"As respects the alleged discoveries of gold, upon which some doubt is thrown in Mr. Fraser's letter of the 13th, I have merely to add that the testimony of Governor Dallas is important, and that the report of Professor Hind appeared to me to contain valuable evidence and reasoning, which can be tested by the further explorations of a geographical commission, for which purpose either Professor Hind, or Sir William Logan, or Mr. Sterry Hunt, or all these well known Canadians, are at once available. Professor Hind's suggestion as to the supply of quicksilver by the Company to miners, may or may not be valuable to a Company desiring to retain the lead of trade in portions of its own territory; but a reference to his report will show that it was not proposed to you as an immediate measure, as surmised. In any case, it is undoubted that gold exists in districts east of the primary rocks of the east flanks of the Rocky Mountains, and that persons are seeking for it in greater or less numbers. We have yet to learn how far the information has spread, and what influence it may have upon the movement of the American population. But, great or small, it is a fact affecting the settlement of the community, which enlarges the general pressure for a decision as to how large tracts of your territory, suitable beyond doubt for human habitation, are hereafter to be governed for the good of the people who may come, and so as to preserve British ascendency in your part of the Continent. Both Governor Dallas and myself have had many discussions as to this, and you have before you already both his views and mine. But the paper gives a _resume_ of the general case as presenting itself to many thoughtful persons, known to you in Canada, and belonging to the various political parties. It was desirable to record their ideas, and I present them for what they may be worth, wishing you to understand that the proposal for federation and a joint Custom-house is the view of Mr. George Brown. On the other hand, Mr. Cartier, and even Mr.

Sandfield Macdonald, desire to see a separate Crown Colony established.

"I now come to the all-important matter of the wise, economical, and efficient working of the business of the Company in America. The paper drawn up under the instructions of Governor Dallas by Mr. Hopkins, and discussed at length between us, is offered to you as an attempt to solve a difficulty which must be got rid of if more business is to be done at less cost, and if the compet.i.tion around you is to be met, as it easily may be, with thorough success. The deed poll is an arrangement standing in the way of change and extension of your operations: it covers legal questions which some day may give you trouble; and it may be modified in some such manner as that suggested by your a.s.sent in the first place, and by the judicious action of Governor Dallas, who should receive your instructions soon, consequent thereon.

"The proposal to subst.i.tute a contingent and temporary interest in so much stock of the Company for the 40 per cent. of profits now given to the chief factors and traders, may a.s.sist you in placing your unissued shares, in a mode leading to a very large annual saving, to be accompanied by an evident increase of efficiency. For, able as your staff is in general, there are many useless, and even mischievous, persons under pay or profits; and the unfortunate propensities of Sir George Simpson did not lead in his latter years, I fear, to the improvement of the moral tone of your servants. There are cases of favouritism and abuse not at all creditable, such as that of the employment of Sir George's illegitimate son, and the retention of a chief trader notoriously useless and drunken, for many years after the chief factor of his district had reported his demerits to the local governor. But the service is popular, and there can be no difficulty in keeping up a staff fully able to cope with the sharp and energetic men employed by the American traders,--your permanent rivals in business.

"It is perhaps unnecessary further to explain the reasons of my not proceeding to Red River. As before stated, I had expected to do so in company with Captains Glyn and Synge, without whom I should have hesitated to undertake the more extended and responsible task at first proposed. I did not in any event expect that Governor Dallas would come to Canada prior to the receipt of your official letter of the 6th July, and for which I had been waiting from the 30th June until the 20th July; and when he arrived, and especially when I found that the purposes of my proposed journey had been in great measure previously fulfilled by him, it became a question of whether it ought not to be postponed. He had already folly advised the Governor and Committee of the 'state of the Red River Settlement,' of its 'suitability for settlement,' and of the general and highly favourable features of the tracts, over which he had travelled for 1,800 miles in various directions. The best route for a telegraph could be, and was, suggested, to you from his own observations, corroborated and added to by the personal experience of Mr. Hopkins and others, who had often traversed the districts, and had resided for years therein. The entire feasibility of constructing a telegraph across the Continent was not only confirmed by these experiences, but by the practical views of persons consulted, who had set up lines through even more difficult and wilder tracts of country.

