Confidential

I think it necessary to accompany my Despatch No 4 of yesterday's
 date by some observations and explanations which I could not offer so
freely in a formal Despatch and which may enable you to form a more
correct judgment on the proceedings of the Legislative Assembly of
this Colony.

A perusal of the printed proceedings of that Body which accompany my
Despatch above adverted to will enable you to form a more accurate
conception of the spirit and prudence with which the annual Estimates
of Revenue and Expenditure have been discussed and decided upon, than
any description I could offer.

Entertaining as I do the strongest sympathy for liberal and
constitutional government and a desire to see the people of this
Colony manage their own affairs with the least possible interference
of the Imperial Authorities, I think the time has arrived when the
existing form of Government should be reconsidered and amended if
Vancouver Island is to be permanently retained as a British Colony.

Two years experience has convinced me that the House of Assembly as
at present constituted is not capable of using constitutional power
in a respectable manner.

There is no officer of the Government or other sufficiently informed
person or Member of the Assembly to initiate Measures or afford
explanations and hence misstatements both intentional and
unintentional are constantly put forward and pass uncontradicted and
uncorrected, to the great detriment of the public interests.

The majority in the present Assembly is mainly composed of reckless
adventurers with small stake in the Colony and in too many instances
wanting in personal respectability—some notoriously insolvent.

Their avowed object is to drive matters to extremity—to abolish
property qualification in Members—to extend and lower the franchise,
and thus obtain responsible or party Government with paid
Representatives. Some go so far as to advocate Members and voters
sitting and voting without having taken the oath of allegiance.

If these Measures were carried the large American element and
influence here would render Government on constitutional or British
principles no longer possible. Characterless adventurers would be
encouraged to the total exclusion of the few respectable persons who
now offer themselves as Representatives.

It must be borne in mind that this Colony started with Representative
Institutions without any of that experience or solid foundation
usually laid in a Crown Colony—without the control of its Crown
Lands, and without a Civil List. Hence the continual wrangling over
the public establishments which are provided for by annual vote when
the salaries of public officers are discussed rather with reference
to the interests of individuals than those of the public.

In the proceedings of the Assembly now under consideration it will be
observed that the three principal officers whose salaries are struck
out are the late Acting Colonial Secretary (Mr Wakeford), the
 Treasurer (Mr Watson), and the Registrar General (Mr Alston) who
ably conducted a painful inquiry into the frauds of the Probate Court
and conduct of the late Chief Justice and made an honest and
conscientious Report thereon (Vide Despatch No 38 dated 15th June
1865). Under the existing system no public officer has any
reasonable assurance of the permanence of his office. A majority of
one in the Assembly may at any time deprive him of his means of
subsistence and thus corrupt and destroy all independence in those
who remain.

While meritorious public officers appointed by the Queen have been
thus summarily dismissed without compensation it will be observed
that some Members discussed and fixed (as far as their power extends)
their own emoluments.

You will observe that the Assembly propose to leave the Indian
population to "execute their own laws," that is to murder each other
 without let or hindrance when inflamed by drink, the sale of which to
 Indians they propose to legalize.

They propose to abolish offices whose occupants the Queen has
nominated Members (ex officio) of the Legislative Council—to create
new offices—and vote money to pay them without reference to the
Executive.

They have reduced the vote for Police to such an extent as virtually
to abolish that force which the Colony stands so much in need of and
where there is no organized force of any kind beyond a few
Volunteers, not yet placed on a legal or effective footing.

I regard this as a most hazardous experiment. The working classes
here are attracted from distant places—strangers are continually
pouring in—moral and social restraints are few and feeble, and the
temptations held out by 85 licensed public houses in
Victoria alone, saloons, brothels and gambling houses (some of
them combining all three characteristics) far exceed those usually
found elsewhere.

The salary for the Superintendent of Police (Lieut. Hankin) a most
useful officer in dealing with the Indian population, has been
disallowed and it is proposed to replace him by the "Stipendiary
Magistrate" (Mr Pemberton) an officer whom I was obliged to remove
from that position in consequence of the scandals and disorganization
existing in the office as reported in my Despatch No 100 dated
3rd December 1864.

