Hamilton to Rogers (Permanent Under-Secretary)
Treasury Chambers
7 January 1861
With reference to
Mr Elliots letter of the
27th
ult submitting a proposal of the Governor of
British Columbia
for the negotiation in this country of a Loan of £50,000 for
the purpose of completing the construction of Roads to the
newly discovered Gold diggings on the Southern Frontier of
the Colony; I am directed by the Lords Commissioners of Her
Majestys Treasury, to acquaint you, for the information of the
Duke of Newcastle, that Their Lordships, having had this proposal under Their consideration, are fully
prepared to appreciate
the importance of an early development of the the Resources of
the Colony,
by by the Construction of Roads, and They would be unwilling to throw any impediment
in the way of the undertaking;
but They would remind His Grace that there are several important
considerations to be dealt with, before the proposal of a Loan
can be finally adopted.
Their Lordships would observe that They have not, up to the
present time, received any account of the Revenue and Expenditure
of
British Columbia, since its first establishment as a Crown
Colony.
I have called attention to this fact several times.
Nor have They received the accounts, that have been
called for, of the appropriation of the sums, that have been
drawn from time to time, by Bills upon the
Paymaster Paymaster General, for the service of the Colony;
Written for 5 May and 25 Oct.
which might enable Them to adjust
the advances made from the Treasury Chest account, a question
which formed the subject of the correspondence noted in the margin;
Treasury to Col. Office, (6434) March 1860.
Treasury to Col. Office, (4174) 5th April 1860.
Col. Office to Treasury, (7717) 7th May 1860.
Until They have before Them some further information in regard
to the general Financial condition of the Colony, My Lords are
unable to form an opinion, how far They would be justified in
assenting to the present proposal of The Governor.
It will be incumbent on the Governor to shew clearly, that
the
local local Revenue is able to meet the Charge for the Loan, together
with all other legitimate Colonial Charges; with the exception of
The Colonial pay of the Royal Engineers, which may for the present,
under the circumstances of the newness of the settlement, be borne
by the Imperial Government. It will also be necessary, before
any steps can be taken for raising a Loan in this Country, that
some adequate provisions should be made by Local Enactment, for
the payment of the Interest, and for the Redemption of the
Principal of such Loan; as any uncertainty on these points might
cause considerable
difficulty difficulty in raising the Money in the English
Money Market.
In the event of the Governor's furnishing satisfactory information
as to the Financial condition of the Colony, together with a
complete statement of the expenditure of the sums drawn from this
country, and upon the passing of an Act, or Ordinance, providing
for the raising of the money required, on the security of part,
or the whole, of the Revenue of the Colony, Their Lordships will
be prepared to entertain the proposal, and They would suggest
for the consideration
of His Grace, that the negotiation of
such loan might be most conveniently effected eventually, through
the Agents General for Crown Colonies.
Their Lordships approve of the instructions which His Grace
proposes to give to
Governor Douglas in regard to the Funds
already raised by him on the security of Colonial Bonds, and
in regard to the necessity of obtaining the sanction of Her
Majesty's Government for raising money on the security of
Colonial Revenue.
Before concluding this communication Their
Lordships would point out, what appears to Them to be an
oversight in the statement contained in the 2
nd Paragraph
of
Mr Elliot's letter, in regard to the pay of the
detachment of Royal Engineers, being the "only" charge upon
the Imperial Treasury for
British Columbia; and that all
other Expenses are provided for out of the revenue of the Colony.
A reference to the Estimate for this Colony, for the year
1860/1 shews, that, apart from the Salary of the Governor,
provision is made
for for the Salary of the Commissioner of Lands,
and for the Colonial pay of the Royal Engineers, who are, so
far as Their Lordships are aware, engaged in a civil, rather
than a Military, capacity for the service of the Colony; their
Military or Regimental pay still chargeable on the Army.
Minutes by CO staff
Sir F. Rogers
Assuming that the views expressed in this Letter coincide
with those entertained by the
Duke of Newcastle in reference
to the question of a Loan to
B. Columbia it will be best,
I think, to frame a
desph to the Governor upon this
Letter, and send him copy of our L
r to the Treasury.
And perhaps His Grace
wd suffer us to introduce some remark upon the almost complete ignorance of the financial
affairs of
B. Columbia in which we are kept notwithstanding
that this Office has, on 2 distinct occasions, if not more,
ordered the
Govt to keep the S. of S. well informed thereon.
There is a Treasurer, specially for
B. Columbia,
who, if he had attended to his own business might
without any great labor, have supplied the information
of which the
Govr is deficient.
Mr Elliot
I think this matter will be safer in your hands than in mine.
Mr Fortescue
This is a subject on which you bestowed much attention.
I do not myself see why our letter to the Treasury should not
be sent out, as well as their answer to us. The particular
to which they allude as being not quite accurate is one in
which you altered the draft that I had proposed. I agree
with
Mr Blackwood that the neglect to send home good
financial returns is a fair subject of blame, such blame
being chiefly due to
Capt. Gossett, the Treasurer, and not
to the Governor, but the requisite admonition on this subject
will be given still more naturally on another despatch which
I today send you in circulation and therefore I should
think it better not to mix up so important a question
as that of the loan with the necessary exhortations
to the Officals on the discharge of their regular duties.
See 911.
The statement of our letter to the Ty, as altered by me,
was certainly rather too favorable to the Colony, but still
the R. Engineers were sent in lieu of other Troops.
I have passed a draft to the Govr reproving the
great negligence evinced in not forwarding the
Financial Accounts. It only remains therefore to
instruct him in the matter of the Loan in accordance with
the Treasury letter.
In looking at a former Minute I see I commented on
the appointment of a Person as "Treasurer". I find
Captn
Gossett is Treasurer of
B.C. It must have been
Vancouvers Island to which
Mr Gordon (the Person I referred to)
was gazetted.