No. 127, Financial
               
            
            
            
            
               I have the honor of transmitting herewith for your
               information, an abstract of the Revenue and Expenditure of
               the Colony of 
British Columbia, taken from the Accounts of
               that Colony, which have been made up in a 
clear
clear and intelligible
               form, to the 
23rd day of February 1859.
               
               2.  Those Books comprise all our Financial transactions
               up to that period.  It will be observed, that the Income
               derived from the various sources therein shewn, amounts to
               the sum of £22,924.1.5; and the expenditure for the same
               period, to £25,059.6.4, exceeding the Income by the sum of £2135.4.11.
               
            
            
               3.  To meet the deficiency, there is on the other hand the
               sum of £10,284.19.9 remaining, partly in Cash at 
Langley, and
               partly due on the 
sale
sale of Town Lots, at the same place; a small
               sum invested in Government buildings, and in aid of the Harrison's River Road, which
               leaves a Balance on that date
               exceeding £8,000 in favor of the Colony.
               
               Some petty balances may remain outstanding at 
Fort "Hope",
               "
Yale", and "
Lytton", which were not received in time to be
               incorporated with those accounts; but such sums will be paid
               out of the current revenues of those Districts.
               
               At the Towns of "
Lytton", "
Hope" and "
Yale", which were
               surveyed and laid out into building lots, last autumn, no sales
               have yet been made, but instructions have 
been
been conveyed to the
               Commissioner of Lands and Works, to bring those lands into the
               market with as little delay as may be convenient.
               
               4.  The construction of the Harrison or Lillooet Road, has
               been the great source of outlay this season, that work having
               cost the Colony nearly £14,000.
               
            
            
               5.  Large as the outlay may appear, it very inadequately
               represents the value of this important public work, which has
               removed the difficulty of access, and the great impediment to
               the development of the mineral regions of 
British Columbia.
               
               6. The
6. The outlay for all other objects connected with the
               Colony, including £2,300 applied in defraying the extra pay
               allowed, for one quarter, to the Officers and Ships Companies
               of Her Majesty's Ships "
Satellite" and "
Plumper" forms the
               moderate sum of £11059.
               
 
            
            
               7.  The removal of the intended Sea Port Town, from 
Langley
               to 
Queensborough, has caused a depression in the public revenue,
               arising from sales of Town lands, which ceased entirely at the
               former place, with the first announcement of the proposed change
               in the seat of Government.
               
               Colonel Moody reports that 
it
it will be several weeks before
               the survey of the site of 
Queensborough is completed, and that
               no country land will be surveyed for sale before the first week in 
May.
               
 
            
            
               8.  Those sources of revenue are therefore for the present
               altogether unproductive though the current expenses of the Colony
               are somewhat increased by the addition of civil assistants to
               expedite the survey of country lands, and to increase the means
               and efficiency of the Department of Lands and Works, and to
               render it productive of revenue.
               
            
            
               9. The
9. The Colonial Treasurer advocates Stamp duties as a source
               of revenue "in combination with a self paying Registration of
               Assurances affecting real property,"
               and I have desired him to prepare a report on the best means of
               carrying those views into effect.
               
 
            
            
               If such duties be confined even to conveyances of real
               estate, they will be productive of considerable revenue.
               
            
            
               10.  The want of an assay office in the Colony is felt as
               a public inconvenience, and is no doubt highly detrimental to
               the commercial interests of the country. 
There
There being at present
               no means here of ascertaining the true commercial value of Gold
               dust, the merchant to save himself from loss will only purchase
               it, at a low rate, which the Miner will not accept, or the gold
               dust is retained in the Merchant's hands in deposit, until
               samples of it are sent and tested at 
San Francisco.
               
               Hundreds of Miners worn out with the expense and delay so
               occasioned, fly in disgust with their gold, to 
San Francisco.
               
               11.  An assay office established here, the evil would cease
               to operate, and the gold would remain in the country.
               
            
            
               12. The
12. The establishment of an assay office would otherwise
               I believe, prove of signal advantage to the public revenue, in
               as much as it would give facilities for levying an export duty
               on Gold.  That is now impossible, and will be, so long as the
               Miner cannot get a fair price for his gold in this country, and
               in consequence keeps it in his own hands.  If collected at all,
               in those circumstances the duty would have to be wrung from each
               individual miner, and they, to elude the payment, would cross
               the frontier and 
fly
fly with their treasures into the United States.
               
 
            
            
               13.  The Assay Office would provide a remedy for the evil.
               Every man, might through its aid, learn from an official source
               the true value of any gold in his possession, and either spend
               or exchange it for coin in the country.  This would throw the
               export of gold into the hands of large dealers who having no
               inducement to smuggle equal to the risk, would export through
               the lawful channel, paying the duty, which they in turn would
               take care to 
levy
levy on the Miner, by deducting it from the price paid.
               
               14.  An export duty might then be imposed with advantage and
               be found easy and cheap of collection.
               
            
            
               The other features of the Australian system of taxation on
               Miners, might also be adopted and made applicable to the
               circumstances of 
British Columbia; in which case the Licence
               Fee on Miners, so objectionable on account of the expense, and
               affrays produced in its collection would cease to be enforced.
               
               15.  I have only further to state in reference to the Abstract
               
of
of 
British Columbia Accounts, forwarded, that the Treasurer 
Captain
                  Gosset, has now the sole and entire arrangement of the Financial
               Department over which I have hitherto had to maintain a rigid control.
               
               I have etc.
               
               James Douglas
               
               
               Note.  Subject continued in Despatch N
o 135.
               
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                     The Revenue of the Colony is scarcely what we hoped.
                     But this Account includes the winter season, & dates from
                     the [inception?]
                     
                     of the Colony which was perhaps not to be expected at first starting.
                     Later reports may be more favorable.
                     
                  
                  
                  
                  
                  
                     Recommend the proposal of an assay office to the serious
                     consideration of the Treasury?
                     
                  
                  
                  
                   
                
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     Note in file as follows:  "C.O. 60  Vol. 4  Folios 266 verso, 267
                     recto, being too large will be photographed later."