No. 43
[10581, CO 60/13, p. 413; received 30 October
]
3 September 1862
Adverting to my Despatch of the 2nd Ultimo No 38, and
to Your Grace's Despatch No 131 of the 10th June, I have the
honor to forward herewith "The British Columbian Loan Act 1862,"
together with the AttorneyGenerals Generals report upon the same.
2. This Act repeals the "British Columbia Roads Loan Act 1861," "The British Columbia Roads Loan Act 1862," and the
"Temporary Loan Act 1862," and authorizes the Governor of British Columbia to borrow the sum of Fifty Thousand pounds Sterling (£50,000),
upon Debentures secured upon the General Revenue of the Colony, such Debentures to be redeemable at the expiration of ten yearsfrom
from the 1st January 1863, and to bear interest at the rate of Six per cent per annum payable half yearly.
3. I think it will be found that all the recommendations of
the Board of Treasury which Your Grace was so kind as to convey
to me in your Despatch of the 16th June are embodied in the Act now forwarded, and I therefore most earnestly trust that it
may be confirmed at the earliest possible period,the the more
especially as I have been most fortunate in concluding arrangements
for the negociation of the whole Loan upon such terms as are most
favorable to the Colony under its present financial condition,
and which arrangements greatly relieve me from immediate financial
pressure, and from the harassing anxiety I have experienced for
some months past, as I have already explained at length to Your
Grace in previous Despatches.
The
4. The arrangements to which I allude have been made with
the Chartered Bank of British Columbia and Vancouver's Island,
which has recently established itself at Victoria. I forward
herewith a letter from the Agent in these Colonies of that
institution in which he offers to take the whole Loan at par
by giving Bills from time to time as they may be required upon
the London Office; the sums so advanced by Bill to bearinterest interest
at the rate of 12 per Cent per Annum until repaid by the delivery
of the Debentures to the London Office, a corresponding rate of
interest being allowed by the Bank upon any sums represented by
Debentures remaining in their hands undrawn.
5. Money to carry on the works actually contracted for in
opening the lines of communication as far as Alexandria was an
absolute necessity. The least rate of interest at which it
could be obtained on the spot was 18 per Cent per Annum, andonly only
a few thousand could have been temporarily borrowed at that
rate, or even at the rate of Twenty four per Cent per annum.
Thousands of persons have left Carribou this year in consequence
not only of the enormous cost of provisions, but also to avoid
starvation from their absolute dearth. The remedy must be applied
at any cost, and the work on the roads could not be delayed for
a day. Your Grace can therefore readily conceive the satisfaction
withwhich which I perused the offer of the
Incorporated Bank of British Columbia & Vancouver's Island, and the promptitude with which I
closed with it.
6. So soon as Her Majesty's Assent to the Act has been obtained,
I beg that Your Grace will have the kindness to communicate the
circumstance to the Agents General for the Crown Colonies and
cause them to have the Debentures prepared with the least possibledelay
delay and issued to the Chartered Bank of British Columbia and Vancouver's Island, 80 Lombard Street.
I have the honor to be
My Lord Duke
Your Grace's most obedient
and humble Servant
James Douglas