No. 185

The latest intelligence received from Mr Sanders the Assistant Gold Commissioner for the district of Fort Yale is very interesting
and of a cheering character.

2. That gentleman in his last report dated the 28th June
states that the accounts from Prince Alberts Flat continue to be
favourable, and the Miners who have taken up claims there, assure him
that the pay streak yields five cents to the pan, which they consider
a fair return for their labour, and Mr Sanders is of opinion that,
the Flat which is of great extent will afford profitable employment
to hundreds of Miners for years to come.

3. A Mining Bar about seven miles above Yale, commonly known as
Sailors Bar which is occupied by a person named Mead and another, who
are the sole grantees of two springs yielding sufficient water to supply
three sluice heads are making, according to their own statement
fifty dollars to the man a day. In consequence of the small supply of
water on this extensive Bar it is unavoidably monopolized by these two
men, and will afford them employment at the same rate of remuneration
for many years to come.

4. Some Chinese Miners have settled on an elevated Bank on Fraser's
River beyond Spuzzum, and as there is no water on the spot, and their
own small means are insufficient to bring in an artificial supply from
the neighbouring mountains, they convey the soil for washing in wheel
barrows to the rivers edge, a fact which goes far to prove the
extensive richness of the deposit.

5. These elevated banks have long been known to be rich, but there
being, on many of them, no natural supply of water, it will require a
considerable capital to bring in supplies of that indispensable element.

6. The Ditch on Emorys Bar has been moved back, in order to
facilitate the working of the Bank, which has however not proved so
productive as expected.

7. The Miners on Hills Bar are sinking shafts in the mountains,
in rear of the Bar, but when Mr Sanders last visited the spot on the
21st June, they had not attained to a sufficient depth, to determine
the value of the auriferous soil with any degree of positiveness; the
Miners were however quite satisfied from the indications of the beds
of earth, that their endeavours were likely to prove successful.

8. Mr Sanders laments the great loss of gold arising from
careless
working and the want of proper means to retain the "rusty gold", and
remarks that one half at least of the fine gold escapes on the surface
of the water used in washing, nor will "rusty gold" amalgamate with
quick silver, and he states, in proof of the superficial, ineffective
manner in which the diggings are worked, that an experienced and well
informed Ditch owner, assured him that he would have no hesitation,
in undertaking to work over again those parts of Hills Bar, which are
supposed to be exhausted, with a certainty of realizing from six to
eight ($6 to $8)
dollars a day for each man employed, yet, on this Bar many Miners
have taken out of a twenty five foot claim as much as six and seven
thousand dollars ($7,000)
exclusive of cost of labour, water, and subsistence.

9. The miners are full of confidence in the resources of the
country, and are looking forward to great discoveries in British
Columbia. They seem to think that parties should be organized to
prospect the interior, and good miners have offered their services for
that object, on condition of being furnished with food, and rewarded
in the event of success with grants of mineral land, or a quartz-land
claim.

10. Mr Sanders further reports that the accounts from the upper
districts of Frasers River are most encouraging, rich alluvial diggings
having been found in the neighbourhood of Ft Alexandria, and
extensive and rich dry diggings near Lytton.

11. Mr Sanders had also been informed, that silver has been
discovered to the Eastward of Sailors Bar, and he promises to procure
and forward specimens next week. It is also reported that quicksilver
had been discovered, but the Commissioner thought it not impossible,
that the discoverer, had mistaken Red Sandstone for "Cinnabar" the
mineral which contains Quicksilver.

12. Mr Sander's report contains nothing further of importance.

13. The opening of roads through the mountainous districts of
British Columbia into the interior, is now the object which has the
strongest claim upon our attention. A party of Royal Engineers are
now employed in making the road from Fort Hope to Boston Bar, and a
detachment of Royal Engineers and Royal Marines, exceeding one hundred
(100)
men are employed in widening and improving the Harrison Lillooet road.

14. The transport by that road into the interior is already very
great. About one hundred (100)
pack mules leave Douglas weekly with freight
for Bridge river; From returns made up at Douglas it appears that
Three Thousand six hundred (3,600)
tons of provisions have been carried over
that road since it was first opened in the month of November last.
The rate of freight by that route, rose at one time last winter to
Thirty seven (37) cents a pound a state of things induced by the want of
competition, and by the severity of the weather, but it is now
reduced to 10 cents a pound all through from Douglas to Bridge River,
and from this place (Victoria) to Douglas 1 1/7 cents making the
whole expense of freight from this place to Bridge River a distance
of Three hundred and sixteen (316)
miles of inland transport 11 1/7 cents
a pound, which is reasonable compared with what the charge once was;
though still susceptive of reduction.

