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RETURN To an Address of the Legislative Assembly for copies of all Orders in Council, or other documents… British Columbia. Legislative Assembly 1892

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 55 Vict. Loan of 1891. 601
RETURN
To an Address of the Legislative Assembly for copies of all Orders in Council, or other
documents or agreements, issued, entered into, or made, under the authority of
the "Inscribed Stock Act, 1891," or the "British Columbia Loan Act, 1891,"
together with copies of all reports, correspondence, and telegrams received or sent
by any member, or agent, or officer of the Government, in connection with the
above Acts, or any transactions contemplated or accomplished in connection
therewith, prior or subsequent to the passage by this Legislature of the above-
mentioned Statutes, or in connection with any loan contemplated since the year
1889.
By Command.
J. H. TURNER,
Minister of Finance.
Treasury, 8th March, 189%.
ORDERS IN COUNCIL.
Copy of ct Report of a Committee of the Honourable the Executive Council, approved by Pis
Honour the Lieutenant-Governor on the 1st day of August, 1891.
On a memorandum from the Honourable the Minister of Finance dated the 21st day of
July, 1891, stating that it is advisable that one of the Ministers should at once proceed to
England to ascertain and report as to the prospects for floating the loan under the Act passed
during the last session of the Legislative Assembly, and intituled " An Act to provide Seven
Hundred Thousand Pounds for consolidating the Public Debt and for other purposes."
The Committee advise that the Honourable the Minister of Finance be authorized to
proceed to England accordingly.
Certified,
(Signed)        A. Campbell Reddie,
Deputy Clerk Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 10th day of August, 1891.
On a memorandum from the Honourable the Attorney-General, dated 8th August, 1891,
referring to the Order in Council approved on the 1st day of August, instant, whereby the
Honourable the Minister of Finance was authorized to proceed to England to ascertain and to
report as to the prospects for floating the loan under the Act passed during the late session of
the Legislative Assembly, and intituled "An Act to provide Seven Hundred Thousand Pounds
for consolidating the Public Debt and for other purposes," and reporting that the Honourable
the Minister of Finance had, subject to the approval of the Lieutenant-Governor in Council,
concluded arrangements in London for the issue of a loan of £200,000 inscribed stock at three
per cent. (3 %) per annum, and a sinking fund of one per cent. (1 %) per annum, redeemable
as to the principal on the 1st of July, 1941, the principal and the interest to be payable at 662 Loan op 1891. 1892
Messrs. Glyn, Mills, Currie & Co., Bankers, London; that the issue will be at the rate of not
less than eighty-eight (88) cents on the dollar, netting the Province not less than eighty-four
and three-eighths (84f) per cent. ; and recommending that the action of the Honourable the
Minister of Finance in this matter be endorsed by His Honour the Lieutenant-Governor in
Council.
The Minister also recommends that the Honourable John Herbert Turner be authorized,
under the seal of the Province, to cause the declaration required by section 1 of the " Colonial
Stock Act, 1877," (Imperial) to be left with the Commissioners of Inland Revenue.
The Committee advise approval of the recommendations.
Certified,
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 14-th day of August, 1891.
On a memorandum from the Honourable the Attorney-General, dated the 14th day of
August, 1891, recommending that for the purpose of the issuing of inscribed stock to the
amount of two hundred thousand pounds, under the Order in Council of even date herewith,
there be set aside to cover bank charges, commissions, brokerage, exchange, and all other outgoings attendant on such loan, an amount not to exceed three and five-eighths per cent, of the
stock to be inscribed for the purposes of such loan, and that such stock be not sold for less than
eighty-six per cent.
The Committee advise approval.
Certified,
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 14th day of August, 1891.
On a memorandum from the Honourable the Attorney-General, dated the 14th day of
August, A.D. 1891, recommending that under the provisions of the "Inscribed Stock Act,
1891," and the "Loan Act, 1891," the Lieutenant-Governor in Council do, in the form of
inscribed or registered stock, raise such sum of money as can be realized by the issue and sale
of two hundred thousand pounds inscribed or registered stock, subject to the terms hereinafter
contained, viz.: That the stock shall be issued in the City of London, as soon as conveniently
may be after the date of the approval of this minute ; shall be in the full amount of two
hundred thousand pounds sterling, redeemable at par on the first day of July, one thousand
nine hundred and forty-one, and carrying interest in the meantime at the rate of three per
cent, per annum, payable half-yearly, on the first days of January and July in each year hereafter, the principal and interest to be payable and paid at Messrs. Glyn, Mills & Co., bankers,
London; and also recommending that the Honourable the Minister of Finance be authorized
and directed to appropriate yearly out of the general revenue of the Province an amount equal
to one per cent, upon the amount of the said stock so to be issued as aforesaid, for the creation
and maintenance of a sinking fund towards the payment of the said stock, and further recommending that the moneys so to be appropriated from time to time for the creation and maintenance of such sinking fund be from time to time invested, together with the accumulations
thereof, in such manner as may be ordered by the Lieutenant-Governor in Council; and further
recommending that the Honourable John Herbert Turner be authorized, under the seal of the
Province, to cause the declaration required by section one of the "Colonial Stock Act, 1877,"
(Imperial) to be left with the Commissioners of Inland Revenue, and that the said Honourable
John Herbert Turner be further authorized to do all such other acts and things as may be
necessary for carrying this minute (if approved) into effect.
The Committee advise approval.
Certified,
(Signed)       A. Campbell Reddie,
Deputy Clerk, Executive Council. 55 Vict. Loan of 1891. 60$
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 14th day of August, 1891.
On a memorandum from the Honourable the Attorney-General, dated the 14th day of
August, A. D. 1891, reporting that since the Order in Council, approved by His Honour the
Lieutenant-Governor on the 10th August, instant, relative to the preferred loan of two hundred
thousand pounds, advices have been received from England shewing that the loan cannot be
floated at eighty-eight per cent., but that a syndicate is prepared to guarantee the loan at
eighty-six per cent., and that leading financial authorities are of opinion that the time for
issuing the loan is now favourable, and that better terms than eighty-six are not likely to be
obtained, and recommending that the said Order in Council, approved as aforesaid, on the 10th
August, be rescinded.
The Committee advise approval. Certified.
(Signed)       A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 21st day of August, 1891.
The Committee in Council recommend that the Trustees appointed under the Loan Acts
of 1877 and 1887, namely Sir Charles Tupper and Hugh Hughes, Esquire, be authorized to
dispose of such investments of the sinking funds of the respective loans as may to them seem
advisable, which, together with any moneys in their hands on account of the sinking funds of
the loans aforesaid, may be re-invested in British Columbia three per cent, stock issued under
the "Inscribed Stock Act, 1891," and the "Loan Act, 1891."
