No. 157 287, CO 60/41, p. 293; received 9 January 1871 10th December 1870 My Lord,

I have had the honor to receive Your Lordship's Despatch No 24 of the 22nd September, forwarding a Copy of the reply which you had received from the General Post Office, assenting to my recommendation that the Money Order System shouldbe be extended to this Colony.

2. With reference to the enquiries contained in Mr Parkhurst's Letter, I have the honor to state that—

1. In the first instance it will be sufficient for the requirements of the Colony to make Orders payable at the Offices in Victoria, New Westminster, and Cariboo.

2. I would recommend that the rate of Commission should be the same as in the case of theDominion Dominion of Canada, of which British Columbia will probably soon form a part—viz:

For sums not exceeding Two pounds, one shilling. For sums above Two, but not exceeding five pounds, two shillings; from Five to seven pounds, three shillings, and from Seven to Ten pounds, four shillings. But I would leave this to be settled in accordance with the general experience of the General Post Office.

3.

3. To the proposed Rules generally this Government will readily assent. But with regard to the eighteenth, I submit that remittances by every Mail to meet Drafts would be unnecessary in the case of this Colony; as the General Post Office has periodically to make payment on our account to the Crown Agents, in respect of the subsidy for carriage of the Mails to and from San Francisco which is paid herein in monthly instalments from the Colonial Treasury. The amount of Money Orders is not likely to be large, and the Imperial Office can then deduct it from the payments due from that Department to the Colony.

I have the honor to be, My Lord, Your most obedient Humble Servant A. Musgrave