Arbuthnot to Merivale (Permanent Under-Secretary)

I am directed by the Lords Commissioners of Her Majesty's
Treasury to transmit to you, herewith, a Copy of a Letter
from the Commissioners of Audit, and of its enclosure,
claiming repayment of the amount of advances from the Treasury
Chest, on account of British Columbia, and I am to request
that you will state to the Duke of Newcastle that the
balance on the Grant for British Columbia for the year
1859/60, is not sufficient to meet the Claim of the Treasury

Chest for these advances which amount to £10,340.4.8.

Their Lordships propose to postpone the repayment,

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until some general adjustment of the advances for this
Colony can be made.

In the mean time, however, They consider that Colonel
Moody, and Captain Parsons, should be called upon to
furnish accounts for the several issues to them or to their order,

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with the exception of the payments on account
of their own Passages, and those of their respective families.

With reference to the last paragraph of the Auditor's
Report, My Lords are of opinion that the account of this
Expenditure should be rendered to the Commissioners of Audit
for their examination,

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unless Colonel Moody and Captain Parsons have forwarded Accounts to the War Department.

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Their Lordships would, at the same time, call

the
attention of His Grace to the necessity of calling for
Accounts of the several sums which have been drawn by the
Governor and Treasurer by Bills on the Paymaster General,

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which appear in the Statements forwarded in the Letters
from this Department of the 1st February 1859, and 16th Ultimo.

They are not aware of any instructions that may have
been given to Captain Gosset, the Treasurer,

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on this subject, nor are They aware that any arrangements have been
made for the audit of the Accounts in the Colony.

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In the absence of any special Instructions, Their
Lordships would submit to the Duke of Newcastle the
expediency of informing the Treasurer that it will be
necessary to forward to the Commissioners of Audit Accounts
and Vouchers of the several sums received and disbursed by him,

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on account of the Bills drawn

upon the Paymaster General.

Their Lordships would also call the attention of His
Grace to the expediency of giving some directions in regard to the
course to be pursued in accounting for the Revenue raised in the Colony,

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in pursuance of the Instructions contained in the 11th par. of Sir
E.B. Lytton's Despatch, No 8 of Augt 14/58.

They wish to be favoured with the opinion of His Grace whether
British Columbia is to be considered for the present as a Crown Colony,

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the Revenue of which is to be accounted for
to Her Majesty's Government, upon the same system that has been
adopted in the other dependencies of the Crown not possessing
representative Governments.

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Their Lordships apprehend that the Forms of Instructions
which have been already furnished to the Treasurer will enable
him to draw up the Accounts in a satisfactory state for
examination by the Commissioners of Audit.

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