No. 86

I have to acknowledge the despatch from the Officer Administering
the Government No. 21 of the 24th June last, submitting the British
Columbia Estimates of Revenue and Expenditure for the current year.

2. I have to draw your serious attention to the total disregard of
instructions which has occurred in connection with these Estimates. In
the Duke of Buckingham's despatch No. 105 dated the 7th December 1868,
acknowledging the Appropriation Ordinance and Estimates for that year,
Governor Seymour, received for his guidance, and for adoption so far as
applicable to British Columbia, a copy of a despatch to the Governor of
the Straits Settlements prescribing rules and forms of statement, to be
followed in the case of that Colony, in the submission of the annual
Estimates and Appropriation Ordinances and Blue book returns. Governor
Seymour replied, in his despatch No. 32 dated the 9th March last, that
the instructions enclosed to him "were not applicable to British
Columbia." He gave but little explanation of his reasons for this
opinion, but, as expressed, it extended to the whole of the instructions
and accordingly they appear to have been entirely laid aside. In the
Governor's despatch No. 45 dated the 19th March, the Appropriation
Ordinance for 1869 was submitted without the Estimates and now that
these have been received in the present despatch dated the 24th June,
they are found to be unaccompanied by any statement of Assets and
Liabilities, or any other of the financial returns required by the Duke
of Buckingham's instructions.

3. I have therefore to instruct you in the first place not to
separate in future the Appropriation Ordinances and the Estimates on
which they are founded, and secondly, I have to repeat the instructions
given to your Government by the Duke of Buckingham, to be guided by the
rules prescribed in the despatch to the Straits Colony, so far as
applicable to British Columbia. I for the present leave yourself to
decide, for the purpose of preparing the Estimates and Appropriation
Ordinance for 1870, what precise portions of the instructions referred
to should be adopted or not adopted, by your Government, but I request
that you will report fully and distinctly your reasons for considering
inapplicable or postponing whatever portion is not adopted. The most
essential accompaniments of the Estimates and Ordinances will
unquestionably be the returns or Estimates of Assets and Liabilities for
the beginning and ending of years. These will be indispensable. It is
also essential to the due supervision of the Colonial Finances by Her
Majesty's Government, whose duty it is to exercise such supervision very
fully, so long as the present Crown system of Administration continues,
that the Annual Appropriation Ordinances should be passed, and Estimates
and accompanying information despatched at a much earlier date than has
been done in the case of the Ordinance and Estimates for the present
year. I am aware of no reason why the date for despatch prescribed in
the case of the Straits Colony, viz, before the end of the year
preceding that of Estimates, should not be considered applicable to
British Columbia. With respect to the remainder of the Duke of
Buckingham's instructions, I shall be prepared to sanction modification
or postponement, so far as required by the circumstances of the Colony,
but I rely on your carrying out the Instructions as far as circumstances
may permit. You will bear in mind that a proper framework of financial
statements is quite as essential for the information of yourself and the
Colonial Legislature and community as for that of Her Majesty's
Government.

4. I annex a corrected copy of the instructions to the Straits
Colony referred to, a slight error having been found at page 3 in the
copy before sent.