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goldANDexportANDtax1.pdf
3/4/2018 The Colonial Despatches: 4582, CO 60/21, p. 51; received 15 May
http://bcgenesis.uvic.ca/getDoc.htm?id=B65008.scx&search=gold%20AND%20export%20AND%20tax#searchHit1 1/2
Despatch to London Seymour to Cardwell 4582, CO 60/21, p. 51; received 15 May
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 8
4th February 1865
Sir,
I have the honor to report that I opened the Legislative Session of this year on the 12th Ultimo by an address of which I enclose a copy. I add copies of the reply from the Council and of my rejoinder.
2. I am happy to say that
that the Legislative business is proceeding rapidly, and that my relations with the Council are of the most intimate and friendly description.
I have the honor to be, Sir, Your most obedient humble Servant Frederick Seymour
Minutes by CO staff
Mr Elliot Acknowledge receipt.
ABd 155 TFE 15/5 CF 16 EC 17
Documents enclosed with the main document (not transcribed)
Newspaper clipping, unnamed, no date, "Speech of His Excellency the Governor at the Opening of the Legislative Council, 12th January 1865."
This export duty was suggested. I scarcely think it was recommended at the very infancy of this Colony. And Govr Douglas was at first in favor of its adoption. But practical difficulties were found to arise, & the tax was not imposed. I doubt if it will be found to answer now in consequence of the facility which exists for smuggling gold across the border into the States.
ABd
Plan of Union with V.C. Island rejected.
[ABd]
Documents enclosed with the main document (not transcribed)
*
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Newspaper clipping, unnamed, no date, "Reply of Legislative Council to the Governor's Speech," signed by A.N. Birch, Presiding Member, 17 January 1865.
Newspaper clipping, unnamed, no date, "The Governor's Rejoinder," 17 January 1865.
Other documents included in the file
Draft reply, Cardwell to Seymour, No. 23, 19 May 1865.
Despatch to London:
Seymour to Cardwell, 4 February 1865, National Archives of the UK, 4582, CO 60/21. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B65008.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B65008.scx) . Accessed 4 March 2018.
Last modified: 14:48:14, 28/2/2018
goldANDexportANDtax2.pdf
3/4/2018 The Colonial Despatches: 6416, CO 60/21, p. 519; received 8 July
http://bcgenesis.uvic.ca/getDoc.htm?id=B65057.scx&search=gold%20AND%20export%20AND%20tax#searchHit1 1/2
* Reducing the duty thereby from 2s/ to 1s/6 an ounce.
** Not received with this Desp.
[?] 8/7/65
Despatch to London Seymour to Cardwell 6416, CO 60/21, p. 519; received 8 July
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No. 57
19th May 1865
Sir,
I have the honor to forward an Authenticated and two plain Copies of an Ordinance of the recent Session of the Legislature of this Colony, entitled;
No. 13. An Ordinance for
"for imposing a Duty on Gold." I add the Report of the Attorney General.
2. A large revenue is undoubtedly required in a Colony like this where gigantic public works have to be made to prevent the Gold Mines, its only developed source of wealth, at present, being abandoned by the migratory population who on this coast withdraw from labour in the winter and consider in the spring the relative
attractions attractions of the several Gold fields within their reach. Heavy taxation is imposed upon the few persons who have made of this Colony their home, and nearly the whole of the proceeds have been expended in facilitating access to the mines. The miners have hitherto paid no direct taxes except on the licence voluntarily taken out for the protection of claims of value. There appeared no more legitimate
mode mode of increasing the Revenue than by the passing of the present measure. The burden will fall heaviest upon those best able to pay, and will not be felt by those whose labours are unsuccessful.
3. A Gold Export tax has been more than once recommended by the Secretary of State. I beg to refer to Sir Edward Lytton's despatch No. 16 of 7th February 1859, and to the Duke of Newcastle's, No. 22
of of 19th September 1859.
4. As to the details of the measure, I would observe that the Miners of Cariboo think two shillings (2s/-) an ounce too high. But I have entered into an engagement with the Bank of British Columbia, (which has established an Assay Office in Cariboo) whereby they will be allowed to have their Gold re-assayed * in the Government Office in New Westminster on a payment
of of a penny an ounce, instead of two pence, on condition that they only deduct duty at the lower rate of one shilling and six pence (1s/6d) an ounce on Gold purchased by them on William's Creek. This agreement I have caused to be made public in Cariboo, thus the Miner will be protected against undue charge from the Bank. Had this agreement not been entered into the Bank would have been entitled to demand two shillings (2s/-) an ounce from the Miner, and
by by having the Gold reassayed in New Westminster at the ordinary rate of two pence an ounce, they would have been able by Law to make a profit of five pence an ounce upon such miners as had to sell their Gold to the Bank.
5. I proposed that the following rates of duty should be levied on Gold: Two shillings on raw Gold (2s/-). One shilling and nine pence (1s/9d) on Gold assayed by private persons
with with the consent of the Government. One shilling and six pence (1s/6d), on Gold passed through the Government Assay Department. end The Council was strong against the second proposal and I withdrew it.
6. I enclose copies of two proclamations I have issued. ** The first giving one half of Gold seized for attempt at smuggling to the informer. The second declaring the places through which Gold can be legally
exported exported. I have offered every facility for the purpose. Miners leaving the Colony by Bentinck Arm can pay duty on their Gold on William's Creek.
I have the honor to be, Sir, Your most obedient
3/4/2018 The Colonial Despatches: 6416, CO 60/21, p. 519; received 8 July
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humble Servant Frederick Seymour
Minutes by CO staff
Sir F. Rogers
ABd 20 July
Sir F. Rogers
TFE 21 July
The 7th clause is confused in language, but I suppose the Authorities may be left to fight their way through it. If the Judge cannot construe it the Legislature must mend it. What is meant is that gold may be forfeited if found without a clearance in [course?] of conveyance to any point on the frontier other than that from wh exports exportation is permitted.
Sanction, observing that the language of SS 7 appears to be somewhat confused.
FR 27/7 EC 27
Documents enclosed with the main document (not transcribed)
H.P.P. Crease, Attorney General, to Colonial Secretary, 9 May 1865, reporting on the ordinance as per despatch.
Despatch to London:
Seymour to Cardwell, 19 May 1865, National Archives of the UK, 6416, CO 60/21. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B65057.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B65057.scx) . Accessed 4 March 2018.
Last modified: 14:48:23, 28/2/2018
goldANDexportANDtax3.pdf
3/4/2018 The Colonial Despatches: 8241, CO 60/22, p. 65; received 24 August
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Despatch to London Seymour to Cardwell 8241, CO 60/22, p. 65; received 24 August
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No. 79
6th June 1865
Sir,
I have had the honor to receive your Despatch No. 17 of the 11th April forwarding an extract from a despatch, addressed by Rear Admiral Denman to the Board of Admiralty, suggesting
that that a Colonial Vessel should be employed for the protection of the Coasts of this Colony and Vancouver Island. You direct me to report upon the practicability of adopting Admiral Denman's suggestion and providing for the requisite expenditure out of Colonial Revenue.
2. Towards the close of last year I had some conversation on the subject referred to in your Despatch, with Admiral Denman.
I I regret that I did not follow his example and at once report its substance to the Head of my Department. I had been made aware through your despatches that the Colony had to depend almost exclusively for its protection upon its own resources and that the fostering care afforded during its earlier years was at an end. I suggested to the Naval Commander in Chief that the Lords of the Admiralty should
be be recommended to hand over a gun boat or other steamer for the use of this Colony. That, once transferred, the whole charge for her support should fall upon the Local Revenue. That the Commander of the Vessel, while on Colonial Service, should be a Naval Officer approved, if not appointed, by the Lords of the Admiralty. He should receive pay not only for his service afloat, but likewise if a man of judgement and discretion,
as as a Stipendiary Magistrate of the Colony. The crew ordinarily maintained should be capable of handling the vessel efficiently, the Colony supplying additional force at any time when required. I proposed that the ship should be under the orders of the Governor, when paid by the Colony, but that the Senior Naval Officer be empowered to demand her transfer to the Imperial Service in the event of the Mother Country
being being engaged in a war with any maritime power. I mentioned that in my opinion the one large gun would be inconvenient and unnecessary for the Colonial Service and suggested that smaller ones would be more efficient for operating against Indians or smugglers. It scarcely fell within my province to say that a heavier armament might at all times be ready for her use at Esquimalt. Finally I expressed my opinion to Admiral Denman
that that the sailing qualities of the vessel would be almost of equal importance to us as her efficiency under steam. The distances in this Colony are very large and it might be difficult for a Steamer of moderate dimensions to carry fuel enough for a voyage, for instance, to Queen Charlotte's Island & back. I should however mention that seams of anthracite coal are now being worked on that Island.
3. The project above detailed would
would, I think, if carried out, be very beneficial to the Colony and a saving to the Home Government. Large and valuable Ships of War would rarely, if ever, have to navigate the narrow and deep Inlets which indent this Coast, and are the scene of the greater number of outrages of which we have to complain. The vigilance of the Local Government would be extended over the waters as over the lands of the Colony, and the
civilization civilization of the Indians furthered on the Coast as it is now in the interior.
4. While the two Colonies are in their present condition of total separation, I am of opinion that no joint action in regard to a Colonial Vessel is practicable. British Columbia alone would find work enough for one ship.
5. As to the ability of this
this Colony to bear the expense, I would mention that the extreme lateness of the season prevents my sending any confident estimates of our probable Revenue for the year. We can apply but one test. The Customs receipts at New Westminster are sixteen per cent already in excess of those for the corresponding period of 1864, although the interior has been closed by ice for an unprecedented length of time. We have new
Gold Gold fields superior in extent, and approaching in wealth to those of Cariboo. The snow has prevented our yet receiving returns of Revenue from the Kootenay and the new Customs Stations on the American frontier. The new
3/4/2018 The Colonial Despatches: 8241, CO 60/22, p. 65; received 24 August
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Gold export tax has scarcely come into operation yet and the regular mining season only commences on the first of June. I look with much confidence to our total receipts for 1865 being fifty per
cent cent in excess of those of 1864.
6. Under these circumstances I entertain little doubt as to the ability of the Colony to keep in an efficient condition of service and repair a vessel entrusted to us by Her Majesty's Government.
7. I refer in support of my present recommendation to two despatches which will accompany this Communication. No. 77 reports the murder of Mr Ogilvy,
the the Customs Officer at Bella Coola. No. 78, the piratical attack on the "Nanaimo Packet" in one of the narrow Inlets off Milbank Sound. I may mention likewise that the absence of the means of conveyance will preclude my visiting this summer the Mission Station at Metlakahtla and Queen Charlotte's Island.
I have the honor to be, Sir, Your most obedient humble Servant Frederick Seymour
Minutes by CO staff
Mr Elliot I should not be in a hurry to act upon this despatch. The ample resources which this year is expected to bring forth have to be realized, & when realized, I think, they will be found to be wanted for roads & public works in the Colony. At any rate wait for the ansr expected from Govr Kennedy on this subject.
ABd 25 Augt
Mr Cardwell I agree with Mr Blackwood.
TFE 25/8
It will do no harm to wait for Governor Kennedy's Despatch: especially as Govr Seymour is believed to be on his way home.
But this is worthy of Encouragement.
EC 25
Put by now. Mr Seymour has returned to B.C. & will resume this subject if necessary under the altered circes of the 2 Colonies.
ABd 20 Sepr/66
Despatch to London:
Seymour to Cardwell, 6 June 1865, National Archives of the UK, 8241, CO 60/22. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B65079.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B65079.scx) . Accessed 4 March 2018.
Last modified: 14:48:26, 28/2/2018
goldANDexportANDtax4.pdf
3/4/2018 The Colonial Despatches: 1914, CO 60/26, p. 331; received 24 February
http://bcgenesis.uvic.ca/getDoc.htm?id=B666S02.scx&search=gold%20AND%20export%20AND%20tax#searchHit1 1/7
Correspondence (private letter) Seymour to Cardwell 1914, CO 60/26, p. 331; received 24 February
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
Seymour to Cardwell
Rue de la Paix Paris
17 February 1866
Sir,
As you did me the honor of consulting me respecting the resolutions of the Legislative Assembly of Vancouver Island, praying that that colony might be united to British Columbia, I would now venture to express in writing—I believe in accordance with your wish—my views upon the Subject.
2. I think that the Assembly has faithfully represented the desire of the majority of the population. So great is the anxiety for union existing in Victoria, the political centre of the island, that the conditions are left entirely for you to determine. Nanaimo, the second town, I believe, faintly wishes for amalgamation of the two colonies, but the people are prosperous, contented, and the best feeling exists between them and the colonists of the main land.
3. The question of the relations of the two colonies is one of great difficulty. They were, until recently, united, to the extent of having a Governor in common. But the dissatisfaction in British Columbia at the state of things which then existed, was such that your predecessor effected the separation now found so irritating to Victoria.
4. Under the system which the Duke of Newcastle abolished, the Government of British Columbia was carried on from the capital of another colony. The Governor and principal public officers drew full pay from the main land, and lived on the island. The people of Victoria profited by the expenditure of the proceeds of taxation levied on another community, & were at the same time, by the freedom of the port, relieved from the payment of the heavy import duties which fell on those who made of British Columbia their home. Whether it was wise to make two colonies of the territories lying West of the Rocky Mountains it is useless now to enquire; but colonists having been invited to settle on the continent on the faith that they were to form an independent community possessing their own Government and Capital, the old system was found to be manifestly unjust, and your predecessor, listening to the voice of the protesting colonists, effected the separation so joyously received in British Columbia.
5. I say confidently that that colony has not altered its views. It has had the one great wish gratified and dreads all change. I have heard this denied by Victoria politicians and I have in vain asked them for any evidence to support their denial. If a desire for union has arisen in the colony, how does it show itself? The gentlemen who successfully appeal to the people for nomination to the Legislative Council pledge themselves to opposition to union. The Council, on this subject entirely unfettered by me, vote unanimously against it. The issue was fairly tried wherever there was a chance of success. Petitions were printed in Victoria recommending union and the abolition of unpopular taxation, & circulated in the mining districts, but they remained unsigned. Indignation meetings were called in Cariboo, but no one would attend. A newspaper was started in that district specially to advocate Union & oppose the local Government. The miners merely protested against the scurrility of their professed organ, and when extraneous assistance was withdrawn it died from want of their support. I am for many reasons anxious that the desire for union should exist in British Columbia. It does not.
