No. 43

1. I have the honor to acknowledge the receipt of your
Despatch No 6 of the 31st of July
last,

communicating the views which you entertain upon various topics of
Governmentestablishment of
importance bearing upon the present situation of affairs and the
establishment of a regular government in British 
Columbia.

2. Though I regret that the pressure of public business, the want
of efficient aid, and irregular mail facilities have prevented me from
Douglas, Jamesdefends past policies
communicating so fully with you as the position of affairs required, it
is very gratifying to my feelings, to discover from the communication of
those views in your despatch, that the measures which have been adopted
with the view of raising a revenue for defraying the expenses of
Government in that Country, co-incide so closely as they do with those
recommended in your Despatch.

3. In consequence of the unexpected force of the immigration
from the United States, and the pressure of the masses, we were
compelled in the emergency, by a stern necessity, either to take
the initiative, and to give a direction to the masses, or to submit to
their dictation, as to the measures which the government had to pursue.

4. For that reason, I had to act in many cases without delay,
and without distinct legal authority, except that discretionary
power derived from my Commission as Governor of Vancouver's Island,
which I believe applies to all cases affecting the public interests
not provided for in Her Majesty's instructions.

5. In asserting the dominion of the Crown over the gold region, and
the rights of the Crown over the precious metals, I felt that I was
acting clearly according to constitutional law and usage, but I did not
feel equally certain about the expediency, or the power of enforcing
those rights by levying the Licence duty on miners, in a remote and
almost inaccessible country.

6. Being in urgent want of money to meet the unavoidable increasing
expenditure of Government, consequent on the influx of people, I
conceived it would be only proper to make them bear the cost of that
expenditure, and that circumstance suggested the idea of levying a
month's licence in advance, on every person entering Fraser's River, with
the condition, however, that the certificate of such payment would be
received in compensation of the first month's mining, on the claim
assigned to the party holding it in Fraser's River; a measure which was
immediately carried into effect, with the satisfactory results of
creating a fund to meet our immediate expenses, and securing the support
of a large body of miners, who having paid the Crown dues, insisted that
any such person as had evaded that payment, should either comply with the
Government regulation, or relinquish their mining claims, thus lending a
prodigious moral power to the Government, while enforcing the mining
duty.

7. I have, however, from the first doubted the expediency of
levying the duty on mining licences, which will always be an unpopular
tax, besides being arduous and expensive to levy in a country so
extensive and difficult of access as Fraser's River, I therefore much
prefer to that tax, the adoption of the views entertained in your
despatch, as a means of raising a revenue; that is, levying moderate
duties in Beer, Wine and Spirits, and other articles subject to taxation,
Customs duties
this being in fact continuing the import duty of 10 per cent ad valorem,
at present levied on all goods imported into British Columbia.

8. The disposal of public lands and also of Town lots as suggested
in your despatch, will I think prove a prolific source of revenue;
besides having the effect of opening the country for permanent
settlement. In my late excursion to Fraser's River, of which I will soon
forward an account, the most urgent appeals were made to me by intending
settlers, on the prospect of approaching winter, for the purchase of Town
lots at Fort Yale and Fort Hope, but having no legal authority to make
Governorauthority to grant land titles
sales of land, or to grant sufficient titles, I could only meet their
wishes by giving leases of the desired lots, at a monthly rent, of 41
shillings, to be continued, with a pre-emption right to the holder, until
the land is finally sold.

9. Since the arrival of your despatch, I have sent Mr Pemberton, Joseph D.to survey town sites Pemberton, the Surveyor General to lay out three several town sites
on Fraser's River, namely at

Old Fort Langley

Fort Hope

Fort Yale

there being a demand at each of those places for Town lots, in
consequence of their position at important trading points of the
River, which gives them a peculiar value in the estimation of the public.

10. The Surveyor has advertized a public
sale,

at this place, of Town lots 64 x 120 feet, in extent at old Fort Langley,
for the 20th of this month, October, the upset price to be 100
dollars for each lot of that size, and not to be sold for less than the
upset price. Though this is not a propitious time for the disposal
of Town lots; it is expected that the Government will realize a
considerable sum from that sale.

11. We also look forward to raising a considerable sum through
Licensesliquor dealers
the duty on licenced Ale and Beer houses, and also on trading
Licences, should it be considered judicious to continue such taxes.

12. I am anxious to save the present Mail and will therefore
leave the subject of revenue, until I can prepare a digested report
on the subject, and have an opportunity of ascertaining, as you again
have suggested, the sense of the immigrants upon so important a matter.

13. I will not fail to keep steadily in view the fact, that the
Imperial Parliament will expect that British Columbia shall be self
supporting as soon as possible and that it is the desire of the
Mother Country that representative institutions and self-government
should prevail in that Colony, as soon as the material for those
Institutions are shewn to exist, and to that object, we shall as
you recommend, aim and shape all our policy.

14. I observe also your intention of despatching a party of Royal
Royal Engineersrole of
Engineers for British Columbia and the particular objects for which that
force is to be despatched; the manner in which it is the wish of Her
Majesty's Government that Force should be employed, and the Government of
British Columbia be carried on, are important subjects to which I will
give all the consideration which their vast importance requires.

15. I also observe your intention of sending out an experienced
Policeinspector of
Inspector of Police to assist in the formation of a police force, and I
am convinced that he will be of great service to the government though we
have already organized a force of that description, and also sworn in a
number of Special police, consisting of the inhabitants of Fort Yale, to
be employed on emergencies in keeping the peace.

16. I shall not fail to give the fullest scope to your humane
Indiegous peoplescolonial policy towards
considerations for the improvement of the native Indian Tribes and
shall take care that all their civil and agrarian rights be protected.
I have in fact already taken measures as far as possible to prevent
collisions between those tribes and the whites, and have impressed
upon the miners the great fact that the law will protect the Indian
equally with the white man, and regard him in all respects as a fellow
subject. That principle being admitted will go far towards the well
being of the Indian tribes and securing the peace of the country.

17. I shall also by every means in my power endeavour to
secure the confidence of the inhabitants of British Columbia, and to
attach them by the ties of interest to the existing Government.

18. I regret that time does not permit me to report to you
more fully on this occasion, as the mail
steamer

has just arrived from Puget's Sound and will leave at an early hour
tomorrow; but Her Majesty's Government may rest assured that the
instructions I have received will be fully carried into effect, and that
all our measures will be framed upon those instructions.