3.  It is with the most sincere regret that I find myself thus
               imperatively called upon to defend myself from the very serious
               reflections which Your Grace has esteemed it necessary to cast upon
               me.  I do so, however, unhesitatingly & fearlessly, conscious of my
               own rectitude of action, and of my
honest
 honest endeavour to discharge the
               trust reposed in me faithfully & impartially.  In the career of my
               office I have neither sought nor coveted the exercise of patronage,
               on the contrary in the difficulties surrounding me gladly would I
               have freed myself from that not the least of the responsibilities and
               cares pressing upon me.  Her Majesty's Government, however, thought
               fit to charge me with that responsibility, and I did not shrink from
               it—as I have not shrunk from any onerous duty demanded from my
               position—
but
but I have on all occasions endeavoured to discharge it to
               the best of my knowledge and belief for the sterling interests of the
               public service.  From the moment that the circumstances of the
               Country suddenly and urgently demanded the creation around me of all
               the machinery of Government—amidst a state of previous quiescence &
               retirement that precluded the existence on the spot of fitting
               materials—from that moment until now, the selection of individuals
               to perform its various functions
has
 has been a matter of deep and
               increasing anxiety.  Easy indeed, by comparison, would have been the
               task, had I been able to fall back upon a long tried and proved staff
               of officials regularly educated in the service, and advanced from one
               stage to another in regular gradation according to character and
               ability:  easy would it have been, light would have been the
               responsibility, when it became necessary to make a fresh appointment,
               if that appointment had been but to instal a junior clerk to a
subordinate
               subordinate office.  But what has been my position?  I will venture
               to say it is without a parallel.  I have had to organize a Government
               Staff.  I have been compelled to appoint at once to positions of
               trust and responsibility men who I felt were not properly qualified
               to discharge the duties required of them, but who were the best
               qualified I could obtain; men of whom I, personally, knew
               nothing; men in whom I, personally, had no interest; and of whom I
               could only judge from the
Letters
 Letters of introduction which they brought
               to me, and from the Character they bore elsewhere, or had acquired
               during their residence in the Colony.  One person whom I appointed in
               this manner was M
r Gordon, the defaulting Treasurer.  I staved off
               the responsibility of making such an appointment as long as it was
               practicable.  I employed the services of 
Captain Gosset the Treasurer
               of 
British Columbia while the Treasury of that Colony was
               temporarily established in 
Vancouver's Island, but upon its removal
I
 I
               was forced to create the fresh office.  I knew not where to find a
               suitable person to fill it, whose antecedents and character were such
               as I could rely upon with confidence.  Of all the candidates for
               public employment 
Mr Gordon appeared the most fitting.  He had been
               12 months in the Colony.  He had earned for himself a good
               reputation.  He had worked assiduously during part of the time as a
               Clerk in a Barristers office.  He had acquired a certain status and
               position.  He was a Member of the House of Assembly.  He
had
 had settled
               in the Colony with his wife and a family of seven children.  He was a
               graduate of Cambridge—and finally he had presented to me not an
               ordinary—but a special letter of introduction from Your Graces
               predecessor in Office, 
Sir Edward Lytton.  Could I, under the
               circumstances, have desired more satisfactory evidence of character
               and respectability, or—as to the point I mainly sought—honesty?
               Was it not natural that with such evidence I should have felt secure
               in appointing 
Mr Gordonto
 to the vacant office.  That his subsequent
               defalcation may be discreditable to my Government I will not contest,
               but much as I may deplore the circumstance—bitterly as I do feel
               it—I must contend that I am more entitled to the sympathy than to
               the reprehension of Her Majesty's Government.
               
               5.  With regard to Your Graces remarks upon the manner in which I
               appointed 
Mr Watson as a Successor to 
Mr Gordon, I hasten to
               express my regret that my Despatch should have led Your Grace into
               the supposition that I had adopted any other course than that
               prescribed by
the
 the regulations of the Service.  The appointment I
               gave to 
Mr Watson was merely
               
provisional, as I intended to convey by the use of the words "to
               
act as Treasurer," and in begging that Your Grace would be
               pleased to obtain "Her Majesty's
               
confirmation of the appointment."  
Mr Watson perfectly
               understood this, and in leaving the Bank of British North America,
               and accepting the appointment the only stipulation he made was that I
               should
               
recommend his confirmation to the Secretary of State.  The
immediate
               immediate appointment of an officer was an act of imperative
               necessity.  Revenue was coming in every day.  There was no Cashier or
               other person to receive it.  The Treasurer himself comprises the whole
               staff of his Department, and it was necessary to keep that Department
               in being: and the opportunity of obtaining the services of M
r Watson
               was not to be thrown away.  I feel very thankful that Your Grace has
               confirmed the appointment, for 
Mr Watson promises to be a most
               useful Member of my Government, and
a
 a most efficient public Servant.