COPIES OR EXTRACTS OF CORRESPONDENCE RELATIVE TO THE DISCOVERY OF GOLD IN THE FRASER'S RIVER DISTRICT, BRITISH NORTH AMERICA. Presented to both Houses of Parliament by Command of Her Majesty. July 2, 1858. LONDON: PRINTED BY GEORGE EDWARD EYRE AND WILLIAM SPOTTISWOODE, PRINTERS TO THE QUEEN'S MOST EXCELLENT MAJESTY. FOB HER MAJESTY'S STATIONERY OFFICE. 1858. [ 3 ] SCHEDULE. Number in Series. 10 From -whom. Governor Douglas to the Right Hon. H. Labouchere. The Right Hon. H. Labouchere to Governor Douglas. Governor Douglas to the Right Hon. H. Labouchere. The Right Hon. H. Labouchere to G overnor Douglas. Governor Douglas to the Right Hon. H. Labouchere. Governor Douglas to the Right Hon. H. Labouchere. Date and Number. Governor Douglas to the Right Hon. H. Labouchere. Governor Douglas to the Right Hon. H. Labouchere. Governor of the Hudson's Bay- Company to Secretary Sir E. Bulwer Lytton. Governor Douglas to the Right Hon. H. Labouchere. April 16, 1856 (No. 10.) Aug. 4, (No. 1856 14.) Oct. 29, 1856 (No. 28.) Jan. 24, 1857 (No. 5.) July 15, 1857 (No. 22.) SUBJECT. Dec. 29, 1857 (No. 35.) (Extract.) Jan. 22, 1858 (No. 1.) April 6, 185£ (No. 15.) June 3, 1858 May 8, 1858 (No. 19.) DISCOVERY OP GOLD on the Upper Columbia. Reports. Tax on persons digging, impossible to levy without a military force - ACKNOWLEDGES the preceding Despatch. Digging Licences not practicable to raise Revenue by issue of. Leaves to his discretion the means of maintaining order ..... PROGRESS OF THE DISCOVERIES, Hostility of the Indians, and exclusion by them of Americans. The number of diggers small and the district quiet - ACKNOWLEDGES receipt of the preceding Despatch . THE THOMPSON'S RIVER GOLD- FIELDS. White men prevented from digging by the Natives. Danger of Affrays in event of an influx of Adven' turers from Oregon. Protection of the Natives ------ EXCITEMENT IN THE UNITED STATEsP| and expected influx of persons from Oregon and Washington. Has issued a Proclamation declaring Rights of the Crown, which will be published in the United States. Licence Fee of 10*. a month. Progress of the discoveries. Offers to visit the Mines - LICENCE FEE raised from 10*. to 21*. a month ------ PROGRESS OF DISCOVERY. . Hostility of the Indians and danger of affrays. Necessity for the ultimate intervention of Her Majesty's Government to preserve order. Refusal of persons from the United States, notwithstanding the Proclamation, to take out Licences - - ENCLOSES Extracts of two Letters from Governor Douglas, dated 22d and 25th March, reporting result of exploration of the Fraser's and Thompson's rivers. The Governor anticipates much suffering at the diggings from scarcity of food, and •. trusts that Her Majesty's Government will take measures for the prevention of crime ------ ARRIVAL OF MINERS from San Francisco. The diggings flooded. Accidents in the .rapids of Fraser's River. Prospects of the country - - . A 2 Page 6 7 10 10 11 12 S*- & iPfi [ 4 ] ScwEDVi.v~^-continued. Number in From whom. Date and Number. SUBJECT. Page. Series. 11 Governor of the Hudson's Bay Company to Secretary Sir E. Bulwer Lytton. June 24, 1858 ENCLOSES Extracts of Letters from Governor Douglas, dated 19, 27, and 30 April; further accounts of the Diggings. Arrival of Emigrants from San Francisco, and return of parties of Miners on account of the flooded state of the Rivers - - - - 14 12 The Secretary cf the Admiralty to Herman Mer ■ vale, Esq., Colonial Office. June 26, 1858 ENCLOSES Extract of a Letter from the Commander of H.M.S. Satellite. Excitement in Oregon and Washington territory, and large Emigration to the Gold Region. Anticipated want and disturbances there 16 13 Secretary. Sir E. July 1, 1858. PUBLIC ORDER AND GOVERN Bulwer Lytton to (No. 2.) MENT of the Territory • H.M.'s Go Governor Douglas. [ vernment have under consideration measures to establish. The assertion by Proclamation of the Rights of the Crown approved. Resort of foreigners to the Gold Fields, not to oppose - 17 APPENDIX. Governor Douglas to Secretary of the Hudson's Bay Company. Feb. 18, 1858 SMALL amount of Gold exported compared with that produced by the Mines of California during the first eight months after their discovery 5 C 0 II a E S P 0 N DIE N 0 E RELATIVE TO THE DISCOVERY OF GOLD IN THE FRASER'S RIVER DISTRICT, IN BRITISH NORTH AMERICA, No. 1. Copy of a DESPATCH from Governor Douglas to the Right Hon. Henry Labouchere, M.P. (No. 10.) Victoria, Vancouver's Island, April 16, 1856. (Received June 30, 1856.) SlR, (Answered, No. 14, August 4, 1856.) I hasten to communicate for the information of Her Majesty's Government a discovery of much importance, made known to me by" Mr. Angus McDonald, Clerk in charge of Fort Colvile, one of the Hudson's Bay Company's Trading Posts on the Upper Columbia District. That gentleman reports, in a letter dated on the 1st of March last, that gold has been found in considerable quantities within the British territory, on the Upper Columbia, and that he is moreover of opinion that valuable deposits of gold will be found in many other parts