15. The regular settlement of the country by a class of
industrious cultivators is an object of the utmost importance to
the Colony, which is at present dependant for every necessary of life,
even to the food of the people on importation from abroad.

16. It is thus drained of its wealth and its progress retarded:
evils which must exercise a depressing influence on the country at
large, until it possesses a fixed population, and produce of its own.

17. The mining population are proverbially migratory and unsettled
in their habits, seldom engaging in any other than their own absorbing
pursuits, and therefore, it is he who tills the soil, the industrious
farmer, who must clear the forest, bring the land into cultivation,
and build up the permanent interests and prosperity of the Colony.

18. We are for that reason most anxious to encourage the actual
settlement of the Country and that the process should commence on the
sea coast, and spread from thence as much as possible, continuously
along the course of the great rivers into the interior.

19. There are considerable tracts of level land, and some Prairie
land on Frasers River. The country on Harrisons River and lake is
less favourable for settlement, the lake about 35 miles in length,
being on all sides bounded to the waters edge, by precipitous
mountains, and not comprising, I believe, throughout its whole extent,
Five hundred (500) acres of land fit for cultivation. The valley of
Harrisons River does contain some level land, but the quality of the
soil is arid and stony.

20. Nothing however can surpass the imposing beauty of the

mountain masses and deafening cataracts of those two districts, the
admiration of every lover of the sublime and picturesque in scenery.

21. They are moreover not without value in other respects,
possessing, as they eminently do in boundless extent, fine forests
of the largest growth and finest quality, with an almost unlimited
amount of water power, readily applicable for propelling machinery at
the smallest expense.

22. With the further advantage of a safe water communication to
the sea, the inhabitants of those Districts, will doubtless turn their
attention to the export of spars and deals, which can be rafted at
little cost, to Queensborough and thence shipped to all parts of the
world, a trade that must eventually become a great source of wealth
to the country.

23. The geological phenomena observed on the banks of Harrisons
River, favour the belief that the district is auriferous, and this
opinion received corroboration from the fact that a party of French
miners, have worked the gravel beds of that river with a marked degree
of success, their joint earnings having averaged about seven dollars ($7)
a day to the man, and they are now making earnest preparations for
renewing the operation as soon as the River abates.

24. The present white population of Douglas is about one hundred
and fifty (150) souls. I was much pleased with their conduct when recently
on a visit to that place, they came forward in the most liberal manner,
after an address from me on the subject, to tender a subscription of
about Three hundred dollars ($300), and the offer of an assessment of ten
per cent on the value of their property, in aid of the road to Bridge river. I thanked them for the support thus tendered, and promised to make honorable mention of their act to Her Majesty's Government.

25. A Water power saw mill of great capacity, with a planing
and grooving Machine attached, has been lately erected on one of the
Mountain Streams that sweep through the town of Douglas and I have
no doubt that the enterprise of Mr McDonald the spirited proprietor,
will meet with a rich reward.

26. Colonel Moody is making great efforts to bring surveying
parties rapidly into the field but the survey of the site of
Queensborough, and other necessary work, has led to unavoidable delays,
and no country land has as yet been brought into market. There is
much popular clamour on that account, and should the pressure for land
be great, I think it will be advisable, to meet the emergency by
establishing some temporary system of occupation, which would enable
settlers to hold and improve certain specified tracts of land under
a preemption right until the surveys are completed, when it might
cease to be in force.

27. The declared value of Imports into British Columbia for the
quarter ending the 30th June amounts to Two Hundred and Forty seven
thousand, seven hundred and fifty-five dollars, sixty-six cents
($247,755.66) and the revenue derived from Customs duties for the same
period amounts to Four thousand one hundred and thirty-three pounds
sixteen shillings (£4133.16).

28. There is some excitement at present about the gold diggings
of Queen Charlotte's Island, and application has been made to me for
aid and protection on the part of the Government.

29. If a party of sufficient strength for self protection, can
be united for the purpose of exploring that Island and developing its
mineral resources (which I believe to be valuable) and thus form the
nucleus of a settlement, I will at once enter into communication with
the Senior Naval Officer present, requesting him if possible to detach
one of Her Majesty's Ships now here, to accompany and give the party
such aid and assistance as may be requisite on their first landing and
to remain near them until they can construct works for their protection
against the Native, who are numerous and troublesome.

30. I have only further to report the general tranquillity and
welfare of the Colony. The numbers of the Victoria Gazette mentioned
in the margin
*
are herewith enclosed.
**