nowledge the receipt of your despatch, Number 10, of
the 16th April last, reporting the discovery of gold within the British
territory of the Upper Columbia River district.

In the absence of all effective machinery of Government, I perceive that
it would be quite abortive to attempt to raise a revenue from licences
to dig for gold in that region. Indeed, as Her Majesty's Government do
not at present look for a revenue from this distant quarter of the
British dominions, so neither are they prepared to incur any, expense on
account of it. I must, therefore, leave it to your discretion to
determine the best means of preserving order in the event of any
considerable increase of population flocking into this new gold
district; and I shall rely on your furnishing me with full and regular
accounts of any event of interest or importance which may occur in
consequence of this discovery. I have, etcetera, (Signed) H.
Labouchere.

To Governor Douglas, etcetera, etcetera.

NO. III.

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

Victoria, Vancouver's Island, October 29, 1856.

Sir,--1. I have the honour to acknowledge the receipt of your despatch,
Number 14, of the 4th of August, communicating the arrival of my
despatch, Number 10, of the 16th April last, in which was reported the
discovery of gold within the British territory in the Upper Columbia
River district.

2. I have, since the date of that letter, received several other
communications from my correspondent in that part of the country, who,
however, scarcely makes any allusion to the gold discovery; but I have
heard through other almost equally reliable sources of information, that
the number of persons engaged in gold digging is yet extremely limited,
in consequence of the threatening attitude of the native tribes, who,
being hostile to the Americans, have uniformly opposed the entrance of
American citizens into their country.

3. The people from American Oregon are, therefore, excluded from the
gold district, except such, as resorting to the artifice of denying
their country, succeed in passing for British subjects. The persons at
present engaged in the search of gold are chiefly of British origin, and
retired servants of the Hudson's Bay Company, who, being well acquainted
with the natives, and connected by old acquaintanceship and the ties of
friendship, are more disposed to aid and assist each other in their
common pursuits than to comm