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FURTHER PAPERS Relating to applications to the Dominion Government for advances under Act No. 4, of the… British Columbia. Legislative Assembly 1876

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 39 Vic. Further Papers relating to Finance. 647
FURTHER   PAPERS
Relating  to  applications to the Dominion Government for advances under Act
No. 4, of the Statutes of 1875.
By Command,
A. C. ELLIOTT,
Provincial Secretary.
Provincial Secretary's Office,
13./. April, 1876.
The Liel'J.Z7iant-Governor to the Secretary of State for Canada.
British Columbia, Government House,
(No. 11.) 3rd March, 1876.
Sir,—I have the honor to enclose herewith, at the request of my Ministers, for the
consideration of His Excellency the Governor-General, a cojiy of a Minute of my
Executive Council, and of the Statements and Eeturns therein referred to, setting forth
the financial position of this Province, and recommending that application be made to
the Government of Canada for an advance of $500,000, under the provisions of the
Statute of Canada, 37 Vic. chap. 17, to meet liabilities due or coming due on account of
past expenditures in public works.
In accordance with this advice I beg, therefore, to make application for such
advance of $500,000, for the purposes and on the conditions specified in this minute, and
further to request that as early an answer as possible may be returned- to the application, and if practicable by telegraph, so as to reach this Government before the 6th
April, to which day the House of Assembly stands adjourned.    I have, &c,
(Signed)       Joseph W. Trutch.
Copy of a Report of a Committee of the Honourable ihe Executive Council, approved by
His Excellency the Lieutenant-Governor on the 3rd day of March, 1876.
Upon a memorandum of the Honourable the Minister of Finance, calling attention
to the financial condition of the Province, as set forth in the Statements from his department of " Assets and Liabilities, 31st December, 1875," and of- the " Financial Position
1st January, 1876," the latter based in part on the Return made by the Chief Commissioner of Lands and Works of expenditures by that department in 1875, "including
amounts payable in 1876 on unfinished contracts," which Statements and Return were
published by yoir Excellency's command in the British Columbia Gazette of the 5th
February ultimo. The Minister of Finance remarks that of the liabilities of the Province
31st December last, tho sum of 8150,000 will be due and payable on the 1st July next to
the Dominion, under engagements to that effect entered into by your Excellency, as
expressed in your despatch of 29th October last, to the Honourable the Secretary of
State for'Canada. and its enclosures, and in other documents; the sum of $30,000 will
be due and payahle to Sir James Douglas on the 18th October next, with interest from
the 18th October last at 8 per centum per annum, for the like amount of money lent by
him to the Government of British Columbia, as security for which loan, Debentures
issued under the " British Columbia Loan Act, 1874," to the amount of $33,750 are held
by Sir James Douglas, on condition that if the $30,000 lent by him be not repaid with
interest on the 18th October next, as' before stated, these Debentures for $33,750 shall
be retained by him ; the sum of $52,850, with interest from 21st October last at the rate
of 8 per centum per annum, will be due and payable to the Bank of British Columbia on
the 1st May next, on account of advances made by that bank to the Government of
British Columbia to the amount of $52,850, as security for which the Bank holds Debentures, issued under the " British Colombia Loan Act, 1874," to the amount of $52,850
which Debentures the Bank is authorized to sell and realize, at whatever rates they may
obtain, on the 1st May next, provided the $52,850 advanced by them to this Government 648 Further Papers relating to Finance. 1876
be not repaid with interest on that day. The next two items of these liabilities, viz. :
$31,070 and $46,-360, were due on the 31st December last to the Bank of British Columbia,
on overdrawn current account, payable on demand ; and of these the first item, on Graving
Dock account, still remains due, with interest at the rate of 8 per cent, per annum, whilst
the latter, on general account, has been paid off since the beginning of this year. The
last item of these liabilities, viz. : $18,800, is due on account of Intestate Estates Deposit
Accounts, the whole of which is payable on demand.
It is clear, therefore, that all these liabilities set forth in this Statement were either
actually due on the 31st December last, or are such as must unavoidably be met and
satisfied in 1876 ; and as the available assets are shown to amount to only $18,886, there
remained a balance of $310,194 of liabilities over assets at the commencement of this
year, to meet which the only means in hand were the British Columbia Debentures
already-menjtioned, which are held as security by two creditors, and which are realisable
in the brie-case' tit 87J cents, ,and in the other at whatever rates may be obtained on sale.
