No. 8

I have to acknowledge the very important series of despatches of
which the numbers and dates are specified in the Margin, *showing the manner in which you have continued to administer the
Government of the Territory in which the recent discoveries of Gold have
taken place, and detailing the extraordinary course of events in that
quarter.

2. Her Majesty's Govenment feel that the difficulties of your
position are such as courage, judgment, and familiarity with the
resources of the Country and character of the people, can alone
overcome; they feel also that minute directions conveyed from this
distance, and founded on an imperfect knowledge, are very liable to
error and misunderstanding. On some points, however, you have yourself
asked for approval and instructions; on others, it is absolutely
necessary that the views of Her Majesty's Government should be made
clear to you.

3. As to the steps you have already taken, I approve of the
appointments which you have made, and reported, of Revenue Officers Mr
Hicks and Mr Travaillot, of Mr Perrier as Justice of the
Peace, and of
Mr Young as Gold Commissioner. I approve also as a temporary measure,
of the steps which you have taken in regard to the Surveying Department,
but I have it in contemplation to send to the Colony a head of that
Department from England.

4. I propose selecting in this Country some person for the Office
of Collector of Customs, and I shall send you also at the earliest
moment an Officer authorised to act as Judge, and who, I trust, as the
Colony increases in importance, may be found competent to fill with
credit and weight, the situation of Chief Justice. I await your
intimations as the the wants & means of the Colony, in this sudden rise
of Social Institutions in a Country hitherto so wild, in order to select
such Law Advisers as you may deem the conditions and progress of
Immigration more immediately require. And it is my wish that all legal
authorities connected with the Government should be sent from home, and
thus freed from every suspicion of local partialities, prejudices and
interests.

5. I highly approve of the steps which you have taken, as reported
by yourself, with regard to the Indians. It is in the execution on this
very delicate and important portion of your duties that Her Majesty's
Government especially rely on your knowledge and experience, obtained in
your long Service under the Hudson's Bay Company. You may in turn rely
on their support in the execution of such reasonable measures as you may
devise for the protection of the Natives, the regulation of their
intercourse with the whites, and, whenever such a work may be commenced,
their civilization. In what way the fur Trade with the Indians may be
henceforth carried on with the most safety, and with due care to save
them from the demoralizing bribes of ardent spirits, I desire to know
your views before you make any fixed regulations. No regulations giving
the slightest preference to the Hudson's Bay Company will be in future
admissible, but possibly with the assent of the whole community licenses
for Indian trade impartially given to all who would embark in it, might
be a prudent and not unpopular precaution.

6. I approve also of the measures which you have taken for raising
a revenue by Customs, and authorize their continuance.

7. I approve also of your continuing to levy license fees for
Mining purposes requesting you however to adopt the scale of those fees
to the general acquiescence of adventurers and leaving it to your
judgment to change this mode of taxation (as for instance into an export
duty) if it shall appear on experience to be unadvisable to continue it.
But on this head I must give you certain cautions. In the first place,
no distinction must be made between foreigners and British Subjects as
to the amount per head of the license fee required (nor am I aware that
you have proposed to do so). In the second place, it must be made
perfectly clear to everyone that this license fee is levied, not in
regard to any supposed rights of the Hudson's Bay Company, but simply in
virtue of the prerogative of the Crown, (now confirmed by the Act of
parliament transmitted to you, if this was necessary) to raise such
revenue as it thinks proper in return for the permission to derive
profits from the Minerals on Crown Lands.

8. Further, with regard to these supposed rights of the Hudson's
Bay Company, I must refer you, in even stronger terms, to the cautions
already conveyed to you by my former Despatches. The Hudson's Bay
Company have hitherto had  an exclusive right to trade with Indians in
the Fraser's River Territory, but they have had no other right whatever.
They have had no right to exclude strangers. They have had no rights of
Government or occupation of the soil. They have had no right to prevent
or interfere with any kind of trading except with Indians alone. To
claim or exercise any further rights is, on their part, a mere
usurpation, although I doubt not, often practised and submitted to in
ignorance. But to render all misconceptions impossible, Her Majesty's
Government have determined on revoking the Company's License (which
would of itself have expired in next May) as regards British Columbia,
being fully authorized to do so, by the terms of the License itself,
whenever a new Colony is constituted.

