No. 16

I have much satisfaction in communicating to your Lordship,
information of the general welfare of the settlements on Vancouver's
Island, and its Dependancies.

The Colony has been this year frequented by the northern Indians in
greater numbers than ever; all parts of the mainland coast south of Cape
 Spencer, in north latitude 59o, having furnished its quota of savages, and a large body of Queen Charlotte Islanders, the most
warlike, ignorant and barbarous people on the coast, swelled the
collective number to something over 2000 Souls.

Last year I tried the effect of a general order, which induced the
most dangerous of the savages, to leave the settlements, and we thereby
succeeded in banishing them for the time; but their numbers were so
formidable this year, that without a sufficient force at my disposal to
compel obedience in case of resistance, I thought it more prudent to
tolerate the evil than to expose the weakness of the Executive, in a
vain attempt to drive them from the settlements.

I however assembled the principal Chiefs, and spoke to them
seriously on the subject of their relations with the whites, and their
duties to the public, and after exacting a pledge for the good behaviour
of their respective Tribes, I gave them permission to hire themselves
out as labourers to the white settlers, and for the public works in
progress.

The plan has been so far successful that they have been guilty of
no grave offences, and have submitted, in all cases to the decisions of
the Magistrates and received the punishments inflicted without a murmur.

They begin in fact to have a clearer idea of the nature and utility
of Laws, having for object the punishment of crimes, and the protection
of life and property which may be considered as the first step in the
progress of civilization.

The greater number of those people have lately departed with their
summer earnings to their distant homes, and will not return to
Vancouver's Island, before the spring of 1856; those who still remain
about the settlements will spend the winter here, their numbers not
being so great as to make their presence dangerous, or to excite any
alarm on account of the peace or safety of the Colony.

The presence of so many armed barbarians in a weak and defenceless
Colony, was a subject of great and unceasing anxiety. I had no fears as
to any combined or preconcerted attack on the settlements, for we had
information of all their movements, and would have been prepared to meet
any overt attempt at violence, but I dreaded the sudden ebul[l]itions of
temper common to all savages, which any petty difficulty might have
called forth and brought on a general affray, when we were unprepared to
protect life and property from their fury.

Besides a general order warning the settlers to be on their guard,
against violence or treachery, I raised a small police force of our
active men to detach on emergencies to the aid of any settlers who might
apply for assistance, relying otherwise for defence on the co-operation
of the population at large.

Your Lordship must however be aware that a force of peaceful
citizens hastily mustered and imperfectly armed are ill adapted for bold
measures, and I would strongly recommend, that a regular force of 20 or
30 men * should be raised and equipped for defence, particularly during the
presence of the Northern Tribes of Indians, to serve as a nucleus for
the civilian force, and to undertake the really dangerous service, which
none but men of stirling courage are fit to encounter.

I doubt not that your Lordship will favor me with your instructions
in regard to that proposal, and I trust it will meet with your approval.

I have just completed a Census of Vancouver's Island, arranged
under four distinct heads, for the information of Her Majesty's
Government, which is now herewith forwarded.

Your Lordship will observe that

Table 1 Gives the population and ages

Table 2 The number of Schools and Pupils receiving education.

Table 3 Refers to Agricultural Stock and Farm Products

Table 4 Shows the number of dwelling and out houses.

I have taken a great deal of trouble in compiling those Tables,
which are still in some respects incomplete, they nevertheless exhibit a
pretty correct view of the statistics of the Colony.

The valuations of Farms and Implements given in Table No. 3, are
taken from the estimates of the Proprietors themselves, but no Town
property is included in those valuations.

**
I have also the honor of transmitting herewith a statement shewing the
number and tonnage of British and Foreign vessels which have entered and
cleared at the Port of Victoria, between the 5th July 1854, and the
5th of July 1855, and also a statement shewing the number of vessels
belonging to this Port. The value of the Imports and Exports is also
shewn in another statement as taken from the Books of Her Majesty's
Collector of the Customs.***

Those Documents exhibit very little improvement in the general
commerce or export trade of the Island, owing to the causes reported in
my Despatch No 22, of the 13th May 1854.

Therein I took the liberty of pointing out to His Grace The Duke of
Newcastle, the unfortunate circumstances which then operated, and still
continue to operate, against the expansion of trade and enterprise in
this Colony, debarred as it is by its remote position from Commercial
intercourse with Great Britain, and all other parts of Her Majesty's
Dominions;**** as none of the staple productions of the Colony, consisting of sawn
Timber, Masts and Spars, Fish and Coal, will defray the expense of
transport to distant countries.

Our foreign Trade is therefore confined to the Sandwich Islands,
and the Ports of California. An import duty of 5 per cent is levied
upon all foreign Goods imported into the Sandwich Islands, a moderate
charge which does not peculiarly affect the trade of Vancouver's Island,
as it is levied on the productions of all countries indiscriminately.
The Trade of the Sandwich Islands is however limited and does not afford
a sufficient outlet for our productions.

The import duties levied in the Ports of California, ranging from
25 to 30 per cent, on the first cost, added to the shipping charges of
all foreign Goods is, almost equivalent, to a prohibition of commercial
intercourse.

Thus taking a ton of Coal for example, its dutiable value at San
Francisco is equal to 1.10.0 Sterling, on which is levied a duty of 30
per cent forming a charge of nine shillings on the ton, or a sum nearly
equivalent to the cost of production. Duties on the same onerous scale
are also levied on the fish and timber of this Colony, when exported to
California. Those duties tell with peculiar severity against the
British exporter, who has to compete in that market with the fish,
timber, and Coal of Oregon and Washington Territories, which are
admitted into the Ports of California duty free, while the British
exporter as before observed has to pay on produce exactly of the same
description, an import duty of thirty per cent.

