Separate

I have the honor to forward the accompanying Memorial to
Your Grace, at the request of Mr J.A.R. Homer and seven
other persons, professedly Delegates representing the towns
of Hope, Douglas, and New Westminster, at a series of political
meetings lately held at the latter place.

2. This movement, so far as I have been able to gather,
originated with a very few persons; and its chief object was
stated to be the attainment of Representative Institutions;
a topic necessarily popular, and which was used on this occasion
to excite the public mind and induce the inhabitants of New Westminster, Douglas, and Hope, the three towns nearest to the
Coast, to elect Delegates to serve in what was termed a Convention
ostensibly for the purpose of acting as a Council of Advice to
the Governor, of correcting abuses, and of obtaining Representative
Institutions.

3. When and how the elections were conducted at Hope and
Douglas, has not been alluded to in the quarterly reports received
from the Magistrates of those Towns; and must therefore, I presume,
have attracted little or no attention; but the proceedings of
the New Westminster election are described in the enclosed cuttings
from the "New Westminster Times"—the Editor of that paper was
one of the leaders of the movement, and a disappointed candidate
for the honors of election; consequently his strictures may be
embittered by defeat, and should be received with some allowance.

4. As the meeting was conducted with perfect order and good
humour, no official notice was taken of the proceedings, other
than would have been given to any public exhibition got up for
the amusement of the people. The Memorial to Your Grace, now
forwarded, is, I believe, the only result of the movement; the
Delegates having since dispersed and returned to their homes.

5. On the one single occasion when they sought a personal
interview with me, I declined receiving them as representatives
of the inhabitants of British Columbia; but I had no hesitation
in meeting them, with all courtesy, as a deputation of Her
Majesty's Subjects from Douglas, Hope, and New Westminster,
assembled for the purpose of petitioning the Crown.

6. They did not favour me with their opinion on public affairs,
but judging from the pointed reflections upon the whole system of
import and inland duties levied on goods in British Columbia, which
the memorial regards as oppressive to the people, the one favourite
financial idea evolved, is, that there should be a general
reduction of taxation. They do not pretend to proportion expenses
to income, but propose to carry on the public works requisite for
the development of the Colony, by means of public loans; their
object being to obtain present exemption from taxation by throwing
a part of the current expenditure upon the future inhabitants of
the Colony—a measure which is not without a show of justice, and
has therefore many zealous advocates, especially among the temporary
population of the Colony.

7. Having by these preliminary remarks given Your Grace some
idea of the origin, and object, so far as in known, of this
movement, I shall now proceed to a review of the Memorial.

8. The first prayer of the petitioners is for a resident
Governor in British Columbia, entirely unconnected with Vancouver Island. Your Grace will perhaps pardon me for not hazarding any
observation on a subject that so nearly concerns my own official
position. I may however, at least remark that I have spared no
exertion to promote the true interests of both Colonies; and
am not conscious of having neglected any opportunity of adding
to their prosperity. The Memorial then proceeds to the subject
of Representative Institutions, asking for a form of Government
similar to that existing in Australia, and the Eastern British
North American Provinces. This application should perhaps be
considered more with reference to the future well-being of the
Colony, than to the views and wishes of the existing population.
Without pretending to question the talent and experience of the
petitioners, or their capacity for legislation and self-government,
I am decidedly of opinion that there is not as yet a sufficient
basis of population or property in the Colony to constitute a
sound system of representative government. The British element
is small; and there is absolutely neither a manufacturing nor
farming class; there are no landed proprietors except holders of
building-lots in towns; no producers except miners; and the
general population is essentially migratory: the only fixed
population, apart from New Westminster, being the Traders,
settled in several inland towns from which the Miners obtain
their supplies. It would I conceive, be unwise to commit the
work of legislation to persons so situated, having nothing at
stake, and no real vested interest in the Colony. Such a course,
it is hardly unfair to say, could scarcely be expected to promote
either the happiness of the people, or the prosperity of the
Colony; and it would unquestionably be setting up a power that
might materially hinder and embarrass the Government in the
great work of developing the resources of the Country: a power
not representing large bodies of landed proprietors, nor of
responsible settlers having their homes, their property, their
sympathies and their dearest interests irrevocably identified
with the Country, but—from the fact before stated of there being
no fixed population except in the Towns—a power exclusively
representing the population of those Towns. Judging from the
ordinary motives which influence men, it may be assumed that
local interests would weigh more with a legislature so formed,
than the advancement of the great and permanent interests of the
Country.