For it is to be observed "that- the whole--0f,.the $300,000 of Debentures authorized
by the " British Columbia Loan Act, 1874','""ha\>e been issuej} at various times as
security for temporary advances to the Government, and ha'^y-w^th the exception of
the Debentures above mentioned amounting in the aggregate to $86,60U. beefi"deceived
back into the Treasury—the advances for the security of which they were pledged
having been repaid—and, having been duly cancelled, cannot be re-issued, so that the
" Loan Act of 1874 " is no further available beyond the amount of the Debentures for
$86,600, now held by creditors of the Government, and only on the conditions under
which they are so held.
As to the Statement of the Financial Position on 1st January last, the Minister of
Finance remarks that credit is taken therein for the sum of $210,000 as receivable from
the Dominion on account of Subsidy, that being about the estimated amount payable
by the Dominion in 1876, allowing for the reduction from the payment on this account
last year by the interest at 5 per cent, per annum on the advance of $189,150 to this
Government by the Dominion in May last. Credit is also taken for $120,000 of Local
Eevenue, being the same amount as was received from this source last year.
On the other hand the first item shown as necessary to be provided for is the balance of liabilities above specified, viz: $310,194. The next item is the aggregate amount,
viz: $163,476 36, coming due and payable in 1876 at various dates, on general public
works now actually under construction, as to which it appears from the Chief Commissioner of Lands and Works' Eeturn, that these various works were all under contract
on the 1st January, 1876; Knd the Minister of Finance has ascertained further that at
this present date some of these works are actually completed, many of them closely approaching completion, and the rest so far advanced under construction that they could
not be stopped now and the contractors legally satisfied without imposing greater burdens on the finances than will be occasioned by these works being carried out to completion. Details of the actual position of these various contracts are shown in tho
statement of the Lands and Works Department appended to the Minister of Finance's
memorandum. The remaining item on the debtor side of this statement of the financial
position on 1st January last is the sum of $99,558 on account of contracts to be completed this year on Graving Dock account, as to which it may bo observed that as one
of the contracts included in this sum, viz: that amounting to $59,479, for the construction of a coffer-dam, has not been commenced, it is perhaps competent for the Government to hold this contract in abeyance if such a course were desirable, but in view of
the fact that although in this exhibit of the position of the finances of the Province
provision must be made for the payment in the first instance at all events of the amounts
of these contracts on Graving Dock account from General Eevenue, such payments are
to be recouped from other special sources to which more particular allusion will be presently made, and that it therefore does not seem advisable to interfere with the progress of this very important work.
A review of this comparison of Estimated Eevenue for 1876, with the actual engagements entered into by the Government of British Columbia last year which must
be met in the current year, shows a balance of $243,228 36 to be provided for payments
then due or coming due in 1876 on account of expenditures actually disbursed before
the 1st January last, or which were contracted before that date to be paid within the
year 1876. If to this balance be added the cost of carrying on the Government of the
country at the same rate as last year, viz: $259,000, exclusive of Lands and Works ex- 39 Vie. Further Papers relating to Finance. 649
penditure and an estimated minimum sum of $100,000 for the necessary repairs and
maintenance of the public buildings and roads throughout the Province, it will be found
that without contemplating the construction of a single new work, a sum of $602,228 36
must be provided for the service of 1876, from sources other than ordinary revenue.
It has been shown that debentures under the British Columbia Loan Act, 1874, to
the amount of $86,600 and no more, are still extant; but these debentures are so placed
that it will be evidently most advisable to redeem and cancel them, and the amount of
these extant debentures is therefore, with this view, properly included in the deficit to
be made up in the present year.
But as under existing arrangements between the Imperial and Provincial Governments, as also between the Dominion and Provincial Governments and the special legislation on this subject by Canada and British Columbia, it may be relied upon that the
largest portion, if not the whole of the amount, viz: $129,777 86 already expended or
coming due this year on account of the Graving Dock at Esquimalt will be reimbursed
to the Province, it is proper that the estimate of the sum required to be provided to
meet the liabilities and necessary expenses of the Province for the year 1876, should be
reduced proportion ably, and this required sum may therefore be taken at about $500,000,
but certainly at no less an amount.
