No. 24

I have had the honor of receiving your Despatch No 102 of
the 17th February last, in reply to mine of the 14th November 1861, upon the subject of issuing from the Government Assay Office at New Westminster gold pieces of the value of the 10 and 20 Dollar
American Coins, to avoid a recurrence of the inconvenience and loss
which was last year sustained through the large amount of Bullion
in the Market, and the small supply of Coins.

2. I thank Your Grace much for the valuable paper you enclose
to me conveying the views of the Lords of the Treasury upon this
subject, & I am gratified to find that in all the steps I have as
yet taken in this matter I have, in anticipation, entirely followed
the course suggested by their Lordships.

3. The requisite apparatus and Dies have been procured from
San Francisco, and I forward herewith for Your Grace's inspection
two specimens (in silver) of the gold pieces we propose to issue.
Should any further machinery be required, I shall not hesitate to
avail myself of Your Grace's suggestion to make application to
Your Department, if it shall appear that we cannot with equal
advantage supply ourselves from San Francisco.

4. I do not propose to issue the Pieces until the produce of
this years mining Season commences to arrive. The Coin at present
in circulation will then soon become absorbed, and the conversion
of Bullion into Coin at the least rate of discount will I hope be
then felt as such a boon, that the Government pieces will immediately
obtain free currency without declaring them to be Legal Tender.

5. I am thankful for the suggestion that the circulation of the
proposed pieces should be protected by enacting Penalties for the
fabrication of the Assay Mark, or for attempting to pass them after
they have been clipped or otherwise wilfully deteriorated, and I
will not fail to give effect to it so soon as requisite.