Separate

There is nothing of much importance beyond the anticipated
and progressive improvement of the Colony with which I need trouble
Your Grace at the present time. Winter has happily passed away
without any untoward event to mark its course; and the return of
the genial season has awakened a lively interest in the Mining and
general commercial pursuits of the Country.

2. The Revenue derived from Customs and Road Tolls has, I am glad
to observe, fully kept pace with the growing interests of the Colony,
the receipts having for the 4 months ending with the 30th of April,
yielded the sum of Twenty two thousand six hundred and eighty pounds
(£22,680) against Twelve thousand three hundred and eighty six pounds
(£12,386), for the same period of 1862,
being an increase on these two branches of the public revenue of
nearly 83 per cent, in favour of the present year.

3. For the last 10 weeks the emigration of Miners and other
persons from Vancouver Island and the neighbouring Territories
of the United States has been large and incessant. The reports of the Gold Commissioners represent that about 2000 persons have passed through Yale on
their way to the Upper Country, and that an equal number have
entered the Colony by the way of "Douglas" and "Shimilcomeen."

4. The mildness of the past winter was highly favorable to
the Mining interests of the Colony, the cold having been on no
occasion so severe as to cause a suspension of work on the river
claims for more than a few days at a time, and such interruptions
from weather were not of frequent occurrence. The small body of
hardy adventurers who, notwithstanding the exaggerated hardships
of the Carribou winter, remained at that season on their claims,
were rewarded with a degree of success which can hardly fail to
operate favourably for the substantial interests of the Colony;
the experiment having clearly proved, what before was to them,
a matter of doubt; that mining may be pursued with advantage and be made
highly remunerative even at the most inclement period of the year.
About one Million of Dollars are stated on good authority to have
been realized by the Miners on Williams Creek during the winter
months. The "Barker" claim alone is said to have produced 137,000
Dollars since the month of September last, and the "Hard Curry" Claim has been even more prolific, that Company having, according to current report which I see no reason to question, accumulated no less than 900 lbs
weight of Gold Dust within the six last months.

5. These astounding results, the reality of which is supported by
occasional large arrivals of Gold from the Mines, have confirmed the general impression that Carribou and other Districts of British Columbia will surpass in the extent and richness of their auriferous deposits,
every other Gold Country in the world, an impression which has
caused an intense excitement throughout the Colony, and led to the
almost general desertion of the Towns and Country on the lower Fraser.
Regretting as I do the temporary depopulation, so caused, I am
nevertheless far from thinking the event will prove ultimately
detrimental, as the majority of the absentees will certainly
return to their homes, and probably with large means which will
be applied to the cultivation and improvement of their farms, and
to other enterprises of no less importance to the Colony.

6. On the other hand continual accessions are being made to the
general population of the upper Country, the newly formed roads * having given a prodigious impulse to settlement, by opening up valuable farming Districts which before were virtually closed
to men of moderate means by difficulties of access, and the
enormous cost of transport, and impenetrable at any cost for all kinds of Machinery except such as could be taken asunder, and
packed through the mountains on Mules.

Mr Commissioner O'Reilly writing from Williams Lake on the 29th April remarks that the Lillooet
road was then completed to the North end of "Lac la Hache," a distance
of 128 Miles, and that the works had sustained no injuries from the
effects of weather, that were not repairable at a very trifling
cost. He also observed on his way up from Lillooet large tracts
of land that were fenced in, and at all the way side Houses great
preparations for embarking largely in farming operations; and
moreover in the District between Bridge Creek and Williams Lake he
states that 500 acres of land were actually under crops of various kinds.

7. Food was still high in the mines, flour being generally
sold at 1 1/4 dollars a lb and other things at a proportionably
high rate, prices indicative of real or apprehended scarcity. A
number of Beef Cattle and Sheep had however come in, and many
more were expected by the way of Oregon, a supply which it was
supposed would greatly relieve the pressure on the food markets,
and furnish a large stock of good and wholesome food.

