No. 127, Financial

I have the honor of transmitting herewith for your
information, an abstract of the Revenue and Expenditure of
the Colony of British Columbia, taken from the Accounts of
that Colony, which have been made up in a clear and intelligible
form, to the 23rd day of February 1859.

2. Those Books comprise all our Financial transactions
up to that period. It will be observed, that the Income
derived from the various sources therein shewn, amounts to
the sum of £22,924.1.5; and the expenditure for the same
period, to £25,059.6.4, exceeding the Income by the sum of £2135.4.11.

3. To meet the deficiency, there is on the other hand the
sum of £10,284.19.9 remaining, partly in Cash at Langley, and
partly due on the sale of Town Lots, at the same place; a small
sum invested in Government buildings, and in aid of the Harrison's River Road, which leaves a Balance on that date
exceeding £8,000 in favor of the Colony.

Some petty balances may remain outstanding at Fort "Hope",
"Yale", and "Lytton", which were not received in time to be
incorporated with those accounts; but such sums will be paid
out of the current revenues of those Districts.

At the Towns of "Lytton", "Hope" and "Yale", which were
surveyed and laid out into building lots, last autumn, no sales
have yet been made, but instructions have been conveyed to the
Commissioner of Lands and Works, to bring those lands into the
market with as little delay as may be convenient.

4. The construction of the Harrison or Lillooet Road, has
been the great source of outlay this season, that work having
cost the Colony nearly £14,000.

5. Large as the outlay may appear, it very inadequately
represents the value of this important public work, which has
removed the difficulty of access, and the great impediment to
the development of the mineral regions of British Columbia.

6. The outlay for all other objects connected with the
Colony, including £2,300 applied in defraying the extra pay
allowed, for one quarter, to the Officers and Ships Companies
of Her Majesty's Ships "Satellite" and "Plumper" forms the
moderate sum of £11059.

7. The removal of the intended Sea Port Town, from Langley
to Queensborough, has caused a depression in the public revenue,
arising from sales of Town lands, which ceased entirely at the
former place, with the first announcement of the proposed change
in the seat of Government.

Colonel Moody reports that it will be several weeks before
the survey of the site of Queensborough is completed, and that
no country land will be surveyed for sale before the first week in May.

8. Those sources of revenue are therefore for the present
altogether unproductive though the current expenses of the Colony
are somewhat increased by the addition of civil assistants to
expedite the survey of country lands, and to increase the means
and efficiency of the Department of Lands and Works, and to
render it productive of revenue.

9. The Colonial Treasurer advocates Stamp duties as a source
of revenue "in combination with a self paying Registration of
Assurances affecting real property,"
and I have desired him to prepare a report on the best means of
carrying those views into effect.

If such duties be confined even to conveyances of real
estate, they will be productive of considerable revenue.

10. The want of an assay office in the Colony is felt as
a public inconvenience, and is no doubt highly detrimental to
the commercial interests of the country. There being at present
no means here of ascertaining the true commercial value of Gold
dust, the merchant to save himself from loss will only purchase
it, at a low rate, which the Miner will not accept, or the gold
dust is retained in the Merchant's hands in deposit, until
samples of it are sent and tested at San Francisco.

Hundreds of Miners worn out with the expense and delay so
occasioned, fly in disgust with their gold, to San Francisco.

11. An assay office established here, the evil would cease
to operate, and the gold would remain in the country.

12. The establishment of an assay office would otherwise
I believe, prove of signal advantage to the public revenue, in
as much as it would give facilities for levying an export duty
on Gold. That is now impossible, and will be, so long as the
Miner cannot get a fair price for his gold in this country, and
in consequence keeps it in his own hands. If collected at all,
in those circumstances the duty would have to be wrung from each
individual miner, and they, to elude the payment, would cross
the frontier and fly with their treasures into the United States.

13. The Assay Office would provide a remedy for the evil.
Every man, might through its aid, learn from an official source
the true value of any gold in his possession, and either spend
or exchange it for coin in the country. This would throw the
export of gold into the hands of large dealers who having no
inducement to smuggle equal to the risk, would export through
the lawful channel, paying the duty, which they in turn would
take care to levy on the Miner, by deducting it from the price paid.

14. An export duty might then be imposed with advantage and
be found easy and cheap of collection.

The other features of the Australian system of taxation on
Miners, might also be adopted and made applicable to the
circumstances of British Columbia; in which case the Licence
Fee on Miners, so objectionable on account of the expense, and
affrays produced in its collection would cease to be enforced.

15. I have only further to state in reference to the Abstract
of British Columbia Accounts, forwarded, that the Treasurer Captain
Gosset, has now the sole and entire arrangement of the Financial
Department over which I have hitherto had to maintain a rigid control.