No. 16

I have the honor to transmit an Authenticated and two
plain copies of an Ordinance of the late Session of the
Legislative Council of this Colony, entitled:
No 16. An Ordinance to amend Customs Duties.

I add the Report of the Attorney General.

2. The three first clauses of this Act are not of a
nature to raise any discussion. Public opinion in this and
the Neighbouring Colony is not unanimously in favor of the fourth.

3. Victoria, in Vancouver Island, is the largest commercial
town in the two Colonies on the North West Coast of America. It
is likewise a Free Port. The greater part of the traffic with
the Indians along the Coast of British Columbia has been conducted
from thence. Under these circumstances Sir James Douglas, as
Governor of the two Colonies, on their Legislative separation,
issued a Proclamation, 2nd June 1859, to authorize the
clearance of vessels in Vancouver Island for any Port on the
Main land North of the Fraser River, on payment of the Customs
Duties of this Colony. This arrangement would probably have
continued in force, notwithstanding the objections to which it
is subject, had not the Colonial Secretary of Vancouver Island,
shortly after my arrival, declined to collect any more duties
for British Columbia. The question, thus thrust forward for
consideration, was brought before the Executive Council, and I
was pressed to allow some such measure as that now transmitted.

4. The new Law creates some dissatisfaction in Victoria, and
I have gone to the extent of promising, in reply to a petition,
to consider the whole question further before I meet the Legislative
Council again. I have given no pledge that I will allow any
alteration of the present Law, but I have sent down a Customs
Officer to clear, in Victoria, such vessels as may be ready to
sail for this Coast. The favor will not be repeated, and in
future, the Law, as it stands, shall be strictly carried out.
Vessels going to engage in the very profitable traffic with the
Northern Indians will have to clear at New Westminster.

5. The advocates of the Ordinance of last Session urge,
1stly The inconvenience of employing a Public Officer of
this Colony at a Port where our Legislature has no jurisdiction
and where the Local Law furnishes him with no authority to
exercise the duties imposed upon him. 2ndly, It is said
that British Columbia loses much of its Revenue from the
System of smuggling, carried on from Victoria. A vessel, it
is alleged, clears from that Port, for the fur trade, with
a certain amount of cargo on board, and then fills up, in
the smooth waters of the Gulf of Georgia, with well paying
articles, such as whiskey and other spirits, which it is our
policy to keep from the Indians.

6. These reasons in favor of the new Law appear to me
forcible, and I have others to add from my own experience. I
find it extremely inconvenient to have the centre of intelligence
respecting the proceedings of our Coast Indians at a Port
over which I have no control. For instance, the massacre of
Mr Waddington's road party on the Bute Inlet Trail was known
in Victoria nearly three days before it was communicated to
me. Further, I consider now that our relations with the Northern
Indians are somewhat strained, that the trade with them should
be to a certain extent under the supervision of the Government
of this Colony. It would probably be a great pecuniary
benefit to Victoria, if we were to be engaged in hostilities
with the Native tribes. To all of us, with the exception of a
few general dealers in New Westminster, it would be an unmixed
calamity. On the Mother Country such a war would throw enormous
charges, and I need scarcely say, that the injuries it would
inflict on the Native races are incalculable. Victoria, alone
would gain, and Victoria, if I may judge from the Public Press
and the speeches at Public Meetings, would not be indisposed
to precipitate us into war.

7. I know the objections to which the present Act is liable,
and I shall give them further consideration. But to preserve
the peace of the Colony and to prevent the further demoralization
of the Coast Indians by totally irresponsible persons, I beg that
the present Ordinance may not be disallowed.