No. 1

I have to acknowledge the receipt of your despatch of the 2nd
September last No. 4 referring to the amount of salary to be assigned to
you as Governor of British Columbia and enquiring at what rate Mr.
Hankin should be paid during the period he administered the Government
between the death of Mr. Seymour and your own assumption of the
Government.

It appears from your despatch that Mr. Seymour had whilst he held
Office drawn a sum of £1,000 from the Crown Fund in addition to the
£4,000 assigned by local Act to the Governor together with his
travelling expenses.

I have to inform you that Mr. Seymour never received any official
authority to draw this £1,000 from the Crown Fund, nor had that step
been submitted either officially or unofficially to the Lords
Commissoners of the Treasury, whose concurrence was requisite for it.

Under these circumstances and in the existing state of the finances
of British Columbia I cannot sanction the payment of salary at a greater
rate than £2,000 to Mr. Hankin during his Administration of the
Government and £4000 to yourself. But I am of opinion that any motion
that may be made for a reduction of this Salary below that sum may be
met by pointing out to the Council that a reduction of the salary has
practically been effected by discontinuing the payment of the £1000
hitherto paid to Mr. Seymour from the Crown Fund.

I request that you will inform me what amount has been drawn from
the Crown Fund on this account and up to what period the accounts of
that fund have been sent home for Audit.