Murdoch to Elliot (Assistant Under-Secretary)

I have to acknowledge your letter of 16th instant, with
one from Mr Dowsett representing the hardship to which Capt
Houghton, late of Her Majesty's Army, has been subjected, by
an unexpected alteration of the privileges in the acquisition
of Land accorded to Naval and Military Officers in British Columbia.

2. Mr Dowsett represents, in substance, that Capt
Houghton left the Army in July last with the bonâ fide intention
of settling in British Columbia—that at that time the only
regulations respecting Land to officers known in this Country
were those of March 1861—that those regulations promised a
remission of purchase money to Captains of £400 or £300
according to length of Service—that Captain Houghton left the
Army on the faith of obtaining certain advantages including of
course that remission "guaranteed by Her Majesty's Circulars"—but
that on arrival in the Colony he found that the remission
had been reduced 4/5ths—that the Governor refused him
redress on the ground that the Proclamation reducing the
remission was issued in British Columbia before Capt Houghton
left the Army—a fact of which Capt Houghton could not
possibly be aware, as the Circular from the Horse Guards in
which it was announced was not issued till 31st Augt
last. Mr Dowsett under these circumstances urges the
claim of Capt Houghton to receive the remission "promised" to him.

3. In regard to the alleged "guarantee" by Government of
the advantages offered in the Circulars issued by the Horse
Guards, I may point out, that those Circulars expressly state
that as the management of the Crown Lands has been transferred
to the Local Legislatures "Her Majesty's Government cannot
guarantee" the continuance of the Regulations. I do not, however,
lay stress upon this, because an officer about to leave the
Army has a clear right to expect that the inducements officially
held out to him by the Government of this Country to induce him
to settle in a Colony will be recognized and fulfilled by the
Government of the Colony. If this is not done it would be better
and fairer that the Home Government should decline to give any
official information on the subject, and should leave an Officer
to discover through other Channels the advantages offered to
Settlers by the respective Colonies.

4. At the first Settlement of British Columbia the upset
price of Land was £1 an Acre. That price was reduced by a
Proclamation dated the 19th January 1861 to 4s/2d an
Acre. On the 28th March 1861, a Proclamation was issued
granting remission in purchase money to Naval and Military
Settlers at the rate of from £600 to £500 for a Field Officer
and £400 to £300 for a Captain. This Proclamation was copied
from the Regulations in force in some of the
Australian Colonies, New Zealand &c without sufficient reference
to the difference in the upset price in those Colonies. The
effect in British Columbia was to give to Naval and Military
Settlers nearly 5 times as much land as was given them in
other Colonies. The extent of these grants was found
inconvenient and the Proclamation was, therefore, repealed, by
a Proclamation (No 2 of 1863) which fixed the extent of Land
to be granted at the same number of Acres as the Proclamation of
1861 allowed pounds of remission. This proclamation was sent
home by Governor Douglas in a despatch dated 13th May 1863—was
referred to us in your letter of 11th July—and is said to
have been published by the Horse Guards in a Circular of 31st August.

5. As Capt Houghton left England in July—and had previously
sent out the Stores required for his settlement in British Columbia,
there can be no doubt that he had made his arrangements to leave
the Army for the purpose of settling there, not only before he knew
of the change of the Regulations, but before that change was known
to anyone in this Country. There was nothing to lead him to expect
such a change, and he omitted no precaution apparently, which a
prudent man could be expected to take to ascertain on the best
authority the terms offered to Settlers of his description. Under
these circumstances to subject him to loss on account of a
Proclamation which, as far as he is concerned, must be regarded as
ex post facto, would, I think, be an injustice and a hardship. As
the Proclamation in question has the force of Law no alteration can
be made except by the issue of another Proclamation of equal
authority. But it appears to me that in order to relieve Capt Houghton and preserve the good faith of the Government in this matter,
the Governor of British Columbia should be directed to issue a
fresh Proclamation, exempting from the operation of the Proclamation
No 2 of 1863, any Officer who can show that he left the Army
with the intention of settling in British Columbia previously to
the Horse Guards Circular of 31st August last—and who is
prepared to depose that he was not aware at the time of leaving
the Army of the alteration in the privileges allowed to Officers.

6. It may almost be taken for granted that no other Officer
than Capt Houghton would be in a position to take advantage of such
a Proclamation.