No. 224
               
            
            
               
               
               18 October 1859
               
               My Lord Duke
                
            
            
            
            
               2.  In my progress through the country I have had opportunities
               of conversing familiarly with the people, of ascertaining, by
               personal intercourse, their wants and views, their real and fancied
               grievances, and of studying practically the best means of promoting
               the settlement and permanent interests of the Colony.
               
            
            
               3.  I more especially directed my enquiries into the working
               of the "Gold Fields 
"Act"
Act," which came into operation in the month
               of 
August last, and was much gratified to find that the Act had
               been viewed with satisfaction, and met the approval of the mining
               population of the Colony.
               
               4.  It has, however, some objectionable features which will
               require amendment.  The small size of the Bar and Bank claims
               prescribed by the Act, the former limited to Twenty five feet
               frontage on the banks of great rivers, and the latter to a space
               of Twenty-five by Thirty feet, was perhaps the most general and
               almost the only serious objection made to it; and it must be
               admitted 
that
that the objection applies with great force to ground
               which has already been worked over, and to places where the pay
               streak is thin and deeply covered with Soil, which the miner has to
               remove at a great expense before the gold can be obtained.
               
               5.  There was a general feeling last year among the Miners
               in favour of the minute subdivision of the mining ground into
               distinct claims; but that feeling no doubt arose from the greater
               number of Miners in the field, the limited extent of the then
               known auriferous districts, and the natural desire of each to
               possess a separate 
mining
mining claim.  The Revenue is so largely
               benefited by that subdivision, as each mining claim is required
               to pay an annual charge of One Pound Sterling into the Colonial
               Exchequer, that the principle was, without hesitation, and for
               that reason only, adopted in the "Gold Fields Act."
               
               6.  In constructing that Act, it was foreseen that no mining
               law, however comprehensive, could be made applicable to the wants
               and circumstances of an extensive country like 
British Columbia,
               and the expedient was therefore resorted to of providing for the
               establishment of Elective Mining Boards in 
every
every District, with
               power to frame Bye Laws regulating the size of claims, and
               otherwise of adapting the provisions of the General Act to the
               particular circumstances of each Mining District.
               
               7.  Until the Mining Boards are constituted, the Assistant
               Gold Commissioners are empowered to grant relief in all cases of
               real hardship, or whenever the public or the interests of
               individual Miners may be endangered through the rigid enforcement
               of the Act; and it was also decided that in certain cases where
               Miners have incurred much preliminary outlay on account of their
               claims, that the same person may be allowed 
to
to hold more than one
               mining claim, under a lease from the Crown, and at a rental
               equal to the revenue accruing to the Colony from an equal number
               of mining claims held by different persons; an arrangement which
               gave general satisfaction, and will, I have no doubt, remove all
               cause of complaint in respect to the extent of mining claims.
               
               8.  I met, in the course of my journey, with roving miners
               from every part of 
British Columbia, and ascertained from them
               many interesting facts connected with the Gold Districts.  Last
               year an impression was generally entertained by the Miners that
               the Gold 
deposits
deposits had been made by 
Fraser's River, and that the
               Gold was brought down by the Stream from a source existing
               somewhere in the main range of the 
Rocky Mountains; they have
               since discovered that not only the bed, but also the higher banks
               of the 
Fraser, which rise terrace-like one above the other as
               they recede towards the hills on either side, are composed of
               auriferous earth, and beds of water-worn gravel, a circumstance
               that has led them, not illogically, to the conclusion that the
               river occupied at some former period, a much higher level than
               its present bed; and that the water has been 
drained
drained off, by its
               gradual deepening through the natural process of attrition, or
               by Volcanic agency.
               
               9.  Alluvial diggings of extraordinary value have been
               discovered on 
Quesnel River, a tributary which flows into the
               
Fraser about Fifty miles beyond 
Alexandria.
               Some adventurous Miners have ascended this Stream as far as the
               lake of the same name from which it rises, and have been rewarded
               with rich strikes; as much, it is reported, as £40 a day having
               been made to the hand, but instances of such 
good
good fortune are uncommon.
               
               One circumstance, however, which deserves to be recorded,
               and which is established almost beyond a doubt, through the
               concurring testimony of the Miners who have seen the Country,
               is the fact that the channels of 
Fraser River to a distance of
               150 Miles beyond 
Fort George, the extreme point to which they
               have yet prospected, are found to be auriferous, yielding on
               every Bar, from Twenty, to Twenty five shillings a day to the hand.
               
