I have received two letters from Mr Merivale enclosing
Despatches from the Governor of Vancouver's Island, dated the 28th
April and 12th May 1851, and stating your Lordship's wish that I
would afford you an explanation of such parts thereof as relate to an
intended expenditure on public buildings, and to the payment of Salaries
from the proceeds of taxes on Imports.
At the time the communication alluded to by Mr Blanshard was made to that gentleman it was thought that the Fur Trade branch of the Company would require a considerable quantity of land in addition to
that which they possessed before the conclusion of the Boundary Treaty
in 1846. The Puget Sound Agricultural Company had also intimated their
intention to become purchasers of a tract of land near the Fur Trade
Reserve. The quantity in both cases was uncertain, no accurate survey
having been made, but in order that the Governor might not be in want of
Funds for such public works as might be considered most necessary, Mr
Douglas was directed to advance from time to time (as it might be
required) the sum of £4000. When however it was found that the land
occupied by the Fur Trade at Victoria pre--viouslypreviously to the year 1846 was considered by Mr Douglas to be sufficient for their purposes, the
amount to be advanced to the Governor was reduced to £2000, as your
Lordship will perceive by the enclosed extracts from a Dispatch to Mr
Douglas dated July 16th 1851, in which also a mistake which had been
made respecting the house for the Revd Mr Staines was rectified.
As Mr Blanshard has not transmitted to Your Lordship a copy of the letter in which the Governor and Committee of the Hudson's Bay
Company stated to him their views with regard to the expenditure on public buildings and other Colonial objects, I beg leave to hand you a copy of that communication, from which you will see how far he is borne out in the observations contained in his Dispatch, and what were the Company's real objects in directing £4000 to be expended in public works. It was in fact left almost entirely to the Governor and his Council to select both the sites and the works to be erected on them.
On the subject of Captn Grant's efficiency as a Surveyor I can only say that he was recommended to me as peculiarly qualified for the work he had to perform. But when it was found that he neglected his duties another Surveyor of proved ability was sent out, and is at present I have reason to believe employed in Surveying the Victoria District.
An Assistant Surveyor has also been engaged, and is now on his way to the Colony.
With regard to the exorbitant price stated by Mr Blanshard to be demanded by the Company for land, I am not aware, nor do I believe that a farthing more than the original price fixed upon, namely one pound per acre, has ever been demanded by the Company's Agent for any land either without or within the Reserve.
With respect to the payment of the Salaries of the Civil Officers
of the Colony out of the proceeds of taxation, I beg to say that I
always understood that your Lordship meant the Colony to be established
on a self supporting principle, and I know no better mode of procuring
the means of defraying such expences than by levying a moderate
duty — Say 5 per Cent — on Imports. ⎯ Such a duty, I may observe, would, at
present at least, be paid in a great measure by the Hudson's Bay
Company; and if calculated on the value of last year's importation would
amount to £1400.