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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 assumes 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 passage 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 principal 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 latitude, 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 latitude.

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 quantity 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 assert 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 passengers to Puget Sound, or to Vancouver's Island, whence they have to find their way to the diggings principally by canoes.

I have heard that all the crews of the ships in Puget Sound have deserted, and have gone to the diggings; I am happy to say that as yet I have not lost a single man from the "Satellite" since the information was received, and I have every reason to hope that I may not be unfortunate in this respect, although, doubtless, soon the temptations to desert will be of no ordinary character.

NO. XIII.

_Secretary Sir E. Bulwer Lytton to Governor Douglas_.

Downing Street, July 1, 1858.

Sir,--I have to acknowledge your despatch of the 8th ult, in continuation of former despatches, informing the Secretary of State from time to time of the progress of the gold discoveries on Fraser River, and the measures which you had taken in consequence. I am anxious not to let the opportunity of the present mail pass without informing you that Her Majesty's Government have under their consideration the pressing necessity for taking some steps to establish public order and government in that locality, and that I hope very soon to be able to communicate to you the result.

In the meantime, Her Majesty's Government approve of the course which you have adopted in asserting both the dominion of the Crown over this region, and the right of the Crown over the precious metals. They think, however, that you acted judiciously in waiting for further instructions before you endeavoured to compel the taking out of licences, by causing any force to be despatched for that purpose from Vancouver's Island.

They wish you to continue your vigilance, and to apply for instructions on any point on which you may require them. They are, however, in addition, particularly anxious to impress on you, that while Her Majesty's Government are determined on preserving the rights, both of government and of commerce, which belong to this country, and while they have it in contemplation to furnish you with such a force as they may be able to detach for your assistance and support in the preservation of law and order, it is no part of their policy to exclude Americans and other foreigners from the gold fields. On the contrary, you are distinctly instructed to oppose no obstacle whatever to their resort thither for the purpose of digging in those fields, so long as they submit themselves, in common with the subjects of Her Majesty, to the recognition of her authority, and conform to such rules of police as you may have thought proper to establish. The national right to navigate Fraser River is, of course, a separate question, and one which Her Majesty's Government must reserve.

Under the circumstance of so large an immigration of Americans into English territory, I need hardly impress upon you the importance of caution and delicacy in dealing with those manifold cases of international relationship and feeling which are certain to arise; and which, but for the exercise of temper and discretion, might easily lead to serious complications between two neighbouring and powerful states.

It is impossible by this mail to furnish you with any instructions of a more definite character. Her Majesty's Government must leave much to your discretion on this most important subject; and they rely upon your exercising whatever influence and powers you may possess in the manner which from local knowledge and experience you conceive to be best calculated to give development to the new country, and to advance imperial interests. I have, etcetera, (Signed) E. Bulwer Lytton.

Governor Douglas, etcetera, etcetera.

CHARTER INCORPORATING THE HUDSON'S BAY COMPANY.

In 1670, a royal charter was granted by Charles the Second, for incorporating the Hudson's Bay Company. The grant to the company was of "the sole trade and commerce of all those seas, straits, bays, rivers, lakes, creeks, and sounds, in whatsoever latitude they shall be, that lie within the entrance of the straits, commonly called Hudson's Straits, together with all the lands and territories upon the countries, coasts, and confines of the seas, bays, lakes, rivers, creeks and sounds aforesaid, that are not already actually possessed by or granted to any of our subjects, or possessed by the subjects of any other Christian prince or State, with the fishing of all sorts of fish, whales, sturgeons, and all other royal fishes in the seas, bays, inlets, and rivers within the premises; and the fish therein taken, together with the royalty of the sea upon the coasts within the limits aforesaid, and all mines royal, as well discovered as not discovered, of gold, silver, gems, and precious stones to be found or discovered within the territories, limits, and places aforesaid;" and the charter declares that "the said land be from henceforth reckoned as one of our plantations or colonies in America, called Rupert's Land."

COMPARISON BETWEEN PRICE OF LABOUR IN AUSTRALIA AND CALIFORNIA OR BRITISH COLUMBIA.

_From the Times' Correspondent_.

I take the wages in Australia from a Melbourne paper of 16th March, which gives the wages current at that time! I received it direct a few days ago. I reduce our American currency into sterling at 48 pence to the dollar, that being about its current value here.

_Melbourne Wages_.

Married couples (servants), 60 pounds to 70 pounds per annum; female servants,
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