Colonial Despatches

I have the honor to forward to Your Lordship the Blue Book of this Colony for the Year 1870, accompanied by a short Commentary upon these Statistics prepared by theColonial Colonial Secretary. Mr Hankin's Report relieves me from the necessity of remarking upon matters of detail.

2. The Year to which these Returns refer was a period of transition, during which legislation and all departments of public affairs were more or less affected by thenegotiations negotiations then in progress for the Union of British Columbia with the Dominion of Canada. It seemed generally undesirable to initiate any modification of existing arrangements which might again require reconsideration on the accomplishment of the greater contemplatedchange change. But, although some injurious effect upon trade may have been produced by uncertainty as to the result of the negotiations which were proceeding, and the possible change to the Canadian Tariff, the Year was fairly prosperous in respect of the material interests of the Colony. Theexplanation explanation of the diminution of Import Duties is to be found quite as much in the increased production of articles of food and general consumption within our own borders, as in diminished consumption of imported merchandise.

3. Indeed, Agriculture,Stockraising Stockraising and the minor operations of Husbandry have been much and successfully extended both on the Mainland and on Vancouver Island. And applications for land for settlement have been numerous.

4. The older Gold Fields at Cariboo andKootenay Kootenay are still productive, and give employment to a large number of miners who conduct their enterprises upon more scientific systems than are found in "placer diggings." Although the results may not be so brilliant and attractive as in newer localities theysufficiently sufficiently reward steady and intelligent industry. But, during the Year Reports were received of the discovery of "placer diggings" on the Findlay, Germansen, and other "Creeks," or Streams, tributaries of Peace River in the Northern part of the Colony. The firstintelligence intelligence was viewed with some degree of doubt, as many such previous reports had been found to cause disappointments. But, there now seems little reason to question that gold deposits have been found in the region of Peace River which have richly rewarded the first seekers and bid fair to beas as productive as the Cariboo district in the earlier days of the Colony. A large influx of mining population has been drawn by the news from the neighbouring States and territories who are proceeding to these mines. Trade has been stimulated and all branches of industry have received an impetus. The localgovernment government has endeavoured to facilitate communication with the Omineca District as it is now called, and I have sent Mr O'Reilly, the Chief Gold Commissioner, who is an experienced Magistrate, to that place to administer justice and ensure order, with instructions to report fully upon the prospects which are afforded andthe the conditions of the mining Camps.

5. Renewed effort is being made by several Companies to further develop the rich deposits of Coal which Vancouver Island undoubtedly possesses and I believe that in a short time many new mines will be in successful operation. One at least of the seamsit it is proposed to work produces Coal of quality superior to that hitherto generally found, being in value for Steam purposes about midway between Scotch and Welsh Coal.

6. Upon the whole Your Lordship will see that the Colony is making progress and will enter upon its new position as a Province of the Dominion with a bright promise for thefuture future. Under the arrangements for Union the condition of the finances will be much improved. The public debt will be assumed by Canada, and the local Revenue will be no longer affected by fluctuations in the receipts from Customs Duties. While funds provided by the Subsidies agreed upon and from other sources of Income should be amplysufficient sufficient for lessened local requirements when relieved of the charges to be borne by the federal administration, I have little doubt that Immigration, which is much desired, will be caused at least to some limited extent by the impending changes, and the attraction afforded by employment which may be obtained on the works to besoon soon commenced for the construction of the proposed Railway. Already it is generally admitted that the value of property has increased, and new spirit has been largely infused into all branches of business undertakings. On relinquishing the administration of the Government after the Union is completed, as will soon be the case, Ishall shall do so in the belief as well as the hope that the progress of this magnificent Province in prosperity and importance will be both rapid and continuous.