Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Douglas, Sir James to Lytton, Sir Edward George Earle Bulwer 8 May 1859, CO 60:4, no. 6506, 349.
Abstract
Despatch to London.
Minutes (4), Other documents (1), Marginalia (1).
Douglas reports on British Columbia, with emphasis on the following: the wealth of gold but the “general outcry for better
roads into the interior” in order to access it; the need for food production and surveys
of land for the purpose; sales of “town land” in “Queensborough, Forts Yale, Hope and Port Douglas;” the proposal for “remodelling the whole system of mining regulations,” which in
part would “treat the gold fields simply as crown land” for settlers to lease as tenants;
finally, Douglas reports that Captain Richards is surveying “the lower part of Fraser's River” in Plumper. Douglas’s postscript lauds the “largest nugget of Gold yet found in British Columbia,” which he forwards for inspection.
In the minutes, Blackwood speculates that Douglas blames himself for “the last mode of raising revenue,” and notes that the Colonial
Office provided “every information,” based on “the Australian gold Colonies.” Blackwood suggests that “taxing the gold” would offer “a vast addition to the Governor’s resources,”
rather than renting “Crown Lands,” and he awaits news from the Treasury on the possibility
of an assay office for British Columbia.
No. 150
1. The latest advices from British Columbia, report
satisfactorily as to the peace and good order which reigns
in the colony; the confidence of the people in its auriferous
wealth, notwithstanding occasional fits of panic is unbounded;
but there is a general outcry for better roads into the interior,
the difficulty of access still forming the great impediment to
the development of its mineral resources
resources.
resources.
2. The cost of transport enhances the price of food, and
of all other necessaries of life, from Lytton upwards; to an
extent which absorbs nearly the whole of the miners earnings,
large as they occasionally are. The production of food by the
cultivation of the soil in the mining districts and the
improvement of the Harrison river route into a waggon road,
and otherwise opening the great commercial thoroughfares of
the country, are measures of relief to which I have urgently
directed the attention of the commissioner of Lands and Works.
3. The extensive plains on the "Pitt," "Sumas," and
"Chilwhayook" Rivers, are to be hurriedly surveyed, and thrown
into 80 acre sections for immediate occupation for the purpose
of raising food and
and retaining a permanent population in the country.
and retaining a permanent population in the country.
4. Sales of town land are soon to take place at Queensborough,
Forts Yale, Hope and Port Douglas, which I trust will bring in a
considerable amount of Revenue.
5. The Customs House Receipts for the last fortnight, amount
to something over £773, Sterling, and will rapidly increase with
the growth and expansion of the country.
6. The Mining Districts yield hardly Revenue enough to pay
their own police expenses, in consequence of the difficulty of
collecting the License Fee on Miners, who will pay no tax except
through the force of compulsion.
7. We must, I think, adopt some
some other system of taxation
pressing less directly upon the individual miner. The Miners
right, and the export duty on gold; features of the Australian
system, recommend themselves from the ease and simplicity of their
collection, and having already the machinery and staff required
for that purpose. The state of the country is however hardly
ripe as yet, for the imposition of an export duty on gold, but
the day is probably not far distant when the gold will be
exchanged in the Country and exported in large quantities by
Banking and Commercial Houses, when the difficulty of collecting
the duty will cease.
some other system of taxation
pressing less directly upon the individual miner. The Miners
right, and the export duty on gold; features of the Australian
system, recommend themselves from the ease and simplicity of their
collection, and having already the machinery and staff required
for that purpose. The state of the country is however hardly
ripe as yet, for the imposition of an export duty on gold, but
the day is probably not far distant when the gold will be
exchanged in the Country and exported in large quantities by
Banking and Commercial Houses, when the difficulty of collecting
the duty will cease.
8. Many reasons induce me to try another plan which under firm
management would I
I think work well. By remodelling the whole system
of mining regulations in British Columbia and instead of levying
mining fees which would, in that case, be abolished, I would propose
to treat the gold fields simply as crown land, and letting it out
in large or small allotments, on leases, at a fixed rent, to any
persons disposed to work the soil. The revenue would thus be
derived from a land rent, and not be levied under the name of an
obnoxious tax, and tenants would be ejected at will on their
failure to pay the stipulated rent.