6. The efforts of the Merchants of Victoria to create such a desire in the mining districts were, however, vigorous and well timed. Not very high principled, but shewing considerable political dexterity. It was felt that union, as a respectable question, could stand no chance of obtaining a hearing in Cariboo, but it might direct with some attention on the hustings coupled with an abrogation of the export duty on gold, and a general reduction of taxation. Systematic agitation might possibly stir up the feeling against the gold tax to a sufficient strength to drag into light its self imposed associate, union. I do not deny the unpopularity of the export duty, but the miners are aware that it was imposed with the consent of their own Mining Board, and voted for by their elected Members of Council. They know the requirements of the Government, but above all they know that it requires no change in their political condition, no assistance from without, to relieve them from any burdens unanimously affirmed to be distasteful.
7. It would have been well if Victoria had earlier passed the resolutions in favour of unconditional union. It was not until the efforts to obstruct the Government of British Columbia, by shaking the confidence of the people in its practice had proved vain that the wise course was adopted. Though I shall presently shew that the larger colony has progressed greatly since it attained a separate existence, yet it did not escape entirely uninjured from the self- damaging attacks of the Victoria politicians. The prosperity of both colonies depends principally on the powers of the gold mines of the main land to attract a considerable share of the large floating population which, centred in winter
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in California, seeks in the public prints & in every rumour, a guide to direct its steps to the most profitable field for summer labour. The Victoria papers & their Cariboo representatives, during its short existence, requested British Columbia to be over taxed and ungently governed. Many persons, undoubtedly, in San Francisco took the English reports on English mines and management as correct and turned their steps towards other gold fields which American speculators took care not to depreciate. The efforts of the Victoria agitators were thus partially successful. The great objects of intimidating the Government & exciting disaffection failed, but a feeling outside the colony was created against the then recent legislation. This success, once obtained, caused alarm in Victoria. Then came the outcry that the miners were leaving the country; Merchants from the island waited on the Governor on the subject & when the injury was done the Cariboo press was silenced.
8. Even in England persons connected with Victoria have had a meeting, where, in their eagerness for union, they have reported the two colonies to be languishing or retrograding in their present separation. Reports on the subject deficient either in candour or information had been provided to the leading London journals. I regret that the matter of union should not have been allowed to rest where it was properly placed, in your hands. Who would emigrate from England to colonies, reported by their own respected representatives to have early in their career entered on their decline? Who would seek investments in the funds of a community alleged to be daily diminishing in wealth?
9. I am prepared to allow that Victoria is not flourishing. I maintain that British Columbia is so. It may seem strange, but their progress is not parallel & I can believe that the cause has escaped the knowledge of some of the merchants of Victoria. The explanation is, however, simple.
10. The discoveries of gold on the Lower Fraser first attracted to British Territory a large portion of the unattached population of Western America. The immigrants came from Oregon or California by sea. Their detention at the first place of landing created Victoria. The bars on the Fraser were gradually worked out. Now they are abandoned to the labours of Chinamen. But year by year the summer immigrants pushed further into the interior, still by the valley of the great river. Finally Cariboo was discovered and its prodigious wealth attracted large numbers of miners who were fed and supplied from Victoria. Driven from their work by the severe climate in the winter, the "Caribooites" spent some time & much money in that town & added to the profits of the merchants who had monopolized their markets during the working season. There were no large settlements in British Columbia. It was only a colony in name. There was a gold mine at one end of a line of road. A seaport town (under a different government) at the opposite terminus.
11. Here was the real cause of the ill feeling between the two colonies. The settlers on the Fraser paid gold miners duties on all they consumed while the people of the island profited by the success of the diggings & paid no import duties. Everything was done to foster Victoria. Where public officers served both colonies, the island gave its own half pay; the full salary was drawn from the heavily taxed British Columbia, & the whole, then one salary and a half, was spent on the island. Imperial interests were assumed to be involved in the welfare of Victoria, & people affected to believe that great destinies were in store for the town they had early begun to name the "Green City of the Pacific". Meanwhile every man on the main land knew that the town was kept alive by the British Columbian mines. They petitioned for separation, and they got it. Now, at all events, the proceeds of their taxation are spent among them. Trade is beginning to establish itself on the Fraser. On the other hand Victoria, descending to [illegible], seeks at the sacrifice of her free port, and constitution a close union into the colony whose wealth is her support.
12. Cariboo was the great customer for Victoria, but Cariboo with its prodigious wealth has been found out to be "poor man's diggings." Not competent therefore to support a very large population. The mines are of limited extent. The gold is deep and is expensive to extract. The number of spring immigrants began early to fall off and in 1865 was smaller than usual. There was no dearth of labourers. Cariboo warned off fresh comers as every place was full. So it seemed, for with a diminished population, the yield of gold was in the proportion of 9 to 5 as compared with the preceding year. Wages were steady at 40/s a day, and the necessaries of life far lower in price than they had ever been before. Victoria continued to do the principal business of these mines, but the population to feed was comparatively small and Victoria suffered.
13. So did British Columbia to a certain extent. Road side houses on the Cariboo line became bankrupt as traffic decreased by diminished immigration and accelerated travelling. The general condition of the colony was however prosperous. The customs receipts at New Westminster were, by the last account which has reached me, £15,000 in excess of the corresponding period of 1864. I learn that the British Columbian capital "is making great progress. Houses and wharves, clearing and fencing going on everywhere this autumn," and the most hopeful sign of all is beginning to shew itself; a disposition on the part of the miners to purchase land in New Westminster or its neighbourhood, and commence the systematic colonization of the Lower Fraser. These benefits in no way assist Victoria nor can it appreciate the improvement in the general condition of Cariboo which now induces many miners to winter there instead of squandering their money in Vancouver Island or San Francisco.
14. To the merchants of Victoria the depression they felt in 1865 appeared to extend over British Columbia, but he could only see the valley of the Fraser while a vaster view lay open before the eyes of the Government of New Westminster. The usual wave of immigration was seen to come to us in equal if not larger volume than in former years. Many miners were doubtless prevented by the Victorian outcry from coming direct to the English colonies, and the more United Americans secured the preference for their own gold fields of Boise or Coeur d'Helene. But disappointed hopes soon drove thousands in search of richer deposits. From the sea to the Rocky Mountains, on both sides of the boundary line the country swarmed with eager prospectors who rushed backwards and forwards as reports circulated that the gold which all knew to exist had at last been found.
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15. Late in 1864 important discoveries had been made near the British Kootenay Pass of the Rocky Mountains in our territory. It was first through American newspapers that I became aware of a rich and prosperous mining town existing within our limits about 500 miles due East of New Westminster. Although the Kootenay mines could at first be only approached by passing through United States territory, we soon extended British institutions over the new diggings. Established Courts of Justice & collected taxes. On the dissipation of the mining camps of the Boise Country, Kootenay received a considerable accession of population, & in the season of 1865 the new diggings were paying to the Colonial Treasury in taxes upwards of a thousand pounds a week. Here was a tangible benefit to British Columbia, which brought no immediate advantages to Victoria. On the contrary, the new miners which were fed from across the frontier took away many persons from Victoria's best customer, Cariboo.
16. The American prospectors continued to pour in by every opening in our rugged frontier, and the attraction of the Kootenay itself soon dimmed before the discoveries on the Big Bend of the Columbia. I had fortunately consented to license the running of steamers under the American flag in the purely English waters of that river. Crowds arrived, freight poured in, and the advent of winter alone prevented the general rush which is confidently predicted for this year. I am credibly informed that these latest discovered gold mines have in some places yielded as much as eight hundred dollars a day, to the hand, without machinery. If such be the case we need fear no competition. Victoria has however in no way shared as yet in the profits. The customs duties levied at Fort Shepherd on the Columbia belong to us British Columbians alone. In other parts of the Colony the prospectors have been successful. Near Lillooet, in a fine agricultural district, a stretch of nearly 70 miles of rich auriferous ground has been discovered and high hopes are entertained as regards the next mining season. I say again that British Columbia is flourishing and has still brighter prospects in view.
17. I may observe, inadvertently, that the unsuccessful miners from Boise on the Coeur d'Helene are as valuable to us as an equal number of those who came by Victoria and the Fraser. The citizens of the United States are our boldest prospectors and not the least law-observing portion of our population. They came to us across the frontier prepared to accept our institutions, their heads undisturbed by political agitations. The carrying out of the last sentence of a Court of Lynch Law sometimes diminishes their numbers as they approach the boundary line, but once it is passed, the revolver and bowie knife are laid aside, and perfect tranquillity prevails under our vigorous administration throughout the Colony. Crimes of violence are now almost unknown in British Columbia, and on the late circuit the Supreme Court did not find a single prisoner for trial at the Kootenay.
18. While British Columbia is reported to be languishing, it may be interesting for me to mention—though I write without official documents—some of the principal public works which have been accomplished by us in 1865. I premise with the statement that every Surveyor and every Engineer in the Colony was in Government employ last year. Every discharged Sapper possessing anything like adequate knowledge was likewise induced to enter our service. A good trail for pack animals has been opened from the Fraser to the Kootenay. The Cascade Range, the Gold Range, the Selkirk Range have been successively surmounted. With what labour may be imagined when I state that at the end of May the cutting over the Cascade Mountains had, on each side, seven feet of snow. This trail was not only run through English territory to a gold mine, but it affords, by the British Kootenay Pass an easy access from the Pacific to the Hudson's Bay lands beyond the Rocky Mountains. Its principal value however to the Colonists is that it already enables the Merchants of New Westminster to undersell those of Lewiston & Walla Walla at the new diggings. A sleigh road had been opened from the seat of Government to Yale running for upwards of a hundred miles through the dense forest of the lower Fraser. A bridge has for the first time been thrown over Thompson's River on the main road to the Northern mines. Upwards of twenty thousand pounds have been expended in the completion on the high road into Cariboo allowing machinery, at last, to be introduced into Williams Creek. A large sum is connecting by a long street the three mining towns in that locality. A good road now connects New Westminster with the sea at Burrard Inlet, and secures the inhabitants from inconvenience, should an unusually severe winter close the Fraser. A light ship, public libraries, new school buildings testify to the energy of the Government. If I add, that in the year just passed, steamers have for the first time navigated the Upper Columbia and that New Westminster has been brought into connection with the whole telegraphic system of the United States, Canada, Newfoundland & with Cariboo I point out an amount of work accomplished in a single summer, I should think entirely unprecedented in so young a colony. For the telegraphic communication & the new line of steamers the Government can only claim the credit of the earnest efforts it has made to second the enterprise of our republican neighbours.
19. I have endeavoured at considerable length to prove; first, that union with Vancouver Island, or the annexation of that Colony is not desired in British Columbia. Secondly, that the larger Colony is not in a depressed condition. Possibly external agitation in connexion with the Gold Export duty may have to a certain extent impeded her progress. If, in the violent competition on the Pacific to make the mines in the Colony or the States superior to each other in attraction, it be found that the British export on gold acts unfavourably to us, I can only say that the tax will be at once repealed. Our great public works are done, and if the export duty, though just, is impolitic, we will not suffer our miners to be over weighted by it, in the great struggle.
20. In the face of the reluctance of the colony over which I preside, to be drawn into any union with Vancouver Island, some explanation is necessary of the motives which induce me to entertain the question at all, instead of confining myself to backing the prayer of my Legislative Council that the existing separation may continue unimpaired. I consider however my duty to require of me that I should not confine my attention exclusively to the internal affairs of the tract of country under my Government, but that I should likewise see to the strengthening of British authority, British influence and British power on the Pacific, and I at once admit that the existing division weakens all three. The dissensions between the two colonies are looked upon in the neighbouring States as rather a scandalous, but novel and amusing feature in English colonization. I am practically aware that it is extremely
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inconvenient for the Commander in Chief of the Pacific Squadron to be in communication with two Governors of nominally equal position, close to each other, but many thousands of miles from Head Quarters. I see that the Indian population of our North West coast, wherever the schooner or canoe of the Victoria smuggler can reach, are withering and disappearing under the disastrous effects of the whisky traffic. I must remember that both British Columbia and Vancouver Island have occasionally questions to discuss with their American and Russian neighbours, and that, as things now are, there is nothing to secure uniformity of action or expression in the English representatives. The one may be on the most friendly terms with adjacent powers. The other, in a state of reserve, pending a reference to Europe. I find myself, under these circumstances, compelled to state that, in my opinion, England ought to be represented by one civil authority only beyond the Rocky Mountains. Her Majesty's prerogative could of course effect this, without the aid of Parliament, but if a Lieutenant Governor be appointed to the smaller & poorer Colony the change, though an undoubted improvement, would still have Vancouver Island with a staff of public offices beyond her present ability to support. I fear that the bickering would not cease, nor Victoria refrain from interference with the affairs of the neighbouring Colony.
21. Without any specific recommendation, I proceed to consider the terms upon which union could be carried out with moderate satisfaction to the one Colony & the least distaste to the other. The Imperial Acts 21 & 22 Vict: C: 99 (which has been repealed) provided that, on the petition of the two legislative houses of Vancouver Island, Her Majesty might declare that island to be an integral part of the Colony of British Columbia. This appears to me to be the principle upon which union should be carried out. But British Columbia has since then been favoured with a Legislative Constitution, by an Order in Council, & I am of opinion that no union should take place without the consent of the Legislative body created under it. This, I think might be obtained should Her Majesty's Government desire it & equitable terms be proposed. But I would here venture to state that if a return to the old state of things be sought to be imposed on British Columbia the outcry to which the Duke of Newcastle yielded but two years ago, will be renewed with increased volume.
22. An Act of Parliament somewhat similar to that above referred to having been obtained, the consent of the Legislature of British [Columbia] formally recorded, the Governor's proclamation of incorporation issued, the laws of the main land would at once be extended over the island. An early revision of these laws would however be required. This could hardly be effected, with a due regard to the interests of the newly acquired territory by the present Legislative Council of British Columbia. That body should be dissolved, and a new legislature, with representatives from Vancouver Island, called into existence. Here arises the important question, What shall be the Legislative constitution of the one great English Colony on the North Pacific?
