Separate

Since my general report marked "Separate" of the 14th
last I have received various communications from the Gold
Commissioner of Carribou West in one of which he reports the
discovery of rich deposits of lump Gold on the hills forming
the left bank of Lightning Creek. Mining in that part of the
District has been heretofore chiefly confined to the bed of
the Stream, and with the exception of a very few productive
Claims, has not been successful; it having been found impossible
to reach the bed rock on account of the flow of water from
beds of gravel and quick sand which appear to spread over
the whole valley, immediately under the alluvium some thirty
or forty feet from the surface. This obstacle having been
found in almost every case insurmountable with the Mining
appliances in use and the Trial pits being constantly flooded
the ground was rapidly being deserted and great discouragement
prevailed; when by one of those fortunate accidents of which
the history of the Gold Fields furnish many striking examples;
the enterprising firm of Nye & Company were induced to run an
adit into the hill side, 200 feet above the level of the
Stream, and there found the lead—in what is now supposed to
have been at some former period the River bed. The first
and second washings produced a return of 140 ounces of coarse
nuggety Gold, and it is supposed the yield would have been
much larger had the bed rock been carefully cleaned up.

2. This important discovery at once revived the hopes
and restored the activity of the Miners who eagerly proceeded
to stake off, and occupy the hills, on all sides of the discovery
claim and soon converted an area exceeding two miles in length
into a promising Gold Field. The Evans Company holding the
ground next to the discovery Claim have since hit upon the lead
and by last accounts they had amassed 2000 ounces of Gold
similar in size and quality to the Specimens procured from
that claim, which Your Grace will receive with this Despatch.

3. Captain Evans, late of Her Majesty's 73 Regiment of
the Line, whose name appears as a partner in the Evans Company
has been for the last two years favorably known as an energetic
Miner. He is a gentleman of good family and respectability
and is reported to have served with distinction in the Caffer
War. He has now through his own courage and successful
enterprise become part owner of a rich Mine and is in a fair
way of realizing a handsome fortune, and I sincerely hope the
influence of his example may induce other persons of like position to
try their fortunes in the rich Gold Fields of British Columbia.

4. The Gold Commissioner mentions the Welsh Company in
terms of admiration. This Company consists of Mr John
Evans overseer and 26 Miners. They arrived this year from
England having been sent out at the expense of H.B. Jackson
Esquire of Manchester who I have been informed defrays the
preliminary outlay and they are now working a tract of
auriferous land held under a Crown Lease on Lightning Creek.
The arrival of this body of skilled workmen direct from the
Mother Country is I trust the fore-runner of a new era in
the Mining industry of the Colony when British skill, capital,
and enterprise will be enlisted in the development of its
material resources. The field has heretofore been almost
exclusively occupied by a class depending solely on their
industry, and without means or credit of any kind, and their
achievements amidst extraordinary difficulties, and numberless
hardships and privations have been such as have deservedly
won the gratitude of the Colony; yet it is easy to conceive
that the work of development would have been greatly accelerated
by the employment of Capital.

There is probably no Country in the world, with so many
inviting outlets, that has been so entirely overlooked by moneyed
men, as British Columbia—to say nothing of the noble forests,
extensive fisheries, coal fields, mineral lodes, and vast
extent of waste land, the development of its auriferous deposits
alone opens a wide field for the safe and profitable employment
of Capital. I may moreover remark that the Laws of the Colony
carefully protect and invite the introduction of Capital and
population. With that view Leases are granted for cutting
timber on any of the unoccupied Crown Lands, at a mere nominal
charge, and if the alternative be preferred the land itself
may be acquired at the minimum cost of 4s/2d an acre. Royalties
are not exacted on Minerals, the Government only insisting on the
one condition of their being efficiently worked. The same
spirit of liberality pervades the Gold Fields Acts, and every
other Department of legislation affecting the development
of the Country. I may further add that these principles have
not been lightly adopted, as mere temporary measures, but
have in effect become the permanent and established policy
of the Government founded on just considerations of the
true interests of the Country. Impressed with the obvious
facts that its waste lands and undeveloped mineral deposits,
are now practically useless; yielding no return either to the
Sovereign or to the people, and that we must look to the application
of labour and Capital as the primary means of rendering these
elements productive sources of wealth; my administration has
endeavoured by liberal laws, by abolishing Royalties, and other
charges on production, and by the generous encouragement of enterprise
to produce that result. Notwithstanding these efforts the Colony
has been singularly neglected by the moneyed classes of England.

