Trevelyan to Merivale (Permanent Under-Secretary)

Having laid before the Lords Commissioners of Her
Majesty's Treasury your Letter of the 28th ultimo proposing
certain amendments of the "Draft Charter for the Bank of British
Columbia," I am commanded by My Lords to state for the information
of Secretary Sir Edward Bulwer Lytton, that They can hardly think
that the full impact of the provisions regarding the revocation
of the Charter were brought under his notice when he proposed
that the issue of a Warrant of this Board for the purpose should
be made legally subject to the concurrence of the Secretary of
State for the Colonies.

I am to state that, in framing the Drafts of Charters for
Colonial Banks, it was considered desirable by the counsel of
this Board that some summary course should be provided for the revocation of the Grant, in case of breach of its provisions,
in order to avoid the delay and expense of proceedings in
Chancery; and that, for this object a power should be reserved
to the Crown to revoke the Charter on proof of violation of its
conditions, which power should be set in motion by a formal
representation to the Queen by some Department of Her Majesty's
Government.

It appeared to be obvious that this Board, as the
Department charged with financial business was the proper
authority to be entrusted with the function, and the clause
which is now proposed to be altered has been inserted in all
the Colonial Bank Charters of recent years. The power conferred
by it is not of an arbitrary nature. That power could only be
exercised on proof that the corporation had so conducted its
operations as to entail legal forfeiture of its privileges;
and it is not to be supposed that so serious a step as the
revocation of a Charter would be taken except after mature
consideration of all the facts of the case of which the Secretary
of State for the Colonies would necessarily be cognisant, and under
the advice of the Law Officers of the Crown.

My Lords are aware of no reasons which can be urged against
the ministerial Act provided for being vested in this Board; but
if Sir Edward Bulwer Lytton is prepared to state any grounds why the
course hitherto observed in the matter should be altered, My
Lords will be ready to consider such suggestions as he may wish
to offer on the subject, but They cannot consent that, under any
circumstances, the ministerial duty of submitting Their Warrant to
Her Majesty should be made legally subject to the previous
approval of a Secretary of State.

I am to observe that My Lords will consider the other
suggestion contained in your Letter.