23. The Legislature of Vancouver Island of which the extinct provision of the Act already quoted contemplated the disappearance, consists of a Governor, a nominated Council and an elected Assembly. Theoretically, perhaps, the best form of Government. It is not for me to inquire how it has worked in Vancouver Island. I content myself with saying that British Columbia is not ripe for such institutions. I formed my opinion upon the following grounds. First, an account of the vast number of aliens resident in the Colony, who would, I presume, be excluded from the suffrage were a symetrical constitution to be established. Secondly, because there are but few persons who could devote their time and attention to the public service. We should soon be reduced to pay our legislators, or fall into the hands of the professional politicians of whom the neighbouring States furnish to us the model. Thirdly, because the uncertain nature of gold mining allows of a "rush" here and a "rush" there as rich leads are discovered, or old claims "cave in." Away goes the population from the "played out" town. Magistrate and constables follow, and the Surveyor and his road gang have to bring the new diggings into connection with the markets of the colony. The Governor must act at once on his own responsibility and be able to rely with confidence on the passing of a Supplementary Appropriation Act to give legal sanction to the unforeseen expenditures. Fourthly, because our population of Indians is in a proportion of about 10 to one of ourselves. They will now obey the Great White Chief. They understand no division of authority. Lastly, because every one in British Columbia, Americans even more than English, sees the necessity of & wishes for a strong Government. All like the power to be mainly vested in one man, responsible to public opinion, and are adverse to the professional politician. For the colonies, if united, I would recommend an adherence to the principles of the Legislative constitution of British Columbia rather than to those of that conferred on Vancouver Island. I would however have a much larger proportionate infusion of the popular elements than we at present possess.
24. Her Majesty has, by Order in Council, created a body authorized to make laws for British Columbia. It consists of fifteen Members exclusive of the Governor with whom it is optional to take his seat as a Member of the Board, or to keep aloof, & by so doing constitute himself an entirely separate branch of the Legislature. One third of the Council is composed of the undermentioned public officers, who are, by a separate instrument, constituted likewise the Governor's Executive Council: 1. The Colonial Secretary 2. The Attorney General 3. The Treasurer 4. The Surveyor General 5. The Collector of Customs The remaining two thirds are selected by the Governor, but, I believe, that a despatch from the Duke of Newcastle directs that five of the ten shall be chosen from the Magistracy of the Colony, and that in the appointment of the other five the Governor shall endeavour to be guided by the wishes of the people as signified in five distinct districts. Under this constitution the Government can command a majority of votes, but the power has been rarely exercised by me, save in cases where demands were made upon the Colony by the Imperial Treasury which the Legislature, if not coerced, would have rejected.
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25. I would wish to make some observations upon the three divisions of the present Council. The five Executive Members are in such close communication with the Governor that it is but rarely that one of them has an opportunity of asserting his independence by a vote against a measure introduced by the Government. Hence, however useful as men of business, in the House, they do not, with the public, possess the same character for independence as the other two classes. I would recommend that in the new Legislature for the united colonies the strictly official elements be not increased.
26. Probably in British Columbia the section of the Legislature which possesses most the confidence of the people is that of the Magistrates. It is the right of the Governor to change the stations of the paid Justices of the Peace whenever he shall see occasion for doing so, therefore the best men are always selected for the most important trusts. As the winter closes most of the miner's operations several of the Magistrates can be spared to attend the meetings of the Legislative Council in New Westminster. The undermentioned districts are represented in this manner; 1. New Westminster 2. The Kootenay Gold Mines in the Rocky Mountains 3. The Gold Mines of Cariboo, nearly 500 miles North East of New Westminster 4. The agricultural and now mining district of Lillooet 5. The pastoral and mining country intersected by the Columbia, bounded on the South by the American frontier.
27. The country Magistrates, whose salaries are not sufficient to enable them to enjoy any of the luxuries of life in the expensive districts in which they are stationed, live in the manly state of freedom of intercourse with all classes characteristic of British Columbia society. The Magistrates at the mines, hundreds of miles from Head quarters, are necessarily invested with duties of great variety and importance. The representative of the Government, the sole referee or Judge in mining disputes, Gold Commissioner, Bankruptcy Commissioner, County Court Judge, the Magistrate is constantly before the public. The smallness of the police force which we can allow to carry out his decisions & to preserve tranquillity compels him to rely much upon his personal influence. It gives me great satisfaction to say that under these circumstances a body of Public Officers has been termed equally respected by the people and the Government. The miner looks upon the departure of the Magistrate for his legislative duties with fully as much of happy confidence as he does on that of the man he has assisted in returning to the House.
28. I would propose in the new constitution to increase the number of these valuable legislators from five to nine. I would submit that the present discretionary power resident in the Governor of making his selection from the centres of population, for the time being, be not interfered with, nor would withdraw the liberty granted to him by the Duke of Newcastle to appoint, should he see fit, unpaid in the places of paid Magistrates. I venture to submit a plan for a distribution in the first instance of the nine seats 1. Victoria, V.I. 2. New Westminster, B.C. 3. Cariboo, B.C. 4. Kootenay or Columbia, B.C. 5. Douglas & Lillooet, B.C. 6. Osoyoos & Southern Frontier, B.C. 7. Nanaimo, V.I. 8. Yale & Lytton, B.C. 9. Comox or Cowichan, V.I. It will be said that this is not a fair distribution. Six Magistrates for British Columbia, three for Vancouver Island. I reply that the former colony now supports nine paid Justices of the Peace. The latter only two. My plan would entail the exclusion of three Columbian Magistrates & the creation of one, for Legislative purposes, upon the island.
29. The Duke of Newcastle directed the Governor to consult the wishes of the people in the appointment of one third of the Legislative Councillors. My predecessor divided the Colony into 5 electoral districts: 1. New Westminster 2. Cariboo East 3. Cariboo West 4. Yale & Lytton 5. Douglas & Lillooet The mode of ascertaining the popular desire is as follows; A letter is written by command of the Governor to the paid Magistrate of the district directing him to call a meeting of the inhabitants to select a person for a Seat in the Council. One notice of the meeting is given in the gazette and, locally, by the Magistrate. Seats in the Legislative Council are eagerly contended for. Electioneering addresses issue from the rival candidates and sometimes very considerable expense is incurred. Great discretion is left with the Magistrate and people of the district as to the votes which shall be accepted and reported to the Governor. In New Westminster, I believe, in consequence of a feeling to that effect, aliens have abstained from voting. But in Cariboo, and I think other inland districts, every man who comes forward may record a vote, unless he be an Indian or a Chinaman. Indeed I believe there are cities where some Chinese have been allowed to vote. It meets with my approval that so long as a strong English Government exists in New Westminster no disqualification on account of nationality should exist at the gold mines. I hold it as extremely desirable that we should know the real interests & feelings of our many alien immigrants. That we should attach them to our institutions, and that, as we govern by moral force alone, not costing the Mother Country a soldier or a shilling, we should have among our legislators men responsible to alien as well as English constituents. I like to hear any grievance which the American miner may imagine he suffers from in Cariboo disposed of as now by the remark, "Wait for the next election." In the agricultural districts likewise I wish the aliens to take part in the elections. Lytton, probably, does not contain a dozen English unofficial inhabitants. The farmers on the Thompson and Upper Fraser are many of them French. The hôtel keepers throughout the colony mostly belong to that nation or to the Italians. The time has not yet arrived for me to consider whether the Chinaman or
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Indian should be allowed to vote at the elections. I should be disposed to exclude both. Possibly an exception might be made in favour of those who took out their "free miner's certificates."
30. The elections over, the Magistrate reports to the Governor the number of votes each candidate has received. It is by no means incumbent on the Governor to appoint to the Council the elect of the people, but it would require very special circumstances, such as have not yet presented themselves, to justify his rejection of the man placed at the head of the poll. The Councillor must take the oath of allegiance before his seat. A purely English Legislature is then secured.
31. Even if union is not to take place I should wish to see the popular element increased in our Legislative Council. It is by gradual concessions, freely made by the Government, that the desire for institutions practically unsuited to British Columbia will be best kept under. It is in the gold mines that I should specially desire to see the representation increased. If the union of the Colonies should take place I would suggest that about twelve Members of the new Legislature should be appointed by the Governor on the recommendation of the people. If the Colonies remain separate, I will address you at a future time respecting British Columbia. I must repeat the recommendation I ventured to make, when treating of the Magisterial element, that the discretionary power of the Governor as to the districts to be represented should remain unimpaired. I however submit a rough suggestion as to the first apportionment of seats Victoria V.I. 2 members New Westminster B.C. 1 Nanaimo V.I. 1 Comox V.I. 1 Cariboo East B.C. 1 Cariboo West B.C. 1 Kootenay B.C. 1 Yale & Lytton B.C. 1 Douglas & Lillooet B.C. 1 Williams Lake B.C. 1 Osoyoos & Columbia 1 As regards the electoral franchise in the first instance I would propose to leave the question as it now rests in the several districts. It might be dealt with hereafter by the Council. A property qualification and English nationality would I believe be required in the electors of Vancouver Island.
32. I think it would be desirable that the Governor should have the power of appointing two unofficial Members of the Legislative Council to the Executive Council.
33. Should union take place in the manner contemplated by the Act of the 21 & 22d Vict, two important changes would take place in the condition of Vancouver Island. Its present legislative constitution would be abolished. Its partial exemption from import duties would cease. The loss of the House of Assembly would not, I think, be much regretted. The freedom of the port of Victoria has already been much impaired, duties being now levied on many articles of consumption. There is a certain charm in the idea of a free English port on the Pacific destined to compete with San Francisco & perhaps ultimately to establish a commercial preeminence for Great Britain on the Western Coast of North America. But in reality few of the advantages expected from the free ports system have been secured, & the people of Victoria, having the issue fairly placed before them at the last elections, have, by a large majority, determined that the system shall cease and a Tariff take its place. Victoria does not lie on any of the great highways of commerce, & I do not suppose that a vessel ever entered the port which was not specially bound for it in the commencement of the voyage. Besides, if the freedom of the port had realized the expectations of the people of Victoria would they now be in so gloomy a state, or ready to make any sacrifice to secure union with British Columbia? The last statistical returns shew that of the imports to Vancouver Island only one twelfth is exported to countries other than the neighbouring British Colony. It may be said that smuggling is carried on to a great extent. Possibly so, but I doubt whether this advantage, of somewhat questionable propriety, counterbalances the inconvenience of the restrictions placed on British commerce in the Western States of America. The compulsion on every vessel to or from Puget's Sound to enter or clear at Port Angelos 40 (?) miles to Windward is I know found a serious evil in British Columbia. The ships entering the Columbia or Golden Gate from Victoria are examined I believe with a minuteness & suspicion not excercised on other traders. The Collector of Customs of California informed me that the commercial transactions of the British and American territories on the Pacific will never be conducted on an entirely satisfactory condition, so long as we look to the evasion of the United States' laws as one of our regular sources of profit. Reciprocity such as that existing between the Eastern Colonies & States would be most valuable to us, but we cannot hope to obtain it, under a system which contemplates the flooding, if possible, of the neighbouring territories with smuggled goods. Finally, British Columbia cannot receive into herself a community which declines to share equally in her taxation. Victoria might retain nearly all her advantages as a distributing port by the establishment of Bonded Warehouses, and the allowing of a drawback on all merchandise, over a certain value, passing out of the Colony.
34. In the event of union taking place, a question which will locally excite some interest is as to the seat of Government. Victoria is the largest town of the two Colonies & is, in many respects, the most agreeable place of
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residence. I think, however, that in seeking union with British Columbia, Vancouver Island relinquishes all claim to the possession within her limits of the seat of Government. New Westminster has been chosen as the capital of British Columbia, & it would not be fair to the reluctant colony to deprive her of the Governor and staff of Officers. Both these towns are inconveniently situated on an angle of the vast British Territory, but New Westminster, on the main land, has the advantage over the island town. It is already the centre of the telegraphic system and is in constant communication with the Upper country, whereas the steamers to Victoria only run twice a week. The seat of Government should be on the main land, whether it might not with advantage be brought hereafter nearer to the gold mines, is a question for the future.
35. Unmixed advantage would accrue from the amalgamation of the Supreme Courts of the two Colonies. There would be abundance of work for the Judges now presiding in each colony.
36. It is premature for me to address you respecting the disposal of the public officers who might be thrown out of employment on the union of the two colonies.
37. I have now endeavoured to lay before you a scheme for the consolidation of British power & interests on the Pacific and for the suppression of the lamentable antagonism existing between some of our fellow subjects on that ocean. I am well aware that there are conflicting interests which I cannot hope to reconcile. The way of pleasing all parties has not been discovered. The old system of union under a common Governor resident in Victoria broke down. The new one of entire separation seems intolerable to the politicians of Vancouver's Island. Whether the arrangements I now suggest would be acceptable to the Colonists, I am much inclined to doubt. Victoria would probably expect better terms and British Columbia only wishes to be left alone.
38. In a consideration of any suggestions I now venture to lay before you, I beg for the indulgence which a letter written abroad, without access to official papers, may fairly claim.
I have the honor to be, Sir, Your most obedient humble Servant Frederick Seymour
The Right Honble Edward Cardwell M.P.
Minutes by CO staff
This is the report expected from Governor Seymour, and written with his usual ability, on a plan for the Union of British Columbia and Vancouver Island.
The worst of it is that since the time when the projects on the subject were maturing, the Vancouver Assembly has said that "although this House has already shown it's willingness to accept whatever Constitution HM's Government may be pleased to grant," it must express it's conviction that no Constitution would be suitable which did not embrace a Representative Government, and also "make the Official Heads of Departments responsible to the people of the United Colony."
The Resolution, it will be seen, does not actually withdraw the previous reference of the matter to the discretion of HM's Govt, but rather seems to express an opinion on the manner in which that discretion should be exercised. If so, it must be determined whether or not HM's Govt must hold itself bound, in case it acts, by the advice tendered in this afterthought.
I may mention that Mr Blackwood has in readiness a selection of papers to put into type as soon as the present report should arrive.
TFE 27 Feb
Correspondence (private letter):
Seymour to Cardwell, 17 February 1866, National Archives of the UK, 1914, CO 60/26. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B666S02.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B666S02.scx) . Accessed 4 March 2018.
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Despatch to London Birch to Cardwell 5780, CO 60/24, p. 236; received 14 June
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 35
2 April 1866
I have the honor to forward an Authenticated and two plain Copies of an Ordinance of the present Session of the Legislature, entitled; No. 12. An Ordinance to repeal the Ordinance for imposing a Duty on Gold. I add the Report of the Attorney General.
