No. 73, Legislative

I have the honour to transmit herewith, four Acts intitled as
follows, vizt—

1. "The Alien Act 1861."

2. "An Act for the Confirmation of the Titles of Aliens to
Real Estate 1861."

3. "An Act to Enable Aliens to hold Real Estate 1861."

4. "The Vancouver Island Civil Procedure Act 1861."

2. The provisions of the first three Acts defining the position of
aliens in the Colony of Vancouver Island, are not materially
different from the Alien Act approved by Her Majesty's Government
and now in force in the Colony of British Columbia; they are also in
accordance with the instructions received in Secretary Sir E. Lytton's Despatch No 20 of the 11th of February 1859; I therefore
thought it incumbent upon me to give Her Majesty's Assent to them
without delay, in order to quiet the public mind and to remove a
mischievous feeling of distrust which had been rapidly gathering
strength with respect to the rights of aliens in this Colony.

3. I enclose a report from the Attorney General on the character and
object of these Acts; and I would also inform Your Grace that many
reasons of sound policy render their immediate passage of vital
importance to the Colony.

4. A great deal of capital has been invested by aliens in the
purchase of land in and about Victoria, and it was generally believed
in consequence of an official announcement issued in 1858, declaring
the legal position of aliens, that those persons were entitled to hold
land for three years only, unless then declared to be British
subjects; consequently most of them were preparing to sell their
interest within the present year, and to withdraw from the Colony,
though, otherwise, if secured in their rights, they did not desire to
sell their property.

5. I may also state that there is reason to believe that the attention
of many Capitalists, especially among the British, French and German
residents of San Francisco, is now being directed to this place; the
present political troubles in the United States, a prospect of
increased taxation, and the present high prices of Real Estate in San
Francisco, all tending to direct enquiry towards this point, as a
favourable one in which to make investments. The notification then,
at this time, that all restrictions on aliens holding property in this
Colony, are removed, will doubtless have a most beneficial effect.

6. I observe that the Government of Canada, influenced no doubt by
the same motives, have lately offered very liberal bounties of land
and other inducements to those persons who are being driven across
the borders by the troubles in the United States.

7. One very disastrous effect produced by uncertainty in regard to
alien titles, is the check it gives to improvement. An alien may be
willing to hold a piece of land with the prospect of its increasing
in value soon, but he will not, with an uncertain tenure, invest
capital in the erection of substantial buildings, or other permanent
improvements. Another evil resulting from that uncertainty is that
the alien does not identify himself with the interests of the
country, nor actively contribute towards its sure and healthy
development. He may perhaps aid in creating a speculative demand in
order to sell his property to advantage, but he does not care to
assist plans which require years to mature, when he may be called on
any time to part with property which he holds only by sufferance.

8. There are many other points which I might allude to in connection
with the subject, but most of them will doubtless occur to Your Grace.

9. As there still exists a feeling of distrust and uncertainty as to
whether these Acts will meet with Her Majesty's approval, I have to
beg the favour of Your Grace's early reply to this Communication, in
order that the question may be set at rest.