No. 45, Financial
13th July 1864
Sir
Referring to your Despatch No 2 dated 30th April 1864, I have the honor to enclose a copy of communications which have passed between the House of Assembly, the Legislative Council and myself, together with a letter from the Treasurer on the same subject.
I cannot but concur in the popular belief that the ResolutionswhichManuscript image which have given rise to this correspondence were hurried through the House by a few influential persons on the eve of my arrival in the Colony for the purpose of embarrassing my administration.
The prompt and judicious reply conveyed in your Despatch No 2, 30th April 1864, supported by the public opinion of the colony, has entirely discredited the authors of this proceeding, and I entertain little doubt that the question of a "Civil List" will be met inaManuscript image a becoming spirit on the re-assembling of the Legislature which will be necessary at an early period.
I trust that you will approve of the course I have adopted in paying the public officers under the vote of indemnity passed by the House. Had I declined to do so, the public service must have fallen into serious confusion, as you will observe by the tenor of the Treasurer's letter that he had no funds other than Crown Revenue in his hands to meet current liabilities.
ItManuscript image
It is now obvious that the Resolutions contained misstatements which ought not to have been transmitted to the Secretary of State unchallenged.
I have the honor to be
Sir,
Your very obedient Servant,
A.E. Kennedy
Governor
Minutes by CO staff
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See minute annexed.
TFE 30 Augt
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The Assembly has recoiled from throwing the Colony into confusion by compelling a non-payment of salaries. It offered to indemnify the Governor (and the Legislative Council concurred) if he would pay the salaries out of the Crown Revenue, and in case he would not, promised to indemnify him if he would pay them out of the general Revenue. The Governor hopes that Mr Cardwell will approve of his having acted on this offer. I apprehend that there can be no doubt on that point? (On the 30 of June he told them that he felt himself prohibited from paying out of the Crown Revenue. But it was after this date that the Assembly nevertheless urged him to pay from the Crown Revenues, so that he ought properly to have told us distinctly that he had taken the other alternativeofManuscript image of paying out of the general revenue. I merely record the point here, in order that it may not seem to be overlooked or raise any fear of error hereafter, but of the Governor's real meaning there can be no doubt.) May he therefore receive an approval of having paid the salaries out of the general revenue on the strength of the promise of indemnity received by him from both parties of the Legislature, and should a hope be expressed that his anticipation that the question of a Civil List will be met by the Legislature on it's reassembling in a desirable spirit, may be fulfilled?
TFE 30 Augt
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1. From the Governor's argument, that, had he acted otherwise than he did, the public service must have fallen into confusion, as there were no funds other than Crown revenue to meet current liabilities, I should infer that he has paid the Salaries for the 2nd quarter, as his predecessor paid the 1st quarter, out of Crown revenue.
2. From the Treasurer's letter it would seem, that also $12,122, = about £2,525, has been advanced from Crown revenue to meet the deficiency of general revenue. And perhaps this may not include the first quarter's salaries, amounting to £505, which have been paid out of Crown revenue by authority of Sir J. Douglas, contrary to the intention of the S. State.
3. On the 30th June 1864 (it is not stated whether before or after payment of £900 for the 2nd quarter to the Govr & Coll Secretary) the balance to the credit of Crown revenue was $48,323.73 = more than £10,000. Of this sum £2,525, as stated above, had been allotted for general purposes, the remainder was actually in the Treasury.
4. So far therefore as can be gathered from the information furnished, the Crown funds are amply sufficient to meet any charges which are in question for this year.
Documents enclosed with the main document (not transcribed)
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"Messages of Governor Kennedy to Legislative Assembly dated 27 and 30 June 1864, relative to provision for salaries of Chief Justice, Attorney General, Colonial Treasurer and Surveyor General, and Resolutions of Legislative Assembly in reply thereto dated 29 June and 2 July 1864."
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Kennedy to Legislative Council, 5 July 1864, transmitting the resolutions of the Legislative Assembly.
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David Cameron, president of the Legislative Council, to Kennedy, 5 July 1864, concurring on the question of indemnity in the resolutions, but reserving opinion on the other matters.
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Alexander Watson, Colonial Treasurer, to Acting Colonial Secretary, 30 June 1864, advising on the status of the crown revenue.
Minutes by CO staff
N.B. This is rather a confused and obscure letter, but as fortunately
it is immaterial to the decision which has been taken, it is not worth while to relate all the different meanings of which it is susceptible.
TFE 30/8
Other documents included in the file
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Draft reply, Cardwell to Kennedy, No. 38, 16 September 1864.
Minutes by CO staff
Fair copy of the draft despatch, as settled by Mr Cardwell. Keep
with 8114, for reference when wanted.
TFE 17/9
Other documents included in the file
*
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Draft reply (rough draft), Cardwell to Kennedy, No. 38, 16 September 1864.
Kennedy, Arthur to Cardwell, Edward 13 July 1864, CO 305:22, no. 8114, 341. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.2, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/V64145.html.

Last modified: 2020-12-02 13:40:34 -0800 (Wed, 02 Dec 2020) (SVN revision: 5008)