"Therefore the objects you appeared to have before you were realized, if not directly through me, yet through the colleague you had selected for me, your own local governor, of whom I cannot express too high an opinion, having been his almost constant companion for above a month, during which every detail, so far as we could grasp it, was thoroughly discussed.

"Having given my best attention and labours to the whole subject for some years, and believing that I might be of more service to you here, since Governor Dallas could not be spared to come home, and could not prudently have left Canada until he had put all your business there in order, I exercised no unwise discretion in returning to England.

"I have now to ask your forgiveness for the length of this paper, and to express my readiness to give any further explanations in my power, while wishing you and your colleagues quite to understand that I have no desire whatever--but far the contrary--to obtrude myself upon you in the control of an enterprise which I honestly believe can be made completely successful by the exercise of even ordinary energy and skill, and which ought to be safe and certain in such experienced and able hands as yours.

"I have the honour to be, dear Sir, "Yours faithfully, "EDWD. W. WATKIN.

"Sir E. W. HEAD, Bart., _"Governor of the Hudson's Bay Company."_

One other object I desired to accomplish, was an exchange of boundary between the Hudson's Bay and the United States, with the view to Superior City being brought into British territory by a fair payment and exchange of land. The negociation looked very hopeful at one time, but it was not followed up in London, and it fell to the ground. There are few people who understand that it is not only desirable to do the right thing, but to do it at the right time--that is, when circ.u.mstances favour the doing.

I am ent.i.tled to say that, owing to the non-acceptance, at the time, of our proposals, much delay in realizing the great object of settling the government and colonizing the territory arose: inadequate terms for the sale and purchase of the vast landed estate of the Company had to be accepted from Canada; and the "wintering partners," not made real partners, as recommended by Governor Dallas and myself, but held at arm's length, had, at last, to be compensated for giving up the old "deed poll" with a sum of 107,055_l._, paid in 1871--ten years after the date of our report to Sir Edmund Head.

But, "all's well that ends well," and the great work is, at last, accomplished.

CHAPTER XII.

_The Hudson's Bay Company and the Select Committee of_ 1748-9.

The history of the old co-partnery, the "Governor and Company of Adventurers of England trading into Hudson's Bay," ought to be written by some able hand. Samuel Smiles or Goldwin Smith, with the aid of the archives held by the Governor and Committee, would make a book which would go round the world. To publish such a record is a duty inc.u.mbent upon Mr. Eden Colville and his colleagues. From no merit or prevision of theirs, a happy and profitable transformation has been made of their undertaking. The individuals, as well as Canada as a State, and the Empire, also, have gained largely. The monopoly has been broken up, under liberal and generous treatment of the monopolists--monopolists who had deserved their monopoly by their able administration; and those who ran the risk, paid the cost, and incurred the anxiety, neither complain nor ask for the credit of their work. The merchant adventurer trading to the Eastern Indies, and the merchant adventurer trading into Hudson's Bay, each on his side of the world, has preserved vast territories to the Crown and people of England. Their conquests have cost the taxpayers of England nothing; while the trade and enterprise they promoted have enriched millions, and have opened careers, often brilliant, for men of courage and self denial, many of whose names will go down to posterity in fame and honour.

The Hudson's Bay Company was const.i.tuted under a charter of Charles the Second. That charter began thus: "Charles the Second, by the grace of G.o.d King of England, Scotland, France, and Ireland, Defender of the Faith, to all to whom these presents shall come greeting:

"Whereas our dear intirely beloved cousin, Prince Rupert, Count Palatine of the Rhine, Duke of Bavaria and c.u.mberland; George Duke of Albemarle, William Earl of Craven, Henry Lord Arlington, Anthony Lord Ashley, Sir John Robinson, and Sir Robert Vyner, Knights and Baronets; Sir Peter Colleton, Baronet, Sir Edward Hungerford, Knight of the Bath, Sir Paul Neele, Sir John Griffith, Sir Philip Carteret, and Sir James Hayes, Knights; John Kirke, Francis Millington, William Prettyman, John Fenn, Esquires, and John Portman, citizen and goldsmith of London, have at their own great costs and charges undertaken an expedition for Hudson's Bay, in the Northwest parts of America, for the discovery of a new pa.s.sage into the South Sea, and for the finding of some trade for furs, minerals, and other considerable commodities; and by such their undertaking have already made such discoveries as do encourage them to proceed farther in pursuance of their said design, by means whereof there may probably arise great advantage to us and our kingdom:

