No. 78

I have now the honor of submitting a Report upon the
scheme of Captain Clarke, R.E. for the disposal

of land in
British Columbia forwarded to me with your Grace's despatch
No 3 of the 7th of January last.

2. The Scheme has, I may premise, merits of a high
order, and indicates the large experience, and, on many points,
liberal views of the writer; I fear however, its
introduction here, would not, without modification, be
attended with any immediate or ultimate advantage.

The System appears

to be adapted to the present
advanced state of the Colonies in Australia, which are
relatively wealthy and populous; and where the genial
climate, open surface, rich pastures, the accumulation
of capital, and profits derived from Stock Farming,
make land a desirable investment, and lead to its rapid
sale; but is inapplicable to a Colony like British Columbia, just called into existence, and

where the physical
conditions of climate and soil are altogether different,
and country land as yet, with some few exceptional
localities, absolutely unsaleable.

3. In principle however, Captain Clarke's scheme is, not
widely different from the Laws now regulating the disposal
of land in British Columbia, the difference being chiefly
observable in matters of detail; a fact which will appear
from the following review of his plan, engrossed in red for
the sake of contrast,

and the Laws now in force in British Columbia.

Sections 1 & 2.

(1) Alienation of Crown lands to be by sale at public
auction as hereafter described.

(2) Excepting from above provision Country lands once
or oftener submitted for sale at auction, and not bought,
which may be purchased by Contract with Governor or
Officer named to receive purchase-money, also lands
required for the purposes of Government either general

or municipal, or held under public trusts where trustees
not named or approved by Executive Government, or
incorporated in Legislative Acts, also with respect to
engagements made by the Crown to Naval and Military Settlers.

Both Schemes adopt the Auction System in the alienation
of surveyed Crown Lands, and sanction the selection and
temporary occupation of unsurveyed lands, with hardly a
shade of difference, except that the upset price in British Columbia

is fixed by law at ten shillings per acre, exceeding by five shillings the upset price proposed in Captain Clarke's scheme.

Section 3. Province to be divided into Counties, Hundreds
and Parishes.

No objection occurs to me against the division of the
Colony into Provinces, with subdivisions of Counties, Hundreds
and Parishes, as recommended in this Section: but any such
division at present, while the Country

is imperfectly known,
would be premature, and would probably require speedy alteration.

Section 4. Lands to be distinguished into Town and Country
Lots.

The Law of British Columbia add "suburban" Lots as an
intermediate class between Town and Country Lands.

Suburban Lands are generally laid out in Five Acre Sections,
forming a zone immediately beyond the Town Lots, and

extending
to the Country Land. This is found to be both a useful
distinction and profitable to the revenue, inasmuch as the land
brings a higher price than Country land, and its being put up
for sale in small lots, leads to a more equal and satisfactory
distribution of the valuable land near Towns.

Section 5. Authority to Governor to convey.

Section 6. No lands to be alienated or conveyed till surveyed
and

limits marked on Public Charts, and boundaries &c described in
Register.

The Law of British Columbia gives that power to the Governor
and provides for the alienation of country land in the same manner.

Section 7. No grant to cover alienation of more than one
square mile, or 640 acres, or no greater area to be offered
at auction than said quantity in one lot.

This restriction may be grafted on our present system,
though

I must confess I do not see its advantages to the Colony.

Section 8. Lowest upset price to be five shillings per
acre. The upset price of Country lots is Ten Shillings * an acre in British Columbia; but I agree with Captain Clarke as to the
expediency of fixing it at Five Shillings per acre.

Section 9. Upset price of Town lots to be fixed by
Governor in Council.

Section 10. Town Lots to be sold only at auction.

Section 11. Power to Governor in Council, in case of Country
lands, the probable value of which is enhanced by
circumstances, to raise upset price to approximate value.