2. It was with the utmost reluctance I found it necessary to propose the repeal of the Gold Export Tax. Had this Tax been introduced on the first discovery of Gold in British Columbia, I am of opinion it might have worked with success, but, coming into operation at a time when it was the Policy of the Press on Vancouver Island to create discontent at every action of this Government, no occasion was lost to excite the Miners to oppose the payment of the Duty, while the statements appearing in the Public prints were eagerly availed of by the Press of California and the neighbouring States to turn the tide of emigration to the mines of Oregon and Nevada, unfortunately with too much success.
3. The discovery of new and extensive Gold Fields in this Colony will doubtless attract population against any misrepresentations, but the position of the new Mines was an important argument against the continuance of the Gold Export Tax. It only requires for me to refer you to an extract from the Gold Commissioner's Report, transmitted in my despatch No. 38, of this date, to explain the unsatisfactory working of the Tax in the Kootenay District, where a system of smuggling sprung up, difficult if not impossible to suppress. In the new district of the Upper Columbia the incentive to smuggling will be even greater than at Kootenay in consequence of the far easier access to our frontier line, and I feel convinced, had the tax been continued, its collection would have been impracticable and dangerous without a Staff of Officers out of all proportion to the Revenue.
4. In theory no taxation can be more just. The practical working has however proved the Tax unfit for a Colony so peculiarly situated as British Columbia, and I preferred rather to take the initiative in the repeal of the Ordinance than allow the matter to be brought before me by Resolution of the Legislature.
I have etc. Arthur N. Birch
Minutes by CO staff
Sir F. Rogers The tax was only an experiment.
ABd 16 June
Perhaps Mr Seymour's opinion mt be asked.
FR 19/6
I think so.
WEF 19/6 EC 22
Documents enclosed with the main document (not transcribed)
H.P.P. Crease, Attorney General, to Officer Administering the Government, 2 April 1866, reporting on the ordinance as per despatch.
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Other documents included in the file
Elliot to Seymour, 29 June 1866, forwarding copy of the despatch and ordinance for opinion.
Despatch to London:
Birch to Cardwell, 2 April 1866, National Archives of the UK, 5780, CO 60/24. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B66035.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B66035.scx) . Accessed 4 March 2018.
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Despatch to London Birch to Cardwell 5774, CO 60/24, p. 189; received 14 June
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 29
3 April 1866
I have the honor to forward an authenticated and two plain copies of an Ordinance of the present Session of the Legislature of this Colony, entitled: No. 7 An Ordinance to consolidate the Laws relating to Licences. I add the Report of the Attorney General.
2. The necessity for the introduction of this Bill by which the Revenue from this Source of taxation will be largely increased was occasioned by the repeal of the Gold Export Tax.
3. The compulsory mining Licence, I am fully aware, is open to objection and was found to work unsatisfactorily in the Australian Colonies. In this instance however the circumstances are widely different. The Miners themselves have suggested this system of Taxation through their respective Mining Boards. In the neighbouring territory a similar Tax is in force at the higher rate of ten dollars per annum, the Miner has therefore no unsatisfactory comparison to draw as in the case of the Gold Export Tax.
4. While this Colony continues to be dependent for a Mining population on the immigration from the Mines of California and Oregon, I am of opinion that any direct Tax it may be necessary to impose should be assimilated as far as practicable to the taxation to which they have been accustomed.
5. As regards the increase to the Trades Licenses I have heard no complaint that they will act with undue hardship on any portion of the Community.
I have etc. Arthur N. Birch
Minutes by CO staff
Sir F. Rogers
ABd 16 June
Sanction.
FR 16/6 WEF 18/6 EC 19
Documents enclosed with the main document (not transcribed)
H.P.P. Crease, Attorney General, to Officer Administering the Government, 3 April 1866, reporting on the ordinance as per despatch.
Despatch to London:
Birch to Cardwell, 3 April 1866, National Archives of the UK, 5774, CO 60/24. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B66029.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B66029.scx) . Accessed 4 March 2018.
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Despatch to London Birch to Cardwell 8284, CO 60/25, p. 2; received 27 August
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 50
9 July 1866
I have had the honor to receive your despatch No. 23 of the 30th April last, transmitting Copy of a Letter from the Lords Commissioners of Her Majesty's Treasury in which their Lordships advert in general terms to the financial condition of the Colony and desire to be furnished with a Statement of the actual Receipts and Disbursements within the year 1865 together with an account of the Liabilities of the Colony at the close of that period.
2. It is not within my province now to refer to the Road Policy of a previous administration or to question the propriety of the construction of two rival Roads through a wild and thinly populated Country at a cost of £122,280 on the Yale-Clinton and Alexandria Road and £78,200 on the Douglas-Clinton and Alexandria Road. These expenditures have long since received the approval of Her Majesty's Government, but they have entailed upon the Revenue a heavy and in part unnecessary charge amounting to £13,500, for their maintenance and for interest on the debt incurred for their construction.
3. In explanation of the present financial condition of the Colony it is necessary that I should refer to a period previous to that mentioned in the Treasury Letter. At the close of the Year 1863 the entire amount of the Loans of £100,000 authorized under certain proclamations had been expended and the Public Accounts showed a debt to the Bank of British Columbia of £8000, to the Vancouver Island Treasury of £9000, no less a sum than £14,900 of temporary Bonds, payable in one, two and three years were issued within the Year, and sums amounting to £10,000 were also due to Contractors for work performed in 1863. Thus, at the commencement of 1864 the local debts incurred in 1863, payable out of the Revenue of the following year amounted to £32,200, a further sum of £9,700 on account of the Bonds being payable in 1865, 1866.
4. The Cariboo Waggon Road had, at that period, reached Alexandria, a distance of 120 miles from the Mining district. The Country for the greater portion of the remaining distance is thickly timbered, with little or no food for Pack animals and the necessity for the completion of the Road was urgently called for in the interests of Cariboo then the only known mining Region and the main support of the Colony. In fact the £200,000 already invested in the construction of roads would have been comparatively thrown away had the roads terminated at Alexandria.
5. At the first meeting of the Legislative Council in 1864 an Ordinance was passed and received the sanction of Sir James Douglas authorizing a further extension of the Public Debt by £100,000. The Council at the same time recomended the immediate expenditure of £48,000 in the completion of the Cariboo Road. Mr Seymour on his arrival in the Colony in April 1864, desirous of carrying out the pledge of a former Administration, authorized, in anticipation of the Loan, the continuance of the works, the survey of the line of Road was completed and one third portion was constructed at a cost of £21,300 during the Year 1864.
6. Of the £100,000 Loan authorized in 1864—and partly expended in anticipation—it may be said the Colony received the benefit of only £60,000. The expenditure consequent on the Indian disturbances absorbed £20,000, nearly one fifth of the entire Revenue. The difficulty in disposing of the debentures necessitated the borrowing of money at a high rate of interest. The loss of £6,000 on the sale of the debentures and the payment to the Imperial Government of £10,700 for some useless Military huts reduced the Loan to the Amount mentioned. It cannot therefore be a matter of surprise that, with the payment of the debts of 1863, the many and unforeseen expenses of 1864, and the delay in realizing the Loan, the amount due to the Bank of British Columbia had increased at the close of that year.
7. The detailed Returns required by the Lords of the Treasury show the expenditure of the year 1865 to have been less than the Estimate by £32,000. To estimate the Revenue at the commencement of the Year must in the present state of the Colony be a mere speculation. In the Autumn of 1864 the Kootenay Mines attracted much attention and the Estimates for 1865 were framed in the expectation that a large Revenue would be raised from this District. With what justice this Estimate was made may be inferred from the fact that at the Commencement of the season the Revenue taken at Kootenay alone exceeded £1000 a week, the yield of Gold was large and every miner employed at remunerative wages. Suddenly however fresh discoveries in the Neighbouring Territory of Montana, the richness of which were naturally largely exaggerated by American Merchants, reduced the population at Kootenay from 2,000 to 300, and the Revenue consequently decreased. This and the impossibility of Collecting the Gold Export Tax on our Frontier are the main causes of the falling off in the Revenue as Estimated in 1865.
8. You draw my attention to the increase of the debt to the Bank of British Columbia at the close of 1865 as an evidence that the expenditure of the Colony had been continued throughout the year out of all proportion to the
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Revenue. I can only reply that in view of the expected Revenue Governor Seymour authorized important Public Works to be undertaken and that upon the receipt of information of the successful opening of the season at Kootenay, a trail, through British Territory, of 400 miles was commenced and completed at a cost of £11,000. All large Public Works are given out by Public Tender to contractors and it is consequently impossible to stop expenditure on such undertakings when once authorized. I give this explanation as I infer from Your despatch that I might have been expected to reduce Expenditure when I found the Revenue of 1865 might not meet Mr Seymour's Estimate. This under the circumstances was impossible.
9. The Estimates for 1866 transmitted in my despatch No. 28 will have shown that I have reduced the expenditure very largely. The main items of Expenditure in 1866 on Public Works will be incurred in paying the instalments due on former contracts and in maintaining existing Roads in repair, amounting to £15,000, which of necessity must be paid.
10. I cannot at present state whether the Revenue of the year will amount to or exceed the Estimate. I shall keep down every expenditure to the lowest limit. I have undertaken no public works but those of the most pressing necessity and this branch of Expenditure cannot be further reduced. I have made reductions in the Civil List exceeding £5000 but there are still some unnecessary Offices. On this subject I propose to address you in a separate despatch.
I have etc. Arthur N. Birch
Minutes by CO staff
Mr Birch makes a good statement of what he has done. I do not see that more is necessary at this moment than to send a copy to the Treasury for their information. I annex a draft for the purpose.
TFE 28 Sep
Documents enclosed with the main document (not transcribed)
Statement of receipts and disbursements for the year 1865, signed by Robert Ker, Auditor General, 14 July 1866.
Statement of assets and liabilities for the year 1865.
Other documents included in the file
Rogers to Secretary to the Treasury, 6 October 1866, forwarding copy of correspondence relating to the accounts of the colony with reference to their previous enquiry.
Despatch to London:
Birch to Cardwell, 9 July 1866, National Archives of the UK, 8284, CO 60/25. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B66050.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B66050.scx) . Accessed 4 March 2018.
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goldANDexportANDtax8.pdf
3/4/2018 The Colonial Despatches: 10178, CO 305/30, p. 319; received 26 October
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Correspondence (private letter) Douglas to Carnarvon (Parliamentary Under-Secretary) 10178, CO 305/30, p. 319; received 26 October
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
Douglas to Carnarvon
Vancouver Island Victoria
14 September 1866
My Lord
My connection with Her Majesty's Government, and many years service as Governor of the Colonies of Vancouver Island and British Columbia, will I trust be considered a sufficient apology for the present Communication.
2. Whatever may be asserted to the contrary there is no reasonable doubt, that Vancouver Island and British Columbia are in a most critical and alarming state; not a mere casual depression, but a condition that threatens their very existence as self supporting Colonies.
Already has the most valuable Country and City property in and around Victoria, so much depreciated, that it has hardly any exchangeable value; trade languishes; the inhabitants are leaving by every steamer; business is failing; establishments are being closed; and one third or more of the shops and dwelling Houses within the City limits, are without occupants.
3. New Westminster is little better, and the prospect is even more gloomy in other parts of British Columbia, the merchants being overwhelmed with debts; failures universal; credit and Capital gone, and it is generally believed that all the up-Country trading Firms except two, are in a state of insolvency.
4. Never perhaps was there a time, in the history of these two Colonies, when the interference of Her Majesty's Government was more needed, or could have a more beneficial effect.
5. In tracing the causes of the existing distress, some weight is due to an Act passed by the Governor and Council of British Columbia, entitled "The British Columbia Gold Export Ordinance 1865," for imposing a duty on the export of gold; it was repealed in the following Session 1866, the experiment having proved a failure; but its influence may be felt for years to come. A more unpopular tax could not have been imposed, hundreds of miners left the Colony in disgust, and by their reports and murmurs, arrested the usual influx of capital and miners from the neighbouring Territories of the United States; a large and important class of the population.
6. There had previously passed in the same session of the Legislature, a new Tariff Law for British Columbia entitled, "The Customs Amendment Ordinance 1865."
This Act is peculiar, and whatever may have been the real motives of the Authors of the measure, it certainly appears to aim at nothing less than ruin to Victoria, by means of oppressive charges on its trade, with British Columbia.
The Act is so framed and worded that it practically imposes a differential duty on foreign goods shipped from Vancouver Island, equal to a charge of 30 to 50 per cent, in excess of the duties charged on goods shipped from other Countries. The rule which it prescribes for determining the duteable value of goods gives no uniformity in the duties charged, one country may be required to pay ten per cent, another 20 per cent, and so on, on goods of the same kind and value.
7. The United States Tariff Law imposes a duty on charges connected with shipments of Merchandise as well as on the articles themselves.
The "British Columbia Customs Ordinance 1859" directs that the duties shall be charged on all goods imported, at their value at the Port of Entry. By either of these methods a uniform duty is obtained; It is not so in the "Customs Ordinance 1865," the duties are to be levied as the Act declares "on their fair market value in the Country whence the Goods were last shipped, or exported direct to British Columbia." This gives a constantly varying dutiable value.
Thus, a cargo arriving direct from France is valued for duties at its cost in France say £5000.
But let us suppose this cargo is first landed in Victoria, it would be valued for duties at its cost in Victoria, that is, about 50 per cent above its cost in France or £7500. Thus the direct shipment from France would be entered at 20 per cent on £5000, and charged £1000 for duties while by first landing the same cargo at Victoria, before sending it
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to British Columbia, the shipper would have to pay £1500 for duties, or 20 per cent on £7500—the Victoria value of the goods.
8. This example will suffice to shew the working of the new Tariff Law as respects Vancouver Island; in the case of shipment of merchandise from the United States or other Countries the law will probably be evaded by means of fictitious Invoices, and enforcing its penalties on foreign ships, may raise serious questions of international law.
9. It is not requisite to draw your attention more than I have done in the above example, to this extraordinary instance of one British Colony imposing differential duties in another British Colony, and this to the extent of 20 to 50 per cent in excess of the charges made on foreign countries. It could only have one object in view; to stop the inter-colony Trade; this, though it may be the ultimate effect, it was impossible to attain at once, consequently trade continued to flow on in its usual channel and shipments to be made from Victoria, notwithstanding the Act and its oppressive charges.
