No. 111
               
            
            
            
            
               My report N
o 95, of the 
7th Ultimo on the state of
               
British Columbia, contains advices from 
Fort Yale to the end
               of 
January; the intelligence since that date is satisfactory
               in all respects, except the weather which has been severely
               cold 
and
and trying to the miner, whose operations have been in
               consequence nearly altogether suspended for the last two months.
               
               Mr Commissioner Brew has, owing to the same cause,
               also been unable to collect the Mining Licence fees, for that
               time, a circumstance, which for obvious reasons, I much regret.
               
 
            
            
               2.  It appears from late reports that the Miners on
               "
Hill's" and "
Emery's" Bars, have abandoned the Beach workings,
               and transferred their labors to the Banks or elevated table
               land reaching from the River to the mountains.  Those banks
               
are
are of great extent varying from a few hundred yards to two
               miles in breadth, and should they prove, as expected, more
               remunerative than the River beds, they will offer a wide field
               for mining enterprise.
               
               3.  Water for washing the auriferous soil is at present
               the chief want; it must be brought from the mountains, by
               means of artificial canals, and in consequence of the
               encouragement given on the part of Government, many persons
               are now engaged at their own private expense, in the construction
               
of
of such works.
               
               4.  Those enterprises will materially aid in the development
               of the Gold fields and other industrial resources of 
British
                  Columbia.  The miners, to their praise be it said, are full
               of ardour, grasping eagerly at every opening, for the profitable
               employment of their labour or capital, and require no urging
               beyond the protection and regulating care of Government.
               
               5.  Those elevated table lands were until lately covered
               with deep snow, and therefore inac[c]essible to mining 
operations
operations,
               but will soon I trust become the cheerful scene of successful
               and wide spread industry.
               
               6.  I may here state as a valuable fact, corroborating
               what has been before stated in my despatches, concerning the
               general productiveness of the gold fields in 
British Columbia,
               that a company of 6 men, holding a gold claim, on 
Hill's Bar,
               worked by a sluice took out the enormous return of 110 ounces
               of gold, in one week, and this I am informed, is not an isolated
               case of successful mining, many other claims having been proved
               equally productive, but I 
particularize
particularize this instance, in
               consequence of there being no doubt as to the fact.
               
               7.  I will add to the preceding another corroborative fact
               in support of the same conclusion, supplied by the following
               statement received yesterday from 
Mr Latham, their Agent;
               of the quantity of Gold dust, shipped to 
San Francisco, and
               received on special deposit by the House of Wells Fargo &
               Co, of this place  from 
June last, to the present time.
               
               
               Shipped to 
San Francisco  $525,000 value of, in Gold dust.
               
               Received on Special Deposit 97,000   "   "    "   "    "
               
               dollars 622,000
               
               which valued at the current 
price
price of gold 15 1/2 dollars an
               ounce, gives 40,029 ounces nearly, as the quantity of gold
               dust that has passed through their hands for the period
               mentioned.  This statement compared with the quantities
               given in my Despatch N
o 40 of the 
30th November last,
               as the export of Mess
rs Wells Fargo & Co, up to that date,
               shows an export of gold by that House, since that statement was
               prepared, to the extent of 23,436 ounces of gold.
               
               8.  The most favourable reports continue to arrive from
               
Bridge River, and from the bank diggings of 
Fraser's River
               between
between 
Lytton and the 
Fountain.  Many private companies are
               engaged in bringing in water from the mountains for sluicing
               the elevated table land in that District, and though the mining
               season has not properly speaking yet commenced, the miners
               appear to have unbounded confidence in the resources of the
               Country and are gradually moving towards the upper District.
               
               The weather being now fine and the country accessible,
               the tide of immigration will soon be setting towards 
Fraser's River.
               
               10.  He states that a company of French miners are sluice
               washing, when the weather permits, on the 
Harrison River, ten miles
               beyond 
Port Douglas and are making from 28/- to 40/- a day, to the man.
               
               One mile further up and on the opposite side of the River,
               three miners, hand washing with cradles are making from 10/ to
               20/s 
a
a day.
               
               11.  The same 
Mr Lindhart also states, as a generally
               received opinion, of the Miners about 
Port Douglas, that there
               is an extensive Gold field on the 35 mile table land, which
               separates the 
Lillooet from 
Anderson's Lake, and in proof
               thereof he has forwarded several specimens of the Gold
               procured at those place respectively.
               
