Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Julyan, Penrose Goodchild to Rogers, Frederic 16 September 1863, CO 60:17, no. 9051, 122.
Abstract
Public Offices document.
Minutes (5), Enclosures (untranscribed) (1), Other documents (2).
Julyan to Rogers (Permanent Under-Secretary)
I have the honor to report, for the information of His
Grace the Duke of Newcastle, that the Crown Agents for the
Colonies, acting under the authority conveyed to them in your
letter of the 23rd of July last, offered to public competition
on the 13th Ultimo, the Debentures authorized to be issued
under the British Columbia Loan Act of 1863.
The
The tenders received at and above the minimum price (104)
amounted in the aggregate to £41,200, from which must be
deducted £6000 offered by two defaulters, leaving the Net
amount sold £35,200.
The average premium produced on this amount was £5.0.9 per cent.
The balance, amounting to £14,800, has also been disposed
of, on tenders subsequently received, at £4.0.6 1/2 premium,
making the average premium on the whole Loan £4.16.2 per Cent.
The securities of Colonies placed in such close proximity
to the Federal States of America, as British Columbia is,
are by no means in favor with the English public just now,
and the Crown Agents think themselves fortunate, under the
circumstances, in having been ableto
to negotiate the whole of
the Loan so promptly and on such excellent terms.
to negotiate the whole of
the Loan so promptly and on such excellent terms.
The details of the whole proceedings will be found in
the enclosed Schedule.
It may not be inappropriate here to refer you to my letter
of the 20th December last, relative to the negotiation, in the Colony, of a previous Loan for a similar amount,
and
to offer some few observations on the reply of Governor Douglas forwarded
to the Crown Agents in your letter of 13th May following.
In my letter referred to an opinion was expressed that
from 4 to 5 per cent more on that Loan would probably have
been realized, had a certain course, therein pointed out, been adopted.
This opinion has been verified very closely, seeing that
the actualdifference
difference is £4.16.2.
difference is £4.16.2.
According to the statement which accompanies Governor
Douglas' Despatch the Net proceeds of the Loan disposed of
in the Colony was £49,162.3.1, while the Net proceeds of
that disposed of in this Country, as shown by the enclosed
Schedule is £52,153.19.0, being a difference in favor of the
latter of £2991.15.11.
In the former case the Government only received payment
for their Debentures at intervals extending from 20th August 1862 to 6th February 1863, whereas in the latter case the money was all available at once, and such portion
of it as
is not already drawn against will yield Interest until required;
so that there will be a still further sum in favor of the last
negotiation to be eventuallyadded
added to the above £2991.15.11.
added to the above £2991.15.11.
The Governor draws a comparison in his Despatch between
the negotiation of the Vancouver Island Loan by the Crown
Agents and the re-sale in London of the first British Columbia
Loan by the Bank of British Columbia, from which he concludes
that the terms realized for the former were not much better
than those obtained by the Bank for the latter. At the time
that conclusion was come to the transaction, so far as the
Vancouver Loan was concerned, had only commenced: it is now
concluded; and the result is—as shown by the detailed
statement enclosed—the realization on the whole amount of
an average premium of about £5.8.0 per cent; while the Bank
have up to the present time, with their minimum of 103 1/2,
been unable toplace
place the whole of the 1st Loan on the
market, and have still Debentures in hand representing the
comparatively large sum of £17,600.
place the whole of the 1st Loan on the
market, and have still Debentures in hand representing the
comparatively large sum of £17,600.
There is one other point in the Governor's Despatch calling
for some observation.
It is stated in the last paragraph that
the Drafts of the Agents General could not have been disposed of in
the Colony at any better rates than the Drafts of the Bank of British Columbia. We generally obtain the best rates for our Drafts
from the American House of Wells, Fargo & Co, the great Express
Agents. A Draft upon the Agents General recently offered to
them for Sale on Vancouver Island account was questioned, and,
I believe, objected to, as they had no knowledge of such paper.
The Drafts of the Bank of British Columbia are readily taken
by them, and command as high rates asthe
the drafts upon Her
Majesty's Paymaster General.
the drafts upon Her
Majesty's Paymaster General.
The Drafts referred to in my former letter, as likely to
command a better price than those of a newly established Bank,
were not the "Drafts of the Agents General" but the Drafts of
the British Columbia Government drawn on the Agents of the Crown
in London, any objection therefore to such Drafts can only
refer to the "Drawee" in a minor degree, and is in reality
throwing doubts on the solvency of the "Drawer", i.e. the
Government of British Columbia.
