_Extract of a Despatch from Governor Douglas to the Right Hon. Henry
Labouchere, M.P., dated Victoria, Vancouver's Island, December_ 29,
1857. (Received March 2, 1858.)

Since I had the honour of addressing you on the 15th July last,
concerning the gold fields in the interior of the country north of the
49th parallel of latitude, which, for the sake of brevity, I will
hereafter speak of as the "Couteau mines" (so named after the tribe of
Indians who inhabit the country), I have received farther intelligence
from my correspondents in that quarter.

It appears from their reports that the auriferous character of the
country is becoming daily more extensively developed, through the
exertions of the native Indian tribes, who, having tasted the sweets of
gold finding, are devoting much of their time and attention to that
pursuit.

They are, however, at present almost destitute of tools for moving the
soil, and of washing implements for separating the gold from the earthy
matrix, and have therefore to pick it out with their knives, or to use
their fingers for that purpose; a circumstance which in some measure
accounts for the small products of gold up to the present time, the
export being only about 300 ounces since the 6th of last October.

The same circumstance will also serve to reconcile the opinion now
generally entertained of the richness of the gold deposits by the few
experienced miners who have seen the Couteau country, with the present
paucity of production.

The reputed wealth of the Couteau mines is causing much excitement among
the population of the United States territories of Washington and
Oregon, and I have no doubt that a great number of people from those
territories will be attracted thither with the return of the fine
weather in spring.

In that case, difficulties between the natives and whites will be of
frequent occurrence, and unless measures of prevention are taken, the
country will soon become the scene of lawless misrule.

In my letter of the 15th of July, I took the liberty of suggesting the
appointment of an officer invested with authority to protect the natives
from violence, and generally, so far as possible, to maintain the peace
of the country. Presuming that you will approve of that suggestion, I
have, as a preparatory step towards the proposed measure for the
preservation of peace and order, this day issued a proclamation
declaring the rights of the Crown in respect to gold found i