Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Peel, Frederick to Rogers, Frederic 4 December 1862, CO 305:19, no. 11789, 606.
Abstract
Public Offices document.
Minutes (3), Other documents (2).
Peel writes Rogers on behalf of the Treasury to inform
Newcastle that
The Vancouver Island Road and Harbour Loan Act 1862and
The Vancouver Island Temporary Debenture Loan Act 1862have been approved. The Treasury expresses its discomfort with the
absence of any information of a recent date respecting the Financial condition of the Colonyand warns that it will not be responsible for repayment of the loans should the colony default. Rogers minutes that
these financial arrangements of Gov. Douglas appear to me rather alarming,prompting Fortescue to comment that
Douglas is, I think, a very unsatisfactory financier.
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, forthe
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.
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 negociationof
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 Generalare
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.
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 Generalare
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 forservices
services to be rendered in respect to the proposed Loan.
services to be rendered in respect to the proposed Loan.
Minutes by CO staff
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
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.
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.
Other documents included in the file
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."
