No. 67

I have the honor to acknowledge the receipt of your despatch
No. 35 of 7th September, transmitting Statement from the War
Department relative to the advances made from the Colonial Treasury
to Colonel Moody on account of the Pay and Subsistence of the
Detachment of the Royal Engineers recently employed in this Colony.

2. I regret much that Earl de Grey's letter of the 29th
January last, addressed to the Governor of British Columbia, should
have remained unanswered. It must have been received by my
Predecessor previous to my arrival, and has never been brought
under my notice.

3. As regards the differences between the claims and credits
as shown in the account enclosed in Your despatch, I would observe,
that the statement in question does not include the disbursements
of Colonel Moody subsequent to March 1863, nor are the entire
charges made to that Officer charged against him on the other
side of the Account.

4. The enclosed statement prepared in the Audit Office of
this Colony exhibits, I believe, the true position of the
Regimental Pay Account, down to the time when the Detachment
departed for England. A balance of two thousand nine hundred
and sixty seven pounds 10s/6d (£2,967.10.6) is there shown to be
due to the Colony. Perhaps you would be good enough to direct that
amount to be paid to the Agents General of Crown Colonies to the Credit
of British Columbia.