I have to acknowledge the receipt of your despatch No. 77 of the
               
28th of December, reporting that 
Mr. George Tomline Gordon, Treasurer
               of 
Vancouver Island, had been committed for trial upon a charge of
               embezzlement of the public funds and that you have consequently
               suspended him from his Office. I have also received your despatch No.
               78 of the 
28th of December
 reporting that you have appointed 
Mr. Alexander Watson to act as Treasurer in the place of 
Mr. Gordon.
               
               
               I have received this intelligence with much concern. It is
                  incredible that three of the persons recently appointed by you to
                  Offices of trust and responsibility in your Government would have
                  proved defaulters, if you had exercised proper care in the distribution
                  of the patronage which has been left so unreservedly in your hands.
                  These repeated instances of defalcation are discreditable to your
                  Government and cannot fail to deprive the Executive of the respect and
                  confidence of the Colonists.
               
            
            
               Nor can I pass unnoticed the irregularity which you have committed
               in appointing without my sanction

 a permanent successor to 
Mr. Gordon.
               It is your duty in all such cases to make none but provisional
               appointments, and to submit them for the approval and sanction of the
               Secretary of State. In the present instance you have practically
               placed the appointment beyond my control since it appears that in
               accepting the Office of Treasurer 
Mr. Watson has resigned the place of
               Accountant in the 
Bank of British North America and it would be a
               hardship, which I should not be prepared to inflict on that gentleman,
               were he now to be deprived of the appointment for which he has
               relinquished his career. On this ground, and on this only, I have

               decided to confirm 
Mr. Watson in the Office of Treasurer and I shall
               forward to you the Royal Warrant for his appointment by an early
               opportunity.