9. I have reason to believe that the Memorial does not
express the sentiments of the great body of the people of British
Columbia: not that I would for a moment assume that Englishmen
are, under any circumstances, unmindful of their political
birth-right; but I believe that a majority of the reflective and
working classes would, for many reasons, infinitely prefer the
Government of the Queen, as now established, to the
rule of a party; and would think it prudent to postpone the
establishment
of Representative Institutions until the permanent population of
the Colony is greatly increased, and capable by moral influence
of maintaining the peace of the Country, and making Representative
Institutions, a blessing and a reality, and not a by-word and a
curse.

10. The total population of British origin, and from the
Colonies in North America, in the three towns supposed to be
represented by the Memorialists, is as follows:

New Westminster..........164 Male adults

Hope.....................108 Do

Douglas...................33 Do

In all...................305

which, supposing perfectB
unaminity in their views respecting Representative Institutions,
is a mere fraction of the population. Neither the people of Yale,
Lytton, Cayoosh, Rock Creek, Alexandria, nor Shimilkomeen appear
to have taken any interest in the proceeding, or to have joined
the movement party.

11. From the satisfactory working of the New Westminster
Town Council, established last summer with large powers for
Municipal purposes, I entertained the idea of enlarging the
sphere of their operations, and of constituting similar bodies
at Hope, Yale, Cayoosh, and all other towns in British Columbia,
with the view, should it meet the approval of Her Majesty's
Government, of ultimately developing the whole system into a
House of Assembly. Part of that scheme has already been commenced
at Yale and Hope. The Government may by that means call into
exercise the sagacity and local knowledge of practical men, and
acquire valuable information on all local matters; thus reaping
one of the advantages of a legislative assembly, without the
risks: and I still think the Colony may, for some time to come,
be efficiently represented in that manner.

12. The existing causes of dissatisfaction as alleged in the
Memorial may be classed under the following heads;

1st That the Governor, Colonial Secretary, and Attorney
General, do not reside permanently in British Columbia.

2nd That the taxes on goods are excessive as compared
with the population, and in part levied on Boatmen, who derive
no benefit from them: and that there is no land-tax.

3rd That the progress of Victoria is stimulated at the
expense of British Columbia, and that no encouragement is given to
Ship-building, or to the foreign trade of the Colony.

4th That money has been most injudiciously squandered on
public works; and contracts for roads given without any
public notice, which have been subsequently sub-let by the
Contractors at much lower rates.

5th The faulty administration of public lands: and that
lands have been declared public reserves, which have been afterwards
claimed by parties connected with the Colonial Government.

6th The want of a Registry Office for the record of
transfers and mortgages.

13. The first complaint—the Governor, Colonial Secretary, and
Attorney General, not residing permanently in British Columbia,
scarcely requires comment from me. Your Grace is aware that I
have a divided duty to perform, and that if, under the present
circumstances of the Colony, the Colonial Secretary, and Attorney
General resided permanently in British Columbia, their offices
would be little less than a sinecure;

*

the public service would
be retarded, and a real and just ground for complaint would exist.
Although the Treasury is now established at New Westminster, and
the Treasurer resides permanently there, I have no hesitation in
saying that it would be far more for the benefit of the public
service if that Department were still at Victoria.

14. The complaint of over-taxation is not peculiar to British Columbia, but whether it is well founded or not, may perhaps be
best inferred from the example of other countries. Judging by
that estimate, the people of British Columbia have certainly no
reason to complain of their public burthens—for the United States'
tariff, which is rigourously enforced in the neighbouring Ports of
Washington Territory, averages 25 per cent on all foreign goods,
spirits and other articles of luxury, on which a much higher rate
of duty is charged, excepted. The citizen of Washington Territory has also to pay the Assessed, Road, and School Taxes, levied by
the Territorial Legislature. In contrast with those taxes, the
import duty levied in British Columbia is only 10 per cent, with
a similar exception of spirits, and a few articles of luxury, which
pay a higher duty: while all other taxes levied in the Colony are
also proportionably as light, compared with those of Washington Territory. I might further state as a peculiar advantage, that
two-thirds of the taxes raised in British Columbia, have been
expended in making roads, and other useful public works, which
have produced a reduction of not less than 100 per cent on the
cost of transport, and nearly as great a saving in the cost of
all the necessaries of life; so that while the communications
are being rapidly improved, the people are, at the same time,
really reaping from those works, substantial benefits, more than
compensating the outlay.

