Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Public Offices document
Childers, Hugh C. E. to Rogers, Frederic 19 April 1866, CO 60:26, no. 3899, 143.
Abstract
Childers, Hugh C. E. to Rogers, Frederic 19 April 1866, CO 60:26, no. 3899, 143.
Public Offices document.
Minutes (3), Other documents (3).
Childers to Rogers (Permanent Under-Secretary)
Treasury Chambers
19th April 1866
Sir
The Lords Commissoners of Her Majesty's Treasury have
had under Their consideration your letter of the 15th
November last, enclosing with other papers, the Report of
the Auditor General of British Columbia on the accounts of
that Colony for the year 1864.
Their Lordships have also had before Them the Colonial
Office letter of the 20th Ulto forwarding certain enclosures
which should have accompanied your letter of 30th September
last transmitting for the approval of this Board an Ordinance
No 9 of 1865 to apply the sum of £225,946.12.8 to the
GeneralService
Service of the Colony for that year.
Service of the Colony for that year.
My Lords desire me to state, for the information of Mr
Secretary Cardwell, that They will not further defer Their
Assent either to the Ordinance No 18 of 1864 or to the
Ordinance No 9 of 1865, but They think it necessary to add
that They give this assent more because of the inconvenience
of witholding Their sanction from an expenditure already
incurred, than because They are satisfied that the expenditure
has been prudently undertaken.
My Lords observe, from the Report of the Auditor General,
that though the Revenue Ordinances, Nos 9 and 18 of 1864,
appropriated £195,716 to the Service of that year, the actual
expenditure was £160,350.
The Revenue of that year, actually received, was however,
only
£104,865, against an "Estimated" revenue of £120,000,
leaving a deficiency of £55,485 to be met, according to the
statement of the Auditor General, out of the Loan of £100,000
authorized to be raised under Ordinance No 7 of 1864.
£104,865, against an "Estimated" revenue of £120,000,
leaving a deficiency of £55,485 to be met, according to the
statement of the Auditor General, out of the Loan of £100,000
authorized to be raised under Ordinance No 7 of 1864.
This Loan was not raised till April 1865 and then
produced less than £94,000 and, in consequence of the late
period at which it was raised, the expenditures of the years
1864 & 1865, which was mainly regulated by that Loan, has
become in some degree mixed up.
Their Lordships apprehend that it may be ultimately found
that some portion of the deficiency of 1864 may have been met
by Balances on the Loan of 1865, but They have no sufficient
information before Them to enable Them to come to any clear
understanding onthat
that point.
that point.
Accepting therefore the statement of the Auditor General,
that the whole of the deficiency of that year had to be met from
the Loan raised in 1865, it seems to My Lords that if, of the
liabilities of the Colony at the close of 1864 as set forth in
the statement which accompanied the Report of the Auditor
General, those are taken which it was necessary to meet in
1865, and some of which are directly provided for in the
Estimates of that year, an approximate notion may be formed of
the probable financial condition of the Colony at the close
of 1865, supposing that the actual expenditure within the
Colony of the different Departments for that year is actually
incurred. These liabilities appear to be as follow, Vizt
But to these Liabilities must be added 22,000, the amount
falling due within the year 1865, as Interest and Sinking Fund
on the Loans of 1862, 1863 & 1865, making a total Liability of £107,369, to be met in 1865, irrespective of the
actual Departmental expenditure within the Colony.
| Redemption of Bonds | £6,400 |
| Bills on Agents in anticipation of Loans raised in 1865 | 26,300 |
| Debt due to Bank of British Columbia | 27,210 |
 Brought forward |
£59,910 |
| Interest due to Bank | 559 |
| Drawback Refunds | 550 |
| Balance due to Agents on 31st December 1864 | 2,350 |
| Approximate Expenditure of 1864, not brought to accounts until 1865 | 22,000 |
| Total | £85,369 |
My Lords turn now to the Estimates of Revenue and
Expenditure transmitted for the year 1865, and They find
that the Revenue was estimated to produce £153,615.
From
From the fallacious nature of the Estimate for 1864,
My Lords would have been disinclined to admit the prudence
of an Estimate which calculated on a rise from £104,865—the
actual receipts of 1864—to £153,615 in 1865.
They observe, however, in the Return of Receipts and
Disbursements of the Colony which accompanied the Colonial
Office letter of 11th January last that the Return of
the Regular Revenue from Taxes and Duties for the 2nd
Quarter of the year was £39,511. It is possible, therefore,
that, although the Return for the previous Quarter appeared
to be so unfavorable, the Expectations as regards the
Revenue may in that year have been fulfilled, and if such
should be the case, My Lords readily admit that it would be
the best and most satisfactory justification for the Loan
Policy which has been sanctioned as regards this Colony.
Admitting
Admitting, therefore, though with considerable doubt,
the corrections of the Estimate of Revenue, the amount
applicable to the charges of the year 1865 will consist of:
| Revenue | £153,615 |
| Loan of April 1865 | 93,931 |
| Due by HM's Government on account of Regimental Pay Acct | 2,937 |
| Advances unaccounted for | 11,772 |
| Total | £262,255 |
On referring to the abstract of the Estimated Expenditure
for the year it appears that the amount to be expended by the
Departments within the Colony, as per items 1 to 12, inclusive,
and item No 15, is, in round numbers, £160,000, and if to
this be added the Liabilities, as stated above, it will appear
that the charges for the year will be £267,369, as against
resources amounting, under the most favorable circumstances,
to only £262,255.
