Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Seymour, Governor Frederick to
Carnarvon, Earl 9 January 1867, CO 60:27, no. 1942, 33.
Abstract
Seymour, Governor Frederick to
Carnarvon, Earl 9 January 1867, CO 60:27, no. 1942, 33.
Despatch to London.
Minutes (6), Enclosures (untranscribed) (1), Other documents (1).
No. 17
9th January 1867
My Lord,
I have had the honor to receive your Lordship's despatch No. 17
of 30th October 1866 informing me of the circumstances under
which the Crown Agents had beencompelled
compelled to satisfy from funds
in their possession the claims for Interest and Sinking Fund
on the Loans of British Columbia to the amount of four thousand
one hundred and twenty five pounds (£4,125).
compelled to satisfy from funds
in their possession the claims for Interest and Sinking Fund
on the Loans of British Columbia to the amount of four thousand
one hundred and twenty five pounds (£4,125).
2. As the circumstances which imposed this obligation
upon the Crown Agents arose before my resumption of this Government,
I have called upon the Officer lately Administering the Government
for an explanation. ThisI
I have the honor to enclose.
I have the honor to enclose.
3. Your Lordship may depend upon the punctual remittance of
sufficient means to meet the claims of our London Creditors.
Minutes by CO staff
Mr Elliot
As the Manager of the Bank of B.C. did not fulfil his promise of communicating with the Directors in England Mr Birch was necessarily put into a wrong position. I should say that the Bank ought to be made acquainted with the neglect of their late Officer by way of explaining Mr Birch's proceeding. Govr Seymour promises to keep faith with London Creditors.
As the Manager of the Bank of B.C. did not fulfil his promise of communicating with the Directors in England Mr Birch was necessarily put into a wrong position. I should say that the Bank ought to be made acquainted with the neglect of their late Officer by way of explaining Mr Birch's proceeding. Govr Seymour promises to keep faith with London Creditors.
If Lord Carnarvon thinks their explanation sufficient
a despatch shd be written saying so.
ABd
25 Feb
I annex a draft to the Bank of Columbia. The reply to the
Governor might, I think, be deferred for their answer.
TFE
26/2
Mr Elliot
Under the British Columbia Loan Ordinance the following sums become annually due and are paid by the Crown Agents; vizt
1st January £6250
1st April £4125
1st July £6250
1st October £4125
Under the British Columbia Loan Ordinance the following sums become annually due and are paid by the Crown Agents; vizt
1st January £6250
1st April £4125
1st July £6250
1st October £4125
These sums are to provide for both the interest on the
Debentures and for the Sinking Fund.
On the 27th of June the Crown Agents informed this Office
that they had been requested by the Govt of British Columbia
to draw a Bill on the Govt for the payment of the £6250,
due on the 1st of July. The Agents also gave a statement
of the account between themand
and the Govt of B.C, by
which it appeared that if they did not draw the Bill and if
the Treasury did not pay over to the Colony the £9000 due on
Military Account, the sum of £6713, would have to be met on the
17th of July. This letter was referred to the Treasury (28 June),
and the Crown Agents told to pay the £6250 on the proper
date. The Treasury acquainted us in answer (Treas/6449) that the Agents
had been supplied with sufficient funds, to meet the £6713
on the 17th of July, partly from the balance of the Vote
for B.C. for the year 1863-64 and partly from Civil contingencies.
and the Govt of B.C, by
which it appeared that if they did not draw the Bill and if
the Treasury did not pay over to the Colony the £9000 due on
Military Account, the sum of £6713, would have to be met on the
17th of July. This letter was referred to the Treasury (28 June),
and the Crown Agents told to pay the £6250 on the proper
date. The Treasury acquainted us in answer (Treas/6449) that the Agents
had been supplied with sufficient funds, to meet the £6713
on the 17th of July, partly from the balance of the Vote
for B.C. for the year 1863-64 and partly from Civil contingencies.
On the 16th of October the Agents again reported (Agents/9847)
the request of the B.C.