of that country; he also states that the daily earnings of persons then employed in digging gold were ranging from 21. to 8/. for each man. Such is the substance of his report on that subject, and I have requested him to continue his communications in respect to1 any further discoveries made. I do not know if Her Majesty's Government will consider it expedient to raise a revenue in that quarter, by taxing all persons engaged in gold digging, but I may remark, that it will be impossible to levy such a tax without the aid of a military force, and the expense in that case would probably exceed the income derived from the mines. I will not fail to keep you well informed in respect to the extent and value of the gold discoveries made; and circumstances will probably be the best indication of the course which.it may be expedient to take, that is, in respect to imposing a tax, or leaving the field free and open to any persons who may choose to dig for gold. Several interesting experiments in gold washing have been lately made in this colony, with a degree of success that will no doubt lead to further attempts for the discovery of the precious metal. The quantity of gold found is sufficient to prove the existence of the metal, and the parties engaged in the enterprise entertain sanguine hopes of discovering rich and productive beds. I have, &c. (Signed) JAMES DOUGLAS, The Right Hon. Henry Labouchere, Governor. Wai &c. &c. &c. No, 1. No. 2. Copy of a DESPATCH from the Right Hon. Henry Labouchere to Governor Douglas. (No. 14.) Sir, Downing Street, August 4, 1856. I have to acknowledge the receipt of your Despatch, No. 10, of the 16th April last, reporting the discovery of gold within the British territory on the Upper Columbia River district. A 3 No. 2. J0*t VT'; 6 CORRESPONDENCE relative to the DISCOVERY of GOLD in the In the absence of all effective machinery of Government, I conceive that it would be quite abortive to attempt to raise a revenue from licences to dig for gold in that region. Indeed, as Her Majesty's Government do not at present look for a revenue from this distant quarter of the British dominions, so neither are they prepared to incur any expense on account of it. I must, therefore, leave it to your discretion to determine the best means of preserving order in the event of any considerable increase of population flocking into this new gold district; and 1 shall rely on your furnishing me with full and regular accounts of any event of interest or importance which may occur in consequence of this discovery. I have, &c. To Governor Douglas, (Signed) H. LABOUCHERE. &c, &c. No. 3. No. 3. Copy of a DESPATCH from Governor Douglas to the Right Hon. Henry Labouchere, M.P. (No. 28.) Victoria, Vancouver's Island, October 29, 1856. o (Received January 14, 1857.) ;~,IR' (Answered, No'. 5, January 24, 1857.) 1. I have the honour to acknowledge the receipt of your Despatch, No. 14, of the 4th of August, communicating the arrival of my Despatch, No, 10, of the 16th April last, in which was reported the discovery of gold within the British territory in the Upper Columbia River District. 2. I have, since the date of that letter, received several other communications from my correspondent in that part of the country, who, however, searcely makes any allusion to the subject of the gold discovery; but I have heard through other almost equally reliable sources of information, that the number of persons engaged in gold digging is yet extremely limited, in consequence of the threatening attitude of the native tribes, who being hostile to the Americans, have uniformly opposed the entrance of American citizens into their country. 3. The people from American Oregon are therefore excluded from the gold district, except such, as resorting to the artifice of denying their country, succeed in passing for British subjects. The persons at present engaged in the search of gold are chiefly of British origin and retired servants of the Hudson's Bay Company, who, being well acquainted with the natives, and connected by old acquaintanceship and the ties of friendship, are more disposed to aid and assist each other in their common pursuits than to commit injuries against persons or property. 4. They appear to pursue their toilsome occupation in peace, and without molestation from the natives, and there is no reason to suppose that any criminal act has been lately committed in that part of the country. # * # 5. It is reported that gold is found in considerable quantities, and that several persons have accumulated large sums by their labour and traffic, but I cannot vouch for the accuracy of those reports; though, on the other hand, there is no reason to discredit them, as about 220 ounces of gold dust has been brought to Vancouver's Island direct from the Upper Columbia, a proof that the country is at least auriferous. From the successful result of experiments made in washing gold from the sands of the tributary streams of Fraser's River there is reason to suppose that the gold region is extensive, and I entertain sanguine hopes that future researches will develope stores of wealth, perhaps equal to the gold fields of California. The geological formations observed in the "Sierra Nevada "of California being similar in character to the structure of the corresponding range of mountains in this latitude, it is not unreasonable to suppose that the resemblance will be found to include auriferous deposits. K 'MWrn FRASER'S RIVER DISTRICT, in BRITISH NORTH AMERICA. 