These however told severely upon Trade enhancing the general distress, and adding to the number of insolvents. The principal British Columbia trading Firms failed from mere inability to meet their Bills, and are hopelessly in debt to Outfitting Houses in Victoria, who in turn are reeling under the shock of these heavy reverses.
10. Thus when taxation exceeds the fair returns of Capital, it encroaches on the power of producing wealth, and brings poverty and wretchedness in its train.
11. The first measure of relief I would suggest to your Lordship, and it will be hailed with joy by both Colonies, is the immediate disallowance of the "British Columbia Customs Amendment Ordinance 1865." An Act which should never have appeared in our Statute Book, and it is certainly unfortunate that it ever came into operation.
12. An Act almost idential with that, was brought forward by some members of the Council, during the last year of my Administration in British Columbia, and was rejected for two sufficient reasons. First, because it involved unmitigated evil to the Country; and Secondly, because I had no power to make laws imposing differential duties which is expressly forbidden in the 14th Clause of my instructions from the Queen.
13. I am within bounds in saying, that the new Customs Law is thoroughly vicious in principle; unEnglish in character; it fosters foreign at the expense of British Trade, forcing by unjustifiable means the trade of Vancouver Island into American channels; It was the aim and study of my government to keep British Trade within British territory. This Act violates every principle of that policy.
14. Why should this differential tax be imposed in the trade of Vancouver Island? It matters little from whence goods are shipped, provided the duties are paid, and the public Revenue is not defrauded. Are Customs duties imposed for the purpose of thwarting and opposing trade, or to create Revenue with as little pressure as possible on Trade? Is it intended to change the course of trade, and force it from Victoria to New Westminster? This is simply chimerical, if for no other cause, from the mere relative position of the two places, the one situated inland on a comparatively inaccessible River, the other built on a safe and commodious harbor, on the margin of the Ocean.
There is no cause for rivalry; no art can ever make New Westminster, what Victoria now is—a resort for Ocean going ships. Were Victoria destroyed New Westminster would not profit by the loss, on the contrary, it would be to her, the greatest possible calamity. Its effect would be to throw the trade of the coast into the American Ports in the Straits of De Fuca, and British Columbia would become, commercially, a dependency of the United States. Such Ports now exist, and British supremacy was established only after a severe struggle. If Victoria be necessary to British Columbia, is it wise thus to oppress its trade; if not necessary, the trade will of itself cease.
15. Viewing the question in all its bearings, adds force to the suggestion, I have made to your Lordship, for the immediate disallowment of the Act in question.
16. I trust your Lordships will see the matter in the same light and at once, and for ever, seal the fate of a measure, fraught with loss and disaster, to the country at large.
17. This is not the only relief the Country demands, it is but one step towards a perfect recovery. I am prevented from pursuing the subject, at present, by the sudden departure of the European mail, and I must reserve my remarks for a future communication.
I have the honor to be Your Lordship's most obedient humble Servant James Douglas
To The Right Honble Lord Carnarvon H.M. Principal Secretary of State for the Colonies
Minutes by CO staff
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Sir F. Rogers In describing the present condition of V.C. Island, & B. Columbia Sir J.D. attributes the existing alleged distress to the B.C. Gold Export Ordinance—which was only an experiment & lasted for no more than one year—and to the B.C. Customs Ordinance, which is to be disallowed if it is not amended before 29 June/67. But in my judgment he should have attributed the present distress, if he had wished to draw a fair picture, to a remoter period. V.C.I. was an insignificant place before the discovery of Gold in B.C. Victoria then naturally became the rendezvous for the Miners. Store shops & so called Merchants established themselves there. They got rich, speculated largely, & relied upon the free trade & the everlasting continuance of the gold fields in B.C. But miners are migratory, & these have been for a time seduced to Oregon & California by the reports of other gold miners. They return, however, to B.C. which must, like all gold producing Countries be fluctuating in its prosperity. Taking B.C. at it's [one line off microfilm] that it, is other than a complete success. Except for the Royal Engineers who were sent there it has cost this Country nothing, and it at once commenced with a revenue in the first year of £50,000, wh. has risen to £150,000, though now it only amounts to about £116,000. I do not dispute the fact stated by Sir J.D. that Victoria is in a bad way. His statements abt B.C. I do doubt. I only wish to say that not in my opinion only, but in that of competent persons, if any can be found who are unconnected with Commerce, the temporary bankruptcy of Victoria is due solely to over trading, smuggling, dependence on the success of B.C. as a gold Colony and to the incubus of an Assembly which by its legislation or perhaps want of proper Legislation has frustrated every attempt on the part of an able an honest & a patient Governor to direct its course into channels whh wd be beneficial to the Community. I wd add in conclusion that Sir J. Douglas' representation should be read by the Light of Governor Kennedy's despatches on the state of the Colony. And especially I invite attention to his desp: of the 24 Jany/66 Confidential P 63 which forbids the expectation of any other result than that described by Sir J.D. when a Colony is legislated for by such a set of Legislators as they have had in Victoria.
Lord Carnarvon will give us directions as to the ansr wh: he will wish to have returned to Sir J.D. The main facts are that though the Gold Export Ordinance may have been faulty, it was only an experiment to raise money for the necessities of the Colony and is abandoned. And as to the Customs Amendment Act it has been ordered to be disallowed.
ABd 31 Oct
I should be inclined to direct the Govr to inform Sir James Douglas that Lord C. has received his letter. That Sir J.D. must be too well acquainted with the rules of the Colonial Service to suppose that Ld C. could take any notice of it till it had been transmitted thro' the Governor accordg [to] the practice wh is uniformly considered indispensable. And that he will readily consider this or any other representation wh he may deem to make in that the proper manner.
As to the Substance of the matter Sir J.D. unfortunately is the man in the whole world whose personal authority is least valuable on this question. He ([being?] Governor) acquired a large property in V.C.I. and is accused I do not say whether justly or not of having so carried on the Govt of the two Colonies, as to give value to property in V.C.I. Certain it is—as he complains himself—that since B.C. has had an independent Governor the value of property in V.C.I. has been destroyed. Very likely from the causes enumerated by Mr Blackwood—but very likely in part also from successful attempts made by the B. Columbian merchants to retain the custom of B.C. miners who used [initially?] to spend their money in Victoria—or by buying imports from Victoria.
I do not believe the export duty on gold to be a bad tax abstractedly but it seems to have been unpopular & difficult to collect (of course).
The differential import duty I do not doubt to have been outrageous. But it is to be amended—after having served as a spur to union, by showing V.C.I. the disadvantages of disunion.
FR 1/11 CBA 1/11
This letter from Sir J. Douglas has only just reached me.
Dft the answer on Sir F. Rogers' min. but let me see it.
The differential import duty Ordinance is a very bad one; but I understand it to have no force as soon as the union of the two Colonies is proclaimed?
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I think that a copy of Sir J.D.'s comn may go out to Govr Seymour informing him of my answer. I sd wish to hear from Govr Seymour what he has to say on the point.
C 12 Nov
Other documents included in the file
Draft reply, Carnarvon to Officer Administering the Government, No. 22, 16 November 1866.
I have ventured to submit some softening words.
TFE 14/11
Other documents included in the file
*
Draft reply, Carnarvon to Seymour, No. 22, 15 November 1866.
Correspondence (private letter):
Douglas to Carnarvon (Parliamentary Under-Secretary), 14 September 1866, National Archives of the UK, 10178, CO 305/30. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=V666D03.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=V666D03.scx) . Accessed 4 March 2018.
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goldANDexportANDtax9.pdf
3/4/2018 The Colonial Despatches: 5072, CO 60/27, p. 384; received 27 May
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* Probably then by one of the 40 Acts coming.
Despatch to London Seymour to Carnarvon (Parliamentary Under-Secretary) 5072, CO 60/27, p. 384; received 27 May
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No. 50
18 March 1867
I would beg leave to refer Your Lordship to my despatch No. 20 of 11th January. I therein acknowledged the receipt from Your Lordship of a letter from Sir James Douglas commenting unfavorably upon the British Columbia Customs Ordinance 1865. I expressed my opinion that though I believed the writer would wish the matter to drop, still it was better that my report should be placed on record.
2. I sent a note, copy of which is enclosed, to Sir James Douglas. I forward his reply. As I anticipated he does not wish to proceed in the matter. Our relations have always been of a very friendly nature and I have not informed him that I am in possession of a Copy of his letter. Your Lordship will observe a statement hardly to be expected in a letter from Sir James Douglas, he says— You know as well as I can point out that this is not one of Nature's favored Countries. It has few natural attractions and will not thrive otherwise than by nursing and careful management. On whose reports other than Sir James Douglas's did the Duke of Newcastle inform me that he appointed me to the Governorship of British Columbia without waiting for my acceptance, as he could not give any man a more interesting duty than that of developing the "marvellous resources of the Colony?"
3. I will not deny the statement contained in the second paragraph of the late Governor's letter, that the Colony is now labouring under considerable depression. Anyone who sets his foot in Victoria will see that the town is going through a period of considerable adversity, but on reaching New Westminster he will be much less struck by signs of decadence. The Police Magistrate informs me in a letter which I enclose that there is but one dwelling house untenanted in the town, and in further support of my assertion I add a portion of an address presented to me by the Municipality of New Westminster on my return from England— While we cannot point to any very great progress made by this City during Your absence, it is a satisfaction to know that some substantial advancement has marked that period, and that the commercial crisis which has overtaken these Colonies has fallen with less severity upon this Community.
4. Proceeding Northward we find that in Yale there is not a house to let and at Cariboo, still our principal Gold field, a larger population is wintering than has ever yet passed the shorter days of the year in its severe climate. Undoubtedly a good many road side houses on the main line of road have been closed, many for the not unsatisfactory cause that the improvement in the roads has so facilitated travelling, that places of halt are less frequently required than formerly. The little town of Quesnelmouth has been almost abandoned in consequence of the road having been completed into the heart of Cariboo East and many habitations have been abandoned on the Douglas-Lillooet route, as public favour has almost unquestionably given the preference to the rival line by Yale and Lytton. Here may I mention incidentally that I am not the person to blame for the construction of competing roads, at a cost upwards of a hundred thousand pounds to the young Colony, leading to a single gold mine. The mere keeping in repair of which is one of the heaviest charges on the revenue.
5. I admit that depression of a very serious degree now presses upon the Colony. But I see that comparatively an equal amount of gloom hangs over the neighbouring territory of Washington and State of Oregon. The conclusion of the American war has caused a change in the current of emigration; it sets now from the Pacific to the Atlantic Coast.
6. To turn towards the reasons assigned by Sir James Douglas for the present despondency. He attributes the depression to arise, first; from the temporary imposition of a tax on the export of Gold. On this point I have only to say that the tax was recommended to the Legislative Council after consultation with the Mining Board of Cariboo, elected by the Miners themselves, and that it passed through the Council without one adverse vote. The principal opposition to its operation arose in Victoria, where public agitation has been matured into a science, and, had the mining population been left to itself it is probable that either the tax would have been endured without remonstrance or met with such temperate opposition as would have led to its repeal without attracting the notice of the whole Pacific Coast to our local jealousies—a notice which unquestionably inflicted temporary injury. But as to the Gold Export Tax having "driven hundreds of Miners in disgust from the Country," I must entirely dissent from the Statement of Sir James Douglas.
7. The tax on Gold has however been repealed and it forms but the introduction to the grievance of the Customs Ordinance of 1865. The portion of the ordinance to which Your Lordship objected is about to be repealed * and therefore I would refer principally to the reports from all the Acting Magistrates of the mainland upon the manner in which the Ordinance has
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[VJ]worked. Mr Brew, of New Westminster considers that the Act was, "as it intended to be a positive benefit to this Colony." Mr O'Reilly, of the Columbia district says that, "the Ordinance referred to has not affected the traders of the Columbia district." Mr Ball of Cariboo West cannot see "that the Customs Ordinance of 1865 in any manner brought about this reverse." Mr Sanders of Yale and Lytton reports, I am happy to be able to state that the description in question (that by Sir James Douglas) has in no way a general application to the District in my charge for not one house is uninhabited and not more than two shops closed—that commercial matters for some time past have been extremely depressed, business exceedingly dull —in fact almost stagnant—cannot be denied, but to ascribe the consequent embarrassments to the effects of the Customs Ordinance is most absurd. Mr Cox from Cariboo East reports, "I beg to state that the Ordinance referred to in no way contributed to the wretched condition of the Country." Mr Elliot of Lillooet says, "Whatever effect the Customs Ordinance may have had in other parts of the Colony, I am fully persuaded that in the Districts of Douglas and Lillooet it has not produced the evil."
8. I referred additionally to the Collector of Customs. He writes, that there is a change and a depression in the circumstances of the Victoria speculators it would be idle to pretend to deny—it is just as preposterous for them to pretend that their losses are attributable to the Customs Law here and later in his letter, The people of New Westminster are not losing ground. There is no sort of political excitement among them. No people can be more contented and satisfied with their Government and notwithstanding the crisis through which we are all passing there is nothing to discourage prudent men from looking forward hopefully to the future.
9. I wish to leave the magistrates principally to speak respecting the operation of the Customs Act on the mainland, but I must make a remark upon the eleventh paragraph of Sir James Douglas's letter. He writes, the first measure of relief which I would suggest to Your Lordship and it will be hailed with joy by both Colonies is the immediate disallowance of the British Columbia Customs Amendment Ordinance 1865. It so happens that at this very time a Bill is before the Council repealing the clause to which Sir James Douglas so particularly objects. Every Member from Vancouver Island (now united with British Columbia) opposes the reversal of the general principal of the Measure. Had I not in deference to Your Lordship's commands made a Government question of the withdrawal of the provision, which, in the opinion of the Lords of the Treasury imposed differential duties, I should be outvoted by a large majority.
10. Sir James Douglas further writes, There is no cause for rivalry; no act can ever make New Westminster what Victoria now is, a resort for ocean ships. Were Victoria destroyed, New Westminster would not profit by the loss, on the contrary, it would be to her greatest possible calamity. This is not candid. Since Union has taken place one of Her Majesty's Ships, much larger than any merchant ship that has ever visited the Colony, has passed repeatedly between Esquimalt and New Westminster. A vessel that could not by any possibility enter Victoria. Even when proceeding to Victoria in Her Majesty's Despatch boat "Sparrowhawk" I have to drive five miles to Government House Victoria, whereas I embarked, on the Fraser within a few yards of this house. There cannot be the slightest doubt that New Westminster is admirably situated for a place of large trade.
