No. 79

I have had the honor to receive your Despatch No. 17 of
the 11th April forwarding an extract from a despatch,
addressed by Rear Admiral Denman to the Board of Admiralty,
suggesting that a Colonial Vessel should be employed for the
protection of the Coasts of this Colony and Vancouver Island.
You direct me to report upon the practicability of adopting
Admiral Denman's suggestion and providing for the requisite
expenditure out of Colonial Revenue.

2. Towards the close of last year I had some conversation
on the subject referred to in your Despatch, with Admiral
Denman. I regret that I did not follow his example and at
once report its substance to the Head of my Department. I
had been made aware through your despatches that the Colony
had to depend almost exclusively for its protection upon its
own resources and that the fostering care afforded during its
earlier years was at an end. I suggested to the Naval Commander
in Chief that the Lords of the Admiralty should be recommended
to hand over a gun boat or other steamer for the use of this
Colony. That, once transferred, the whole charge for her support
should fall upon the Local Revenue. That the Commander of the
Vessel, while on Colonial Service, should be a Naval Officer
approved, if not appointed, by the Lords of the Admiralty. He
should receive pay not only for his service afloat, but likewise
if a man of judgement and discretion, as a Stipendiary Magistrate
of the Colony. The crew ordinarily maintained should be capable
of handling the vessel efficiently, the Colony supplying additional
force at any time when required. I proposed that the ship should
be under the orders of the Governor, when paid by the Colony, but
that the Senior Naval Officer be empowered to demand her transfer
to the Imperial Service in the event of the Mother Country being
engaged in a war with any maritime power. I mentioned that in my
opinion the one large gun would be inconvenient and unnecessary
for the Colonial Service and suggested that smaller ones would be
more efficient for operating against Indians or smugglers. It
scarcely fell within my province to say that a heavier armament
might at all times be ready for her use at Esquimalt. Finally
I expressed my opinion to Admiral Denman that the sailing qualities
of the vessel would be almost of equal importance to us as her
efficiency under steam. The distances in this Colony are very
large and it might be difficult for a Steamer of moderate
dimensions to carry fuel enough for a voyage, for instance, to
Queen Charlotte's Island & back. I should however mention that
seams of anthracite coal are now being worked on that Island.

3. The project above detailed would, I think, if carried out,
be very beneficial to the Colony and a saving to the Home Government.
Large and valuable Ships of War would rarely, if ever, have to
navigate the narrow and deep Inlets which indent this Coast, and
are the scene of the greater number of outrages of which we have
to complain. The vigilance of the Local Government would be
extended over the waters as over the lands of the Colony, and
the civilization of the Indians furthered on the Coast as it is
now in the interior.

4. While the two Colonies are in their present condition of
total separation, I am of opinion that no joint action in regard
to a Colonial Vessel is practicable. British Columbia alone
would find work enough for one ship.

5. As to the ability of this Colony to bear the expense, I
would mention that the extreme lateness of the season prevents
my sending any confident estimates of our probable Revenue for
the year. We can apply but one test. The Customs receipts at
New Westminster are sixteen per cent already in excess of those
for the corresponding period of 1864, although the interior has
been closed by ice for an unprecedented length of time. We have
new Gold fields superior in extent, and approaching in wealth
to those of Cariboo. The snow has prevented our yet receiving
returns of Revenue from the Kootenay and the new Customs Stations
on the American frontier. The new Gold export tax has scarcely
come into operation yet and the regular mining season only
commences on the first of June. I look with much confidence to
our total receipts for 1865 being fifty per cent in excess of those
of 1864.

6. Under these circumstances I entertain little doubt as to
the ability of the Colony to keep in an efficient condition of
service and repair a vessel entrusted to us by Her Majesty's
Government.

7. I refer in support of my present recommendation to two
despatches which will accompany this Communication. No. 77
reports the murder of Mr Ogilvy, the Customs Officer at Bella
Coola. No. 78, the piratical attack on the "Nanaimo Packet" 
in one of the narrow Inlets off Milbank Sound. I may mention
likewise that the absence of the means of conveyance will
preclude my visiting this summer the Mission Station at
Metlakahtla and Queen Charlotte's Island.