Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch from London
Pelham-Clinton, Henry Pelham Fiennes to Douglas, James 18 December 1862, NAC RG7:G8C/3, 160.
Abstract
Despatch from London.
Enclosures (transcribed) (1), Enclosures (untranscribed) (1), Marginalia (1).
Newcastle informs Douglas that
The Vancouver Island Road and Harbour Loan Act 1862and
The Vancouver Island Temporary Debenture Loan Act 1862have been approved, and forwards the Treasury's concerns about the ability of the colony to service these debts. The Treasury warns that it will not provide assistance or accept responsibility should the colony default.
No. 122
Downing Street
18 December 1862
Sir,
With reference to your despatch No. 47 of the 8th of September
last enclosing two Acts of the Legislature of Vancouver Island enabling
you to borrow sums not exceeding £40,000 and £15,000 respectively upon
Colonial Government Debentures, I have the honourto
to apprize you of my
intention to advise Her Majesty to confirm these Acts, and to enclose
for your in formation and guidance copy of a letter from the Board of
Treasury on the subject.
to apprize you of my
intention to advise Her Majesty to confirm these Acts, and to enclose
for your in formation and guidance copy of a letter from the Board of
Treasury on the subject.
The Agents General for Crown Colonies have been requested to
furnish the Report suggested bythe
the Board of Treasury.
the Board of Treasury.
Governor Douglas C.B.
Documents enclosed with the main document (not transcribed)
F. Peel and F. Rogers, Treasury, to Colonial Office, 4 December 1862,
approving the acts but requesting the Agents General to report on how they
should be compensated for services rendered.
Documents enclosed with the main document (transcribed)
163
Treasury Chambers
4th December 1862
4th December 1862
Sir,
With reference to your letter of the 19th ultimo, enclosing two acts of the Legislature of Vancouvers Island, entitled respectively
"The Vancouver Island Road and Harbour Loan Act 1862" and
"The Vancouver Island Temporary Debenture Loan Act 1862"
I am directed by the Lords CommD of H. M. Treasury to acquaint you, for the information of the Duke of Newcastle that 
their Lordship will not object to the confirmation of the two Acts in Question, but
they regret the absence of any information of a recent date respecting the financial
condition of the Colony - as without it they can form no opinion as to the adequacy
of the security provided for payment of the interest and for the redemption of the
Loan.
their Lordship will not object to the confirmation of the two Acts in Question, but
they regret the absence of any information of a recent date respecting the financial
condition of the Colony - as without it they can form no opinion as to the adequacy
of the security provided for payment of the interest and for the redemption of the
Loan.With regard to the negotiation of the Loan by the Agents General for Crown
Crown Colonies, and the signature by them, on behalf of the Colonial Government of
Vancouver Island, of the Debentures to be issued in this country, My Lords desire that there should
be a distinct understanding that in thus borrowing money for a Government which possesses
the control over its own general revenue, without the supervision of H. M. Govt the Agents General are acting
acting merely in the name of the Local Government can come under no responsibility
on account of their transactions in that capacity or otherwise in connection with
the Loan.
Crown Colonies, and the signature by them, on behalf of the Colonial Government of
Vancouver Island, of the Debentures to be issued in this country, My Lords desire that there should
be a distinct understanding that in thus borrowing money for a Government which possesses
the control over its own general revenue, without the supervision of H. M. Govt the Agents General are acting
acting merely in the name of the Local Government can come under no responsibility
on account of their transactions in that capacity or otherwise in connection with
the Loan.My Lords are of opinion that the Agents General should be called upon for a Report
as to the mode in which the Govt of Vancouver Island should contribute towards the Expenses of the Agency for service to be rendered in
respect to the Proposed Loan - I am &c
(sig) F: Peel