Confidential

I would venture to call Your Grace's particular attention to
my despatch No. 127 of even date, shewing the exertions that are
being made to pay the heavy interest and Sinking fund on our
London Loans, and the position in which the payment of the Salaries
of the Public Officers stands.

2. For myself I have only to say that were the Salary
assigned to me paid regularly I should have but little, if any,
surplus at the expiration of my term of Service. As it is, any
small savings I made in Honduras have long since gone and I am
living on an overdrawn account at the Bank on which eighteen
per cent is charged. Yet I cannot reduce my expenditure. I have
two Government Houses to keep up. Two Capitals in which I must
entertain. There are now six ships in harbour and a very large
number of American officers, including lately two Generals, here.
Some from San Juan, others on their way to Sitka. Two on a special
mission to me to arrange matters respecting our Northern Boundary
and to concert on Indian policy. All these visitors, at least,
I am bound to invite to my house, as I know well how difficult I
might find my position here, if I once allowed the present
friendly terms which exist between our republican neighbours and
myself to cease.

3. Additionally, I have to contribute to every Church fund
and charity. To give pecuniary support to every public amusement.

4. I would venture respectfully to submit that a portion, at
least, of my Salary should during the present depression be paid
from Imperial Funds. British Columbia is now in a position which
would be called in the neighbouring Republic that of a "territory."
Its population is small and scattered, the majority I think consists
of aliens, and I need not conceal from Your Grace that the energetic
efforts now being made by the Americans to garrison the miserable
territory they have recently purchased from the Russians and
develop its meagre resources, causes, with some, a feeling of repining
at their connection with a far distant country which does, Your
Grace will forgive me for saying, but little for them. A small
matter such as relieving the Colony of payment of a portion of my
Salary, say £2,000 or £3,000 would I am sure be looked upon as a
mark of interest. It would relieve me of some embarrassment as I
cannot help thinking as I receive each payment, what bridge the
money would have built, what road it would have repaired.

5. Yet I cannot see how my pay can be reduced with the
important political and social duties I have to perform, nor do I
think the United Colony on the Pacific ought to be allowed to
degenerate into a second rate Government.

6. I do not propose the above as a permanent arrangement. I
believe that the Colony will relieve itself in time from the present
painful embarrassment.