               12. 
Mr Commissioner Brew further reports that the country
               is in a state of perfect tranquility; that Gold is being
               brought down 
Fraser's River in "large quantities" and that
               the gold brought down is "coarse 
grain
grain and scale gold," which
               may be collected at any temperature.
               
               13.  It also appears from 
Mr Brew's communication that
               it is difficult in very cold weather to collect the fine or
               dust gold by amalgamation, as the quicksilver will not take
               up the gold when below a certain temperature.
               
               14.  
Mr Brew further confirms the general belief in the
               rich auriferous deposits of 
British Columbia, and of the River
               Bars, above "
Lytton", which he remarks, are said to be "rich
               beyond anything that was ever known."
               
               15. It
15. It does not however appear from 
Mr Brew's report
               that he has made any further collection of revenue, a subject
               on which I therefore cannot give you the information I would desire.
               
 
            
            
               16.  I may nevertheless remark that we have hitherto paid
               all the expenses of Government out of Colonial funds, and we
               shall endeavour by the careful and frugal application of the
               public revenue, to indespensable objects only, to tax the
               Imperial Treasury to as small an extent as in the circumstances
               
of
of the Colony may be possible.
               
               Minutes by CO staff
               
                
                  
                  
                  
                  
                  
                  
                     3.  Print immediately for Parliament.  (done)
                     
                  
                  
                     5.  Acke with satisfaction.
                     
                  
                  
                     I almost think, though the suggestion should have come from the
                     Governor (
Capn Gossett did raise the question of a Mint
                     to 
Sir Edward who viewed it favorably) that the time has come
                     when an assay Office at once, & a mint shortly, 
shd be
                     established; in order that the miner may ascertain, & obtain
                     the full value for his gold, & that he may convert it into
                     coin & 
spend it in the Colony, instead of, as many
                     thousands have done, walking off to the S. Francisco Mint
                     for dollars to the great benefit of the 
San Franciscan trade,
                     & detriment to B. Columbians ditto.  Miners will mistrust
                     the private assayers, & private carriers of their dust;
                     preferring an expensive process, sale of tools, and passage
                     to 
S. Francisco, rather than send there the produce of their
                     labor.  I scarcely like to venture such a suggestion; but do
                     you not think it might be worth while to ask the T-y as to the
                     expediency of sending the Colony an assay outfit.  I am
                     

persuaded 
Capn Gossett, under whom the Office 
wd be worked,
                     would make the Department more than defray it's own expenses.
                     I doubt the outfit costing more than £1000, wh
h must be put
                     down in the bill ag
t the Colony—(whose back I hope we
                     shant break at starting).  We should, at the same time, ask
                     the Treasury whether the moment has yet arrived for the
                     establishment of a Mint—for an Assay Office without a Mint—would
                     be an inconsequent piece of business; and whether they
                     would approve of this Office directing the attention of the
                     Governor to the subject and instructing him to report thereon.
                     When the distance of this Gold bearing Colony from the United
                     Kingdom is considered, wh
h renders it difficult and expensive
                     to supply it with English Coin, and that the Colony must
                     therefore resort to the United States for the requisite
                     accommodation in the circulating 

medium it may well deserve
                     attention whether some steps should not be taken by the
                     Imperial 
Govt which shall have the result of preserving
                     a business to the Colony which will otherwise pass into the
                     hands of Foreigners.
                     
                  
                  
                     I agree in all 
Mr Blackwood's proposals.  Perhaps he will
                     be good enough to prepare a draft to the Treasury raising the
                     question of a Mint, and enquiring as to the probable minimum
                     expense of the first establishment.  I am afraid that this
                     is more considerable than we c
d desire.
                     
 
               
               
                  
                  
                     It was the great expense of a Mint which alone deterred me from
                     forming it in the first instance.
                     
                  
                  
                     Print this for Parlt.  Print for Parlt the annexed
                     [cut off file] to Treasury [cut off file].
                     
                  
                  
                  
                   
                
            
            
               Other documents included in the file
               
               
                   
                     
                     
                        Draft, 
Elliot to 
G.A. Hamilton, Treasury, 
14 May 1859, enclosing
                        copy of the despatch for consideration.
                        
                     Minutes by CO staff
                     
                     
                        
                        
                           Not yet printed.  I ventured to defer the execution of 
Sir Edward's
                           instruction, as the correspondence was incomplete, & I had misgivings
                           as to the views the T-y 
wd take on the subject.