The abstract furnished with this letter shows the present state of
                     the account between the Agents General and the Governor
of
 of Vancouver
                     Island. A sum of £667 is due to the Agents General and a sum of
                     £231.19/- to the 
Board of Trade. 
M Douglas is so careless (on
                     the best construction) and so unreliable about his pecuniary
                     arrangements, that I believe that it is not only just in itself, but
                     desirable as a lesson, to repay out of the Vancouver money now in our
                     hands the money which has been disbursed for that Colony. I would
                     recommend that the Agents be instructed to repay to themselves the
                     sum which is due to them of £667, and to pay to the 
Board of Trade
                     the sum which is due to that Department. I should transmit to the
                     Governor a copy of the present account, I should inform him that the
                     above course has been taken, and I should point out that after
                     providing for the Bills from him now under acceptance, and for the
                     liability of £6,000 for the Steam Tug which the Colonial 
Gov is
                     about to purchase, as well as about £74 for incidental expenses, the
                     balance that remains available is reduced to £14,975. I should tell
                     him that up to that limit such Bills as may arrive from him will be
                     accepted and paid, but that he is to understand that he is strictly
                     prohibited from drawing for any more, and that if Bills arrive from
                     him beyond the above mentioned amount, so that there will be no
                     disposable funds in this Country to meet them,
those
 those Bills will be
                     refused and the Colonial 
Gov will have to bear all the consequences.