I have the honor to acknowledge the receipt of your despatch No. 1
of the
5th of January last, transmitting the copy of an Act passed by
the Legislature of
Vancouver Island, but to which you have withheld
your assent pending the receipt of instructions from Her Majesty's
Government entitled "the Victoria Harbour Act of 1860."
I am aware of no objection to this Act, and on receiving it from you in an
authenticated shape, I shall be prepared to submit it for Her Majesty's
Confirmation.
With respect to the doubt which had occured to you whether under
the terms of
the Queen's instructions to you as Governor of the Colony, you are at liberty to assent, without
previous sanction of Her Majesty's Government, to Acts for contracting loans, I have
to
inform inform
you that the clause in your instructions to which you allude was not
designed to restrain the Colonial Government from incurring debts, but
has reference to the issue of paper money & Letters of Credit as a
Legal tender.