No. 8, Executive

I have much satisfaction in communicating for the information of
Her Majesty's Government, that this Colony continues in a state of
profound tranquillity. No difficulty of a serious nature has occurred
with the Natives for many months past. Charges of theft have been
brought against several native labourers, and one native was lately
committed to Jail, for assaulting, with a reaping hook, and wounding in
the heat of passion a white man, during a quarrel, which took place
between the parties in the field, but those cases were 
all summarily
disposed off, and the offenders punished according to law, without

exciting any ill feeling, in the minds of the Natives at large, who
appeared to approve, and feel the justice of all the proceedings
connected with those cases. This is a proof of their increasing
intelligence, which I have much satisfaction in reporting, as the state
of feeling among the Natives, is a matter of the greatest importance, to
us, seeing that probably, the worst calamity that can befall this
Colony, in its infant state, is the hostility of the Native Tribes, and
the most important duty of the Executive, for many years to come, must
be, by firm and judicious measures, to restrain them from evil and to
conciliate their good will, a duty often rendered difficult by, the
recklessness, and imprudence of the Colonists themselves.

In consequence of the wise and humane regulations of the Hudson's
Bay Company, the native Indians of Vancouver's Island, have not acquired
a taste for ardent spirits a vice from which they are fortunately free,
otherwise they would be much more difficult to controul.

In reference to the management of the Indians I would remark to
your Grace, that there is a subject, connected with that duty, which has
caused me no small degree of anxiety, this is the settlement of their
domestic feuds, for like all barbarous nations they levy war and destroy
each other, whenever any cause of difference exists, and such pretexts
are seldom wanting. This is a state of things inconsistent with their
present position as inhabitants of a British Colony, but heretofore I
have not attempted to interfere except in the character of arbitrator,
and for this reason, that where there is no positive law to protect, the
law of nature gives the right of self defence, and whether acting as
individuals, or collectively as nations, the right of punishing injuries
to persons, or aggressions on the Tribe at large. Having no power to
protect it would have been unjust to punish, and unwise to involve, the
government in questions of which we could learn neither the merits nor
the true bearings, and which possibly were in accordance, with the laws
of natural justice.

*

I have therefore made it a rule to confine our interference in 
their affairs to a species of authoritative advice, which has great
weight, and has produced a good effect in allaying their mutual
dissentions, so much so, that with the exception of an unfortunate
native who was lately murdered by his own countrymen, no other criminal
act, has been committed among the Natives, within the precin[c]ts of the
settlements, for the last twelve months, and I then made them understand
that such acts if committed within the limits of the settlements would
in future be considered in the light of capital offences, and punished
according to the Laws of England.

I have no fears as to the result of that measure, for the natives
themselves are sensible of its propriety and will feel the advantage of
the protection it affords, and moreover though I consider it unwise, and
something beyond the power of Government, to restrain the exercise of
their natural rights, out of the limits of the settlements, I think it
advisable to teach the natives that the settlements are sacred ground,
and must not be polluted with innocent blood.

A great part of the agricultural labour of the Colony, is at
present 
performed by means of the Natives, who though less skilled and
industrious than white men, work at a comparatively much cheaper rate,
so that on the whole, they are exceedingly useful to the Colonists.

We have done nothing of any importance in the way of legislating
for the Colony, since my report of the 11th of April,

**

and until the population increases to such an extent, as to admit
calling assemblies of the people, legislation except in very special
cases is unnecessary, and without the assistance of a legal adviser,
might prove a bane, instead of a blessing to the country; especially as
the Laws of England, by which we are now governed have met every
contingency that has yet arisen. We have provided for the
administration of Justice by appointing a resident Magistrate for each
district of the Colony,

***

except Soke, where none of the Colonists are qualified, in points of
character or education to perform the duties of that responsible office,
but such an appointment will be made, whenever circumstances permit.
One or more of the Justices hold a petty sessions on the 1st Thursday
of every month, and a 
general quarter sessions of the Peace is held once
in every quarter, to hear and determine cases, and my own time is
frequently occupied in the same manner, so that there is a regular, and
I trust impartial administration of Justice to all classes of the
community.

The law fixing the rate of duty chargeable on licences for Ale and
Spirit Shops,

****

which I submitted in my report of the 11th April last, was carried
into effect in the early part of this month, a wholesale Licence having
been taken out by the Hudson's Bay Company for which the sum of 100 was
paid, and a retail Licence by James Yates, Keeper of the Victoria Hotel,
for which he paid 120, the first, and only monies raised as public
revenue, by direct taxation in this Colony.

Those sums remain in the hands of the Governor & Council, and we
propose applying them, to opening roads and in aid of the Colonial
School.

The Colonists generally speaking appear prosperous, and contented,
with the exception of a very small party, who have arrayed themselves
against the Government, 
on the strength of grievances, which I have no
power to relieve.

They complain of the price of land, which they contend is sold at a
price above its value, and that every Colonist is entitled to a free
grant of land. Another cause of complaint is the slow growth of the
Colony in wealth and population, which they ascribe to the indifference
of the Hudsons Bay Company, in not pushing on the colonization of the
Island with sufficient activity.

The aim of that party is to induce Her Majesty's Government to
revoke the grant of Vancouver's Island, made to the Hudsons Bay Company,
by the Crown, and to take the direction of the Colony into their own
hands, trusting by that means, to see the accomplishment of their
ultimate object of procuring free grants of land, which in that event,
they expect to gain.