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Sir Charles Tupper and Mr. Hugh Hughes were made acquainted with the terms of the
above order on the 21st August, 1891, and acknowledged receipt of the same on the 19th and
16th of September, respectively.
Copy of a  Report  of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 10th day of September, 1891.
On a memorandum dated September 7th, 1891, from the Hon. the Acting Minister of
Finance, reporting that the Loan Act of 1891 contains no provision for authority of payment
of expenses contingent on the floating of the loan ; and that it is deemed expedient that all
expenses connected therewith should be shown in a separate account under the service
" L—Public Debt." That no provision has been made in the estimates for such payments, and
recommending that special warrants issue from time to time for such sums as may be required
to cover the expenses incident thereto.
The Committee advise approval. Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 15th day of September, 1891.
On a memorandum from the Honourable the Acting Minister of Finance, dated the 14th
day of September, 1891, reporting that he has had under consideration an Order in Council
approved by His Honour the Lieutenant-Governor in Council on the 14th day of August,
1891, whereby the Honourable the Minister of Finance was authorized and directed to appropriate yearly out of the general revenue of the Province an amount equal to 1 per cent,  upon 604 Loan of 1891. 1892
the amount of two hundred thousand pounds inscribed or registered stock so to be issued as
therein mentioned, for the creation and maintenance of a sinking fund towards the payment of
the said stock, and whereby it was, among other things, ordered that the moneys so to be
appropriated from time to time for the creation and maintenance of such sinking fund be from
time to time invested, together with the accumulations thereof, in such manner "as might be
ordered by the Lieutenant-Governor in Council, and another Order in Council approved on the
21st day of August, 1891, whereby Sir Charles Tupper and Hugh Hughes, Esq., the trustees
appointed under the "Loan Act of 1877," and the "Loan Act of 1887," were authorized to
dispose of such investments of the sinking funds of the respective loans as might to them seem
advisable, and to re-invest in British Columbia three per cent, stock issued under the
" Inscribed Stock Act, 1891," and the " Loan Act, 1891," and also reporting that it is advisable
to appoint trustees under the "Loan Act, 1891," and recommending that the said Sir Charles
Tupper and Hugh Hughes, Esq., be appointed trustees under the "Loan Act, 1891," and be
authorized, in compliance with section 5 of the said Act, to invest from time to time the yearly
sums so appropriated as aforesaid for the creation of a sinking fund under the said Act, in
three per cent, inscribed British Columbia stock ; and be also authorized from time to time to
invest in the said three per cent, inscribed British Columbia stock, as well any moneys which
may hereafter come to their hands for account of the sinking funds of the loans of 1877 and
1887 as the proceeds to arise from the calling in and disposal of investments already made of
the sinking funds under the said Acts of 1877 and 1887 respectively.
The Committee advise approval.
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Mr. Hugh Hughes and Sir Charles Tupper were severally informed of their appointments
as trustees on the 17th September, 1891, and ackowledged receipt of the notification on the
10th and 9th of October, respectively.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 16th day of November, 1891.
The Committee in Council recommend that the trustees under the Loan Acts, 1877
and 1887, namely, the Hon. Charles Tupper and Hugh Hughes, Esq., be directed to dispose of
such investments of the sinking funds of the respective loans, not exceeding ten thousand
pounds stg. (£10,000), as required for re-investment in the B. C. three per cents, and with the
proceeds and any moneys in their hands in respect of the sinking funds of the loans aforesaid,
to re-invest the same through Messrs. Woolston & Beeton in B. C. three per cent, inscribed
stock, under the " Inscribed Stock Act, 1891," and the "Loan Act, 1891."
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the Executive Council, approved by His
Honour the Lieutenant-Governor on the 27th day of November, 1891.
On a memorandum, dated 24th November, 1891, from the Honourable the Minister of
Finance, referring to section 7 of the " Inscribed Stock Act, 1891," which authorizes the
Lieutenant-Governor in Council from time to time to enter into such agreement with a Bank
in London or elsewhere, as to him may seem fit, to provide for, among others, the following
matters, viz. :—
For the inscription of stock in the books of such Bank;
For regulating transfers on stock ;
For paying interest on stock ;
For issuing stock certificates to bearer, and, as often as occasion shall require, re-issuing
or re-inscribing stock certificates; 55 Vict. Loan of 1891. 605
And reporting that he had made arrangements with Messrs. Glyn, Mills, Currie & Co.,
Bankers, London, for the effecting of the said matters ;
That the said Bank was prepared to inscribe, transfer, and pay interest on, all stock of
the Province in connection with the loan of 1891, to an extent not exceeding £1,000,000
sterling stock, for a commission of four hundred pounds sterling per annum, payable half-yearly
on the 31st December, and the 30th June;
That the Bank undertook to pay all expenses incident thereto, excepting the cost of
advertisements, and of revenue stamps;
That the arrangement would continue in force for a term not exceeding seven years, pursuant to section 7 of the said Act, to date from the 1st of July, 1891.
The Committee of Council having had the agreement in question under consideration,
concur in the action of the Honourable the Minister of Finance, and advise that the agreement
be sanctioned.
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
Copy of a Report of a Committee of the Honourable the  Executive  Council,  approved by His
Honour the Lieutenant-Governor on the 27th day of November, 1891.
On a memorandum dated the 23rd November, 1891, from the Honourable the Minister of
Finance, reporting that the interest and sinking fund for the half-year on the £200,000 recently
negotiated under the "Loan Act, 1891," will be due in London on the 31st December next,
viz. :—Interest, £3,000 = $14,550.    Sinking Fund, £1,000 = $4,850.
That, subject to the provisions of section 7 of the "Inscribed Stock Act, 1891," an
arrangement has been made with Messrs. Glyn, Mills, Currie & Co., Bankers, London, for
inscribing, paying interest and transferring stock, as provided in sub-sections 1, 3 and 4, of the
section referred to, to the extent (if required) of £1,000,000, for which services the sum agreed
to is four hundred (£400) pounds per annum, payable half-yearly ; and that the first payment
falls due on the 31st of December next.
That no provision for these respective sums has been made in the Estimates, and recommending that authority be granted by warrant, under the Acts referred to, to meet the
payment.
The Committee advise approval.
Certified.
(Signed)        A. Campbell Reddie,
Deputy Clerk, Executive Council.
CORRESPONDENCE.
Minister of linance to Freshfields & Williams.
London, 6th August, 1891.
Referring to my interview with you this afternoon, I beg to hand you herewith copies of
the Acts of the Legislature of British Columbia relating to the proposed loan, viz.: chapters 13
and 22 of 1891.
I cabled the Government this evening as follows :—"Order in Council should appropriate
one per centum per annum for sinking fund, under section 1, chapter 22, and should appoint
me in compliance with section 1 of 'Imperial Stock Act, 1877;'" and I will hand you an
amended proof prospectus to-morrow morning, in accordance with the corrections suggested,
If you should have opcasion to communicate with me, please address me at this address, 606 Loan of 1891. 1892
Freshfields & Williams to Minister of Finance.