               10.  I fell in with three persons who left St. Pauls,
               Minnesota, some time last 
year
year; they passed the winter in the
               
Rocky Mountains, continued their journey Westward in the Spring,
               and struck the South Branch of 
Fraser River near "
Tete Jaune's
                  Cache".  They saw many veins of Quartz on the Western Slopes of
               the Mountains, and beds of reddish earth, which in California
               are considered a sure indication of the presence of Gold; they
               prospected the banks of the South 
Fraser, as they dropped down
               the stream in a rudely formed canoe, and were nowhere disappointed
               in finding Gold in highly remunerative quantities.
               
               11.  The District between 
Yale and 
Lytton abounds in rich
               Bank and Bar diggings.  
Mr W. Gill Mr W. Gill
Mr W. Gill, a respectable merchant
               residing at 
Fort Yale, assured me that he once saw 74 ounces
               of Gold Dust taken out of one mining claim at 
Boston Bar, by
               three men in twenty four hours, and that the same claim yielded
               regularly from Forty-eight to Fifty ounces of Gold a day for
               about four weeks, when the holders were driven out by a sudden
               rise in the River, the claim being only accessible at extreme low
               water for about four weeks in the year.
               
               12.  The Miners also report the presence of Gold in the various
               little streams between 
Pavillion and 
Alexandria, 
and
and in short,
               believe that there is Gold in almost every part of the Country.
               
               13.  Two veins of Gold-bearing Quartz were discovered by a
               party of Cornish Miners near 
Fort Hope, during the time I
               remained at that place, and the discoverers, who entertain
               sanguine hopes of success, intend to work them as rapidly as
               their scanty means will permit.
               
               14.  The District between 
Hope and 
Yale is not so populous
               as last year; the present mining population consisting of about
               600 persons...  The washing is now principally done 
by
by sluicing,
               which requires fewer men and does much more work than the process
               of hand-washing.  A large amount of capital is invested in
               ditches, which carry supplies of water for sluicing to every
               Mining Bar in this District; The Miners, whose operations were
               previously confined to the bed of 
Fraser's River, are thus enabled
               to widen their field of labour by pushing shafts and other mining
               works into the Banks far above the highest water levels of the
               River.  One of those Ditches is five miles long, and runs through
               ground replete with engineering difficulties, which have been
               overcome with a degree of skill and dexterity, 
and
and with a paucity
               of means, that excites a feeling of admiration at the practical
               talent, and daring enterprise displayed in the construction.
               
               15.  When the Gold-lead or pay streak is deeply seated, the
               amount of labour which has to be executed, is something almost
               incredible; the whole of the surface-earth, often twenty-five
               feet in depth, with its covering of bush and forest trees of
               enormous size, having to be removed before the treasure can be grasped.
               
            
            
               16.  There exist extensive dry diggings from 
Yale upwards
               towards the 
Fountain, which for want of water have not been made
               available for mining; but it is believed that the neighbouring
               
mountains
mountains contain abundant sources from whence supplies of water
               may be brought in, and every inducement will be offered to persons
               desirous of embarking capital in enterprises of so much public utility,
               and which are indispensable in the development of the Gold Fields.
               
               17.  The Mining population of the District, extending from
               
Yale to the 
Fountain, is supposed to exceed 800 men, and about
               1000 men are engaged in the same pursuits between 
Alexandria,
               
Fort George and 
Quesnel's River; it is however supposed that the
               miners in the latter District will be compelled by the severity
               of the weather to abandon it in winter, the cold being then
               intense, often 20 degrees below Zero (Fahrenheit), the 
Rivers
Rivers
               frozen, and the ground invariably covered with snow in the
               months between November and March.  Surface mining is therefore
               impossible at that season, and the miner has no inducement to
               remain, and possibly has not means enough to purchase a supply
               of food to keep him until the return of the mining season.
               Those remarks on the climate apply exclusively to the upper
               Districts of 
Fraser's River, and not to the country below 
Alexandria, which enjoys a comparatively mild, dry and pleasant climate.
               
               18.  The value of the present gold exports from 
British
                  Columbia is estimated at £14,000 a month, or £168,000 per annum;
               but this estimate 
does
does not include the large amount of Gold Dust
               remaining in the hands of the Miners, nor give a just idea of the whole
               quantity produced, which no doubt far exceeds the value herein stated.
               
               19.  The entire white population of 
British Columbia does
               not probably exceed 5,000 men, there being, with the exception of
               a few families, neither wives nor children to refine and soften,
               by their presence, the dreariness and asperity of existence.
               
               20.  A very marked improvement has taken place, since my last
               visit, in the Towns of 
Yale, 
Douglas and 
Hope; the buildings,
               though 
entirely
entirely of wood, being well and neatly constructed, and
               it was even more gratifying to observe the growing respectability
               and quiet orderly deportment of the resident population.
               