Their sad experience of California where British Capital in
large sums was wasted in hopeless speculations is probably in
some measure the cause of that neglect and it may be partly due
to their unacquaintance with the real value of the resources of
this Country, and to the fact that the Gold of British Columbia
is unknown, as such, in England, being nearly all shipped directly
to San Francisco from whence it is exported as the produce of California.

5. Reverting from this digression to the previous subject,
the discovery of the new Gold lead, it is said to yield a quality
of Gold several carats finer than that of Williams Creek, and is
easily distinguished from the latter by its peculiar form and
appearance. The Miners arguing on such data suppose they have
traced the new lead from Van Winkle downwards, through the sources
of Last Chance and Anderson, two tributaries of Lightning Creek,
and for some distance beyond Van Winkle upwards in the direction
of the Meadows, which gives it a range of nearly five miles, and
many circumstances corroborate and strongly favour that opinion.

6. In reporting from Carriboo East, Commissioner O'Reilly
states that recent discoveries of Gold have been made at "Conklins
Gulch," a tributary of Williams Creek, and that the trial pits
on "McCollums Gulch" had developed a stratum of earth yielding
from 40 to 50 ounces per day. "Jack of Clubs Creek" was reported
to be still unproductive, but the Miners appeared as hopeful and
continued working their claims as vigorously as ever. The yield
on "Lowhee Creek" and "Antler" was on the increase and work was
being resumed with great advantage on portions of Williams Creek
above the chasm, before deserted by the Miners as worthless ground.

It appears from an interesting return compiled by
Commissioner O'Reilly that the ordinary daily output of Gold,
taking only the rich claims on Lowhee and Williams Creek, varied
according to the season, and number of claims in operation; from
1000 to 2500 ounces. He has made no special return for the other
mines, but judging from the data in his possession he believes
that the aggregate output for the two Districts of Carriboo will
this year not fall short of two hundred and sixty thousand ounces
(260,000 oz).

7. I will here submit some passages of a letter from the
Revd MrSheepshanks dated Richfield 26th August giving
the opinion of a disinterested spectator on general subjects and
presenting views of the religious and social aspect of the District
which may prove interesting.

Your Excellency perhaps will remember that in an interview
which I had the honor of holding with you in the Spring I expressed
my intention with the sanction of the Bishop of endeavoring as
the Senior Clergyman of the Carriboo Mission, to erect a small
Church at this place in the course of the summer, and Your
Excellency was kind enough to promise that, as heretofore the
site should be presented by the Government. I now write to
inform you that our efforts have been successful and that we
have erected a small substantial well proportioned building
capable of holding about 120 persons. In conjunction with the
Church we have established a small library and have brought up
about 250 Volumes of Books which are now in circulation, and
seem thoroughly appreciated by the Miners and other residents.
I make no doubt that in the long winter months they will prove
very useful. As regards matters of general interest the Miners
upon this Creek seem to be doing very well; several well
experienced Miners have told me that they never knew a Creek
where such a large proportion of Claims were paying expenses
and in some the yield has been remarkably large. The Valley
is now being worked continuously for a distance I suppose of
full seven miles. Many men are working even down at Willow
river. Here of course the bed rock is at a considerable depth
the Mining is more expensive, and large Companies are necessary.
In fact, in this neighbourhood at least, we seem to be arriving
at what may be styled the "Company era" when individual Miners
must club together, and the possession of a certain amount of
Capital is requisite for sinking Shafts, running drifts, rigging
pumps, bringing in water, before Gold can be obtained, and the
work carried on on a large scale. Several Quartz veins have been
discovered bearing every appearance of richness. Companies have
already been formed to work them, and there seems every probability
that next year will see the commencement of far more permanent
mining than any that we have had hitherto.

It is thought that a considerable number of people will
remain here during the winter—it is generally said about 1000,
but this I doubt, many who have almost made up their minds to
remain will I think fly as soon as the severe weather sets in—at
present the weather is all that could be wished, but still
several hundreds will probably stay to carry on such Mining as
is practicable during the frost. Many will also be employed in
bringing in goods, the Sleigh-road is very nearly completed.
Captain Grant will finish his portion by September 1st and
competent persons assert confidently that they will be able to
bring in goods at a low rate (I believe 10 cts per lb) from
the mouth of Quesnell to this place. This would be a great boon.

