No. 25

With reference to My despatch No. 24 of this date forwarding
the several applications of Mr Needham and Mr Begbie for the
Office of Chief Justice of this Colony, I beg now to state that
concurring in the view entertained by the latter officer I
considered the whole Government Staff of Vancouver Island abolished
by the proclamation incorporating that Island with British Columbia.

2. It seemed somewhat hard, however, urgently as the
Legislature had prayed for the extinction of the separate
existence of the island as a Colony that all the Public Servants
should at once be thrown out of Employment. Some were more
competent to fill the particular situations they held than those
of corresponding designations on the Mainland.

3. Under these circumstances I have considered Your Lordship's
despatch of the 14th September 1866, (addressed to me in London)
which authorizes me to effect, subject to Your Lordship's sanction,
such reductions in the Civil Establishments of British Columbia
as our financial difficulties may require as a sufficient authority
for me to lessen somewhat the severity of the effect of Union upon
the Government Officers of Vancouver Island. I am selecting the
most competent from among the two Establishments and will submit
their names for Your Lordship's consideration. Many Gentlemen, I
fear must lose their offices.

4. I enclose copy of a circular which I caused to be issued to
the Public Officers of Vancouver Island.

5. I am proceeding gradually, but firmly, in the difficult
task of reducing the Public expenditure and it is probable that
every officer of the Government, myself included, will have to
make heavy sacrifices in order to relieve the financial embarrassments
of our position. It was indeed time that the Colonies were united.
On the Mainland the Customs receipts alone have fallen upwards of
£20,000 below the estimate, and the Island was in such a
position as to be unable to meet its liabilities without a change
in the system of taxation or a decided revival of prosperity. I
shall submit to your Lordship a Return showing the financial
position of each section of the Colony on the 19th of November
when the union was effected.