Govt that the payment of the interest
and sinking fund to the amount of £4125, due on the first of
the same month, might be met [by] a Bill drawn on the Bank and
to be honoured by the Bank of British Columbia, in London,
that the Agents had done so but that the Bank declined to honour
the Bill, and that they had therefore paid the sum out of funds
belonging to other Colonies, to save the credit of the Colony.
This was approved by the Secy of State on the 31st of
October and a very severe despatch to the Governor (No 17 of the 30
October) calling his attention to the subject, and instructions to
immediately repay the advances thus made and to provide for future
payments.
Govt that the payment of the interest
and sinking fund to the amount of £4125, due on the first of
the same month, might be met [by] a Bill drawn on the Bank and
to be honoured by the Bank of British Columbia, in London,
that the Agents had done so but that the Bank declined to honour
the Bill, and that they had therefore paid the sum out of funds
belonging to other Colonies, to save the credit of the Colony.
This was approved by the Secy of State on the 31st of
October and a very severe despatch to the Governor (No 17 of the 30
October) calling his attention to the subject, and instructions to
immediately repay the advances thus made and to provide for future
payments.
But on the 26th of December the Agents (Agents/12205) once
more called attention
to the fact that there were no funds to pay
the sum of £6250 falling due on the approaching 1st of
January and asking from whence it was to be paid. They were
informed in reply (29 Decr) that the
interest £3000 was to be paid
out of the funds in their hands, belonging to other Colonies,
but that all payments on account of the Sinking Fund were to
be deferred; and a still stronger despatch (No 1 1st Jan/67)
than the one of the
30th of October, was sent to the Governor instructing him
to repay these sums, and to send home money to provide for
future payments. On the 17th of January the Agents sent to this
Office (Agents 497) a correspondence between the Colonial Govt,
themselves, and the Bank with reference to the means of
providing for the payment, due on the 1st of January by drawing Bills.
to the fact that there were no funds to pay
the sum of £6250 falling due on the approaching 1st of
January and asking from whence it was to be paid. They were
informed in reply (29 Decr) that the
interest £3000 was to be paid
out of the funds in their hands, belonging to other Colonies,
but that all payments on account of the Sinking Fund were to
be deferred; and a still stronger despatch (No 1 1st Jan/67)
than the one of the
30th of October, was sent to the Governor instructing him
to repay these sums, and to send home money to provide for
future payments. On the 17th of January the Agents sent to this
Office (Agents 497) a correspondence between the Colonial Govt,
themselves, and the Bank with reference to the means of
providing for the payment, due on the 1st of January by drawing Bills.
This letter was sent to the Treasury (14th Feby) with a
proposal that the Governor should be informed that this plan of
providing for these payments by drawing Bills on a Bank, is most
objectionable and that it must cease.
The Treasury have not yet answered this letter.
In the mean time Mr Birchs explanation has been received
(Gov 17/1942 9 Jan),
and by this it appears that it was agreed between himself and
the Manager, in the Colony, of the Bank, that the Bank in London
should honour the Bill and it is apparently owing to the neglect
of the Manager to report this arrangement to the Directors in
London that the Agents have had to apply sums belonging to
other Colonies for the
service of B. Columbia.
service of B. Columbia.
This minute of Mr Birch's has been sent to the Bank (28 Feb)
for any observations, which however as yet have not been received.
EHW
15 March/67
Sir F. Rogers
See Minutes on the Governor's despatch 1942 & the draft to Mr Mackean. As Mr M. never ansd "put by"?
See Minutes on the Governor's despatch 1942 & the draft to Mr Mackean. As Mr M. never ansd "put by"?
CC
9 July
Yes, put by.
FR
9/7
Documents enclosed with the main document (not transcribed)
Minute of A.N. Birch, no date, giving particulars of an
arrangement made with the local manager of the Bank of British
Columbia for acceptance of the colonial bills.
Other documents included in the file
Elliot to T.W.L. MacKean, 28 February 1867, forwarding copy of
Birch's minute for information, with reference to bills previously
refused by the bank.
Minutes by CO staff
We might as well wait to see what answer is made to
this letter before writing any reply to the Governor.