4. The Towns of Lytton, Clinton, and Quesnelmouth have not progressed. These placed flourished while Fraser River was the centre of mining attraction and prior to the construction of the Waggon Road when the expense of living in our Northern Mines drove the miners to winter in the lower Country. Now, however, provisions are cheap and abundant at Cariboo and miners prefer remaining throughout the year in the neighbourhood of their mining property. Theexistence existence of these Towns, therefore, depends upon the passing traffic between the Upper & Lower Country, the small requirements of the agricultural settlers, the sale of supplies required by the Chinese Miners and a certain amount of Indian trade.

5. I arrived in Cariboo on the 10th day after my departure from New Westminster. I remained eight days on William's Creek and visited many other creeks in the vicinity upon whichminers miners are working. The number of men in the Cariboo district is about the same as last year. The Miners as a body are all doing well. The amount of Gold Dust purchased by the Banks of British Columbia and British North America during the month of July exceeded any previous month on record namely $277,000. Quartz veins are attracting attention. Several rich veins having been discovered. The want of capital for the development of this permanent source of miningwealth wealth is much felt, as yet no Quartz Mills have been established in the Colony and it is necessary to send Quartz to San Francisco to be crushed before the value of the vein can be ascertained. I have with the advice of the Council offered a reward for the first Quartz Mill established within the Colony, and I trust before the end of the Mining Season to be able to report that the work has commenced.

6. Leaving Cariboo Iproceeded proceeded northward a distance of sixty miles to the newly discovered mines situated on a small river emptying into the Fraser about 25 miles below Fort George. Eighty men had arrived at these new diggings but the extreme difficulty of obtaining supplies had prevented the proper development of the mines. This new discovery is considered important as tending to confirm the theory that rich gold fields extend from the Upper Columbia to the Fraser. From Quesnelmouthto to Fort George the Fraser River is navigable and should these mines attract attention and population a Steamer will be at once constructed to run upon this portion of the river.

7. Returning by way of the Fraser River Valley, I was enabled to visit the chief farming districts. I found settlement progressing—large tracts of land have for the first time been brought under cultivation, several grist Mills are in course of erection,and and I have little doubt that after another harvest sufficient Wheat will be raised by the settlers to supply the miner[s]. Hitherto the imports of flour have averaged 17,000 barrels per annum.

8. The Steamer lately constructed on the Thompson River by the Hudson Bay Company, conveyed me a distance of 110 miles from Savana by way of the Great Kamloops and Shuswap Lakes to the New Town of Seymour. A journey of 35 miles across themountains mountains brought me to the Upper Columbia or Big Bend mining district.

9. The representations made on the first discovery of Gold in this district were very incorrect, and caused much disappointment among the class of miners who flocked there in the early spring. The mines were reported as "shallow diggings" capable of being easily worked, whereas the "Bed Rock," on which the Gold is found—with few exceptions—lieslies at considerable depth from the surface, and a large expenditure is required in sinking shafts before any return can be expected. Thus many who could not afford this expense were obliged to leave. At the time of my visit the population did not exceed four hundred. The few companies working day and night had reached the "Bed Rock" at a depth of from 60 to 120 feet, and were taking out Gold. There is every indication that when the proper systemof of working the ground has commenced these mines will equal Cariboo in richness.

10. An American Steamer plies on the Columbia River from Colville to within 18 miles of the mines. The competition thus created between the British Columbian and American Merchant reduces the price of living at these mines very considerably.

11. There are many subjects connected with my recentTour Tour on which I shall have occasion to report to Your Lordship. The departure of the Mail Steamer so shortly after my return to the seat of Government only enables me to give this rough outline of my travels. I enclose a Map showing my route.