The Minister of Finance observes that this sum therefore must be provided either
by means of a loan authorized by the Legislature in the coming Session, or by obtaining
advances from the Government of Canada under the provisions of Sec. 2, Chap. 17,
37th Vic. of the Statutes of Canada, and of Sec. 2 of Act No. 4, 1875 of the Statutes of
British Columbia; and as it would be clearly most convenient and advantageous to the
interests of the Province that the required funds should be obtained from the latter
source, he recommends that application be at once made to the Dominion Government
for advances to the aggregate amount of $500,000 to be paid to the order of this Government in such sums and at such times as are requisite to meet the several liabilities above
stated, as they become due and payable.
The Committee of Council concur in the recommendation of the Minister of Finance. They fully expect indeed to take occasion after more mature investigation of
the past expenditure in the administration of the affairs of the Province than they have
yet had opportunity ot making, to submit for "Your Excellency's consideration certain
economies by which the cost ol the public service may be reduced without impairing its
efficiency, yet they cannot hope that such reduction can be so considerable in amount as
to materially affect the actual deficit for the current year, nor do they consider that it
would be desirable in the present condition of the Province to increase the aggregate
amount of local taxation to such an extent as would produce such a result. Their aim
however will be to otter such advice as may secure that the current expenses of the
Province shall not exceed the ordinary revenue.
They would not suggest to Tour Excellency to ask from the Dominion advances
under the Statute of Canada above referred to' by the Minister of Finance for prospective
expenditure upon public works, unless such works were either absolutely necessary or
of a character giving full assurance of speedy and amply profitable return; yet they
cannot hesitate to advise that the sum shown by tho Minister of Finance to be absolutely requisite to relieve the Province of the liabilities and embarrassments resulting
from expenditures on public works already incurred or now accruing, should be at once
applied for from Canada; for it is evident that this sum may be obtained more advantageously to this Province from that source, than by borrowing money under authority of
an Act of the Legislature, which is the only alternative recourse. Nor can the Committee doubt that the Government of Canada will readily grant such application, as by
its so doing this Province can be provided with the means of discharging its liabilities
without any inconvenience, a burden as it seems to the Committee, being imposed
on the Canadian Exchequer, and on terms materially more advantageous to the financial interests of British Columbia than she can expect to obtain under a Loan Act.
The Committee therefore advise Your Excellency to apply to the Government of
Canada for an advance of $500,000 for the purposes and on the conditions before specified by the Minister of Finance, and, should this report be approved, they respectfully
request that you will be pleased to transmit to the Secretary of State a copy thereof,
and of tho several statements of accounts therein referred to, exhibiting as they do fully
and without any reservation, as far as the Committee are aware, the actual financial
position of the Province, and to earnestly solicit that a reply to such application may be 650 Further Papers"relating to Finance. 1876
returned as soon as possible and, if practicable, by telegraph, so that this Government
may be made aware of the conclusions of the Government of Canada on this matter
before the meeting of the Legislature of the Province on the 6th April next.
Certified,
(Signed)       T. Basil Humphreys,
Clerk of the Executive Council.
The Lieutenant-Governor to the Secretary of State for  Canada.
British Columbia, Government House,
No. 13. 27th March, 1876.
Sir,—I have the honour to enclose herewith a copy of a Minute of my Executive
Council requesting me to telegraph to the Government of the Dominion the desire of
this Government to be apprised by Telegraph as soon as possible whether the application for an advance of $500,000 to British Columbia, which was conveyed in my
Despatch to you on the 3rd instant will be granted.
I also enclose a transcript of the Telegram which I have this day despatched to
you in accordance with the request of my Ministers expressed in this Minute.
I have, &c.,
(Signed)       Joseph W. Trutoh.
Copy ofa Report of a Committee of the Honourable the Executive Council, approved by
His Excellency the Lieutenant-Governor on the llth day of March, 1876.
On a memorandum from the Hon. the Provincial Secretary, dated 27th March 1876,
reporting that no answer had as yet been received to your Excellency's Despatch to
the Dominion Government of the 3rd March instant embodying a request from the
Provincial Government for an advance of $500,000, and recommending that Your
Excellency will be pleased to telegraph to the said Government, enquiring if the
Despatch in question has been received, and if the advance asked for will be madert
The Committee advise that tho recommendation be approved.
