No. 8

Having called upon the Crown Agents for a Statement of the present
position of the Accounts of the governments of British Columbia and
Vancouver Island, I transmit to you a copy of that statement for your
information. It appears that the Account of Vancouver is overpaid to
the amount of £510, and that in July next a sum of £2000 will be
required to pay Interest and sinking Fund on the Loan of £40,000.

The Account for British Columbia exhibits a present deficit of
£6,199, besides which the sum of £6,250 will be required in July next to
pay interest and sinking Fund on the two Loans of £50,000.

I have also obtained from the Crown Agents a Copy of they letter of
the 22nd Ultimo, bringing the state of the accounts within your notice.

I must draw your serious attention to these facts. The Government
of British Columbia cannot be permitted to continue drawing out of the
hands of the Crown Agents funds which belong to other Colonies, and
unless it duly provides for its obligations in respect of its Public
Loans, it will not only bring discredit on itself, but depreciate the
securities of all the other British Colonies. I rely upon you therefore
not to fail to remit sufficient funds to discharge the whole of the
existing debt to the Crown Agents, and to provide for the accruing
liabilities in respect of the Public Loans. These are and must be
considered the first claims of all upon the Public Revenue, and if they
cannot be provided for otherwise, it will be entitled to priority of
payment over even the Official Salaries, except those only actually
necessary to the collection of the Revenues.