"Again: 'The climate forbids effectual fertility, and the distance from more habitable regions forbids effectual transit. The regions to be colonized are mostly very cold and very barren.' If such is the case, of what value, applied to the new Company, are his assertions: 'Civilization destroys wild animals,' &c., and 'The hunters are as perishable,' &c.? The shareholders of the International Financial Society need have no fears of a failure of the fur trade, whatever may become of the 'sale of lands to new settlements, and the communication with British Columbia.'

"Again: 'In fact, the whole of the Red River region, such as it is, is best accessible from the United States, and, in case of war, would be exposed to an inroad from Minnesota, which adjoins it, without the possibility of aid from England.' If the editor would undertake to travel from St. Paul to Pembina (about 600 miles), and also read the accounts of expeditions in pursuit of hostile Indians in Minnesota, he would quickly get rid of his fear of the Americans ever invading the British North Western Territory. One of my correspondents, an old Indian trader, writes me on the 30th ult. that he had just reached Pembina, after a 'dirty and disagreeable trip' of 25 days from St. Paul. So long as the British Indians are treated as they have been, they could, and they would, sweep Minnesota clean of any army, even although as invincible as the 'army of the Potomac.' Even if the redskins did not want help, the United States Indians would unite with the British Indians, in order to be revenged on the pale faces.

"To my mind, the worst feature in the new Company is that of allowing a foreigner (American) to hold office. He owes allegiance to the United States, and his position gives him, knowledge which no American should possess. 'Blood is thicker than water,' says the proverb. Besides, he has his own fur trade to attend to, and it is as true now, as it was in old times, that 'no man can serve two masters.' Although he should withdraw from his own firm, still 'blood is thicker than water.' As to the idea that, being in the fur trade, his experience and influence will benefit the new Company, will any furrier believe that? If the new Company will sell all the furs they may have in their warehouse at the time of their regular sales, HOLDING BACK NONE TO RAISE PRICES, they will always have the confidence of the buyers, always get full value, and never require the influence or experience of any man. I am, unfortunately for myself, not a shareholder in either the old or the new Company, but if I were, I would never rest satisfied while an American was in the management.

"Should you ever visit this city, I will feel honoured if you call on me, and be glad to hear from you, or be of service to you, at any time.

"With great respect, yours truly,
"WM. MACNAUGHTAN.

"E. W. Watkin, Esquire,
"Care Hon. Hudson's Bay Co., London."

"Dunean, Inverness,
"29th October, 1872. Midnight.

"My dear Sir Edward,

"Your letter reached me to-night, just in the nick of tune, and I enclose a letter which I was just about to send to the Editor of the London 'Standard.' Please send it to that or any other paper you like, barring the 'Times,' 'Saturday Review,' or 'Pall Mall Gazette.' I wrote another letter to the 'Times,' by which they corrected the discrepancy between their statement of the 18th Oct. and that of the 26th, that the Emperor had three channels to consider, but they never published or acknowledged my letter. I suppose because it exposed their blunder, and attacked the Government. I had written both to the 'Pall Mall' and 'Saturday Review' in summer, pointing out that we had virtually surrendered our position by departing from the words of the Treaty of 1846, on the American demand; but for certain reasons they would not publish the letter, and you will observe that they now refrain from laying the blame on our Government. You must read carefully the articles in the 'Times' of 18, 25 and 26 October, and in the 'Standard' of Saturday last. The 'Standard' attacks our Government fairly and ably. You may give my name as the writer of the enclosed letter, but not for publication, as I do not wish to make an enemy of the 'Times.' Send me a copy of the paper in which it may appear, or make any use you may like of it.

"I send you Tuckerman's Report. It is very satisfactory and re- assuring.