Colonial Despatches

I have the honour to transmit herewith, four Acts intitled as follows, vizt— 1. "The Alien Act 1861." 2. An 2. "An Act for the Confirmation of the Titles of Aliens to Real Estate 1861." 3. "An Act to Enable Aliens to hold Real Estate 1861." 4. "The Vancouver Island Civil Procedure Act 1861."

2. The provisions of the first three Acts defining the position of aliens in the Colony of Vancouver Island, are not materially differentfrom from the Alien Act approved by Her Majesty's Government and now in force in the Colony of British Columbia; they are also in accordance with the instructions received in Secretary Sir E. Lytton's Despatch No 20 of the 11th of February 1859; I therefore thought it incumbent upon me to give Her Majesty's Assent to them without delay, in order to quiet the public mind and to remove a mischievous feeling of distrustwhich which had been rapidly gathering strength with respect to the rights of aliens in this Colony.

3. I enclose a report from the Attorney General on the character and object of these Acts; and I would also inform Your Grace that many reasons of sound policy render their immediate passage of vital importance to the Colony.

4. A great deal of capital has been invested by aliens in the purchaseof of land in and about Victoria, and it was generally believed in consequence of an official announcement issued in 1858, declaring the legal position of aliens, that those persons were entitled to hold land for three years only, unless then declared to be British subjects; consequently most of them were preparing to sell their interest within the present year, and to withdraw from the Colony, though,otherwise, otherwise, if secured in their rights, they did not desire to sell their property.

5. I may also state that there is reason to believe that the attention of many Capitalists, especially among the British, French and German residents of San Francisco, is now being directed to this place; the present political troubles in the United States, a prospect of increased taxation,and and the present high prices of Real Estate in San Francisco, all tending to direct enquiry towards this point, as a favourable one in which to make investments. The notification then, at this time, that all restrictions on aliens holding property in this Colony, are removed, will doubtless have a most beneficial effect.

6. I observe that the Government of Canada, influenced no doubt by thesame same motives, have lately offered very liberal bounties of land and other inducements to those persons who are being driven across the borders by the troubles in the United States.

7. One very disastrous effect produced by uncertainty in regard to alien titles, is the check it gives to improvement. An alien may be willing to hold a piece of land with the prospect of its increasingin in value soon, but he will not, with an uncertain tenure, invest capital in the erection of substantial buildings, or other permanent improvements. Another evil resulting from that uncertainty is that the alien does not identify himself with the interests of the country, nor actively contribute towards its sure and healthy development. He may perhaps aid in creating a speculative demand in order to sell his propertyto to advantage, but he does not care to assist plans which require years to mature, when he may be called on any time to part with property which he holds only by sufferance.

8. There are many other points which I might allude to in connection with the subject, but most of them will doubtless occur to Your Grace.

9. As there still exists a feeling of distrust anduncertainty uncertainty as to whether these Acts will meet with Her Majesty's approval, I have to beg the favour of Your Grace's early reply to this Communication, in order that the question may be set at rest.