11. There are still local jealousies, though mitigated a little by Union. There are difficulties but not of my creating. It was not I who expended enormous sums of borrowed money in making competing roads to a single gold mine. Nor did I start two sea port Towns. Two Capitals close together. Sir James Douglas's policy was clever, and may have been able, in the furtherance of certain interests but it was in my opinion deficient in the characteristic proverbially asserted to be the best policy.
12. It may not be alien to the subject to enclose a return of the average prices of the principal articles of consumption according to the values reported by the Magistrates resident in Cariboo during the years 1863, 1864, 1865 and 1866. The steady reduction of prices is remarkable and shows that the Miner has no cause of complaint against the Customs Ordinance of 1865.
I have etc.
Minutes by CO staff
Mr Elliot As Sir J. Douglas is content to let the matter drop this may be put by.
The Customs Act of 1865 is to be disallowed if an amending Act is not recd before the 29th June. Some 40 Acts have recently been passed but not yet come to hand—probably the amending Act amongst them.
CC 30 May
Some of the contents of this despatch supply useful general information on the state and prospects of the Colony.
No action is called for. Put by?
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TFE 31 May CBA 3/6 B&C 6/6
Ordinance No. 5 of 1865—disallowed by desp. to Govr No. 40 21 June/67—See Treasy/6015/66.
Documents enclosed with the main document (not transcribed)
Seymour to Sir James Douglas, 13 January 1867, forwarding copy of despatch from Carnarvon and requesting copy of Douglas's letter of 14 September 1866.
Douglas to Seymour, 22 January 1867, declining to forward the requested letter in light of the union of the colonies.
C. Brew, Police Magistrate, New Westminster, to Colonial Secretary, 21 January 1867, defending the customs ordinance 1865.
P. O'Reilly, Magistrate, Columbia District, 21 January 1867, report defending the customs ordinance.
H.M. Ball, Magistrate, Cariboo West District, 18 January 1867, report defending the customs ordinance.
E.H. Sanders, Magistrate, Yale-Lytton District, 19 January 1867, report defending the customs ordinance.
W.G. Cox, Magistrate, Cariboo East District, 29 January 1867, report defending the customs ordinance.
A.C. Elliot, Magistrate, Lillooet District, 1 February 1867, report defending the customs ordinance.
W. Hamley, Collector of Customs, 21 January 1867, minute defending the customs ordinance.
Newspaper clipping, unnamed, no date, quoting the average prices of the principal articles of consumption at Cariboo as reported by the magistrates during the years 1863 through 1866.
Despatch to London:
Seymour to Carnarvon (Parliamentary Under-Secretary), 18 March 1867, National Archives of the UK, 5072, CO 60/27. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm? id=B67050.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B67050.scx) . Accessed 4 March 2018.
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3/4/2018 The Colonial Despatches: 3246, CO 305/28, p. 135; received 2 April
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Despatch to London Kennedy to Cardwell 3246, CO 305/28, p. 135; received 2 April
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 10, Financial
13 February 1866
1. In reference to the subject of my Despatch No 9 of 8th February 1866, I have the honor to enclose a copy of Resolutions of the Legislative Assembly in reply to my Message of 2nd February 1866 transmitted in the Despatch above quoted, and Reports of the Debates theron extracted from local newspapers.
2. I have already treated of most of the matters to which these Resolutions relate which will obviate the necessity of my now addressing you at any great length.
3. The assertion contained in the first Resolution that, in a Colony which may at some time be placed under responsible government, offices in the public service cannot be permanent involves, as I believe, a wholly novel proposition, and while it strikes at the root of the efficiency and respectability of the service, ignores the propriety of faith being kept with public servants. As regards the offices of Registrar General and Assessor the Bills affecting them are not yet introduced and if they should be passed by the Assembly would not be likely to become law.
4. Resolution 2. I believe that the respectable portion of this small community deprecate very earnestly the manner in which the Assembly has dealt with the Estimates and, although anxious for all reasonable economy, see no justification for the mode in which the Assembly has proceeded to effect "retrenchment."
5. I am unable to admit the assertions contained in Resolution 3 to be in accordance with fact.
6. The claims of the Assembly as put forth in Resolution 4 have been already remarked upon in previous despatches. I would remind you that they are set up now for the first time by the Assembly. The statement in this Resolution that "various votes of last year were applied contrary to the express stipulations of the Assembly" is not in accordance with fact.
7. Resolution 5 is but a juggle with figures. As will be seen by the statement which accompanied my Despatch No 9 of 8th February 1866, the Assembly have increased the Estimates by sums amounting in all to about $77,000 (£15,875), a proceeding which I conceive to be wholly in excess of their powers. They have also reduced and disallowed sums proposed in the Estimates to a considerable amount. I have not questioned their right in that respect. Various appropriations for the year 1865 were, as I have already informed you in another Despatch, necessarily not availed of owing to the want of funds.
8. Resolution 6 (Police). It will be observed that I remarked upon this subject in my Message to the Assembly dated 2nd February 1866 (herewith) under the head of "Police."
9. This subject cannot be dismissed without some further remark.
10. A moments consideration must convince any reflecting mind of the dangerous absurdity of committing the care of life, property, and peace in such a community as that of Vancouver Island, to five policemen which would afford one man on duty at a time.
11. The character and constitution of society in gold seeking countries is well understood, and I regret to say that Victoria has its full proportion of thieves, burglars, gamblers, publicans and prostitutes.
12. It will be remarked there is no other available force in this Colony beyond the moral support afforded by the presence from time to time of some of Her Majesty's Ships. Robberies are frequent and "the knife" often resorted to in drunken quarrels.
13. By a Return called for and presented to the Assembly on the 25th January 1866 it appears that the Police Magistrate of Victoria adjudicated upon 1583 cases between the 30th September 1864 and 30th November 1865.
14. The Legislative Assembly I fear look to the neighbouring Territory for precedents where, "vigilantes" administer justice and "difficulties" are adjusted with the revolver and bowie knife.
15. It is obvious that a total of five policemen for the whole Colony, affording one at a time for duty, is virtually to leave whiskey selling to Indians, drunkenness, and prostitution unchecked, and the extent to which these are carried
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among the Indian population alone, may be gathered from the letters of the Bishop of Columbia, the Rev A.C. Garrett, and the Superintendent of Police, copies of which I enclose.
16. I had occasion to report on the state of the Police force in my Despatch No 100 dated 3rd December 1864 and now that Lieutenant Hankin R.N., the Superintendent, has brought it into a state of efficiency and decency the Legislative Assembly see fit to reduce it to a standard both as to pay of officers and numbers which renders it useless or compels the members of it to have recourse to the same means for a subsistence.
17. The number of prisoners undergoing sentence in the gaol varies from 50 to 60—desperadoes of all nationalities— and the absence of any force beyond a gaoler and a few warders to suppress any outbreak is courting a danger which will more than probably occur.
18. There are, moreover, 800 stand of arms given to the Colony by Her Majesty's Government and at present in charge of the Police without any guarantee against their being seized.
19. The very small number of resident British population renders the reduction or abolution of the Police force a still graver and more significant fact.
20. In relation to Resolution 7 it will be seen by reference to my Despatches No 57, 18th July 1865 and No 80, 20th September 1865 that a sum of $1200 (£247) was voted and passed in the Appropriation Act for 1865, under the head, "Fixed Establishment, Auditor, Salaries"—and the words "Auditing Accounts" under such a heading may not unreasonably be regarded as synonymous with "Auditors salary."
21. Resolution 8 (Coroner). This office was created by a letter of my Predecessor to meet a temporary want in 1860 and was never submitted to or sanctioned by Her Majesty. Being advised by the Acting Attorney General that the Governor had exceeded his powers in appointing a "coroner" and that the holder of the office, Dr Dickson, had no legal authority for acting as such, I with the advice and unanimous concurrence of my Executive Council transferred the duties heretofore performed by Dr Dickson to the Stipendiary magistrate of Victoria, thereby effecting a considerable saving to the public. The office over which the Executive could exercise no efficient control was rapidly degenerating into a "job."
22. Dr Dickson being a Member of the Assembly advocates the retention of his own services and protests against the legality of his being deprived of office. On this latter point I may state that I am fortified by the highest legal authority in the Colony.
I have etc.
Minutes by CO staff
See minute of 12 Apl with 3765.
ABd
Documents enclosed with the main document (not transcribed)
Newspaper clippings, British Colonist, 9, 10 and 13 February 1866 and Daily Chronicle, 9, 10 and 13 February 1866, reporting debates held in the House of Assembly on various resolutions, as per despatch.
Assorted returns dealing with cases brought before the Stipendiary Magistrate for Victoria between 30 September 1864 and 30 November 1865.
Printed copy of resolutions passed by the legislative assembly on 9 February 1866, as per despatch.
Kennedy to Legislative Assembly, 2 February 1866, unnamed newspaper clipping, responding negatively to their amendments to the estimates for 1866.
G. Columbia to Kennedy, 6 February 1866, enclosing a memorial from the Reverend A.C. Garrett, principal of the Indian mission, on native conditions in the colony, and expressing his concurrence with the conclusions and recommendations contained therein.
Garrett to Kennedy, 5 February 1866, as noted below.
Philip Hankin, Superintendent of Police to [Kennedy], 8 February 1866, as noted below.
Documents enclosed with the main document (transcribed)
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Garrett to Kennedy, 5 February 1866
Indian Mission
February 5th 1866 To His Excellency the Governor May it please Your Excellency
I desire most respectfully to submit for Your Excellency's consideration, the following facts in connection with the state of the Indian population.
1. The Indians on the reserve having been for a considerable period without any supervision have become more abandoned than ever if that were possible.
2. Drunkeness and consequent riot are the rule of their existence.
3. Filth accumulates among their dwellings in a degree which gives sad and fearful promise of pestilence when warmer suns shall have developed its latent decomposition.
4. They neglect to bury their dead, and have now as many as seven or eight bodies in canvas covered sepulchres in the very midst of their swarming camp.
5. The numbers who live in Victoria for purposes of prostitution spread death among their fellows both by disease and whiskey, facilities for procuring liquor being afforded by their residence in town.
To remedy this fearful state of things I would suggest for Your Excellency's consideration the following outline of a plan for the amelioration of the Aborigines on the Reserve.
1. Appoint a Constable, of sufficient judgment to avoid attempting what is impracticable, sufficient honesty to be above corruption, sufficient moral strength to escape the many snares which will be skilfully laid for him, sufficient experience to detest incipient crime, and sufficient courage to compel the respect and attention of the Natives.
2. He should reside on the Reserve and be responsible for the sobriety and good order of the inhabitants. Let it be his duty to compel the abatement of all nuisances, and to enforce such sanitary laws as it may seem expedient to Your Excellency to impose for his guidance.
3. Funds for the payment of this officer might I think be drawn from two sources
(a) Partly from the rents and proceeds of the Reserve, as the Songes would derive large benefit from his presence.
(b) The balance might be derived from a poll tax to be levied on all comers from the North or elsewhere in connection with a system of registration.
4. A few of the Chiefs of greatest influence might be appointed to assist the officer, and rewarded with a trifling present for approved service.
Should your Excellency deem it desirable to attempt any such measure for the improvement of the Victoria Indians, if in any way I can be useful either in the superintendence or execution of it, I trust Your Excellency will avail yourself of my services without hesitation.
I remain &c Alexr C. Garrett
Hankin to Kennedy, 8 February 1866
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Police Office Victoria
February 8th 1866 Sir
In accordance with the request of Your Excellency I have the honor to submit the following for your information.
There are about 200 Indian prostitutes living in Cormorant, Fisgard, and Store Streets in a state of filth, and dirt beyond all description. On entering one of their shanties in the afternoon I have seen 3 or 4 Indian women lying drunk on the floor, nearly naked, covered with blood, and their faces cut with broken bottles with which they had been fighting.
In one place known as the "Gully" between Johnson and Cormorant Streets some of these dens of infamy are two and three stories high, the rooms about eight feet square, and as many as 6 or 8 persons living in each room. The chimneys belonging to these shanties are in several instances very defective and dangerous.
The shanties are principally owned by Chinese, and hired by the Indians at a monthly rental of about 5 dollars.
The stench emitted from these dens is abominable, and is sufficient to cause some loathsome and contagious disease. Whiskey sellers, prostitutes and bad characters are to be found in this locality, and unfortunate sailors coming on leave from their ships are allured here by the Indian women, and robbed.
If it were not for the constant supervision of the Police, it would be dangerous for any respectable person to walk through these streets either by day or night. New shanties have lately been erected, and are still increasing in number.
I have &c Philip Hankin Superintendant of Police
Despatch to London:
Kennedy to Cardwell, 13 February 1866, National Archives of the UK, 3246, CO 305/28. The Colonial Despatches of Vancouver Island and British Columbia 1846 1871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=V66010.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=V66010.scx) . Accessed 4 March 2018.
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Despatch to London Birch to Cardwell 8284, CO 60/25, p. 2; received 27 August
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 50
9 July 1866
I have had the honor to receive your despatch No. 23 of the 30th April last, transmitting Copy of a Letter from the Lords Commissioners of Her Majesty's Treasury in which their Lordships advert in general terms to the financial condition of the Colony and desire to be furnished with a Statement of the actual Receipts and Disbursements within the year 1865 together with an account of the Liabilities of the Colony at the close of that period.
2. It is not within my province now to refer to the Road Policy of a previous administration or to question the propriety of the construction of two rival Roads through a wild and thinly populated Country at a cost of £122,280 on the Yale-Clinton and Alexandria Road and £78,200 on the Douglas-Clinton and Alexandria Road. These expenditures have long since received the approval of Her Majesty's Government, but they have entailed upon the Revenue a heavy and in part unnecessary charge amounting to £13,500, for their maintenance and for interest on the debt incurred for their construction.
3. In explanation of the present financial condition of the Colony it is necessary that I should refer to a period previous to that mentioned in the Treasury Letter. At the close of the Year 1863 the entire amount of the Loans of £100,000 authorized under certain proclamations had been expended and the Public Accounts showed a debt to the Bank of British Columbia of £8000, to the Vancouver Island Treasury of £9000, no less a sum than £14,900 of temporary Bonds, payable in one, two and three years were issued within the Year, and sums amounting to £10,000 were also due to Contractors for work performed in 1863. Thus, at the commencement of 1864 the local debts incurred in 1863, payable out of the Revenue of the following year amounted to £32,200, a further sum of £9,700 on account of the Bonds being payable in 1865, 1866.
