No. 73, Financial
1. In continuation of the subject of my Despatch N
o 62 dated
17th
August 1866, I have now the honor to enclose for your information a
copy of the Supply Bill passed by the Legislative Assembly, newspaper
reports of and comments upon the proceedings
in in the Legislative
Council and Legislative Assembly in relation thereto, and extracts
from the Minutes of the Legislative Council.
2. These documents will inform you that the anticipation expressed
in my Despatch above referred to that the Supply Bill would not be
passed has been realized, and will at the same time enable you to
judge of the causes which led to the failure on the part of the
Legislature to pass this important Bill.
3. A
3. A comparison of the Supply Bill passed by the Assembly with the
copy of the Estimates amended by the Assembly (transmitted in my
Despatch N
o 9 dated
8th February 1866)
Not returned to Dep, endeavour to recover No 9.
will show the results of the reconsideration of the Estimates
referred to in my Despatch named in the margin.
No 61, 8th August 1866, paragraph 11.
4. It will also be seen that in the Schedule to the Supply Bill as
passed by the Assembly are interpolated among the various items of
supply, no less than
twenty twenty five distinct Resolutions—indicating in
all but name the officers who are to perform certain
duties, amalgamating and abolishing offices, increasing
salaries, initiating votes, and involving a pledge to repeal the Real
Estate Tax, a Bill for which purpose had been previously and in the
same Session passed by the Assembly and rejected by the Council.
5. I can entertain no doubt that in making these extraordinary
additions to the Supply Bill the Assembly desired either to compel
the
the enactment of these Resolutions by including them in a Bill which
they supposed the Council would not venture to reject in toto, or,
believing that the Council would neither accept such "tacks" nor
amend the Bill, to leave the Executive Government without the usual
legislative authority for the expenditure of public moneys conferred
by a Supply Bill. This latter assumption is confirmed by the
Resolution of the Assembly dated
28th August and received
by by me on
1st September when the House had virtually ceased to exist.
6. I cannot but regard the Assembly as being solely responsible for
the state of discredit and difficulty into which the Colony is thus
thrown for want of a law on which public credit should be based—and
I can only lament that a representative Body should have thus further
exemplified its unfitness for the performance of its important functions.
7. It
7. It will of course be necessary at a future time to legalize the
expenditure of the current year.
8. I propose in a separate Despatch to address you on the subject of
the finances of the Colony generally and of the course I propose to
adopt to meet the unusual want of a Supply Bill.
I have the honor to be,
Sir,
Your most obedient Servant
A.E. Kennedy
Governor
Minutes by CO staff
Sir F. Rogers
In Par 8 the
Govr says that he intends sending a separate
desph on
the finances of the Colony in which will be explained the means by
wh: the inconvenience arising from the want of a supply bill will be
got over. This means will probably be by reducing or stopping the
public officers Salaries, and consequently the transaction of public
business. For this the Governor is not to blame. Wait for the
further report.
Since writing the preceding minute I have met with the promised
further report, see No 74 of the 11 Sepr. I think there is
nothing else to do now than express regret at this unsatisfactory
conclusion of the deliberations of the Assy.
I do not see what more could be done. The Governor
shd have used
his influence to persuade the Leg
e Council to pass the Supply Bill,
if that supply bill had been such as could reasonably have been
passed—but looking to the nature of the Resolutions embodied in its
Schedule I hardly see how it could have been passed. It is such an
absurdly composed affair that it is impossible to say what effect it
wd have. We must wait & see how
Govr K. gets out of the
difficulty. I am not sure that the "dead lock" may not favour
Union and
Mr Seymour who will appear as "Deus ex Machin[unknown_accent]a."
It is impossible to imagine anything more convenient than his
appearance, with absolute power in his hand.
The views of the Home Govt in this case shd be carefully compared
(when expressed) with the views of the Home Govt approved by the H.
of C. on the [one or two words partly off microfilm].
