<persName ref="prs:douglas_j"><surname>Douglas</surname>, <forename>James</forename></persName> to <persName ref="prs:labouchere_h"><surname>Labouchere</surname>, <forename>Henry</forename></persName> 16 April 1856, CO 305:7, no. 5815, 35. Douglas addressee Labouchere

Published by Jim Hendrickson and the University of Victoria.

Douglas, James to Labouchere, Henry 16 April 1856, CO 305:7, no. 5815, 35.The Colonial Despatches of Vancouver Island and British Columbia 1846-1871, Edition 2.6, ed. James Hendrickson and the Colonial Despatches project. Victoria, B.C.: University of Victoria. https://bcgenesis.uvic.ca/V56010.html. CO 305:07 CO 305 7 5815 35 10 V.I. 1856 received 30 June co_305_07_00036r.jpg Transcribed from microfilm archives, marked up in Waterloo Script, then transformed into TEI P5 XML.

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Despatch to London. Minutes (5), Other documents (1), Marginalia (1).

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Douglas writes to Labouchere about gold discoveries in the Upper Columbia River District. He cautions against taxation on gold finds by the British government.

Minutes discuss how to tax and protect colonial gold discoveries. It is decided to be left to Douglas’s discretion to keep order in the district.

The file includes a draft reply from Labouchere to Douglas stating Labouchere’s preference against taxation of the gold miners.

Douglas, James
Victoria Vancouver's Island
Labouchere, Henry Inserted revisionDesc with @status="unproofed". Changed idno @type="received" into a date element. Gave existing date an @type="sent" and reordered bibl contents.
No. 10 5815, CO 305/7, p. 35; received 30 June
Victoria Vancouver's Island
16th April 1856 Sir

I hasten to communicate for the information of Her Majesty's Government, a discovery of much importance, made known to me, by Mr Angus McDonald, Clerk in charge of Fort Colvile one of the Hudson's Bay Company's Trading Posts on the Upper Columbia River District.

That Gentleman reports in a letter dated on the 1st of March last that Gold has been found in considerable quantities within the British Territory on the Upper Columbia, andand that he is moreover of opinion that valuable deposits of Gold will be found in many other parts of that country, he also states that the daily earnings of persons then employed in digging Gold were ranging from 2 to 8 for each man.

Such is the substance of his report on that subject, and I have requested him to continue his communications in respect to any further discoveries made.

I do not know if Her Majesty's Government will consider it expedient to raise a revenue in that quarter, by taxing all persons engaged in gold digging, but I may remark that it will be impossible to levy such a tax, without the aid of a military force, and the expense in that case would probably exceed the income derived from the Mines. *

I will not fail to keep you well informed in respect to the extentextent and value of the gold discoveries made, and circumstances will probably be the best indication of the course, which it may be expedient to take: that is in respect to imposing a tax or leaving the field free and open to any persons who may choose to dig for gold.

Several interesting experiments in gold washing have been lately made in this Colony, with a degree of success, that will no doubt lead to further attempts for the discovery of the precious metal. The quantity of Gold found is sufficient to prove the existence of the metal, and the parties engaged in the enterprise entertain sanguine hopes of discovering rich and productive beds.

I have the honor to be Sir Your most obedient humble Servant James Douglas Governor The Right HonbleHonourable Henry Labouchere Esqre Her Majesty's principal Secretary of State For the Colonial Department.
Mr Elliot Copy to the H.B.Co—for their information.

I annex a P. Paper containing Sir John Pakington's instructions to Governor Douglas when gold was reported to have been discovered in Queen Charlotte's Island. It seems to me that they are applicable to the present case.

Without imputing an arrière pens ee to Governor Douglas in respect to the necessity of establishing a military force to collect any tax it may be thought right to impose on licenses for gold hunting I should myself conceive that a good strong body of Constables, but of course sufficiently well paid to prevent their deserting to the diggings, would be the best & the most legitimate Authority for him to possess. Soldiers at 3d a day would certainly desert. What with the distance, & peculiarity of this settlement almost everything must be left in such a case as this to the Governor's discretion, aided by general instructions, which he already possesses, from the Home GovtGovernment. See also his desphdespatch 11 Apl/53—6981. But the time has not yet arrived for talking about a revenue from Gold in the H.B.Co Territories.

ABd 1 July
Mr Ball Sir J. Pakington's directions were adapted to the case of alleged gold discoveries on an island, which can be to a certain extent guarded by a naval force, & interlopers frightened away. I should think them quite inapplicable to that of similar discoveries on the continent of Nth Am. & within easy reach of the frontier of Oregon: and that it was idle to attempt to derive a direct revenue from licenses; while, if the discovery proved real, there would soon be revenue enough for practical purposes from other sources. But it would be necessary to maintain in some way the supremacy of the British Government, & establish some degree of law & order among the diggers. I do not see how this can be done without the presence of a small armed force. But, as the occasion has not as yet arrived, I think it may be sufficient to give GovrGovernor Douglas general instructions on this head, & direct him to take them into consideration & devise the best means of accomplishing the object. The H.B.C. have nothing to do with the matter farther than this, that the territory in question is within the limits of their (all but expired) license to trade with the Indians. HM Jy 2
Mr Labouchere I concur with Mr Merivale in thinking it idle to attempt to raise a revenue by Licenses to dig for gold. If further accounts should confirm the present reports & show an influx of population I suppose that some military force shdshould be provided. In the mean time I do not well understand what legal provision exists for the Government of the territory—or what power there is to levy import duties which probably wdwould be the best means of providing a revenue. JB 3 July
Licenses are out of the Question—all that can be done at present is to leave it to his discretion to keep order in the district if the population should increase—that for the present we do not look for revenue nor desire to incur expence—but wish that he should keep us regularly informed of anything of interest that may occur. HL 4 J
Returned to Dept 23 July. ABd
Draft reply, Labouchere to Douglas, No. 14, 4 August 1856.
See Sir J. Paking[ton's] desphdespatch on a former report as to the discovery of Gold in Queen Charlotte I. ABd