No. 19

I have the honor to report that extensive Gold fields have
been discovered on that portion of the Columbia River commonly
 known as the "Big Bend," lying between 51o and 52o North Latitude. The discovery was made in the summer of 1865 but
owing to the roughness of the Country and the difficulty of
access, the few adventurous Miners attracted to the spot were
literally starved out before they were able to prove the richness
of the discovery. The numerous creeks from which specimens have
been received leave no doubt of the extent of this New District
and the extreme coarseness of the Gold is sufficient in the
miners' theory to foretel the richness of the Diggings.

2. The excitement prevailing in California and throughout
the neighbouring Territory convinced me of the necessity of
opening communication with these mines without delay and in
time to enable the Merchants to throw in supplies before the
"rush" of miners fairly commenced.

3. You will have gathered from Mr Moberley's reports
forwarded in my despatch No. 14 of 2nd March, that the
 navigation of the Kamloops and Shuswap Lakes and of the connecting
River is practicable for Steamers of light draught for a distance
of one hundred and ten miles. The Country lying between Kamloops
Lake and the nearest point of the main waggon road is chiefly
open prairie, admirably adapted for agriculture. I have not
therefore hesitated to authorize the construction of a waggon
road on this portion of the route. The Hudson Bay Company have
entered into an agreement with the Government to construct a
Steamer to navigate the Lakes at a fixed rate for freight and
passage money. The trail made by Mr Moberley from the head
 waters of Shuswap Lake to the Columbia River will answer all
purposes for the spring traffic and little will be done on
this portion of the route before the Country has been more fully
explored. I trust the entire route will be open early in May
at a comparatively small cost.

4. Until I receive more definite information of the extent
and richness of this new District, I intend to appoint Mr O'Reilly
 Gold Commissioners over the combined Districts of the Columbia and 
 the Kootenay. Mr O'Reilly as you are already aware from Governor Seymour's despatch No. 5 of 31st January 1865, was selected
 to proceed to Kootenay. He was so well appreciated by the Miners
and the General Public during the past year that I am most anxious
he should still retain his authority in that District and at the
same time superintend the new Gold fields on the Columbia River.

5. I do not consider there is any occasion for retaining
a Magistrate at the Town of Douglas, I have therefore amalgamated 
the District with that of New Westminster and propose sending
Mr Gaggin, now Magistrate of Douglas, to assist Mr O'Reilly in
 the Columbia District. Mr Gaggin has had no experience in the
duties of a Gold Commissioner and this is my chief reason in
placing him under Mr O'Reilly.