Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Hamilton, George Alexander to Merivale, Herman 31 May 1859, CO 60:6, no. 5533, 159.
Abstract
Hamilton, George Alexander to Merivale, Herman 31 May 1859, CO 60:6, no. 5533, 159.
Public Offices document.
Minutes (6), Enclosures (untranscribed) (1), Other documents (1).
Hamilton to Merivale (Permanent Under-Secretary)
Treasury Chambers
31 May 1859
Sir,
Adverting to your letter of the 14th Instant, I am
desired by the Lords Commissioners of Her Majesty's Treasury
to transmit, for the information of Secretary Sir E.B. Lytton,
the enclosed copy of a letter from Messrs Benson & Co,
relative to the offer made by the North West Navigation and
Railway Company of Canada to establish a postal service with
British Columbia.
In consequence of that communication a deputation on
behalf of the Company attended at this office, and had an
interview with one of My Lords Secretaries, and it appeared,
from the statements made on that occasion; that it was the
opinion of the Deputation that the contemplated Mail Service
from San Francisco to British Columbia, for which Tenders
are about to be invited, would entirely preclude all hope of
success in Establishing the route through the British North
American 
territory, which it is the object of the Company to open.
territory, which it is the object of the Company to open.
Sir E.B. Lytton is aware that it was determined to
invite Tenders for the Service from San Francisco, in
consequence of the overtures made by Mr Stamp of British
Columbia, whose proposals were submitted to this Board by the
Colonial Office, accompanied by strong recommendations in
his favor from the Lieutenant Governor of the Colony.
My Lords, under the impression that the course 
indicated
by the proposal of Mr Stamp, offered the best and earliest
means of Establishing the desired communication—and that the
question involved in the offer of the North Western Naviagation
and Railway Company of Canada was one which more immediately
concerned Colonial Interests, and could not be treated as a
mere postal arrangement—thought it desirable to postpone the
consideration of the latter proposal, until they had ascertained
the wishes 
and feelings of the Canadian Government in the
matter, and to endeavour, without delay, to establish an
effective postal Communication with British Columbia.
indicated
by the proposal of Mr Stamp, offered the best and earliest
means of Establishing the desired communication—and that the
question involved in the offer of the North Western Naviagation
and Railway Company of Canada was one which more immediately
concerned Colonial Interests, and could not be treated as a
mere postal arrangement—thought it desirable to postpone the
consideration of the latter proposal, until they had ascertained
the wishes 
and feelings of the Canadian Government in the
matter, and to endeavour, without delay, to establish an
effective postal Communication with British Columbia.
They have accordingly taken steps for procuring tenders
for this purpose.
Before, however, My Lords issue final instructions for
this purpose, they would be glad to hear the views which Sir E.B. Lytton
entertains on the subject: because, although My Lords
cannot but see great difficulties in the 
way of assisting, in
the manner asked for, such a scheme as that which this Company
brings forward, yet, looking to it's undoubted importance, to
Imperial not less than Colonial interests, My Lords
would regret extremely to take any step which would have
the effect of putting an end to it, without the most mature
consideration.
way of assisting, in
the manner asked for, such a scheme as that which this Company
brings forward, yet, looking to it's undoubted importance, to
Imperial not less than Colonial interests, My Lords
would regret extremely to take any step which would have
the effect of putting an end to it, without the most mature
consideration.
