Sargeaunt to Rogers (Permanent Under-Secretary)

Adverting to my letter of even date I have the honor to report
for the information of the Duke of Buckingham and Chandos on the
present state of the British Columbia account with this Office.

The amount of £2250 due to the Trustees of the Sinking Funds on
the 1st January has not been paid, nor has the further sum
 of £1125 likewise due on the 1st proximo.

The funds at the disposal of the Crown Agents are, the cash
balances at the Bank of England £745 and Bills which will mature
on the 15th June for £2500.

The amount overdue is therefore £3375, the amount available on
the 15th proximo will be £3245.

The very irregular manner in which the contributions due to the
Sinking Funds have been paid over to the Trustees, besides
involving a breach of faith to the Debenture Holders is open to
the further objection that the amount of these Sinking Funds is
seriously diminished by the loss of a portion of the compound interest.

The amount overdue might be met by discounting the Bills for
£2500 and a small advance from "General account," but the Crown
Agents hesitate recommending such a course as further funds will
be required in the month of July to pay interest.

The amount required to meet the interest due on the 1st &
15th July is £4200, when there will be a further sum due to
Sinking Funds of £3050.

It is true that some five or six weeks intervene between this
and that date, but if Bills should reach this country between
now and then, they will probably be at 30 or 60 days sight.

The Crown Agents would be glad to be informed whether under
these circumstances they are to pay over to the Trustees, the
amount due to the Sinking Funds since January & April last, and
 trust to further remittances for meeting the large amount
(£7250) due in July, or whether the funds now available should
be retained to meet so far as they would go, the July dividends.