 
                  
                  
                  
                  
                     They claim Imperial compensation for losses arising out of the
                     change of Capital—that is the seat of the 
Govt of the United
                     Colony being fixed at 
Victoria V.C. Island.
                     
 
                  
                  
                     They state that 
New Westminster was by Proclamation made the
                     Capital of 
B. Columbia—that this fact was held out as
                     inducement to purchasers of land there—& that it was promised
                     that the proceeds should be laid out in the improvement of the
                     roads & streets—that this promise was not kept the proceeds
                     being absorbed in the General Revenue.  That the Council bought
                     property at an exorbitant price,

 on which they borrowed money
                     for roads &c—which is now nearly worthless—& that the
                     depreciation of property generally prevents their levying taxes
                     to pay even the interest.
                     
                     I would refer you to the minutes on 87/8562/67.
                     
                  
                  
                     But even Public Officers could have no home compensation  see
                     101/11063.
                     
                  
                  
                   
                  
                  
                     1.  When 
Vancouvers Island was founded 
Victoria was declared to
                     be her capital & investments of course took place in the
                     expectation that it 
wd remain so.
                     
                     2.  When 
B.C. was founded 
N. Westminster was declared to be the
                     capital & investment of course equally took place on the
                     expectation that it 
wd remain so.
                     
                     3.  When the two Colonies were united (under the title of 
B.C.)
                     it became necessary to determine which set of expectations
                     
shd be disappointed.  The population of 
Victoria was said to
                     be almost 3000 to 4000, that of 
New Westminster about 1500 to
                     2000.  The capital invested
                     in each & 
wh wd suffer by loss of the advantages of
                     capital was probably in proportion.  It was for this & other
                     reasons (as that 
Victoria was of more ready communication with
                     the world—was the commercial entrepot &c) determined that the
                     disadvantages 
wh had to be imposed on

 one must be imposed on
                     
New Westminster.
                     
                     New Westminster now, after a very common fashion of argument,
                     urges that because the Act of 
Govt in proclaiming a capital
                     raised certain natural expectations therefore 
Govt is bound
                     to fulfil those expectations.  I hold that neither private nor
                     public affairs could be carried on if such a principle were
                     admitted, i.e. if men are considered to guarantee the natural
                     [several words cut off microfilm].
                     
 
                  
                  
                     If these purchasers before buying their lots had distinctly
                     asked the 
Govt "do you pledge yourselves never to change the
                     site of the Capital?" there cannot be a moments doubt of the
                     answer 
wh any honest Governor would have made.  "Certainly
                     not.  The choice and removal of a Capital (
Ottawa) are matters 
wh
                     must always depend on a variety of considerations—political
                     commercial, military, sanitary

 which it is impossible to
                     foresee.  You must judge for yourselves as to the likelihood of
                     change.  All I can say is that the 
Govt give you the start—I
                     make it the capital, with no intention of changing it."
                     
                     I do not believe that any one man who now urges that Govt has
                     pledged itself not to remove the capital, would have really
                     expected at the time any but a negative answer to a proposal
                     that the Govt shd pledge itself.
                     
                  
                  
                     I would answer this part of the Memorialists petition
                     argumentatively in the above sense.  Because it is an argument,
                     which, till it is considered, is not without plausibility, and
                     because the people who advance it, are represented as being a
                     respectable & well conditioned

 sort—deserving of considerate treatment.
                     
                     And also—because it is a kind of argument wh is continually
                     recurring—there is a constant tendency to build up a pledge
                     against it out of expectations contracted by B.—and the
                     publication of an exposure of a common fallacy is always a good deed.
                     
                  
                  
                     With regard to the misapplication of the Land Fund, I would
                     observe that no documents are referred to in support either of the
                     allegation that the purchase money of Town Lots in 
N Westmr
                     was to be devoted to improving streets & roads in the city or of
                     the allegation that they had not been so devoted.  But that on
                     these points the first step of the Memorialists ought to [be to] bring
                     their case before the Leg
ve Council through those gentlemen
                     by whom they are substantially represented in that body, and
                     that it

 is for the local 
Govr & Leg
re to consider at least
                     in the first instance, by what mode of enquiry the truth 
shd 
                     be ascertained.