Minutes by CO staff
Mr Merivale
Although it may be thought proper that this Country should foster and help the new Colony of B. Columbia through the early struggles of its existence I am not entirely convinced that to subsidize this North West Navigation & Railway Canada Company, or its rival Mr Stamp, for the maintenance of postal communication between Gt Britain & B. Columbia wd be the best mode of spending money
upon it. As Lord Colchester
tells us in his Letter of the 8 March/3308/59 that the Letters sent
from the U. Kingdom are very few (in 2884 his
Lordship says that on one occasion they amounted to no more
than 56) forbidding therefore any prospect of a revenue
from that source, and as the Governor of the Colony in his
desph of the 5 Novr/58/535 informs us that he has not
much reason to complain of the existing fortnightly mail
communication it does not appear requisite for the Imperial
Govt to rush hastily into an agreement to subsidize this
Company or any body else. It would doubtless be an immense
gain to this Company to get an annual grant of money from
England to carry its proposed scheme of a post-route to
B. Columbia viâ the Red River and Saskatchewan Country into
effect; and, it wd be serviceable to Mankind perhaps
that that Country should be easily penetrated & opened up,
for the post might be succeeded by many enterprizing people
desirous of settling in it; but so far as Imperial interests,
or B. Columbia interests are at present concerned I can but
think that they might both well wait some years for a subsidy.
If a war should break out with the U. States interrupting our
maritime communication 
with V.C. Isld & B. Columbia we have
the consolation of knowing that we can still fall back upon
this overland route—so that in point of fact we are not
absolutely dependent on the Panama route & the American Pacific
Steamers. The immediate ansr, however, to this Letter seems
to me to be that Sir E. Lytton can offer no other observations
in reference to the object of this Co than those made by him
on the 7 of last March, and that he would dissuade the Treasury
from returning any decisive reply to the Co until it is known
what the Govt of Canada—to whom Sir E.L. made a reference
on the 13th April—shall say upon the subject; and that,
for the same reason, it would be well to defer taking any more
steps for obtaining tenders for the service viâ San Francisco;
for if the report from Canada were favorable to the Saskatchewan
route it might supersede the necessity for forming engagements
by the Pacific route.
Although it may be thought proper that this Country should foster and help the new Colony of B. Columbia through the early struggles of its existence I am not entirely convinced that to subsidize this North West Navigation & Railway Canada Company, or its rival Mr Stamp, for the maintenance of postal communication between Gt Britain & B. Columbia wd be the best mode of spending money
upon it. As Lord Colchester
tells us in his Letter of the 8 March/3308/59 that the Letters sent
from the U. Kingdom are very few (in 2884 his
Lordship says that on one occasion they amounted to no more
than 56) forbidding therefore any prospect of a revenue
from that source, and as the Governor of the Colony in his
desph of the 5 Novr/58/535 informs us that he has not
much reason to complain of the existing fortnightly mail
communication it does not appear requisite for the Imperial
Govt to rush hastily into an agreement to subsidize this
Company or any body else. It would doubtless be an immense
gain to this Company to get an annual grant of money from
England to carry its proposed scheme of a post-route to
B. Columbia viâ the Red River and Saskatchewan Country into
effect; and, it wd be serviceable to Mankind perhaps
that that Country should be easily penetrated & opened up,
for the post might be succeeded by many enterprizing people
desirous of settling in it; but so far as Imperial interests,
or B. Columbia interests are at present concerned I can but
think that they might both well wait some years for a subsidy.
If a war should break out with the U. States interrupting our
maritime communication 
with V.C. Isld & B. Columbia we have
the consolation of knowing that we can still fall back upon
this overland route—so that in point of fact we are not
absolutely dependent on the Panama route & the American Pacific
Steamers. The immediate ansr, however, to this Letter seems
to me to be that Sir E. Lytton can offer no other observations
in reference to the object of this Co than those made by him
on the 7 of last March, and that he would dissuade the Treasury
from returning any decisive reply to the Co until it is known
what the Govt of Canada—to whom Sir E.L. made a reference
on the 13th April—shall say upon the subject; and that,
for the same reason, it would be well to defer taking any more
steps for obtaining tenders for the service viâ San Francisco;
for if the report from Canada were favorable to the Saskatchewan
route it might supersede the necessity for forming engagements
by the Pacific route.
ABd
6 June
P.S. Perhaps we had better write to Sir E. Head to beg an
early ansr.
