Sir,--1. Since I had last the honour of addressing you in my despatch, Number 35, on the 29th of December last, in reference to the discovery of gold in the Couteau, or Thompson River district, we have had much communication with persons who have since visited that part of the country.

2. The search for gold and "prospecting" of the country, had, up to the last dates from the interior, been carried on almost exclusively by the native Indian population, who have discovered the productive beds, and put out almost all the gold, about eight hundred ounces, which has been hitherto exported from the country, and who are, moreover, extremely jealous of the whites, and strongly opposed to their digging the soil for gold.

3. The few white men who pa.s.sed the winter at the diggings--chiefly retired servants of the Hudson"s Bay Company--though well acquainted with Indian character, were obstructed by the natives in their attempts to search for gold. They were on all occasions narrowly watched, and in every instance, when they did succeed in removing the surface and excavating to the depth of the auriferous stratum, they were quietly hustled and crowded by the natives, who having by that means obtained possession of the spot, then proceeded to reap the fruits of their labours.

4. Such conduct was unwarrantable and exceedingly trying to the temper of spirited men, but the savages were far too numerous for resistance, and they had to submit to their dictation. It is, however, worthy of remark, and a circ.u.mstance highly honourable to the character of those savages, that they have on all occasions scrupulously respected the persons and property of their white visitors, at the same that they have expressed a determination to reserve the gold for their own benefit.

5. Such being the purpose of the natives, affrays and collisions with the whites will surely follow the accession of numbers, which the latter are now receiving by the influx of adventurers from Vancouver"s Island and the United States territories in Oregon; and there is no doubt in my mind that sooner or later the intervention of Her Majesty"s Government will be required to restore and maintain the peace. Up to the present time, however, the country continues quiet, but simply, I believe, because the whites have not attempted to resist the impositions of the natives. I will, however, make it a part of my duty to keep you well informed in respect to the state of the gold country.

6. The extent of the gold region is yet but imperfectly known, and I have, therefore, not arrived at any decided opinion as to its ultimate value as a gold-producing country. The boundaries of the gold district have been, however, greatly extended since ay former report.

7. In addition to the diggings before known on Thompson River and its tributary streams, a valuable deposit has been recently found by the natives, on a bank of Fraser River, about fifty miles beyond its confluence with the Thompson, and gold in small quant.i.ties has been found in the possession of the natives as far as the great falls of Fraser River, about eighty miles above the Forks. The small quant.i.ty of gold hitherto produced--about eight hundred ounces--by the large native population of the country is, however, unaccountable in a rich gold-producing country, unless we a.s.sume that the want of skill, industry, and proper mining tools on the part of the natives sufficiently account for the fact.

8. On the contrary, the vein rocks and its other geological features, as described by an experienced gold miner, encourage the belief that the country is highly auriferous.

9. The miner in question clearly described the older slate formations thrown up and pierced by beds of quartz, granite, porphyry, and other igneous rocks; the vast acc.u.mulations of sand, gravel, and shingle extending from the roots of the mountains to the banks of Fraser River and its affluents, which are peculiar characteristics of the gold districts of California and other countries. We therefore hope, and are preparing for a rich harvest of trade, which will greatly redound to the advantage of this colony.

10. I have further to communicate for your information that the proclamation issued by me, a.s.serting the rights of the Crown to all gold in its natural place of deposit, and forbidding all persons to dig for gold without a licence, has been published in the newspapers of Oregon and Washington territories, and that, notwithstanding, some seventy or eighty adventurers from the American side have gone by the way of Fraser River to the Couteau mines without taking out licences.

11. I did not, as I might have done, attempt to enforce those rights by means of a detachment of seamen and marines, from the "Satellite,"

without being a.s.sured that such a proceeding would meet with the approval of Her Majesty"s Government; but the moment your instructions on the subject are received, I will take measures to carry them into effect.

I have, etcetera, (Signed) James Douglas, Governor.

The Right Hon. Henry Labouchere, M.P., etcetera, etcetera, etcetera.

NO. X.

_Governor Douglas to the Right Hon. Henry Labouchere, M.P._

Victoria, Vancouver"s Island, May 8, 1858.

