No. 68

H.M. Government have had under their consideration
the application contained
in your despatch No. 84 of the 28th of August last for permission to
raise a loan of £50,000 in this Country to be applied to the
construction of Roads in B. Columbia, and I enclose, for your
information, the copy of a correspondence which has passed on the
subject between this Department and the Board of Treasury.

You will perceive from this correspondence that while the
importance of opening up as promptly as possible the internal
communications of the Country is fully appreciated, and while every wish is felt on the part of H.M. Government to assist you in accomplishing that
object, the absence of precise information as to the financial position
of British Columbia would render fruitless any attempt to raise a loan
in this country upon the credit of the Colony. In another despatch I
have called your attention to the omission to supply this information,
and to the prejudice which in the present instance the neglect has
inflicted on the interests of the Colony. It only remains to state that
upon receiving from you the accounts required by the Lords Crs. of the
Treasury I shall be prepared to submit your
proposal again to their Lordships' consideration.

With respect to the loans which have been raised by you in the
Colony to provide the means of completing roads which were in course of
construction I have received and will communicate to the L. Crs. of
the Treasury your despatch No. 104 of the 12th Dec. explaining the
circumstances under which you have had recourse to that step without the
previous sanction of H.M's Government.