Colonial Despatches

I have to acknowledge the receipt of your despatch No. 34 of the 10th of June transmitting an Act passed by the Legislature of Vancouver Island in the month of May last and intituled An Act to authorise the Governor of Vancouver Island to borrow money for temporary purposes.

As it may have been necessary to borrow this money and as the Act has been passed by a Representative Legislature, I will not recommend Her Majesty to dis-allow it; but it is evident that a Government cannot go on borrowing at that rate of interest without the most ruinous consequences, and that it is the duty of the Executive which cannot be neglected without the gravest culpability to take care that there is no necessity forsuch such a mode of proceeding.

It is evident, that nothing can justify any person in borrowing at such interest but the opportunity of making corresponding profit, and that as Government makes no profit on its money, nothing but an unforeseen emergency can justify the Government in so borrowing.