NO. III.

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

Victoria, Vancouver's Island, October 29, 1856.

Sir,--1. I have the honour to acknowledge the receipt of your despatch,

Number 14, of the 4th of August, communicating the arrival of my

despatch, Number 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, scarcely makes any allusion to 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 these reports; though,

on the other hand, there is no reason to discredit them, as about 220

ounces of gold dust have 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 River, there is reason to

suppose that the gold region is extensive, and I entertain sanguine

hopes that future researches will develop 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.

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, etcetera, (Signed) James Douglas, Governor.

The Right Hon. H. Labouchere; etcetera, etcetera, etcetera.

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