BARTER WITH NATIVES.

These Esquimaux had nothing to eat, and no other clothing than their ordinary double dresses of fur; they would not eat our biscuit or salt pork, but took a small quantity of bear's blubber and some water. They slept in a sitting posture, with their heads leaning forward on their breasts. Next morning we travelled about 10 miles further, by which time we were close to Cape Victoria; beyond this I would not go, much as they wished to lead us on; we therefore landed, and they built us a commodious snow-hut in half an hour; this done, we displayed to them our articles for barter—knives, files, needles, scissors, beads, etc.—expressed our desire to trade with them, and promised to purchase everything which belonged to the starved white men, if they would come to us on the morrow. Notwithstanding that the weather was now stormy and bitterly cold, two of the natives stripped off their outer coats of reindeer skin and bartered them for a knife each.

Despite the gale which howled outside, we spent a comfortable night in our roomy hut.

Next morning the entire village population arrived, amounting to about forty-five souls, from aged people to infants in arms, and bartering commenced very briskly. First of all we purchased all the relics of the lost expedition, consisting of six silver spoons and forks, a silver medal, the property of Mr. A. M'Donald, assistant surgeon, part of a gold chain, several buttons, and knives made of the iron and wood of the wreck, also bows and arrows constructed of materials obtained from the same source. Having secured these, we purchased a few frozen salmon, some seals' blubber and venison, but could not prevail upon them to part with more than one of their fine dogs. One of their sledges was made of two stout pieces of wood, which might have been a boat's keel.

INTELLIGENCE OF FRANKLIN'S SHIPS.

All the old people recollected the visit of the 'Victory.' An old man told me his name was "Ooblooria:" I recollected that Sir James Ross had employed a man of that name as a guide, and reminded him of it; he was, in fact, the same individual, and he inquired after Sir James by his Esquimaux name of "Agglugga."

I inquired after the man who was furnished with a wooden leg by the carpenter of the 'Victory:' no direct answer was given, but his daughter was pointed out to me. Petersen explained to me that they do not like alluding in any way to the dead, and that, as my question was not answered, it was certain the man was no longer amongst the living.

None of these people had seen the whites; one man said he had seen their bones upon the island where they died, but some were buried. Petersen also understood him to say that the boat was crushed by the ice. Almost all of them had part of the plunder; they say they will be here when we return, and will trade more with us; also that we shall find natives upon Montreal Island at the time of our arriving there.

Next morning, 4th March, several natives came to us again. I bought a spear 6½ feet long from a man who told Petersen distinctly that a ship having three masts had been crushed by the ice out in the sea to the west of King William's Island, but that all the people landed safely; he was not one of those who were eye-witnesses of it; the ship sunk, so nothing was obtained by the natives from her; all that they have got, he said, came from the island in the river. The spear staff appears to have been part of the gunwale of a light boat. One old man, "Oo-na-lee," made a rough sketch of the coast-line with his spear upon the snow, and said it was eight journeys to where the ship sank, pointing in the direction of Cape Felix. I can make nothing out of his rude chart.

RAE'S STATEMENTS CONFIRMED.