15. With respect to the complaint about the Boatmen, they had
no claim whatever to be exempted from the operation of the law
imposing a duty indiscriminately on all goods passing upwards from
Yale, neither did the duty bear at all upon them, as they were
merely carriers, and not the owners of the goods; the real question
at issue was whether the inland duty should be charged on goods
carried from Yale by water as well as by land, and was nothing
more than a scheme concerted by the owners of the goods to benefit
themselves at the expense of the public revenue.

16. And here I would beg to correct an error in the Memorial
with respect to the population of British Columbia, which is therein
given at 7,000—exclusive of Indians—making an average annual rate
of taxation of £7.10/ per Head. The actual population, Chinamen
included, is about 10,000, besides a native Indian population
exceeding 20,000, making a total of 30,000, which reduces the
taxation to about £2 per Head, instead of the rate given in the
Memorial. It must be remembered that all the white population
are adults, and tax-paying; there being no proportionate number
of women or children, and it is a great mistake to suppose that
the Native Indians pay no taxes. They have, especially in the
Gold Districts, for the most part abandoned their former pursuits,
and no longer provide their own stores of food. All the money
they make by their labour, either on hire, or by gold-digging, is
expended in the country, so that the Indians have now become
extensive consumers of foreign articles and contribute very
largely to the Colonial Revenue, even more perhaps in proportion
to numbers, than the class of Miners who annually emigrate from
the Colony with their earnings.

17. I did not expect to find the Authors of the Memorial
advocating a land tax, seeing that so small a quantity of land
has been alienated by the Crown, that the tax would really produce
hardly an appreciable effect on the revenue, while it would
operate as a check on the sale of land, and become oppressive to
an interest which much requires the most careful fostering on
the part of Government.

18. Nothing can be more unfounded than the next allegation,
that the progress of Victoria has been stimulated at the expense of British Columbia &c—in fact it is difficult to see how the
prosperity of Victoria could injure British Columbia, their interests
being inseparable and identical. The Ports of British Columbia are
open to the ships and trade of all nations—equally with Victoria
and the Ports of Vancouver Island; and the one has no advantage
over the other, except such as Nature has conferred in placing
Victoria in the most accessible and convenient situation for trade.
Every attention has been paid to rendering Fraser's River safe
and accessible, the channels have been carefully surveyed, and
marked with conspicuous Buoys; and foreign vessels may go direct
to New Westminster, without calling at Victoria, or any
intermediate Port, and the Port Dues are the same whether vessels
clear originally from Victoria, or come directly from foreign parts.
It is impossible in fact, to imagine a more perfect equality of
Legislative protection than is given to these two Ports.

19. I have had applications, under various pretexts, from
almost every interest in the Colony, for remission of duties,
and I have steadily resisted all such applications, on the ground
that class legislation is vicious and in the main leads to
injustice and discontent. It is moreover very doubtful if the
proposed remission of duty on ship-building materials would
advance that interest, as long as the timber business of New Westminster is a monopoly in the hands of a few persons who keep
timber at an unreasonably high price.

20. With respect to the fourth and fifth Complaints, as I
was not cognizant of any circumstances affording grounds for
them, I addressed a letter to the Chief Commissioner of Lands and
Works, whose Department they more immediately affected, and I
forward herewith a Copy of that Officer's Report, from which it
will be seen that no just cause exists for the allegations made.

21. The want of a Registry Office, which also forms a subject
of complaint, arises solely from our not having succeeded in
maturing the details of a measure, which is, I find, replete with
difficulties of no ordinary kind; but Your Grace may rely that
an Act providing for the Registration of Real Estate will be
passed as soon as practicable.

22. Before concluding this Despatch, I will submit a few
observations on the financial system of Vancouver Island in
contrast with that of British Columbia; explanatory of their
distinctive features, and their applicability to the Colonies
respectively.

