Separate

I have the honor to submit for Your Grace's information
the following

particulars relative to a recent journey in
British Columbia, from whence I have just returned.

2. I left Fort Victoria by the regular Steam Packet on the
evening of the 28th of August, and early next day landed
at New Westminster.

3. I heard with much concern on my arrival there, that
the Capital was suffering from one of those fluctuations in
commerce

common to all countries, and that there was much
depression in business circles, and a marked decrease of
trade, a fact which was indeed corroborated by the Customs
Returns, it appearing from them that the imports for the
four previous weeks had fallen off about 25 per cent, as
compared with the increasing ratio of the preceding month;
a casualty generally attributed by businessmen to the

growing
overland trade with the possessions of the United States in
Oregon and Washington Territory, which now supply by the
Southern frontiers of the Colony, a large proportion of the
bulky articles such as provisions and bread-stuffs consumed
in the eastern Districts of British Columbia; and those
imports, it was supposed, had this year been for the most
part fraudulently introduced, to

the great loss and detriment
of the home merchant and the fair trade.

4. It is, however, not easy to conceive how so extensive
a contraband trade as this would imply, could be carried on
without the knowledge of the vigilant officer stationed on
the frontier for the protection of the Revenue, whose
official reports give no room for such impressions. I am
therefore led to believe that

the present depression is
traceable to another cause, and may, with more probability
be regarded as the simple result of over importation;
and I have no doubt a revival will take place, and trade
resume its accustomed tone, as the stocks of goods in the
Colony have been reduced.

5. The Officers of the Colony residing permanently in
New Westminster and employed in the management

of the
several Departments of the Public Administration are as follows,

Military............Colonel R.C. Moody, R.E., Commanding.

Lands and Works.....Colonel R.C. Moody, R.E., Chief Commissioner.

Judiciary...........Matthew B. Begbie, Judge.

Police..............Chartres Brew, Chief Inspector.

Treasury............Captain W.D. Gosset, R.E., Treasurer.

Treasury, Assay Office.....F.G. Claudet, Assayer.

Treasury, Assay Office.....C.A. Bacon, Melter.

Customs.............Wymond Hamley, Collector.

Post Office.........W.R. Spalding, Post Master.

6. The Treasury was lately transferred from Victoria
to New Westminster, where all the financial business of the
Colony is now transacted. The Assay Office has been in
operation since the beginning of the month of August, and
the last accounts of the 28th of that month give a return
of 1600 ounces of Gold Dust which had been

smelted and run
into bars of various weights.

Those, and the other Departments are in a state of
efficient organization. The Public Offices are plain,
substantial buildings, devoid of ornament, and constructed
on a scale adapted to our limited means; they are
nevertheless, roomy and commodious, and on the whole not
unsuitable to the present business of the Colony.

7. There has not been much activity in building since
my report transmitted to Your Grace in the month of May last,
but Town property nevertheless sustains its former price,
and the inhabitants of New Westminster appear to have
unlimited confidence in the ultimate progress of the place.

8. The run from New Westminster to Douglas was effected by one of the

River Steamers in 16 hours including brief
stoppages at Langley and Carnarvon; and the whole distance
from Fort Victoria to Douglas in 24 running hours, being little
over half the time occupied by the same journey last year.
The charges on the transport of goods have also proportionately
decreased, freights being now generally taken at £3.8.0. a
ton, or 25 per cent less than the former rates.

9. While at Douglas I dispatched an exploring party under
the command of Dr Forbes of Her Majesty's Ship Topaze, for
whose assistance I am indebted to the kindness of Rear
Admiral Sir Robert L. Baynes, to examine the country bordering
on Harrison Lake and River, where many fragments of Silver
and Copper ore have been found. A specimen of the former
which was carefully assayed, gave a return of £50 worth of

silver to the ton. The Copper ore appears also to contain
a large proportion of that metal.

