No. 28

I have the honor to transmit to you a copy of a letter from the
Crown Agents containing a statement of the Debentures sold under the
Ordinance No. 7 of 1864 amounting to £27,650.2.6 and of the Services to
which this amount has been appropriated.

You will also observe that the sum due to the Imperial Treasury on
account of the Barracks erected for the Royal Engineers, as well as
advances made and liabilities incurred on behalf of the Colonial
Government still remain unpaid, and it appears from a further letter
from the Agents that bills to the extent of £29,000, (of which I have at
present received no advice from you) drawn upon them by the Colonial
Treasurer have been presented for their acceptance. I have authorized
the payment of these Bills should the Agents consider it clear that the
securities in their hands will enable them to meet them when due, but I
must at the same time remind you that the proceeds of the Loan form the
only source from which these Bills can be paid, and against which any
future Bills which may arrive from the Colony can be drawn, and that
unless the amount of these Bills is very carefully limited or money
remitted from the Colony, the Agents may find themselves forced to
dispose of the Debentures at a sacrifice or even to refuse to accept the
Bills.