The Company's private property will be protected in common with
that of all Her Majesty's subjects; but they have no claim whatever for
compensation for the loss of their exclusive trade, which they only
possessed subject to this right of revocation. The instrument formally
revoking the License will shortly be forwarded to you.

9. With regard to the revenue received from Licenses and Customs,
you will hold it for the present to be expended on the necessary
expenses of the Colony.

10. The immense resources which the information that reaches
England every day, and is confirmed with such authority by your last
Despatch assure me the Colony possesses, and the facility for immediate
use of those resources for the purposes of revenue, will at once free
the Mother Country from those expenses which are adverse to the policy
of all healthful colonization; and I shall confidently rely upon you to
see that the
proceeds from the Colonial revenue defray every
charge except that of your own salary as Governor, which from obvious
motives of policy, while the population is yet precarious and unsettled,
I think should be dependent upon Great Britain alone. You will bear the
principle I have thus laid down perpetually in mind, so as to apportion
the expenditure to the revenue, and not to allow the former to exceed
the latter.

11. The most important objects to which the local revenue can be
applied would seem to be police, public works to facilitate landing and
travelling, payment of the absolutely necessary Officers, and above all
surveying. But your own local judgment must mainly decide. You will
render accurate accounts to me both of receipts and expenditure, and you
will probably find it necessary shortly to appoint a Treasury which will
be a provisional appointment. You are authorized, if you think proper
to give, for the present, Government receipts in lieu of deposits of
Gold. As to this point I wish to have a more definite account of the
nature of your proposal.

12. You are fully authorized to take such measures as you can for
the transmission of letters and levying postage.

13. It appears by your Despatch that the Staff of Surveyors you
have engaged, are at present employed on Vancouver's Island, the soil of
which is as yet held under the expiring License of the Hudson's Bay
Company. But it is British Columbia which now demands and indeed may
almost absorb the immediate cares of its Governor, and your Surveyor may
at once prepare the way for the arrival of the Surveyor General
appointed from hence and of the Sappers and Miners who will be under his
orders.

14. I now come to the important subject of future Government. It
is possible (although on this point I am singularly without information)
that the operations of the Gold diggers will be, to a considerable
extent suspended during the winter, and that you will, therefore, have
some amount of leisure to consider the permanent prospects of the
Colony, and the best mode of administering its affairs. You will be
empowered both to govern, and to legislate, of your own authority. But
you will distinctly understand that this is as a temporary measure only.
It is the anxious wish of Her Majesty's Government, that popular
Institutions without which they are convinced peace and order cannot
long prevail, should be established with as little delay as practicable.
And until an Assembly can be organised (which may be whenever a
permanent population however small, is established on the soil). I
think, as I have already stated in a former Despatch, that your best
course will probably be to form some kind of temporary Council, calling
in this manner to your aid such persons as the Miners themselves may
place confidence in.

15. You will receive additional directions along with your
Commission, when forwarded to you. And I have embodied in a Separate
Despatch those regarding the very important question of the disposal of
Land.

16. Aware of the immediate demands on your time and thoughts
connected with the pressing question of the Immigration to the Gold
Mines, I do not wish to add unnecessary to the burthen of duties so
onerous; but as yet our Department has been left singularly in ignorance
of much that should enter into consideration of general policy, and on
which non-official opinions are constantly volunteered. Probably
amongst the persons you are now employing and in whose knowledge and
exactitude you can confide, you might find some one capable of assisting
under your superintendence in furnishing me, as early as possible, with
a Report of the general capacities of the harbour of Vancouver—their
advantages and defects—of the mouth of the Fraser's River, as the site
of the Entry into British Columbia apart from the Island—of the
probabilities of a Coal superior for steam purposes to that of the
Island, which may be found in the Main Land of British Columbia, and
such other information as may guide the British Government to the best
and readiest means of developing the various and the differing resources
both of the Island and the mainland—resources which have so strangely
been concealed for ages, which are now so suddenly brought to light, and
which may be destined to effect at no very distant period a marked and
permanent change in the commerce and Navigation of the known world. The
Officers now engaged in the Maritime Survey will probably render great
assistance to yourself and to Her Majesty's Government in this
particular.

17. I will only conclude with the general cuation that inasmuch as
your legal powers are as yet incomplete, it will be well that you should
therein confine yourself as much as possible to the mere issue of
regulations absolutely required, and not seek to carry into effect the
Crown's general power of Legislation until fully authorized thereto.