"And whereas the said undertakers, for their further encouragement in the said design, have humbly besought us to incorporate them, and grant unto them, and their successors, the whole trade and commerce of all those seas, streights, and bays, rivers, lakes, creeks, and sounds, in whatsoever lat.i.tude they shall be, that lie within the entrance of the streights commonly called Hudson's Streights; together with all the lands, countries, and territories upon the coasts and confines of the seas, streights, bays, lakes, rivers, creeks, and sounds aforesaid, which are not now actually possessed by any of our subjects, or by the subjects of any other Christian Prince or State."

And the adventurers were made "one body corporate and politic, in deed and in name," by the name of "The Governor and Company of Adventurers of England trading into Hudson's Bay."

They were granted "the sole trade and commerce" of "all those seas,"

&c., &c., "in whatever lat.i.tude they shall be;" "together with all the lands and territories upon the countries, coasts, and confines of the seas, bays, lakes, rivers, creeks and sounds aforesaid;" "with the fishing of all sorts of fish, whales, sturgeons, and all other royal fishes;" "together with the royalty of the sea upon the coasts within the limits aforesaid, and all mines royal, as well discovered as not discovered, of gold, silver, gems, and precious stones, to be found and discovered within the territories, limits, and places aforesaid; and that the land be from henceforth reckoned and reputed as one of our plantations or Colonies in America, called Rupert's Land."

All this was to be "holden" "of us, our heirs and successors, as of our manor of East Greenwich, in the County of Kent, in free and common soccage, and not in capite or by knight's service; yielding and paying yearly to us, our heirs and successors, for the same, two elks and two black beavers, whensoever and as often as we, our heirs and successors, shall happen to enter into the said countries, territories, and regions hereby granted."

The adventurers were further granted "not only the whole, intire, and only liberty of trade and traffick, and the whole, intire, and only liberty, use and privilege of trading and traffick to and from the territories, limits, and places aforesaid, but also the whole and intire trade and traffick to and from all havens, bays, creeks, rivers, lakes, and seas into which they shall find entrance, or pa.s.sage by water, or land, out of the territories, &c. aforesaid; and to and with all the natives and people, inhabitants, or which shall inhabit within the territories, &c."

The charter proceeds to grant the fullest powers for the government of the countries by the adventurers; every power, in fact, provided the laws in force in England were administered. And then it authorizes "free liberty and license, in case they conceive it necessary, to send either ships of war, men, or ammunition, into any of their plantations, forts, factories, or places of trade," "for the security and defence of the same." "And to choose commanders and officers over them, and to give them power and authority, by commissions under their common seal, or otherwise, to continue, or make peace or war with any prince or people whatsoever, that are not Christians, in any places where the said Company have plantations, forts, or factories, or adjacent thereunto, as shall be most for the advantage and benefit of said Governor and Company, and of their trade;" "and also to right and recompense themselves upon the goods, estate, or people of those parts."

Thus, the adventurers had exclusive rights of trade, exclusive possession of territories, exclusive powers of government, and the right to make war, or conclude peace.

By an Order of Council of 4th February, 1748, a pet.i.tion from one Arthur Dobbs, Esq., and from members of a committee appointed by the "subscribers for finding out a pa.s.sage to the Western and Southern Ocean of America," was referred to the consideration of "A. Ryder" and "W. Murray," who heard counsel for and against the Hudson's Bay Company, and finally decided that, "Considering how long the Company have enjoyed and acted under this charter without interruption or encroachment, we cannot think it advisable for his Majesty to make any express or implied declaration against the validity of it till there has been some judgment of a court of justice to warrant it."

