Murdoch to Merivale (Permanent Under-Secretary)

I have to acknowledge your letter of the 16th ultimo enclosing a
Despatch from the Governor of VanCouvers Island (20th July 1859—No
27) on the subject of the sale of Crown Land in that Colony.

2. Governor Douglas reports that the terms on which Crown Lands are
sold in VanCouvers Island (£1 an acre payable in 4 equal instalments
spread over 4 years) has latterly been a subject of much complaint as
retarding the settlement of the Colony—that public meetings had been
held and petitions presented to him on the subject—that one of these
petitions came from a body of immigrants who had arrived,
principally, from Upper Canada, and whose funds, by reason of
detentions on the road and delays since their arrival, had been nearly
exhausted, and themselves rendered incapable of paying for Land—that
not considering himself authorized to make a sweeping change in the
Land regulations without previous sanction, he had not felt at
liberty to do more in this case than postpone the payment of the
first instalment, requiring at the time of purchase a payment of only
1s/- an Acre with a like sum at the end of two months—and that
this arrangement had proved satisfactory to the petitioners. He
expresses a hope that as an exceptional arrangement it may, under the
peculiar circumstances, meet with approval.

3. The obvious objection to the arrangement is that the
circumstances were so little exceptional that they will be certain to
be appealed to as a precedent in future similar cases. When it is
known that Settlers who have exhausted their funds in reaching Van
Couvers Island obtain a relaxation of the Land regulations in their
favor, it may be safely predicted that large numbers of those who
arrive will describe themselves as in that situation.
If their description is true, the effect will be to hand over
considerable quantities of Land to persons who have no capital to
cultivate it with and to create a class of pauper debtors to the
Crown. If false a fraud will be committed on the Land Revenue, even
if all the instalments be eventually paid.

4. In Sir E. Bulwer Lytton's Despatches of 7th February & 7th May
last the objections to the system of payment by instalments in the
case of British Columbia were pointed out, and Governor Douglas was
authorized rather to reduce the upset price of Land than to accept
payment in that way. The principles on which Sir E. Bulwer Lytton
proceeded were of general application and it is, I think, to be
regretted that Governor Douglas did not refer to them in dealing with
this case, rather than adopt the opposite policy. Of course as far
as the present case is concerned what has been done is irrevocable,
but as regards the future it would, I think, be desirable strongly to
discourage any similar arrangements.

5. As the price of Land in the adjoining United States
Territory is generally not more than 1 1/2 dollars an acre, and in
British Columbia only 10s/- it may be assumed that a price of
20s/- in Van Couvers Island would place that Colony at an unfair
disadvantage in the eyes of Settlers. I am not aware of any
necessity for maintaining a price of 20s/- in Van Couvers Island,
and it appears to me that it would be better to assimilate the price
in that Colony and in British Columbia. But in so doing the
regulations for prompt payment of the purchase money which Governor Douglas has been instructed to introduce in British Columbia should
be enforced in VanCouvers Island also—and the general system of the
two Colonies should be carried out as nearly as possible in the same
manner. The judgment of Settlers would then be left unbiassed
to select the situation most suitable for their settlement.