No. 31

I think it my duty to report to Your Lordship the anomalous
position in which I found the office of Treasurer in this
Government on my arrival in the Colony.

2. It is the principal department of Revenue, Expenditure, and
Public Accounts, and yet has been allowed to remain for nearly
three years without any recognized head—left to the
administration of a clerk who has given no security for the safe
custody of the Public monies.

3. In Mr Seymour's Despatch No 58 of the 6th April, 1867,
he has mentioned his recommendation which was subsequently acted
upon, that Mr Franks, then Treasurer of the Continental portion
of the Colony, should be relieved from his duties, and his
further suggestion that Mr Watson, late incumbent of the office
of Treasurer of Vancouver Island, which Mr Seymour treated as
having been abolished, should be appointed Treasurer of the
United Colony.

4. In the same Despatch Mr Seymour stated however that he
found the financial embar[r]assment much greater than he
anticipated, and also that what he mentioned as the light duties
of the office of Treasurer could be performed without much
trouble or increase of pay by the Collector of Customs.

5. I now find that this arrangement was never carried out,
although Mr Watson was removed from the office of Treasurer,
and that, as I have stated, the Department has remained merely
in charge of the Chief Clerk, who has given no security and has
required the assistance of two subordinates in the discharge of
his duties. While in effect there is no responsible official to
whom the Governor can look for assistance in the adjustment and
administration of the financial arrangements of the Colony.

6. I have no doubt that the amalgamation of the Customs and
Treasury into one Revenue Department under the Collector of
Customs, or any other Officer who might be selected as Receiver
General, would have been a most desirable arrangement, though my
own experience does not teach me that the duties of the office
of Treasurer and Public Accountant in any Colony are so light as
to be performed without trouble or increase of expense in
another department. But such a reorganization of these public
departments, which would have been easy and most desirable two
years and a half ago is not now to be so readily accomplished,
nor is it now free from objection. In view of the Union of this
Colony with the Dominion of Canada it would be profitless to
consolidate offices which would have to be again disunited, as
the Customs would be a Department of the federal Government and
the local administration would require a Treasury of its own.
On the other hand, having regard to the necessity which exists
for economy in the management of the finances, and to the
fact that for nearly three years the office, though not the
duties, has been practically abolished I am not at present
prepared to recommend the appointment of a Treasurer. Yet it is
obviously improper on general principles that the public should
be without security for the safe custody of the public monies,
while at the same time it would be hard upon Mr Graham, the
Clerk in charge after being allowed to remain so for more than
two years and a half without any objection on this score, to be
required now without further remuneration to give security which
would probably entail upon him some expense.

7. I admit that under the complicated circumstances which I
have brought to Your Lordships notice, I am disinclined for the
present to attempt any alteration of existing arrangements from
which no absolute evil has yet arisen, but I feel them to be so
irregular that I could not allow them to continue without
acquainting Your Lordship with the state of affairs and my
reasons for not immediately taking some steps in the matter, in
order that Your Lordship may be able to furnish me with any
instructions that you may think expedient under the
circumstances.