Colonial Despatches

I have the honor to acknowledge the receipt of Your Grace's Despatch of the 20th February, No 10, upon the subject of a Bill drawn by Mr W.A.G. Young for the sum of Two Hundred and Fifty pounds (£250.0.0), presumed byby Your Grace to be on account of his Half Years Salary as Colonial Secretary; and calling my attention to the irregularity of the proceeding and to the Colonial Regulations wherein the manner of drawing Bills is distinctly pointed out.

2. I have called upon Mr Young for an explanation of this matter, and I forward herewith his report, from which Your Grace will perceive that the Bill in question was not drawn for Salary, but appears to be part of the Sum of Two Thousand Pounds (£2000.0.0) which I was obliged to draw to meet Military Expenses in VancouversVancouvers Island, and of which I have duly advised Your Grace in my Despatch of the 27th of August last, No 42.

3. It has always been a matter of some difficulty to effect a favorable negociation of our Bills, as the large supply of Navy Bills—which being drawn at 7 days sight, obtain a readier market—nearly equals the actual demand for sums of any considerable amount. We have therefore been obliged to watch the market, and to negociate our Bills as occasion offered. On my departuredeparture for British Columbia in September last there was a large residue still to be drawn of the sums required on Military account both for British Columbia and Vancouver's Island, and of which sums I had already duly advised Your Grace, and as considerable inconvenience would arise if the Bills could not be negociated before my return, and as much loss might ensue if any favorable opportunity were neglected, I authorized Mr Young to countersign the Bills in my absence, andand I wrote a letter to Her Majesty's Paymaster General, of which I beg to enclose a Copy, duly acquainting him of such authorization.

4. I have always endeavoured strictly to comply with the rules laid down in the Colonial Regulations relative to the manner in which Bills are to be drawn, but the case in question, is, I conceive, one where a departure from the letter, although not from the spirit of those instructions isis justly demanded by circumstances.