No. 104
22 February 1862
I have the honor to acknowledge the receipt of your despatch No. 75 of the 30th of November enclosing an Estimate of the Expenditure necessary for the maintenance of the Detachment of Royal Engineers serving in the Colony during the year 1862-63, and expressing your hope that the whole of this Expenditure amounting to £17,900 maybeManuscript image be provided for from Imperial funds.
It is not possible that I should comply with your request: nor can I sanction a renewed application to Parliament for so large a sum as that which has hitherto been voted on this account. The entire cost both Imperial and Colonial of the Royal Engineers amounts according to your Estimate to £22,000 and of this sum Her Majesty's Government have decided that one moiety of £11000 mustbeManuscript image be defrayed from the Colonial Revenue of the remaining moiety to be paid from Imperial Funds £3,800 are already borne on the Army Estimates for the Regimental pay of the Engineers, and there will therefore remain a sum of £7,200 to be provided by a Parliamentary grant. This sum in addition to the salary of the Governor will constitute the estimate to be submitted to Parliament for British Columbia for the year 1862-1863Manuscript image1863; and you will limit accordingly the Bills to be drawn by you on the Imperial Treasury.
With respect however to the Salary of the Governor it is not a charge which ought longer to continue to be borne by Imperial funds, and I have to instruct you to take measures for making provision for that purpose from the Colonial Revenues, after the close of the ensuing financial year.
I understand that there is reason at the FinancialDepartmentsManuscript image Departments of the government to believe that notwithstanding the instructions which have been conveyed to you, you have continued to draw upon the Imperial Government not merely for the Colonial pay of the Engineers, but also for the miscellaneous expenditure amounting to about £6000 per annum. It is necessary that I should point out to you the great irregularity of such a course, and it is mydutyManuscript image duty to inform you that if you draw Bills upon the Treasury in disregard of the instructions which you receive from this Department, you must be prepared to find yourself held personally responsible for the amount.
I have the honor to be
Sir
Your obedient Servant
Newcastle
Manuscript image P.S.

Since writing the above I have received a further statement from the Treasury from which it appears that there is a sum of £26,975 unprovided for in excess of the sums voted by Parliament on account of British Columbia during the years 1859-60, 1860-61 and 1861-62, exclusive of the sum of £11,000 provided for 1861-62 for Colonial Pay and of any Bills drawn during 1861 against that sum,asManuscript image as well as exclusive of the £6,900 due by the Colony on account of the Silver Coins sent out in 1860.

I shall Address you again by the next opportunity upon the very serious state of things which is thus disclosed.
Pelham-Clinton, 5th Duke of Newcastle Henry Pelham Fiennes to Douglas, Sir James 22 February 1862, NAC :, 40. The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.0, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/B627104.html.

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