"We number now about 750 souls, and, according to the testimony of several medical men, who have had opportunities of judging, form the healthiest and strongest Indian community on the coast.

"Next, as to our progress in law and order. It is in this aspect to the outward observer, perhaps more than in any other, that our advancement appears both real and striking. From a great number of lawless and hostile hordes has been gathered out and established one of the most law-abiding and peace-loving communities in the province. What to the most sanguine minds seemed at least a generation of time distant has been brought about in a few years. The isolated germ of a Christian community gathered strength year by year, while every opposing force in the vicinity gradually weakened and at last succumbed. The law has triumphed. The liquor-selling vessels have long since ceased their traffic. The Indians who took up the trade with their canoes have also been stopped. Drunkenness, or even liquor-drinking, over a very large district are now things of the past. The rushing to Victoria has subsided into rare and legitimate visits, and peace, order, and security reign in all the country round.

"The local means which have been instrumental in bringing about these salutary changes were—First, we called out a corps of Native constables, and afterwards selected, irrespective of rank, twelve older men of good character to act as Native Council, and with these we have deliberated upon every matter affecting the welfare of our settlement. The Council has no pay, but only a badge of office, worn on stated occasions. The constables, in addition to a simple uniform, receive a small remuneration when on duty.

"As our settlement increased, and our work in the interests of peace became more extended, I have increased the two Native forces year by year until they now number over sixty men, and include several chiefs. And further, in order to utilize these forces, and have every settler under proper surveillance, I have divided all the male community into ten companies, each company having an equal number of constables and councilmen, who act as guides and monitors.

"Again, in order to enlist the energies of our younger men for the public weal, I have organized a fire brigade of six companies and ten to each company. These, I trust, will prove of real service to the new town which is about to be built. And here I would acknowledge with thankfulness the prompt help which has occasionally reached us from the Provincial Government, and without which, of course, our local machinery would have proved altogether inadequate for all emergencies.

"Lastly, as to our material and social progress. This, too, is already encouraging, but by no means so complete as we hope to see it. The slow progress of the Indians in this cause cannot be matter for wonder when we consider—first, Their ignorance and inaptitude to find out for themselves any fresh and permanent modes of industry; secondly, Their want of capital, owing to which civilization may tend to the impoverishment of the Indians by calling for an increased outlay in their expenses without augmenting their income. Having these facts before me, I have endeavoured to help and guide the males under my influence to fresh modes of industry, and though our success has not been very great, it is at least encouraging.

"Our first work of a secular kind was to establish a village store; for, having left Fort Simpson, we soon felt the want of supplies. I may here explain the Hudson's Bay Company refused to establish a shop in our midst, and I feared to encourage the trading schooners to come to us, as they invariably carried intoxicating liquor for sale, so we determined to keep the village trade in our own hands and appropriate the profits to the public works of our settlement.

"To this end we first purchased a schooner, one-third of the money being given by the Governor, Sir James Douglas. The schooner took down the products of our industry to Victoria, and returned laden with goods for our store, proving a pecuniary success and a capital training for the Indians who were employed.

"After some years the Hudson's Bay Company were willing to carry our freight on their steamer, so we sold the schooner, and I refunded to the Government account a proportionate part of the sale money.

"The managing of our village trade, principally by Indians, has given me much anxiety, and exposed me to much slander and abuse from white traders; but seeing the good results from my efforts in this way to our settlement I have kept on, and feel loath to give it up till I can hand it over entirely into the hands of the Natives.