[No. 6]

I had the honor on the 26th Ultmo of receiving your
communica==tionscommunications, numbered 1 and 2 of the 11th and 18th March
and with the former a Warrant under the Royal Sign Manual, appointing
Mr Roderick Finlayson to be a member of Council of Vancouver's Island. I have duly signified Her Majestys Will and pleasure to that
gentleman, and shall forthwith swear, and admit him as a Member of
Council

The instructions contained in your letter of the 18th March
in reference to the admissibility of Indiantestimony in the Law Courts
of this Colony, shall be communicated for the guidance of the
Magistrates and Officers, who may be entrusted with the adminis==trationadministration
of the Laws.

I observe with much satisfaction that you have directed the
attention of the Lords Commissioners of the Admiralty to the subject of
stationing a vessel of war off Queen Charlotte's Island for the support
of national rights, and the protection of Her Majesty's subjects trading
to that quarter.

We have received no intelligence from Queen Charlottes Island since the arrival of Her Majesty's Ship "Thetis" in the early part of last month. The Americans had all left, before the departure of the
"Thetis" from Gold Harbour, and I have no doubt the report of her
proceedings on the coast, will deter many persons from going there, who
would otherwise have been induced, by its reputed wealth, to visit the
Island.

The danger is not however completely removed, as rumours are still
abroad of parties forming in California and Oregon for the avowed
purpose of working the Gold Mines, and any prospect of success will set
them all in motion.

The reports received from the Hudsons Bay Company's parties
employed on Queen Char==lottesCharlottes Island, are not so favourable as
anticipated, and it has now become a question, if surface gold, as found
in California, exists in large quantities on any part of the Island. On
the other hand all the accounts agree in representing the great value of
the auriferous quartz from which it is expected that a rich harvest of
the precious metals will be obtained.

The presence of a Vessel of War, permanently sta==tionedstationed on this
coast will I am convinced have the happiest effect in promoting general
trade, as well as the special interests of this Colony, and I am in
hopes, that Her Majesty's Government will take a favourable view of that
measure. In that event I will submit for your consideration that a War
Steamer of small force would be the most useful and effective Vessel
that could be employed on this coast, as besides the celerity and
certainty of her movements she could with less risk and far more ease
than a sailing vessel, visit the numerous Bays and Inlets where
prohibited vessels may be concealed.

The Colony of Vancouver's Island is, from present
circumstances, in a most unfor=tunateunfortunate position for Trade; at the distance
of more than 4000 miles from the nearest British posession and separated
from the Mother Country by half the circumference of the Globe, it has
no available outlet for its productions, con-sistingconsisting of Salt-fish, Deals,
Lime==stoneLimestone and Spars for Masts, which with the exception of the last will
do little more than defray the expensive transport to Great Britain.
Added to that dis==advantagedisadvantage the Colony has to sustain a competition with
the American settlements in Oregon, whose staple exports are similar to
those of Vancouvers Island, and are admitted into the American Ports in
California free of duty, while heavy protective duties ranging from 20
to 30 per cent, are charged upon the staple exports of this country.

Enterprise therefore languishes and unless some steps are taken to
mitigate as far as possible, those disadvantages, the Colony will never
prosper, and the labouring classes will seek employment in the
neighbouring settlements of Oregon. Much I conceive may be effected in
that way by encouraging the export of spars for the supply of the Royal
Navy, which this Island produces in great abundance, and of the very
best quality. I herewith enclose a document containing a description of
a lot of spars prepared for shipment by Mr Brotchie a British
subject; who has been nearly two years a resident on this Island, and
who after devoting his whole time and spending all his means in the
prosecution of that enterprise can find no sale for his property, which
is therefore in danger of being destroyed by fire and other accidents.

I beg to recommend the case of Mr Brotchie to your
consideration, as I have no doubt the Lords ‸CommissionersCommissioners of the
Admiralty would find it of advantage to order a contract to be made with
him for any number of Spars, required for the public service, this
besides rescuing a worthy and enterprising man from ruin, would give an
impulse to industry and be the means of calling into exercise a branch
of trade which may lead to very important results, as concerns the
future interests of the Colony.

I have nothing further of any importance relative to the Colony
to communicate. Petty offenses have on several occasions been committed
by the natives, which have been fairly dealt with, but we have had no
serious difficulty with any of the Native Tribes, who, generally
speaking, live on friendly terms with the white settlers.

Since my last commu=nicationcummunication several dwelling houses have been
erected at Victoria, and the Puget Sound Company have commenced two
large farms in the same district; otherwise there has been little
progress made in the settlements.

The harvest began about a week ago, and it is the general
opinion that the wheat and pea crops will afford a good yield, but the
oats are considered short and defecient in straw, owing to the extreme
dryness of the summer, there having been no rain, with the exception of
three light showers since the 10th of May last.