No. 58

The situation of Treasurer of Vancouver Island necessarily
ceased to exist when the Colony was merged into that of British
Columbia. I had, when in England, recommended to Your Lordship
that Mr Franks, the Treasurer of the continental portion of
the Colony should relieved from his duties and Mr Watson
appointed Treasurer of the United Colony. You were pleased
generally to assent.

2. On my return to the Colony however, I found the financial
embarrassment much greater than I anticipated and also that the
light duties of the office of Treasurer could be performed without
trouble or increase of pay by the Collector of Customs.

3. The late Assembly of Vancouver Island having refused to
grant any remuneration for a clerk to the Treasurer the work of that
Department was much in arrear at the time of Union and the Revenue
from direct taxation suffered largely in consequence of these
arrears. I therefore offered to continue Mr Watson in charge of
the Treasury Department
 at Victoria with the same Salary as
heretofore receiving and disbursing money as sub accountant. I
promised at the same time to consider his claims to the appointment
of Treasurer in the event of that office being continued. Mr
Watson replied,

I regret that I should be called upon to discharge duties of
an inferior position of trust to that which I have so long held
in the Colony. I do not object to perform those duties if
necessary, simply, as an interim arrangement for the convenience
of the Government but it must be under a distinct Official
Guarantee that the position which I now hold under Her Magesty's
Commission will be fully recognized under the contemplated alteration.

Mr Watson has lately addressed another letter to the Colonial
Secretary in which he requests that I will

will make such arrangements as will relieve me from the
anomalous position in which solely for the convenience of the
Public Service I have placed myself.

4. I regret Mr Watson's disinclination to continue in an
appointment of equal pecuniary value to the one recently held by
him. While holding a high opinion of Mr Watson as an
accountant I do not consider his services as an executive officer
sufficiently valuable to justify me in continuing the appointment
of Treasurer merely with a view to retaining Mr Watson in the
Colony. I therefore have offered him, for himself, wife and
family a free passage to England and full salary for six months.
I have further promised to place his claims for reemployment
before your Lordship. Mr Watson was for some time accountant
in the Bank of British North America at Victoria, and was induced
by Sir James Douglas to relinquish that employment for the
appointment of Treasurer of Vancouver Island. He has now been
four years in the Government Service and I can confidently
recommend him as a Gentleman of strict integrity—very valuable
in any financial matters, but on the other hand I ought to state
that his information on matters beyond the scope of his present
department is not very extensive.