No. 16
               
            
            
               28 March 1860
               
            
            
               I have the honor of transmitting to Your Grace a Petition from the
               House of Assembly of 
Vancouver's Island to 
the Queen, praying that
               Her Majesty will be pleased to direct that the price of 
Crown
Crown Lands
               in this Colony may be reduced, and that Four Shillings and two pence
               per Statute acre be the maximum price at which such lands shall be
               sold.
               
               2.  It does not appear necessary that I should enter into an
               examination of the merits of the several systems regulating the
               disposal of public land in Her Majesty's Colonial possessions, as the
               subject has been so fully examined, as hardly to admit of further
               useful investigation.  I could therefore, with a limited 
knowledge
knowledge of
               the practical workings of those systems, scarcely hope to throw light
               upon so wide and admittedly difficult a subject.
               
               3.  I may nevertheless be pardoned for remarking that there are
               circumstances arising out of the contiguity of the United States
               Territories which forcibly suggest the necessity for legislation of a
               peculiarly liberal character in disposing of the public land of this
               Colony, with a view of rendering it attractive 
to
to emigrants; and of
               counteracting the allurements held out by the Donation Act, and the
               General Pre-emption Law of the United States; the former securing to
               the actual settler in Oregon and 
Washington Territory, a free grant
               of public land, varying in Extent from 320 to 640 Acres; and the
               latter allowing to every American Citizen the privilege of occupying
               and preserving free of competition for a limited time, a section of
               public land, varying in extent from 160 acres for single, and 320
               acres for married persons, with the right of purchase at 
the
the minimum
               Government price of one and a quarter dollars per acre.
               
               4.  The Donation Act being intended to encourage emigration in the
               early stages of those Territories, was to continue in force for a
               limited time, but the Pre-emption law is, I am informed, of perpetual
               application.
               
            
            
               5.  Neither the soil nor the climate of 
Vancouver's Island have any
               superiority over that of the United States Territory, and the
               contrast will, at least for the present, appear unfavourable, if the
               Comparison be Extended to 
the
the relative commercial advantages of the
               two countries.
               
               6.  In those respects, it must be admitted that 
Vancouvers Island has
               no advantage over the Territories of the United States; and thus I am
               led to Entertain a doubt whether any scheme of colonization can be
               successfully worked out here, unless the public land be greatly
               reduced in price, or in fact lowered to the same Standard as in
               
Washington Territory.
               
               7.  It being evident that Population is the great want of this
               Colony—if it is believed the want can be supplied through 
the
the
               reduction proposed by the House of Assembly, I should strongly
               advocate the prayer of their petition; for in that case the loss of
               revenue necessarily caused by the depreciation in the price of land,
               would be repaid by the acquisiton of a population producing a
               permanent revenue for the Colony.
               
               8.  In carrying out the view of the House of Assembly with respect to
               the proposed reduction in the sale price of the Crown Lands, it is on
               the other hand to be feared unless conditions of settlement are
               imposed, that large tracts 
may
may be purchased, not with a view of
               improving the land, but on speculation of profitable resale, when
               they have been rendered valuable by the labors of others in the same
               locality; and it is evident that if scope be allowed for such
               operations they will prove obstructive to settlement, and highly
               detrimental to the Colony.
               
               9.  Under the new plan of disposing of the Crown Lands in Canada,
               speculation is said to be unknown and impossible, though the maximum
               price fixed by law is only 75 cents in Cash, or $1 dollar per acre on
               credit, 
payable
payable, one fifth at the time of purchase, and the remaining
               four-fifths in four equal annual instalments; in either case, the
               land being also subject to settlement duties.
               
               10.  Public feeling in this Colony is strongly in favor of the prayer
               contained in the Assembly's Petition, to which, provided the House of
               Assembly supply from other sources a revenue for defraying the
               regular expenses of Government, I see no other serious objection than
               the one I have here stated, and that may be obviated 
without
without impeding
               the useful and legitimate operations of Capital.
               
               11.  I would therefore Earnestly recommend the petition to Your
               Grace's favourable Consideration.
               
            
            
               I have etc.
               
               
            
            
               [P.S.]  I have also the honour of submitting, with this Despatch, for
               your Grace's information, a Minute giving the opinion of the
               Legislative Council, on the expediency of reducing the price of the
               Crown lands in this Colony.
               
James Douglas
               
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                     I would wish to observe, although perhaps I expose myself to the
                     charge of too frequently making the same remark, that this office
                     must take care that 
British Columbia enjoys an equal measure of
                     liberality, in respect to affording facilities in the acquisition of
                     Land, & in all other ways As 
Van Couver Isld.  The governing
                     classes in 
V.C.I. have strong motives for promoting the interests of
                     that Colony over 
B. Columbia—which, from its state of infancy,
                     requires more specially the fostering hand of the Government.  Any
                     Measures, therefore, which encourage settlement in 
V.C.I., unless 
B.
                        Columbia shares in the same, have a corresponding effect in
                     depressing 
B. Columbia.  But it is to be hoped that the result of the
                     correspondence, with 
Govr Douglas, respecting the disposal of the
                     public lands in this latter Colony—which correspondence is not
                     concluded—will be to give 
B. Columbia whatever encouragement she is
                     really entitled to.
                     
                  
                  
                     So far as regards 
Vancouvers Island, any positive instructions are
                     suspended until the Hudsons Bay Company shall have received 
it's
it's
                     money, and have given the requisite authority to the Government to
                     sell.
                     
                     With respect to 
Mr Blackwoods recommendation of equal treatment of
                     the two Colonies, I had an impression that this was adverted to in
                     some recent instruction, but the point can be looked to when the
                     Com
rs report.  Refer to Land Board?
                     
                     (N.B.  I may take this opportunity of mentioning that I have
                     requested 
Mr Jadis to ascertain how 
Governor Douglas can most
                     readily be supplied with stationery of the usual size.  I find that
                     
Mr Blackwood has already written him a private note on the matter.
                     These colossal despatches are very inconvenient to handle.)
                     
                     
 
               
               
                  
                  
                     Whatever price is fixed for land in 
V.C. Island must equally prevail
                     in 
B. Columbia.  No difference should be allowed to the prejudice of
                     the latter.
                     
 
                
            
            
               Documents enclosed with the main document (not transcribed)
               
                
                  
                  
                     Petition from the House of Assembly to 
the Queen,
                     asking that the price of crown land in the colony be reduced, no
                     date, signed by 
John S. Helmcken, Speaker.
                     
 
                  
                  
                     Minutes of Council, 26 March 1860, giving unanimous approval to the
                     reduced price for land, providing provision be made to hinder land
                     speculators, and promoting enactment of a pre-emption law.
                     
                     
                   
            
            
               Other documents included in the file
               
               
                  
                  
                  
                     Minutes by CO staff
                     
                     
                        
                        
                           The recent transfer of the Hudson Bay Co's rights to the
                           Government,
                           together with the promise of instructions contained in No 26 of the
                           28 ulto has rendered it necessary to propose the present despatch.
                           
                        
                        
                         
                      
                   
               
                
            
            
            
               Other documents included in the file
               
               
                  *
               
               
                  
                  
                  
                     Minutes by CO staff
                     
                     
                        
                        
                           As it has become necessary to settle the price of land in
                           
Vancouver's Id, the object of the present draft is to authorize the Governor to adopt the same price
                           in 
British Columbia.
                           
                           The subject of rights of preemption is in some confusion.  I have
                           dealt with it as best I could under the minutes.  My own opinion on
                           the question was submitted in an elaborate minute several months ago,
                           but was overruled.