Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Kennedy, Arthur to
Cardwell, Edward 12 July 1866, CO 305:29, no. 8305, 8.
Abstract
Kennedy, Arthur to
Cardwell, Edward 12 July 1866, CO 305:29, no. 8305, 8.
Despatch to London.
Minutes (3), Enclosures (untranscribed) (4), Other documents (1).
No. 50, Financial
12th July 1866
Sir,
Referring to and in continuation of my Financial Despatch No 45
dated 26th June 1866, I have the honor to transmit further
communications which have passed between the Legislative Assembly and
myself on the same subject.
These documents explain themselves and do not require any lengthened
comment.
In
In reference to the last communication from the Speaker dated 6th
July I have to state that the Bill authorizing a loan of $90,000
(£10,556) has passed the Legislature and has received my assent.
This Bill (which will be formally submitted in the usual course)
authorizes the Government to raise funds by way of loan bearing
interest at twelve per cent per annum, to pay off the debt by
overdraft to the Bank of British North America and to leave a small
balance in aidof
of the ordinary Revenue at my disposal to carry on the
Government. It is an attempt to make good by a loan the failure of
the Assembly to provide ways and means to meet the current
expenditure of the Government for the years 1865 and 1866.
of the ordinary Revenue at my disposal to carry on the
Government. It is an attempt to make good by a loan the failure of
the Assembly to provide ways and means to meet the current
expenditure of the Government for the years 1865 and 1866.
It is a remarkable fact that although the Bill directs that the loan
shall be repaid by the end of the year 1868, it does not indicate the
means by which such repayment shall be effected,nor
nor am I aware of
any suggestion being made in the Assembly for that purpose, and,
having regard to this important omission, I trust the urgent
necessity of restoring the credit of the Government by the resumption
of payments at the Treasury will be my justification for assenting to
the Bill.
nor am I aware of
any suggestion being made in the Assembly for that purpose, and,
having regard to this important omission, I trust the urgent
necessity of restoring the credit of the Government by the resumption
of payments at the Treasury will be my justification for assenting to
the Bill.
Although it is expected that the loan can be effected in the Colony, I
have grave doubts whether it will be practicable in view of the
impaired state ofpublic
public credit consequent, as will be collected from
the Despatches I have from time to time addressed to you, to a great
extent upon the reckless proceedings of the Legislative Assembly.
public credit consequent, as will be collected from
the Despatches I have from time to time addressed to you, to a great
extent upon the reckless proceedings of the Legislative Assembly.
The expedient of borrowing money at twelve per cent interest for the
purpose of paying current liabilities (among which is the interest on
the £40,000 six per cent loan) cannot in itself be regarded as
otherwise than ruinous, and, except under the very peculiar and
difficult circumstances
stances in which I found myself placed, a resort to
it would not have met my concurrence.
stances in which I found myself placed, a resort to
it would not have met my concurrence.
I may state for your information that the Legislative Assembly is now
engaged in reconsidering the Estimates for the current year, and its
votes and Resolutions relating thereto, of which I enclosed a copy in
my Despatch No 9 dated 8th February 1866. I regret to find that
the Assembly perseveres in the assertion of a right to initiatemoney
money
votes independently of the Executive Government, the obvious effects
of which must be financial discredit, embarrassment, and confusion.
money
votes independently of the Executive Government, the obvious effects
of which must be financial discredit, embarrassment, and confusion.
Minutes by CO staff
Sir Adderley
Nothing can be worse than this Assembly's measure of borrowing money at 12 per cent to meet public services for which it neglects to provide ways and means. From beginning to end the Assembly of Vancouver Island has shown it's total unfitness for it's duties. But happily it's existence is rapidly drawing to an end.
Nothing can be worse than this Assembly's measure of borrowing money at 12 per cent to meet public services for which it neglects to provide ways and means. From beginning to end the Assembly of Vancouver Island has shown it's total unfitness for it's duties. But happily it's existence is rapidly drawing to an end.
I should be disposed to acknowledge the despatch—to express extreme
regret that the Assembly had neglected to provide ways and means for
the expenditure of the Colony, and had preferred adopting a Bill for
defraying the indispensable public services by means of a loan to be
raised at the ruinous annual interest of 12 per cent. I should say
that it is to be hoped that after the Union of the two Colonies of
Vancouver and B. Columbia, the United Govt may devise some more
legitimate & fitting manner of providing for the public wants.
TFE
30 Augt
Yes—without committing to [sic] me to the bill when it reaches this
Country & comes before me for allowance.
C
1 Sep
Documents enclosed with the main document (not transcribed)
Kennedy to Speaker of the Legislative Assembly, 2 July 1866,
discussing the unfavourable financial condition of the colony with
reference to previous correspondence and enclosing a letter from the
chief justice on the subject.
Joseph Needham, Chief Justice, to Colonial Secretary, 15 June
1866, advising that "officers of my Court have been refused payment
at the Treasury of their salaries for the month ending 31st May
last," and commenting that future occurrences would result in the
closing of the courts of justice.
Kennedy to Legislative Assembly, unnamed newspaper clipping, 6
July 1866, pointing out certain facts in relation to the finances of
the colony, appending a despatch from Cardwell relating to the
cost of mail conveyance and an outstanding bill on account of
lighthouse supplies.
J.S. Helmcken to Kennedy, 6 July 1866, advising that the
legislative assembly had passed a bill "authorizing the raising of a
loan of ninety thousand dollars, the security therefor being the
'General Revenue' of the Colony."
