No. 35, Legislative

With reference to your Despatch No 123, of the 13 May, and
to mine of this date No 34, I have the honor to forward herewith
for Her Majesty's Confirmation the "British Columbia Roads Loan
Act 1862," accompanied by a Report from the Colonial Attorney General.

2. The Attorney Generals report points out wherein this Act
differs from the Act of 1861, which it repeals. The main features
of difference exist in the Amount and in the rate of Interest.
The sum to be raised is limited to Fifty thousand Pounds (£50,000), and
the rate of interest the lowest at which that sum can be obtained, not
exceeding 10 per Cent per annum. I was induced to specify a
Maximum rate of interest from the fact that I received an offer
from the House of Henderson and Burnaby of London and Vancouver's
Island, to furnish any sum that might be required as a Loan not
less than £50,000, at interest of 10 per Cent per annum, but
I trust that the continued intelligence of the vast auriferous
wealth of the Colony, and the rapidly increasing confidence in
its ultimate importance and prosperity, may justify the hope
that we shall be able to obtain a more favorable rate of interest
than 10 per Cent.

3. Your Grace's instructions respecting a priority being
given to the Loan over all other Demands upon the Revenue, and
for its redemption by means of a sinking fund, as well as for the
Agents General being duly empowered to borrow the money, have
been carefully followed.

4. The period of redemption has been fixed at Ten years,
instead of Twenty as in the 1861 Act, as it was considered more
desirable to terminate the liability in the shorter period.