No. 79
               
            
            
            
            
               I have had the honor to receive your Despatch No. 17 of
               the 
11th April forwarding an extract from a despatch,
               addressed by 
Rear Admiral Denman to the Board of Admiralty,
               suggesting
that
 that a Colonial Vessel should be employed for the
               protection of the Coasts of this Colony and 
Vancouver Island.
               You direct me to report upon the practicability of adopting
               
Admiral Denman's suggestion and providing for the requisite
               expenditure out of Colonial Revenue.
               
               2.  Towards the close of last year I had some conversation
               on the subject referred to in your Despatch, with 
Admiral
                  Denman.
I
  I regret that I did not follow his example and at
               once report its substance to the Head of my Department.  I
               had been made aware through your despatches that the Colony
               had to depend almost exclusively for its protection upon its
               own resources and that the fostering care afforded during its
               earlier years was at an end.  I suggested to the Naval Commander
               in Chief that the Lords of the Admiralty should
be
 be recommended
               to hand over a gun boat or other steamer for the use of this
               Colony.  That, once transferred, the whole charge for her support
               should fall upon the Local Revenue.  That the Commander of the
               Vessel, while on Colonial Service, should be a Naval Officer
               approved, if not appointed, by the Lords of the Admiralty.  He
               should receive pay not only for his service afloat, but likewise
               if a man of judgement and discretion,
as
 as a Stipendiary Magistrate
               of the Colony.  The crew ordinarily maintained should be capable
               of handling the vessel efficiently, the Colony supplying additional
               force at any time when required.  I proposed that the ship should
               be under the orders of the Governor, when paid by the Colony, but
               that the Senior Naval Officer be empowered to demand her transfer
               to the Imperial Service in the event of the Mother Country
being
 being
               engaged in a war with any maritime power.  I mentioned that in my
               opinion the one large gun would be inconvenient and unnecessary
               for the Colonial Service and suggested that smaller ones would be
               more efficient for operating against Indians or smugglers.  It
               scarcely fell within my province to say that a heavier armament
               might at all times be ready for her use at 
Esquimalt.  Finally
               I expressed my opinion to 
Admiral Denmanthat
 that the sailing qualities
               of the vessel would be almost of equal importance to us as her
               efficiency under steam.  The distances in this Colony are very
               large and it might be difficult for a Steamer of moderate
               dimensions to carry fuel enough for a voyage, for instance, to
               
Queen Charlotte's Island & back.  I should however mention that
               seams of anthracite coal are now being worked on that Island.
               
               3.  The project above detailed
would
 would, I think, if carried out,
               be very beneficial to the Colony and a saving to the Home Government.
               Large and valuable Ships of War would rarely, if ever, have to
               navigate the narrow and deep Inlets which indent this Coast, and
               are the scene of the greater number of outrages of which we have
               to complain.  The vigilance of the Local Government would be
               extended over the waters as over the lands of the Colony, and
               the
civilization
 civilization of the Indians furthered on the Coast as it is
               now in the interior.
               
               4.  While the two Colonies are in their present condition of
               total separation, I am of opinion that no joint action in regard
               to a Colonial Vessel is practicable.  
British Columbia alone
               would find work enough for one ship.
               
               5.  As to the ability of
this
 this Colony to bear the expense, I
               would mention that the extreme lateness of the season prevents
               my sending any confident estimates of our probable Revenue for
               the year.  We can apply but one test.  The Customs receipts at
               
New Westminster are sixteen per cent already in excess of those
               for the corresponding period of 
1864, although the interior has
               been closed by ice for an unprecedented length of time.  We have
               new
Gold
 Gold fields superior in extent, and approaching in wealth
               to those of 
Cariboo.  The snow has prevented our yet receiving
               returns of Revenue from the 
Kootenay and the new Customs Stations
               on the American frontier.  The new Gold export tax has scarcely
               come into operation yet and the regular mining season only
               commences on the first of June.  I look with much confidence to
               our total receipts for 
1865 being fifty per
cent
 cent in excess of those
               of 
1864.
               
               6.  Under these circumstances I entertain little doubt as to
               the ability of the Colony to keep in an efficient condition of
               service and repair a vessel entrusted to us by Her Majesty's
               Government.
               
            
            
               7.  I refer in support of my present recommendation to two
               despatches which will accompany this Communication.  No. 77
               reports the murder of 
Mr Ogilvy,
the
 the Customs Officer at 
Bella
                  Coola.  No. 78, the piratical attack on the "
Nanaimo Packet" 
               in one of the narrow Inlets off 
Milbank Sound.  I may mention
               likewise that the absence of the means of conveyance will
               preclude my visiting this summer the Mission Station at
               
Metlakahtla and 
Queen Charlotte's Island.
               
               Minutes by CO staff
               
                
                  
                  Mr Elliot
                     I should not be in a hurry to act upon this despatch.
                     The ample resources which this year is expected to bring
                     forth have to be realized, & when realized, I think, they
                     will be found to be wanted for roads & public works in
                     the Colony.  At any rate wait for the ans
r expected from
                     
Govr Kennedy on this subject.
                     
 
                  
                  
                   
                  
                  
                  
                  
                     But this is worthy of Encouragement.
                     
                  
                  
                  
                  
                  
                     Put by now.  
Mr Seymour has returned to 
B.C. & will resume
                     this subject if necessary under the altered circes of the
                     2 Colonies.