My Lords are aware thatthe
the Estimates of the year were
framed previous to any intimation of the actual produce of the
Loan of April 1865, and They hope, from the terms of the
Governors despatch of 18th May 1865, that some portion
of the Estimated expenditure on Roads, &c, will, at least,
have been postponed until information was received as to the
produce of the Loan.
the Estimates of the year were
framed previous to any intimation of the actual produce of the
Loan of April 1865, and They hope, from the terms of the
Governors despatch of 18th May 1865, that some portion
of the Estimated expenditure on Roads, &c, will, at least,
have been postponed until information was received as to the
produce of the Loan.
At all events that Loan is now exhausted, and the Financial
affairs of the Colony will during the Current year have to be
conducted without the extraneous assistance which has of late
years been received, and there will be, in consequence, a
better opportunity of judging what its Financial condition now is.
With the interest and Sinking Funds of the Colonial Debt,
amounting already to over £20,000 a year, My Lords would
hesitatebefore
before They could sanction for the present any further
extension of the Loan system, and They think that the Governor
should be instructed that the expenditure of this year must
not be based on the supposition that he is again at Liberty
to incur a portion of it on the prospect of any new Loan,
and he should be warned as strongly as possible against that
hasty and sometimes ill-considered expenditure which a Loan
Policy is apt to encourage, but the continuance of which,
on the cessation of such Policy is seldom prevented without
more than ordinary care.
before They could sanction for the present any further
extension of the Loan system, and They think that the Governor
should be instructed that the expenditure of this year must
not be based on the supposition that he is again at Liberty
to incur a portion of it on the prospect of any new Loan,
and he should be warned as strongly as possible against that
hasty and sometimes ill-considered expenditure which a Loan
Policy is apt to encourage, but the continuance of which,
on the cessation of such Policy is seldom prevented without
more than ordinary care.
My Lords prefer to deal thus generally with the
expenditure of British Columbia during the two years in
question, partly on account of its being at this time a
matter of the past, and partlybecause
because They expect that
that of the Current year will afford better material for
an opinion as to the Financial condition of the Colony.
Their Lordships, however, request that They may receive as
early as possible, a full statement from the Governor of
the actual Receipts and Disbursements within the year 1865,
together with a full account of the Liabilities of the Colony
at the close of that period.
because They expect that
that of the Current year will afford better material for
an opinion as to the Financial condition of the Colony.
Their Lordships, however, request that They may receive as
early as possible, a full statement from the Governor of
the actual Receipts and Disbursements within the year 1865,
together with a full account of the Liabilities of the Colony
at the close of that period.
Minutes by CO staff
Mr Elliot
Young Colonies are very expensive Commodities to somebody. Fortunately this Colony has sources of wealth by means of which the "Mother Country" gets off without damage. But that is no reason why the Authorities of B.C. shd not be very seriously warned against incurring expenses which are not absolutely indispensable. If this Colony goes on exceeding its revenue in its infancy it will add to its liabilities as it grows older. One course I shd suggest being taken viz: to insist on
the Governor
obtaining the authority of the S. State previous to
inserting in the Estimate votes for services of an
unusual amount. I have already observed on 2173/65
upon the false position of the S.S. when an Estimate
comes home 12 months after its time containing items
for large expenditure for which no permission has been
obtained. I wd peremptorily forbid the Govr
inserting any item (above £2 or 300 a year) in the
Estimate unless the S.S. shall have sanctioned it.
Young Colonies are very expensive Commodities to somebody. Fortunately this Colony has sources of wealth by means of which the "Mother Country" gets off without damage. But that is no reason why the Authorities of B.C. shd not be very seriously warned against incurring expenses which are not absolutely indispensable. If this Colony goes on exceeding its revenue in its infancy it will add to its liabilities as it grows older. One course I shd suggest being taken viz: to insist on
the Governor
obtaining the authority of the S. State previous to
inserting in the Estimate votes for services of an
unusual amount. I have already observed on 2173/65
upon the false position of the S.S. when an Estimate
comes home 12 months after its time containing items
for large expenditure for which no permission has been
obtained. I wd peremptorily forbid the Govr
inserting any item (above £2 or 300 a year) in the
Estimate unless the S.S. shall have sanctioned it.
The Ordinances referred to in this Letter will have
now to be sanctioned—and a copy of the Letter sent out
with such observations on the subject generally as Mr
Cardwell may think proper to make.
ABd
20 Ap
This will be found a useful review by the Treasury of the
finances of the Colony. If their grounds are correct, they have
every reason for inculcating caution on the Colonial authorities,
and for fearing that otherwise serious difficulties may be in prospect.
I would suggest that, besides forwarding this to the Acting Governor,
a Copy should be sent to Mr Seymour, with some observations
(if Mr Cardwell takes that view)
on the necessity
of prudence in the financial arrangements of the Colony.
on the necessity
of prudence in the financial arrangements of the Colony.
TFE
20 April
A Draft, sustaining the wholesome views of the Treasury, should
be prepared: &, as suggested, Mr Seymour should be made aware of
what is passing. This last shd be done in time for him to have it
in his power to write, if he thinks proper, by the next mail.
EC
23
Other documents included in the file
Draft reply, Cardwell to Officer Administering the Government,
No. 22, 30 April 1866.
Draft reply, Cardwell to Officer Administering the Government,
No. 23, 30 April 1866.