No. 66

I have the honor to forward to Your Lordship the Blue Book of
this Colony for the Year 1870, accompanied by a short Commentary
upon these Statistics prepared by the Colonial Secretary. Mr
Hankin's Report relieves me from the necessity of remarking upon
matters of detail.

2. The Year to which these Returns refer was a period of
transition, during which legislation and all departments of
public affairs were more or less affected by the negotiations
then in progress for the Union of British Columbia with the
Dominion of Canada. It seemed generally undesirable to initiate
any modification of existing arrangements which might again
require reconsideration on the accomplishment of the greater
contemplated change. But, although some injurious effect upon
trade may have been produced by uncertainty as to the result of
the negotiations which were proceeding, and the possible change
to the Canadian Tariff, the Year was fairly prosperous in
respect of the material interests of the Colony. The
explanation of the diminution of Import Duties is to be found
quite as much in the increased production of articles of food
and general consumption within our own borders, as in diminished
consumption of imported merchandise.

3. Indeed, Agriculture, Stockraising and the minor operations
of Husbandry have been much and successfully extended both on
the Mainland and on Vancouver Island. And applications for land
for settlement have been numerous.

4. The older Gold Fields at Cariboo and Kootenay are still
productive, and give employment to a large number of miners who
conduct their enterprises upon more scientific systems than are
found in "placer diggings." Although the results may not be so
brilliant and attractive as in newer localities they
sufficiently reward steady and intelligent industry. But, during
the Year Reports were received of the discovery of "placer
diggings" on the Findlay, Germansen, and other "Creeks," or
Streams, tributaries of Peace River in the Northern part of the
Colony. The first intelligence was viewed with some degree of
doubt, as many such previous reports had been found to cause
disappointments. But, there now seems little reason to question
that gold deposits have been found in the region of Peace River
which have richly rewarded the first seekers and bid fair to be
as productive as the Cariboo district in the earlier days of the
Colony. A large influx of mining population has been drawn by
the news from the neighbouring States and territories who are
proceeding to these mines. Trade has been stimulated and all
branches of industry have received an impetus. The local
government has endeavoured to facilitate communication with the
Omineca District as it is now called, and I have sent Mr
O'Reilly, the Chief Gold Commissioner, who is an experienced
Magistrate, to that place to administer justice and ensure
order, with instructions to report fully upon the prospects
which are afforded and the conditions of the mining Camps.

5. Renewed effort is being made by several Companies to further
develop the rich deposits of Coal which Vancouver Island
undoubtedly possesses and I believe that in a short time many
new mines will be in successful operation. One at least of the
seams it is proposed to work produces Coal of quality superior to
that hitherto generally found, being in value for Steam purposes
about midway between Scotch and Welsh Coal.

6. Upon the whole Your Lordship will see that the Colony is
making progress and will enter upon its new position as a
Province of the Dominion with a bright promise for the future.
Under the arrangements for Union the condition of the finances
will be much improved. The public debt will be assumed by
Canada, and the local Revenue will be no longer affected by
fluctuations in the receipts from Customs Duties.
While funds provided by the Subsidies agreed upon and from other
sources of Income should be amply sufficient for lessened local
requirements when relieved of the charges to be borne by the
federal administration, I have little doubt that Immigration,
which is much desired, will be caused at least to some limited
extent by the impending changes, and the attraction afforded by
employment which may be obtained on the works to be soon
commenced for the construction of the proposed Railway. Already
it is generally admitted that the value of property has
increased, and new spirit has been largely infused into all
branches of business undertakings. On relinquishing the
administration of the Government after the Union is completed,
as will soon be the case, I shall do so in the belief as well as
the hope that the progress of this magnificent Province in
prosperity and importance will be both rapid and continuous.