No. 14

I have had the honor to receive Your Lordship's Despatch No 78
of the 4th August forwarding a Report from the Crown Agents
upon Mr Hankin's Despatch No 13 of the 21st June respecting
the steps which have been taken by the Colonial Government to
meet the liabilities of the Colony on account of the British
Columbia and Vancouver Island Loans.

2. I regret to say that there is too much justification for the
remark of the Crown Agents that the financial position of the
Colony at their Office has been very imperfectly understood by
the local authorities.

3. The Statement furnished by the Crown Agents as to the
position of their Account appears upon investigation to be
correct. The amount of £18,350, which they state to be required
by the 1st January next to meet current liabilities, has been
reduced by remittances since the date of their letter to the
extent of £9,800, so that £8,550 will be the amount necessary to
be forwarded by 1st December, and this amount I hope to be able
to make arrangements to furnish in proper time.