Adverting to my despatch N
o 30 of the 
14th Ultimo
               and to Your Grace's despatch N
o 14 of the 
12th March 1863
               I have the honor to forward herewith a Statement shewing the
application
               application to the purposes of roads of the proceeds of the
               £50,000 Loan of 
1862.
               
               2. With respect to the arrangements with the Contractors
               for the roads, under which the guarantee of the local Government
               was given for the sums advanced by the Bank of 
British Columbia,
               I beg to report that the sums so guaranteed are treated, as to
security
               security, precisely as Government Cash Advances, all liability
               in respect thereof being charged on the Tolls, three fourths
               of which are received by the Government untill both principal
               and interest of all sums advanced be paid.