With reference to your letter of 
11th October, on the subject of the
               deficiency of proper Postal Regulations in the Colony of 
Vancouvers
                  Island, owing to the Legislative Council having thrown out a Bill for
               the management of the Post office, introduced by the Governor of the
               Colony, I am commanded by the Lords Commissioners of Her Majesty's
               Treasury to transmit to you copy of a Letter from the Postmaster
               General dated 
25th Ultimo, on the same subject, but I am to state

               that while the course His Lordship recommends, affords probably the
               only means for carrying on the postal service strictly in accordance
               with law, yet My Lords trust that 
Mr Secretary Cardwell will not be
               compelled to resort to an arrangement so inconvenient to all parties;
               & that the good sense of the Government & Colonials of 
Vancouvers
                  Island will lead to proper provision being made for the service.
               
               Minutes by CO staff
               
                
                  
                  
                     Mr Elliot
                     Governor Kennedy has already been asked if he wd desire that the
                     Treasury should fix the rates of postage & if so what rates he wd
                     wish shd be prescribed.  See 9648.
                     
 
                  
                  
                     The Post Office in the enclosure to this letter propose two courses,
                     either to allow the Colonists to suffer the consequences of their own
                     conduct & to discontinue the Inland Postal Service or that the Govr
                     should fix rates of postage sufficient to cover all expenses.  I
                     conclude the last course will be adopted.
                     
                  
                  
                   
                  
                  
                  
                  
                     You will observe that in these official letters both the Treasury and
                     the Postmaster General are averse to our stepping in with Imperial
                     authority if it can possibly be avoided, and rather lean to leaving
                     the Colonists either to pass a good postal measure or else to bear
                     the consequences of their own recusancy.  When we spoke of it with
                     
Mr Hill, we felt a natural wish if possible to help a deserving
                     Governor in difficulty.  But on reflection I own that partly for the
                     sake of the lesson to unworthy depositaries of
power
 power, and for the
                     hint to the Colonists that they suffer by their perversity—and partly
                     also on account of the clamour and misrepresentation for which room
                     may be offered by helping these people against their will from
                     home—I am inclined upon the whole to the course which I have marked
                     in pencil at page 2 of the letter from the Post Office to the
                     Treasury.  This Island has the misfortune to be under the dominion of
                     a sort of turbulent Vestry clothed with all the powers and attributes
                     of the House of Commons.  I do not see why, so long as they have all
                     the power, we should trouble ourselves with any of the
                     responsibility.  The only check on the arbitrary conduct of such
                     bodies is the

 impatience of their own Constituents, and the best way
                     of bringing that check into action is to let the Constituents feel
                     for themselves where the shoe pinches.
                     
                  
                  
                     There is a great deal in what 
Mr Elliot says.  But I am a little
                     apprehensive of the inconvenience to the Governor.  At present by
                     some means or other he carries on this inland Postage.  The
                     population—or rather the few settlers who do not reside in
                     
Victoria—will ask why he 
shd not continue to go on as before:  and
                     it will be rather difficult to give an answer 
wh will not enable the
                     opposition to represent his proceedings as a piece of temper.
                     
                     His only answer 
wd be that he was acting under Instructions from
                     home—

but is 
Mr C. prepared to give positive instructions to that
                     effect with
t a clearer opinion as to the nature of his present
                     arrangements and their legality than can well be extracted from the
                     papers now sent.
                     
                     He mt be instructed that the management of the Inland Posts could
                     not conveniently be undertaken by the Home Govt—that if the Col.
                     Lege refused to pass the necessary laws for establishing a Postal
                     system it wd be his duty to exert such authority as in the opn of
                     the L Offrs he legally possessed to prevent any public
                     inconvenience—but that if he found that such inconvenience could
                     not be prevented witht adopting measures in excess of his lawful
                     authority he must leave the community to suffer the
                     consequences imposed upon them by the Legislation or non Legislation
                     of their representatives.
                     
                  
                  
                     It is to be observed that the state of the Law appears to be this.
                     By 7 Will[iam] & 1 Vict c. 33, S. 2 the Imperial P.O. has the
                     exclusive privilege of conveying letters (except in certain cases not
                     material) but by 12 & [17?]
                     
                     Vict c. 66 the Colonial Legislatures have
                     authority to establish Posts—& in such establishment the power of the
                     Imperial Govt is to cease—so that under the Acts of Parlt the
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