10. I am in hopes that Dr Forbes' scientific researches
will be productive of much good to the Colony, as the District
subjected to his examination has all the characteristics of
a mineral country, is almost destitute of arable land, and,
except timber, possesses no ascertained

natural products
capable of contributing to the support or giving remunerative
employment for labour.

It is therefore especially desirable that no effort
should be wanting for the early development of the minerals
supposed to be contained in the soil, otherwise the district
may, for years to come, remain a wilderness without inhabitants.

11. Douglas is still

an inconsiderable town, much improved
however, since my former visit in June last. A Stipendiary
Magistrate is stationed here, Mr J.B. Gaggin, who also
performs the duties of Gold Commissioner within the District,
which extends from Carnarvon to Port Anderson. A brisk trade
is carried on from Douglas with the Mining Districts of the
interior; and the constant arrival and departure

of trains
of Pack-mules give to the place a lively and bustling
appearance.

12. We pursued our journey by the newly-formed Waggon
Road, then nearly finished as far as the lesser Lillooet Lake, 28 Miles from Douglas; a work of magnitude, and of
the utmost public utility, which I think it only right to
inform Your Grace has been laid out and executed by Captain
Grant and a

Detachment of Royal Engineers under his command,
with a degree of care and professional ability reflecting
the highest credit on that active and indefatigable Officer.

13. A number of Waggons, imported by the enterprising
merchants of Douglas, have commenced running on the new Road;
and the cost of transport has already been greatly reduced.
I look forward

with confidence to further important reductions
in the rates of transport, as the most experienced carriers
are of opinion that goods of all kinds may, and will be
carried the whole distance (100 Miles) from Douglas to Cayoosh,
for £20 a ton, which would be a reduction of 250 per cent
on former rates. The effect of so large a saving on the
carriage of goods will be of vast importance to the country,
and no doubt

give a prodigious impulse to trade and the
settlement of the Public Lands.

14. A row-boat is still the only means of conveyance over
the Lesser Lillooet Lake, which is nearly five miles long,
and one mile and a half distant from Lillooet Lake, with
which it is, however, connected by a narrow river, full of
shoals and dangerous rapids, perilous in their present state
for

any larger craft than Indian Canoes. This circumstance
renders a transhipment and a resort to land carriage for a
mile and a half on an excellent road, necessary before
reaching Lillooet Lake. Various plans have been proposed for
rendering the river between those Lakes navigable; but,
important as would be the improvement, the cost is altogether
beyond our present means, and the work must be left

for a future time.

15. A very fine piece of Gold-bearing Quartz, which I
received at this point of my journey, determined me to instruct
the District Gold Commissioner to cause the mountains west
of Harrison River where the Quartz was found, to be carefully
examined, as there is a possibility of discovering and turning
to advantage, the lead from whence it came.

16. There are many extensive Quartz-veins in the valley
of the Harrison, but none of those which have been inspected
contain visible traces of Gold. The bed of the river,
however, yields gold almost everywhere in small quantities,
and at one place, twelve miles from Douglas, a party of
French Miners have brought in Sluices, and are now working
to great advantage, making as much as ten dollars a day to
the man.

The only drawback is the shortness of the working
season, which they represent as limited on the one hand by
the flooded state of the River in summer, and on the other,
by the severe cold in winter, which is found to have the effect
of preventing the amalgamation of the fine particles of Gold,
and much is therefore lost in the process of washing.

Their statements are no doubt in part true, but I think
it may notwithstanding,

be safely concluded that all these
difficulties will be over come, and this part of the country
be profitably worked, whenever men of greater skill and
application turn their attention to the subject.

17. Some of the tributaries of the Harrison also yield
a fair return of Gold, varying from five to ten dollars a
day; but that will not satisfy men whose excited imaginations

indulge in extravagant visions of wealth and fortune to be
realized in remoter diggings. These all with one accord
rush off to the Quesnel and Cariboeuf countries, and neglect
the less productive Districts.