On the 24th April, 1749, a Select Committee of Parliament reported, through Lord Strange, upon "the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there." The report begins by stating--

"The Committee appointed to inquire into the state and condition of the countries adjoining to Hudson's Bay, and the trade carried on there; and to consider how those countries may be settled and improved, and the trade and fisheries there extended and increased; and also to inquire into the right the Company of Adventurers trading to Hudson's Bay pretend to have, by charter, to the property of lands, and exclusive trade to those countries;--have, pursuant to the order of the House, examined into the several matters to them referred, and find the particular state thereof to be as follows:--

"Your Committee thought proper, in the first place, to inquire into the nature and extent of the charter granted by King Charles the Second to the Company of Adventurers trading to Hudson's Bay; under which charter the present Company claim a right to lands, and an exclusive trade to those countries; which charter being laid before your Committee, they thought it necessary, for the information of the House, to annex a copy thereof to this Report, in the Appendix No. 1. Your Committee then proceeded to examine the following witnesses:--

"The witnesses were Joseph Robson, who had been employed in Hudson's Bay for six years as a stonemason; Richard White, who had been a clerk at Albany Fort and elsewhere; Matthew Sergeant, who had been employed in the Company's service, and 'understood the Indian language'; John Hayter, who 'had been house-carpenter to the Company for six years, at Moose River'; Mathew Gwynne, who 'had been twice at Hudson's Bay'; Edward Thompson, who had been three years at Moose River, as surgeon; Enoch Alsop, who had been armourer to the Company at Moose River; Christopher Bannister, who had been armourer and gunsmith, and had resided in the Bay for 22 years; Robert Griffin, silversmith, who had been five years in the Company's service; Thomas Barnett, smith, who went over to Albany in 1741; Alexander Brown, who had been six years at Hudson's Bay as surgeon; Captain Thomas Mitch.e.l.l, who had commanded a sloop of the Company's; Arthur Dobbs, 'Esquire,' 'examined as to the information he had received from "a French Canadese Indian" (since deceased), and who was maintained at the expense of the Admiralty, on a prospect of his being of service on the discovery of a North-west Pa.s.sage,' 'and who informed your Committee that the whole of that discourse is contained in part of a book printed for the witness in 1744, to which he desired leave to refer'; Captain William Moore, who 'had been employed in Hudson's Bay from a boy'; Mr. Henry Spurling, merchant, who 'had traded chiefly in furs for 28 years past, during which time he had dealt with the Hudson's Bay Company'; Captain Carruthers, who had been in the Hudson's Bay service 35 years ago; Arthur Slater, who had been employed by the Company on the East Main."

It will be seen that one object aimed at in granting a charter to the Hudson's Bay Company was to further the discovery of the "North-west Pa.s.sage." Beginning in 1719, and ending, probably in despair, in 1737, the Hudson's Bay Company fitted and sent out in the whole six separate expeditions, which the Committee record in their Appendix, as follows (The instructions to the commanders usually ended, "So G.o.d send the good ship a successful discovery, and to return in safety. Amen"):--

_A List of Vessels fitted out by the Hudson's Bay Company for Discovery of a North-West Pa.s.sage_.

1719. _Albany_, frigate, Captain George Berley, sailed from England on or about 5th June. _Never returned_.

1719. _Prosperous_, Captain Henry Kelsey, sailed from York Fort, June 19th. Returned 10th August following.

_Success_, John Hanc.o.c.k, master, sailed from Prince of Wales' Fort, July 2nd. Returned 10th August.

1721. _Prosperous_, Captain Henry Kelsey, sailed from York Fort, June 6th. Returned 2nd September.

_Success_, James Napper, master, sailed from York Fort, June 26th. Lost 30th of same month.

1721. _Whalebone_, John Scroggs, master, sailed from Gravesend 31st May, wintered at Prince of Wales' Fort.

1723. Sailed from thence 21st June. Returned July 25th following.

1737. The _Churchill_, James Napper, master, sailed from Prince of Wales' Fort, July 7th. Died 8th August, and the vessel returned the 18th.

The _Mus-quash_, Robert Crow, master, sailed from Prince of Wales' Fort, July 7th. Returned 22nd August.

