No. 57

I have the honor to forward an Authenticated and two
plain Copies of an Ordinance of the recent Session of the
Legislature of this Colony, entitled;
No. 13. An Ordinance "for imposing a Duty on Gold."
I add the Report of the Attorney General.

2. A large revenue is undoubtedly required in a Colony
like this where gigantic public works have to be made to
prevent the Gold Mines, its only developed source of wealth,
at present, being abandoned by the migratory population who
on this coast withdraw from labour in the winter and consider
in the spring the relative attractions of the several Gold
fields within their reach. Heavy taxation is imposed upon
the few persons who have made of this Colony their home,
and nearly the whole of the proceeds have been expended in
facilitating access to the mines. The miners have hitherto
paid no direct taxes except on the licence voluntarily taken
out for the protection of claims of value. There appeared no
more legitimate mode of increasing the Revenue than by the
passing of the present measure. The burden will fall heaviest
upon those best able to pay, and will not be felt by those
whose labours are unsuccessful.

3. A Gold Export tax has been more than once recommended
by the Secretary of State. I beg to refer to Sir Edward Lytton's
despatch No. 16 of 7th February 1859, and to the Duke of
Newcastle's, No. 22 of 19th September 1859.

4. As to the details of the measure, I would observe
that the Miners of Cariboo think two shillings (2s/-) an ounce too
high. But I have entered into an engagement with the Bank
of British Columbia, (which has established an Assay Office
in Cariboo) whereby they will be allowed to have their Gold re-assayed

*

in the Government Office in New Westminster on a
payment of a penny an ounce, instead of two pence, on
condition that they only deduct duty at the lower rate of one
shilling and six pence (1s/6d) an ounce on Gold purchased by
them on William's Creek. This agreement I have caused to
be made public in Cariboo, thus the Miner will be protected
against undue charge from the Bank. Had this agreement not
been entered into the Bank would have been entitled to
demand two shillings (2s/-) an ounce from the Miner, and by having
the Gold reassayed in New Westminster at the ordinary rate
of two pence an ounce, they would have been able by Law to
make a profit of five pence an ounce upon such miners as had
to sell their Gold to the Bank.

5. I proposed that the following rates of duty should
be levied on Gold:
Two shillings on raw Gold (2s/-).
One shilling and nine pence (1s/9d)
on Gold assayed by private persons with the consent of the Government.
One shilling and six pence (1s/6d), on Gold
passed through the Government Assay Department.
end
The Council was strong against the second proposal and I withdrew it.

6. I enclose copies of two proclamations I have issued.

**

The first giving one half of Gold seized for attempt at
smuggling to the informer. The second declaring the places
through which Gold can be legally exported. I have offered
every facility for the purpose. Miners leaving the Colony
by Bentinck Arm can pay duty on their Gold on William's Creek.