No. 7, Financial
               
            
            
               26 January 1861
               
            
            
               I have much pleasure in transmitting herewith a synopsis
               of the Revenue and Expenditure of the Colony of 
British Columbia
               for the year ending
on
 on the 
31st day of December 1860, which I have caused to be compiled in the Audit Office from the
               Public Accounts for the purpose of laying approximately before
               Your Grace at the earliest moment such information as may be
               desirable, in anticipation of the formal Estimates which are
               in course of preparation, and will be forwarded by the next Mail.
               
               Although the 
DecemberReturns
 Returns and some of the back accounts of the distant out Stations have not been received
               and are merely estimated in this account, yet it exhibits very closely
               the actual Revenue and Expenditure, and may, for all practical
               purposes, be assumed as a true statement of the financial
               position of the Colony.
               
               The principal item of Revenue in that account
will
 will be
               found under the head of Customs, classified as follows, viz
t Duties on Imports £29,702—Harbour and Tonnage Dues, Head Money, the Roads Tolls at
               
Yale and 
Douglas for the month of
               
November, and other minor receipts, collectively £5817,
               making in all the sum of £35.519.
               
               The increase of Revenue from duties on Imports is about 70 per cent, as compared with
               the Revenue
derived
 derived from the same source in 
1859;  and it may be fairly assumed, considering the increase of population and the progressive
               state of the Colony, that the Customs Returns
               of 
1861 will be in excess of those of 
1860.
               
               The amount of land Sales for the Year 
1860, is £10962,
               which is less by £7915. than the sales of 
1859;  a difference explained by the large sums received
for
 for building lots at 
New Westminster and other Towns where land was required for commercial purposes, and sold at high
               prices.  A larger quantity of Country Land has been sold in 
1860, but from the comparatively low price, did not yield a proportionate revenue.
               
               There is no prospect of a material increase in Land Sales
               for 
1861, except
through
 through the effect of emigration from Canada and Great Britain, as there is a very
               small farming population in the Colony;  the working classes being chiefly miners,
               accustomed to excitement, fond of adventure, and entertaining
               generally a thorough contempt for the quiet pursuits of life.
               
               The minor items of Revenue in the synopsis
will
 will probably
               not vary much in 
1861 from the sums in the present Return; and cannot, in any case, be expected greatly
               to affect the amount of the general revenue.
               
               On the other side of the account is the sum of £16,736
               expended for "Establishments"—the most rigid economy having
               been exercised in this department, the amount
is
 is not susceptible
               of reduction—but might with advantage to the public service be
               increased by some very necessary additions to the emoluments
               of the principal executive officers of the Colony;  their
               present Salaries being not only inadequate to the relative
               importance and responsibility of the offices they hold, but
               literally insufficient to
maintain
 maintain them in a respectable position; a subject which I will take the liberty
               of bringing
               before Your Grace in a separate Despatch.
               
               The outlay on Works and Buildings amounts to the sum of
               £3513, and in the formation of Roads and Bridges there has
               been expended the sum of £18,935; a profitable investment
               for the Colony, as is apparent from
its
 its increasing revenue,
               which will no doubt keep pace with the improvement of its
               internal communications and the facilities afforded to trade
               and commerce. A detail of those Works is given in Statement
               N
o 2—and the outlay on each is approximately shewn.
               
               The other items of disbursement, being separately of small amount, need no comment.
               
            
            
               The entire expenditure amounting to £44,124:
               has
been
 been defrayed out of the current revenue, and there remains a balance of £8886 in
               the Treasury, which will be sufficient
               to meet the outstanding liabilities of the Colony for the
               unfinished Contracts of the Roads in progress.
               
 
            
            
               For the execution of these highly necessary works, we may,
               I believe, safely estimate that the sum of £25,000 can be
               provided out of the revenue of the Colony, without at all
               impairing its capacity to defray the whole Civil expenses of
               the Government.  Much more than that sum is however required to
               complete such extensive public works;  and I therefore addressed
               Your Grace on the subject of
a
 a Loan of £50,000 in my Despatch N
o 84 of the 
28th of August last.
               
               If that project can be carried out, we shall enter the
               field with larger means, and the Colony will sooner experience
               the impulse thereby given to trade and industry;  if on the
               contrary the Loan is not procurable, the extent of those
               undertakings will be regulated by the means actually at my disposal.
               
            I 
            
            
               I see no probability, short of an almost absolute abandonment
               of all the essential public works upon which we are engaged, of
               our being able, this year to maintain out of the Colonial Revenue,
               the Detachment of Royal Engineers stationed here;  and I rely
               with confidence upon the Mother Country again affording her
               assistance in our difficulties, by providing for them as
               heretofore, out
of
 of Imperial Funds, so that I may be free to
               apply the whole surplus revenue of the Colony, after paying all
               its own Governmental expenses, to the opening of Roads and other
               public works indispensable to its development.
               
               I have the honor to be
               My Lord Duke,
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
               
               
               
                  
                  
                  
                  
                     Probably it will be acknowledged, with an intimation to that effect.
                     
                  
                  
                  
                   
                
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     Note in file:  "C.O. 60 Vol. 10, Folio 31R,
                     being too large will be photographed later."
                     
                   
                  
                  
                     "Synopsis of Revenue and Expenditure for Year ending 
31
                        December 1860," signed by 
W.A.G. Young, Acting Colonial Secretary and Acting Auditor, 
15 July 1861.
                     
                     
 
            
            
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