London, 7th August, 1891.
We have the honour to acknowledge the receipt of your note of yesterday's date, enclosing
copies of the Acts of the Legislature of British Columbia relating to the proposed loan, and for
which we beg to thank you.
We observe that you have telegraphed to the Government, and we trust that you will
receive the necessary information which will enable you to proceed with the matter. Our Mr.
Williams will not be in London to-morrow, but he returns to town early on Monday morning.
Minister of Finance to Freshfields & Williams.
London, 8th August, 1891.
I have the pleasure to inform you that I have to-day received a telegram from the
Government in Victoria fully concurring in the proposed arrangement, and advising the
forwarding of the Order in Council to-day. I enclose you herewith the latest proof of the
prospectus, which I commend to your perusal. You will notice that a reference has been made
in the second paragraph, and a third paragraph has been added, relating to the sinking fund.
Glyn, Mills,  Currie & Co.  to Minister of Finance.
London, 10th August, 1891.
I fear you will find it essential that the Order in Council in respect of the loan of the
Province of British Columbia should have been officially promulgated in the Official Gazette of
the Province before it can be acted on here. I would suggest that, if you approve, you should
wire for a dozen copies of the Gazette containing the order.
Glyn,  Mills,  Currie & Co.  to Minister of Finance.
London, 10th August, 1891.
With reference to the interview we have had with yourself and with Mr. Beeton, of the
firm of Messrs. Woolston & Beeton, we now put on record the terms upon which we shall be
willing to undertake the inscription of the stock of the Province of British Columbia.
We understand that all operations connected with the floating of the loan of £200,000,
the receipt of the calls, the allotment, the issue of scrip, &c, will be undertaken by the Bank
of British Columbia, and that our duties will not commence until the presentation to us of the
scrip certificate, duly marked " Paid in full."
We further understand that the Province will register the loan with the Commissioners of
Inland Revenue, agreeably with the provisions of the "Colonial Stock Act, 1877," and will
agree to commute the stamp duty on transfers, and that they will further undertake to provide
the funds for the half-yearly payments of interest fourteen days before the 1st January and 1st
July in each year.
In these circumstances, we shall be prepared to inscribe, transfer, and pay interest on all
stock of the Province to an extent not exceeding £1,000,000 stock, for a commission of £400
a year, payable half-yearly on 31st December and 30th June, the first payment to be £200 on
31st December next. We undertake to pay all expenses, except cost of advertisements and
revenue stamps, which will be borne by the Province.
This arrangement to continue in force for seven years, in pursuance of sections 7 and 8 of
the "Inscribed Stock Act, 1891," 55 Vict. Loan of 1891. 607
Minister of Finance to General Manager Bank of British Columbia.
London,  10th August, 1891.
I hand you prospectus of a new issue of £200,000 three per cent, inscribed stock of the
Province of British Columbia, and I hereby authorize and request you, on behalf of the Provincial Government, to issue said prospectus and to receive applications for allotment of the
stock in terms thereof.
I also engage, on behalf of the Government, to pay you a commission of \ per cent, for
your services in the matter, it being understood that all other expenses will be borne by the
Government.
Minister of Finance to Peter Williams.
London, 15th August, 1891.
I beg to communicate herewith the copy of a telegram which I have to-day received from
the Government in Victoria.
Freshfields & Williams to Minister of Finance.
London, 17th August, 1891.
We beg to acknowledge the receipt of your letter of the 15th instant, addressed to our
Mr. Williams, enclosing a copy of a telegram received from Victoria. We have communicated
with the Bank of British Columbia, and for your guidance and information we enclose a
copy of our letter.
Freshfields & Williams to General Manager Bank of British Columbia.
London, 17th August, 1891.
Referring to our interview with your representative this afternoon, relating to the proposed
British Columbian loan, we have to say that we certainly did suggest stating in the prospectus
what the issue would yield to subscribers, but we did not approve of any particular figure, and
for very obvious reasons, as we explained to your representative, the statements of fact contained
in the last paragraph on page 1 of the prospectus, and the three first paragraphs on page 2,
should be verified, and you should be reasonably satisfied of their accuracy.
We have further to remark, that no portion of the loan should be handed over until the
Order in Council has reached you. We have received a note this morning from Mr. Turner,
enclosing a copy of a telegram which seems to have reached him on Saturday last. We annex
a copy of this telegram, but it does not seem altogether quite clear. We have no doubt,
however, that the Order in Council when it reaches you will be found sufficient. If, however,
it is not sufficient, and this cannot be fully ascertained until it has been submitted to the
authorities at Somerset House, no portion of the loan must be parted with.
Since writing the foregoing we have seen Mr. Beeton, and he tells us that the calculation
of the yield is based on Nash's Tables, where the loan is redeemable within a certain fixed
period, and that this work is well known in monetary circles, and may be relied upon as an
authority. But on further explanation we are rather inclined to agree with you in thinking
that the figures are calculated to mislead those not familiar with that kind of investment.
Logically, £3 14s. 6d. as the return may be correct, but conventionally an investor would
expect to receive for £86, £3 12s. 6d. per annum, but he would not receive, as we understand
it, looking at the matter from this point of view, more than £3 9s. 9d, Hence, as we said
before, the figures as set forth in the prospectus are apt to mislead. 608 Loan of 1891. 1892
Minister of Finance to Linklater & Co.
London, 15th August, 1891.
I beg to communicate herewith the copy of a telegram which I have to-day received from the
Government in Victoria If, as I assume, this Order in Council is in the form you consider
satisfactory, I should be glad if you will obtain the signature of the Debenture Corporation to
the enclosed form of contract, which I enclose in duplicate, when I will attach my signature
on behalf of the Government, and exchange the documents forthwith. If you could arrange
this to-day it would permit of the loan being advertised on Monday, which I think is desirable.
Freshfields &  Williams to Minister of Finance.
London, 21st August, 1891.
As arranged to-day with Mr. Beeton, we have prepared and enclose the draft declaration
to be made by you in connection with the inscription of the British Columbia loan. The
application to the authorities cannot be further prosecuted until after the receipt of the Order
in Council. We shall be glad, however, if you will peruse, and if necessary revise, the draft,
and return it to us in due course.
Minister of Finance to Freshfields & Williams.
London, 24th Angust, 1891.
I beg to acknowledge the receipt of your letter of the 21st instant, enclosing a draft
declaration for the Commissioners of Inland Revenue, for my perusal and revision, pending
the receipt of the definitive Order in Council, which should reach London at the end of this
week or the beginning of next. I return the document herewith with the blanks filled up in
pencil, and I understand from my conversation with you this morning that you consider it
advisable to postpone its further consideration until the Order in Council is before us.