7 6. I shall not fail to furnish you with full and regular accounts of every event of interest connected with the gold district, which may from time to time occur. I have, &c. The Right Hon. H. Labouchere, (Signed) JAMES DOUGLAS, &c. &c. &c. Governor. No. 4. Copy of a DESPATCH from the Right Hon. Henry Labouchere to Governor Douglas. (No. 5.) SiRj Downing Street, January 24, 1857« I have to acknowledge your Despatch (No. 28) of the 29th October 1856, relative to the discovery of gold in the Upper Columbia River district. I have, &c. Governor Douglas, (Signed) H. LABOUCHERE. &c. &c. No. 4. No. 5. km Copy of a DESPATCH from Governor Douglas to the Right Hon. Henry No. 5. c(tfo. 22.) Sir, Labouchere, M.P. Victoria, Vancouver's Mand, July 15, 1857« (Received, September 18, 1857.) 1. I have the honour of communicating for your information the substance of advices which I have lat||y received from the interior of the continent north of the 40th parallel of latitude, corroborating the former accounts from that quarter respecting the auriferous character of certain districts of the country on the right bank of the CoMmbia River, and of the extensive table land which divides it from Fraser's River. 2. There is, however, as yet a degree of uncertainty respecting the productiveness of those gold fields, for reports vary so much on that point, some parties representing the deposits as exceedingly rich, while others are of opinion that they will not repay the labour and outlay of working, that I feel it would be premature for me to give a decided opinion on the subject. 3. It is, however, certain that gold has been found in many places by washing the soil of the river beds and also of the mountain sides; but, on the other hand, the quantities hitherto collected are inconsiderable, and do not lend much support to the opinion entertained of the richness of those deposits ; so that the question as to their ultimate value remains thus undetermined, and will probably not be decided until more extensive researches are made. 4. A new element of difficulty in exploring the gold country has been interposed through the opposition of the native Indian tribes of Thompson's River, who have lately taken the high-handed, though probably not unwise course, of expelling all the parties of gold diggers, composed chiefly of persons from the American territories, who had forced an entrance into their country. They have also openly expressed a determination to resist all attempts at working gold in any of the streams flowing into Thompson a River, both from a desire to monopolize the precjpis metal for their own benefit, and from a well-founded impression that the shoals of salmon which annually ascend those rivers and furnish the principal food of the inhabitants, will be driven off, and prevented from making their annual migrations from the sea.. 5. The officers in command of the Hudson's Bay Company's posts in that quarter, have received orders carefully to respect the feelings of the natives in that matter, and not to employ any of the Company's servants in washing out gold, without their full approbation and consent. There is, therefore, nothing to apprehend on the part of the Hudson's Bay Company's servants, but there is much reason to fear that serious affrays may take place between the natives and the motley adventurers .who -^11 be attracted by the reputed wealth of the country, from, the United States' possessions in Oregon, and may probably A" 4 W? A, 8 CORRESPONDENCE relative to the DISCOVERY of GOLD in the attempt to overpower the opposition of the natives by force of arms, and thus endanger the peace of the countiy. 6. I beg to submit, if in that case, it may not become a question whether the natives are not entitled to the protection of Her Majesty's Government, and if an officer invested with the requisite authority should not, without delay, be appointed for that purpose. I have, &c. The Right Hon. H. Labouchere, (Signed) JAMES DOUGLAS, &c. &c. &c. Governor. No. 6. No. 6. End. Nos. 1, 2. moving the earthy Extract of a DESPATCH from Governor Douglas to the Right Hon. Henry Labouchere, M.P., dated Victoria, Vancouver's Island, December 29, 1857- (Received March 2, 1858.) (No. 35.) Since I had the honour of addressing you on the 15th of July last, concerning the gold fields in the interior of the country north of the 49th parallel of latitude, which, for the sake of brevity, I will hereafter speak of as the | Couteau mines" (so named after the tribe of Indians who inhabit the country), I have received further 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 soil, and of washing implements for separating the gold from the matrix, and have therefore to pick it out with 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 measures 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's River and Thompson's River districts, within which are situated the Couteau mines; and forbidding all persons to dig or disturb the soil in search of gold, until authorized 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 legalize 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. FRASER'S RIVER DISTRICT, in BRITISH NORTH AMERICA. 