Your Lordship will thus perceive that the export trade of
Vancouver's Island, can never expand under circumstances so decidedly
unfavourable, and without some effort to unfetter enterprise, the Colony
can never prosper.

The only remedy for the evils of our Commerical position, which
occurs to me at this time, is to extend the Treaty of Commercial
Reciprocity, with the United States to Vancouver's Island, as well as to
the other British north American Colonies.*****

We could offer in return the valuable right of fishing on the
coasts of Vancouver's Island, which is much coveted by the Americans in
this quarter. Public feeling in California, as well as in Oregon and
Washington, would I think be found decidedly favorable to such an
extension of the Reciprocity Treaty, and it would clearly prove of great
advantage to both parties.

To Vancouver's Island it would throw open the extensive markets of
Upper and Lower California, and on the other side that State, would
receive a regular supply of Coal, Salt Fish masts and spars of equal or
better quality and at less cost, than could elsewhere be procured.*****

The white population of the Island has not been much increased for
the last twelve months, by spontaneous emigration, and the sales of
public land comprise only about 1000 acres.

Twenty three Coal Miners with their families forming collectively
about 109 persons sent out from England, by the Hudson's Bay Company,
for their coal works at Nanaimo, is the largest accession of white
inhabitants the Colony has received during that period.

The attention of this Government having been strongly called, by
the wants of the inhabitants, to the improvement of the internal
communications of the Colony, we have for some months past, been engaged
in the arduous undertaking of connecting the settlements by means of
roads carried through the forests, in the most direct line, from one
hamlet to another, an expensive and laborious work. About 12 miles of
road, involving the construction of six Bridges, one of which is carried
over an arm of the sea 536 feet broad, is the only part of that
undertaking which we have had time to finish, and the work is
progressing satisfactorily.

The Victoria District Church will be finished before the end of the
present year. The Revd Edward Cridge a clergyman belonging to the
Church of England, is the District Minister, and is highly esteemed and
respected by all his hearers.

Three District Schools have been opened in the Colony, and have
collectively 81 Pupils regularly in attendance.

I have before mentioned that the present exports of the Colony,
consisted of Coal, Deals, masts and Spars, Salt Fish and oil.

*******

The Coal is procured at the Settlement of Nanaimo, where the Hudson's
Bay Company have made a large purchase of Land, and commenced an
extensive Coal work.

Two valuable beds of Coal varying from 5 to 7 feet in thickness are
found within 100 feet of the surface; the Coal is bituminous and is
greatly prized for domestic consumption, and for Steaming purposes. The
produce of those works may be increased, by increasing the number of
hands, to any desirable extent.

Another source of wealth and enterprise may be found in the
magnificent Ship Spars, produced on Vancouver's Island, which in point
of size and comparative strength are probably the most valuable in the
world, and may be procured in any number, even were the demand to
include the supply of Spars for the whole British Navy. A Company was
formed in this country, for the exportation of ships masts and spars, to
England; but the parties finding that they had not a sufficient command
of capital for the undertaking, discontinued the business, after
preparing two cargoes of excellent masts ranging from 75 to 120 feet in
length which still remain on hand.

Should masts be required for the Royal Navy, it would be an easy
undertaking to procure them here, provided the dimensions did not exceed
120 feet in length with a proportionate girth.

The Spar Company got out those cargoes of ship spars, in
consequence of an arrangement which the Lords of the Admiralty had
concluded with a Captain Swinton, by which it was agreed that certain
stated prices, mentioned in the deed of contract, would be paid to him
for masts of given sizes. Should their Lordships still desire a supply
of Spars, this Company would doubtless undertake to furnish any number
on the same terms, as it was agreed to give Captain Swinton, and I would
be most happy to lend my assistance in making such an arrangement.

The oil exported from this Colony is procured from the native
Tribes inhabiting the west coast of Vancouver's Island, ******** and is manufactured by them from the Whale and Dog Fish. It is of
excellent quality, and has a high character in California where it
brings from two to three dollars a gallon, in consequence of retaining
its fluidness, and burning freely in the coldest weather.

It is estimated that a quantity equal to ten thousand Gallons was
purchased from the natives of the west coast, last year, and considering
the imperfect means they possess for taking the fish, and trying out the
oil, it is not unreasonable to suppose that with the use of proper
means, the returns of Oil would be very greatly increased. The Oil
trade is carried on by a few enterprising individuals who live among the
Indians, and collect the article as it is manufactured by the natives. ********

Extensive fishing Banks are found on the west coast of Vancouver's
Island where an infinite number of halibut and other fish are caught by
the natives. The Rivers of the coast abound with Salmon, which are
taken in great abundance and large quantities may be cured for
exportation whenever circumstances favor the enterprise of the
Colonists.

I beg that your Lordship's influence may be exerted on behalf of
this poor Colony which will become with proper encouragement, one of the
valuable possessions of the British Crown.

I have not yet been able to make out a satisfactory census of the
native Indian Tribes of Vancouver's Island; the number is probably about
22,000, of all ages, forming part of two distinct people, as is proved
by the radical difference in their languages.

The deportment of the natives is friendly towards the whites, and
every precaution is used on our part to conciliate their friendship by
rigidly protecting their rights; teaching them at the same time, to
respect the rights and property of others.

Having thus briefly touched upon the subjects most intimately
connected with the present state and future progress of this Colony, I
will not trespass further upon your Lordship's time, on this occasion.