As I understand the first section of the "Colonial Stock Act, 1877," all that the authorities
require is:—
1. The production of the Order in Council authorizing me to make a declaration.
2. Such declaration from me, reciting—
(a) That provision has been made by the Legislature for the inscription of a
stock in the United Kingdom (chapters 13 and 22, 1891).
(b) The identification by me of the present loan, as the stock provided for.
I assume that if the Order in Council when it reaches us is found to authorize me to make
a declaration to the Commissioners of Inland Revenue, and to do all such other acts as may be
necessary for carrying the order authorizing the sale of the stock in question into effect (as it
may be inferred from the cabled synopsis of the order that it will), that furnished as I am with
a copy of the Acts in question, I shall be able to make the statement required of me on my
own responsibility.
Freshfields & Williams to Minister of Finance.
London, 25th August, 1891.
We are favoured with your letter of yesterday's date, returning the draft of proposed
statutory declaration to be made by you in connection with the British Columbia Loan. We
cannot usefully further discuss the matter until the receipt of the Order in Council, and we will
consider the document so soon as you are able to submit it to us. If any doubt should be raised
as to the validity of the Order in Council, the document must be submitted to counsel, to advise
in connection with the two Acts of Parliament to which you refer, 55 Vict. Loan of 1891. 609
Freshfields & Williams to Minister of Finance.
London, 28th August, 1891.
Referring to our interview with you to-day, we beg to return the certified copies of the
Report of the Executive Council of the Province of British Columbia, of the 1st August and
the 10th August, 1891, together with the letter of Mr. Reddie, the Deputy Provincial Secretary,
of the 10th August, 1891, enclosing the copies.
Upon enquiring at the Secretary's Department, Inland Revenue, Somerset House, we
were informed that, so far as they could see, the forms of the Report of the Executive Council
were unobjectionable, and that Reports in such form would be accepted as being the documents
referred to in the letter of the 10th August as copies of Orders in Council; also that the
recommendation in the Order of the 10th August, that you be authorized under the seal of the
Province to cause the declaration required by section 1 of the "Colonial Stock Act, 1877," to
be left with the Commissioners of Inland Revenue, would be accepted in the Secretary's
Department as your sufficient authority.
Freshfields & Williams to Minister of Finance.
London, 3rd September, 1891.
Referring to the interview we had with you yesterday, upon carefully reading the Orders
in Council with the prospectus, we thought it necessary to submit them to Mr. Armitstead, a
well known counsel whom we have employed in these matters, and we enclose a copy of his
opinion upon the subject.
Mr. Armitstead's Opinion.
Lincoln's Inn,
London, 2nd September, 1891.
I have perused, on behalf of the Bank of British Columbia, copies of two Orders in Council
of the Province of British Columbia, both dated the 14th August, 1891, with the view of
seeing how far these Orders authorize the statements contained in the prospectus of the 18th
August, 1891, issued by the Bank of British Columbia.
The prospectus states : "The first interest payment will be made in full on 1st January,
1892." I assume this means that a full half-year's interest as from the 1st July, 1891, will be
paid. Now, the Order marked "II." provides that the stock shall be issued as soon as conveniently may be after the approval of such Order, that it shall be in the full amount of
£200,000, redeemable at par on the 1st July, 1941, and carrying interest in the meantime at
the rate of 3 per cent, per annum, payable half yearly on 1st days of January and July in each
year. The words "in the meantime" appear to me to indicate the period between the issue
and the redemption of the stock, whereas the prospectus (if I am right in my reading of it)
makes the interest run from the 1st of July, 1891—a date which is at least some six weeks
before the issue of the stock, for the stock cannot, I think, be said to have been issued before
the date of the prospectus. I, therefore, think that the Orders in Council contain nothing
authorizing the payment of interest in respect of any period anterior to the 18th August.
If the above view be correct, I do not see how, under the present powers of the Lieut. -
Governor of the Province, he can cure the defect; for, having regard to section 3 of the
"Inscribed Stock Act, 1891," (British Columbia) and to section 2 of the "British Columbia
Loan Act, 1891," it would seem that the rate of interest on the stock and the conditions of its
sale must be fixed before the money be raised by the sale of the stock.
Under these circumstances, the Bank of British Columbia should, in my opinion, before
parting with the proceeds of the stock insist on some arrangement being made by which the
due payment of a full half-year's interest on the 1st of January next will be secured to their
satisfaction, 610 Loan of 1891. 1892
The Orders leave the investment of the sinking fund to the future discretion of the Lieut.-
Governor. This, however, is not inconsistent with the statement of the prospectus, to the
effect that it is the intention of the Government to invest the sinking fund in the purchase of
the stock.    I assume, of course, that the bank had information justifying such a statement.
In other respects the Orders in Council appear to me to bear out the statements of the
prospectus.
Minister of Finance to Freshfields & Williams.
London, 3rd September, 1891.
I am in receipt of your letter of date, enclosing counsel's opinion, which you have obtained
on behalf of the Bank of British Columbia, on the Orders in Council issued in respect of the
loan. The Government will be prepared to enter into an arrangement which may be satisfactory to the bank, by way of ensuring that six months' interest will be paid to stockholders on
1st January next, and if you will be good enough to indicate what, in your judgmeut, the
nature of this arrangement should be, I will take such steps as may be necessary to give effect
to it.
Freshfields & Williams to Minister of Finance.
London, 4th September, 1891.
We beg to report that we have to-day seen the Inland Revenue authorities with the draft
of the declaration to be made by you under the " Colonial Stock Act, 1877," with reference to
the British Columbia loan, and the authorities have approved the draft.
We will proceed to have the draft engrossed, and if you will call here in the course of
to-morrow morning at 11 o'clock, the engrossment will be ready for your signature.
Freshfields & Williams to Minister of Finance.
London, 8th September, 1891.
We beg to report that we yesterday filed the declaration made by you on Saturday
respecting the inscription of the British Columbia loan under the "Colonial Stock Act, 1877."
We at the same time saw the authorities with reference to the payment of the duty. The
assessment will be at the rate 12/6 %. The authorities informed us that the course usually
adopted in such cases is for the bankers issuing the loan to forward by post a certificate to the
Inland Revenue authorities of the amount of stock issued, when the authorities will calculate
the duty and transmit to them a note of the amount, which can then be paid at Somerset
House in the usual way.
Woolston & Beeton to Minister of Finance.
London, 4th September, 1891.
We have much pleasure in writing you at your suggestion, reporting progress with regard
to the new Government loan.
It is, perhaps, unnecessary now to refer to the superiority of an inscribed stock over
bonds, for the reason that the advantage of being transferrable in any amount and being registered in the name of the holder for better security, as constituting a more eligible form of
investment and commanding a correspondingly higher price, was so fully explained by you in
Parliament, and resulted in the passing of the Acts upon which the recent operation was based.