Certified,
(Signed)        T. Basil Humphreys,
Clerk of the Executive Council.
[Telegram.]
The Lieutenant-Governor to the Secretary of State for Canada.
Victoria, B. C, 27th March, 1876.
Hon. R. W- Scott, Secretary of State, Ottawa.
My Ministers request me to express urgent desire for telegraphic reply to application in my Despatch, 3rd inst. Very important for this Government to ascertain,
before House meets on 6th April, whether that application will be granted.
(Signed)       J. W. Trutch.
[Telegram.]
The Secretary of State to the Lieutenant-Governor.
Ottawa, Ont., April llth, 1876.
Lieutenant- Governor Trutch:
The Dominion Government have decided that the one hundred and fifty thousand
dollars previously charged against subsidy will be advanced on debt account.
(Signed)       E. W. Scott,
Secretary of State. 39 Vie. Further Papers relating to Finance. 65i
APPROXIMATE   STATEMENT
OF
AMOUNTS   REQUIRED   ON   ACCOUNT
OF
UNFINISHED  CONTRACTS. 652
Further Papers relating to Finance.
1876
APPROXIMATE   STATEMENT of Amounts required on account ot
Liability.
Amount paid
Description of Work.
Amount due
in 1875,
but unpaid.
Amount unpaid
1st Jan. 1876,
coming due.
Total due on
1st Jan.  1876,
and coming due
in 1876.
since l^t Jan.
1876.
Surveys.
Throughout the Province	
236 00
2,152 37
2,388 37
Works and Buildings.
875 00
31,974 00
7.500 00
875 00
32,053 70
7,500 00
Lunatic Asylum, New Westminster	
Public School, Victoria	
79 70
79 70
40,349 00
40,428  70
Roads, Streets, and Bridges.
Victoria District	
700 00
924 50
4,132  50
4,175  00
3,420 00
25,991  00
51,471  00
725  00
28,850 00
700 00
924 50
4,402  79
4,175  00
3,420 00
25,991  00
51,471  00
725  00
28,850 00
Esquimalt do            	
300 00
Cowichan do	
270 29
1,011   29
Nanaimo    do	
Comox       do                  „ .„	
1,162  50
Yale District	
2,250  00
Lillooet District	
725  00
Cariboo      do	
7,000 00
270 29
120,389 00
120,650  29
12,448  79
Graving Dock.
Esquimalt .
15,635 00
83,923 00
99,558  00
12,782  25
required
do.
do.
do.
Recapitulation.
-
Do.
Do.
12,448  79
Do.
12,782 25
$25,231  04
March 3rd, 1876. 39 Vie.
Further Papers relating to Finance.
658
unfinished Contracts, showing dates at which Payments will fall due.
Amount due
at date of this
statement.
Amount due
in
March.
Amount due
in
April.
Amount "due
in
May.
Amount due
in
June.
Amount due
in
My.
Amount due
in
August.
Total.
2,388 37
$ 2,388 37
875 00
875 00
797 70
2,500 00
2,000 00
6,000 00
5,500 00 -
6,000 00
10,000  00
6,774 00
32,053  70
7,500 00
1,672 70
4,500  00
11,500 00
6,000 00
10,000 00
6,774 00
40,428 70
700 00
700 00
267 50
100 00
2,887 50
257  00
475 00
924 50
29 00
4,402  79
1,500 00
1,500  00
9,300 00
12,351  00
1,500 00
1,920 00
7,928 50
7,470 00
1,175 00
4,175 00
3,420 00
4,350  00
2,250 00
3,250 00
5,500 00
25,991  00
1,750 00
10,000 00
9,900 00
51,471  00
725  00
11,750 00
1,500 00
2,975  00
* 5,625  00
28,850  00
14,496 50
11,087  50
9,482 00
27,626 00
18,818 50
11,175  00
15,525  00
120,659 29
392 25
6,562 25
3,244 25
15,262 25
15,262 25
7,845 75
r 1,311 25+
111,895 50J
99,558 00
2,388 37
6,000 00
27,626 00
15,262 25
2,388 37
40,428 70
120,659 29
99,558 00
1,672 70
14,496 50
392  25
4,500  00
11,087 50
6,562  25
11,500 00
9,482 00
28,244 25
10,000 00
18,818 50
15,262  25
6,774 00
11,175 00
7,845  75
15,525 00
13,206 75
$16,561 45
$22,149  75
$49,226  25
$51,276 62
$44,080  75
$25,794 75
$28,731  75
$263,034 36
* Fifteen per cent, of Contract price of Quesnelle Bidge, retained as security for maintenance for Twelve Months from completion.
