Despatch to London.
Minutes (5), Other documents (1), Marginalia (1).
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Douglas writes to Labouchere about gold discoveries in the Upper Columbia River District. He cautions against taxation on gold finds by the British government.
Minutes discuss how to tax and protect colonial gold discoveries. It is decided to
be left to Douglas’s discretion to keep order in the district.
The file includes a draft reply from Labouchere to Douglas stating Labouchere’s preference against taxation of the gold miners.
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 Colvile one of the Hudson's Bay
Company's Trading Posts on the Upper Columbia River 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, andand 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 persons
then employed in digging Gold were ranging from 2 to 8 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 extentextent
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 the honor to be Sir
Your most obedient humble Servant
James Douglas
Governor
The Right HonbleHenry Labouchere Esqre
Her Majesty's principal Secretary of State
For the Colonial Department.
Minutes by CO staff
Mr Elliot
Copy to the H.B.Co—for their information.
I annex a P. Paper containing Sir John Pakington's instructions to
Governor Douglas when gold was reported to have been discovered in Queen
Charlotte's Island. It seems to me that they are applicable to the
present case.
Without imputing an arrière pens ee to Governor Douglas in
respect to the necessity of establishing a military force to collect any
tax it may be thought right to impose on licenses for gold hunting I
should myself conceive that a good strong body of Constables, but of
course sufficiently well paid to prevent their deserting to the
diggings, would be the best & the most legitimate Authority for him to
possess. Soldiers at 3d a day would certainly desert. What with the
distance, & peculiarity of this settlement almost everything must be
left in such a case as this to the Governor's discretion, aided by
general instructions, which he already possesses, from the Home
Govt. See also his desph 11 Apl/53—6981. But the time has
not yet arrived for talking about a revenue from Gold in the H.B.Co
Territories.
Mr Ball Sir J. Pakington's directions were adapted to the case of alleged gold
discoveries on an island, which can be to a certain extent guarded by a
naval force, & interlopers frightened away. I should think them quite
inapplicable to that of similar discoveries on the continent of Nth
Am. & within easy reach of the frontier of Oregon: and that it was
idle to attempt to derive a direct revenue from licenses; while, if the
discovery proved real, there would soon be revenue enough for practical
purposes from other sources. But it would be necessary to maintain in
some way the supremacy of the British Government, & establish some
degree of law & order among the diggers. I do not see how this can be
done without the presence of a small armed force. But, as the occasion
has not as yet arrived, I think it may be sufficient to give Govr
Douglas general instructions on this head, & direct him to take them
into consideration & devise the best means of accomplishing the object.
The H.B.C. have nothing to do with the matter farther than this, that
the territory in question is within the limits of their (all but
expired) license to trade with the Indians.
Mr Labouchere
I concur with Mr Merivale in thinking it idle to attempt to raise a
revenue by Licenses to dig for gold. If further accounts should confirm
the present reports & show an influx of population I suppose that some
military force shd be provided. In the mean time I do not well
understand what legal provision exists for the Government of the
territory—or what power there is to levy import duties which probably
wd be the best means of providing a revenue.
Licenses are out of the Question—all that can be done at present
is to leave it to his discretion to keep order in the district if the
population should increase—that for the present we do not look for
revenue nor desire to incur expence—but wish that he should keep us
regularly informed of anything of interest that may occur.