               21.  In each of those places as well as at 
New Westminster
               and 
Derby, Divine Service is regularly performed by resident
               clergymen; and the almost total absence of crime, shews how
               usefully and extensively their influence is felt.
               
               22.  No schools have been as yet established in the Colony;
               but my attention will be given to the subject of education, and
               provision made for elementary schools, whenever the wants of the
               country render them necessary.
               
            23. These
             
            
            
               23.  These facts, carefully selected from the mass of material
               collected during my late excursion will convey to Your Grace
               an idea of the present social and industrial condition of the
               Colony of 
British Columbia; and I will now proceed to the notice
               of other matters, of no less importance.
               
               24.  The Colony is yet destitute of one highly important
               element, it has no farming class; the population being almost
               entirely composed of Miners and Merchants.
               The attention of Government has been very anxiously directed to
               the means of providing for that want by the encouragement of
               agricultural settlers, a class which must eventually form 
the
the
               basis of the population, cultivate and improve the face of the
               Country, and render it a fit habitation for civilized man.  The
               miner is at best a producer, and leaves no traces but those of
               desolation behind; the Merchant is allured by the hope of gain;
               but the durable prosperity and substantial wealth of States is
               no doubt derived from the cultivation of the soil.
               Without the farmers aid, 
British Columbia must for ever remain
               a desert, be drained of its wealth, and dependant on other
               Countries for daily food.
               
               25.  The Colony has not proved attractive to agricultural
               settlers.  The Surveyed Country land was all put up to public
               sale at 
New Westminster on 
the
the 5
th and 
6th of the present
                  month (October), when four lots only were sold, none of which
               realized more than the upset price of ten Shillings an acre, as
               there was no competition and few purchasers.
               
               26.  At 
Douglas and 
Hope various applications were made to me,
               for rural land, by persons who had taken a fancy to the country,
               and in some instances made valuable improvements.  They asked
               to be secured in the ownership of any land they might improve,
               at the upset price of ten shillings an acre; and that it should
               not be exposed to public sale, with a value enhanced by their
               own labour and outlay, as in that case they would either have
               to purchase their own improvements 
or
or see their prosperity pass
               into other hands.
               
               27.  There was nothing unreasonable in their proposal, and as
               meeting their views would, I felt assured, have the effect of
               promoting the settlement of the country, I had every wish to do
               so, but there was a difficulty in accomplishing the object, for
               the reason that no Country land had been surveyed in those
               Districts, nor could surveys be completed before next year, when
               the petitioners would probably all have left the Colony in disgust.
               I therefore had recourse to an expedient which fully met the case,
               without sacrifice to the Government, and to the perfect
               satisfaction of the public, by issuing a circular 
addressed
addressed to
               the Assistant Commissioners of Crown Lands at 
Hope, 
Yale, 
Douglas,
               
Lytton, and 
Cayoosh, directing them to permit all persons being
               at the time British subjects, and all persons who have recorded
               their intention of becoming British Subjects, to hold tracts of
               unsurveyed Crown Land, not being Town sites, nor sites of Indian
               Villages, and not exceeding 160 acres in extent, with a guarantee
               that the same would be fully conveyed to the holder when the
               land is surveyed, at a price not to exceed ten shillings an acre.
               
               28.  This is in fact the basis of a preemption Law founded on
               occupation and improvement, the Government agreeing on those
               
conditions
conditions to convey the land at a fixed price; it being moreover
               provided that the rights of actual settlers, of those persons only
               who are found in possession when the land is surveyed will be
               recognized and allowed.
               Persons wishing to acquire larger tracts will be required to pay
               a deposit of five shillings per acre on all land over 160 acres
               preempted for their benefit; a condition intended to serve as
               a protection to bona-fide settlers, and to prevent speculators
               from preying on the public, and defeating the proposed object
               of encouraging the settlement of the Country.
               
               29.  If that plan should fail in attracting a population I
               think it will be advisable to resort to a Canadian system of making
               free grants not exceeding 
100
100 acres of rural land to actual
               settlers, on condition of their making certain specified improvements.
               
               30.  The great object of opening roads from the sea-coast
               into the interior of the country, and from 
New Westminster to
               
Burrard's inlet and 
Pitt River, continues to claim a large share
               of my attention.  The labour involved by these works is enormous,
               but so essential are they as a means of settling and developing
               the resources of the Country, that their importance can hardly
               be overrated; and I therefore feel it incumbent on me to strain
               every nerve in forwarding the progress of undertakings so
               manifestly conducive to the prosperity of the Colony, and which
               at the same time cannot fail ere long to produce a large 
increase
increase
               in the public revenue.
               