Documents enclosed with the main document (not transcribed)
Robert Benson and Company to Chancellor of the Exchequer,
10 May 1859,
requesting an interview to explain the company's proposition to
establish a postal service across British North America.
Minutes by CO staff
Lord Carnarvon
Mr Blackwood is so familiar with this correspondence & so accurate that I hardly venture to differ from him, but as far as I collect, we have done nothing but send the correspondence to Sir E. Head "for information"—and as his Parliament is not sitting, it is not at all likely that his very cautious Ministers will undertake any expense for the Saskatchewan line. It seems to me to be a question for ourselves only, & is itself a simple one. No one can suppose the Saskatchewan line can pay, for years to come. The San Francisco line may pay, in a moderate way, very soon & is the most convenient for the Colony. Is it worth while to subsidize the former as a political measure? That seems to
me the whole question.
I am not myself much in favor of such subsidies.
Mr Blackwood is so familiar with this correspondence & so accurate that I hardly venture to differ from him, but as far as I collect, we have done nothing but send the correspondence to Sir E. Head "for information"—and as his Parliament is not sitting, it is not at all likely that his very cautious Ministers will undertake any expense for the Saskatchewan line. It seems to me to be a question for ourselves only, & is itself a simple one. No one can suppose the Saskatchewan line can pay, for years to come. The San Francisco line may pay, in a moderate way, very soon & is the most convenient for the Colony. Is it worth while to subsidize the former as a political measure? That seems to
me the whole question.
I am not myself much in favor of such subsidies.
HM
June 7
I think on the whole that the best answer will be that in
the opinion of the Sec. of State a line of communication
across the continent of B.N. America to connect Canada with
B. Columbia & the Pacific—such as he understands to be proposed
by the N.W. Navigation & R. Co.—wd, if practicable,
be attended with great political advantages & wd probably
go far to facilitate the erection of colonies, the development
of natural resources & the consolidation of B.N. America as
a part of the Empire. That 
the question of subsidy & its
amount depends upon the importance wh politically is
attached to the carrying out of such a scheme. That on the
other hand the establishment of communications by sea with S. Francisco, though doubtless valuable to the Colony is far
less important in a political point of view as in all
probability before long the Colony will be in a position to
establish for itself, under the ordinary operations of Trade,
such a Line & to defray the greater part at all events of the
attendant expenses.
the question of subsidy & its
amount depends upon the importance wh politically is
attached to the carrying out of such a scheme. That on the
other hand the establishment of communications by sea with S. Francisco, though doubtless valuable to the Colony is far
less important in a political point of view as in all
probability before long the Colony will be in a position to
establish for itself, under the ordinary operations of Trade,
such a Line & to defray the greater part at all events of the
attendant expenses.
That Sir E. Lytton wd therefore 
recommend to the
Lds Commrs the consideration whether it will not be
advisable that the contract, if any, which may be concluded
with Mr Stamp sd be temporary so that at the period
when the communication across the continent is opened, the
Govt may be free to subsidize that line exclusively if
such subsidy is decided upon.
recommend to the
Lds Commrs the consideration whether it will not be
advisable that the contract, if any, which may be concluded
with Mr Stamp sd be temporary so that at the period
when the communication across the continent is opened, the
Govt may be free to subsidize that line exclusively if
such subsidy is decided upon.
C
June 9
Lord Carnarvon
These are drafts on the North West transit. You will be the best judge whether or not to pass them under existing circumstances.
These are drafts on the North West transit. You will be the best judge whether or not to pass them under existing circumstances.
TFE
14 June
I think that as these are in accordance with my min. of the 9th
June & as delay is inconvenient to the arrangements on hand at the
Treasury the drafts may be proceeded 
with: but the subject will require
an early consideration by the new Sec. of State.
with: but the subject will require
an early consideration by the new Sec. of State.
I think however that the desp. to Sir E. Head ought not
to go: as it's effect wd be to pledge the Govt to
a certain degree.
C
June 15
