"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 150,000_l_. stock. But the Company would lose nothing by it, as they would save in salaries what they gave in dividends.
"At the outset only 35,000_l_. of the stock would be called for, with an increase of 5,400_l_. per annum. Even allowing for a considerable retired list, it is doubtful if the whole 150,000_l_. 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:—