8. Mr O'Reilly fully confirms the previous reports of
successful winter mining at Carribou. To use his own words,
he goes on to say

The reports that have reached me from the
Mines exceed anything that has been yet heard of in the Carribou
Country. The 'Hard Curry' claim on Williams Creek, in which there
are three partners is said to have taken out, in eight hours, the almost
fabulous quantity of 102 1/2 lbs weight of Gold, this I have
heard from Mr Curry one of the lucky owners, and from others
who were present when the Gold was weighed and I have no doubt of
its correctness. Many of the other claims are likewise exceeding
the most sanguine expectations of their holders. I shall however on my arrival at Williams Creek transmit in detail more authentic
information, 
and on the subject of labour he adds, "Labour is in great demand, at rates varying from 10 to 12 dollars per day."

9. The subject which now most closely engages my attention is
the formation of an efficient Escort, for the safe conveyance of
Treasure from the Mines. This was not contemplated when preparing the estimates for the year 1863, because I conceived the country was not ripe for the measure; as the Miners treasure their Gold and, considering it perfectly safe in their own keeping will not, as a general thing
part with it, except for value received; therefore I felt assured
that until business Houses for the purchase and remittance of Gold
were established in the Mines there really would be very little
employment for an Escort.

10. The time has however now arrived when the measure can be
no longer with propriety, delayed. The Agent of the Chartered Bank
of British Columbia has signified to me his intention of immediately establishing a
Branch at Carribou especially for the purchase of Gold, and
he has made a demand upon the Government backed by the signatures
of the principal Mercantile Houses of this place for protection in the
conveyance of Treasure to and from the Mines.

11. The protection of life and property is admittedly one of
the highest duties of Government, and a well appointed Escort
would, under ordinary circumstances, afford that protection to
property on its transit from the Mines; and moreover would, in
the peculiar circumstances of British Columbia be attended with
many other advantages. To illustrate these I would briefly
explain, that the bulk of gold produced in Carribou, as business
is now conducted, remains for months at the Mines, in the hands of
the producers, and is brought down to the coast by the Miners
themselves at the close of the mining season—a system
involving a heavy loss of interest, and productive of the
most serious inconvenience to the Mercantile Community, who
are not generally wealthy and are invariably pressed for
capital to meet their business engagements.

12. The Escort would in the first place remedy that evil by
facilitating the export of Gold from Mines and bringing it
into circulation with regularity and despatch. It would also
in a great measure put an end to the now indispensable system
of long credits and relieve trade from the exhorbitant interest
charge of 1 1/2 to 5 per cent a month, which eats up the
Merchants profits, and checks his enterprise. This would all
tend directly to the increase of Commerce; larger stocks of
goods would be thrown into the Colony and the public revenue
would be proportionately enhanced.

13. It may also fairly be assumed that one of the immediate
results of the formation of an Escort would be the establishment
of branch Banks and good Mercantile firms in the interior of the
Colony—which would tend to produce a permanent trade and give,
what does not at present exist, a reliable commercial community
to the Colony.

14. The advantages of the Escort morally, in giving the utmost
possible security against robbery and crime, are no less apparent
than I have shewn them to be commercially.

15. The really serious objection is the heavy expense of the
Escort, added to the possible contingency that the miners might
after all the outlay incurred, prefer keeping the Gold in their
own possession to sending it by the Escort; now the establishment
of the "Bank of British Columbia" in the Mines, is a security to a great extent
against the latter contingency, and there being now a large quantity
of Gold produced, the expense should be fully met by a sufficient
transit charge on the Gold exported.

16. The sum of ten thousand pounds (£10000) would I believe cover
the purchase of the equipment and the whole annual cost of an efficient
Escort. The annual produce of Gold in the Carribou District is
estimated at One Million sterling. Assuming that one half only
was carried by the Escort it would yield at 3 per cent, the proposed
rate of charge; a return of £15,000 Sterling, being something
considerably over the estimated cost of the Escort.

17. The Merchants of Victoria and a large body of working Miners
have strongly urged this measure on the attention of the Government,
and are prepared to support it with all their influence, and the
Bank of British Columbia having as before stated decided on
establishing a Branch in Carribou for the purchase and export
of Gold, there is a reasonable prospect of rendering the Escort
at once self supporting. In these circumstances the Government
would be wanting in its duty to the Public, and be justly made the
subject of the severest animadversion were it to neglect the
public interests so far as to hesitate in granting the fullest
protection and security to the trade of the Country.

18. Prompted by these considerations I have decided on forming
a Gold Escort without delay, and I trust that the measure will meet
with Your Grace's fullest approval.