9 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 enquiring into the state of the country, and authorize 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. Enclosure 1 in No. 6. Proclamation by his Excellency James Douglas, Governor of Vancouver's Island and its Dependencies, &c. &c. Whereas by law all mines of gold, and all gold in its natural place of deposit, within the districts of Fraser's River and of Thompson's River, commonly known as the "Quaatlan," | Couteau," and "Shuswap " countries, whether on the lands of the Queen or of any of Her Majesty's subjects belong to the Crown. And whereas information has been received by the Government that gold exists upon and in the soil of the said districts, and that certain persons have commenced, or are about to commence, searching and digging for the same for their own use, without leave or other authority from Her Majesty. Now, I, James Douglas, the Governor aforesaid, on behalf of Her Majesty, do hereby publicly notify and declare that all persons who shall take from any lands within the said districts any gold, metal, or ore containing gold, or who shall dig for and disturb the soil in search of gold, metal, or ore without having been duly authorized in that behalf by Her Majesty's Colonial Government, will be prosecuted, both criminally and civilly, as the law allows. And I further notify and declare that such regulations as may be found expedient will be prepared and published, setting forth the terms on which licences will be issued for this purpose on the payment of a reasonable fee. Given under my hand and seal at Government Office, Victoria, this 28th day of December, in the year of our Lord one thousand eight hundred and fifty-seven, and in the twenty-first year of Her Majesty's reign. (Signed) James Douglas, 'Governor. By his Excellency's command. (Signed) .Richard Golledge, Secretary. God save the Queen. Enclosure 2 in No. 6. Government House, Victoria, December 29, 1857. With reference to the proclamation issued on the 28th of December, declaring the rights of the Crown in respect to gold found in its natural state of deposit within the districts of Eraser's River and of Thompson's River, commonly known as the Qu&atlan, Couteau, and Shuswap countries, his Excellency the Governor, has been pleased to establish the following provisional regulations, under which licences may be obtained to dig, search for, and remove the same. 1st. From and after the first day of February next, no person will be permitted to dig, search for, or remove "gold, on or from any lands, public or private, without first taking out and paying for a license in the form annexed. 2nd. For the present, and pending further proof of the extent and productiveness of the gold deposits, the licence fee has been fixed at 10s. per month to be paid in advance ; but it is to be understood that the rate is subject to future adjustment as circumstances may render expedient. 3rd. The licences can be obtained at Victoria, Vancouver's Island, until a Commissioner is appointed by his Excellency the Governor to carry those regulations into effect, and who will be authorized to receive the fee payable thereon. 4th. Rules adjusting the extent and position of land, to be covered by each licence, and for the prevention of confusion, and the interference of one licence with another, will be regulated by the said Commissioner. (Signed) James Douglas, Governor. By his Excellency's command, (Signed) Richard Golledge, Secretary. End. I in No. 6. B *P**r- Up A-. 10 CORRESPONDENCE relative to the DISCOVERY o/GOLD in the Sir Ng(. 7. No. 7- Copy of a DESPATCH from the Governor of Vancouver's Island to the Right Hon. H. Labouchere, M.P. (No. 1.) Victoria, Vancouver's Island, January 22, 1858. (Received March 15, 1858.) 1. With reference to the Proclamation and Regulations legalizing the search for gold in the districts of Fraser's River and Thompson's River, transmifpd with my Despatch No. 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 were induced to make that change through a desire to place a larger 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, &c. (Signed) JAMES DOUGLAS, To the Right Hon. Henry Labouchere, Governor. &c. &c. &c. No. 8. No. 8. Copy of a DESPATCH from Governor Douglas to the Right Hon. H. Labouchere, M.P. (No.15.) M . , \ . n Sir, Victoria, Vancouver's Island, April oth, 1858. 