No. 50
               
            
            
               22 August 1861
               
            
            
               My departure for the interior of 
British Columbia shortly after the receipt of your Despatch N
o 67 of the 
24th
                  February last, and the many matters I have had pressing upon
               my attention since my return, will, I trust, be accepted as
               my apology for
not
 not earlier affording the information required
               in respect to the Accounts of the Colony of 
British Columbia.
               
               2.  I gather from the tenor of the Despatch that Your
               Grace considers inattention has been exhibited to established
               Rules, and to previous Despatches upon the subject of the
               periodical transmissions of Colonial Returns and Accounts.  I
               cannot but express my deep regret that such should be considered
               to be the case, and my hope that hereafter it will be found
               that all Returns and Accounts will be rendered
with
 with the utmost
               punctuality.  I am glad however to think that the receipt of
               my Despatches N
o 7 of the
 26th January, N
o 12 of the 
7th
                  February, and N
o 18 of the 
19th February, will have afforded
               to Your Grace within a short time after the date of your Despatch,
               the information that was the more immediately wanted for the
               furtherance of the interests of the Colony, and will have evinced
               that I was not altogether unmindful of established regulations;
               and I have now the satisfaction of acquainting Your Grace that
               the entire Accounts,
both
 both for the year 
1859 and for 
1860, were
               forwarded to the Commissioners of Audit on the 
15th of last
               month, after having undergone a thorough Audit in the Colony,
               and been ascertained to be in a very satisfactory condition,
               as will be seen from the enclosed copy of a report upon their
               state which I called for from the Auditor at the time of the
               receipt of Your Grace's Despatch, knowing the Accounts to be
               then in his hands.
               
               3.  With respect to the delay that has undoubtedly occurred,
               I feel assured Your Grace will not
overlook
 overlook the great difficulties
               with which we have had to contend in the organization of Departments
               in 
British Columbia; a Colony suddenly called into existence under
               peculiar and unforeseen circumstances; a Country previously
               unsettled, and unoccupied, and far removed from the parent State
               from whence supplies could be drawn suitable to requirements.  To
               find men fitted for the many offices it was absolutely necessary
               to create for the peace, order, and good government of the Country,
               has from the first been to me a source of harrassing anxiety,
and
 and
               although men have been found capable of discharging the more
               important duties of Assistant Gold Commissioners and Justices of
               the Peace with perhaps even more than ordinary discretion and
               firmness, yet it can scarcely be expected at once to realize
               in such men the qualities of trained Accountants, enabling them
               to keep with correctness and punctuality, in addition to the
               Accounts pertinent to their Department, the elaborate Accounts
               incident to a Sub-Treasurer, or District Collector, all of which
               it has been imperative that they should attempt to do in order
               that the System of Account
established
 established for 
British Columbia
               should be carried out.  That failure should arise at first, that
               greatly increased labour should fall upon the head Offices, and
               that delays should in consequence occur, is no more than a
               natural result.  Such has been the case in 
British Columbia, and
               to attempt to overcome these drawbacks, and to render the entire
               accounts of the Colony in the first year of its existence in a
               shape closely approximate to the system we were directed to adopt,
               must I principally attribute the delay which has arisen in
               forwarding any Accounts at all.
               
               4.  With regard to the
Book
 Book of Colonial Rules and Regulations,
               I have but one Copy;
               
               
               
                  
                     Send him some more copies.
                     
                  
                
               
               I have, however, since the receipt of Your
               Grace's Despatch communicated to the Treasurer the paragraphs
               to which you draw my attention respecting the Special Returns
               required.  I will take care that in future these Returns are
               punctually forwarded, but I cannot now, under these circumstances,
               charge the Treasurer with any remissness of compliance with those
               rules, and I have not, consequently, called upon him for the
               explanation which Your Grace required, if the omission were
               justly attributable to him.  I
would
 would ask Your Grace to cause
               three Copies of the Book of Regulations and Two Copies of
               "Instructions to Governors of Colonies," respecting Accounts, to
               be furnished to me by the first suitable opportunity, in order
               that hereafter inconvenience may be avoided and the strictest
               attention be given to the requirements therein contained.
               
               5.  I cannot close this Despatch without observing that the
               system of Accounts established for 
British Columbia, which is
               similar to that pursued in Ceylon, does not appear to be suitable
               in its entirety to a Colony so small and so expensive as 
British Columbia.  In Ceylon probably three or four
excellent
 excellent Clerks
               and good Accountants (Natives) can be obtained for a less rate
               of Salary than one young, inexperienced and untrained Clerk can
               command in 
British Columbia.  The multiplicity of Documents, the
               consumption of paper, the cost of printing Forms, the expense of
               postage, and the amount of clerical labor arising out of this
               System appear greatly incongruous to the circumstances of the
               Revenue and Population of the Colony.  Some time back I called
               upon the Treasurer to report whether he was able to suggest
               some modification of the system that would have the effect of
               lessening labor and expense, but he did not seem inclined to
               propose
any
 any alterations, greatly approving of the system as
               a whole.  I notice however that the Auditor does consider that
               a more simple and less expensive system might be substituted;
               and I should be glad if Her Majesty's Government would permit
               me to dispense with some of the More elaborate details, taking
               care meanwhile that no safeguard or really efficient check be withdrawn.
               
               
               I have the honor to be
               My Lord Duke,
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  Mr Elliot
                     Send copy of the whole correspondence to the Treasury
                     enquiring whether the Lords C
rs consider it desirable to
                     modify the system of Accounts for 
B. Columbia, as suggested by
                     the 
Govr, & if so to furnish this 
Dt with such a system
                     as they shall think more suitable & likely to attain the Accounts.
                     
 
                  
                  
                     N.B. It seems to me strange that the Treasurer with four
                     Clerks 
shd not be able to keep and make out the accounts of
                     a Colony whose income & exp
re is between £50 & £60,000
                     a year.  And I think that the Governor ought to have fulfilled
                     the 
Duke of Newcastle's instruction of calling upon the Treasurer
                     for an explanation of the delay of which we complain.
                     
                     In saying that the Treasurer has 4 Clerks I mean that he
                     has that number now.  I do not know what staff he had in 59/60.
                     
                  
                  
                   
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     Auditor General to Colonial Secretary, 
10 May 1861, explaining the dates he received information from the treasurer necessary to
                     carry out the audit and offering further explanation for the delay in forwarding the
                     
1859 accounts.
                     
                     
 
                   
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft, 
Elliot to 
G.A. Hamilton, Treasury, 
17 October 1861,
                     forwarding copy of the despatch and asking whether a modification of the
                     accounting system could be effected.