8. The Mining Board of Carriboo East has entered upon its
duties with great spirit, and alacrity, holding daily sessions for
the Despatch of business, and I anticipate much advantage from
the labours of this useful body. One of its earliest Acts was
to suggest the expediency of imposing an export duty on Gold
without apparently giving much consideration to the difficulties
in the way of levying a tax which could be so easily evaded by
passing the frontier into the United States. There is nothing
to urge against the equity of the Tax, but I greatly doubt our
power to enforce it, and so long as many other methods are open
to the Executive for increasing the public revenue, by additional
taxation there can be no urgent reason for seeking that end by
the objectionable expedient proposed—which I could not under
any circumstances recommend to Her Majesty's Government either
as a measure of wise policy or of sound finance—I believe its
effect would be purely mischievous, and that it would assume
as respects this Colony, many of the worst features incident to
taxation. The Gold being chiefly carried away by the producers,
the export duty would in truth operate as a direct tax levied
on the person of every individual leaving the Colony. Irritation
and conflict would be the inevitable consequence. Evasions would
constantly take place. Organized bands of desperate men would
combine for the purpose of resisting or eluding the tax. A
numerous staff of men and Officers would be required to enforce
the Law, and thus the revenue would be absorbed by the cost of
collection. In short I think an export duty would become a
vexatious and most unpopular tax, and altogether fail of its
desired effect as a revenue measure.

9. I had the honor of mentioning to Your Grace in the 8th,
9th and 10th Paragraphs of my Despatch marked Separate of the
4th December 1862 a measure having in view some important changes in the Gold Fields Act which I conceived would greatly
promote the interest of persons working in the Gold fields, and
also contribute to the general development of the Country—but
as it was found to be unpalatable to a large body of the working
Miners who feared monopoly and as I was not perfectly satisfied
of its policy it was deemed expedient to postpone the measure.
Public opinion has since undergone a change and the majority of
those who were, at first, opposed, have now become its strenuous
advocates. The object of this measure is to make interests in
mining Claims, to any amount, transferable like other
property—saving only the rights of the Crown, and the conditions of
working and occupation under which Mining claims are now held; and I
propose having an Act prepared to effect that object.

It is intended that all transfers of Mining property made
under this Act, shall be registered with the Gold Commissioners
or other persons appointed for that purpose, and shall set forth
the full price and consideration paid in each transaction, or in
default be void—and there will be charged for the use of Her
Majesty, certain fees, proportioned to the value of the property
conveyed. In addition to the general advantages before stated,
this measure will, I trust, become a fruitful source of revenue,
without being oppressive to the interests affected.

10. The Miners are now retreating in great numbers from
Carribou and other remote Districts of the Colony on account of
the apprehended severity of winter. This will lead to a partial
suspension of Mining operations in those Districts until the
return of warm weather in Spring.

11. In the accompanying map is shewn the position of the
Carriboo Gold Leads, and Quartz reefs. The sites of "Quesnel mouth"
and of the three mining towns on Williams Creek, and of "Van Winkle"
are also indicated.

"Quesnel mouth" as a town, has only had an existence of a few
months. It is growing rapidly in size and population and from its
favourable position for trade promises to become a place of great
importance.

12. The Mining intelligence from Lytton and Lillooet, is very
satisfactory. Extensive placers have been lately discovered on
the Shuswap and Bridge river Valleys which will afford employment,
at highly remunerative rates, to a large population, and will I trust,
pave the way to further important discoveries, as these Districts
possess a highly auriferous character while in point of soil and climate
they form perhaps the most valuable and agreeable parts of the Colony.
I will herewith forward extracts from the reports of the Gold
Commissioners of Lytton and Lillooet, to furnish Your Grace with further
information relative to these interesting discoveries.

13. The public revenue, I am glad to report, is in a satisfactory
state. The Customs and Road Tolls receipts for the ten months
ending with the 31st October last amount to Seventy three
thousand, one hundred and fifty eight pounds (£73158) against Sixty
thousand and eighty seven pounds (£60087)
collected for the corresponding period of
1862; the miscellaneous revenue is also in advance of last year
to the extent of about 20 per cent though I would observe with
respect to the latter, that having only a proximate return, I am unable to give the exact amount of excess.

14. There is nothing further of much interest connected with
the Colony to lay before Your Grace.