               31.  We hope to complete the last section of a pack-road
               leading by the left bank of the 
Fraser, from 
Derby to 
Lytton,
               a distance of 170 miles, on, or before the 1
st day of 
February
               next.  From 
Lytton, a natural pack-road now exists leading to 
Red
                  River Settlement by the 
Coutannais Pass, through the 
Rocky
                  Mountains, and from thence following the valley of the Sascatchewan,
               chiefly over an open Prairie Country of great beauty, and replete
               with objects of interest to the tourist and the sportsman; a
               settler may then take his departure from 
Red River in spring with
               his cattle and stock, and reach 
British British Columbia
British Columbia by that road in
               course of the autumn following.  This is no mere theory, the
               experiment having been repeatedly made by parties of 
Red River
               people travelling to 
Colvile, from whence there is a good road to
               
Lytton; so much so indeed that one of those persons assured me
               that the whole distance from 
Lytton to 
Red River, with the
               exception of the 
Coutainnais Pass, which is thickly wooded, may
               be safely travelled with carts.
               
               If the Canadian Government would undertake to open a road
               from 
Red River to the borders of 
Lake Superior, which really
               presents no very formidable difficulties, the connection between
               
British Columbia and 
Canada
Canada would be complete, and the whole
               distance might I think, be travelled on British Soil.
               
               32.  The declared value of 
British Columbia Imports for the
               Quarter ending with the 
30th day of September last is 207,848
               dollars; and the Customs receipts for the same period, amount to
               £5202, against £4242 for the preceding quarter, shewing an
               increase on the latter of £960.  A large sum has also been
               derived from Sales of Town Land, Licenses and other sources of
               Revenue, but those returns not having been received 
must
must be
               reserved for a future communication.
               
               Trusting that these details may not prove unacceptable,
               
            
            
            
            
            
            
               Minutes by CO staff
               
               
               
               
                  
                  
                     Mr Merivale
                     This despatch supplies some general information respecting
                     the condition of the Colony, which will be found useful in
                     endeavouring to form a just idea of the actual position and progress
                     of the Country.
                     
 
                  
                  
                     1.  The white population is estimated at 5000 (It was 4,000 in
                     June).
                     
                  
                  
                     2.  The exports of Gold are about £14,000 a month.
                     
                  
                  
                     3.  There are no agricultural settlers and the Country Lands
                     are apparently unsaleable at 10/- 

an acre. (Par. 25)
                     
                     4.  The Customs duties are producing about £20,000 a year.
                     
                  
                  
                     5.  Par. 31 points out the natural facilities which exist
                     for the construction of a road as far as the 
Red River.
                     
                     The despatch should be referred to the Emigration Comm
rs
                     for a report on the measures to which 
Governor Douglas has had recourse
                     in granting rights of occupation & preemption of unsurveyed Lands,
                     & the suggestion of making free grants.
                     
 
               
               
                  
                  
                     Mr Merivale
                     Paragraph 31 seems very important.  Proceed as proposed?
                     Send an extract of that Par. to 
Govr Genl of Canada?
                     
 
                  
                  
                   
               
               
                  
                  
                     The 
Duke of Newcastle has already before him the question of
                     admitting the tenure of land before survey & that of preemptive
                     rights, which it seems to me the Governor has now practically solved,
                     for it will not be easy, if desirable, to recede from what he has
                     done.  He is disposed to the Canadian system of free grant along
                     lines of road, & I am much inclined to think him right.  The
                     question here being, not to attract a population from a distance,
                     but to tie down an existing nomadic population to the soil.  I
                     think copy of the whole despatch had better go to 
Sir E. Head for
                     information.
                     
 
               
               
                  
                  
                     I consider this a very satisfactory despatch as regards the
                     
future of this 

Colony.  I have already expressed my preference
                     of 
Captn Clarke's 
Victoria plan to the
                     
preemptive scheme, but the latter is a great improvement in such
                     a Colony as 
B. Columbia upon the
                     
slow process of Survey & Sale and I have no doubt it
                     will give an impetus to Agricultural speculation—without which
                     the Colony will never thrive.
                     
                     Paragraphs 30 & 31 are highly interesting, but I am sorry
                     to say 
Sir E. Head writes to me privately much less hopefully on
                     this subject.  Send him however copy of this despatch.
                     
                     It will only be necessary to refer, in answering 
Govr D, to
                     the despatch which covered 
Captn Clarke's draft of an Order in
                     Council.
                     
 
                
            
            
               Other documents included in the file
               
               
               
                
                  
                  
                     Draft, 
Merivale to Emigration Commissioners, 
20 January 1860,
                     forwarding copy of the despatch for suggestions and observations.