The supremacy of the Hudson's Bay Company is therefore the master
grievance, and a grievance, only, because, it is supposed, that the
influence of the Company is mainly instrumental in keeping up the price
of land.

That being an object which affects the personal interest of every
free holder in the Colony; there is a very general feeling in its
favour, as 
every Colonist at once perceives the advantage of procuring
land free of cost, instead of paying for it, at the present rate of one
pound Sterling, a statute acre.

The leaders of that party, the most active of whom is the Revd
Mr Staines, Chaplain to the Hudson's Bay Company, have, under various
pretexts, hitherto declined paying for the land, which the Colonial
Surveyor, permitted them to occupy, under an impression, it is presumed
that it will ultimately become their property, free of cost. They have
moreover sought to accomplish their object by dishonest means, having
falsely charged the Hudson's Bay Company, with holding a monopoly of
trade on "Vancouver's Island"; a statement entirely unfounded, and which
it would have been a direct violation of duty, on my part, as a servant
of the Crown, to have permitted, or even indirectly sanctioned.

*****

I beg to assure your Grace, that the rights, privileges, and immunities
of the subject are as well secured and fully enjoyed in the Colony of
Vancouver's Island, as in any other part of Her Majesty's Dominions, and
no Colony has less cause of complaint, on the score of public burdens,
seeing that with the exception of the charge for land, a royalty on Coal
of two shillings and sixpence, a ton, a duty of ten pence a load on
timber, cut upon the public lands, and the duty charged on spirit
Licences, no taxes whatever are levied in the Colony, and goods from
every part of the world are imported free of duty.

I trust your Grace will pardon me for touching upon a somewhat
personal matter as I consider it a duty, to give those explanations in
order to contradict certain false and dishonest statements in regard to
the state of public affairs in this Colony, which have found their way,
anonymously, into the public papers.

I beg to transmit for your Graces information, a return of Vessels
entered at the Port of Victoria, from the 16th November 1852 to the
31st July 1853, a period of eight months and a half.

We have no returns previous to the month of November 1852, a
Collector having been then for the first time appointed in this Colony,
but I may observe that the number of Ships, calling here for cargoes is
on the increase, as compared to the preceeding year, chiefly owing to
the growing exports of round and hewn Timber, salt Fish and Coal, to the
markets of California and the Sandwich Islands, where those products of
Vancouver's Island, are in great demand, a trade which is of the utmost
present advantage to the country, and which I have been at great pains
to foster and encourage, by permitting foreign vessels to take in
cargoes at all the inhabited Ports of the Colony, and exempting them
from all charges whatsoever; except a small fee paid for clearance, to
the Collector at Victoria.

In the way of public improvements, I have to inform your Grace,
that we are now engaged in erecting buildings for a District School near
this place, and materials are also preparing for the erection of a
church capable of containing a congregation of about 250 persons, which
will be suited to the present wants of this District.

We have it also in view to open, and improve the roads leading to
the different settlements, and have advertised for tenders; but hitherto
no reasonable offers have been sent in. Those expenses, will be
defrayed out of the trust fund, in the hands of the Hudson's Bay
Company.

About 7000 acres of the public lands have been registered for sale
since the month of June last, which the Colonial Surveyor, is now
engaged in laying out, in lots as desired by the purchasers, who will be
required to pay the purchase money, as soon as the surveys are
completed.

The harvest is just beginning, the oat and pea crops being
generally fit for cutting. A very favourable report of the grain crops
has been received from every part of the settlement, with the single
exception of oats, which are not so full in straw as usual; the wheat on
the contrary is heavy in the ear, with large and well nourished grains.
The weather being dry and favourable, there is every prospect of the
grain being housed in good order.

Her Majesty's Ship "Trincomalee" arrived here in the month of
July last,

******

and will I believe remain on this part of the Pacific station for the
protection of the settlements until relieved by another cruizer.

May I take the liberty of suggesting to your Grace, how very
usefully the Carpenters and seamen of Her Majesty's Ships might be
employed, while stationed here, at a very small additional expense to
the public, in erecting store houses for the use of Her Majesty's Navy,
in the magnificent harbour of Esquimalt
about five miles distant from
Victoria, where there is a site admirably adapted to that purpose.

*******

This, I conceive, would result, in a great saving of expense to the
Government, as the stores and provisions wanted for the cruizers
stationed in the Northern Pacific, might be shipped from England, direct
for the Naval store houses at Esquimalt and remain there until required;
instead of being first landed, as by the present arrangement, at
Valparaiso, and reshipped from thence to this country in vessels
chartered for the purpose, thus involving the risk and expense of a
reshipment, and of landing and storage at Valparaiso, which might, in
whole or greater part, be saved, by a direct shipment from England to
Vancouver's Island. That plan if adopted would besides the aforesaid
saving of expense, prove a great convenience to the public service, and
enable Her Majesty's Ships to remain longer on the coast, without being
detached to the Ports of California or elsewhere for supplies.

It would also be a very popular measure with Her Majesty's subjects
in this country, and would greatly tend to the progress of colonization,
and therefore chiefly, I have submitted it for your Grace's
consideration.
[Marginal note: End Ext to Admty

This letter will be transmitted by Commander Prevost of Her
Majesty's Steam Sloop "Virago", shortly about to leave this Port, for
the Port of San Francisco, for supplies expected from Valparaiso, and to
receive instructions from the Commander in Chief of the Pacific
Squadron, in respect to her future movements.

Commander Prevost, while employed on this part of the station, has
evinced much zeal in the public service, and been most active in
carrying out the instructions he received from this Government.