No. 13

I have received Governor Kennedy's despatch No. 76 of the 28th
September transmitting the Acts passed during the last Session of the
Van Couver Island Legislature.

I have reported to Her Majesty in Council my opinion that nine of
these Acts should be left to their operation, and I have the honor to
transmit to you an Order of Her Majesty in Council dated the 2nd
February approving that Report.

I entertain much apprehension as to the effect of the Act No. 2 "to
amend the Liquor License Act 1861" which reduces the license fee on
Spirit shops within three miles of a Town from 60£ to 12£. The effect
will of course be somewhat to diminish the number of such places in the
towns but to encourage their growth in the suburbs. I fear that on the
whole the effect will be to stimulate the consumption of spirits in
places where it is particularly desirable to discourage it, combining as
far as possible the greatest facility for indulgence with the least
facility for inspection. Such a result would be eminently undesirable
in the middle of an Indian population: and I cannot without further
explanation recommend that such a law should receive Her Majesty's
sanction. Such an explanation I request you will communicate to me
together with a report on the actual working of the Law.

I cannot but acknowledge the propriety of the motives with which
the ie Legislature has passed the Act No. 6 "to exempt the Homestead and
other Property from forced Seizure and Sale in certain cases;" and I do
not willingly interfere with the operations of a law passed to meet the
exigencies of a rising community. I would however point out that
enactments of this nature have a strong tendency to encourage
recklessness in the transaction of business which it should be the
object of legislation to discountenance. And I think that more might
be done to prevent this consequence. For example extraordinary
recklessness might be in some degree punished by providing that the
Homestead should not be exempt from seizure in cases of bankruptcy,
unless the assets of the bankrupt divided among his creditors amounted
to twice the value of the Homestead.

Perhaps also it might be provided that if a bankrupt thus retained
from his creditors part of his existing property, these creditors should
retain some corresponding or more than corresponding him [?] on his
after acquired property, which if the cession had been complete, would
have been absolutely free from liability.

Before giving Her Majesty any advice respecting the confirmation of
this Act, I should wish to receive a report from you when the means of
diminishing the encouragements which it may afford to reckless or
dishonest speculation.