Peel to Rogers (Permanent Under-Secretary)
               
            
            
               
               
                     Treasury Chambers
                     
                  
               23 October 1862
                
            
            
               I am directed by The Lords Commissioners of Her Majesty's
               Treasury to acquaint you, for the information of The 
Duke of
                  Newcastle, that They observe with regret the tone exhibited by
               the Gentlemen of the Assay 
Dt at 
New Westminster in 
British Columbia, in the correspondence enclosed in the Despatch
               of the
Governor
 Governor of that Colony, which accompanied 
Mr Elliot's
               letter of the 
22nd Ultimo, particularly as it will be seen
               by the observations of The Master of the Mint in his letter of
               the 
3 Inst, copy of which is forwarded herewith, that the terms
               of their engagement do not support their right to any increase of
               Salary beyond what they have already received.
               
 
            
            
               My Lords would have been

 disposed to have expressed, in the
               strongest terms, Their sense of the impropriety of the course
               taken and the language used by these Gentlemen, and which, as
               stated in 
Governor Douglas' letter of 
28 July, appeared to bear very much the complexion of an attempt upon their part to coerce
               the Government into a compliance with their demands at a moment
               when they believed their services to be indispensable.
Such
 Such a
               course and language on the part of any Servants of Her Majesty
               would not, under ordinary circumstances, be tolerated in the
               Public Service.
               
 
            
            
               Having regard, however, to the inexperience of these Gentlemen,
               and to the fact that their aid has been ultimately given to the
               Mintage operations, My Lords will leave to 
GovernorDouglas
 Douglas the
               decision as to the propriety of complying with 
Captain Gossett's
               recommendations for an increase of Salary to the several Members
               of the Assay Department in consideration of the additional
               Duties now devolving on them.
               
 
            
            
               Their Lordships think it right to re-call the attention of the
               Secretary of State to the former correspondence on the subject of
               the establishment of a Mint in 
BritishBritish
 Columbia, and more
               particularly to the grounds upon which My Lords were pleased to
               waive the objections which They entertained to the establishment
               of an Assay and Refinery Department, under Government Control,
               instead of leaving such work to private enterprise.
               
 
            
            
               The grounds upon which My Lords came to the conclusion that this
               might be permitted

 under the circumstances were:
               
               
 
            
            
               1st  That no private Establishment would command the
               confidence of the Miners.
               
            
            
               2nd  That the Government Offices would very soon become self
               supporting.
               
               
            
            
               It now appears that the Public has not to any great extent
               availed itself of the Government Assay Office, and, consequently,
               so far from its being self-supporting
that
 that a loss of upwards of
               £6000 has already accrued.
               
 
            
            
               There is no information contained in the Papers before this
               Board as to what has led to a result so different from what was
               anticipated, and Their Lordships request that a Return may be
               furnished showing what amount of Work has been performed in the
               Assay Office, month by month, since it came into
full
 full operation,
               the actual current cost of the Office up to the latest period, and
               the receipts, accompanied by explanations of the causes which
               have led to the apparent failure of the project, and the views
               of the Governor with regard to its prospects for the future.
               
 
            
            
               My Lords would also be glad to have the Governor's opinion
               as to retaining the office at 
New Westminster or removing
it
 it to 
Victoria.
               
 
            
            
               I am,
               Sir
               Your obedient Servant
               
F. Peel
               
                
            
            
            
            
               Minutes by CO staff
               
               
                  
                  Mr Elliot
                     The Treasury consider that Offices of a Mint or Assay
                     Establishment in a Crown Colony are under their control.
                     And if so they must have the deciding voice in matters
                     relating to their own Establishment.
                     
 
                  
                  
                     I presume that copies of these papers 
shd be sent to
                     
Gov. D. for his inf
n & guidance.
                     
 
                  
                  
                     It is perfectly true that amongst other considerations
                     we were induced to urge the establish
t of an
                     Assay Office in 
B.C. on

 the strong representations
                     of 
Capn Gosset, the Treasurer, that after the first
                     year the concern would be self supporting.  The reverse
                     has been the fact.  As 
Capn G. is now in England he
                     might be able to furnish some explanations.
                     
 
                  
                  
                   
               
               
                  
                  
                     I think that the best course will be to send out our
                     letter and the answer from the Treasury to the Governor
                     for his information and guidance, and to say that the
                     result, as His Grace understands it, is to leave it open
                     to the Governor to deal with the case according to his
                     discretion.  Request him to furnish the general
                     information called for by the Treasury.
                     
                  
                  
                   
               
               
                  
                  
                     And then request 
Captn Gosset to give any explanation
                     in his power.
                     
 
                  
                  
                  
                   
                
            
            
            
               Other documents included in the file
               
               
               
               
                  
                  
                     Draft, 
Elliot to 
W.D. Gosset, 
30 October 1862, concerning
                     the establishment of the assay office and asking for an explanation
                     of its failure to become self supporting. (For 
Gosset's reply, see
                     Correspondence.)
                     
 
                   
                
            
            
            
            
               Documents enclosed with the main document (not transcribed)
               
               
                  
                  
                     Thomas Graham, Royal Mint, to 
G.A. Hamilton, Treasury,
                     
3 October 1862, denying that he made promises to the staff of the
                     assay office in regard to position and salary.