No. 19

Before I received Your Lordship's Despatch No 84 of the 14th
August, the question in agitation respecting the Union of this
Colony with the Dominion of Canada had naturally engaged my
attention; but a very short acquaintance with the community made
it apparent that its condition, and its relations to Canada as
well as the United States, are very different from those of the
Atlantic Provinces, and I have deferred any communication to
Your Lordship until a little more time had been afforded me for
acquiring further information.

2. I have now printed Your Lordship's Despatch in the local
Gazette in accordance with your direction to give publicity to
it. But I should have thought myself equally carrying out your
instructions in their spirit, and perhaps better promoting the
object in view, by waiting until the Legislative Council meets
in December, and first as a matter of respect laying it before
that body, if it were not that I have reason to believe that the
substance of that Despatch has already been communicated to
unofficial persons here by others in Canada to whom it had
become officially known. There is some little irritation at the
manner in which, it is supposed, persons in official authority
in Canada endeavour to work in favor of the project through
private correspondence with individuals here who have no
official status and little social influence. And I have thought
it best under these circumstances to remove at once any doubt as
to Your Lordship's views—to show the position of the local
Government under your instruction—and to take the conduct of
the matter into my own hands from those of persons who are not
likely to carry it to a successful issue. I believe such an
issue to be possible; but the difficulties in the way of its
accomplishment are practically far greater than, and of quite a
different character from any which have to be overcome in the
Eastern Provinces.

3. I am aware that it is believed, in Canada, and I think it
has been represented to Your Lordship, that there is a very
general desire for Union, and that opposition is almost entirely
confined to Official Members of the Council. The servants of
Her Majesty's Government would not unnaturally look with anxiety
to know how their positions would be affected by any such
change; but they have not in fact declared any opposition, and
if their opinions were entirely disregarded it is not by any
means clear that the majority of the community are prepared for
Union with the Dominion, except on terms which are not likely to
be possible, or with a view to political arrangments for which
this community is by no means ripe. With regard to the position
of the present Official servants of the Crown, I think that any
personal motive for opposition to the proposed Union may be
removed by provision for their retirement on suitable Pensions,
or at least that they should have the option of so retiring.
Precedent for such an arrangement is to be found in what was
done on the introduction of Responsible Government in the
Eastern Provinces. And it would only be equitable, as
undoubtedly much unwillingness will be experienced to changing
the present tenure of their Offices immediately from Her
Majesty's Government to one under a party Government in Canada.
But a stipulation on this point might reasonably be made part of
any terms of agreement with the Dominion; and this difficulty
could be so removed. But there will still remain some questions
not so easy to be solved.

4. The more prominent of the Agitators for Confederation are a
small knot of Canadians who hope that it may be possible to make
fuller representative institutions and Responsible Government
part of the new arrangements, and that they may so place
themselves in positions of influence and emolument. To obtain
support for their purposes they lead the Mercantile portion of
the Community to believe that a successful attempt may be made
to secure in terms with Canada that Victoria should be made a
Free Port. From this combination the movement derives its
greatest force. The remainder of their following consists of
persons who are favorable to Union partly from sentiment, partly
from restless desire for any change which they hope may improve
their own prospects, without much thought of how this is to be
effected, and without any consideration of the obstacles which
may be in the way of satisfactory Union. When the leaders find
that neither Responsible Government nor stipulation for a Free
Port can reasonably be made part of the Programme, I am strongly
of opinion that there will be much abatement of present enthusiasm.

5. But the advocates of Confederation do not include the whole
community, though they have put themselves prominently forward,
while their opponents have been comparatively silent. The total
white population in both sections of the United Colony does not
amount to ten thousand. Of these much more than half are
resident in Vancouver Island principally at Victoria. A very
large proportion both here and on the Mainland, are not British
subjects, and not unnaturally would lean rather towards
annexation to the United States, if there is to be a change,
though they live contentedly enough under what they admit to be
an equitable government, in which the laws are fairly
administered. Among those who are British subjects and have
emigrated from Great Britain the feeling in favor of
Confederation is not strong, though they are not so much
professional "politicians" as many of their Colonial neighbours
and do not take the same pains to publish their views. Withal,
it would not be right to omit to mention that for some cause or
other the members of the Community who have emigrated from
Canada, with some notable and admitted exceptions, have not
contrived to impress their fellow colonists with a prejudice in
their favor; and this fact has tended to produce a
disinclination with many to transfer the control of their
affairs to Canadian authority as they imagine would be the case
in the event of Union.

6. Some fear too exists on the part of the Agriculturists that
even a Canadian Tariff would be too low in its rates on
Agricultural produce to afford them the protection they believe
themselves to require. And they are still less in favor of any
desire for a Free Port.

