No. 31
               
            
            
               27th November 1869
               
               My Lord,
                
            
            
               I think it my duty to report to Your Lordship the anomalous
               position in which I found the office of Treasurer in this
               Government on my arrival in the Colony.
               
            
            
               2.  It is the principal department of Revenue,
Expenditure
 Expenditure, and
               Public Accounts, and yet has been allowed to remain for nearly
               three years without any recognized head—left to the
               administration of a clerk who has given no security for the safe
               custody of the Public monies.
               
               3.  In 
Mr Seymour's Despatch N
o 58 of the 
6th April, 1867,
               he has mentioned his recommendation which was subsequently acted
               upon, that 
Mr Franks, then
Treasurer
 Treasurer of the Continental portion
               of the Colony, should be relieved from his duties, and his
               further suggestion that 
Mr Watson, late incumbent of the office
               of Treasurer of 
Vancouver Island, which 
Mr Seymour treated as
               having been abolished, should be appointed Treasurer of the
               United Colony.
               
               4.  In the same Despatch 
Mr Seymour stated however that he
               found
the
 the financial embar[r]assment much greater than he
               anticipated, and also that what he mentioned as the light duties
               of the office of Treasurer could be performed without much
               trouble or increase of pay by the Collector of Customs.
               
               5.  I now find that this arrangement was never carried out,
               although 
Mr Watson was removed from the office of Treasurer,
and
               and that, as I have stated, the Department has remained merely
               in charge of the Chief Clerk, who has given no security and has
               required the assistance of two subordinates in the discharge of
               his duties. While in effect there is no responsible official to
               whom the Governor can look for assistance in the adjustment and
               administration of the
financial
 financial arrangements of the Colony.
               
               6.  I have no doubt that the amalgamation of the Customs and
               Treasury into one Revenue Department under the Collector of
               Customs, or any other Officer who might be selected as Receiver
               General, would have been a most desirable arrangement, though my
               own experience does not teach me that the duties of the office
of
               of Treasurer and Public Accountant in any Colony are so light as
               to be performed without trouble or increase of expense in
               another department.  But such a reorganization of these public
               departments, which would have been easy and most desirable two
               years and a half ago is not now to be so readily accomplished,
               nor is it now free from objection.  In view of the Union of this
               Colony with
the
 the Dominion of Canada it would be profitless to
               consolidate offices which would have to be again disunited, as
               the Customs would be a Department of the federal Government and
               the local administration would require a Treasury of its own.
               On the other hand, having regard to the necessity which exists
               for economy in the management of the finances, and to
the
 the
               fact that for nearly three years the office, though not the
               duties, has been practically abolished I am not at present
               prepared to recommend the appointment of a Treasurer.  Yet it is
               obviously improper on general principles that the public should
               be without security for the safe custody of the public monies,
               while at the same time it would be hard upon 
Mr Graham, the
               Clerk
in
 in charge after being allowed to remain so for more than
               two years and a half without any objection on this score, to be
               required now without further remuneration to give security which
               would probably entail upon him some expense.
               
               7.  I admit that under the complicated circumstances which I
               have brought to Your Lordships notice, I am disinclined for the
               present
to
 to attempt any alteration of existing arrangements from
               which no absolute evil has yet arisen, but I feel them to be so
               irregular that I could not allow them to continue without
               acquainting Your Lordship with the state of affairs and my
               reasons for not immediately taking some steps in the matter, in
               order that Your Lordship may be able to furnish me with any
               instructions that
you
 you may think expedient under the
               circumstances.
               
               I have the honor to be,
               My Lord,
               Your most obedient
               humble Servant
               
A. Musgrave
               
               Minutes by CO staff
               
                
                  
                  Sir F. Sandford
                     I conclude that the Chief Clerk only draws Salary as such tho'
                     performing the duties of Treasurer, which ought not to be.  In
                     the 
B. Columbia Civil List Act (N
o 62 of 
1863)
                     there is a Salary of £500 a year
                     for the Treasurer but in the Estimates for 
1869 I see that a
                     Treasurer, is not even included by name.
                     
 
                  
                  
                     It appears to me quite a question whether the Chief Clerk ought
                     not to have half the Salary

 assigned to the Treasurer as long as
                     he acts—but he ought not to be allowed to continue acting
                     without giving security.
                     
 
                  
                  
                     We have had practical proof in the past year—within which
                     the Colony has paid up a large arrear of debt—that the
                     Finance department is being efficiently managed.  I think that
                     
Mr Graham may [be] left as he is, therefore, for the present,
                     but he ought certainly to be called upon to give Security.
                     This will entail expense before him, and I think the Governor
                     s
d be authorized to raise his Salary to £500 (or whatever
                     sum short of that he may on enquiry think sufficient).
                     
 
            
            
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