Colonial Despatches

In my Despatch of the 14th December last No. 97, I informed you that your request to be allowed to draw on the Imperial Exchequer for a sum of £50,000 in consequence of the Financial difficulties in which the Colony of British Columbia had become involved, was engagingthe the serious attention of Her Majesty's Government, and I subsequently received your Despatch No. 162 of the 12th December in which you brought fully before me the reasons which you considered were a justification for your making such a demand on the Home Treasury.

From my despatch already mentioned you will probably have anticipated the decision which I have to convey to you. Her Majesty's Government after repeated consideration of the question have arrived at the conclusion that they would not be justified in asking Parliament to authorize a Loan ofMoney Money to British Columbia.

I am fully sensible of the extent of the difficulties with which you have had and still have to contend, and I do not doubt that you will use your utmost endeavours to meet them.

I am also aware that the endeavours of the British Columbia Government to discharge or reduce its liabilities have exposed yourself and other public Officers to much inconvenience. This I sincerely regret. But Her Majesty's Government have not thought these circumstances sufficient justification for advancing money from theBritish British Treasury for the purpose of meeting Colonial difficulties caused in the main by a lavish expenditure on works supposed to be required for the development of the Colony. They could have little hope that Parliament would sanction such an application of Imperial funds.

You will have already learnt that the Bank do not adhere to their high charge of 18 per Cent per annum interest upon the Colonial debt, and I am glad to hear that you have been able to reduce that debt to the Bank to $51,227.

I am unable at the present moment to make to you any communication in regard to the establishment of a more regular postalcommunication communication between England and British Columbia, a question which is still engaging the attention of Her Majesty's Government.