Colonial Despatches

My Predecessor's Despatch No. 1 of the 18th of January 1867 and mine No. 8 of the 21st of March, drew your serious attention to the irregularities in the remittances from British Columbia, both for general purposes and for the vital object of meeting the interest and Sinking Fund of the Public Debt.

I have now had further before me a letter of the 7th November to the Crown Agents signed by Mr. Ball, acting Colonial Secretary, requesting the Agents to provide for the interest and Sinking Fund by drawing a Bill on the Colonial Government, and discount it with the Bank of Columbia. The Bank of Columbia has refused to discount the Bill. Considering the persistent default of the Colonial Government in its remittances, and the consequent discredit earned for the Colony, this is not surprising.

An instruction to draw a Bill on the Colonial Government and to attempt to negotiate it, is a futile and wholly inadequate mode of discharging the duty of preserving the good faith of the Colony. I have to instruct you that in future good Bank Bills of short date should be purchased in the Colony, and sent to the Crown Agents in full time to mature before the payments of interest and Sinking Fund fall due in London. They should be purchased at least three months in advance, and earlier if it should be necessary, in order to fulfil the foregoing conditions.

I must recall to your attention my Despatch of 21st March No. 8 in which I pointed out to you that liabilities in respect of the Public Loans must stand in the position of primary charges on the Revenue.