ESPONDENCE RELATIVE TO THE DISCOVERY OF GOLD IN THE FRASER RIVER
DISTRICT, IN BRITISH NORTH AMERICA.

Presented to both Houses of Parliament by Command of Her Majesty, July
2, 1858.

NUMBER 1.

_Governor Douglas to the Right Hon. Henry Labouchere, M.P._

Victoria, Vancouver's Island, April 16, 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 Colville, one of the Hudson's
Bay Company's trading posts on the Upper Columbia 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, and 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 person's then
employed in digging gold were ranging from 2 pounds to 8 pounds 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 extent 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, etcetera, (Signed) James Douglas,
Governor.

The Right Hon. Henry Labouchere, etcetera, etcetera, etcetera.

NO. II.

_The Right Hon. Henry Labouchere to Governor Douglas_.

Downing Street, August 4, 1856.

Sir,--I have to ack