The practice is the same in British Columbia, except in
respect to the sale of Town Lots, which, after having been put
up at auction, may be sold by private sale at the upset price;
a plan adopted to facilitate sales, and enable the local officers
to meet applications as made; for it was found that official
delays

had seriously deterred many persons from purchasing lots.

Section 12. All lands (Town and Country) put up to
auction at prices respectively stated in Schedule of Sale, will be
declared to be purchased by the bidder of the upset price,
or the highest bidder above it, provided he shall pay down
then and there the whole amount of purchase money, or a
deposit of 25 per cent on the amount of purchase money.
The remainder to be paid within 60 days from

the date of sale.

The Law of British Columbia is somewhat different in this
respect, it required payment in cash of one half the purchase
money of all Country land sold, at the time of sale, and the
other half at the end of two years: and a deposit of 10 per
cent on the purchase money of Town Land, and the balance in
three months from the date of sale.

Captain Clarke disapproves of that practice; and I would
observe in reference to his remarks on the subject, that

the
system of deferred payments, or payment by instalments, and
introduced with the view of encouraging the sale of Country
land, and giving an impulse to settlement; as the experience
derived from the Colonization of Vancouvers Island, proved
conclusively, that the rigid enforcement of the system of
prompt payment would certainly defeat both of those objects.

I may here state that no persons of large means have as
yet settled in British

Columbia, and that the purchase of
Country Land is considered a most unprofitable method of
investing money in this country.

A high rate of interest is derived from investments in
other real estate, or in Mining or Mercantile enterprise, while
waste land yields no immediate return.

Capital has therefore not sought an outlet in that
direction, and so limited is the demand for Country Land, that
the very liberal terms offered by the "British Columbia
Pre-emption Act"

passed on the 4th of January 1860, have
produced no other decided effect than the formation of several
small settlements in favorable localities; but the Country
at large remains untilled, unimproved, and unproductive of
everything but Gold.

I may further remark, that the emigration to British Columbia, has, in most cases, been of the poor and laboring
classes, some of whom were men of small means, but the great
majority had not

a farthing on their arrival.

Those men are, however, the bone and sinew of the State;
and if they can be induced to till and cultivate the soil,
they will soon produce a sensible effect upon the country.

The whole of that class would, however, be excluded from
purchasing land by enforcing the system of prompt payment;
its effect would be to place the Colony in a false position,
there being on the one hand no capitalists disposed to purchase
land,

while on the other hand the stringency of the terms
would virtually amount to a rejection of the only class who
are desirous of settling in the Colony.

In Canada, New Brunswick, and other Colonies, a low price
for land, and the system of deferred payment, has, I believe,
been universally adopted, and with the happiest results.

The Donation Act, until very lately in force in the
neighbouring Territories of

the United States, was singularly
liberal and attractive to Settlers. It conveyed to all
settlers, who had resided in the State before the passage
of the Act, a free grant of

640 Acres to Married Settlers.

320 Acres to Single Settlers.

and one half of those quantities to settlers arriving from
and after the passage of the Act.

The general Pre-emption Law of the United States entitles
settlers to enter into possession of from 160 to 320 acres of

unsurveyed land, with the right of purchase at the Government
price, of one Dollar and a quarter per acre, on the survey being made.

Those enactments all bear testimony favorable to a liberal
land system. I believe it is cheap land, coupled with the
condition of occupation, that has made the United States what
they are; and that is now clearing the wilderness, and adding
so largely to the population and the revenues of Canada.

The settlement of British Columbia, is, I believe,
dependent on the same wise policy, and must be fostered and
promoted by the same means, or emigrants will be forced into
the neighbouring Territories of the United States, where they
may freely select from millions of acres, equal to any land
in British Columbia, at the low price of one dollar and a
quarter per acre, payable only after survey.

