No. 35

I have the honor to forward an Authenticated and two plain
Copies of an Ordinance of the present Session of the Legislature,
entitled;

 No. 12. An Ordinance to repeal the Ordinance for imposing
a Duty on Gold.

I add the Report of the Attorney General.

2. It was with the utmost reluctance I found it necessary
to propose the repeal of the Gold Export Tax. Had this Tax been
introduced on the first discovery of Gold in British Columbia, I
am of opinion it might have worked with success, but, coming into
operation at a time when it was the Policy of the Press on
Vancouver Island to create discontent at every action of this
Government, no occasion was lost to excite the Miners to oppose
the payment of the Duty, while the statements appearing
in the Public prints were eagerly availed of by the Press of
California and the neighbouring States to turn the tide of
emigration to the mines of Oregon and Nevada, unfortunately
with too much success.

3. The discovery of new and extensive Gold Fields in this
Colony will doubtless attract population against any misrepresentations,
but the position of the new Mines was an important argument against
the continuance of the Gold Export Tax. It only requires for me
to refer you to an extract from the Gold Commissioner's Report,
transmitted in my despatch No. 38, of this date, to explain the
unsatisfactory working of the Tax in the Kootenay District, where
 a system of smuggling sprung up, difficult if not impossible to
suppress. In the new district of the Upper Columbia the incentive
 to smuggling will be even greater than at Kootenay in consequence
of the far easier access to our frontier line, and I feel convinced,
had the tax been continued, its collection would have been
impracticable and dangerous without a Staff of Officers out
of all proportion to the Revenue.

4. In theory no taxation can be more just. The practical
working has however proved the Tax unfit for a Colony so peculiarly
situated as British Columbia, and I preferred rather to take the
initiative in the repeal of the Ordinance than allow the matter to
be brought before me by Resolution of the Legislature.