Northcote to Merivale (Permanent Under-Secretary)

With reference to your Letter of the 21st Ultimo
and to the previous correspondence which has passed on the
subject of the grant of a Charter to the Bank of British
Columbia, I am commanded by the Lords Commissioners of
Her Majesty's Treasury to acquaint you that My Lords find
on communicating with the Counsel of this Board that they had
overrated the importance of the clause which provided for
the notification to the Queen by Warrant of Their Lordships
of any breach of the Covenants of the Charter with a view to
it's revocation.

Mr Bellenden states that "the words are not
essential; that they had been introduced in some recent
Charters as it appears convenient that there should be some
responsible body on whose suggestion the Crown should act;
and the Commissoners of the Treasury were selected seeing
that all the other matters relating to the Charter were
referred to the Treasury."

Their Lordships are glad to find that, in acceding to
the proposal of Sir E. Bulwer Lytton for the omission of the
words in question the difficulties which they apprehended
are not likely to occur. At the same time, they wish it to
be understood that, in deferring to his wishes in the matter,
they do not abandon any of the powers which this Board may be
called upon to exercise in case of any circumstances arising
to require the revocation of the Charter.

My Lords have forwarded the Draft as amended to the Board
of Trade and have recommended that Her Majesty be advised to
direct the issue of letters Patent under the Great Seal in
conformity therewith.