Kennedy, Arthur to Cardwell, Edward 11 September 1866, CO 305:29, no. 10232, 323.

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Despatch to London
Kennedy, Arthur to Cardwell, Edward 11 September 1866, CO 305:29, no. 10232, 323.

Abstract

Kennedy, Arthur to Cardwell, Edward 11 September 1866, CO 305:29, no. 10232, 323.

Despatch to London. Minutes (3), Enclosures (untranscribed) (2).

No. 74, Financial

11th September 1866

Sir,

Referring to my Despatch No 73 dated 8th September 1866, I have the honor to enclose the Report of a Board of Officers consisting of the Colonial Secretary, the Treasurer, and the Auditor to whom I referred the consideration of the probable condition of the finances of this Colony at the close of the year 1866.

It appears from this Report that the Board anticipate that the current payments will exceed the receipts during the remainder of this year by $15,878 (£3273).

In addition $77,824 (£16,045) are due to the Bank of British North America besides a present debt of about $20,000 (£4123) to the Crown Fund and the liability of the Colony to the Imperial Government on account of the erection of Lighthouses. On the other hand the sums which have beenclaimed

claimed from the Colony of British Columbia on account of the conveyance of Mails and maintenance of Lighthouses are also left out of consideration.

Foreseeing that the Ways and Means would not meet the expenditure I had, prior to the receipt of this report, effected certain reductions of expenditure, and I trust by further reductions to be able to bring the payments for the remainder of the year within the receipts.

I should have been prepared to enter upon these reductions at a much earlier period of the year had the financial proceedings of the Legislative Assembly (which extended over the first eight months of the year) been sooner brought to a close.

I have the honor to be,
Sir,
Your most obedient Servant
A.E. Kennedy
Governor

Minutes by CO staff

Sir F. Rogers
See No 73 of the 8 Sep.

Ack. rect and express confidence in the judgment exercised by Govr Kennedy in this emergency. I do not see that we can do any more. Govr Seymour will necessarily and naturally take the subject of the finances of the United Colonies into his earliest Consideration. And therefore to direct his attention to the financial condition of V.C.I. wd seem an act of supererogation on the part of the C.O.

ABd 30 Oct

Mr Blackwood
I do not exactly understand all this. The desph

No 73 shews that in August 1866 the Assembly & Council between them failed to pass an Appropriation Act for that year.

But has Govr Kennedy been spending money all this time on his own authority & in anticipation of such an Appropriation Act. And does the present despatch tacitly imply that he intends to go on doing this?

The last paragraph in No 73 (10231) appears to supply the answer to Sir F. Rogers enquiry. If it is necessary to legalize the expenditure of 1866—does it not follow that the Govr has incurred an unauthorized expenditure? No 73 has just been returned to the Dept which will account for the delay in sending this Desp: forward. Lord Carnarvon has not seen it.

VJ 12 N

Documents enclosed with the main document (not transcribed)

W.A.G. Young, Alexander Watson and Henry Wakeford to Kennedy, 11 September 1866, forwarding their report on the "actual and probable liabilities of the Colony for the remainder of the current year, together with the probable assets that will be forthcoming during the same period."