Separate

I have the honor to inform your Grace that I left Victoria
on the 15th Instant on a visit to British Columbia. I
arrived at this place on the evening of the same day, and I
have since been engaged with business of great public importance.

2. I was glad to observe that this City had greatly
improved in appearance since my last visit, and that many new
buildings have been erected, and the surface in many parts
cleared of the gigantic stumps and fallen trees that obstructed
the thoroughfares and encumbered the ground. The erection of
a Court House and Buildings for the Assay Office has also
greatly added to the appearance of the place and increased
the bustle and activity which pervades the Town. Trade is
also on the increase. Two Steamers

of from Two to Three
Hundred Tons burthen are plying with goods and Passengers
between Fort Victoria and New Westminster, where their Cargoes
are discharged, and the inland transport is carried on from
thence to Douglas and Yale by four Stern wheel river Steam
Boats varying in burthen from 50 to 200 Tons, which now make
two trips a week to those places.

3. The Custom House Receipts, having for the last two weeks
somewhat exceeded the sum of One Thousand pounds

of Weekly
return, corroborate the opinion I have expressed with respect
to the state of trade, and indicate the spirited manner in
which supplies are being sent into the mining Districts, and
the confidence entertained by business men in the auriferous
resources of the Country.

4. The effect of the pre-emption law is already observable
in the forest clearings made by Settlers in the densely wooded
land on the banks of Fraser River. The cost of clearing such
land by means of hired labor ranges from £15 to £30

an acre,
and it will consequently never prove an attractive investment
for capital; such land cannot be cleared to advantage otherwise
than by the actual Settler investing his own labour in the
formation of a permanent home and property for himself and family.

5. I have given much anxious thought to the subject of
settling British Columbia, and the conclusion is more than ever
forced upon me that it cannot be successfully accomplished
without adopting a very liberal land system. I am strongly
induced

to view the public land simply as a source of revenue,
and provided an income of equal or greater value can be
realized by other means, it does not appear wise or expedient
to lock up the public land under a system which practically
places it beyond the reach of purchase by ordinary settlers.
It is evident that without population a revenue for the
support of Government is unattainable, and unproductive land
is next to valueless both to the Country and to the Crown.
The sale of land affords a temporary Revenue,

but the
Settler indirectly by the payment of duty on the foreign
articles he consumes and by means of a small direct tax
which could be levied on the land he occupies, will become
a permanent contributor to the revenue, and therefore
although the land may have been acquired for nothing, and
brought no revenue in the first instance, yet, in such case,
the Crown in the end would become the gainer by his presence.
If the public land could be sold at a high upset price, and
the Country at the same time

filled with people, there would
be an advantage in continuing the present sale price of land,
but if one or other of those objects must be sacrificed, it
is evidently preferable to have the population, and to grant
the land without purchase, or at a much lower price than the present.

6. These observations are thrown out merely for the purpose
of acquainting your Grace with the impressions made upon me by
the present circumstances of this Country, and I propose to
bring the subject under the consideration

of Her Majesty's
Government, in a more formal manner, when I have arrived at
a clearer and better supported conclusion.

7. The inhabitants of New Westminster having expressed
a great desire for the incorporation of their Town, and the
appointment of municipal Officers to manage its revenues, I
consulted their select Committee as to their views, and as to
the best means of carrying out their wishes. Their propositions
are extremely moderate, embracing chiefly two points, viz.
the right of taxing

themselves, and of applying the proceeds
of such taxes to grading the Streets, and to the general
improvement of the Town. After several interviews, and
obtaining the sense of the people at a public meeting with
respect to the amount of taxes they wished to raise, and as
to whether such taxes should be levied on an arbitrary
valuation or an actual assessment of property, the draft
of an act was made containing the following provisions:

1st That all persons subject to the payment of rates
according to the act, shall be entitled to vote at Elections
for members of

the Town Council.

2nd That the Town Council shall consist of Seven Members,
who are to hold Office without remuneration and for one year only.

3rd That none but British Subjects, or Foreigners who
have become naturalized British Subjects, shall be eligible
for Councillors; and in addition they must be possessed of
property valued at not less than Fifty Pounds Sterling, and
shall have resided at least 6 months in New Westminster.

4th That the Town shall be divided into 4 wards, each
returning a certain number of Councillors.

5th That the Council shall be empowered to levy rates
on property within the Town, as may be determined and
authorized by the majority of rate payers; and to cause
the proceeds of such rates to be expended under the direction
of the Chief Commissioner of Lands and Works.

6th That the Council shall be authorized to levy a tax
not exceeding 2 per Cent on the assessed value of all Town
Lots, and Property within the Town for the years 1860 and
1861, and to enforce payment thereof.

7th That the said Council shall be empowered to levy a

further rate over and above the said two per Cent for the
said two years, provided the majority of the rate payers
deem it necessary and require them to do so.

8th That the said Council shall be further authorized to compel
Town Lot Holders to cut down all the Trees on their respective Town Lots,
except such as may be reserved for ornament, and in default to cause the
Trees to be cut down and the cost thereof not exceeding Seven pounds
Sterling on each

Town Lot to be levied on the property.

Such is the substance of the proposed Act, which will be immediately
put into the hands of the Attorney General for proper drafting.

8. Your Grace will observe that the powers of the Council
are so limited by the supervision of the Commissioner of Lands
and Works on the one hand, and by the rate payers on the other,
as almost to remove the danger of abuse, and I am of opinion
that the City will be greatly benefitted by its exertions and
by the expenditures on substantial and much needed improvements.

Trusting that this measure may meet with Your Grace's approval.