No. 3

I have the honor to acknowledge the receipt of your Despatch, No.
31, of the 27th November respecting the anomalous position in which you
found the office of Treasurer in British Columbia.

As I have had practical proof in the past year that the Department
has been efficiently managed I do not object to Mr. Graham being allowed
to continue to perform the duties of Treasurer, but I am of opinion that
on general principles he ought certainly to be required to give
security for the safe custody of monies entrusted to him.

As this would entail additional expense upon Mr. Graham I have to
authorise you to raise his Salary to £500 a year or to whatever sum
short of that amount you may consider on enquiry to be sufficient.