Secret

I have the honor to forward a Return shewing what our financial
position will probably be at the end of the year. I deeply regret
this pecuniary difficulty at a time when the Americans are making
such energetic efforts to improve their recent purchase to the
North of us. I fear that the annexation feeling prevalent in
Victoria will be stimulated by the contrast of the total self
reliance imposed upon us and the absence of all assistance from Home.

Troops are to be poured into Alaska.
We have had to pay
locally £17,000 for the suppression of an Indian Insurrection, and
to the Imperial Government, £10,700 for the Engineers huts at New
Westminster which are utterly valueless to us. Can no assistance of
any kind be furnished to us? I almost dread the growth of feeling
in this Colony adverse to the connexion with the Mother Country which
may lead to some complications.