No. 25
               
            
            
               13 May 1862
               
            
            
               I have to acknowledge the receipt of Your Grace's Despatch
               N
o 105 of the 
27th February last, and I regret to observe
               that Your Grace disapproves of the form in which the Estimates
               for 
British Columbia for the
year
 year 
1862 have been transmitted,
               inasmuch as while the Salaries comprised in these estimates are
               exhibited in almost superfluous detail, those heads of
               expenditure which most demand scrutiny and deserve explanation
               are merely stated in a single large sum, such as Thirty one
               thousand seven hundred and forty nine pounds for roads, and
               Seven thousand
five
 five hundred pounds for Works.  Your Grace also
               alludes to evidence of a disposition, exhibited by the annual
               estimates, continually to augment the Civil expenditure so as
               to equal or even exceed the growing revenue, and lastly Your
               Grace announces the decision of Her Majesty's Government to
               throw upon the Colony of 
British Columbiaa
 a portion of the
               Military expenditure for the year 
1862, amounting to the sum of
               Eleven thousand pounds, and instructs me to curtail some of the
               different services proposed in the Estimates so as to admit of
               paying this charge out of the Colonial Revenue.
               
               2. I have in explanation to submit that the sum of seven
thousand
               thousand five hundred pounds the proposed outlay on Works,
               comprises the cost of keeping in repair and erecting some
               additional public buildings wanted in the Colony, and for
               maintaining the Buoys which mark the channels leading into 
Fraser River.
               
               3.  These several objects are indicated in the Estimates
               with as much
precision
 precision as is possible in the case of works not
               actually commenced, and of which the cost is uncertain and
               necessarily dependent on the value of labour and material.
               
               I forward herewith a detailed summary of them taken from
               the Estimates, but should Your Grace desire any other form to be adopted,
               I will not
fail
 fail to give immediate effect to your instructions.
               
               4.  The subject of roads in 
British Columbia and the peculiarly
               difficult and inaccessible nature of the Country, which really gives
               to the opening and improvement of the inland thoroughfares a
               character of the highest importance, have so often been dwelt upon
               at length in my
despatches
 despatches to Her Majesty's Government, that in
               forwarding the formal Estimates of Revenue and Expenditure I did
               not consider Your Grace would desire that I should enter into any
               further recapitulation of those matters, than was contained in my
               Despatch enclosing them N
o 74 of 
30th November 1861. The whole
               sum disposable
for
 for that service was something short of thirty two
               thousand pounds which at most represents an insignificant item of
               the sum which must sooner or later be laid out in the formation of
               upwards of three hundred and fifty miles of road connecting 
Lillooet
               and 
Lytton with the Gold fields of 
Carribou.
               
 
            
            
               5.  The increase of the civil expenses of the Colony, I would
               beg to observe, is one of the inevitable effects resulting from
               the extension of population and discovery.
               
            
            
               Wherever men congregate in large bodies, instant and vigorous,
               measures must be taken for the prevention of crime, and for the
               protection of life
and
 and property, otherwise a state of license and
               misrule will be inaugurated which would be, at once disgraceful
               to a civilised community, and injurious to the honor and dignity
               of Her Majesty's Government.
               
               6.  I can assure Your Grace that no increase of the civil
               expenditure except the small proposed augmentation of the Salaries
of
               of a few of the subordinate officers not in the whole exceeding the
               sum of Six hundred pounds, has arisen from other causes than those
               I have just stated, neither fancy buildings nor ornamental works of
               any kind, nor even the Government House at 
New Westminster which I
               was authorized by the Estimates of 
1861 to erect, have been
               attempted; but the whole disposable
revenue
 revenue of the Colony has been
               rigidly applied to the paramount objects, of opening the thoroughfares
               and maintaining the peace and good Government of the Colony.
               
               7.  With respect to the large proportion of the Military expenses
               which are hereafter to be defrayed from the Colonial Revenue I think
it
               it altogether inadvisable to enforce the payment of that charge for
               the present year, as the works of interior improvement which are
               detailed in my Despatch of the 
15th April last marked Separate
               are now in rapid progress, and will absorb the disposable revenue
               of the Colony as fast as it comes into the Treasury; in fact it
               was
solely
 solely with the view of carrying on these works that I applied
               to Your Grace for authority to contract a loan to the extent of
               Eighty thousand pounds in England.
               
               8. I will not occupy Your Grace with a review of the reasons
               which induced me to undertake those works as they are very fully
               set forth in
my
 my (several) despatches commencing with that of the
               
24th October 1861 marked Separate and I am now, as the season
               advances, more than ever impressed with their value and importance
               to the Colony, for numbers of people are arriving, by every Steamer,
               from California Canada and England, and the rush towards the Gold
               Fields is incessant.
Steamers
 Steamers are running every day with freight
               and passengers from this place to 
New Westminster; the Customs
               receipts have for the last 4 weeks been doubled in amount; the
               inland duties will experience a corresponding impulse, and there
               is little doubt of a great increase in the annual revenue, if we
               can only succeed in retaining the
population
 population now arriving, and in keeping them from being driven from the Country by
               want and
               starvation, a calamity which will inevitably happen unless the
               appalling cost of inland transport to 
Carribou, now exceeding
               seven hundred dollars a ton, be greatly reduced; such reduction
               being the effect proposed by the works
works
 in progress which it is
               estimated will produce a saving of at least five hundred dollars
               on the ton, in the charges for the transport.
               
