Colonial Despatches

I have the honor to lay before you Copy of a letter from the Agents General of Crown Colonies to the Colonial Secretary on the subject of the loan authorized under the Ordinance No. 7 of 10th March 1864. I amsorry sorry to say that previous to the receipt of this communication we had drawn against the proposed Loan for a further sum of thirty thousand pounds (£30,000). I imagined that your despatch No. 61 of 31st December 1864, contemplated our drawing, if necessary to the full amount.

2. Although the prospects of the Colony are now more favorable than they have been for some years, there seldomwas was a time when money was more wanted. It is absolutely necessary, if the Colony is to be maintained, that some improvement should be made in the communication with Cariboo, in order to enable its gold fields to compete with those of Oregon and California. The whole profits of the new discoveries on the Kootenay River will go to the United States if we do not provide access to them through English territory,and and unfortunately we entered the year with a considerable local debt, increased greatly by the Indian troubles of last summer.

3. The late Session of the Legislature has imposed considerable additional taxation and we look forward to a large increase of Revenue. Unfortunately a winter of unprecedented duration has kept all our communications closed, and salaries had to be paid, enormoussums sums laid out in the clearing away of snow, at a time when no traffic could bring duties to the Custom House or tolls to the roads. Now that the line of travel to Cariboo is open, the weekly receipts are very large, but it will be some months before we can make up for the losses of the winter. Even now the road to the Eastward towards the Kootenay and Columbia is still closed by snow andice ice in the Cascade Mountains in the rear of Hope. I confidently anticipate a much larger Revenue for this year than the Colony has yet produced, but the money is wanting for immediate exigencies.

4. I trust that you will be enabled to give such instructions to the Colonial Agents as may prevent embarrassment in regard to the last draft for thirty thousand pounds (£30,000). The Colony has had a hard struggle duringthe the last year with outstanding liabilities, Indian outrages, and a sole dependence on its own resources.

5. I may add that had we been permitted to make our own arrangements locally with the Bank of British Columbia, the whole of the Loan would, I understand, have been disposed of here on terms not unfavorable to the Colony.

6. Though the Estimatescontemplate contemplate a large expenditure for the year 1865, I must beg to state that I am only undertaking public works of absolute necessity. The increased number of situations as Constables likewise are only being filled up as circumstances require it.