I This amount comprises 5 months' storage of Cement, and salary of Resident Engineer to end of 1876.
Twenty per cent, of Cofferdam Contract retained as security for maintenance for one year.
FORBES GEO. VERNON,
Chief Commissioner of handt and Werki.
54 654 Further Papers relating to Finance. 1876
A FURTHER PAPER
Relating to applications to the Dominion Government for advances, under Act ~No.
4, of the Statutes of 1875 (accidentally omitted from the papers dated 13th
April, and presented to the House on the 15th April, 1876).
By  Command.
A. C. ELLIOTT,
Provincial Secretary's Office, Provincial Secretary.
26th April, 1876.
[Telegram.]
The Secretary of State for Canada to the Lieutenant-Governor.
Ottawa, Ontario,
March 30th, 1876.
Lieutenant. Governor Trutch.
Telegram received.    The subject is under the consideration of the Government.
(Signed)        E. W. Scott,
Secretary of State. 39 Vie. Further Papers relating to Finance. 655
PAPERS
Relating to the non-payment, in full, of Dominion Subsidy on 1st January, 1876.
By Command.
A. C. ELLIOTT,
Provincial Secretary.
Provincial Secretary's Office,
26th April, 1876.
The Auditor-General of Canada to the Provincial Secretary.
Ottawa, 31st December, 1875.
Sir,—I am instructed by the Auditor-General to forward the enclosed cheque, in your
favour, for eighty thousand dollars ($80,000) on account of Subsidy due the Province of
British Columbia.
I have, &c,
(Signed)       Fred. Toller,
For Auditor-General.
Telegram.
The Auditor-General of Canada to the Provincial Secretary.
Ottawa, Ont.,
February 4th. 1876.
Hon. J. Ash.
Order for balance of subsidy goes by mail.    I write.    Have telegraphed Bank.
(Signed)       J. Langton.
The Auditor-General of Canada io the  Provincial Secretary.
Ottawa, February, 4th, 1876.
Sir,—I am instructed to send you a cheque for the balance of your Subsidy accrued
January 1st, and to inform you that when instructions were given to make only a
partial payment at that date, it was under a misapprehension of the effect of the Order
in Council of December 8th, which modified the original Order in Council of October
18th, under which the advance was made. The second Order in Council directed, in
effect, that no deduction should be made from the January Subsidy, but that it was only
to take effect upon that payable in July and January next.
I am directed to advise you that this one hundred and fifty thousand dollars was
distinctly refused as an advance against debt, but was granted as an advance against
the Subsidies hereafter payable.
I append a statement of the account, showing how the sum now paid is arrived at.
I have, &c,
(Signed)       John Langton. 656
Further Papers relating to Finance.
1876
Subsidy Accrued, 1875-6.
-o-
1875.
July 1st,  Balance from 1874-5  $ 2,289 85
,,      ,,     Cash on account of Subsidy  110,230 80
Dec. 31st, Interest   to  date  on  advance
of $150,000   1,458 90
Jan., 1876, Cash on account of Subsidy.. 80,000 00
Balance  25,791 28
1875.
July 1st, By half-year's Subsidy$91,500 00
By   Interest   on   $841,408 61,
being balance of debt Dec.
1874 $21,035 21
Less interest to date
advance    of
Balance as above  $25,791 28
Interest to February 4th         148 36
Now remitted  $25,939 64
19,770 83
$189,150 00 $    569 91
-$20,465,30
1876. — $111,965 30
Jan.1st, By half-year's Snbsidy$91,500 00
By  Interest   on   $652,221  24,
being balance of debt  July
1875 $16,305 53
 $107,805 23
$219,770 83

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