7. I have said enough to show Your Lordship that there is great
diversity in the views entertained upon this important question.
But though the difficulties in respect of it are complicated I
do not regard them as insuperable. It will be necessary to
clear some incidental questions from the ground of discussion.
I have already touched upon that of provision for such of the
existing incumbents of Public Offices as Your Lordship shall
think should so be provided for. But another question which is
certain to assume prominence is that of the introduction of
"Responsible Government" in the local administration after
Union. I must at once state my opinion that it would be
entirely inapplicable to a Community so small and so constituted
as this—a sparse population scattered over a vast area of
country. There is scarcely material even for the imperfect
representative Legislative Chamber now existing; and any
effective "responsibility" would be out of the question, except
of Officials to the Lieutenant Governor and of him to his
Official superiors. A third point of importance is the
possibility of making Victoria a Free Port. Great stress is
laid upon this by many of the present advocates of Union. But I
must admit my belief that no benefit would thus be conferred
upon the Colony at large, and that any advantage would only be
derived by unscrupulous traders who would have facilities
afforded to them for illicit traffic with the neighbouring
American territories. Victoria has never had, has not now, and
is not likely to have for years to come, any Export trade to
other places which could render it a substantial good to the
Colony to establish a Free Port. It is admitted with almost
unblushing readiness that abolition of all duties and port
charges is desired for the facility which was formerly afforded
for smuggling into the United States. I need not insist to Your
Lordship upon the impropriety of such a policy, but it would be
quite as well understood by our neighbours as by ourselves, and
in the end would defeat its own object, while exciting still
further irritation and jealousy as regards the commerce of this
place, of which indeed we already feel the effects.

8. In my opinion therefore neither the sacrifice of present
Public Officers, the introduction of Responsible Government, nor
the establishment of a Free Port need or ought to form part of
the Scheme of Union; but if they do not I think it will be found
that there will be a great change in the views of those who now
clamor most loudly for it. On the other hand a great deal of
opposition would be removed on the part of many who do not wish
to injure the Public servants, who entirely object to
Responsible Government in the circumstances of this Colony, who
regard a Free Port as very injurious to the local producers in a
young and struggling community, and who fear Confederation lest
these evils should flow from it.

9. Apart from the conflict upon these questions and assuming
them to find satisfactory solution, there yet remain some of
practical difficulty as regards the financial aspect of the
matter. The liabilities of this Colony are very heavy, and the
population is very small, so that there cannot be any
contribution payable to her on the score of the difference of
amount of indebtedness per head as in the case of the Eastern
Provinces. The machinery of government is unavoidably expensive
from the great cost of living, which is at least twice as much
as in Canada, and the great area over which the action of
government must be maintained for a small number of residents.
The Tariff and Excise duties being given up to the Dominion
would not leave other existing sources of Revenue sufficient for
local requirements; and the grant in aid under the British North
America Act 1867 to the other Provinces, of 80 cents per head to
the population, would amount only to an insignificant sum in our case.

10. Besides these matters for consideration, it must be
remembered that many advantages of important kind and degree
will be derived by the Atlantic Provinces from Union with
Canada, which must from geographical position be wanting to this
Colony. In Newfoundland for instance almost all her supplies
both of raw material and manufactured goods, excepting products
not grown in a Northern Climate, may in future be drawn from
Canada duty free; and while Canadian trade is augmented the
taxation of the Newfoundland consumer will be lightened. In our
case the Rocky Mountains are a more formidable barrier than the
Gulf of St. Lawrence. Free commercial intercourse would be
easier with Australia than with Canada; and the administration
of Official departments could practically be conducted with
equally great facility in London as at Ottawa.

11. For these reasons the establishment of a line of
communication at least by a Waggon Road if not by a Railway as a
condition of Union will probably be brought forward in
discussion; and in a Colony which by its own unaided energy and
resources has constructed the astonishing Road from Yale through
the Canons

of the Fraser River to Lytton and thence by the
Thomson River to Cariboo, over which I have recently travelled
for five hundred miles, it does not seem by any means an
extravagant thing to expect that the Government of the Dominion
should undertake to complete a line of communication; of which
this little community has already accomplished a considerable
part of at least equal difficulty with any remaining to be
constructed, and produced a work of which they may well be
proud. Your Lordship will see that the details and terms of the
proposed Union are by no means easy to be arranged; but now that
the general views of Her Majesty's Government have been
communicated to me I shall give my anxious attention to devise
the best means of carrying them into effect.

12. The whole subject will be brought forward at your instance
during the next Session of the Legislature. I shall prepare
with the aid of my Council some plan of Union as a tentative
proposition which will at least evoke discussion; and after the
matter has been more fully and more fairly argued I shall be
better able to report to your Lordship the special bearing upon
our case of questions and difficulties of which I feel that as
yet I can only present to you a superficial view.

13. I will transmit to Sir John Young a Copy of this Despatch
as the best mode of acquainting him with my present impressions
respecting the question which has naturally so great an interest
for his government.