No. 95 3293, CO 60/4, p. 136; received 29 March

Victoria, Vancouver's Island

7 February 1859 Sir,

There remains nothing of much importance to communicate by the present Mail respecting the state of British Columbia, as I have already mentioned to you the return of the Lieutenant Governor to this place, and result of thethe expedition to Yale.

2. I have not yet received a return of the Expenditure incurred for the conveyance of the Troops, and the transport of the Stores for the use of the Expeditionary force employed on that occassion, but I understand that the outlay has been considerable; caused in a great measure by the high rates paid to the River Steam Boats, for passengers and transport, a species of imposition to which the Government will inevitably be exposed on all occasions whenever Troops or Stores are moved, as may be often necessary, from place to place in the Colony, untiluntil such service can be performed without the intervention of the Steam Boat.

3. To limit and fix by enactment, the rates chargeable on stores and passages for public account on Fraser's River, would be an impolitic and perhaps oppressive interference with private rights. I have therefore to propose another measure which will be equally effective in protecting the public interests, while it will probably also be less repugnant to public feeling, and more compatible with the true dignity of Her Majesty's Government.

4. That measure would be eithereither to purchase, or build in this country, a strong powerful River Steamer for the public Service of British Columbia.

5. The first cost of a Boat adapted in all repects for that Service would not exceed the Sum of £10,000 Sterling. Her current expenses for maintenance would be inconsiderable, as beyond a very small regular crew. To keep her in perfect order, she might be manned on occasions of emergency from any of Her Majesty's Ships in Port.

6. A Boat adapted of that Class well manned, and armed with two serviceable guns, would perform all the public transporttransport, protect the revenue, and command every Mining Bar on Fraser's River below Fort Yale, and to Port Douglas on the Harrison's River. She would thus become an invaluable instrument, if necessary, for reducing the refractory to obedience and restoring the authority of the Law.

7. The importance of having means at our disposal for the rapid conveyance of Troops on Fraser's River has been long apparent, and I was restrained from providing such means only by the fear of being plunged into financial difficulties.

8. I am of opinion that our attention should be immediately diverted toto that object, and providing the measure meets with the approval of my Executive Council, we shall probably undertake without delay the construction of a Vessel for the navigation of Fraser's River, such as I have described, trusting to defray the cost of her construction out of the Revenues of British Columbia, and, should they prove insufficient to meet that and other public expenditures; that Her Majesty's Government will, in such a case, protect any Bills we may be compelled to draw on the Lords Commissioners of the Treasury, in order to cover any temporary deficit so caused.

Before9. Before closing this subject I beg further to observe that the River Steam Boat herein referred to, is not intended to supercede the demand made in my Despatch No 37 of the 27th November Last, for Two small Boats of light draught, which are intended more especially for coast service, and are probably from their build and small steam power not adapted for river service. *

10. Advices have been received from Fort Yale to the 26th of January.

11. Mr Commissioner Brew reports that he had succeeded inin collecting the Miner's Licence Tax on Hills Bar, amounting to 292 1/2 Dollars, and that 150 Dollars for a Licensed House was to be paid a few days afterwards, and the collection of the Miner's Licence was to be further continued on the other Mining Bars.

12. Mr Brew suggests a reduction of the Mining Tax to quarterly payment of 25/s by every Miner, instead of the present Monthly Tax of 21/s on each claim holder, and other modifications of the Mining Regulations which will have due consideration.

It13. It also appears that the Trading Licence at Fort Yale with two exceptions, had all been paid for the previous month.

14. Mr Brew also reports that the migration of miners to the interior country beyond Fort Yale had commenced on an extensive scale, several crowded Boats from below, having passed on the 25th and on the previous day a great number of men had started from Fort Yale, by land and in Boats for the Fountain, for Bridge River, and for the Canoe Country. Mr Brew is of opinion that 5000 MinersMiners will soon be collected in those Districts, and recommends the appointment of an Assistant Gold Commissioner to be stationed at the Fountain.

15. Mr Brew's report contains nothing further of importance.

16. The numbers of the Victoria Gazette, as per margin ** are forwarded for your information.

I have etc. James Douglas