May be put by till further [off microfilm] together with [off
microfilm]
Seymour all have as difficult [off microfilm] to drive as
[illegible] Governor [off microfilm] borders of a Republic [off
microfilm] of her subjects [off microfilm] or annexation.
D
ft as proposed. I do not wish in this or in the answer to the
other accompanying despatches to endorse
Govr Kennedy's accusation
of the Assembly. It has been everything that an Assembly s
d not be
but there is no need at present for the expression of my opinion.
Mr Jadis draws attention to a despatch N
o 74 which
Lord Carnarvon
has not yet seen. I will acknowledge that the subject is obscure to
me.
All I know is that there are certain revenues at the disposal of the
Crown in
Vancouver Island, and that
Governor Kennedy was instructed
some considerable time ago that he was to use that revenue as far as
it would go for the most urgent public purposes, but of course he was
not meant to go further or to use funds which are not under his
control. I do not gather from the two present
despatches despatches N
os 73 and
74 that he has made use of any such funds. But certain expenditure
has been incurred for which funds do not seem to be forthcoming, and
for which, so far as appears, there was no previous sanction of the
Legislature. I am inclined to think that the best way will be to
acknowledge together both despatches and then either to conclude, as
in the present draft, with a general expression of regret, or else if
Lord Carnarvon deems some further notice of the matter necessary, to
say that if any expenditure has been
incurred incurred which was not lawfully
sanctioned, it will be necessary to apply to the United Legislature
of the two Colonies to remedy the defect.
Lord Carnarvon
Will it not be better now to acknowledge both Despatches informing
you of the failure of the Supply the unauthorized expenditure waiting
legalization, & reduction of expenditure & express both regret over
such proceedings & desire that the irregularity may be immediately
covered.
One more cause of difficulty and confusion added to a subject already
difficult & confused enough. Both despatches may be acknowledged
together: but a distinct notice of this most irregular proceeding is
I think necessary. It s
d be stated that I do not fully understand
from
the communications before me the precise nature & extent &
circumstances under which it
wd appear that public money has been
anticipated without the proper legislative sanction. That if this be
so a great irregularity has been committed & that I wish for
information on the subject without delay.
This to be drafted at once for tomorrows mail.
Documents enclosed with the main document (not transcribed)
R.W. Torrens, Clerk of the House, to President of the Council,
16 August 1866, forwarding copy of the supply bill for
1866 as
passed by the legislative assembly.
Copy of the bill as noted above, with schedules appended
(fifteen pages).
Newspaper clippings,
Colonist and Chronicle, 29 and 30 August and 1, 3, 4 and 6
September 1866, and
Evening Telegraph, 29 August and 2, 4 and 7 September 1866,
reporting on various aspects of the supply bill as noted above.
Resolution passed by the Legislative Council, 30 August
1866, agreeing to the sum of money voted in the bill but declining
to accept the accompanying schedule "inasmuch as that
Schedule Contained numerous tacks or Clauses wholly foreign to the
principle and purpose of the Bill to which it was attached."
"Extract from the Minutes of Proceedings of the Legislative
Council of the Colony of
Vancouver Island of the
1st September
1866," discussing the supply bill as submitted by the assembly.
Resolution passed by the Legislative Assembly, 28 August 1866,
advising that "the Expenditure of any money by the executive except
that Expenditure [which] has been previously sanctioned by the
Legislature will not meet with the approval of this House."
Newspaper clipping,
Colonist and Chronicle, 30 August 1866, reporting the debate on
the resolution as noted above.
Other documents included in the file
People in this document
Adderley, C. B.
Blackwood, Arthur Johnstone
Cardwell, Edward
Carnarvon, Earl
Elliot, Thomas Frederick
Jadis, Vane
Kennedy, Arthur
Rogers, Baron Blachford Frederic
Seymour, Governor Frederick
Torrens, R. W.
Places in this document
Vancouver Island