No. 115

I have to acknowledge the receipt of your despatch No. 34 of the
10th of June transmitting an Act passed by the Legislature of Vancouver Island in the month of May last and intituled
 An Act to authorise the Governor of Vancouver Island to borrow
money for temporary purposes.

As it may have been necessary to borrow this money and as the Act
has been passed by a Representative Legislature, I will not recommend
Her Majesty to dis-allow it; but it is evident that a Government cannot
go on borrowing at that rate of interest without the most ruinous
consequences, and that it is the duty of the Executive which cannot be
neglected without the gravest culpability to take care that there is no
necessity for such a mode of proceeding.

It is evident, that nothing can justify any person in borrowing at
such interest but the opportunity of making corresponding profit, and
that as Government makes no profit on its money, nothing but an
unforeseen emergency can justify the Government in so borrowing.