Childers to Rogers (Permanent Under-Secretary)

With reference to Mr Elliot's letter of the 23rd
ultimo, transmitting the Supply Ordinance of the Colony of
British Columbia for the year 1866, together with the Colonial
Estimates for this year, I am directed by the Lords
Commissioners of Her Majesty's Treasury to acquaint you, for
the information of the Secretary of State, that My Lords
will not object to these Estimates, which appear to have been
prepared with a view to more careful economy than those of
preceding years, and They assent to the confirmation of the
Ordinance, No 4 of 1866, providing for the expenditure of
the year. With reference, however, to the uncertainty as
regards the accuracy of any Estimate of Revenue, to which the
Acting Governor alludes in his despatch of the 3rd of
April, and to the large amount of debt now owing by the
Colony, I am desired to request that the Governor may be
instructed to limit as far as possible his Expenditure on New
Works and Buildings and Streets, until he is able to form a
sound opinion as to the proceeds of the Revenue for the year.

My Lords are glad to observe the large amount which is
included in the Estimated Expenditure for the repayment of
"Temporary Loans," amounting to $170,000, and They trust that
after the remarks upon this system in the letter of this
Board of the 19th of April last, the Government of British Columbia will understand the necessity of limiting the
expenditure of the Colony within the Receipts from Ordinary
Revenue. As the actual Expenditure of the year of 1865 is
stated by the Governor in his despatch of the 2nd of April,
1866 (No 31) not to have exceeded £185,000, it may be that
 the $80,000 included in the Estimate of Revenue for 1866 as
"portion of Loan of 1864 undrawn" is applicable for the service
 of 1866, but on this point My Lords must reserve Their opinion
till They are in possession of the Statement of the Actual
Receipts and Disbursements of the Colony within the year 1865,
together with the account of its Liabilities at the close of
that Period, which Their Lordships called for in Their letter
of the 19th of April last.

I am further desired to observe that My Lords trust that
under the prudent management of the Finances of the Colony
which is apparent in these Estimates, it will not be again
necessary to resort to the system into which the Government
of the Colony had fallen of being continually in debt to the
Bank of British Columbia. On the 1st of January, 1866,
this debt amounted to £33,675, and though arrears of Revenue
might be set against some portion of this sum, it practically
represented expenditure in advance if not in excess of means.

My Lords would wish that the attention of the Governor
should be directed to the number of the Clerical Staff
employed in the Establishments, which appears to them larger
than the Public Business of so small a community can really require.

The Colonial Estimates are herewith returned, but I am
to request that a copy of them may be forwarded for retention
in this Department.

I am desired to observe that under the head of "Administration
of Justice" the expenditure is estimated for 1866 at $7150 against
 an actual expenditure in 1864 stated to have been $100,563.
My Lords would request some explanation as to the large
difference between these sums; as also as regards the item
of "Transport" for which $13,750 are inserted in the Estimate,
but only $12,750 is appropriated under the Ordinance.