Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Douglas, Sir James to Lytton, Sir Edward George Earle Bulwer 23 May 1859, CO 60:4, no. 6953, 371.
Abstract
Despatch to London.
Minutes (5), Other documents (3).
Douglas writes to Lytton to report updates on the land-sales system in the British Columbia and Vancouvers Island colonies, and on the plan to substitute “the system of licenses for digging Gold”
with “an export duty on Gold, and a direct tax on miners.” Among the land-sales changes
is to lower the “upset price” from “one pound (£1) per acre for ordinary country Land”
to “ten shillings (£0.10.0) an acre.” Douglas argues that this and, presumably, the other changes listed are intended to “promote
the settlement of the Country” by settlers, in competition with “the low rate of land
in the adjacent territories of the United States.”
In the minutes, Newcastle agrees with Douglas’s approach to “deferred payment” for land sales. Next, Blackwood is pleased with Douglas’s plan to tax gold exports and miners. Finally, Fortescue considers Douglas’s “arguments in favour of deferred payment for land” to be weak, and suggests that
deferred payments be abandoned in favour of a single upset price of five shillings
per acre, in order to “give him a better chance of competing with the U. States.”
The first of the three documents included in the file is a draft reply, Colonial Office
to Emigration Commissioners, which forwards a copy of Douglas’s despatch; second is the same, but from the Colonial Office to Hamilton at the Treasury; third is a draft reply, from Newcastle to Douglas, which suggests that Douglas’s approach to deferred payments for land sales may be “modified” by Newcastle’s previous despatch on the subject.
No. 156
I have duly received your Despatch of the 7th February No 16.
2. I observe with much satisfaction that the system of Land
sales, which we proposed
proposed to continue in Vancouver's Island and to
introduce into British Columbia, has generally met with your
approval. With regard to your suggestion that an upset price,
lower than one pound (£1) per acre for ordinary country Land should
be adopted provided that good practical reasons for such a course
should exist I would remark that during the completion of our
arrangements for the sale of Land, it did occur to me that a
lower upset
upset price than before proposed, would probably promote
the settlement of the Country, which might otherwise be retarded
owing to the low rate of land in the adjacent territories of the
United States: for these and other reasons the upset price was
fixed by the Proclamation of the 14th February last at ten
shillings (£0.10.0) an acre as stated in my Despatch No 104 of the
19th February last. It is also very gratifying to observe that we
have fallen into your
your views in making one general upset price
for the Land, and in adopting the system of sale by Auction.
Conceiving as we did that the interests of the Public would be
subserved by that more than by any other mode of sale and that
perfect confidence would be established in the purity of the Land Sales.
proposed to continue in Vancouver's Island and to
introduce into British Columbia, has generally met with your
approval. With regard to your suggestion that an upset price,
lower than one pound (£1) per acre for ordinary country Land should
be adopted provided that good practical reasons for such a course
should exist I would remark that during the completion of our
arrangements for the sale of Land, it did occur to me that a
lower upset
upset price than before proposed, would probably promote
the settlement of the Country, which might otherwise be retarded
owing to the low rate of land in the adjacent territories of the
United States: for these and other reasons the upset price was
fixed by the Proclamation of the 14th February last at ten
shillings (£0.10.0) an acre as stated in my Despatch No 104 of the
19th February last. It is also very gratifying to observe that we
have fallen into your
your views in making one general upset price
for the Land, and in adopting the system of sale by Auction.
Conceiving as we did that the interests of the Public would be
subserved by that more than by any other mode of sale and that
perfect confidence would be established in the purity of the Land Sales.
3. The only material point on which we diverged from your own
views was in not requiring prompt payment
payment for land, and in
permitting payment by instalments say one half on delivery, and
one half at the end of 2 years.
payment for land, and in
permitting payment by instalments say one half on delivery, and
one half at the end of 2 years.
4. The object of this regulation was to facilitate the purchase
of Land by settlers with small capital, who form the bulk of the
present intending settlers in British Columbia. This system is
undoubtedly open to the serious objections so
so forcibly stated in
your Despatch, but we think it would not be advisable to alter it
at present, nor until the settlement of the country is advancing
favourably, and the public revenue begins to feel the influence
described from the progressive expansion of the resources of the
country, and through the increase of the Customs duties, and by
direct imports on property, and on a population of profitable
profitable
consumers well capable of paying taxes.
so forcibly stated in
your Despatch, but we think it would not be advisable to alter it
at present, nor until the settlement of the country is advancing
favourably, and the public revenue begins to feel the influence
described from the progressive expansion of the resources of the
country, and through the increase of the Customs duties, and by
direct imports on property, and on a population of profitable
profitable
consumers well capable of paying taxes.