I think work well. By remodelling the whole system
of mining regulations in British Columbia and instead of levying
mining fees which would, in that case, be abolished, I would propose
to treat the gold fields simply as crown land, and letting it out
in large or small allotments, on leases, at a fixed rent, to any
persons disposed to work the soil. The revenue would thus be
derived from a land rent, and not be levied under the name of an
obnoxious tax, and tenants would be ejected at will on their
failure to pay the stipulated rent.
I will have more I hope to communicate on those subjects by
the next mail.
9. Captain Richards is now engaged
engaged in Her Majesty's Surveying
Ship "Plumper", in making a survey of the lower part of Fraser's
River, and Lieut Mayne has been detached to make a reconnaisance
of the river to the Fountain, with instructions to return by
Harrison River for the same purpose, I anticipate much valuable
information from the report of that officer, which I will forward
to you when received.
engaged in Her Majesty's Surveying
Ship "Plumper", in making a survey of the lower part of Fraser's
River, and Lieut Mayne has been detached to make a reconnaisance
of the river to the Fountain, with instructions to return by
Harrison River for the same purpose, I anticipate much valuable
information from the report of that officer, which I will forward
to you when received.
The numbers of the Victoria Gazette mentioned in the margin
are herewith forwarded.
7 Numbers, April 26 to 10th May.
P.S.
The largest nugget of Gold yet found in British Columbia arrived
arrived at
Victoria a few days since. It weighs 7 oz., 13 pwt., 7 gr, and was
found near the Head waters of Thompson's River, and as it is a fine
specimen, I forward it herewith for the inspection of Her Majesty's
Government.
James Douglas
arrived at
Victoria a few days since. It weighs 7 oz., 13 pwt., 7 gr, and was
found near the Head waters of Thompson's River, and as it is a fine
specimen, I forward it herewith for the inspection of Her Majesty's
Government.
James Douglas
Minutes by CO staff
[Minutes have all been crossed out:]
Mr Merivale
Though he does not confess it, I shd judge from this Despatch that the Govr finds himself at fault for the last mode of raising revenue. You remember that this Office has supplied him with every information as to the steps taken in the Australian gold Colonies for obtaining a revenue, and that it has been left entirely to his discretion to decide as to the course whh he prefers adopting in B. Columbia. I do not know that we can improve on that plan. We shall shortly hear from the T-y their further opinion as to a Mint & an Assay Office. If the T-y is favorable thereto we may find a way of taxing the gold, which shall be profitable to the Colony, & not objected to by the inhabitants. This wd be a vast addition to the Governor's resources. Under these circes, I think we can afford to wait the Governor's further views on his project (I fear a questionable one) of getting rent out of the Crown Lands.
Though he does not confess it, I shd judge from this Despatch that the Govr finds himself at fault for the last mode of raising revenue. You remember that this Office has supplied him with every information as to the steps taken in the Australian gold Colonies for obtaining a revenue, and that it has been left entirely to his discretion to decide as to the course whh he prefers adopting in B. Columbia. I do not know that we can improve on that plan. We shall shortly hear from the T-y their further opinion as to a Mint & an Assay Office. If the T-y is favorable thereto we may find a way of taxing the gold, which shall be profitable to the Colony, & not objected to by the inhabitants. This wd be a vast addition to the Governor's resources. Under these circes, I think we can afford to wait the Governor's further views on his project (I fear a questionable one) of getting rent out of the Crown Lands.
If the preceding ideas are concurred in this despatch
might be "put by" for a short time.
ABd
27 June
It might perhaps be sent to the Treasury as furnishing
additional argument in favour of the "assay" experiment.
Yes.
Other documents included in the file
Draft, Merivale to G.A. Hamilton, Treasury, 9 July 1859, forwarding
copy of the despatch for consideration.
People in this document
Fortescue, 1st Baron Carlingford Chichester
Lytton, Sir Edward George Earle Bulwer
Mayne, Lieutenant Richard Charles