Hamilton to Rogers (Permanent Under-Secretary)

The Lords Commissioners of Her Majestys Treasury have had before
them Mr Elliots letter of 5th Instant, enclosing correspondence
 with the Governor of Vancouvers Island respecting the disposal in
that Island of the Revenue arising from Fines Fees and Forfeitures
and Their Lordships desire me to request you to state to the Earl
of Carnarvon that They are not in possession of any information in
 regard to the disposal of the Crown Revenue as distinct from the
general Revenue of that Island, or of the charges assigned to each
respectively.

The principle that has been acted upon, and on which their
Lordship's opinion is requested, appears at first sight to be
equitable namely that when the cost of a particular Department is
defrayed out of Crown Revenues, the fees &c received in that
Department should be credited to those Revenues; but that when the
general Revenue pays all the expenses of a Department the fees
received in that Department should be placed to the credit of the
General Revenue.

But if fines, fees and forfeitures are (under that denomination)
considered as part of the Crown Revenue (which appears from Mr
Ker's letter to be the case) there would in Their Lordship's
opinion be an anomaly in crediting them to the general Revenue,
because they are received through a department the cost of which is
borne on the General Revenue, while the other Receipts of Crown
Revenue not coming through a similar course are credited to the
account of Crown Revenue.

Under this arrangement the receipts of Crown Revenue would be
credited, part to the General Revenue, and part to the Crown
Revenue, which would create a difficulty in making up distinct
accounts of these funds respectively.

If fines, fees and forfeitures are to be credited to the general
Revenue under the circumstances above stated the preferable
arrangement would be to consider them as part of the general
Revenue provided that such a course is not inconsistent with the
general financial arrangement of Vancouvers Island.

But My Lords must decline to express any opinion until They are
furnished with full information as to the distinction between the
Crown and General Revenues.