No. 16
[LAC, RG7, G8C/7, p. 60 (CO 398/1, p. 204)
]
Downing Street
7 February 1859
Sir,
I have had under my consideration your Despatch No 7 of the
27th of October, on the disposal of public land in VanCouver's
Island and in British Columbia.
The lowest price of Country lands in VanCouver's Island would
appear to have been £1 per acre, and I think that the same may with
propriety be adoptedin in Frasers River and the other Mining Districts for
which you have suggested the adoption of this price. I shall not object
to your naming, if you see good practical reasons for that course either
in order to increase the attractions to new Settlers or on account of
the rates charged for Land in the adjacent territory of the United
States, a lower upset price than £1 for ordinary Country lands in other
Districts, but I think that any such price should be general so as not
to have a great variety of rates, and I would also point out to you that
greatcaution caution should be exercised in introducing such distinctions, lest
by creating artificial inducements, they should interfere with the
course of settlement which would be dictated by the natural advantages
of the Country.
One principal question raised in the Report which you have
furnished is whether to adopt the plan of Sale by auction or that of
sale at a fixed price. The advantages of Sale by Auction is that it
forms the best available precaution against parting with the land at an
inadequate price, and that it conclusivelyprevents prevents both the occurrence
and even the suspicion or imputation of any favoritism or irregularity
in the disposal of the public property. The objections to auction are
that it may discourage enterprize by exposing the discoverer of eligible
lands to be outbid at their Sale, and that unless well regulated it may
involve a delay in affording purchasers an opportunity to obtain the
lots they desire. Looking however to the inestimable advantage of
perfect confidence in the purity of the land administration, Myown own
opinion is that Sale by Auction is the best system, and that most of the
objections to it might be obviated by the adoption of a rule which is
very common in other Colonies, namely, that ordinary Country lots, after
once they have been exposed to Sale and not purchased, may be bought by a
fresh applicant at the upset price as a fixed price. This you will
observe will always afford a large quantity of Common land ready for
appropriation by any Settler who is unwilling to wait for a periodical
auction.
The reasons for submitting lots tocompetition competition are, I need scarcely observe, doubly strong in the case of town or suburban lots.
Another question of importance, and one on which a flood of light
has been thrown by experience in other Colonies, is whether payment for
the land should be prompt or on the contrary allowed to be made in
instalments. I have not a doubt myself, from the wide experience which
has been acquired on this subject, that prompt payment is the proper
rule. It is the best indication of a purchaser's being really possessed
of means to cultivatehis his lot, it avoids harrassing the Government with
the existence of a whole population of small debtors from whom it is next
to impossible to collect their dues, and above all it maintains a
sounder state of Society by not encouraging the premature conversion
into petty and impoverished land owners of those who ought to be
Laborers.
The size of lots is a matter which I must leave you to determine
with the advice of Coll Moody, merely stating that I do not myself see
any objection to adopting for Country lots one sixth orone one eighth of a
square mile, that is to say 70 or 80 acres. The last mentioned size was
adopted with much convenience in creating the flourishing settlement of
South Australia. Town lots should of course be much smaller so as to
suit the convenience of Purchasers. In most new Colonies formed within
the last 20 years, such lots have produced very high prices, seldom
falling below a rate which would amount to £100, and often reaching that
of £1000 per acre.
The reservation of Mineral lands, and the disposal of them on
differentterms terms from Agricultural lands are proper. In respect to Coal
and the baser metals the best arrangement would probably be to
established liberal regulations for encouraging explorations and for
leasing to the discoverer lands under which Minerals may be discovered
for a certain period and at a certain small royalty. In several Colonies
the terms for Mineral lands are, a Lease of 21 years at a Royalty of
1/15th Whether those terms would be sufficiently favorable in
British Columbia, or whether it would be desirableto to make them easier by
postponing the payment or reducing the amount of the Royalty, I leave it
to you to decide. I mention them only as shewing what has been
considered fair to all parties in other of the British Colonies. But it
is obvious that the Revenue to be derived from such lands is not the
most important element of the question, and that it should not be allowed
to interfere with whatever may be necessary to stimulate the development
of the natural resources of the Colony. In case of more than one
applicationfor for the same Mineral land the lease should be put up to
auction, the biddings being, not on the amount of rent or royalty, but
on a premium to be paid down for the lease.
Auriferous lands are distinct from what are usually termed Mineral
lands, and must be dealt with on different principles. In the case of
Coal and the baser Metals the possession passes to the Owner of the
surface soil unless a special reservation is inserted in the Crown
Grant. In the case of Gold and silver the right remains in the Crown
whetherthere there is any reservation in the grant or not. I do not feel
that much assistance can be afforded to you in this matter by any
suggestions from home. The question to be decided is not so much what
is the best mode of dealing with auriferous lands and securing a revenue
from Gold digging, as what is the most practicable and satisfactory plan
having regard to the means at the Governors disposal. Upon this point
resident authorities alone can form a competent opinion.
I refer you to my former Despatch of the 14th October as to my
own anticipations of the difficulties to which sooner or later the system
of licences for digging is exposed, but unquestionably so long as these
difficulties do not occur, the system has the advantage of promptitude
in the collection of a Revenue. I have been glad to observe in your
Despatch of 14th December that your experience already bears out the
opinion I before conveyed to you, as to the great fiscal resource to be
found in a duty on Gold exports.
The time at which a trigonometrical survey may be commenced
consistentlywith with any more urgent demands on the Surveyors for the
practical wants of Settlers, is a question which will best be determined
by you on the advice of Colonel Moody.
The publication of Maps and of other information concerning the
lands open for settlement will be very useful, and you will no doubt
furnish the Home Government with Copies of all such documents.
The establishment of a series of meteorological observations will be
muchfacilitated facilitated by the presence in the Colony of a body of educated Officers and Men, to many of whom, probably such observations are
familiar.
I have the honor to be
Sir,
Your most obedient
humble Servant
E B Lytton