18. A number of fine specimens of coarse Gold have lately
been brought by Indians from the Lillooet River, beyond the
Lake, and I shall not fail to have its course carefully

searched, at the public expense, should no private adventurers
in the meantime anticipate that intention.

19. The paddle-wheel, 25 horse-power Steamer "Martrell,"
a small boat of 50 tons burden, built by Mr Decker, an
enterprising American, conveyed my party in four hours to
Port Pemberton at the further extremity of Lillooet Lake.

There is nothing to prevent vessels of a much larger
class than the "Martrell"

from running on this Lake, as it
is deep enough to float a 500 ton ship, and there are no
rocks, or concealed dangers whatever. It is in fact a
Highland Lake, surrounded by lofty mountains rising abruptly
from the water's edge. Port Pemberton is five miles distant
from the "Meadows," a fine tract of several thousand acres
of rich alluvial land, situated at the mouth of the Lillooet River.

A settlement is already formed at that attractive
spot, and the soil is most productive, the settlers having
raised this year excellent crops of Oats, Indian Corn,
Potatoes, and Hay; the Barley however, was indifferent, in
consequence, it was supposed, of imperfect tillage: but I
never saw better garden-stuffs of all kinds, especially
tomatoes and cucumbers, which were exceedingly fine. Mr
Jones, the oldest and principal settler, raised last year, as he assured me, a

very fine crop of potatoes, for which
he found a ready sale at five pence a pound, and thereby
realized the large return of upwards of £240 an acre.
Having this year a much larger crop, he expects to do better,
though the price of vegetables is now comparatively moderate,
being 50 per cent lower than last year.

20. Near the settlement is an Indian Reserve of several
hundred acres of

land which is retained for the benefit of,
and occupied by, about 30 native families, who live on the
most amicable terms with their white neighbours, and look
healthy, clean, and altogether in very comfortable
circumstances. They live by fishing, and on the produce
of the chase, and of the land, which they cultivate, to
some extent, with care and skill. They appear happy and
contented, and had no complaint whatever to make.

21. The Horse-way, formed in the year 1858, is still
the only road from Port Pemberton to Anderson Lake, the
distance being about 34 miles. It is a fair and passable
road of the kind, but must be improved into a Cart-road
without delay. The line of Road runs between parallel
ranges of mountains, rising on both sides with the unbroken
regularity of a wall, into dark, rugged, and gloomy masses,
thousands of feet

above the mountain stream that traverses
the valley beneath, which is in places a mere defile, and
nowhere exceeds two miles in breadth.

The Summit, or Half-way House is prettily situated on
the mountain side overlooking a rich expanse of arable land
covered with a profusion of potatoes, beets, carrots, tomatoes,
cucumbers, and other vegetables; a certain proof of the
great capabilities of the soil and climate. A large stock
of hay

was also carefully put up by the provident owner for
winter use.

22. The country from that point presents a more cheerful
aspect. The river winds along the mountain side toward Lake Anderson, affording lovely views of the exceedingly beautiful valley beneath, with its gay covering of bright green woods.

23. We arrived at 

Port Anderson just in time to participate
in the trial trip of the "Lady of the Lake" Steamer, and a
most successful one it proved to be: the machinery working
well, and no casualty whatever occurring to cause delay. We
had to boat over Lake Seaton, as the Steamer usually plying there was under repair. A walk of five miles from Port
Seaton brought us to the banks of Fraser River, and to the
mining town of 

Cayoosh.

24. The country between Douglas and Cayoosh probably
contains a smaller proportion of agricultural land than any
other District in British Columbia. The whole District may
be truly described as a succession of valleys and mountains
covered with woods almost to their rock summits, and abounding
in rivers and streams of every size. Forests of magnificent
trees, and great water-power

constitute its natural advantages;
its metaliferous resources, though probably vast, having yet
to be explored.

25. Houses and fields begin, here and there, to break
the cheerless solitude of the valleys; and in no instance
that has come under my notice, has the husbandman been
disappointed of his reward. Its genial climate may be
inferred from the fact that tomatoes ripen in the open air,
and had

come to full maturity at the end of August, when
melons raised in the same manner, were nearly fit for use.

