Sargeaunt to Sandford (Assistant Under-Secretary)

With reference to your letter of the 24th instant, and to a
despatch from the Officer Administering the Government of
British Columbia No 13 of the 21st ultimo, I have the honor to
state, for Earl Granville's information that the Crown Agents
have received in due course the remittances mentioned in the
3rd paragraph of that despatch to the extent of £13150, not £13160.

2. If it had been the custom of the local Government to remit a
sum of £2000 on the 1st of each month, with an extra sum of £1000
in the month of June in each year, and to make due provision for
any other expenditure incurred at its request, the British
Columbia account at this Office would not have been the subject
of so much correspondence.

3. The sum required annually at this Office for interest and
sinking funds on the British Columbia and Vancouver Island loans
is £24,750, and as the year commenced with outstanding claims
amounting to £2125, the sum of £26875 would be sufficient to
meet liabilities in respect to loans during the current year.

4. From Mr Julyan's letter of the 8th and mine of the 21st
Decr last
*

it will be seen that the Colony as against that
liability commenced the year with £4110, which with the amounts
remitted during the six months ending with June last and the
sums promised would show a balance on the 31st December next of
about £3000 in favor of the Colony.

5. Promised remittances are not however very tangible assets,
and the local authorities appear to lose sight altogether of the
fact that money paid away on General account is not still
available; the enclosed statement shows that the payments of
that nature during the current year amount already to £1267.19.8.

6. If then no further payments on General account are required
during this year, and the promised remittances are made, the
Crown Agents' account will on the 1st January next, commence
with a balance of about £2000, but the liabilities for interest
and sinking funds accruing in January next will amount to £8250.

**

7. Under these circumstances I need scarcely add that the
arrangements proposed by the Officer Administering the
Government will not furnish sufficient funds to meet the regular
and incidental liabilities of the Colony.

8. By the proposed arrangement the amount due at this Office in
January next would be remitted from British Columbia in
instalments in that and the three following months, so that the
Colony would not provide the funds due here in January till the
month of May when the April remittance might be expected to
reach this Office.

9. That the financial position of the Government of British
Columbia at this Office is very imperfectly understood by the
local Authorities is only too clear from the despatch I am
now reporting on by Lord Granville's directions, but that it is
so cannot be attributed to the want of explanations furnished
from this Office with peculiar frequency.

10. If the arrangements proposed in my letter of the 22nd
instant meet with Lord Granville's approval,

***

the amounts due to Sinking Funds up to 15th
January last, except £800 due to the Vancouver Island Sinking
Fund, will have been paid and all interest up to date, so that
in addition to the money already remitted and acknowledged the
following amounts ought to be sent in time to be available on
the dates mentioned:

£ 800
due to Trustees of Sinking Fund on 1st Jany last.

1125
 "  "     "     "     "      "   "   1  April   ".

4050
 "  "     "     "     "      "   " 1st & 15th July instant.

4125
interest and sinking fund due 1st Oct next.

8250
    "     "     "      "  due in Jany next.

£18350

11. In place of the promised remittances during the last six
months of this year, amounting to £12,800, the Crown Agents
ought to be furnished with funds available before January next
amounting to £18350.

12. The arrears due to the Sinking Funds at present amount to
£5975; if this debt was cleared off future remittances ought to
be made annually from the Colony to be available at this Office
on the following dates:

On 1st October
£ 4125

   1st & 15 Jany
8250

   1 April
4125

   1 & 15 July
8250

£24750