No. 14, Financial
[4701, CO 60/15, p. 159; received 14 May
]
7 March 1863
I have the honour to enclose herewith for your Grace's sanction,
the Estimates for the Colony of British Columbia for the year 1863.
2. These documents have been prepared for some time, but I
did not forward themat at an earlier date, as I gleaned from your Grace's
Despatch No 135 of 1st August last, the Estimates for 1862 were
still under consideration, and I was desirous of possessing myself of
your Grace's views thereupon prior to the departure of the 1863
Estimates. I fear however that inconvenience may arise were I to delay
further, and I therefore nowtransmit transmit them.
3. Your Grace will observe that the proposed expenditure
exceeds the Revenue by £44,670. This is caused by the sum of
£70,000 being inserted for Roads. The detail to be found under
that head exhibits work that the Country most urgently demands—that
there is indeed an almost indispensablenecessity necessity should be
vigorously prosecuted in order to keep pace with the rapidly
increasing requirements of the Colony. Of such work however
only the most pressing has been admitted: there are numerous
other roads trails and improvements in the communication of
almost equal importance; but they must of necessity be deferred
until the incoming Revenuewill will pay the cost. As it is, the works that are named cannot be carried on without extraneous aid,
and that aid I have confidence will be sanctioned by your Grace upon
a consideration of the plain facts I presented in my Despatch
No 58 of the 15th December 1862. It is necessary for me here
to repeat the arguments I thenadvanced advanced in favor of the policy of
contracting another loan of £50,000. The enormous cost of
transport, is crippling enterprise, chilling immigration, and
retarding the development of the vast auriferous wealth of the Colony
upon which at the present moment its existence depends, and to
reduce that cost by thecontinued continued construction of roads in a
Colony so impracticable of access as British Columbia is, I conceive
not only an indispensable necessity and an imperative duty on the
part of the Government, but also a measure of sound policy, the
reproductive efforts of which, would, as I shewed in my
aforesaid Despatch, in their beneficial effects, be immediately realized.
4. In
4. In accordance with the instructions contained in your Grace's
Despatch No 120 of the 9th May 1862, I have made provision
in the Estimates for the salary of the Governor to be paid out of the
Colonial Revenue.
5. I have placed upon the Estimates a sum of £500 in aid of
the Admiralty Surveynow now being prosecuted on the coast of British
Columbia an accompanying copy of a letter from Captain Richards, recently
conducting the survey in these waters, explains the necessity
which existed for affording this aid, and under the circumstances
I did not hesitate to anticipate your Grace's approval to a sumso so
well applied.
6. I have also placed upon the Estimates the sum of £5052 to
reimburse Her Majesty's Government the advances by overdrafts &c. A
memorandum is enclosed with the Estimates exhibiting how this
amount is arrived at. I have omitted the sum of £10,704, which by
the Treasury letter of 16th June 1862,forwarded forwarded in your Grace's Despatch No 140, 16th
September last, was (as I believe under a misconception
of its nature) also required to be repaid this year on like account.
I feel sure that the explanation I rendered in my Depatch No 6,
10th January 1863 respecting the particular application of this sum, willhave have satisfied your Grace that it was purely a Military necessity,
independent of the Colony and therefore not chargeable to it.
7. In the preparation of the Estimates I have endeavoured to
avoid the superfluous detail as to the salaries objected to in
the Estimates submitted for the past year, and Ihave have sought to
afford the full information required upon other points. I trust
therefore that the present Estimates may be found satisfactory.
I have the honor to be
My Lord Duke,
Your Grace's most obedient
humble Servant
James Douglas
Mr Elliot
As the Governor has succeeded in getting two loans of
£50,000 each, there is nothing to object to in his appropriation
of £70,000 to Roads and Bridges. Instead, therefore, of his future
expenditures being in excess of revenue he will have money in hand.
I think he has stolen a march upon us in regard to his
own emoluments. He had £1200 a year from B.C. revenues, and £1800
from Parlt. B.C. now has to pay the whole £3000.
But we never intended that he should have £3000 plus £800
from V.C.I. It appears from documents which have been lately
undergoing examination that, under the authority of V.C.I. Supply
Acts this sum has been voted to the Governor for the last two
years. As one of those Acts has been sanctioned it may be said
that this salary has been tacitly recognized, and as the Governor
will shortly be superseded it may be best to say nothing on the subject.
You will see that the overdrafts, and the claim of the T-y
are provided for, which is satisfactory.
The Estimates are got up in a manner worthy of the best
machinery of an old Colony, instead of one of the latest.
ABd
15 May
See Minute annexed.