26. The settlers, though few in number, were full of
hope and confidence; pleased with the country, and satisfied
from experience that the climate is one of the healthiest in
the world. The winters are moderate, the minimum temperature
being, zero, Farenheit; but the cold is seldom so severe.

The Lakes have never been known to freeze, nor the snow to
lie so deep as to interrupt the ordinary traffic of the road.

27. The District is, in short, not wanting in any of
those conditions which contribute to the comfort and happiness
of man; and should the explorations now in progress add the
precious metals to its known elements of wealth, there will
be no want of

inducements to attract and retain an industrious
population.

28. As the road advances from Port
Seaton towards Fraser
River, a marked change is observed in the character of the
country; the mountains are left behind, the massive forests
gradually disappear and are succeeded by green hills and
open plains, dotted with fine old trees of the species "Pinus

Ponderosa". The change is grateful, the contrast bringing
into bolder relief the charming scenery of Cayoosh, which is
situated about half a mile from Fraser River.

29. This being the centre of a flourishing trade, where
all goods brought from Douglas are necessarily deposited in
their transit to the interior, and the chief town of a valuable Mining District, a Stipendiary Magistrate,

Mr Thomas Elwyn, who also acts as Gold Commissioner, is stationed here. Successful attempts at cultivation have been made on a small
scale near the town, and streams of water from the neighbouring
hills have been skilfully diverted from their natural course
and applied to the important purposes of mining, and of
irrigating the soil, which thereby acquires a degree of
fertility and productiveness otherwise

unattainable in a
climate seldom visited by summer showers. Cayoosh is thus
a place of much real and prospective importance.

30. I found nothing defective in the state of the public
administration. The people are satisfied with the laws. The
District accounts appear to be kept with order and regularity,
and Returns of the local revenue have been duly

made at
proper intervals to the Colonial Treasurer. The regular
establishment consists of a Magistrate and one Constable,
who attend to all duties connected with the public service;
the former being however fully authorised to employ casual
aid whenever emergencies arise.

31. An Address which I received from the principal
inhabitants of Cayoosh makes no allusion to any

local grievance affecting the interests of the Town or District,
nor suggests any change in the Mining or general laws of
the Country. The object of the Address, of which a Copy is
transmitted, was to urge the early sale of town lots at
Cayoosh, protection for the Chinese miners, and the removal
of Stake-nets, and all obstructions having the effect of
preventing the ascent of Salmon from the sea to the inland rivers.

32. I gave immediate attention to those matters, and
addressed a communication to the Commissioner of Lands and
Works, expressing regret that early measures had not been
taken to meet the public demand for Town Land, as delay in
such cases discourages settlement, checks improvement, and
is ruinous to the Country.

33. I encouraged the inhabitants to build, and improve
their Lots, with

the assurance that the value of such
improvements would be added to the upset price, and reserved
for the benefit of the holder when the lots are sold.

They will in that way be fully protected from loss.

34. The Assizes were opened by the Judge of British
Columbia during my stay at Cayoosh, for the trial of two Indians charged with having murdered

two Chinese miners.
The facts were established on the admission of the accused
themselves; but, it appearing from the evidence that the
deceased were the aggressors, and had been slain without
malice prepense, in a casual affray, arising out of an
indecent assault committed on the wife of one of the Indians,
the jury returned a verdict of "manslaughter" against one
of the prisoners, and found the other not guilty.

35. I had an opportunity of communicating personally with the
Native Indian Tribes, who assembled in great numbers at Cayoosh during my
stay. I made them clearly understand that Her Majesty's Government felt
deeply interested in their welfare, and had sent instructions that they
should be treated in all respects as Her Majesty's other subjects; and
that the local Magistrates would attend to their complaints, and guard
them from wrong, provided

they abandoned their own barbarous modes of
retaliation, and appealed in all cases to the Laws for relief and
protection. I also forcibly impressed upon their minds that the same
Laws would not fail to punish offences committed by them against the
persons or property of others.