From the cables which you have received from the Government since your arrival in
London, however, it would appear that some doubt has been entertained as to whether a 3 per
cent, is preferable to a 3J per cent, stock. On this point the conversation which you have
had recently with such leading financiers as Lord Willingdon and Mr. Bertram Currie, of the 55 Vict. Loan of 1891. 611
firm of Glyn, Mills, Currie & Co.; Mr. Johnson, of the firm of Wedd, Jefferson & Co.; Sir
Charles Tupper and others, will have satisfied you of the correctness of the advice which we
have tendered to you on this point; and, indeed, Mr. Hughes, of the Bank of British Columbia,
has frankly admitted it, and embodied his opinion in a cablegram addressed to Mr. Ward, the
Manager of the Bank in Victoria, which he has read to you. The fact is that the chief demand
is for a low-priced stock which the public regard, and rightly so, as cheap, for the reason that
it is bound to appreciate in value as itapproaches redemption; whereas the market price of a 3J
per cent, stock is so near to par that it is regarded, and rightly so, as dear, for the reason that
there is little room for appreciation as redemption approaches. Nor is this all, for it is doubtful
whether, with a continuance of a reduction in the rate of interest which we have witnessed
of late years, a 50-year 3J per cent, stock would not rise to a premium, in which event it
would become a wasting security, the market price of which suffers immediately from its
ineligibility for the purposes of trustees, who constitute the chief purchasers of this class of
security, and such depreciation in value would of course imply a corresponding depreciation of
the credit of the Government, the price of whose stock is the criterion of the rate at which it
can effect future borrowings. You will understand, therefore, that it is not only fallacious to
suppose that it is any disparagement to the credit of a Government to issue its stock at a
discount, but, on the contrary, the fact that a stock at a premium is necessarily relatively
lower than a stock at a discount implies that the Government whose credit is measured by a
stock at a premium is prejudiced as compared with a Government whose credit is measured by
a stock at a discount. The final and conclusive proof, however, that this argument is a true
one is to be found in the fact, which is within your knowledge, that we could not have placed
a 3J per cent, loan at more than 93, whereas we did actually place a 3 per cent, loan at 86.
The advantage, therefore, which a 3 per cent, loan has secured to the Government is the
difference between having to borrow money at £3 16s. 5d. and borrowing it at £3 12s. 2d. as
we have done.
The credit of the Government being now established in a 3 per cent, stock any future
borrowings will be by way of increasing such stock, and within limits which would not be
detrimental to the credit of the Province, it will always be possible to effect such borrowings
at a small concession on the market price for the time being. This brings us to a consideration
of considerable importance to the Government.
It has always been part of our plan for the advancement of the Government credit in
general, and for promoting the success of the conversion operation in particular, that the
market for the new stock should be assisted by purchases for account of the Government
sinking funds. This procedure has been adopted with eminent success by the Dominion of
Canada, and its propriety has been endorsed by Sir Charles Tupper and Mr. Hughes in
conversation with you. Such action referred to in the third paragraph of the prospectus of
the new loan (which is a transcript from a paragraph in the prospectus of the recent Dominion
issues) has the two-fold effect of securing the more efficient protection of the sinking fund, by
being an ipso facto cancellation of debt, and of raising the price of the stock, which is, as
explained, the measure of the Government's credit. In anticipation, however, of the consolidation of the Government debt by the conversion of the existing bonds, the raising of the price
of the new stock by such means has an exceptional and added significance, for the reason that
the purchasing power, which is represented by the investment of the proceeds of the securities
held by the trustees of the Government sinking funds, may be made a powerful instrument
for the accomplishment of their plans, by those who will be responsible for formulating the
proposal to the bondholders, when the time arrives. As this duty is to devolve upon us, we
are strongly of opinion that between this and January next (when the general condition of the
money market may be assumed to favour the operation in question), we should be placed in a
position to act in the Stock Exchange, from day to day, in such a manner as circumstances
require, the dealers, of course, naturally looking to us to support the market, if any support is
required.
Identified as we are with the success of the conversion scheme, we shall, of course,
endeavour to reserve as large a purchasing power as possible until the time arrives for influencing
the holder of the bonds, by displaying the strength of the market for the new stock. The
Government, therefore, can rely upon our exercising any discretion extended to us in connection
with the sinking fund purchases, in the best interests of the Province.
We may, perhaps, be permitted to add that which we feel your experience in London will
have taught you, viz., that if you are to do full justice to the business connected with the issue 612 Loan of 1891. 1892
of a loan in future, it will be necessary that some one should be empowered, within certain
prescribed limits, to fix a price of sale and conclude final details without reference to anyone.
Although it is no part of our province to suggest how this should be accomplished, it occurs to
us that it would be prudent to frame any future Act of Parliament either on the lines of the
South Australian Act forwarded to you, whereby the Minister of Finance is authorized to sell;
or if the Lieutenant-Governor in Council be named for such purpose, that he be authorized to
to issue, and that the Minister of Finance be directed to give effect to such issue by selling, at
his discretion, within certain prescribed limits.
In the event of the Minister of Finance being unable to proceed to London, or of its being
unnecessary for him to do so, we think it would be desirable to empower the Agent-General to
give effect to his instructions. You will understand that the object to be kept in view is to
empower some fit and proper person to conclude a bargain, within certain constitutional and
prudent limitations, without continual reference on minor points to a third party, it being
impossible to make a good bargain when the negotiator is not invested with power to close.
P. S.—We hereby confirm the verbal arrangement made with us, that in consideration of
the services which we have rendered the Government, and which we will continue to render
them, in connection with the conversion of the debt, our firm will be entitled to receive a
commission of J per cent, on the nominal amount of bonds converted, payable as and when
converted.
Minister of Finance to the Secretary of Share and Loan Department, Stock Exchange.
London, 30th September, 1891.
My attention has been called to the fact that British Columbia Government 6 % Debentures for £100,000, issued in 1865, and redeemable in 1894, are quoted in the Official List
under the head of British Columbia, whereby the inference may be drawn that such loan is
part ot the indebtedness of the Province, as is the case with the Loans of 1877, 1887, and
1891, now quoted on the Official List.
As the loan in question was assumed by the Dominion of Canada at the time of Confederation, under the " British North America Act," and now forms part of the indebtedness of the
Dominion, I beg respectfully to suggest that it would be proper that it should be quoted under
the head " Canada (British Columbia Loan)," and I shall be obliged by the Committee of the
Stock Exchange so directing.
From the Secretary of Share and Loan Department to Minister of Finance.
London, 7th October, 1891.
In reply to your letter of the 30th ult., will you kindly send me, as soon as possible, a
copy of the " British North America Act," under which the above loan was assumed by the
the Dominion of Canada.