5. The system of prompt payment might however be adopted,
after the partial settlement of the country. When land acquires
more than a nominal value, and becomes in a manner a convertible
commodity.
6. Country land will be arranged as you propose, in lots
containing aliquot sections of a square mile, and Town Lands will
be laid
laid out as at present in Lots of 60 by 120 feet. The latter are
put up for sale at Twenty pounds ten shillings, and eight pence
(£20.10.8), and some of the unimproved Langley Town Lots sold at a rate
amounting to Five hundred and sixty pounds (£560) per acre.
laid out as at present in Lots of 60 by 120 feet. The latter are
put up for sale at Twenty pounds ten shillings, and eight pence
(£20.10.8), and some of the unimproved Langley Town Lots sold at a rate
amounting to Five hundred and sixty pounds (£560) per acre.
7. We shall continue to deal with mineral Lands in the manner,
of which you have approved and shall establish
establish such liberal
regulations as may encourage the exploration of the Country by
letting out the said Lands to the Discoverer.
establish such liberal
regulations as may encourage the exploration of the Country by
letting out the said Lands to the Discoverer.
8. I feel greatly obliged for the information you have kindly
given me of the practise in other colonies in such cases which
will be of much assistance to me.
9. We propose to abolish the system of licenses for digging
Gold which at present barely pays the expense of collecting and
and
to substitute an export duty on Gold, and a direct tax on miners,
from both of which measures we expect to derive a large increase
of revenue.
and
to substitute an export duty on Gold, and a direct tax on miners,
from both of which measures we expect to derive a large increase
of revenue.
10. Surveys are being extended to all the open districts of
Land on Fraser's river so that the Country may be laid out for
immediate settlement and occupation.
11. I shall not fail to furnish Her Majesty's Government with
copies of all maps
maps and plans which we may prepare and which I trust
may be found useful in awakening an interest in the public mind
respecting these Colonies.
maps and plans which we may prepare and which I trust
may be found useful in awakening an interest in the public mind
respecting these Colonies.
Minutes by CO staff
I have little doubt that the despatch of 7th May & further
experience will have modified Govr Ds views & practice as to deferred payment. On this subject I would do no more
than express concurrence in [cut off file].
Mr Elliot
Land Board.
Land Board.
It is most satisfactory to learn from this desph that the
Governor has determined on abandoning the thought to raise a
revenue by licenses for digging gold, & on substituting
for that duty a tax on exports, & a direct tax on miners.
It might be well to mention this to T-y.
ABd
13 July
Print this for Parlt, for our 3d
Series of B.C. papers comes out, as a sequel and termination
to the correspondence which has passed on the subjects treated
in this desph.
Duke of Newcastle
You will observe the Govr's arguments in favour of deferred payment for land, which are very weak, for that purpose, but strong for a low upset price. I confess I am suprised to find that the £1 an acre system wh. Ld. Grey maintained in V's Island, was introduced into B. Columbia the other day—tho' the £1 has now been reduced to 10s—of wh. 5s is deferred to the end of 2 yrs. I sh. be very much inclined to instruct Govr Douglas to abandon the deferred payments & let the upset price be 5s paid down, wh. will give him a better chance of competing with the U. States. The desp. of the 7th May has possibly led him to this already.
You will observe the Govr's arguments in favour of deferred payment for land, which are very weak, for that purpose, but strong for a low upset price. I confess I am suprised to find that the £1 an acre system wh. Ld. Grey maintained in V's Island, was introduced into B. Columbia the other day—tho' the £1 has now been reduced to 10s—of wh. 5s is deferred to the end of 2 yrs. I sh. be very much inclined to instruct Govr Douglas to abandon the deferred payments & let the upset price be 5s paid down, wh. will give him a better chance of competing with the U. States. The desp. of the 7th May has possibly led him to this already.
CF
14
Other documents included in the file
Draft, Colonial Office to Emigration Commissioners, 2 August 1859,
forwarding copy of the despatch for consideration.
Draft, Colonial Office to G.A. Hamilton, Treasury, 2 August 1859,
forwarding copy of the despatch for information.
People in this document
Fortescue, 1st Baron Carlingford Chichester