 
                  
                  
                  
                  
                  
                  
                     Referring to my letter of the 
31 Aug last (N 20) wherein
                     is mentioned the departure from 
Vancouver's I of 
Gov Douglas
                     for the mining districts in 
Fraser's River, in consequence of
                     disturbances in that quarter & anticipated hostilities between the
                     
                     white Miners & the native Indian population, & reporting my having in
                     compliance with a requisition from H.E furnished him with a guard
                     of Royal Marines from the 
Satellite, to accompany him upon his
                     excursion, I have the honor now to communicate
to
 to you that H.E.
                     returned to 
Victoria on the 
26 Ult, & the Guard rejoined the
                     
Satellite the same day.
                     
                     2. Although I regret to have to mention the desertion of two of
                     
                     the party, yet I have much pleasure in forwarding to you the copy of a
                     letter which I have received from the 
Gov bearing testimony to the
                     unexceptionable conduct & soldierlike bearing of the party generally.
                     The Two who deserted are young recruits & had only been a few days in
                     the 
Satellite prior to their being sent up the River, having joined
                     from the Calpyso on the 
23 Aug last; & they were without
                     doubt led away by the novelty of the circumstances in which they found
                     themselves placed, & by the rare & manifold temptations by which they were 

                     were surrounded. Under a just consideration of all the circumstances
                     of the case, it is, therefore to me a source of no undue satisfaction
                     to find that the old hands of the 
Satellite who formed the remainder of
                     the Escort, were proof against temptations to desert so great & so
                     unusual, & to see that they returned to their Ships not only with
                     evident pleasure but apparently perfectly contended with their present
                     condition; & notwithstanding the two cases of desertion, which I feel
                     satisfied could not have been prevented I conceive 
Lieut. Howard S.
                        
                        Jones R.N. who commanded the party is deserving of much credit for the
                     measure in which he dealt with his men & kept them together in perfect
                     discipline.
                     
 
                  
                  
                  
                     3. I have every reason to believe that the visit of the Governor
                     
                     
                     has been productive of the most beneficial results. He was everywhere
                     well received & by his able & energetic measures & sound discretion,
                     law & order were restored & confidence was diffused as well amongst the
                     white immigrants as among the native Indians.
                     
                  
                  
                     4. The winter season is now fast approaching & numbers of miners
                     
                     are leaving the river, & are proceeding to 
San Francisco by every
                     Steamer. They all tell the same tale. They declare that although the
                     winter in the river has fallen, & is falling yet the nearer the bed
                     of the river is approached the less the yield of Gold, and that they
                     are obliged to leave to escape starvation, being in such need as to
                     scarce have sufficient money to pay for their passage. I dont myself
                     place much confidence in these reports. Their policy is obvious. I
                     should be rather
inclined
 inclined to attribute the case of leaving to other
                     considerations. That large quantities of gold have been taken out by
                     different individuals is an undoubted fact; and it is no more than
                     reasonable to assume that those who have been fortunate during the past
                     few months, and, to use their own words, have made their "pile," would
                     prefer being in comfort during the winter at 
San Francisco and
                     realising the enjoyment of their gains, to remaining upon the banks of
                     
Fraser's River exposed to the inclemency of a winter season under a
                     canvas tent.
                     
                     Although Expresses and Agencies have been established by private
                     individuals, yet I do not think they have hitherto obtained much
                     confidence,

 and the Miners prefer carrying their gold dust with them,
                     and it is very natural under these circumstances they they should
                     endeavour to divert attention from themselves by declaring their
                     poverty, and should attempt to stay others from flocking to a region
                     which they, no doubt, purpose revisiting in the Spring. I learned from
                     a source which I can scarce question, that the recent Mail Steamer to
                     
San Francisco took down many individuals, who all had considerable
                     quantities of gold dust in their possession; one party, consisting of 4
                     men, carrying with them as much as 40 lbs. weight.
                     
 
                  
                  
                     5. Business at 
Victoria at the present time is in a somewhat
                     
                     depressed state. Many of the Merchants and property holders are
                     returning to 
San Francisco, disheartened at the non-fulfilment of their
                     wild and unreasonable expectations of realising immediate wealth, and
                     disinclined to abide with patience the course of a more healthy and
                     legitimate traffic, with its less rapid, but probably surer, gains.
                     
                     6. 
M John Nugent, who has been appointed by the 
Gov of
                     
                     the United States as its special Agent on the Pacific Coast arrived at
                     
Victoria on the 
23 ult. He visits 
Vancouver's Island in an

                     unofficial capacity, and he is soon to proceed to 
Fraser's River, for
                     the purpose, I believe, of advising his 
Gov of the true State of
                     affairs in these parts; although his ostensible object is said to be to
                     preserve order amongst the citizens of the United States who have
                     immigrated into British Possessions, and to advise them to submit
                     quietly and cheerfully to the laws of the Country.