In tracing the effects of the two systems, I would

remark
that there is obviously no period of a settlers' career when
capital is more useful, or more pressingly wanted for carrying
on his operations, than at his first start in a new country.
He must then purchase implements; working and stock-cattle;
clear, till and enclose land; employ his own labor, and for
a time purchase even his own food. In no case therefore, can
it be advisable to allow the

whole of the settlers' capital
to be absorbed in the purchase of land, for that would be
depriving him of the means of improving and bringing land
into cultivation, precisely at the time when the aid of
capital is most wanted.

If we suppose that the ready money system of payment
cannot be enforced without checking, or perhaps wholly
preventing, the sale of land, and retarding the settlement
of the Country; and such, I may remark, would

inevitably be
the result in British Columbia, then I submit there can be
no doubt as to the impolicy of a practice so fraught with evil.

The Crown Lands, should, I think, be treated as a means
of aiding the progres and development of the Country, and not
merely as a source of revenue. If the increase of population
is admitted to be the paramount object of consideration, then
I conceive the settlement of the Country should be encouraged

through the only means in our power, the cheap and easy
acquisition of land that being probably the greatest and
almost sole attraction which new countries possess: therefore
if settlers are unable to make their payments at once, without
sinking too large a portion of their capital, I submit that it
would be advisable for Government to allow time for those
payments, rather than lose the chance of retaining a resident
and improving

population in the Colony.

It is of the utmost importance that the Colony should
have a resident population as the basis of a regular and
permanent revenue, and that object would, I conceive, be
cheaply attained were it even to involve the free gift of a
great part of the waste land in British Columbia; for the
country would still in that event be a gainer by the sacrifice,
as is pertinently shewn in the words of a great writer, who
observes:

As the Crown Lands, which are now unproductive, would,
when they become private property, soon be improved and
cultivated, their produce would increase the population of
the country by augmenting the revenue and consumption of the
people; and the revenue which the Crown derives from the
duties of Customs and Excise, would necessarily increase
with the revenue and consumption of the people.

I have in conclusion

to add, that I differ in opinion
from Captain Clarke on the point of requiring immediate
payment from purchasers of Country land; the introduction of
that system, at present, would, I think, retard settlement,
check the sale of public land, and be disastrous to the Colony.

Section 13. Purchaser to sign Sale Book.

Section 14. Should purchaser neglect to pay balance of
purchase money within

60 days, the deposit of 25 per
cent will be forfeited, and the land if classed as
Country land be declared open for future purchase,
either at Auction, or as hereafter prescribed.
Such Regulations are now in force in British Columbia.

Section 15. Country Lands, once offered for sale, and for
which no offer has been made, or on which the deposit
has been forfeited, may at discretion of Governor in
Council be adverted as open for selection or purchase
at private

Contract at prices affixed.
A similar provision is made in the Laws of British Columbia.

Section 16. All applications for land to be purchased by
selection, or private contract, to be made in writing,
purchase money deposited.

Section 17. As far as practicable, all lands to be sold
in or near site of such lands. All lands open for selection or
purchase by private contract, should for 12 months after
the  date

of first advertisement be subject to selection
only at the nearest Government office or Magisterial
Branch to site of such lands, and then subsequently only
at the Chief Crown Land Office.

Section 18. All contemporaneous or conflicting
applications for the same land, to be determined at Auction.

Regulations to the same effect are now practically in force.

Section 19. All lands to be sold by Auction, or otherwise,
to be advertised at least 30 days before

time or date of sale.

The Law of British Columbia provides that due notice shall
be given of all auction sales.

Section 20. All lands sold to be described with purchasers
name attached, and advertised within reasonable time after
date of sale.

Section 21. Register with Charts attached describing each
lot and subsequent history to be kept in Chief Crown Lands Office.

Convenient and useful and may be introduced with

advantage
hereafter, when the revenues of the Colony are capable of
defraying the cost of a larger establishment of public Officers.

Section 22. Beyond the limits of Survey, or in other
words, beyond ten miles from the nearest lands surveyed, sold, or
ready for sale, licenses, on application to the nearest
Bench of Magistrates, may be issued to persons desirous of
selecting land for settlement and the immediate purpose of
cultivation or

other lawful occupation.