4. The Cariboo Waggon Road had, at that period, reached Alexandria, a distance of 120 miles from the Mining district. The Country for the greater portion of the remaining distance is thickly timbered, with little or no food for Pack animals and the necessity for the completion of the Road was urgently called for in the interests of Cariboo then the only known mining Region and the main support of the Colony. In fact the £200,000 already invested in the construction of roads would have been comparatively thrown away had the roads terminated at Alexandria.
5. At the first meeting of the Legislative Council in 1864 an Ordinance was passed and received the sanction of Sir James Douglas authorizing a further extension of the Public Debt by £100,000. The Council at the same time recomended the immediate expenditure of £48,000 in the completion of the Cariboo Road. Mr Seymour on his arrival in the Colony in April 1864, desirous of carrying out the pledge of a former Administration, authorized, in anticipation of the Loan, the continuance of the works, the survey of the line of Road was completed and one third portion was constructed at a cost of £21,300 during the Year 1864.
6. Of the £100,000 Loan authorized in 1864—and partly expended in anticipation—it may be said the Colony received the benefit of only £60,000. The expenditure consequent on the Indian disturbances absorbed £20,000, nearly one fifth of the entire Revenue. The difficulty in disposing of the debentures necessitated the borrowing of money at a high rate of interest. The loss of £6,000 on the sale of the debentures and the payment to the Imperial Government of £10,700 for some useless Military huts reduced the Loan to the Amount mentioned. It cannot therefore be a matter of surprise that, with the payment of the debts of 1863, the many and unforeseen expenses of 1864, and the delay in realizing the Loan, the amount due to the Bank of British Columbia had increased at the close of that year.
7. The detailed Returns required by the Lords of the Treasury show the expenditure of the year 1865 to have been less than the Estimate by £32,000. To estimate the Revenue at the commencement of the Year must in the present state of the Colony be a mere speculation. In the Autumn of 1864 the Kootenay Mines attracted much attention and the Estimates for 1865 were framed in the expectation that a large Revenue would be raised from this District. With what justice this Estimate was made may be inferred from the fact that at the Commencement of the season the Revenue taken at Kootenay alone exceeded £1000 a week, the yield of Gold was large and every miner employed at remunerative wages. Suddenly however fresh discoveries in the Neighbouring Territory of Montana, the richness of which were naturally largely exaggerated by American Merchants, reduced the population at Kootenay from 2,000 to 300, and the Revenue consequently decreased. This and the impossibility of Collecting the Gold Export Tax on our Frontier are the main causes of the falling off in the Revenue as Estimated in 1865.
8. You draw my attention to the increase of the debt to the Bank of British Columbia at the close of 1865 as an evidence that the expenditure of the Colony had been continued throughout the year out of all proportion to the
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Revenue. I can only reply that in view of the expected Revenue Governor Seymour authorized important Public Works to be undertaken and that upon the receipt of information of the successful opening of the season at Kootenay, a trail, through British Territory, of 400 miles was commenced and completed at a cost of £11,000. All large Public Works are given out by Public Tender to contractors and it is consequently impossible to stop expenditure on such undertakings when once authorized. I give this explanation as I infer from Your despatch that I might have been expected to reduce Expenditure when I found the Revenue of 1865 might not meet Mr Seymour's Estimate. This under the circumstances was impossible.
9. The Estimates for 1866 transmitted in my despatch No. 28 will have shown that I have reduced the expenditure very largely. The main items of Expenditure in 1866 on Public Works will be incurred in paying the instalments due on former contracts and in maintaining existing Roads in repair, amounting to £15,000, which of necessity must be paid.
10. I cannot at present state whether the Revenue of the year will amount to or exceed the Estimate. I shall keep down every expenditure to the lowest limit. I have undertaken no public works but those of the most pressing necessity and this branch of Expenditure cannot be further reduced. I have made reductions in the Civil List exceeding £5000 but there are still some unnecessary Offices. On this subject I propose to address you in a separate despatch.
I have etc. Arthur N. Birch
Minutes by CO staff
Mr Birch makes a good statement of what he has done. I do not see that more is necessary at this moment than to send a copy to the Treasury for their information. I annex a draft for the purpose.
TFE 28 Sep
Documents enclosed with the main document (not transcribed)
Statement of receipts and disbursements for the year 1865, signed by Robert Ker, Auditor General, 14 July 1866.
Statement of assets and liabilities for the year 1865.
Other documents included in the file
Rogers to Secretary to the Treasury, 6 October 1866, forwarding copy of correspondence relating to the accounts of the colony with reference to their previous enquiry.
Despatch to London:
Birch to Cardwell, 9 July 1866, National Archives of the UK, 8284, CO 60/25. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B66050.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B66050.scx) . Accessed 4 March 2018.
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* N.B. I have given him leave of absence for three weeks to see his friends.
[FR]
* & a very bad principle to go upon.
CC
Despatch to London Seymour to Buckingham 8565, CO 60/28, p. 281; received 31 August
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No. 90
Victoria
15 July 1867
I have the honor to forward a return of the probable receipts and positive obligations of this Colony for the half year ending the 31st December. Your Grace will see that with every precaution we can use there will probably be a deficiency of two hundred and twenty three thousand dollars or about forty five thousand pounds (£45,000). Perhaps Your Grace will inform me if we can look for any assistance from the Mother Country under these circumstances. I had no idea when in England last year that the financial condition of the two Colonies was so bad or else I should have communicated fully with Your Grace's Department on the subject. One great cause in the present depression is the admission duty free on the Mainland of the large supply of commodities which were imported to this place while it was still a free port.
I fear that I shall have to make some further serious reductions in the staff of public officers.
It is now for the first time that the Colony has been thrown on its own resources. Hitherto it subsisted to a considerable extent on loans contracted in the Mother Country. * We have now, at a time of unusual depression along the whole Pacific Coast, to make provision for the repayment of borrowed money expended.
I have etc.
Minutes by CO staff
Mr Elliot The despatch is not signed. A more unsatisfactory despatch I never read. A probable deficiency at the end of the present year of £45,000. In a Memo I have sent on as to the Debt it will be seen that the Colony is in arrear in the sum of £4375 to the Crown Agents on account of interest & Sinking Fund of their Debt. £4125 more becoming due on the 1t Oct.
It is to be hoped that Governor Seymour is preparing some Financial scheme for extricating the Colony from its present embarrassed state—but the sooner he is made aware that he will get no pecuniary assistance from the Home Treasury—supposing I am right in inferring that is so—the better for himself & the Colony.
We may expect Mr Birch here immediately, & perhaps it may be as well to hear what he has to say.
CC 2 Sept
Mr Adderley Mr Birch has arrived. * But I am inclined to think that the first step shd be to ascertain what can be ascertained in the office as to the mode in wh this has come about, e.g. I should like to see—what was the Revenue & Expenditure per ann for the last few years & particularly how much of that expenditure went in Roads & public works, or such unforseen matters as the Indian rebellion, and also how much was defrayed by loans & how much by Revenue.
Also, as Mr Seymour says that much is due to the decrease of the customs since or in anticipation of Union, (the Merchants pouring their goods into Victoria while it was a free port, & then pouring them duty free from Victoria into B.C. as soon as the Colonies were united). I should like to see what was the position of the Colony before that cause operated. My impression is that they were more or less insolvent & only went on by aid of the Bank before that time, having inter alia remitted the Gold Tax witht taking
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any means by new taxation or reduction of expenditure to fill up the deficit wh that (I suppose) had caused.
This only concerns the past. As to the future it is no doubt true that high taxation, distress and want of assistance from home will probably cause the American population of the Colonies to press for annexation—a pressure wh wd soon become irresistable except at a cost far greater than the worth of the fee simple of the Colony.
On the other hand if the Colonists once find that the annexation threat [is] satisfactory in extracting money from us they will plunder us indefinately by it.
I think in this state of things, that, although I do not anticipate that HG will hold out expectations of pecuniary assistance to B.C. yet it wd be better to master the case as far as possible, before answering this in order to put the refusal on the firmest & least irritating grounds.
I suppose the question to be (in the long run) is B.C. to form part of the U.S. or of Canada; and if we desire to promote the latter alternative, what form of expenditure or nonexpenditure is likely to facilitate or pave the way for it.
FR 16/9
I agree we should first get all information. It seems to me impossible that we should long hold B.C. from its natural annexation. Still we should give & keep for Canada every chance, & if possible get Seymour to bridge over the present difficulties till we see what Canada may do. I think our US Minister should keep his ears open for any overtures of equivalents in exchange of this territory. Immediate reductions & new taxation are inevitable, & what will be the consequences.
CBA 17/9
Prepare comparative analysis of the expenditure & revenue for the last 2 years & of each Colony for 2 or 3 years before union—which will show the items which have caused the difficulties & the course to be adopted can then be better considered. The customs revenue will doubtless gradually improve after the consumption of the articles imported free.
B&C
Sir F. Rogers In July last Governor Seymour stated that the Colony of B Columbia would be in arrear on the transactions of 1867 by probably £45,000 & he asked for pecuniary assistance from home. He has repeated that request in several subsequent despatches, & more recently he has asked by Telegraph to be allowed to draw on the Imperial Treasury to the extent of £50,000.
Now although there can be no doubt that the finances are in a most embarrassed state, that the Colony is paying heavy interest & sinking fund on Loans contracted in England, that it is largely indebted to the Colonial Bank, to the Crown Agents, to some of its public officers, & that the Salaries of the Public officers are several months in arrear it is of course necessary that the exact financial condition of the Colony should be enquired into before the Secretary of State & the Treasury can come to a final decision as to whether B.C. should receive Imperial Aid, or not.
In accordance with your direction Mr Hemming & I have been engaged during the last few days in such an enquiry, which owing to the manifest discrepancies occuring in the financial returns & the annual Blue Books, has been accompanied with some difficulty.
The result of our investigations will be found in the annexed tables showing the Ordinary Revenue & Expenditures under each head for the last 4 years, and the amount of aid (Table No. 3) on the one hand from temporary & permanent Loans, and of the disbursements on the other in part repayment of those Loans, in redemption of bonds, & in remittances to Agents to meet the interest &c accruing on permanent Loans.
From these tables, Nos 1 & 2, it would appear that The total Ordinary Revenue during the 4 years ending in 1866 has been £433,895. 5.0
————— The total Ordinary Expenditure, including that on Roads during the same period has been £588,955.19.2
which shows an excess of Expenditure over Revenue of £155,060.14.2.
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The temporary & permanent loans raised during 1862/3 1864 & 5 have been respectively
Temporary £135,081.3.7 (Bearing 10 & 12 p.ct)
Permanent £200,000.0.0 Total £335,081.3.7
————— The disbursements made for the redemption of Bonds & repayment of temporary loans has been
£125,141.5.9 Total £125,141.5.9
Leaving an apparent debt at the end of 1865 of £209,939.17.10. The remittances to the Agents for interest & sinking fund during that period were £42,109.12.6.
The permanent Loans of £200,000 were raised in 186234 under local Ordinances for the purpose of carrying two roads through a wild & thinly populated Country.
The last Loan for £100,000 raised in 1864 (which only realized £95,800) was not however entirely spent on roads. £20,000 went towards the suppression of Indian disturbances & £10,700 to the Imperial Treasury for buildings occupied by the Royal Engineers & for Surveys undertaken by them.
The Colony received therefore only £65,100 for the objects for which that Loan of £100,000 was raised.
The amount which the Crown Agents must annually provide for interest & Sinking Fund on the BC Loan of £200,000 & the Vancouver Isld Loan of £40,000 is £24,000 (see statement prepared by me in September last No 5.) The account of the Colony with the Agents is annexed & shews a deficit of £4550. (No 4.)
One of the causes for the present depression has been the falling off in the Customs Revenue owing to large importations of Merchandize into Victoria while a free port, which, after the Union were introduced on the Mainland without the payment of any duty. This falling off would simply be of a temporary nature.
All these circumstances combined are stated to have caused a deterioration of over 95 per cent in the value of property, that is to say that Land which in 18634 was worth £100 would now fetch at auction £3 or £4.
It is worthy of remark, as will be seen from the detailed tables Nos 1 & 2, that in 1866 the cost of Establishments was £38,000 out of a Revenue of less than £95,000. (Estabts & interest on Loans therefore absorb 1/2 the Revenue).
In the same year in Hong Kong notwithstanding a large increase for the Mint Staff the Estabts only cost £32,000 out of a Revenue of £160,000—and the relative rates of Salary to the principal officers in those Colonies were respectively
B Columbia Hong Kong Governor £4000 & £1000 allowance £5000 Col Secty £800 £1500 Auditor £500 £1000 Registrar £500 £800
In conclusion I beg to be allowed to observe that the Blue Books, the Estimates & the Financial Returns from B Columbia besides being carelessly prepared, are most irregularly transmitted to this Country— for instance the Statements of Revenue & Expenditure & the Estimates for 1867 which were drawn up or rather passed in March last have only within the last few weeks been received in this office, and they are seldom if ever accompanied by such an explanation as would make them intelligible without a rigid examination.
The Revenue of Vancouver Island the year before Union was £58,000 exclusive of Loans.
W Robinson 18 Dec 67
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Documents enclosed with the main document (not transcribed)
*
[Enclosures with minute above:]
Table No. 1, Statement of British Columbia Revenue for the years 1863 through 1866, showing a grand total of £433.895.5.0.
Table No. 2, Statement of British Columbia Expenditure for the years 1863 through 1866, showing a grand total of £598.255.19.2.
Table No. 3, Statement of Receipts on Account of Loans for the years 1862/63 through 1865.
Table No. 4, Statement of Accounts with the Agents, showing the status of the assets and liabilities of the colony, prepared by W.C. Sargeaunt, Crown Agent, 17 December 1867.
Table No. 5, memorandum on British Columbia finance, prepared by colonial office staff [taken in entirety below].
Sir F. Rogers I have been through the accounts of B Columbia with the Crown Agents.
The first Loan of 1862 for £50,000 was sold in the Colony, what it realized is unknown.
The second of 1863 realized £52,403.19.0. The third of 1864 for £100,000 was sold piecemeal—the Agents unwilling to put it on the market were obliged to do so because the Govt drew so heavily on them—it realized £95,800 or £4.4s discount.