1. Since I had last the honour of addressing you in my Despatch No. 35, of the 29th of December last, in reference to the discovery ofgold in the Couteau, or Thompson's 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 all 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 time 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 terrilpries 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. 1 will, however, make it a part of my duty to keep, you well informed in respect to the state of the gold country. ^feT^. >w ****3i ■^*r >*-# 1 =?T The. Great Falls ofFraserJL. are- about? SO imJUs above the ForlC. FROM I O IT N T R T % Hags J HOPE MimJbts above Torts Langley John. Arm crwsrm&o. Zitko ■ 8& ^tf^ FRASER'S RIVER DISTRICT, in BRITISH NORTH AMERICA. 11 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 my former report. 7. In addition to the diggings-- before known on Thompson's River and its tributary streams, a valuable deposit has been recently found by the natives on a bank of Fraser's River about five 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's 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's 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, have been published in the newspapers of Oregon and Washington territories, and that notwithstanding some sevent}r or eighty adventurers from the American side have gone by the way of Fraser's river to the Couteau mines without faking 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. The Right Hon. Henry Labouchere, M.P. &c. &c. &c. I have, &c. (Signed) JAMES DOUGLAS, Governor. [An explanatory sketch of Fraser's River is forwarded with this report.~\ No. 9- Copy of a LETTER from the Governor of the Hudson's Bay Company to the Right Hon. Sir E. Bulwer Lytton, M.P. SlJR, Hudson Bay House, June 3, 1858. I have the honour to enclose for your information extracts of two letters received by the last mail from Governor Douglas, dated respectively, Victoria, Vancouver's Island, 22nd and 25th March, giving the latest information from the gold fields recently discovered on the North-west Coast of America. I have, &c. Sir Edward Bulwer Lytton, Bart, (Signed).! JOHN SHEPHERD, &c, &c, &c. Governor. No. 9. f. xJ0*r W^ End. 1 ia No. 9. 12 CORRESPONDENCE relative to the DISCOVERY K& #s*i^r FRASER'S RIVER DISTRICT, i» BRITISH NORTH AMERICA. 17 ■No. 13. Copy of a DESPATCH from Secretary Sir E. Bulwer Lytton to Governor Douglas. PPfe 2.) Sir, Downing Street, July 1, 1858. I have to acknowledge your Despatch No. 195 of the 8th ultimo, in continuation of former DespatchesfMnforming the Secretary of State from time to time of the progress of the gold discoveries on Fraser's 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 licenses, 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 contemplate 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 su'Mects 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's 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 impo|lince of caution and delicacy in dealing with those maui^ld 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 milt 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, &c. Governor Douglas, (Signed) E. BULWER LYTTON. &c. &c. No. 18. APPENDIX. EXTRACT of a Letter from James Douglas, Esq., to W. G. Smith, Esq., Secretary of the Hudson's Bay Company, dated Victoria, Vancouver's Island, February 18, 1858. I They say that the country is as rich as any part of California, though we have as yet no satisfactory evidence of that fact, there being circumstances indeed which rather favour the opposite conclusion. It is, for instance, well known that the export of gold dust from the state of California exceeded 150,000 ounces during the eight months following the discovery of gold in that country, and that the stream of wealth had in that time forced its way into all the neighbouring countries. We had a good share of it at Fort Vancouver, whexe we purchased at the Company's shops about 8,000 ounces in the course of a few months, and that formed but a small part of the wealth that had been actually brought into the country. •9m 18 CORRESPONDENCE relative to the DISCOVERY of GOLD, Sec. " Now the ascertained export from Thompson's River up to the present time does not much exceed 500 ounces, and admitting, for the sake of comparison, that an equal quantity still remains in the hands of the diggers and at our own establishment in Thompson's River, that would only give a total yield since the discovery of about 1,000 ounces, which, after making due allowance for the disproportion in the number and skill of the mining population in the two countries, is relatively a small return compared with that of the first eight months of the gold miners in California, I The conclusion is obvious, but still Thompson's River may turn out to be a veiy valuable gold district." LONDON: Printed by George E. Eyke and William Spottisvtoom, Printers to the Qneen's most Excellent Majesty. For Her Majesty's Stationery Office. 4 RECONNAISSANCE FRASER'S RIVER FROM FORT HOPE TO THE FORKS. FORT YALE FORT HOPE Presented to both houses of parliament, by Commands of Her Majesty . — July 1858.