Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Shepherd, Captain, HBC Governor John to Labouchere, Henry 14 July 1856, CO 305:7, no. 6281, 363.
Abstract
Public Offices document.
Minutes (5), Other documents (2).
Shepherd writes to Labouchere regarding the “financial position of Vancouver's Island,” the settlement’s ability to defray “the current expenses of the Government of that
Colony,” and it’s impact on the HBC Company’s financial “return.”
The minutes discuss whether the inhabitants on Vancouver Island will have to cover government expenses if the “local funds (derivable from the sale
of land) fail them.”
Shepherd to Labouchere
Hudson's Bay House
July 14th 1856
Sir,
The Governor and Committee of the Hudson's Bay Company have lately
had under their consideration the Financial Position of Vancouver's
Island, particularly with reference to the prospective means for
defraying the current expenses of the Government of that Colony.
You are aware that hitherto these expenses have been provided for,
principally by the sale of sections of land at the rate of 1 per acre;
by the amount received for Royalty on Coal, the produce of the Hudson's
Bay Company's Coal Mine; and the amount received in the Colony for
Licences and Fines.
The
The first source of revenue, vizt, that arising from the Sale
of land, will, it is to be feared, prove much less productive for some
years to come than during the preceding period. The Hudson's Bay
Company, and the Puget's Sound Agricultural Company, have completed to
the full extent their purchases, and notwithstanding the modification
permitting the payment of the purchase money by instalments, which has
been lately introduced with your sanction, the Governor and Committee do
not anticipate that such an impulse will be given to future sales as
will make up for the loss of income caused by the cessation of purchases
by those Companies. Under such circumstances the Governor and Committee
are of opinion that the time has arrived when it has become necessary to
send instructions
instructions to Governor Douglas to take into consideration the
best mode of providing additional means for defraying the expense of
administering the affairs of the Colony; and, considering that the
purposes for which the funds are required are those which are essential
for the happiness and protection of the Colonists, the Governor and
Committee trust that Governor Douglas will receive the support of the
Legislative Assembly should it be found necessary to impose duties on
trade, or other taxes for the accomplishment of this object.
The first source of revenue, vizt, that arising from the Sale
of land, will, it is to be feared, prove much less productive for some
years to come than during the preceding period. The Hudson's Bay
Company, and the Puget's Sound Agricultural Company, have completed to
the full extent their purchases, and notwithstanding the modification
permitting the payment of the purchase money by instalments, which has
been lately introduced with your sanction, the Governor and Committee do
not anticipate that such an impulse will be given to future sales as
will make up for the loss of income caused by the cessation of purchases
by those Companies. Under such circumstances the Governor and Committee
are of opinion that the time has arrived when it has become necessary to
send instructions
instructions to Governor Douglas to take into consideration the
best mode of providing additional means for defraying the expense of
administering the affairs of the Colony; and, considering that the
purposes for which the funds are required are those which are essential
for the happiness and protection of the Colonists, the Governor and
Committee trust that Governor Douglas will receive the support of the
Legislative Assembly should it be found necessary to impose duties on
trade, or other taxes for the accomplishment of this object.
The Hudson's Bay, and the Puget's Sound Agricultural Companies and
their Servants, have expended a very large capital in the Island, in the
hope that in the course of time some adequate return will be
forthcoming, and although the uncertain prospect of such return within a
reasonable period
period has now compelled them to inculcate on their Agents
the necessity of adopting more caution in the expenditure of money on
works not calculated to be immediately remunerative, yet they will be
ready cheerfully to contribute their proportion of any tax or duty which
may be imposed for defraying the necessary expense of administering the
affairs of the Colony.
period has now compelled them to inculcate on their Agents
the necessity of adopting more caution in the expenditure of money on
works not calculated to be immediately remunerative, yet they will be
ready cheerfully to contribute their proportion of any tax or duty which
may be imposed for defraying the necessary expense of administering the
affairs of the Colony.
Minutes by CO staff
Mr Ball
It was certainly part of the understanding on which Vanc. I. was transferred to the Company, that they were to be at the expense of governing it, & this is to be implied from the terms of the grant, though I cannot find it distinctly stated. But I think that when local funds (derivable from the sale of land) fail them, they are fairly entitled to call on the inhabitants to provide for their own government. At the same time it is so obvious that this system of self-government & self-taxation cannot be maintained concurrently with the vesting of the Exclusive ownership of the land in the Company, that I should think the Secy of State may
answer that he cannot in reason issue such instructions, unless the Company are prepared
to come to an arrangement
for surrendering it.
It was certainly part of the understanding on which Vanc. I. was transferred to the Company, that they were to be at the expense of governing it, & this is to be implied from the terms of the grant, though I cannot find it distinctly stated. But I think that when local funds (derivable from the sale of land) fail them, they are fairly entitled to call on the inhabitants to provide for their own government. At the same time it is so obvious that this system of self-government & self-taxation cannot be maintained concurrently with the vesting of the Exclusive ownership of the land in the Company, that I should think the Secy of State may
answer that he cannot in reason issue such instructions, unless the Company are prepared
to come to an arrangement
for surrendering it.
HM
July 19
Mr Labouchere
I am disposed to agree with Mr Merivale. It is time to consider what position the British Govt shd take with regard to this Dependency having in view the probable extension of population on the American frontier. The circumstances connected with the Arro islands though not very important seem to show the difficulties which will probably ensue from the continuance of the present state of affairs. In another point of view it may be doubted whether this island will remain British if there is not an influx of British population & it does not appear that the practical effect of the present system is to
attract population.
I am disposed to agree with Mr Merivale. It is time to consider what position the British Govt shd take with regard to this Dependency having in view the probable extension of population on the American frontier. The circumstances connected with the Arro islands though not very important seem to show the difficulties which will probably ensue from the continuance of the present state of affairs. In another point of view it may be doubted whether this island will remain British if there is not an influx of British population & it does not appear that the practical effect of the present system is to
attract population.
JB
21 July
Mr Merivale
I should like to speak to you about this before the answer is written.
I should like to speak to you about this before the answer is written.
I am inclined to think that some power of Taxation if necessary
to provide for the govt of the Colony shd be allowed.
HL
30
Answer that the substance of this letter will be communicated to
the Governor with a statement that I consider it reasonable under the circumstances that some moderate imposts shd be levied to help to defray the expense of govert.
the Governor with a statement that I consider it reasonable under the circumstances that some moderate imposts shd be levied to help to defray the expense of govert.
HL
A 5
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