No. 12, Financial
               
            
            
               7 February 1861
               
            
            
               With reference to my despatch No 7 of the 
26th Ultimo
               I have now the honor to forward to your Grace herewith the
               detailed Estimates of the Revenue and Expenditure
of
 of the Colony
               of 
British Columbia for the year 
1861, prepared in as complete and formal a manner as the present infant state of the Colony
               will admit.
               
               2. My despatch above alluded to contains most of the
               explanatory remarks pertinent to these Estimates, and it is
               therefore unnecessary for me to encumber this despatch with a
               repetition, but there is one point in
particular
 particular which I will
               now take the liberty of bringing to your Grace's attention.
               
               3.  In previous correspondence I have asked your Grace for
               a reconsideration of the Salaries fixed by Her Majesty's
               Government for the principal Officers of this Government, and
               your Grace although at that time unable to sanction any increase,
               has kindly held out the hope that when I was able to
furnish
 furnish
               more definite information as to the Revenue of the Colony, the
               subject would again be taken up.  The information I have
               conveyed in my despatch of the 
26th January will exhibit to
               your Grace the very satisfactory condition in which the Revenue
               of the Colony at present stands, and will shew that not only
               has the Colony not applied one sixpence of Imperial Funds
               towards liquidating
the
 the Civil expenditure within the Colony,
               but that she has, in addition to defraying from the first every
               farthing of such expenditure, been enabled in 
1860 to apply the sum of Thirty six thousand pounds (£36,000)
               towards public works indispensable 
               
                  Notice—reckoning no part of the cost of the R. Engineers as civil
                     expenditure.
                 to her progress and development;  and thus to make an investment which has undoubtedly
               proportionately increased her Revenue,
and
 and materially promoted her advancement and stability.
               
               4.  The character of the Colony as a gold producing Country
               is now so far established that there is but little fear of any
               decrease in the present population;  on the contrary the
               population would seem to be steadily increasing just in
               proportion as we can open up roads, and, reducing
thereby
 thereby
               the cost of provisions, make the less profitable diggings
               remunerative, and day by day is the work of advancement slowly
               but no less surely progressing.
               
               5.  I think therefore that your Grace need be under no
               apprehension of the Mother Country being called upon to defray
               any part of the Civil Expenditure of the Colony, and that the
               time has come when
I
 I may confidently ask that the salaries
               which I have inserted in the Estimates for the superior Civil
               Officers may be confirmed.
               
               6.  The entire Civil Expenditure of the Colony may perhaps
               appear large to your Grace, but your Grace is well aware of
               the vast extent of Territory included within the Colony, and
               of the necessity, for the preservation of law and order, and
               for the interests of the Revenue,
to
 to establish a Government
               Agent at every spot where the miners may congregate and form
               a settlement;  and to prove not only the expediency but the
               correctness of this policy, I would merely advert to the
               remarkable tranquillity, and almost total absence of crime
               within the Colony, and I would further observe that these
               outstations are not only in nearly every case self supporting,
               but in some
cases
 cases add a considerable amount to the general
               Revenue.  The salaries of some of the Magistrates at the distant
               outstations may appear large in comparison with the salaries
               asked for the principal Officers of the Government, but in
               both cases I would assure your Grace that no more has been
               inserted than is sufficient to procure a bare subsistence, and
               that the
salaries
 salaries now placed on the Estimates for the superior
               Civil Officers are not at all commensurate to their position,
               nor approximate to the salaries paid by the Mercantile
               Community;  for I am informed on good authority that the Actuary
               of the Bank established here, whose labours are insignificant
               as compared with those of the Treasurer, received a salary of
£2000
               £2000 per annum, while his two Clerks receive the salaries
               of £800 and £600 respectively, and that from £400 to £600
               per annum is the usual sum paid by Heads of Firms to their
               Clerks and Assistants.  Compare this with the present salaries
               of the Colonial Secretary, Treasurer, and Collector of Customs,
               Gentlemen of position, education,
and
 and ability, who by their
               very position and education are incapable of availing themselves
               of those advantages which their ability would secure to them.
               
               7.  
I trust your Grace will not think I am unduly pressing
                  this matter upon your attention, but I know many of the officers
                  cannot live upon their salaries, unless indeed, as some are
                  obliged to do, they havecourse recourse to the expedient of taking
                  their meals at a Restaurant and sleeping in their Office.
 recourse to the expedient of taking
                  their meals at a Restaurant and sleeping in their Office.  I
               have merely related these few facts for your Grace's information,
               for I feel satisfied it would be your desire as soon as the
               Colony can afford it to relieve the Officers of the Government
               from this embarrassing position.
               
               8.  With reference to the sum inserted in the
Estimates
 Estimates to
               be expended under the head of "Roads, Streets and Bridges", I
               trust I may in this early stage of the Colony be permitted to
               depart from customary rule, and be left free to expend upon the
               important public work of extending the communications of the
               country—all the Revenue that may become disposable.
               
               9.  The accounts of the Colony for 
1860 are in an almost
               complete state,
only
 only requiring certain distant district accounts
               to render them perfect, and they will I hope be forwarded to
               England within the prescribed period.  The accounts for 1859
               are also nearly complete but they have been delayed until now,
               in consequence of the difficulties attendant upon their entire
               reconstruction, and the references that were necessary in
               connection
with
 with the Military Expenditure, and other expenditures
               during the early stage of the Colony, and before a regularly
               organized system was established.
               
               10.  As bearing upon the subject of this despatch I take
               the opportunity of enclosing a Return of all the Appointments
               made by me to Offices in 
British Columbia up to the 
31stDecember December 1860
                  December 1860.
               
               I have the honor to be
               My Lord Duke,
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  Mr Fortescue
                     Annexed you will find a useful statement which has been
                     prepared for me in the Division upstairs, showing the exact
                     particulars of the Governor's recommendations and also the
                     remuneration of Offices of the same class in several other
                     Colonies.  The result is in my opinion to shew that the
                     Governor's recommendations are moderate and ought to be
                     acceded to.  If this view be adopted it could be requisite
                     to apply for
the
 the concurrence of the Treasury, expressing
                     to them an opinion that the time has come when the principal
                     Officers in 
British Columbia ought to receive an accession
                     to their incomes and that the amounts proposed by the
                     Governor appear to the Secretary of State to be moderate,
                     both with reference to the scale of remuneration in other
                     Colonies and to the high cost of living in a Country
                     situated as 
British Columbia.
                     
 
                  
                  
                   
            
            
               Documents enclosed with the main document (not transcribed)
               
               
                
                  
                  
                     List of two enclcosures; however, the enclosures to not appear in file.
                     
                     
                   
                  
                  
                     "Statement shewing the present Salary of the Principal Civil
                     Officers in 
British Columbia, and the increase of Salary Recommended by the Governor."
                     
 
                  
                  
                     "Statement shewing the Salaries of the undermention Officers in Canada, South Australia,
                     Tasmania and Natal."
                     
                     
                   
            
            
            
               Other documents included in the file
               
               
                
            
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     Draft, 
Rogers to 
Hamilton, 
12 June 1861, agreeing to their proposed
                     amendment to the salary for the combined office of colonial secretary
                     and auditor.
                     
 
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft reply, 
Newcastle to 
Douglas, No. 83, 
7 June 1861, which approves of 
Douglas's previous financial reports, and of increased salaries for certain colonial offices.