ve that the Indians have traded some quantity of gold with the
officers of the Hudson's Bay Company, and I am satisfied that
individuals from this immediate neighbourhood who started off to the
diggings upon the first intelligence of their existence, have come back
with gold dust in their possession, and which they assert was washed by
themselves; but whether such be really the case, or whether it was
traded from the Indians, I am unable to determine. These persons all
declare that at the present moment, although the yield is good, yet
there is too much water in the rivers to admit of digging and washing to
be carried on with facility; but that when the water falls somewhat, as
the summer advances, that the yield will be abundant. I am inclined to
think that this information is not far from the truth, for these
persons, after obtaining a fresh stock of provision, have all returned
to the diggings.

The excitement in Vancouver's Island itself is quite insignificant
compared to that in Washington and Oregon territories, and in
California, and which, of course, is increased by every possible means
by interested parties. The result has been that several hundred persons
from American territory have already flocked to the newly reported
auriferous regions, and by the last accounts fresh steamers, and even
sailing vessels, were being chartered to convey passengers to Puget
Sound, or to Vancouver's Island, whence they have to find their way to
the diggings principally by canoes.

I have heard that all the crews of the ships in Puget Sound have
deserted, and have gone to the diggings; I am happy to say that as yet I
have not lost a single man from the "Satellite" since the information
was received, and I have every reason to hope that I may not be
unfortunate in this respect, although, doubtless, soon the temptations
to desert will be of no ordinary character.

NO. XIII.

_Secretary Sir E. Bulwer Lytton to Governor Douglas_.

Downing Street, July 1, 1858.

Sir,--I have to acknowledge your despatch of the 8th ult, in
continuation of former despatches, informing the Secretary of State from
time to time of the progress of the gold discoveries on Fraser River,
and the measures which you had taken in consequence. I am anxious not
to let the opportunity of the present mail pass without informing you
that Her Majesty's Government have under their consideration the
pressing necessity for taking some steps to establish public