Colonial Despatches

The Lords Commissioners of Her Majestys Treasury have had before them Mr Elliots letter of 5th Instant, enclosing correspondence with the Governor of Vancouvers Island respecting the disposal in that Island of the Revenue arising from Fines Fees and Forfeitures and Their Lordships desire me to request you to state to the Earl of Carnarvon that They are not in possession of any information in regard to the disposal of the Crown Revenue as distinct fromthe the general Revenue of that Island, or of the charges assigned to each respectively.

The principle that has been acted upon, and on which their Lordship's opinion is requested, appears at first sight to be equitable namely that when the cost of a particular Department is defrayed out of Crown Revenues, the fees &c received in that Department should be credited to those Revenues; but that when the general Revenue pays all the expenses of a Department the fees received in that Department should be placed to the credit of the General Revenue.

But if fines, fees and forfeituresare are (under that denomination) considered as part of the Crown Revenue (which appears from Mr Ker's letter to be the case) there would in Their Lordship's opinion be an anomaly in crediting them to the general Revenue, because they are received through a department the cost of which is borne on the General Revenue, while the other Receipts of Crown Revenue not coming through a similar course are credited to the account of Crown Revenue.

Under this arrangement the receipts of Crown Revenue would be credited, part to the General Revenue, and part to the Crown Revenue, which would create a difficulty in making up distinct accounts of these funds respectively.

If fines, fees and forfeitures are to be credited to the general Revenue under the circumstances above stated the preferable arrangement would be to consider them as part of the general Revenue provided that such a course is not inconsistent with the general financial arrangement of Vancouvers Island.

But My Lords must decline to express any opinion until They are furnished with full information as to the distinction between the Crown and General Revenues.