To establish frequent and easy communication between Canada and
the Pacific, and to facilitate the carrying of mails, passengers, and
traffic, the undersigned have the honour to state, that they are of
opinion that the Canadian Government will agree to give a guarantee of
interest at the rate of four per cent, upon one-third of the sum
expended, provided the whole sum does not exceed five hundred thousand
pounds, and provided also that the same guarantee of interest will be
secured upon the other two-thirds of the expenditure by Imperial or
Columbian contributions.
"If a Company composed of men of the standing and wealth of those they
had the pleasure to meet is formed for the above purposes, under such
conditions as will secure the interests of all parties interested, and
the accomplishment of the objects they have in view, such an
organization will be highly favourable to the settlements of an immense
territory, and, if properly administered, may prove to be also of great
advantage to the trade of England.
"London, 10 Decr. 1862.
"L. V. SICOTTE,
"W. P. HOWLAND.
"To MM.
Glyn,
Benson,
Chapman,
Newmarsh,
Watkin,
&c. &c. &c."
A few days afterwards these Canadian delegates started an objection.
The Imperial Government merely gave land and did not take one-third of
the proposed guarantee, and the following further memorandum was sent
to me: -
"Although little disposed to believe that Her Majesty's Government will
not accede to the proposal of co-operation they have made in relation
to the opening of communication from Canada to the Pacific, the
undersigned have the honour to state, in answer to the letter of Mr.
Watkin of the 17th instant, that in their opinion the Government of
Canada will grant to a Company organised as proposed in the papers
already exchanged, a guarantee of interest, even on one-half of the
capital stated in these documents, should the Imperial Government
refuse to contribute any portion of this guaranteed sum of interest.
"In answer to another demand made in the same letter, the undersigned
must state that the guarantee of the Canadian Government of this
payment of interest ought to secure the moneys required at the rate of
four per cent, and that they will not advise and press with their
colleagues a higher rate of interest as the basis of the arrangement.
"London, 20 December, 1862.
"L. V. SICOTTE,
"W. P. ROWLAND.
"ED. WATKIN, Esq., London."
So much, and so far, for the Pacific affair. But in the Intercolonial
discussion there was an undercurrent. The only points left for
discussion with the Duke and Mr. Gladstone were the question of survey,
which was easily settled, and the question of a sinking fund for the
loan to be made on the credit of Great Britain.
