Murdoch to Rogers (Permanent Under-Secretary)

I have to acknowledge your letter of 24th ultimo,
enclosing two Despatches from Governor Douglas—the first
containing his own comments on Capt Clarke's scheme for the
disposal of Land in B. Columbia—the other transmitting a
report from Mr Begbie, the Judge of British Columbia,
on the same subject.

2. Governor Douglas states that the Land regulations
of B. Columbia, including the preemption Act of

1860,
contain substantially all the important suggestions in
Captain Clarke's scheme. The only important differences
between the two are the acceptance in B. Columbia of deferred
payments for lands sold—and the reservation to the Crown of
Gold and Silver on lands sold to individuals.

3. In respect to the first of these points Governor
Douglas argues at considerable length that the peculiar
description of the population of British Columbia, which
consist almost exclusively of moneyless laborers without
any mixture of Capitalists, would make

it impossible to
sell any land at all on condition of prompt payment of
the price. He says, very truly, that the Land should not
be regarded as a source of revenue, but as a means of
aiding the progress and development of the Country &
encouraging the resort of a resident population. He
observes that such a population would be cheaply purchased
by even a free gift of the Land if that were necessary,
and he points to the liberality of the Land systems of
the United States and the older British Provinces in
support of this view. He expresses his belief that
settlement in

British Columbia must be encouraged by the
same policy, and that otherwise the laboring class will be
forced from it to the neighbouring States of the Union.

4. The objections to deferred payments have been so
repeatedly stated that I do not reproduce them here. When
Governor Douglas first sent home his land regulations those
objections were, I believe, explained to him, and he was
directed, whenever the Land regulations were revised, to
introduce the system of prompt payment instead. A question,
therefore, arises whether any

modifications of that instruction
should now be made.

5. Theoretically I believe the arguments in favor of
prompt payment to be conclusive, but it is possible that they
cannot be enforced practically in B. Columbia without creating
more inconvenience than they prevent. The position of British
Columbia would appear at present to be peculiar in this respect.
There are few capitalists in it and those there are have gone
thither to employ their capital, not on the Land, but in gold
seeking. The attractions of the latter are so great that
probably for some time to come no man

who can afford to dig for
gold will do anything else. In the course of time the profits
to be derived from producing food for this gold seeking
population will be so great as to induce men with capital to
employ it in the cultivation of the soil. But that time has
not yet come and the unsettled habits of the population, which
ebbs and flows with the season for gold mining, will postpone
it to a later periods in British Columbia than in other gold
producing Countries. Meanwhile the cultivation of the Land
has fallen, as Governor Douglas states, altogether into the
hands

of a very poor class for whom the payment by deferred
instalments is a necessity. And it cannot be denied that any
measure which should discourage the increase of this class, still
more which should drive away those who have already settled,
would be a great misfortune to the Colony. Upon the whole,
looking moreover to the general prevalence of deferred payments
in the American Continent, I would recommend that, for the
present at least, Governor Douglas should be allowed to continue
the system which he considered essential to the progress of the Colony.

6. In respect to the reservation

of the Crowns right to the
precious metals in Sales to private individuals, Governor Douglas
thinks it desirable for public interests that it should be
continued until the Country has been explored. He points out that
the prosperity of the Colony and its revenue depend entirely on
the labors of the Gold Mining population, and that it has been
the constant aim & policy of his Government to protect & encourage
that class. But if the Crown's reservation were given up Miners
might be excluded from lands in the possession of private
individuals, except on terms

oppressive to industry. For these
reasons the Law has reserved to them a right to enter upon & work
Mines of the precious Metals on private Lands with which
Governor Douglas would propose not to interfere. The Law
referred to is the "preemption Act" of 1860, and it provides for
compensation to the owner of the land for any waste or damage done
by the goldseeker working upon it. As no complaint has been
received from the Colony on this point it will not, I presume,
be thought necessary to interfere with Governor Douglas' decision
in the matter.

7. In Governor Douglas's second despatch is enclosed, as I
have stated, a report from Mr Begbie, the Judge of the Colony.
Mr Begbie commences with a very interesting description of the
Country and the people, and with a very satisfactory account of
the character of the latter. He describes them as peaceable,
orderly and well conducted, but shrewd independent & self
reliant—strongly impregnated with American views and not to be
governed on a system to which they are opposed—of wandering
habits—encamped merely, not settled—and easily driven away,
therefore, by bad

management. Among such a people it is
of paramount importance that the system on which the public
lands are disposed of should be such as to commend itself to their
good will and to be suited to their circumstances, and Mr Begbie
deprecates, therefore, prospective legislation or any interference
beyond what is unavoidable. He expresses his general approval
of the existing system, but recommends an early classification
of Town and Country Lands, the alienation of known auriferous
lands in small lots at a price of £4 or £5 an acre, and the
lowering of the price of Agricultural

lands to 4s/- an Acre
(it has been lowered to 4s/2d) observing that "cheapness
and liberality of that sort on the part of the Government possess
an attraction and popularity which I admit I am totally at a loss to
Justify." The land costing perhaps £20 an Acre to bring it into
cultivation. He considers that "preemption" is absolutely
indispensable, observing that when he first arrived in the
Colony he was strongly of opinion that no occupation should
be allowed till after survey—but that no one could have
gone round the Country even to the limited extent he has

done, without coming to the conclusion that such a
prohibition is impossible, and, if possible, would be
impolitic. He goes seriatim through the several heads
of Captain Clarkes scheme, expressing his opinion, however,
in such brief terms as to be sometimes obscure. The great
bulk of Capt Clarkes suggestions are, as stated by
Governor Douglas, substantially in practice in British Columbia,
but I understand Mr Begbie to be opposed to Sale by Auction—and
to approve prompt payment. His views, however, are not
distinctly expressed on those points. I do not see, therefore,

that there is anything in Mr Begbie's paper to overrule the
recommendations of Governor Douglas.

8. From the Secretary of States Despatch of 16 July last
enclosed in your letter it would appear, that his decision
on the preemption Act of January last had been suspended until
the receipt of Governor Douglas' report on Capt Clarkes
suggestions. Looking to the clear and decided opinions on
this point expressed by Governor Douglas & Mr Begbie, to the
peculiarity of the circumstances of British Columbia, and to
the sanction which has already been given to the

principle
of preemptive occupation before survey, I presume that the
Duke of Newcastle will consider it right now to sanction the
preemption Law. Whatever future inconvenience may arise
from the occupation of unsurveyed Land with preemptive rights,
it will apparently be less injurious than the risk of
driving away from the Colony the only persons who are likely
to bring any part of its soil into cultivation for perhaps
several years.