NO. VI.

_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.)

Since I had the honour of addressing you on the 15th 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 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.

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