Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Kennedy, Arthur to Cardwell, Edward 26 June 1866, CO 305:28, no. 7606, 480.
Abstract
Kennedy, Arthur to Cardwell, Edward 26 June 1866, CO 305:28, no. 7606, 480.
Despatch to London.
Minutes (2), Enclosures (untranscribed) (4), Other documents (1).
No. 45, Financial
26th June 1866
Sir
In the state of uncertainty which exists as to what the Legislative
Assembly of this Colony will or will not do in reference to the
finances I deem it my duty to keep you informed by placing the
following Address from the Assembly and my replythereto
thereto before you.
thereto before you.
You will observe that on the 21st May the Legislative Assembly
called for a Return of all moneys borrowed from the banks in 1865-6,
and also "A Return showing the authority under which the Governor
negotiated such loans respectively."
My reply dated 26th May 1866 fully answers both these questions.
The Bank of British North America taking alarm I presume at the
doubts thrown upon thelegality
legality of my proceedings by the Assembly
addressed the letter (herewith) dated 31st May 1866 to the Colonial
Secretary stopping all further credit.
legality of my proceedings by the Assembly
addressed the letter (herewith) dated 31st May 1866 to the Colonial
Secretary stopping all further credit.
I enclosed a copy of this letter in my confidential Message dated
1st June 1866. I have not received any reply to either of my
communications to the Assembly. The necessary consequence has been a
stoppage of payment at the Treasury since the first of June a fact of
which the Assembly are quiteaware
aware.
aware.
I observe from newspaper reports (being the only information on the
subject which has reached me,) that a Bill authorizing a loan of
$90,000 has passed a Second Reading, but when it will become law I am
unable to anticipate.
This Bill if it become law will cover the debt to the Bank and leave
a margin to carry on the public service till the Real Estate and
other taxesare
are received, the machinery for assessing and collecting
which is radically faulty and requiring amendment by law.
are received, the machinery for assessing and collecting
which is radically faulty and requiring amendment by law.
You will see from my Message dated May 26th that I have kept the
Assembly fully informed of the financial condition of the Colony, and
I may add that I have in every step acted with the advice and
concurrence of my Executive Council.
The Assembly has been inSession
Session since last November and up to the
present time has failed to propose or pass any rational measure for
providing ways and means for carrying on the Government of the
Colony. There is the less excuse for this state of things inasmuch
as the audit of the accounts for 1865 shows that the total amount
voted by the Assembly for the service of the year amounted to
$313,558 while the expenditure reached$
$267,294 being $46,264 less
than the sum voted.
Session since last November and up to the
present time has failed to propose or pass any rational measure for
providing ways and means for carrying on the Government of the
Colony. There is the less excuse for this state of things inasmuch
as the audit of the accounts for 1865 shows that the total amount
voted by the Assembly for the service of the year amounted to
$313,558 while the expenditure reached$
$267,294 being $46,264 less
than the sum voted.
Minutes by CO staff
Sir F. Rogers
Acke and refer to the Act of Parlt by means of which future financial difficulties will, it is believed, be avoided.
Acke and refer to the Act of Parlt by means of which future financial difficulties will, it is believed, be avoided.
ABd
8 Augt
Documents enclosed with the main document (not transcribed)
Resolution passed by Legislative Assembly, 21 May 1866, asking
the governor to forward certain financial returns to the house,
signed by R.W. Torrens, Clerk of the House.
Kennedy to Legislative Assembly, unnamed newspaper clipping, 26
May 1866, providing details of the money currently owed to the Bank
of British North America and describing his various communications
to the house which failed to result in any relief of
the outstanding financial difficulties of the colony.
Kennedy to Speaker of the Legislative Assembly, 1 June 1866,
forwarding a letter from the manager of the Bank of British North
America and declining to take any further responsibility for carrying
on the public service "without the distinctly expressed authority of
the Legislature."
J.B. Shepherd, Manager, to W.A.G. Young, Colonial Secretary, 31
May 1866, calling attention to the government's large overdraft
and advising that the bank could not allow the present amount
outstanding to be increased.
