Berens to Newcastle

I have the honour to acknowledge the receipt of Mr Fortescue's
letter of the 24th instant on the subject of the accounts of the
Hudson's Bay Company in connection with the Government of Vancouver's Island transmitted to Your Grace on the 22nd of March last.

I should not consider it necessary on the present occasion to trouble
Your Grace with any observation on Mr Fortescue's letter, beyond
merely announcing the perfect readiness of myself and Colleagues, to
accede to your Grace's suggestion, that an Accountant on the part of
the Government should be allowed to inspect those portions of the
Company's Books and Vouchers as have reference to the Company's
administration of the Government of Vancouver's Island, were it not
that Mr Fortescue mentions that Your Grace has felt much surprise at
the large amount of the excess now claimed by the Company.

Upon this point I have merely to state that in all my communications
with your Grace on the subject of these accounts I have endeavoured
from time to time to make your Grace aware that the accounts did not
reach this Country in a perfect and final state and that
supplementary demands would probably be made. This was to be
expected from the position of the Company in the Island, where, at
one and the same time, it carried on a large Commercial business and
conducted the Government of the Settlement. From the very nature of
things, where all payments were in the first instance made by the
Company the accounts were not kept very distinct and it required time
as well as research to unravel them. Indeed the mere fact that the
functions of many of the Gentlemen, holding Office in the Island,
were of a mixed character, partly employed in
the service of the Company as Governors of the Island, and partly as
Merchants—shows the difficulty of keeping the accounts separate, and
in such circumstances it is not to be wondered at that there was much
doubt as to many of the charges, and that some items of expenditure
were occasionally charged against the Company, which on investigation
it was found should be charged against the Government.

With these observations and refraining from commenting upon Your
Grace's announcement of objection to the claim of Interest inasmuch
as I am of opinion that these points would be better deferred, as
Your Grace appears to suggest, until after the verification of the
accounts—I have only to add that on the part of this Company I
shall be happy to receive any Accountant Your Grace may appoint for
the examination of the accounts having reference to the Company's
administration of the Island at any time Your Grace may fix upon and
will give instructions that every possible facility shall be afforded
to him in his investigation.