The liabilities of the Colony on the 1 Oct (next Tuesday) will be £8500. The account with the Agents is in a deficit of £5,940.
The annual payments which the Agents must meet for interest & sinking fund, on B.C. Loan £200,000 & VCI £40,000 are 1 Jany in each year 6250
1 Apl " " " 4125
15 Apl " " " 2000 1 July " " " 6250 1 Oct " " " 4125 15 Oct " " " 2000 Total 24750 which includes payt of interest on V.C. Loan of £40000 or nearly one fourth of the Actual Revenue.
WR 28 Sept 67 [The following minutes overlap in time with those already taken:]
Mr Holland The Duke of Buckingham would be glad if you would look at the B. Columbia & Vancouver Loan Acts & see what power the Governor has of remitting what is due for interest & sinking Fund on the Loans raised.
The Acts are, (herewith) B. Columbia No 44 of 1862 £50,000 56 of 1863 50,000 7 of 1864 100,000 Vancouver
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No 54 of 1862 £40,000
On the 1st April last B. Columbia was in arrear for interest & sinking fund to the extent of £9,000, to meet which the Agents had in hand, for all purposes, only £2843 leaving a balance of £6,157 agt the Colony. In addition to this amount there became due in July a further sum of £6250 for interest & sinking fund on the two £50,000 Loans amounting together to £12,449. And on the 15th July a sum of £2000 for interest & sinking [fund] on the Vancouver Loans of £40,000 became due = £14449.
Monies have subsequently been recd which have enabled the Agents to pay off all interest due, & a portion of what was due on account of the Sinking Fund, leaving only £4375 due.
On the 1st Oct. a further sum of £4125 will be due on account of the £100,000 loan.
I learn from the Agents that they have been promised further remittances.
Will you be good enough to add what you have to say & send this on.
CC 30 Aug
Mr Elliot As regards the first loan of 1862 for £50,000, the Governor may direct the Treasurer to appropriate half yearly out of the General Revenue of the Colony a sum equal to 7 1/2 per Cent on the total sum raised by Debentures.
This loan may be said to form a first charge upon the General Revenue.
As regards the loan of 1863 for £50,000 may direct the Treasurer, subject to the 1st Brit. Col. Loan of 1862 & to the Road Bond Act of 1863 (under which the sum of £1200 I think was raised), to appropriate half yearly out of the General Revenues a sum equal to 5 per Cent on the total sum raised by Debentures.
As regards the Loan of 1864 for £100,000 the prior charges of the General Revenue are the charges created by the 2 loan Acts above mentd, and by an Act of 1863 called the "Cook's Ferry & Clinton Road Bond Act 1863" under which £12750 has been raised.
In the case of the Vancouver Island loan there seems to be no prior charge upon the General Revenue.
HTH 3/9
Documents enclosed with the main document (not transcribed)
Statement of estimated revenues from 1 July to 31 December 1867, showing a total of $270,310.
Statement of funds needed to meet the necessary expenditures and liabilities of the colony from 1 July to 31 December 1867, showing a total of $223,584.
Other documents included in the file
Table listing revenues and expenditures for British Columbia and Vancouver Island for the years 1864 through 1866, prepared by colonial office staff.
List of acts authorizing the raising of loans for British Columbia 1860-1866 and Vancouver Island 1862- 1864, prepared by colonial office staff.
Two tables indicating the status of the colonies with respect to interest and sinking funds, prepared by W.C. Sargeaunt, Crown Agent, 20 May 1867.
Memorandum, T.F. Elliot, 31 December, indicating Buckingham's intention to print the papers of Rogers and Birch for Cabinet, and asking to know whether any further refinements were required.
3/4/2018 The Colonial Despatches: 8565, CO 60/28, p. 281; received 31 August
http://bcgenesis.uvic.ca/getDoc.htm?id=B67090.scx&search=gold%20AND%20financial%20AND%20tax#searchHit1 6/6
Printed copy of confidential report by Rogers and Birch on the financial status of British Columbia, with two tables appended.
Duplicate copy of despatch No. 90, Seymour to Buckingham, currently under discussion.
Robert Ker, Auditor General, to Colonial Secretary, 3 June 1867, indicating financial needs of Colony to end of the year, and the means of meeting the salaries of public officers, marked "enclosed in duplicate despatch No 90 of 15 July 1867."
Statement of estimated revenues from 1 July to 31 December 1867, showing a total of $270,310, enclosed in duplicate despatch No. 90.
Statement of funds needed to meet the necessary expenditures and liabilities of the colony from 1 July to 31 December 1867, showing a total of $223,584, enclosed in duplicate despatch No. 90.
Despatch to London:
Seymour to Buckingham, 15 July 1867, National Archives of the UK, 8565, CO 60/28. The Colonial Despatches of Vancouver Island and British Columbia 18461871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B67090.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B67090.scx) . Accessed 4 March 2018.
Last modified: 14:49:36, 28/2/2018
goldANDfinancialANDtax4.pdf
3/4/2018 The Colonial Despatches: 1217, CO 60/29, p. 574; received 3 February 1868
http://bcgenesis.uvic.ca/getDoc.htm?id=B67162.scx&search=gold%20AND%20financial%20AND%20tax#searchHit1 1/3
Despatch to London Seymour to Buckingham 1217, CO 60/29, p. 574; received 3 February 1868
This transcription has not been fully proofed. [What does this mean?] (development.htm#reliability)
No. 162
13 December 1867
I ventured to telegraph to Your Grace recently a statement that the Colony was in very considerable financial embarrassment, and I enquired whether there was any possibility of our being assisted by a temporary loan from the Mother Country. If not, I had to state that I am afraid I should have to make some considerable reductions in the staff of Public Officers.
2. I must now furnish some justification for the steps I took. I enclose a statement of our financial position as prepared by the Auditor. It will be seen that we shall on the 31st December next require $223,000 dollars more than we shall possess to meet existing liabilities. This is entirely independent of $22,000 recently funded at 12 per cent interest. Of the $223,000 dollars, $110,000 are an overdrawn account at the Bank of British Columbia and upon this amount the Directors give us notice that they will charge interest at the rate of 18 per cent per annum after the 31st December 1867. $30,000 dollars will be required to redeem Debentures falling due on the 31st Decr.
3. We shall be incapable from existing sources to pay off this overdrawn account or to redeem these debentures. The exact amount of Revenue that is likely to come in up to the end of the year will be about $42,000. The first charge on this is for interest and floating debt. This amount to $39,200 which seems likely to leave less than $3,000 to carry on the machinery of Government to the end of the year, and to pay past Liabilities which altogether and irrespective of the Bank debt and debentures falling due, amount to the sum of $85,000 so that assuming we can arrange with the Bank for a delay in the payment of the overdraft and arrange with the Debenture holders to renew the Debentures there is a sum of $85,000 for past and accruing liability that we are unable to meet.
4. Nor is the prospect for next year much more encouraging. With the Public establishments reduced as low as they can be we shall only be able to pay our bare way without I am afraid being able to clear off past liabilities. The heavy rate of interest is crushing the Colony for nearly all Public works are at a stand still. Hospitals and other valuable institutions cannot be aided, and as they cannot be entirely supported by the small number of people in each locality they are declining rapidly and verging upon abandonment. Roads cannot be constructed and are barely kept in repair. Education must be entirely neglected for 1868. It is questionable whether we shall be able to contract for the conveyance of Mails to Cariboo, and if we do not, the most serious dissatisfaction amongst the miners will ensue. I believe that this state of things can only be remedied, either by the Imperial Government lending the Colony fifty thousand pounds (£50,000), or guaranteeing a Loan for that amount. With the enormous attractions of California close to us I fear that we cannot greatly increase the taxation without driving out the remaining portion of the population.
6. But Your Grace will naturally enquire, how it is the finances of the Colony have been allowed to reach the condition I describe? There are many causes and I am not aware that I have to blame myself for one of them.
7. When the Gold in Fraser's River was first discovered there was a great rush to the Colony from California and Australia. Between Hope and Yale where not more than half a dozen Chinamen are now the sole workers, between 12,000 and 13,000 men were working profitably. Sir James Douglas earnestly begged Lord Lytton to make arrangements for the Government of a Colony which would soon contain a population of 100,000 men. A party of Royal Engineers was sent out and maintained at an enormous expense to the Colony while nearly all the roads were made by contract labour hired at from ten to fifteen shillings a day. Loans were raised in England to pay for these works and so exuberant was Sir James Douglas's confidence in the financial future, that two competing road roads were made to one gold mine. The one costing one hundred and fifty one thousand pounds (£151,000). The other one hundred and one thousand pounds (£101,000). The consequence was that on my assumption of the Government I found a heavy London debt in existence. A Loan Ordinance to raise a further £100,000 just passed and a floating local debt of £53,000, in addition to that incurred in England, composed chiefly of Road Bonds and an overdrawn account at the Bank of British Columbia. That Bank shared in the general confidence, extended its operations all over the Country and was always ready to come to the assistance of the Government. Shortly afterwards came an Indian insurrection which cost the Colony £17,000 or £18,000 in its suppression. Then the Imperial Treasury made us pay £10,700 for the, to us, useless huts the Engineers had erected on the Banks of the Fraser. In 1866 a considerable expense was incurred in opening a Road to the Big Bend of the Columbia, where it was alleged rich mines had been discovered, and large sums were spent in 1865 in opening the communications in Cariboo. Yet had not Union, as I shall presently show, taken place the Mainland would this year be able to pay its way. Vancouver Island went recklessly to work and £35,000 were spent on a dredging machine which I believe has never raised five tons of sand from the bottom of Victoria Harbour and things went faster still when there seemed a probability of the annexation
3/4/2018 The Colonial Despatches: 1217, CO 60/29, p. 574; received 3 February 1868
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of the Island to British Columbia and the shifting of the payment of the Debts that might be incurred on other shoulders. £10,000 were voted for the erection of a Government House which had always been refused in the more prosperous times of the Colony, and Steamers were induced to visit Victoria at a large promise of payment which the Victoria politicians well knew that if ever fulfilled at all—must be so at the expense of the Mainland.
8. I returned to the Colony at the end of 1866 and found the last fraction of the £100,000 Loan of 1864 spent, heavy Vancouver Island debts to pay and hardly a prospect of meeting our liabilities at the end of this year. When it became known by telegraph in Victoria that Union was about to take place, every effort was made to fill the stores with dutiable articles while the Port was still free, which it was anticipated would have to be admitted free on the Mainland on Union being consummated. I am informed by the Collector of Customs that when Union was proclaimed there was over a million dollars worth of spirits, wines and Tobacco in the stores of Victoria. Thus at the time when compensation had to be awarded to many public Servants who lost office and other extraordinary expenses took place, our principal source of revenue the custom duties broke down. The Real Estate Tax of Vancouver Island which was never paid regularly would simply, if we endeavored to maintain it have accelerated the tide of emigration which was flowing from Victoria.
10. I certainly cannot charge myself with extravagance. I refused a vote of £10,000 for the erection of Public buildings at New Westminster. I have never appointed a higher Officer than a Constable during my term of office and many are the families I have reduced to destitution by successive reductions in the Public expenditure. My own salary is nine months in arrear.
10. But it should be stated how I propose to repay a Loan if contracted. I reply that I should at once pay off the debt to the Bank on which we are paying 12 per cent to be increased to 18 per cent. I should purchase all our 12 per cent debentures which are offered in vain at San Francisco now at 65. The saving, alone in interest, would pay nearly the whole of the Civil List. I should continue to reduce the Public Establishments as opportunity might allow. And as the supply of goods which have not paid duty in Victoria is not inexhaustable we must look forward to a considerable increase in revenue within a few months. Then the 4,000 or 5,000 people of Victoria instead of depriving the Mainland of its revenue must add to it the duties of their own consumption.
11. Should no assistance be afforded us to tide over the present emergency, I fear I shall have to reduce the Civil Establishments so low as to leave me, under present instructions, without an Executive Council. The Office of Treasurer has already been abolished, others must follow.
I have etc.
Minutes by CO staff
Sir F. Rogers I have shewn this to Mr Birch who says that the information & statements of the Financial condition differs little from what he has given in his Minute now before the Duke of Buckingham. His Grace may probably want to have this printed at once & be added to your own & Mr Birch's minutes. The liabilities for Current Expenditure on the 31 Decr are put at $223,048.
See above 1201 with return of 1st 3 Quarters Revenue for 1867. Also 1210 Blue Book Reports.
CC 4/2
Grounds of claim for help .off 1. Generally [ad miscrieordcam?]. .off 2. The enormous value of help— reducing interest on some 40,000£ from 12 & 18% to 4%. .off 3. Expenditures on engineers (10,700) imposed by home Govt. .off 4. Indian insurrection—a matter in wh Home Govt has generally helped. .off 5. Loss of customs duties income—on passing of Union by Imperial Govt. .off end
I am sorry to have kept this several days. Print as proposed.
FR
Mr Cox The Duke of Buckingham wants a dph written to B.C. telling the Governor that the question of granting them Postal assistance is under consideration but that they can have no help from the Treasury in their finances.
Would you get the papers together & if the matter looks straightforward draft a dph. If not, having spoken to H.G. I will do it.
FR 4/7
3/4/2018 The Colonial Despatches: 1217, CO 60/29, p. 574; received 3 February 1868
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Documents enclosed with the main document (not transcribed)
Seymour to Secretary of State, 28 November 1867, telegram urgently requesting financial assistance.
Statement of amount required to meet expenditures to 31 December 1867, showing a total of $223,048, signed by Robert Ker, Auditor General, 20 November 1867.
Other documents included in the file
Draft reply, Buckingham to Seymour, No. 48, 13 July 1868.
The Duke of Buckingham directed me to draft a dph to this effect for His consn.
FR 9/7
Other documents included in the file
*
Rogers to G.A. Hamilton, Treasury, 31 July 1868, forwarding copy of the despatch for information.
Sir F. Rogers I think as well the Ty shd have this.
CC
Despatch to London:
Seymour to Buckingham, 13 December 1867, National Archives of the UK, 1217, CO 60/29. The Colonial Despatches of Vancouver Island and British Columbia 1846 1871. Ed. James Hendrickson and the Colonial Despatches project. Victoria: University of Victoria. http://bcgenesis.uvic.ca/getDoc.htm?id=B67162.scx (http://bcgenesis.uvic.ca/getDoc.htm?id=B67162.scx) . Accessed 4 March 2018.
Last modified: 14:49:48, 28/2/2018