Separate
               
            
            
               16 July 1862
               
            
            
               I have the honour to enclose for the information of Her
               Majesty's Government, copies of several important communications,
               received this day, from the Assistant Gold
commissioners
 Commissioners for the
               
Carribou District, reporting on the present condition of that Gold-field.
               
               2.  The almost impassable state of the roads beyond 
Williams Lake, and the high price of food and of all other necessaries of life, are, as Your Grace
               will learn from these reports, of great
               detriment to the Country; and I add with the deepest regret, that
               it is wholly out of my power for want of money to undertake
to
 to a
               greater extent than is now being effected, the removal of obstacles
               so fatal to the growth and prosperity of the Colony.
               
               3.  While these Reports prove the vast extent and richness of
               the Mines, that thousands of people may be employed in rendering
               them productive, that they cannot be fully developed without a
               larger population than the Colony yet possesses, that labour and
               capital are
essential
 essential for that purpose, and that every individual
               miner is really of value to the Country, we receive the painful
               announcement that upwards of four hundred able-bodied men have
               been driven from the mines by mere inability to procure subsistence
               during the time required for testing, and getting their claims
               into working order.
               
               4.  I am using every effort, and taxing the uttermost farthing
               of the local revenue
to
 to remove these obstacles to access, which
               so greatly enhance the price of all the necessaries of life in
               
British Columbia.  I have endeavoured and find it impossible to
               raise money in this Colony at any rate of interest less than 18
               per cent per annum, and the Attorney General is now amending the
               "Loan Proclamation" as suggested in Your Grace's Despatch of the
               
13th May N
o 123, and I trust it will be ready to
forward
 forward by
               the next mail. In the meantime, until the aid expected from that
               measure arrives, we shall struggle with the difficulties that
               beset the Colony in the best manner we can.
               
               5. 
Mr Elwyn's Report is chiefly remarkable for its revelations
               respecting the extraordinary richness of the mines, especially
               "Cunningham's Claim", which surpasses every precedent of California
               Gold Mining. In another letter, not transmitted with this
Despatch
 Despatch,
               he reports the discovery of a Quartz Reef on 
Lowhee Creek, a
               circumstance which I mention from its being the first auriferous
               quartz in situ discovered in this Colony.
               
               6.  
Mr O'Reilly in his Report estimates the number of men in
               the 
Carribou Gold field at between four and five thousand, and that
               four hundred have been lately compelled to leave those Mines from
               sheer destitution.  He also reports the discovery
of
 of a new Gold
               field on 
North River to the eastward of 
Quesnelle Lake, which
               promises to be a most valuable acquisition to the Colony.
               
               7.  The same Report is corroborated by 
Mr Commissioner Ball,
               in the accompanying letter from 
Lytton.  He also states that the construction of the public Roads is progressing satisfactorily,
               and mentions other circumstances, which may be interesting to Her
Majesty's
               Majesty's Government.
               
               I have the honor to be
               My Lord Duke,
               Your Grace's most obedient
               and humble Servant
               
James Douglas
               
               Minutes by CO staff
               
                
                  
                  Mr Elliot
                     I am at a loss to know how the Secretary of State or any
                     authority in this Country can help the Colonists in this matter.
                     HM 
Govt have rendered all the assistance in its power by
                     sending out a body of highly skilful R. Engineers, who were to
                     make themselves serviceable in the construction of roads, and
                     by sanctioning a loan of money for the use of this very auriferous
                     Country. The rest, as it seems to me, must be done by the
                     Community. The 
Govr is not a man apt to be appalled
                     at the difficulties, and generally finds his way out of them.
                     I am therefore rather surprised that it has not occurred to
                     him to enact a Proclamation ordering the performance of Statute
                     labor on the roads, alleging that the law of self preservation
                     requires the measure. The Magistrates 
wd not have the power
                     to enforce the Law I admit if it was decidedly resisted, but
                     they might by persuasion induce the miners to devote some of
                     their time to the construction of trails, with
t which it
                     seems that they are in a fair way of perishing.
                     
 
                  
                  
                  
                  
                  
                     I should simply acke receipt, & should send to the Treasury for their information.
                     
                  
                  
                   
               
               
                  
                  
                     This evidently means "give us help from home"—i.e. tax the starving people of Lancashire

 for the benefit of men of their own class who are making 
thousands of pounds in a few months!
                     Ack
e.
                     
 
                
            
            
               Documents enclosed with the main document (not transcribed)
               
               
               
                
                  
                  
                     P. O'Reilly to Colonial Secretary, 
28 June 1862, reporting as noted above.
                     
 
                   
                  
                  
                     H.M. Ball to Colonial Secretary, 
6 July 1862, reporting from 
Lytton on the status of road construction and the formation of pack trains to carry freight
                     to the mines in 
the Cariboo region.
                     
                     
 
                   
            
            
               Other documents included in the file
               
                
                  
                  
                     Draft, 
Elliot to 
G.A. Hamilton, Treasury, 
8 September 1862, forwarding
                     copy of the despatch for information.
                     
 
                  
                  
                     Draft reply, 
Newcastle to 
Douglas, No. 138, 
16 September 1862, acknowledging receipt of 
Douglas's despatch and reports.