Glyn, Mills, Currie & Co. to Minister of Finanee.
London, 13th October, 1891.
We beg to advise you that, up to the present time, we have inscribed in respect of the
recent loan of the Province the sum of £105,100.
Manager of Bank of British Columbia to Minister of Finance.
London, 14th October, 1891.
Mr. Hughes has asked me to explain to you that, while the Order in Council leaves the
matter to the discretion of the Trustees, they have since been advised by Mr. Robson, and also
by Mr. Ward, that in the event of its being considered advisable to realize some of the 55 Vict. Loan of 1891. 613
securities of the previous Sinking Funds and invest proceeds in the new loan, the wishes of
the Government will be conveyed to the Trustees through the manager of the Bank at Victoria,
and both Mr. Hughes and Sir Charles Tupper think it would be a mistake to act without
having received such communication.    I return the copy of Order in Council.
Manager of Bank of British Columbia to Glyn, Mills, Currie & Co.
London, 16th October, 1891.
Referring to our interview with your representative to-day on the subject of the amount
payable for composition of duty on transfers of the British Columbia 3 per cent. Inscribed
Stock, we now hand you copy of letter from the Commissioners of Inland Revenue on the
subject, and cheque of the Minister of Finance of British Columbia for £1,250, the total
amount payable, and we shall thank you to pay the amounts to the Commissioners of Inland
Revenue, and obtain for us the necessary certificates, as your representative was kind enough
to say you would.
H. R. Beeton to Minister of Finance.
London, 16th October, 1891.
With reference to our conversation yesterday, I beg to hand you the following memorandum
on the subject of the theory of cost and sinking fund in relation to a loan issued at a discount.
A sinking fund I conceive to be the annual appropriation of revenue to the extinction of
debt, i. e., to the repayment of the gross amount received by the Government, viz.: the issue
price of the loan. In the case of the new 3% stock, the amount of sinking fund, namely, one
per cent., appropriated by Order in Council, will more than repay at maturity the amount
received by the Government, but this merely implies that there will be a surplus to dispose of.
The cost of the loan to the Government is the percentage of interest payable by them on
the gross amount received, together with the annual appropriation of a sufficient sum to provide
at the maturity of the loan the discount at which it is issued.
Applying these principles to the new loan, 3% interest on the issue price of 86 is £3 9s. 9d.
per cent., and the annual appropriation necessary to provide the discount of £14 at the expiration of 50 years is 2s. 5d. per cent, per annum, thus making the total cost of the loan
£3  12s. 2d. per cent, per annum.
It is this latter figure, £8 12s. 2d. per annum, which represents the final and inclusive
cost of the loan to the Government, and when it has been faced there is no disadvantage whatever
in the issue of the stock at a discount.
This conclusion is not a matter of opinion, but is of the alphabet of the money market,
and it would not be necessary to state it in terms for your convenience except that much
ignorance prevails amongst even educated men in matters of finance, and that the success of
your recent operation in London is the subject of interested criticism.
Minister of Finance to General Manager of Bank of B. C.
London, 8th October, 1891.
Province of British Columbia 3 per cent. Inscribed Stock.
This loan having now been fully paid, I have to request that you will transfer by cable the
net proceeds, say £168,902 10s. 4d., to the credit of the Provincial Government at your
Victoria branch, after deducting £3,000, being the amount required to pay the interest due 1st
January. This amount I request you to pay Messrs. Glyn, Mills, Currie & Co. on 1st December next, to meet the interest due on the loan on 1st January, 1892. 614 Loan of 1891. 1892
TELEGRAMS.
Woolston to Turner,
London, 30th June, 1891.
Come London immediately.    Are working provisionally on basis 85 meantime.
Woolston to Turner.
London, 2nd July, 1891.
Bank rate three, bank deposits large.    Colonial market improving and moment propitious
for issue, but prospect dear money autumn, and holidays commence August.    Can you be here
twentieth, and may we negotiate on basis 85 and proceed meantime ?
Woolston to Turner.
London, 21st July, 1891.
Could place loan firm 85J now, and barring unforseen  accidents,  are confident  of  being
able to do so on your arrival within 20 days.    With your sanction  can complete preliminary
arrangements  so  as to make issue within a week of your arrival.    May we proceed, and if so
wire date of your probable arrival.
Turner to Woolston.
21st July, 1891.
Make arrangements.    I expect to cross by " Majestic," twenty-ninth
Turner to Government of B. C.]
London, 6th August, 1891.
Concluded arrangements whereby loan is guaranteed by leading financiers for two
hundred thousand pounds in three per cent stock at equivalent of three pounds thirteen
shillings and sixpence net to us, thus establishing our credit on vastly improved basis, which
will permit of the conversion of balance of debt within twelve months at a still lower rate. At
present market prices the Dominion is borrowing in a similar stock at equivalent of three
pounds five shillings. Highest authorities here, also Hughes and Tupper, whom I have seen,
consider this arrangement highly advantageous to the Province. Cable powers immediately,
as time is of the essence of the business.
Turner to Government of B. C.
London, 6th August,  1891.
Order in Council should appropriate one per centum per annum for Sinking Fund, under
section one, chapter twenty-two, and should appoint me in compliance with section one
of " Imperial Stock Act, eighteen hundred and seventy-seven."
Davie to Turner.
Victoria, 7th August, 1891.
Cable fully particulars section three Inscribed Stock Act, also actual price stock is now
to be sold for.    Likewise what to be paid for commissions, brokerage and other expenses
Is interest payable Bank British Columbia 1 55 Vict. Loan of 1891. 615
Turner to Government of B. C.
London, 7th August, 1891.
Amount two hundred thousand pounds three per cent, inscribed stock redeemable 1st
July, nineteen hundred and forty-one. Issued at eighty-eight. Bank and other commissions,
brokerage and other expenses three five-eighths. The actual cost to us for provision of annual
interest and bonus on redemption will be only three thirteen six per cent, per annum. Dividends must, of course, be paid where stock is inscribed, namely Glyn's. The Bank of British
Columbia will make the issue. Am prepared to answer questions as to details, but, subject to
my obtaining money at not exceeding the rate you approve, I must have a free hand to
determine what is best course to adopt, which you cannot be a judge of on our side. If you
do not give me free hand the failure to borrow on most favourable terms will rest with you.
The Bank of British Columbia here say the operation I have arranged is eleven per cent,
better than they did for us.
Turner to Government of B. C.
London, 7th August,  1891.
Think Ward does not understand position ;   3%  stock indubitably cheaper for Province
than   3| %.    I  have  seen  Currie.    He thinks  scheme highly  favourable for Province.    The
opinion is unanimous.    Neither Bank of British Columbia nor Tupper thought it possible to do
so well.    Delay in issuing order is prejudicing negotiation and injuring credit.
