Sargeaunt to Elliot (Assistant Under-Secretary)

I transmit to you the enclosed copy of a letter from the
Colonial Secretary of British Columbia requesting the Crown
Agents in order to provide the sum of £4,125 for interest
and Sinking Fund due on the 1st inst: on the loans of that
Colony to draw a Bill at two months date on the Colonial
Government and present it at the Bank of British Columbia
to discount. I also annex copy of a reply received from
that Bank to the application made to it, in accordance
with the above instructions, stating that no advice having
been received from the Branch in the Colony on the subject
and the Colonial Government being already very largely
indebted to the Bank, the Directors do not feel disposed
to increase the amount and therefore decline the proposed transaction.

As any break down in the punctual payment of dividends
due at this Office would affect not only the interests of
the defaulting Colony, but those of other Colonies and
render all Colonial Debentures for the future much less
saleable, the Crown Agents have taken upon themselves the
responsibility under the circumstances of the case, of
satisfying the claims for interest which have been
presented, the result being that the British Columbia
account at this Office on the 13th instant stood as follows:

Amount overpaid on 13th October 1866
£3,148.
16.7

Interest on Debentures due on 1st
October but not yet claimed
£381.

Sinking Fund due 1st Octr
£1,125.

Mr Cooper half Salary for 9 mos
£150.

Stores & Incidental
£245.
 3.5

£5,050

I have to apply for the Earl of Carnarvon's approval
of the course taken by the Crown Agents and have only to add
that the necessity of making punctual remittances has been
repeatedly brought under the notice of the Colonial
Government by the Crown Agents, the amount required annually
to meet the interest and Sinking Funds payable at this
Office on account of British Columbia are:

1st January
£6250

1st April
4125

1st July 
6250

1st October
4125

I have forwarded a copy of this letter to the Colonial
Secretary of British Columbia by this day's Mail.