Despatch to London.
Minutes (3), Other documents (2), Marginalia (1).
Douglas requests that Victoria and Esquimalt remain free ports to encourage American trade while duties are imposed on imports to British Columbia which is benefitted by the discovery of gold on the Fraser River.
Included in this document is a draft reply from Newcastle to Douglas, 22 July 1859, instructing Douglas to proclaim Victoria a free port; and a draft from Fortescue to J. Booth, Board of Trade, 28 June 1859, forwarding copy of the despatch for observations.
No. 9
23 March 1859
I have the honor to acknowledge the receipt of your despatch of
the 7th January 1859 No 4, transmitting to me copy of a
letter, with its enclosure, from the Board of Trade, upon the
subject of declaring VictoriaVictoria in Vancouver's Island a Free Port,
and requesting me to give the subject my consideration and to
furnish you with my opinion as to the feasibility and expediency
of carrying out this suggestion.
2. In the course of my Official Correspondence with Her
Majesty's Government, and especially from the Ordinance issued
at Victoria on the 3rd of December last, Sec. 6, imposing
Customs Duties on Goods imported into British Columbia, it will
bebe seen that the Port of Victoria, including Esquimalt Harbour,
has been always maintained on the footing of a FREE PORT,
inasmuch as no Duties on Imports or Exports have been levied, as it
is open to the Trade of all Nations, and Vessels are not subject
to any charges except a small Entrance and Clearance Fee.
3. I may further add for your information that no duties on
Imports have, up to the present time, been levied at any other
Port of Vancouver's Island.
This4. This was not fortuitous or the effect of accident, but a
part of the policy by which it was sought to encourage and
foster Trade, and to make Victoria an Entrepôt for the Coast of
North west America.
5. That measure has manifestly an important bearing on British
Trade, and is deserving the serious attention of Her Majesty's
Government—especially as the discovery of Gold in British
Columbia has given so decided a development and promises toto add
so largely to the value of the trade of those Colonies.
6. Their present trade is, from circumstances, almost
exclusively confined to the Ports of Oregon and California, to
which the Produce of Vancouver's Island and the gold of British
Columbia are alike exported, the Returns received being
articles used for food, and manufactured goods. These goods are
necessarily burthened with the Customs and Municipal duties
levied in California, forming a charge of nearly 30 per cent on
their first cost.
7. The practical effect isis that the consumers in these
Colonies are thus made to pay a tax of nearly 30 per cent on all
articles imported from places in the United States.
8. The Victoria Custom House Returns for the six months ending
on the 31st day of December last, shew that the declared value
of imports at Victoria, from Ports in the United States, but
chiefly from California, during that period amounted to the sum
of £309,679.17.6, so that the charge of 30 per cent, thereon,
would come to £92,903, an amount which thus appears to have been
paid by the consumers in Vancouvers Islandandand British Columbia,
thereby increasing to that extent, the revenue of a Foreign Power.
9. It is evident that a direct trade with the producing
countries would save that outlay to the Colonies.
10. Our Legislative measures have therefore all been framed
with the view of opening a trade with England especially, and
also with the producing Countries of Europe and South America
to induce vessels coming from thence, by the absence of
restrictions and charges to bring their cargoes direct to this
Port; without stopping to discharge at any intermediate place.
11. That object gained, goods mightmight be sold here at a price but
little in advance of their first cost and freight.
12. That advance and freight would go to enrich the mother
country, to the extent at least, that the import trade would be
carried on in British Ships, and the consumers in Vancouver's
Island and British Columbia would reap the advantage of a large
consequent reduction, in the price of all the necessaries of life.
13. The whole export trade of Vancouver's Island and British
Columbia, would naturally fall into the hands of British
shipowner[s], and all shipments be mademade directly to the Ports of
Great Britain.
14. Our connection with California, as a source of supply,
would then cease.
15. The large and growing trade of British Columbia would fall
into the hands of British Merchants and Victoria from its
favourable position, and freedom from charges and Commercial
restrictions, would become a great store house of British Goods,
and the centre of a prodigious trade with the neighbouring
countries in the Pacific.
16. Those important advantages, are I conceive attainableattainable by
declaring Victoria, including Esquimalt a Free Port, and the
existing laws of the Colony are not repugnant to that measure,
which is so manifestly calculated to promote the interests of
British Commerce, and the material advancement of these
Colonies, that I beg most earnestly to recommend it for
adoption.
I have etc.
Minutes by CO staff
Lord Carnarvon
Copy to Bd of Trade with reference to our Lr of Jany/59.
I agree in the views here set forth by Govr Douglas. The only
question would be whether the Colony could be self-supporting
without Custom duties to be levied at Victoria. The Govr has,
I believe, been emphatically warned by my Predecessor that
England must not be expected to bear any part of the requisite
expenditure,