Since I had the honour of addressing you on the 6th of April last on the subject of the "Couteau" gold mines, they have become more than ever a source of attraction to the people of Washington and Oregon territories, and it is evident from the accounts published in the latest San Francisco papers, that intense excitement prevails among the inhabitants of that stirring city on the same subject.

The "Couteau" country is there represented and supposed to be in point of mineral wealth a second California or Australia, and those impressions are sustained by the false and exaggerated statements of steamboat owners and other interested parties, who benefit by the current of emigration which is now setting strongly towards this quarter.

Boats, canoes, and every species of small craft, are continually employed in pouring their cargoes of human beings into Fraser River, and it is supposed that not less than one thousand whites are already at work and on the way to the gold districts. Many accidents have happened in the dangerous rapids of that river; a great number of canoes have been dashed to pieces, and their cargoes swept away by the impetuous stream, while of the ill-fated adventurers who accompanied them many have been swept into eternity.

The others, nothing daunted by the spectacle of ruin and buoyed up by the hope of ama.s.sing wealth, still keep pressing onward towards the coveted goal of their most ardent wishes.

On the 25th of last month, the American steamer "Commodore" arrived in this port direct from San Francisco, with 450 pa.s.sengers on board, the chief part of whom are gold miners for the "Couteau" country.

Nearly 400 of those men were landed at this place, and have since left in boats and canoes for Fraser River.

I ascertained from inquiries on the subject that those men are all well provided with mining tools, and that there was no dearth of capital or intelligence among them. About sixty British subjects, with an equal number of native born Americans, the rest being chiefly Germans, with a smaller proportion of Frenchmen and Italians, composed this body of adventurers.

They are represented as being, with some exceptions, a specimen of the worst of the population of San Francisco; the very dregs, in fact, of society. Their conduct while here would have led me to form a very different conclusion; as our little town, though crowded to excess with this sudden influx of people, and though there was a temporary scarcity of food, and dearth of house accommodation, the police few in number, and many temptations to excess in the way of drink, yet quiet and order prevailed, and there was not a single committal for rioting, drunkenness, or other offences during their stay here.

The merchants and other business cla.s.ses of Victoria are rejoicing in the advent of so large a body of the people in the colony, and are strongly in favour of making this port a stopping point between San Francisco and the gold mines, converting the latter, as it were, into a feeder and dependency of this colony.

Victoria would thus become a depot and centre of trade for the gold districts, and the natural consequence would be an immediate increase in the wealth and population of the colony.

To effect that object it will be requisite to facilitate by every possible means the transport of pa.s.sengers and goods to the furthest navigable point on Fraser River; and the obvious means of accomplishing that end is to employ light steamers in plying between, and connecting this port (Victoria) with the Falls of Fraser River, distant 130 miles from the discharge of that river, into the Gulf of Georgia; those falls being generally believed to be at the commencement of the remunerative gold diggings, and from thence the miners would readily make their, way on foot, or, after the summer freshets, by the river into the interior of the country.

By that means also the whole trade of the gold regions would pa.s.s through Fraser River and be retained within the British territory, forming a valuable outlet for British manufactured goods, and at once creating a lucrative trade between the mother country and Vancouver"s Island.

Taking a view of the subject, simply in its relations to trade and commerce, apart from considerations of national policy, such perhaps would be the course most likely to promote the interests of this colony; but, on the contrary, if the country be thrown open, to indiscriminate immigration, the interests of the empire may suffer from the introduction of a foreign population, whose sympathies may be decidedly anti-British.

Taking this view of the question, it a.s.sumes an alarming aspect, and suggests a doubt as to the policy of permitting the free entrance of foreigners into the British territory for residence, without in the first place requiring them to take the oath of allegiance, and otherwise to give such security for their conduct as the Government of the country may deem it proper and necessary to require at their hands.

The opinion which I have formed on the subject leads me to think that, in the event of the diggings proving remunerative, it will now be found impossible to check the course of immigration, even by closing Fraser River, as the miners would then force a pa.s.sage into the gold district by way of the Columbia River, and the valuable trade of the country in that case be driven from its natural course into a foreign channel, and entirely lost to this country.

