Colonial Despatches

1. Since my last report on the state of the country of the 9th of Instant, 1 there have been no decided changes or events of much importance connected with British Columbia.

2. The exodus from Fraser's River continues at aboutthe the rate of 100 persons a week. The reasons assigned by those persons for leaving the country are various, some having families to visit and business to settle in California, others dreading the supposed severity of the climate, others alledging the scarcity, and high price of provisions, none of them assigning as a reason for their departure the want of gold.

3. There has lately been a great deal of rain at Fort Yale, and the mountain tops are covered with snow, there has been however no severe cold weather, neither is there any snow in the valley of Fraser'sRiver River.

4. A considerable traffic with the Upper Fraser's River is now being started by the Harrison's River road, which will ultimately become the great commercial thoroughfare of the country. An unexpected obstacle to the passage of Steamers into Harrison's Lake has been discovered since the river fell to its lowest stage, in a shallow rapid about half a mile in length which occurs near the entrance of Harrison's Lake. When that obstacle is removed and no exertion should be spared to accomplish that desirable object; there will be a free passage for River Steamers throughHarrison's Harrison's Lake and to Port Douglas at every stage of the River.

5. A Mr Hovey called upon me this afternoon to report having struck rich bank diggings in the left bank of Fraser's River, 125 feet from the River, and about 8 miles below the confluence of Bridge River. 2 He also states that a party of 10 men who are employed, in working an adjoining bank have succeeded in bringing in a supply of water sufficient to run four sluices, which lately yielded 148 ounces of gold in three weeks. The gold found is not of the flaky sort, but of that description, which is termed in California, "round shot gold"where where it is considered indicative of the richest placers. Mr Hovey is of opinion that all the "River benches" or "Table lands" between the Forks of Thompson's River and the Fountain will be found equally productive in gold.

Mr Hovey also reports having seen a specimen of pure copper that was found near the same spot.

6. It has been for some time reported that several French Miners have discovered gold in remunerative quantities on Harrison's River, and that they are now at work, and making fair wages, a report which wants confirmation though it is not at all improbable as the soil inthat that District is known to be auriferous and it will I trust become a profitable mining District.

7. I have not heard from Mr Commissioner Travaillot, since the beginning of the present month. He reports the general want of provisions among the Miners of the Fort Dallas District, and suggests that supplies should be forwarded to that part of the country by the Hudson's Bay Company, or by the Government.

8. The Hudson's Bay Company may act in that matter as they think proper, but it would, for obvious reasons, be highly injudicious to embark theresources resources of Government in commercial undertakings, even to accomplish a public object.

9. In opening an accessible communication by Harrison's River, the Government has discharged its proper duties, leaving commercial objects entirely to private enterprise.

10. I have the honor of transmitting herewith the following numbers of the Victoria Gazette, which may prove interesting.

11. I have been at some trouble to ascertain the amount of gold produced in British Columbia this season, and nowsubmit submit the following estimates and returns which without professing to be absolutely correct, will serve to give an approximate idea of the quantities of gold dust, exported and remaining on hand in the country.

The quantities marked thus x are actual returns and their correctness may be relied on; the estimates are made up from the best information I could receive on the subject.
Wells Fargo & Co 3 - exported 16,593 ounces x
Freeman & Co 4 - no return but estimate 9,462 "
Ballou & Co 5 - in deposit 6,250 " x
Hudson's Bay Co - exported 4,000 " x
36,305
Estimates
In the hands of private parties - exported 30,000 "
In the hands of Miners, in
British Columbia 40,000 "
70,000
Supposed production of Gold since
the month of June 1858 ounces 106,305

12. The actual produce of gold probably exceeds the quantity I have stated, an impression derived from the official returns of goods imported into Vancouver's Island for the quarter ending with the 30th day of September last, amounting to the large sum of £23l,376 Sterling, nearly the whole of which appears to have been absorbed in supplying the demand of British Columbia, and paid for in gold dust.

13. A cutting from the San Francisco Herald of the 20th November last, which I have just received and now forward, corroborates the statements in this letter, and gives a return of $511,000 dollars as theamount amount of Gold received from Fraser's River by the United States branch Mint and several mercantile firms at San Francisco, and in making that return the writer has evidently no desire to exaggerate the resources of British Columbia.

14. The whole return is satisfactory in as much as it shews that a very considerable revenue may be raised from the duties now levied on Imports as soon as that law can be strictly enforced.

15. The mail Steamer has I regret to say not yet arrived here, and it is almost certain that our letters nowready ready for transmission, will not arrive at San Francisco in time for the mail Steamer, which leaves that Port on the 5th proximo for Panama. Our last mail was not more fortunate, and would I fear be detained at San Francisco for the Steamer of the 5th December.

16. I have just received letters from Mr Justice Smith of Fort Hope, who reports the arrival of the first government mail 6 from this place; that the Town is rapidly improving, and that substantial buildings are being erected and that peace and quiet reigns throughout the District.