No. 34, Legislative

I have the honor of transmitting, herewith, for Her Majesty's
approval, six copies of an Act authorising the Governor of Vancouver Island and its Dependencies to borrow money for temporary purposes.

2. The object of this Act is to enable the Governor to meet the
demands upon the Treasury pending the collection of the Public
Revenue by means of temporary loans, not exceeding altogether the sum
of Four thousand pounds sterling (£4000), to be raised by Debentures,
payable within sixty days, at a rate of interest not to exceed one
and a half per cent, per month ([1] 1/2 per cent per month), that is
eighteen per cent per annum (18 per cent per annum).

3. Your Grace will no doubt be surprised at the sanction of a public
loan at the high rate of interest above quoted, and may possibly be
disposed to think that, in this instance, the Legislature have not
been sufficiently influenced by considerations of prudence and economy.

4. Such is not however the case; the Legislature deeming that
temporary loans are indispensable in the present financial condition
of the Colony for carrying on the service of Government with order
and regularity, and knowing that it might be found impossible to
raise money at a lower rate of interest than is usually taken in
private transactions, have simply authorised the measure in such a
form as to make certain of the end proposed, and every effort will be
made by publicly inviting tenders to procure the money at a lower
interest than the maximum rate prescribed by the Act.

5. The draft of this act was prepared by the Attorney General, whose
report will be forwarded when it comes to hand.