The gist of this Section is contained in the Proclamation of
4th January 1860, entitled the "Pre-emption Act."

Sections 23, 24, 25, 26, and 27. Prescribing the forms of
application for land &c.

Sections 28, 29, and 30. These
Sections are devoted to licensing land for depasturage
of Stock, and are inapplicable to British Columbia.

Section 31. Annual Licenses to be issued to persons to
fell timber, to remove stone, open Brickfields, &c
Now practically in force in British Columbia.

Section 32. On the site of probable Townships, and on the
Gold-fields where land for building &c has not been sold,
Business licenses to be issued, annual—renewable—such
licenses not on renewal to be subject to auction.

Section 33. Fees payable on said Business licenses to be
in proportion to

Frontage to Street or thoroughfare occupied,
but under one License not to exceed [blank] feet.

Business Licenses are issued to all persons occupying Crown
Lands and carrying on any trade or occupation in British Columbia.

Section 34. Declaring undesirable to sell auriferous
Land, but when land sold Gold in it conveyed to purchaser with soil,
but subject to tax, duty or Royalty, as other Gold from Crown Lands.

The Law of British Columbia

conveys all Mines and Minerals
with the land, but reserves Mines of Gold and Silver for the
benefit of the Crown, and I think it advisable to leave the law
in its present state until the Country has been explored, and
the extent and character of the Gold Fields ascertained with
some degree of precision; otherwise the auriferous lands of
the Colony may pass into private hands, and become the property
of

persons opposed to their being worked, except on terms
oppressive to industry.

It has been the constant aim and policy of my government
to encourage and protect the Miners, on whom all classes depend
for support; theirs being the only productive branch of industry
which is yet developed.

The public revenue is also wholly derived from the produce
of their labours; and there is no other interest

so important,
or which so well deserves the regard and consideration of the
Country. The Law, for that reason, reserves a right in their
favour, freely to enter upon and work all Mines of Gold and Silver.

Sections 35, 36, 37, 38, 41. Provisions, similar in
effect, are made by the Laws of British Columbia.

Section 39. Similar powers for Mills, either for Quartz
Crushing, sawing timber, &c, laying down tramways, Rails, &c.

Section 40. General rules regulating survey with regard
to Main Roads, Navigable Waters, Permanent Streams, Lakes,
Springs, general size and proportion of Lots &c
May be engrafted into our Code with advantage.

Sections 42 to 50. The powers conveyed by these nine
Sections are all actually

or virtually in force in British Columbia.

4. I have now brought to a conclusion my review of Captain
Clarke's Scheme as compared with the Land Acts in force in
British Columbia; and have freely given my opinion of the
relative merits of each, viewed as a means of attracting
population, the desirable object at which both schemes should aim.

5. The former commits the error of assuming that the country
possesses a population desirous of settling in the Colony and of
purchasing land; whereas I have shewn in the course of my
remarks, that no disposition has been manifested by monied men
to invest capital in that way; and the labouring classes cannot,
for want of means, become landowners, unless the price is
moderate, and payments made by instalments.

6. The reason, as I

have before shewn, is the profitless
character of such investments for every one except the labourer,
who does his own work, and makes a livelihood from the produce
of the land. It is on that class therefore, that we must, in
the first instance, chiefly depend for the permanent settlement
of the Country, and it will be obviously unwise to throw
obstacles in the way of their acquiring land.

7. I would therefore,

not recommend any change in our
present laws until the "Pre-emption Act" of 4th January 1860
has been fairly tested; and should it not produce the desired
effect of attracting population, it may be modified by reducing
the price of Country Land to Five Shillings per acre, or by
adopting the system pursued in Canada of making free grants of
one hundred acres to Settlers, coupled with

certain specified
conditions of occupation and settlement.