On the contrary, should the diggings prove to be unremunerative, a question which as yet remains undecided, the existing excitement, we may suppose, will die away of itself; and the miners, having no longer the prospect of large gains, will naturally abandon a country which no longer holds out any inducement for them to remain.

Until the value of the country as a gold-producing region be established on clearer evidence than can now be adduced in its favour--and the point will no doubt be decided before the close of the present year--I would simply recommend that a small naval or military force should be placed at the disposal of this Government, to enable us to maintain the peace, and to enforce obedience to the laws.

The system of granting licences for digging gold has not yet come into operation.

Perhaps a similar method of raising a revenue would be to impose a customs" duty on imports, to be levied on all supplies brought into the country, whether by Fraser or the Columbia River.

The export of gold from the country is still inconsiderable, not exceeding 600 ounces since I last addressed you. The princ.i.p.al diggings are reported to be at present, and will probably continue, flooded for several months to come, so that unless other diggings apart from the river beds are discovered, the production of gold will not increase until the summer freshets are over, which will probably happen about the middle of August next. In the meantime the ill-provided adventurers who have gone hither and thither will consume their stock of provisions, and probably have to retire from the country until a more favourable season.

I shall be most happy to receive your instructions on the subject in this letter.

NO. XII.

_Copy of a better from the Secretary of the Admiralty to Herman Merivale, Esquire_.

Admiralty, June 26, 1858.

Sir,--I am commanded by my Lords Commissioners of the Admiralty to send you herewith, for the information of Secretary Sir E. Bulwer Lytton, a copy of a letter from Captain Prevost, of H.M. Ship "Satellite," dated at Vancouver"s Island, 7th May 1858, respecting the discovery of gold on Fraser and Thompson Rivers, near to the 51st parallel of north lat.i.tude, in North America.

The newspaper and specimen of gold dust referred to in Captain Prevost"s letter are also enclosed.

I am, etcetera, (Signed) H. Corby.

Herman Merivale, Esquire, Colonial Office.

_Enclosures Number 12_.

H.M.S. "Satellite," Esquimault, Vancouver"s Island, May 7, 1858.

I have the honour to report to you that considerable excitement has been occasioned recently in this neighbourhood by the discovery of gold on Fraser and Thompson Rivers, at about the position of the juncture of the latter with the former river, near to 51st parallel of north lat.i.tude.

The reports concerning these new gold diggings are so contradictory that I am unable to furnish you with any information upon which I can depend.

That gold exists is certain, and that it will be found in abundance seems to be the opinion of all those who are capable of forming a judgment upon the subject; but it is so obviously to the advantage of the surrounding community to circulate exaggerated, if not altogether false reports, for the purpose of stimulating trade, or creating monopolies, that it is most difficult to arrive at any correct conclusion, or to, obtain any reliable information. I have every reason to believe that the Indians have traded some quant.i.ty of gold with the officers of the Hudson"s Bay Company, and I am satisfied that individuals from this immediate neighbourhood who started off to the diggings upon the first intelligence of their existence, have come back with gold dust in their possession, and which they a.s.sert was washed by themselves; but whether such be really the case, or whether it was traded from the Indians, I am unable to determine. These persons all declare that at the present moment, although the yield is good, yet there is too much water in the rivers to admit of digging and washing to be carried on with facility; but that when the water falls somewhat, as the summer advances, that the yield will be abundant. I am inclined to think that this information is not far from the truth, for these persons, after obtaining a fresh stock of provision, have all returned to the diggings.

The excitement in Vancouver"s Island itself is quite insignificant compared to that in Washington and Oregon territories, and in California, and which, of course, is increased by every possible means by interested parties. The result has been that several hundred persons from American territory have already flocked to the newly reported auriferous regions, and by the last accounts fresh steamers, and even sailing vessels, were being chartered to convey pa.s.sengers to Puget Sound, or to Vancouver"s Island, whence they have to find their way to the diggings princ.i.p.ally by canoes.

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