OF GOLD AT QUEEN CHARLOTE’S ISLAND. 11

so important a measure until we have acquired a more complete knowledge
of the geological structure and auriferous deposits of the island, and have
thereby ascertained, beyond the risk of future disappointment, the most eligible
site for the establishment, both as respects the mining or purchase of gold, and
the convenience of general trade, we think it advisable to defer establishing a
post until we are in a position to give their due weight to all these consider-
ations.

«In reference to that measure, I may remark that the shores of the sea coast
about and in Mitchell’s Harbour, according to Captain M‘Neill’s report, consist
of lofty precipitous rocks, rising from the water’s edge, and offer no practicable
site for a trading post. According to the same authority provisions are scarce,
there being no deer in the country, and but scanty supplies of fish; the only
kind of food we could depend on procuring in any quantities, being potatoes
from the natives inhabiting Cartwright’s Sound, so that nearly all the provisions .
for the establishment will have to be imported. Chief Factor Work concurs in
opinion with the report just quoted, as to the ineligibility of the ground about
Mitchell’s Harbour for an establishment, and the scarcity of provisions in the
country generally, and moreover adds that the west coast of the island, through-
out its whole extent, is very rugged and mountainous, as well as the east coast
from Cape St. James to Cartwright’s Sound, from whence to Point Rose and
the north shore to North Island, the country is level, with a good quality of soil,
consisting of black vegetable mould overlaying a fine loamy sub-soil. There is
no Clear land in the island, the whole surface being covered with pine timber of
large size.

“< Good harbours have been discovered on both sides of the island, and there
are many bays and inlets which have not been examined.

“« From these accounts the east coast, north of Cartwright’s Sound, appears
the most eligible for a trading post, so far as regards the country, soil, and
climate; but on that side it would be inconveniently distant from the only
known gold district, and therefore highly objectionable ; but should gold here-
after be discovered in equal abundance on the east side, as is even now reported
to be the case, though in doubtful authority, the advantages would be greatly
in favour of that part of the island.

“<< Tn the meantime, until these points are cleared up, we propose, as before
stated, to employ the “ Recovery” in protecting the parties at the mines, and
attending to the trade of Queen Charlotte’s Island. For that service she will
be quite as efficient as a post on shore, and in some respects, as being a mova-
ble establishment, more convenient, to say nothing of the advantage of having
all hands disposable for mining, instead of employing them in building.’ ”’

Mr. Douglas also mentions that the “Exact” had returned from Queen
Charlotte’s Island, having being driven off by the natives from Mitchell’s Har-
bour, and the 32 people in her came away empty handed.

Mr. Douglas writes on the 18th April 1852, that the American brig “ Da-
manscove ” had arrived at Victoria, having been beaten off Queen Charlotte’s
Island by the natives, whose daring and power they represent as being very
great. Mr. Douglas observes, ‘(In our case we trust for success as much to
tact and management as to physical force, which is necessary for its imposing
effect, but should never be used in establishing friendly relations with Indians,
except in self-defence.”

On tive 12th July 1852, Mr. Douglas mentions the receipt of letters from
Mr. Kennedy to the 21st June. Hehad found gold, but in such small quantities :
as not to pay for working. The oficers and men were all dispirited at the
want of success, and the “ Recovery” was in sole occupation of the island, all
the American vessels having gone off in disgust.

Under date 23d August 1852, Mr. Douglas reports the arrival of Mr. Kennedy
at Victoria, who reported that the expedition had been very unproductive ; they
had found no gold anywhere, but at the rock at Mitchell’s Harbour, which vein
he soon exhausted. He then commenced exploring on the coast, and in the
interior of the island, but made no remunerative discovery. ‘Traces of gold
were found in several of the quartz veins, but on blasting the rock they dis-
appeared. 2 t 5 2

Operations were then resumed in Mitchell’s Harbour, but without success.
Douglas Harbour was examined with a like result, and the men became dis-
pirited, and Mr. Kennedy determined to come away. The total loss to the

788--1. B 2 company