               9.  I have adopted these measures from the fullest conviction
               of their urgent necessity, and that they will materially aid in
               the development of the Country, add to the public
revenue
 revenue, render the Colony independent of extraneous aid, and redound to the honor
               and advantage of Her Majesty's Government.
               
               10. It is in fact impossible to retain a population in the
               Colony unless such improvements are made, and without population
               there can be neither wealth, revenue, nor progressive development.
               
 
            
            
               11. I submit as an impressive corollary to those views the
               following extract of a letter just received from 
Mr Elwyn, Gold
               Commissioner for the 
Carribou District, dated 
Lillooet, 
6th May
                  1862:
               
               
               The past severe winter tells against us more than I could
               ever have expected. About four hundred men have up to the
               present time left this place for 
Carribou; certainly a similar,
               in all probability a greater
number
 number have started from 
Lytton.
               Not one single pack train, has yet left either place (most
               luckily two or three trains are expected to leave 
Lytton tomorrow having got their loads out of boats from 
Yale) and those
               Miners who have started had with very few exceptions only
               sufficient provisions to take them up.  The long winter must
               have almost entirely exhausted the stock of provisions laid in
               last autumn,
from
 from the best information that I can obtain I
               believe that the road side houses between here and 
Williams
                  Lake could not muster five sacks of flour between them.  I
               am entirely at a loss to know what those men will do who have
               gone up, and greatly fear a rush back, though they will hold
               on almost to the verge of starvation on account of losing
               their claims.  Added to all this, there are between three and
four
               four hundred men at this point, only waiting to get a sack or
               two of flour per company to start.
               
               Even this much they can only get in driblets, and have to pay from 25 to 30 cents
               per lb. (last year 12 1/2 cents).
               
            
            
               Unless provisions are rushed up from below I can see nothing for it but a stampede
               down stream.
               
               
            
            
               12.  Whatever expenses Your Grace may have in contemplation
to
 to
               bring against the Colony should not, I submit, be brought forward
               and enforced at the very hour of its greatest need, and when it is
               maintaining an arduous struggle with difficulties altogether
               unprecedented, in the early history of Colonies.  It has, up to
               the present time, defrayed the whole of its own civil expenditure
               and has put the Imperial
Government
 Government to no expense whatever except for the Governors salary, and the pay and
               maintenance of the Troops, and is therefore entitled to some consideration.
               
               
                  
                     
                     This, I think, is true, and is the strong point in the case on
                     behalf of the Colony.
                     
                  
                
               
               The services of the Troops are, I admit, most useful to the
               Colony, but as the portion of those services devoted to civilian
               pursuits really amounts to no more than about the labour
of
 of eighty men for five months in the year, I conceive, they will be dearly
               purchased at the proposed charge of Eleven thousand pounds per annum.
               
               13. I have however no wish to moot that question at present,
               nor to dwell upon the value of the large and growing
trade
 trade of the Colony, which will more than re-imburse the Mother Country for the
               expenses of this small Military force.  All that I would propose to
               Your Grace, is not to enforce a charge which would so seriously
               embarrass me, and which by crippling my operations, would, at
               this epoch,
produce
 produce the most disastrous effects upon the Colony.
               
               I have the honor to be
               My Lord Duke
               Your Grace's most obedient
               Humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                     It will be very difficult to resist this Appeal from the
                     Governor for "more time." Assuming that his representations
                     are void of exaggeration, & that he is what he ought specially
                     to be, in the important post he occupies, worthy of credit I
                     think that his request ought to be complied with. It wd
                     be a serious reproach agt the Col. Office if we helped to
                     cripple this new Colony for the sake of a few thousand pounds,
                     about which there can be little doubt that we are sure of
                     eventual repayment if we choose to enforce our claim.
                     
                  
                  
                     I 
shd, however, order the Governor to stop building the proposed 
Govt house at 
New Westminster. The Governor does
                     not reside there, & the money will be more usefully applied in roads.
                     
                  
                  
                     See Minute attached to 6358.
                     
                  
                  
                  
                   
                
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     "Statement of proposed Expenditure on Works and Buildings, as given in the Estimates
                     for the year 
1862," signed by
                     
W.A.G. Young, 
9 May 1862.
                     
                     
 
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft, 
Elliot to 
Frederick Peel, Treasury, 
21 July 1862, forwarding
                     copies of two despatches and discussing in detail the disposition of
                     finances in the colony.