No. 50

I have received your despatch of the 7th
February No 95 reporting
generally upon the state of British Columbia to that date.

The only remark I have to offer, beyond that of expressing my
satisfaction at the favorable condition of affairs in the Colony, is to
guard you against entertaining the impression that Her Majesty's
Government can possibly countenance your plan, in itself I do not doubt
judicious for local interests, of purchasing or building a Steam Vessel
for the service of the Colonial Government, on account of which you
propose to draw on the British Treasury should your own funds fail. I
would observe to you that in all my instructions, from the foundation of
the Colony to the present moment the principle on which I have
proceeded, and which the constantly developing mineral wealth of British
Columbia has so amply justified, has been that of insisting that the
Colony should defray the expense of its own requirements. It would
indeed be strange that this Country should be called upon to render
pecuniary assistance to supply the ever recurring wants of an infant
Settlement which has been actually forced into existence through the
ample supplies of Gold afforded by the Country it occupies. The
pressing circumstances of the case have undoubtedly compelled Her
Majesty's Government to advance funds for fitting out the party of Royal
Engineers which was so early despatched to the Colony; but these
advances must be repaid; and it should be amongst the earliest of your
financial efforts to do so. I can therefore only say that if you have
the means of establishing a Colonial Vessel I trust that she will render
you valuable service; but that I can hold out no prospect of assisting
you in her purchase or construction. I may indeed add that certainly
until the obligation above referred to to this Country is discharged the
Lords Commissoners of the Treasury would not feel themselves at liberty
to accept Bills drawn on them for even temporary advances.