The Stipendiary Magistrate (who was also Harbour Master and Collector
of Revenue) at Nanaimo, the second town in the Colony, has been
"struck out," thus leaving that important settlement 80 miles distant
from Victoria and accessible by sea only, without a single public
officer, and in lieu of such I am recommended "to appoint an unpaid
Magistrate" from amongst a community consisting of working men, coal
miners and small shopkeepers.

In the last two Sessions the Assembly were in Session for 9 and 10
months respectively. The unnecessary duration of these sittings is
in itself a great public mischief.

The whole foundation of a sound and prosperous Colony has yet to be
laid and I see no prospect of its being done by an irresponsible
Assembly strongly imbued with republican and American sympathies.

The electoral franchise and distribution of the Members requires
thorough reform (vide Blue Book Report 1864) and it is not likely to
be undertaken by Members who in many cases virtually return themselves.

I have adverted to the population and number of voters in my annual
Report No 73, 24th August 1865, and need not recur to it beyond
stating that the franchise cannot well be lowered without reaching
manhood suffrage—a most dangerous expedient in view of the large
American element in the population.

The time of the Legislative Council is almost wholly occupied in
revising or rejecting the crude Bills drawn and passed by
unprofessional Members of the Legislative Assembly and a constant
warfare between the two bodies is the natural and inevitable result.

Few respectable men will consent to go through the ordeal of an
election to the Assembly and hence the legislative power is abandoned
to political adventurers.

Capital is repelled and industry paralyzed when the form of
government offers no security for any fixed or consistent policy.

The latest effort in the way of raising Revenue consisted in the
imposition of import duties upon cabbage, carrots, potatoes, beef,
mutton and pork while spirits, wine, beer, tobacco, and all other
luxeries are left free.

Public charities, cost of a fire brigade, roads, bridges, and
gratuitous education offered to the whole community, are all made
charges on the general Revenue without local or municipal taxation of
any kind.

I have on former occasions stated that the present system of taxation
is crude and inequitable, the great bulk of the population escaping
taxation in any form whatever, direct or indirect.

The expenditure for education $15,000 a year is rapidly degenerating
into a monster job managed by an irresponsible Board.

I am in a position to know that the refusal to recognize or provide
for the offices of Surveyor General and Treasurer is a foolish
attempt to deprive me of the services of these Gentlemen in the
Legislative Council.

It will naturally occur to you that a dissolution of the present
Assembly and the election of a new House might partially remedy some
if not all the evils I have pointed out—I have well considered this
matter and feel convinced there would be no improvement in its
material—the population and constituencies are too small for
anything like healthy political action. Moreover, the
present House is pledged to adopt any form of Government Her
Majesty may concede to them in the event of a union of the Colonies,
and it would therefore be imprudent to dissolve a House so pledged
while that question is undecided. I firmly believe that the
respectable element in Board of Trade and all those with property at stake
would wish to see a nominated in preference to an elected Legislative
body for at least some years to come. The comparatively orderly and
quite conduct of Government in the neighbouring Colony without a
Representative Assembly affords a strong contrast to the often
disorderly and mischievous proceedings here.

A strong Government and individual responsiblity are absolutely
requisite for the successful dealing with the large Indian population
which becomes a greater source of anxiety and a more difficult
problem daily.

Whether separate or united to the sister Colony I can see no reason
why Vancouver Island should not become prosperous and entirely self
supporting, but at present the Colony is being experimented upon by
very rude hands and confidence at home and abroad is thoroughly
shaken.

It is difficult for any person at a distance to realize the state of
things as they exist here whether in a national, social, or political
point of view, and I have therefore thought it my duty in this
hurried and I fear very imperfect manner to bring the subject before
you at a time when the union and future form of Government of these
Colonies is under your consideration.

I enclose copies of a letter I addressed to the Speaker of the House
of Assembly together with his reply thereto on the subject of the
salary of my Private Secretary. You were good enough on a late
occasion to appoint Mr Wakeford Auditor of the colony the salary for
which (£247) is also disallowed, thus leaving this Gentleman who
relinquished an office in Western Australia to accept of it, without
any salary whatever.

Mr Wakeford during the period he was Acting Colonial Secretary
afforded me efficient aid in effecting many reforms and correcting
various irregularities and I cannot attribute this economical
proceeding to other cause than a desire to get rid of an officer
whose high sense of honor and incorruptibility are uncongenial to the
majority of those who had to decide upon it.