No. 28

1. I have the honor to acknowledge the receipt of your Despatch No
14, of the 4th of August, communicating the arrival of my Despatch No
10, of the 16th of 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 subject of 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, nor indeed do I apprehend any difficulty in preserving order
among those men, so long as the heterogeneous population of American
Oregon are excluded from the gold district.

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 those reports, though on
the other hand, there is no reason to discredit them, as about 220
ounces of Gold dust, has 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 Frasers 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.

6. I shall not fail to furnish you with full and regular accounts
of every event of interest, connected with the gold district, which may
from time to time occur.