I have had the honor to receive Your Lordship's Despatch N
o 78
               of the 
4th August forwarding a Report from the Crown Agents
               upon 
Mr Hankin's Despatch N
o 13 of the 
21st June respecting
               the steps
which
 which have been taken by the Colonial Government to
               meet the liabilities of the Colony on account of the 
British
                  Columbia and 
Vancouver Island Loans.
               
               2.  I regret to say that there is too much justification for the
               remark of the Crown Agents that the financial position of the
               Colony at their Office has been very imperfectly understood by
               the local authorities.
               
               3.  The Statement furnished by the Crown Agents as to the
               position of their Account appears upon investigation to be
               correct.  The amount of £18,350, which they state to be required
               by the 
1st January next to meet current liabilities, has been
               reduced by remittances since the date of their letter to the
               extent of £9,800, so that £8,550 will be the amount necessary to
               be forwarded by 
1st December,
and
 and this amount I hope to be able
               to make arrangements to furnish in proper time.