TFE
19 May
Mr Fortescue
You have to consider 1st the point about the Governor's
salary which is raised by Mr Blackwood, and 2nd the questions
which are raised by the despatch.
About the salary, I wished to ascertain the facts exactly,
and therefore requested Mr Ebden to furnish an abstract of the
correspondence which is annexed. I think it proves that the
Colonial Office transacted it's business rather indefinitely at
the time of creating these Governments, but not that we could
maintain any charge of deception against the Governor. You will
see that, strange to say, the Colonial Office never fixed his
salary at all, but after announcing a grant of £1800 from
Parliament, merely added that there would be no objection to a
large increase from local funds if they would bear it. The two
Governments were created, as you are aware, in 1859. Immediately
afterwards this office assented to an addition of £1200 fromthe the local funds of British Columbia. As to Vancouver Island we
cannot find any record in 1859, but in August, 1860, the Governor
sent home an Ordinance meant to provide £800 for his salary
whenever the Land Revenue may be given up, and he has since
sent home two successive Appropriation Acts, making the same
contingent provision of £800. It might have been better if he
had drawn attention more particularly to the matter and it
certainly would have been better if this Office had either fixed
his salary more distinctly beforehand, or else made some inquiry
about it afterwards, but I cannot think that the circumstances
would justify an accusation of anything fraudulent against the
Governor. For these reasons I entirely agree in the conclusion
that it is better to say nothing about the matter.
The Governor professes to provide for the Treasury claims,
but it remains to be seen whether the provision can be accepted
as satisfactory. Their demand was£17,000 £17,000 and he provided £5000, on the assumption that the remainder is either remitted or otherwise
disposed of.
I think that the proper course will be to send a copy of the
present despatch to the Treasury for their consideration, to say
that it will be observed that the Governor assumes that a claim
for £10,704, in respect of drafts for Royal Engineers in a former
year, will be remitted, together with the minor charge of £69
for the passage of the Bishop. On these points I would refer to
our letter of the 2nd April last in which the Duke of Newcastle
submitted to the Lords Comms of the Treasury some reasons why
these claims might perhaps be relinquished. If it be correct that
£2000 of the vote for the year 1863 is left undrawn, the Governor
may properly take credit for that sum, since this is the most
convenient method of his paying off a debt to the British Treasury,
but whether it be a fact that such an amount has remained undrawn
is a point which their Lordships can best ascertain. The excess
of £70,000 in the estimated expenditure is founded on the permission
which the Governorhas has received to raise two successive Loans of
£50,000 each.
TFE
29 May
Duke of Newcastle
There seems nothing more to be said about these points,
until the Try answer our letter of 2 April. I agree with
Mr Elliot.
CF
5 June
N
8
Mr Elliot
In a confidential despatch dated the 16th July 1858, the
GovtGovernment of B. Columbia with a salary of at least £1000 a year,
to be paid for the present by the Imperial Government, was
offered to Mr Douglas.
This GovtGovernment was to be held in conjunction with that of
Vancouver I, the salary of which as distinct from that
of the other Colony was left undetermined but with the assurance
that the administrator's interests would not be overlooked.
On the receipt of a despatch from Mr Douglas accepting
these appointments but objecting to the salary as too small, it
was intimated to him that Parliament would be asked to provide
a salary of £1800 a year for the Governor of
B. Columbia and Vancouver I, with the further intimation that
there would be no objection to a large increase of the salary
from local funds if able to bear the charge.
In two subsequent despatches—No 70 of the 23rd May 1859
and Confidential of the 13th February 1860—£1200 was sanctioned
as the contribution of B.C. to the Governors salary conditionally
upon the attainment of its Revenue to £50,000.
But no further steps appear to have been taken by the Home
GovtGovernment relative to the salary of Vancouver I GovtGovernment as
distinct from that of B.C.
And the Governor appears for some time to have drawn £1800
+ £1200 = £3000 as Governor of the two Colonies.
In the Colonial Estimates (of B. Columbia) for 1863, the
Governor has inserted £3000 for his salary, Parliament having
ceased to provide the £1800.
Apart from the ability of B.C. to bear the increased charge
there is the question how far the contribution of B.C. may have
to be modified by any on the part of V.I.
An act of the V.I. Legislature "for the payment of certain
salaries" passed in August 1860 and received in April 1861
provided conditionally for £800 for the Governor. This
act has only lately been returned from circulation but is
to be left unnoticed and is therefore in operation.
But in two subsequent Appropriation Acts, one for 1862
which has been allowed and another for 1863 not yet acted upon,
there has been inserted an item of £1800 [*](#marg1)for the Governor's salary.
RE