Davie to Turner.
Victoria, 8th August, 1891.
Government  fully concur  in  your  arrangement  for loan.      Order in Council  will be
forwarded to-morrow.
Turner to Government of B. C.
London,  10th August, 1891.
Do   my  powers under  Order in Council allow  me any   discretion if   necessary?    This
important.    Cable promptly with synopsis of order.
Synopsis of Order Gabled.
On memorandum from Attorney-General reporting that Minister of Finance had, subject
approval Governor, concluded arrangements, London, issue loan two hundred thousand pounds
inscribed stock at three per cent., redeemable as to principal first July, forty-one, principal and
interest to be payable Glyn Mills, London. That issue will be at rate not less than eighty-
eight cents on dollar, netting Province not less than eighty-four three-eighths per cent., and
recommending that action Minister of Finance be endorsed. The minister also recommends
that Turner be authorized under seal of Province to cause the declaration required by section
one, "Colonial Stock Act, Seventy seven," to be left with Commissioner Inland Revenue.
Committee advise approval, signed Pooley, President. Approved tenth August, signed Hugh
Nelson, Governor. Order that action Minister of Finance in concluding arrangements in
London for issue of loan, as particularized in accompanying memorandum, be and is hereby
approved, signed Reddie, clerk.
Davie to Turner.
Victoria, 11th August, 1891.
Will issue further  order  section three, Inscribed Stock,   when  apprised.     Particulars
required  by   that  section  and  prospectus  immediately  issued,   that  we   may   issue   order
accordingly. Turner to Government of B. C.
London, 11th August, 1891.
Asked Government yesterday to cable synopsis  of order immediately.    Does  it  fix issue
price or is there discretion as to this order.    Must be published in Gazette for use here.
Turner to Government of B. C.
London,  12th August, 1891.
Original negotiations were prejudiced by delay. Order useless, as after mature consideration decided to reduce issue price to eighty-six in interests of Province. Think new order
should not specify net result, as expenses can only be estimated, but should authorize me to
pay necessary commissions and expenses, as already given approximately. Cost per annum,
including interest and bonus on redemption, will be about three-quarters. Cable new order
immediately.
Turner to Government of B. C.
London, 12th August,  1891.
Order must authorize me to conclude negotiations, and should omit all details of expense
of issue, as it must be published in Gazette for requirements here, and it hampers me unnecessarily. Bank cabled Ward approving. Clause three, chapter 13, says nothing about issue
price or expenses.
Robson to Turner.
Victoria, 13th August, 1891.
Expenses can be limited by separate order. Cable exactly what you can carry out at
three per cent, also terms for three and half. Cable proposed amounts of issue. No hurry
if favourable terms not obtainable.     What occasion for Gazette notice?
\
Turner to Government of B. C.
London, 13th August, 1891.
Can place threes eighty-six, costing Province three pounds twelve shillings and two pence
per annum ; three and halves ninety-three, costing three pounds sixteen five pence per annum.
Last loan four and halves at ninety-eight and half, costing four pounds twelve shillings per
annum. For the greater advantage of Province in future, and for other reasons also, threes
much more favourable. Terms will never be more favourable than at present moment, but
indecision and delay seriously prejudice negotiation, and unless immediate powers given me
operation may collapse. Expenses same as before, therefore net to Government two less at
eighty-six than at eighty-eight. Gazette notice wanted for Somerset House and Stock
Exchange, but can proceed on cabled synopsis of order in anticipation of its arrival. Amount
of loan two hundred thousand pounds. Subscribers may obtain any amount. Gillespie and
Hughes highly approve my action.
Turner to Government of B. C.
London, 14th August, 1891.
New order should be same as old, but should run not less than eighty-six, less expenses,
which latter, for your guidance in subsequent order, are two and quarter to syndicate guaranteeing loan at eighty-six, quarter of one to bank for issuing, quarter of one brokerage on public
applications, five-eighths of one Government tax, and about five hundred pounds for legal,
printing, advertising and other expenses, or about three five-eighths in all. 55 Vict. Loan of 1891. 617
Turner to Government of B. C.
London,  14th August,  1891.
Bank anxious I should cable you again, impressing on  you  urgency  of passing order,   as
time cannot be more favourable, and bargain with syndicate too good to miss.
Davie to Turner.
Victoria, 14th August,  1891.
Proceed   with  threes at eighty-six.    Will  rescind  previous order  and issue fresh one, a
synopsis of which will be cabled you to-morrow.
Synopsis of Order Cabled.
Minute Attorney-General approved by Governor fourteenth August. Government raise
such sum as may be realized sale two hundred thousand pounds inscribed stock to be issued
London soon as conveniently after, date redeemable first July, 1941, carrying interest three
per cent, payable half-yearly, principal and interest payable at Glyn Mills. London, direct.
Minister Finance appropriate yearly sinking fund, one per cent, to be invested together with
accumulations, as Governor in Council may direct. Authorizes Turner cause declaration to be
left with Commissioners Inland Revenue, and do all such other acts as necessary to carry order
into effect.
Contract signed.     Subscription Friday.
Turner to Government of B. C.
London,  17 th August,  1891.
Turner to Government of B. C.
London, 20th August,  1891.
Pass Order in Council and cable same authorizing trustees  of sinking  fund to  invest   in
new loan.
Robson to Turner.
Victoria, 22nd August, 1891.
Order approved  authorizing  trustees to  dispose  sinking  fund investments and re-invest
proceeds in British Columbia three per cents, at discretion.
Turner to Government of B. C
London, 22nd August,  1891.
In the interests of conversion scheme it is necessary cable Hughes and Tupper at Bank of
British Columbia as follows: " Government has approved order authorizing trustees to
dispose of sinking fund investments, and re-invest proceeds in British Columbia three per
cents, and Government directs that such action be exercised at such times and in such amounts
as may be approved by their brokers, Messrs. Woolston & Beeton."
Turner to Government of B. C.
London, 24th August, 1891.
Telegraph Hughes direct that Order in Council has been passed,  in accordance with my
telegram of 22nd instant. 618' Loan of 1891. 1892
Robson to Turner.
Victoria, 26th August, 1891.
Government disinclined to transfer   all discretionary  power from Trustees  to  Brokers.
We await particulars by mail.
Turner to Government of B. C.
London, 26th August, 1891.
Explained matters to Hughes. He fully recognizes that brokers should have power to
support price in view of conversion. He proposes Government should empower brokers buy
from time to time up to amount available, brokers reporting Government accordingly, and
Government then cabling Trustees to adopt contract. I recommend, therefore, to save expense,
Government invest me with powers exercisable by Governor under clause twelve, chapter nineteen, of eighty-seven, and corresponding clause of Act seventy-seven. Cable if approved. Loan
floated successfully.