23. The Public Revenue of Vancouver Island is almost wholly
derived from taxes levied directly on Persons, Professions, Trades,
and Real Estate: on the other hand, it is by means of duties on
Imports, and on goods carried inland, that the Public Revenue of
British Columbia is chiefly raised. No other plan of finance has
been suggested, by which a Public Revenue could be raised, that
is so perfectly adapted to the circumstances of both Colonies, or
that could be substituted, or applied interchangeably with
advantage to the Sister Colony. The reasons may be thus stated—the
low-priced and bulky productions of Vancouver Island will
not bear the cost of exportation to any British Possession, and
are virtually excluded from the markets of the Mother Country by
the distance, and expense of the voyage. A precisely similar
result is produced through the almost prohibitory duties levied
in the neighbouring Ports of Oregon and California; the former,
moreover, abounding in all the natural productions common to
Vancouver Island, except coal; and neither being inferior in
point of soil, climate, or any physical advantage. Thus practically
debarred from commercial intercourse, and denied a market for its
produce, it became painfully evident that the Colony could not
prosper, nor ever be a desirable residence for white settlers,
until a remunerative outlet was found for the produce of their
labour. It was that state of things which originated the idea
of creating a home-market; and the advantageous position of
Victoria for commerce, suggested Free Trade as the means, which was from thenceforth adopted as a policy, with the object of
making the Port a centre of trade and population, and ultimately
the commercial entrepot of the North Pacific. That policy was
initiated several years previous to the discovery of Gold in
British Columbia, and has since been inflexibly maintained.
Victoria has now grown into commercial importance, and its value
and influence can hardly be overrated: financially it furnishes
four-fifths of the Public Revenue: it absorbs the whole surplus
produce of the Colony; and is a centre from whence settlements
are gradually branching out into the interior of the Island.
Thus Victoria has become the centre of population: the seat of
trade: a productive source of revenue; and a general market for
the country: the settlements are all compactly situated within
a radius of 20 Miles, except those which are accessible by sea,
there is therefore no pressing call for large expenditures in the
improvement of internal communications. Roads are opened when
required, with due regard, and in proportion to the means of the
Colony; its vital interests not being greatly affected by any
unavoidable delay.

24. The circumstances of British Columbia are materially
different from those just described. That Colony has large
internal resources which only require development to render it
powerful and wealthy. Its extensive Gold-fields furnish a highly
remunerative export, and are rapidly attracting trade and population.
Mining has become a valuable branch of industry, and essentially
the vital interest of the Colony: it has therefore been my
unceasing policy to encourage and develope that interest. The laws
are framed in the most liberal spirit, studiously relieving Miners
from every species of direct taxation, and vesting in the Mining
Boards a general power to amend and adapt their provisions to the
special circumstances of the Districts.

The Government has moreover charged itself with other more
onerous duties in furtherance of the same object, by opening roads
through the most difficult mountains into all parts of the Country,
to facilitate commerce and transport, and to enable the Miner to
pursue his arduous labours with success. Three different lines of
road have been successfully carried through the Coast Range of
Mountains, and Mining Districts 500 Miles distant from the sea,
have been rendered accessible by routes hitherto unknown. The
extension and improvement of works so pressingly required, and
indispensable to the progress and development of the country, still
claim the anxious care of Government. The greatest difficulty was
experienced in providing funds to meet the necessary large
expenditure on those works, and that object was accomplished by
imposing an Import Duty on goods, as the only feasible means of
providing a revenue adequate to the public exigencies; it was
justly supposed that any tax levied directly on the mining
population would lead to clamour and discontent, without being
productive of revenue; whereas the indirect tax is not felt
as a burden, and, I believe, makes no appreciable difference in
the prices which Miners have to pay for their supplies.

25. I have entered into the foregoing review of the
administrative systems adopted in British Columbia and Vancouver Island, in answer to the assertion of the Memorialists that
"every exertion is apparently made to stimulate the progress
of Vancouver's Island at the expense of British Columbia" and
to prove that my measures have been ever calculated to promote
to the fullest extent the substantial interests of both Colonies.

26. I trust Your Grace will pardon the length to which this
Despatch has reached; in forwarding the Memorial however,
established rule required that I should accompany it by a report,
and I could not well do so in fewer words.