Colonial Despatches

I have had the honor of receiving your Despatch No 102 of the 17th February last, in reply to mine of the 14th November 1861, upon the subject of issuing from the Government Assay Office at New Westminster gold pieces of the value of the 10 and 20 Dollar AmericanCoins Coins, to avoid a recurrence of the inconvenience and loss which was last year sustained through the large amount of Bullion in the Market, and the small supply of Coins.

2. I thank Your Grace much for the valuable paper you enclose to me conveying the views of the Lords of the Treasury upon this subject, & I am gratified to find that in all the steps I have as yet taken in this matter I have, in anticipation, entirelyfollowed followed the course suggested by their Lordships.

3. The requisite apparatus and Dies have been procured from San Francisco, and I forward herewith for Your Grace's inspection two specimens (in silver) of the gold pieces we propose to issue. Should any further machinery be required, I shall not hesitate to avail myself of Your Grace's suggestion to make application to Your Department, if it shall appear that we cannot with equal advantagesupply supply ourselves from San Francisco.

4. I do not propose to issue the Pieces until the produce of this years mining Season commences to arrive. The Coin at present in circulation will then soon become absorbed, and the conversion of Bullion into Coin at the least rate of discount will I hope be then felt as such a boon, that the Government pieces will immediately obtain free currency without declaring them to be Legal Tender.

5. I am thankful forthe the suggestion that the circulation of the proposed pieces should be protected by enacting Penalties for the fabrication of the Assay Mark, or for attempting to pass them after they have been clipped or otherwise wilfully deteriorated, and I will not fail to give effect to it so soon as requisite.