Duke of Newcastle, that Their Lordships will not object to the confirmation of the two Acts in question, but they regret the absence of any information of a recent date respecting the Financial condition of the Colony, as without it, they can form no opinion as to the adequacy of the security provided for payment of the Interest, and for the redemption of the Loans.
With regard to the negociationofManuscript image of the Loan by the Agents General for Crown Colonies, and the signature by them, on behalf of the Colonial Government of Vancouver Island, of the Debenture to be issued in this Country, My Lords desire that there should be a distinct understanding that, in their borrowing money for a Government which possesses the control over its own general revenue without the supervision of Her Majesty's Government, the Agents GeneralareManuscript image are acting merely in the name of the Local Government, and that Her Majesty's Government can come under no responsibility on account of their transactions in that capacity, or otherwise, in connection with the Loan.
My Lords are of opinion that the Agents General should be called upon for a Report as to the mode in which the Government of Vancouver Island should contribute towards the expenses of the Agency forservicesManuscript image services to be rendered in respect to the proposed Loan.
I am, Sir
Your obedient Servant
F. Peel
Minutes by CO staff
Manuscript image
VJ 5 Decr
Mr Fortescue
Confirm the Acts and refer to Mr Julyan.
But I must say these financial arrangements of Gov. Douglas appear to me rather alarming. The matter is one (loans for public works in B Columbia and V.C.I.) to wh you have given a good deal of attention.
FR 6/12
Manuscript image
Duke of Newcastle
Govr Douglas is, I think, a very unsatisfactory financier. But in V. Id these Loans are, at all counts, sanctioned by an elected assembly—& do not depend, as in B.C., on the Govr's single will. I wd confirm the Acts.
CF 8
N 9
Other documents included in the file
Manuscript image
Rogers to Agents General, 18 December 1862, forwarding copy of the letter and acts and asking for their report "upon the mode in which the Colony should provide for the expenses of the Agency with respect to the loan."
Manuscript image
Draft reply, Newcastle to Douglas, No. 122, 18 December 1862, informing him that The Vancouver Island Road and Harbour Loan Act 1862 and The Vancouver Island Temporary Debenture Loan Act 1862 have been approved, and forwarding the Treasury's concerns.