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.

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