Sargeaunt to Elliot (Assistant Under-Secretary)
Offices of the Crown Agents for the Colonies,
Spring Gardens, London, S.W.
6 February 1866
Adverting to your letters of the 16th November and the 14th December last, conveying Mr Secretary Cardwell's authority for the investment of the contributions to the British Columbia Sinking funds on the Loans of that Colony in the securities either of Ceylon, New South Wales, Mauritius, Victoria, or the Cape of Good Hope as the Trustees may from time to time determine, due regard being had to the prospects of the several Colonies mentioned, I think it righttoManuscript image to bring under Mr Cardwell's consideration whether the advantages thus granted to British Columbia, should not under the same regulations be extended to Vancouver's Island.
The Trustees to the Vancouver Island Sinking fund are Mr Gairdner and myself, appointed by your letter of the 1st July 1863 pursuant to Clause XIII of the Vancouver Island "Road and Harbour Loan Act, 1862," which vests also in the Secretary of State for the Colonies the power to select the natureofManuscript image of the securities, whether Imperial or Colonial.
Below for the convenience of reference I annex an Extract from Clause XIII.
I have the honor to be,
Your most obedient Servant

All sums paid to the account of the Sinking fund and all interest or dividends arising therefrom shall be vested in the names of Trustees in the purchase of Imperial or Colonial Government Securities, the nature of such securities, and the selection of such Trustees shall be left to Her Majesty's Principal Secretary of State for the Colonies.
Minutes by CO staff
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Mr Elliot
In 1862 the V.C.I. Legre passed an Act for the purpose of raising £40,000 for road and Harbor improvements. A sinking fund for the Redemption of the Loan was created, & the investment thereof was by the 13th clause of the Act—extract of wh: is annexed by Mr Sargeaunt—left to the selection of the S.S. for the Colony. In /63 the T-y were consulted, & they suggested Consols and the new 3 p: cents. The Agents think, I suppose, that the sinking fund may be put into more profitable securities, & suggest, that the same securities should be made use of as in the case of the B. Columbia sinking fund. As the Authority for investment resides in the S.S., by the Act, & as we know the opinion of the T-y about the securities of Ceylon, Mauritius, & certain other Colonies I think we may instruct the Agents to pursue the same course as they have lately done with respect to the B.C. sinking fund without referring to the T-y.
ABd 7/2
We might take that course, but [one line off microfilm] fund should be invested in consols, it may be safer and more regular to take the Treasury along with us. I therefore annex a draft for the purpose.
TFE 10 Feb
Other documents included in the file
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Elliot to G.A. Hamilton, Treasury, 13 February 1866, forwarding copy of letter from crown agents for consideration.