No. 59

I returned on the 25th Instant from visiting the Mining
 districts of Cariboo and Columbia River. The completion of 
our Road system enabled me to travel a distance of 1800 miles
through the interior in the comparatively short period of six weeks.

2. The Town of Yale, situated at the termination of Steamboat
navigation on the Lower Fraser has made rapid progress during the
past year. I was received by the Inhabitants with every mark of
loyalty and respect. I enclose an address presented to me on my
arrival. It is a fair specimen of others received during my tour.

3. There is little worthy of note in proceeding over the 400
miles of Waggon Road from Yale fo Cariboo. The mining on the 
Fraser River is entirely confined to Chinese who still continue
to take a considerable amount of Gold from the Bars.

The small portions of land capable of agriculture along the
route are under cultivation and cereals of every description grow
luxuriantly wherever irrigation has been undertaken.

4. The Towns of Lytton, Clinton, and Quesnelmouth have not
 progressed. These placed flourished while Fraser River was the
centre of mining attraction and prior to the construction of
the Waggon Road when the expense of living in our Northern Mines
drove the miners to winter in the lower Country. Now, however,
provisions are cheap and abundant at Cariboo and miners prefer
remaining throughout the year in the neighbourhood of their mining
property. The existence of these Towns, therefore, depends upon
the passing traffic between the Upper & Lower Country, the small
requirements of the agricultural settlers, the sale of supplies
required by the Chinese Miners and a certain amount of Indian trade.

5. I arrived in Cariboo on the 10th day after my departure 
from New Westminster. I remained eight days on William's Creek
 and visited many other creeks in the vicinity upon which miners are
working. The number of men in the Cariboo district is about the
same as last year. The Miners as a body are all doing well.
The amount of Gold Dust purchased by the Banks of British Columbia
and British North America during the month of July exceeded any
previous month on record namely $277,000. Quartz veins are
attracting attention. Several rich veins having been discovered.
The want of capital for the development of this permanent source
of mining wealth is much felt, as yet no Quartz Mills have been
established in the Colony and it is necessary to send Quartz to
San Francisco to be crushed before the value of the vein can be
ascertained. I have with the advice of the Council offered a reward
for the first Quartz Mill established within the Colony, and I trust
before the end of the Mining Season to be able to report that the
work has commenced.

6. Leaving Cariboo I proceeded northward a distance of sixty
miles to the newly discovered mines situated on a small river
emptying into the Fraser about 25 miles below Fort George. Eighty
men had arrived at these new diggings but the extreme difficulty
of obtaining supplies had prevented the proper development of the
mines. This new discovery is considered important as tending to
confirm the theory that rich gold fields extend from the Upper
 Columbia to the Fraser. From Quesnelmouth to Fort George the
Fraser River is navigable and should these mines attract attention
and population a Steamer will be at once constructed to run upon
this portion of the river.

7. Returning by way of the Fraser River Valley, I was enabled
to visit the chief farming districts. I found settlement
progressing—large tracts of land have for the first time been brought
under cultivation, several grist Mills are in course of erection, and I
have little doubt that after another harvest sufficient Wheat will
be raised by the settlers to supply the miner[s]. Hitherto the imports
of flour have averaged 17,000 barrels per annum.

8. The Steamer lately constructed on the Thompson River by
 the Hudson Bay Company, conveyed me a distance of 110 miles from Savana by way of the Great Kamloops and Shuswap Lakes to the New Town of Seymour. A journey of 35 miles across the mountains
 brought me to the Upper Columbia or Big Bend mining district.

9. The representations made on the first discovery of Gold
in this district were very incorrect, and caused much disappointment
among the class of miners who flocked there in the early spring.
The mines were reported as "shallow diggings" capable of being
easily worked, whereas the "Bed Rock," on which the Gold is found—with
few exceptions—lies at considerable depth from the surface,
and a large expenditure is required in sinking shafts before any
return can be expected. Thus many who could not afford this
expense were obliged to leave. At the time of my visit the
population did not exceed four hundred. The few companies
working day and night had reached the "Bed Rock" at a depth of
from 60 to 120 feet, and were taking out Gold. There is every
indication that when the proper system of working the ground
has commenced these mines will equal Cariboo in richness.

10. An American Steamer plies on the Columbia River from
Colville to within 18 miles of the mines. The competition thus
created between the British Columbian and American Merchant
reduces the price of living at these mines very considerably.

11. There are many subjects connected with my recent Tour
on which I shall have occasion to report to Your Lordship. The
departure of the Mail Steamer so shortly after my return to the
seat of Government only enables me to give this rough outline of
my travels. I enclose a Map showing my route.