I also explained to them that the Magistrates had instructions to
stake out, and reserve for their use and benefit, all their occupied
village sites and cultivated

fields, and as much land in the vicinity of
each as they could till, or was required for their support; and that they
might freely exercise and enjoy the rights of fishing the Lakes and
Rivers, and of hunting over all unoccupied Crown Lands in the Colony; and
that on their becoming registered Free Miners, they might dig and search
for Gold, and hold mining claims on the same terms precisely as other
miners: in short, I strove to make them

conscious that they were
recognized members of the Commonwealth, and that by good conduct they
would acquire a certain status, and become respectable members of
society. They were delighted with the idea, and expressed their
gratitude in the warmest terms, assuring me of their boundless devotion
and attachment to Her Majesty's person and Crown, and their readiness to
take up arms at any moment in

defense of Her Majesty's dominion and
rights.

36. Three exploratory parties were dispatched during my stay, from
Cayoosh: the first, under the charge of Sapper Duffie, [James Duffy] had orders to
examine a route by the Cayoosh River from Port Seaton to Lillooet Lake,
reported by the natives to be more direct, and in many other respects
more convenient than the present route by Anderson Lake; 

the second
under Sapper Breckenridge, who is directed to examine the character and
capabilities of the Country between Cayoosh and Bridge River; and the
third, composed of Mr Martin an intelligent English Miner, and two
Natives, was dispatched to the mountains east of Port Anderson to inspect
certain Quartz veins, said to be auriferous.

37. Lytton was the next stage in my progress. There is a good
Horse-way from Cayoosh, but travelling by the River being more
expeditious, I chose that alternative, and made the run of seventy miles
in five and a half hours. The stream is swift, and a number of dangerous
rapids under it in part impracticable in high water, and unsafe at all
seasons.

38. The Mining Bars

were, with few exceptions, deserted, or
occupied by Chinese and Indians, who appear to form the great body of
Miners on this part of the River.

39. Mr H.M. Ball is Stipendiary Magistrate and Gold Commissioner
for the Lytton District; and with the exception of one regular Constable,
there is no other person on the Establishment; whenever circumstances
render

a larger force indispensable, it is made up by means of casual
assistants and special Constables called out for the occasion.

40. I granted a sum of £100, at the petition of the inhabitants, in
aid of a Horse-way to facilitate the transport of goods to Alexandria and
Quesnel River. Other small sums were also granted for Bridges, and to
improve the communications with Quayome. A party was

also dispatched to
examine the country between Van Winkle Bar on Fraser River, and Lillooet Lake, with the view of opening a Horse-way between those places.

41. Proposals were lately made by a private company, to throw a
Bridge, at their own expense, over the Thompson at Lytton, to be repaid
by a system of Tolls; and the negotiation will probably be concluded in a
short time, as I am

desirous of promoting so useful a scheme.

42. The gardens about this town are highly productive, and furnish
a profusion and variety of vegetables; but, considering there is no want
of good soil and clear land, I was surprised to find that not a single
farm had been opened in the District. The want of roads, and the
enormous cost of transport, may in some measure account for that
circumstance, but

it also strongly marks the character of a population
devoted to other pursuits, and who probably look to other countries for
a permanent home.

43. Complaints were made here, as at Cayoosh, of the non-sale of
Town Lands, and I again addressed the Commissioner of Lands and Works on
the subject, directing an early sale on the spot, through the agency of
the District Magistrate.

44. The Indians mustered in great force, during my stay at Lytton.
My Communications with them were to the same effect as to the Native
Tribes who assembled at Cayoosh; and their gratitude, loyalty, and
devotion, were expressed in terms equally warm and earnest.

45. The further Report of my journey to Shimilkomeen, and Rock
Creek, I will take the liberty of communicating

to Your Grace hereafter,
as this Despatch has been drawn out to a greater length than I had
proposed.