To Governor Douglas, etcetera, etcetera.

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.