Robson to  Turner.
Victoria, 28th August, 1891.
Whatever purchases brokers make must be subject to approval Government, who can cable
Trustees  as occasion  may  require.     Power of  Government under  clause  twelve  cannot  be
delegated.    Give brokers necessary instructions.
Return of Guarantors for Loan, 1891.
Names. Amount.
Wedd, Jefferson & Co £ 15,000
Woolston & Beeton       10,000
The Debenture Corporation    100,000
Bank of British Columbia       10,000
R. Nivison & Co      15,000
Marnham & Co         5,000
A. Thomson & Co       15,000
C. Morrison       20,000
Cocks, Biddulph & Co       10,000
£200,000
 o	
ISSUE OF £200,000 3 PER CENT.  INSCRIBED  STOCK OF THE PROVINCE OF
BRITISH COLUMBIA.
The Honourable John H. Turner,
Minister of Finance of the Province of British Columbia.
British Columbia Government Offices,
33, Finsbury Circus, E. C.
Sir,—When called upon by you so to do (I or we) agree to subscribe for £
nominal three per cent. Inscribed Stock of the Province of British Columbia, at the price of
£86 per cent., upon the basis and the terms of the prospectus annexed hereto.
As consideration for the above you are to pay (me or us) within fourteen days of the
general allotment a commission of £2 per cent, upon the face value of the stock which (I or
we) have agreed to subscribe.    To the extent that the above-mentioned stock is allotted to the 55 Vict. Loan of 1891. 619
public, (I or we) and other persons who have  entered  into  similar undertakings  are  to be
rateably relieved of our obligations to subscribe.
In the event of (my or us) failing to subscribe in accordance with this undertaking (I or
we) authorise you to subscribe in (my or our) name and as (my or our) agent.
Dated 1891.
I agree to the foregoing on behalf of thel
Government of the Province of British >-
Columbia. J
DOMINION OF CANADA.
PROVINCE OF BRITISH COLUMBIA THREE PER CENT. INSCRIBED STOCK,
Issue of £200,000 Stock, part of a sum of £700,000 Sterling, authorized to be raised
by the British Columbian Loan Acts, Chaps. 13 and 22, of 1891.
Redeemable at par in London on 1st July, 1941.—Interest payable in London half-yearly
on 1st January and 1st July.
Price of Issue £86 per Cent, (yielding £3 12s. 6d. per cent.), payable as follows :—
£5    per Cent, on Application.
£31 per Cent, on Allotment.
£50 per Cent, on 1st October.
The Bank of British Columbia, 60, Lombard Street, London, E. C, is instructed by the
Government of the Province of British Columbia to receive applications for the above amount
of Stock, authorised to be issued by Acts of the last Session of the Legislature, and secured
upon the Consolidated Revenues of the Province.
According to the Acts in question, the proceeds of the Loan are to be applied, as to a sum
not exceeding £250,000 towards the public purposes of the Province, and as to the balance in
redeeming the Bonds issued under the "The British Columbia Loan Act of 1877," and the
"British Columbia Loan Act of 1887," and the redemption of the Loan is provided for by the
appropriation under an Order in Council of an adequate sinking fund.
With a view to the more efficient protection of the sinking funds of the several Loans of
the Province, it is the intention of the Government to invest the sums annually required for
the reduction of its Debt in purchases of the stock now offered.
The Province is entitled, under the terms of Union provided by the British North
America Act, to an Annual Subsidy in perpetuity from the Dominion of Canada, amounting
for the current year to upwards of £40,000, and which, being subject to decennial revision on
the basis of population, should amount for the ensuing year to about £50,000.
The total debt of the Province amounts to £355,400, less £69,000 sinking fund, invested
in London, being less than £2 10s. per head of population, which has nearly doubled in the
last decade, and is steadily increasing.
The revenue has correspondingly increased, and more than covers the expenditure,
exclusive of that on public works, which is provided for by loans.
The Crown lands belonging to the Province aggregate about 200,000,000 acres.
The Stock issued in respect of this loan will be inscribed at Messrs. Glyn, Mills, Currie &
Co., 67, Lombard Street, E. C, and will bear interest payable by them half-yearly, on 1st
January and 1st July, at the rate of 3 per cent, per annum. The first interest payment will
be made in full on 1st January, 1892. 620 Loan of 1891. 1892
The revenues of the Colony of British Columbia alone are liable in respect of this Stock
and the dividends thereon, and the Consolidated Fund of the United Kingdom and the Commissioners of Her Majesty's Treasury are not directly or indirectly liable or responsible for the
payment of the Stock or of the Dividends thereon, or for any matter relating thereto—40 and
41 Vic, Cap. 59, sec. 19.
Interest Warrants will be forwarded, by post, to the holders of Inscribed Stock. In the
case of joint accounts, the Warrant will be forwarded to the person first named in the account,
unless instructions to the contrary be given.
Scrip Certificates will be issued after the payment of the amount due on allotment, which,
when the Stock is paid up in full, whether under discount or otherwise, may be inscribed
forthwith and exchanged for Stock Certificates at Messrs. Glyn, Mills, Currie & Co.
Payment of the instalment due on 1st October may be made on allotment under discount
at the rate of 2 per cent, per annum. In case of default in the payment of any instalment, or
balance, at its proper date, the amount, or amounts, previously paid will be liable to forfeiture.
The subscription List will open and close on Friday, 21st August, but Country applications by first post on the following day will be received.
Applications, accompanied by the deposit of £5 per cent., will be received by the Bank of
British Columbia.
Copies of the Authorizing Acts may be inspected at the Offices of Messrs. Freshfields &
Williams, 5, Bank Buildings, E. C.
Prospectuses, with Forms of Application attached, may be obtained from the Bank of
British Columbia, 60, Lombard Street, E. C, and from Messrs. Woolston & Beeton, 6a, Austin
Friars, E. C.
London, 18th Augitst, 1891.
Deposit No.  Allotment No..
DOMINION OF CANADA.
PROVINCE OF BRITISH  COLUMBIA THREE PER  CENT. INSCRIBED  STOCK.
Issue oe £200,000 Stock, part of a sum of £700,000 Sterling, authorised to be raised
by the British Columbia Loan Acts, Chaps. 13 and 22, of 1891.
To the Bank of British Columbia,
60, Lombard Street, London, E. C.
(I or we) request that you will allot to (me or us) £ Sterling, nominal Capital
of the above  Loan, on which (I or we) enclose the required  deposit of Five per cent., or
£ , and (I or we) agree to accept that amount or any less amount that may be
allotted to (me or us), and to pay the balance of such allotment according to the conditions of
your Prospectus of the 18th inst.
Name in full
Address
Date
VICTORIA, B. C:
Printed by Richard Wolfkxdkn, Printer to the Queen's Most Excellent Majesty

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