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