"The chief traders would, as a general rule, be placed at the head of
districts, and the clerks in charge of posts.
"The very efficient class of officers known as 'postmasters' would
remain as at present. They are usually men who have risen from the
ranks from merit; and, being good interpreters, and Indian traders, are
commonly placed in charge of small posts. Their scale of pay is rather
less than that of clerks, and they are rarely advanced to any higher
rank; indeed, their ambition is satisfied when they are made
postmasters.
"Reverting to the mode of paying officers, and making their incomes to
some extent dependent on the success of the business, it might answer
to give them an interest as stockholders. Instead of paying a chief
trader 300l. per annum, he might have 250l., and a sum of
1,000l. of stock placed to his credit, of which he would receive
the dividends only, the stock itself reverting to the Company when his
connection with them terminated.
"A councillor might have 700l. pay and the dividends on
2,000l. stock. It would also be a great encouragement to the
officers, and secure prolonged service, to give them an annual increase
of stock - say, 200l. to be added for every year's service. Thus,
if a man did not get as early promotion as he expected, he would still
benefit by length of service.
"The principle of retired interests might be maintained, by allowing
the officers to receive the dividends on the stock they held at
retirement for - say, seven or ten years, before it reverted to the
Company.
"To carry out these arrangements, it would be necessary to set aside in
trust about 150,000l. stock. But the Company would lose nothing
by it, as they would save in salaries what they gave in dividends.
"At the outset only 35,000l. of the stock would be called for,
with an increase of 5,400l. per annum. Even allowing for a
considerable retired list, it is doubtful if the whole 150,000l.
would ever be appropriated; and of course the dividends on whatever
portion was not appropriated would revert to the Company.
"In the revision of the deed poll, it would be essential to retain the
clauses which secure to the Company the right to place officers on the
retired list, and to dismiss them for misconduct.
"The mode of keeping the accounts, both in London and in the country,
is one of much importance, requiring early consideration. At present
there are no accounts, properly speaking, kept at the posts; and very
great delay occurs in ascertaining the results of the business from
London. It is essential to introduce some system of analysed post
accounts, which should keep the Governor and his Council fully informed
of the state of the business at every post, and by which they might
judge of the management of the officers in charge. There is now no
practical check on extravagance or dishonesty, except that arising from
the upright principles of the officers in the service. The adoption of
a system of local audit appears the best remedy for many of the
existing evils.
"The Company's agent at New York (Mr. Wm. McNaughton), who is a
valuable officer, has not at present sufficient employment to make his
position worth occupying. As there is a valuable market in New York to
which it would, at certain times, be advantageous to send buffalo
robes, wolves' and some other furs, which could be done without
interference with the market in England, it is important to render the
New York agency more efficient.
"(Signed) A. G. DALLAS.
"(Signed) EDWARD W. WATKIN.
"7th August, 1863."
This memorandum was sent home to Governor Sir Edmund Head, with other
papers.
On the serious questions of the future relations of the vast territory
to Canada and the Mother Country; how it could best be settled; how it
should be governed; what arrangement as to boundaries, and so on - I had
many and serious conferences with public men. And in answer to many
questions as to my own views, I drew up the following memorandum, as a
resume of the whole subject. It is now nearly twenty-four years
old. I have read it again and again. I am not ashamed of it. I see
nothing to retract; little to alter: -
"The present state of government in the Red River Settlement is
attributable alike to the habitual attempt, encouraged, perhaps very
naturally, in England and in Canada, to discredit the traditions, and
question the title of the Hudson's Bay Company, and to the false
economy which has stripped the Governor of a military force, with
which, in the last resort, to support the decisions of the legal
tribunals. No other organized Government of white men in the world,
since William Penn, has endeavoured to rule any population, still less
a promiscuous people composed of whites, half-breeds. Indians, and
borderers, without a soldiery of some sort, and the inevitable result
of the experiment has, in this case, been an unpunished case of prison-
breaking, not sympathised in, it is true, by the majority of the
settlers, but still tending to bring law and government into contempt,
and greatly to discourage the governing body held responsible for
keeping order in the territory.
"At the same time it must be conceded, that, while government by a
merchant organization has eminently succeeded, up to an obvious point
of time and circumstances, in the cases both of the East India and
Hudson's Bay Companies, and is still applicable to the control and
management of distant districts, it contains within itself the seeds of
its own ultimate dissolution.
