No. 40

1. Since my last report on the state of the country of the
9th of
Instant,

there have been no decided changes or events
of much importance connected with British Columbia.

2. The exodus from Fraser's River continues at about the
rate of 100 persons a week. The reasons assigned by those persons
for leaving the country
are various, some having families to visit and business to settle
in California, others dreading the supposed severity of the climate,
others alledging the scarcity, and high price of provisions, none of
them assigning as a reason for their departure the want of gold.

3. There has lately been a great deal of rain at Fort Yale,
and the mountain tops are covered with snow, there has been
however no severe cold weather, neither is there any snow in the
valley of Fraser's River.

4. A considerable traffic with the Upper Fraser's River is
now being started by the Harrison's River road, which will
ultimately become the great commercial thoroughfare of the country.
An unexpected obstacle to the passage of Steamers into Harrison's
Lake has been discovered since the river fell to its lowest stage, in
a shallow rapid about half a mile in length which occurs near the
entrance
of Harrison's Lake. When that obstacle is removed and no exertion
should be spared to accomplish that desirable object; there will be a
free passage for River Steamers through Harrison's Lake and to Port
Douglas at every stage of the River.

5. A Mr Hovey called upon me this afternoon to report having
struck rich bank diggings in the left bank of Fraser's River, 125 feet
from the River, and about 8 miles below the confluence of Bridge
River.

He also states that a party of 10 men who are employed, in working an
adjoining bank have succeeded in bringing in a supply of water sufficient
to run four sluices, which lately yielded 148 ounces of gold in three
weeks. The gold found is not of the flaky sort, but of that description,
which is termed in California, "round shot gold" where it is considered
indicative of the richest placers. Mr Hovey is of opinion that all
the "River benches" or "Table lands" between the Forks of Thompson's
River and the Fountain will be found equally productive in gold.

Mr Hovey also reports having seen a specimen of pure copper
that was found near the same spot.

6. It has been for some time reported that several French
Miners have discovered gold in remunerative quantities on Harrison's
River, and that they are now at work, and making fair wages, a
report which wants confirmation though it is not at all improbable
as the soil in that District is known to be auriferous and it will
I trust become a profitable mining District.

7. I have not heard from Mr Commissioner Travaillot, since
the beginning of the present month. He reports the general want of
provisions among the Miners of the Fort Dallas District, and suggests
that supplies should be forwarded to that part of the country by the
Hudson's Bay Company, or by the Government.

8. The Hudson's Bay Company may act in that matter as they
think proper, but it would, for obvious reasons, be highly
injudicious to embark the resources of Government in commercial
undertakings, even to accomplish a public object.

9. In opening an accessible communication by Harrison's River,
the Government has discharged its proper duties, leaving commercial
objects entirely to private enterprise.

10. I have the honor of transmitting herewith the following
numbers of the Victoria Gazette, which may prove interesting.
25th November.
27th November.
30th November.

11. I have been at some trouble to ascertain the amount of
gold produced in British Columbia this season, and now submit the
following estimates and returns which without professing to be
absolutely correct, will serve to give an approximate idea of
the quantities of gold dust, exported and remaining on hand in the
country.

The quantities marked thus x are actual returns and their
correctness may be relied on; the estimates are made up from the
best information I could receive on the subject.

Wells Fargo &
Co

- exported 16,593 ounces x

Freeman &
Co

- no return but estimate 9,462 "

Ballou &
Co

- in deposit 6,250 " x

Hudson's Bay Co - exported 4,000 " x

36,305

Estimates

In the hands of private parties - exported 30,000 "

In the hands of Miners, in

British Columbia 40,000 "

70,000

Supposed production of Gold since

the month of June 1858 ounces 106,305

12. The actual produce of gold probably exceeds the quantity
I have stated, an impression derived from the official returns of
goods imported into Vancouver's Island for the quarter ending with
the 30th day of September last, amounting to the large sum of
£23l,376 Sterling, nearly the whole of which appears to have been
absorbed in supplying the demand of British Columbia, and paid for
in gold dust.

13. A cutting from the San Francisco Herald of the 20th
November last, which I have just received and now forward,
corroborates the statements in this letter, and gives a return
of $511,000 dollars as the amount of Gold received from Fraser's
River by the United States branch Mint and several mercantile firms
at San Francisco, and in making that return the writer has evidently
no desire to exaggerate the resources of British Columbia.

14. The whole return is satisfactory in as much as it shews
that a very considerable revenue may be raised from the duties now
levied on Imports as soon as that law can be strictly enforced.

15. The mail Steamer has I regret to say not yet arrived
here, and it is almost certain that our letters now ready for
transmission, will not arrive at San Francisco in time for the
mail Steamer, which leaves that Port on the 5th proximo for
Panama. Our last mail was not more fortunate, and would I fear
be detained at San Francisco for the Steamer of the 5th December.

16. I have just received letters from Mr Justice Smith of
Fort Hope, who reports the arrival of the first government
mail

from this place; that the Town is rapidly improving, and that
substantial buildings are being erected and that peace and
quiet reigns throughout the District.