Treasury Chambers
4th December 1862
Sir,
With reference to your letter of the
19 ultimo, enclosing two acts of the Legislature of
Vancouvers Island, entitled respectively
I am directed by the Lords Comm of H. M. Treasury to acquaint you, for the information of the
Duke of Newcastle that
![Manuscript image Manuscript image](https://hcmc.uvic.ca/~coldesp/jpg_scans/jpg_thumbnail/rg7_g8c_03/rg7_g8c_03_00099v.jpg)
their Lordship 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
Loan.
With regard to the negotiation of the Loan by the Agents General for
Crown![Manuscript image Manuscript image](https://hcmc.uvic.ca/~coldesp/jpg_scans/jpg_thumbnail/rg7_g8c_03/rg7_g8c_03_00100r.jpg)
Crown Colonies, and the signature by them, on behalf of the Colonial Government of
Vancouver Island, of the Debentures to be issued in this country, My Lords desire that there should
be a distinct understanding that in thus borrowing money for a Government which possesses
the control over its own general revenue, without the supervision of H. M. Gov the Agents General are
acting![Manuscript image Manuscript image](https://hcmc.uvic.ca/~coldesp/jpg_scans/jpg_thumbnail/rg7_g8c_03/rg7_g8c_03_00100v.jpg)
acting merely in the name of the Local 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 Gov of
Vancouver Island should contribute towards the Expenses of the Agency for service to be rendered in
respect to the Proposed Loan - I am &c