I have the honor to report to you that considerable excitement has been occasioned
                     recently in this neighbourhood by the discovery of gold on 
Frazers, & 
Thompson’s Rivers, at about the position of the juncture of the latter with the former river, near
                     to 51
st parallel of north Latitude.
2. The reports concerning these new gold diggings are so contradictory that I am unable
                     to furnish you with any information upon which I can 

depend. That gold exists is certain, & that it will be found in abundance seems to
                     be the opinion of all those who are capable of forming a judgement upon the subject,
                     but it is so obviously to the advantage of the surrounding community to circulate
                     exaggerated, if not altogether false reports, for the purpose of stimulating trade,
                     on creating monopolies, that it is most difficult to arrive at any correct conclusion,
                     or to obtain any reliable information; I have every reason to believe that the 

Indians have traded some quantity of gold, with the officers of the Hudson’s Bay Co.,
                     & I am satisfied that individuals from this immediate neighbourhood who started off
                     to the diggings upon the first intelligence of their existence, have come back with
                     gold dust in their possession, & which they assert was washed by themselves, but whether
                     such be really the case, or whether it was traded from the Indians I am unable to
                     determine. These persons all declare that at the present moment altho’ the yield is
                     good, yet that there 

is too much water in the rivers to admit of digging & washing to be carried on with
                     facility, but that when the water falls somewhat, as the summer advances, that the
                     field will be abundant. I am inclined myself to think that this information is not
                     far from the truth, for these persons after obtaining a fresh stock of provisions
                     have all returned to the diggings.
3. The excitement in 
Vancouvers Island itself is quite insignificant compared to that 
in
in 
Washington & 
Oregon Territories & in California, & which of course is increased by every possible means by interested
                     parties. The result has been that several 100 persons from American Territory have
                     already flocked to the newly reported auriferous regions, & by the last accounts fresh
                     Steamers & even Sailing Vessels were being chartered to convey passengers to 
Puget Sound or to 
Vancouver’s Island, whence they have to find their way to the diggings principally by Canoes. If this
                     emigration continues to a locality destitute 

of the means of subsistence, & only to be reached with difficulty the lawlessness
                     the bloodshed, & the misery that will ensue is only too evident.
4. I forward herewith an extract from the “Pioneer & Democrat” newspaper of 
16 April/50, published at 
Olympia, 
Washington Territory, from w
h the feeling in that neighbourhood will be seen. The statements made must not be received
                     as entirely correct for while the facilities for visiting the gold diggings are prominently
                     put forth the many difficulties 

& dangers that will have to be encountered are carefully overlooked. 
Olympia is situated in 
Puget Sound, & would undoubtedly reap a rich harvest by an influx of population.
5. I have heard that all the Crews of the Ships in 
Puget Sound have deserted, & have gone to the Diggings, I am happy to say that as yet I have
                     not lost a single man for the 
“Satellite” since the information was received & I have every reason to hope that I may not be
                     unfortunate in this respect, altho’ doubtless soon the temptations to desert 

will be of no ordinary character.