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named after the tribe of Indians who inhabit the country), I have received farther intelligence from my correspondents in that quarter.

It appears from their reports that the auriferous character of the country is becoming daily more extensively developed, through the exertions of the native Indian tribes, who, having tasted the sweets of gold finding, are devoting much of their time and attention to that pursuit.

They are, however, at present almost destitute of tools for moving the soil, and of washing implements for separating the gold from the earthy matrix, and have therefore to pick it out with their knives, or to use their fingers for that purpose; a circumstance which in some measure accounts for the small products of gold up to the present time, the export being only about 300 ounces since the 6th of last October.

The same circumstance will also serve to reconcile the opinion now generally entertained of the richness of the gold deposits by the few experienced miners who have seen the Couteau country, with the present paucity of production.

The reputed wealth of the Couteau mines is causing much excitement among the population of the United States territories of Washington and Oregon, and I have no doubt that a great number of people from those territories will be attracted thither with the return of the fine weather in spring.

In that case, difficulties between the natives and whites will be of frequent occurrence, and unless measures of prevention are taken, the country will soon become the scene of lawless misrule.

In my letter of the 15th of July, I took the liberty of suggesting the appointment of an officer invested with authority to protect the natives from violence, and generally, so far as possible, to maintain the peace of the country. Presuming that you will approve of that suggestion, I have, as a preparatory step towards the proposed measure for the preservation of peace and order, this day issued a proclamation declaring the rights of the Crown in respect to gold found in its natural place of deposit, within the limits of Fraser River and Thompson River districts, within which are situated the Couteau mines; and forbidding all persons to dig or disturb the soil in search of gold, until authorised on that behalf by Her Majesty’s Government.

I herewith forward a copy of that proclamation, and also of the regulations since published, setting forth the terms on which licences will be issued to legalise the search for gold, on payment of a fee of ten shillings a-month, payable in advance.

When mining becomes a remunerative employment, and there is a proof of the extent and productiveness of the gold deposits, I would propose that the licence fee be gradually increased, in such a manner, however, as not to be higher than the persons engaged in mining can readily pay. My authority for issuing that proclamation, seeing that it refers to certain districts of continental America, which are not, strictly speaking, within the jurisdiction of this Government, may, perhaps, be called in question; but I trust that the motives which have influenced me on this occasion, and the fact of my being invested with the authority over the premises of the Hudson’s Bay Company, and the only authority commissioned by Her Majesty within reach, will plead my excuse. Moreover, should Her Majesty’s Government not deem, it advisable to enforce the rights of the Crown, as set forth in the proclamation, it may be allowed to fall to the ground, and to become a mere dead letter.

If you think it expedient that I should visit the Couteau Mines in course of the coming spring or summer, for the purpose of inquiring into the state of the country, and authorise me to do so, if I can for a time conveniently leave this colony, I freely place my services at the disposal of Her Majesty’s Government.

No. VII.

The Governor of Vancouver’s Island to the Right Hon. H. Labouchere, M.P.

Victoria, Vancouver’s Island, January 22, 1858.

(Received March 15, 1858.)

Sir,—1. With reference to the proclamation and regulations legalising the search for gold in the districts of Fraser River and Thompson River, transmitted with my despatch, Number 35, of the 29th of December last, I have now the honour to communicate for your information, that we have since that date raised the licence fee from ten shillings to twenty-one shillings a-month, payable in advance, which is the present charge for gold licences.

2. We are induced to make that change through a desire to place a large amount of revenue at the disposal of Government to meet the expense of giving protection to life and property in those countries, and at the same time from a well-founded conviction that persons really bent upon visiting the gold district will as readily pay the increased as the lower rate of charge.

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

To the Right Hon. Henry Labouchere, etcetera, etcetera, etcetera.

No. VIII.

Governor Douglas to the Right Hon. H. Labouchere, M.P.

Victoria, Vancouver’s Island, April 6, 1858.

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 passed 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 circumstance 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 quantities 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 quantity 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 assume 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 accumulations 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, asserting 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 assured 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 amassing 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 passengers 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