Hamilton to Rogers (Permanent Under-Secretary)

In reply to your letter of the 23d ult. I am directed by the Lords
Commissioners of Her Majesty's Treasury to acquaint you, for the
information of the Duke of Newcastle, that it appears to their
Lordships that the Clause of the Royal Instructions which has
suggested a doubt to the Governor of Vancouver's Island in regard to
the power of the Colonial Government to contract debt
without . . . the previous sanction of Her Majestys Government, has
reference to the issue of Paper Money and Letters of Credit as a
Legal Tender, as would appear from the preliminary words inserted in
the Clause having reference to the Acts of 4 Geo 3 Cap 34 and
13 Geo 3d Cap 57.

With regard to the Victoria Harbour Act 1860, to raise a Loan of
£10,000 for the improvement of the Harbour. Their Lordships see no
objection to its confirmation, provided that the Lords of the
Committee of Privy Council for Trade do not object to the charges to
be imposed upon the shipping.