The Bank Drafts in question were it appears purchased from
the Government as follows:
By the Bank of British North America £22,594. 4.10
Wells, Fargo & Co 21.905.15. 2
Colonial Treasurer 500. 0. 0
Other persons 5,000. 0. 0
£50,000. 0. 0
ToBy the Bank of British North America £22,594. 4.10
Wells, Fargo & Co 21.905.15. 2
Colonial Treasurer 500. 0. 0
Other persons 5,000. 0. 0
£50,000. 0. 0
To the Bank of British North America and to the Bank of
British Columbia—indeed to all Banks having London Agencies—the
Crown Agents are well known, and they have also had
business transactions with Messrs Well, Fargo & Co. The latter
could therefore have easily satisfied themselves as to whom
the Crown Agents were, by enquiry at either of the local Banks.
It would appear however that they have now got over
their scruples both as regards the "Drawer" and the "Drawee",
as out of the £30,000 of Government Drafts already accepted
against the Loan just disposed of, no less than £9500 are
in favor of Wells, Fargo & Co, and the remainder appear to
have been taken by the Local Banks, and by other persons who
were purchasers of the Bank Bills receivedby
by the Colony in
payment for their first Loan.
by the Colony in
payment for their first Loan.
Minutes by CO staff
Sir F. Rogers
I do not know that it is essential to communicate this report to the Treasury; but there may be some convenience in doing so. If it be decided to send it there the Governor's desph of the 13 May last shd also be forwarded.
I do not know that it is essential to communicate this report to the Treasury; but there may be some convenience in doing so. If it be decided to send it there the Governor's desph of the 13 May last shd also be forwarded.
Copy, hereafter, at any rate, to the Governor for his infn.
It has been lately determined that the Colony, &
not this Country should pay the sum of £10,704—on account
of the Engineers: & we could avail ourselves of this
oppy of a balance on hand to pay the Treasury the
advance they have made to the above extent: but if we were
to take that course we shd cripple the Governor in his
all important road making schemes. I think that the inconvenience
to the T-y of waiting a little for their money is a much
less evil than it wd be to the Colony to have £10,000
raised specially & exclusively for the construction of
roads, diverted from its purpose. Wd it be advisable
to mention to the T-y that the Duke of Newcastle has instructed
the Govr to pay the claim on acct of the Engineers: &
that His Grace wd deprecate settling the acct out of this
balance.
balance.
ABd
17 Sepr
Mr Fortescue
I would send copy of correspondence to the Try and also copy of this letter to the Govr as Mr Blackwood suggests.
I would send copy of correspondence to the Try and also copy of this letter to the Govr as Mr Blackwood suggests.
But I trouble you with this in order that you may consider
whether £10,704 of this shd be impounded or not (& if not
whether a sentence shd be added to the letter to Try in
the terms suggested by Mr Blackwood.)
FR
18/9
Duke of Newcastle
I have not the whole case sufficiently before me to give a confident opinion upon it. But I do not like the idea of impounding a portion of this Loan without notice to the Governor, which, as far as I am aware, has not been given. He might be instructed to endeavour to make such
arrangements as would
enable him to leave undrawn a portion of the proceeds of the
loan sufficient to meet the charge for the R. Engineers—i.e.—(I
suppose) £10,704.
I have not the whole case sufficiently before me to give a confident opinion upon it. But I do not like the idea of impounding a portion of this Loan without notice to the Governor, which, as far as I am aware, has not been given. He might be instructed to endeavour to make such
arrangements as would
enable him to leave undrawn a portion of the proceeds of the
loan sufficient to meet the charge for the R. Engineers—i.e.—(I
suppose) £10,704.
CF
21
This sum should on no account be abstracted from the purposes
for which the Loan was raised. Upon the early completion
of the roads depends the prosperity of the Colony and the means
of defraying this and other demands. The golden eggs will be surely
forthcoming if we do not kill the goose.
N
25
I have ascertained at the Treasury that they have no wish or
intention to repay themselves this sum of 10,704 out of the
balance of the Loan: & therefore it will be unadvisable to say
anything to them which wd make them suppose we imputed such
an idea to them.
ABd
29/S
Other documents included in the file
Rogers to G.A. Hamilton, Treasury, 8 October 1863, forwarding letter from Crown Agents and a "detailed statement of their negotiation of the loan of £50,000 authorized
by the British Columbia Loan Act of 1863."
Documents enclosed with the main document (not transcribed)
Statement not in file.