It must be observed that, in 1745, Parliament had offered a reward of 20,000_l_. for the discovery of the North-west Pa.s.sage. The Act was ent.i.tled "An Act for giving a publick reward to such person, or persons, His Majesty's subjects, as shall discover a North-west Pa.s.sage through Hudson's Streights to the Western and Southern Ocean of America." In the evidence before the Committee, varied opinions were given as to this Northwest Pa.s.sage. Mr. Edward Thompson, who had been a ship-surgeon, being examined as to the probability of a North-west Pa.s.sage, said, "He had the greatest reason to believe there is one, from the winds, tides, and black whales; and he thinks the place to be at Chesterfield's inlet; that the reason of their coming back was they met the other boat which had been five leagues further, and the crew told them the water was much fresher and shallower there; but where he was the water was fifty fathoms deep, and the tide very strong; the ebb six hours and the flood two, to the best of his remembrance; that it is not common for the tide to flow only two hours; but he imagines it to be obstructed by another tide from the westward; that the rapidity of the tide upwards was so great, that the spray of the water flew over the bow of the schooner, and was so salt that it candied on men's shoes, but that the tide did not run in so rapid a manner the other way." Captain William Moore, being asked whether he believed there was a North-west Pa.s.sage to the South Seas, said, "He believes there is a communication, but whether navigable or not he cannot say; that if there is any such communication 'tis further northward than he expected; that if it is but short, as 'tis probable to conclude from the height of the tides, 'tis possible it might be navigable; and it was the opinion of all the persons sent on that discovery that a north- west wind made the highest tides." Captain Carruthers said, "That he don't apprehend there is any such pa.s.sage; but if there is, he thinks it impracticable to navigate it on account of the ice; that he would rather choose to go round by Cape Horn; and that it will be impossible to go and return through such pa.s.sage in one year; and he thinks 'tis the general opinion of seamen that there is no such pa.s.sage." Mr. John Tomlinson, merchant, of London, said, "He was a subscriber to the undertaking for finding a North-west Pa.s.sage; which undertaking was dropped for want of money: that he should not choose to subscribe again upon the same terms; that he cannot pretend to say whether there is such a pa.s.sage or not, or whether, if found, it could be ever rendered useful to navigation."

The merchant witnesses were in favour of throwing open the trade of Hudson's Bay; and this Mr. Tomlinson said more ships would be sent, and more people brought down to trade. "This is confirmed," he said, "by the experience of the Guinea trade, which, when confined to a company, employed not above ten ships, and now employs 150;" and "that the case of the Guinea trade was exactly similar (to the Hudson's Bay), where the ships near one another, and each endeavours to get the trade; and the more ships lie there, the higher the price of negroes."

The capital of the Hudson's Bay Company, increased by doublings and treblings of its nominal amount, was, in 1748, 103,950_l_., held by eighty-six proprietors.

The trade between London and Hudson's Bay was carried on in 1748, and for some previous years, by four ships. The cost of the exports was in 1748 5,102_l_. 12_s_. 3_d_., and the value of the sales of furs and other imports in that year amounted to 30,160_l_.

5_s_. 11_d_d. The "charge attending the carrying on the Hudson's Bay trade, and maintaining their factories," in 1748, is stated at 17,352_l_. 4_s_. 10_d_. The original cash capital was 10,500_l_. That capital was "trebled" in 1690, making the nominal capital 31,500_l_.; in August, 1720, it was proposed to augment the cash capital, and to make the nominal total 378,000_l_. But at a "General Court," held on the 23rd December, 1720, it was resolved to "vacate" the subscription "by reason of the present scarcity of moneys, and the deadness of credit." And it was further "Resolved, that in the opinion of this Committee, that each subscriber shall have 30_l_. stock for each 10_l_. by him paid in," "which resolutions were agreed to by this Court." Anyhow, the capital in 1748 is stated at 103,950_l_. A trade which, by sending out about 5,000_l_. a year, brought back a return of 30,000_l_., was no doubt worth preserving; and even taking the outlay for working and maintenance of forts and establishments, there was over 8 per cent, on the nominal capital left, or probably 40 per cent on all the cash actually paid in; not too great a reward for the benefits gained by the country from this trade.

Some particulars of the regulation of exchange of commodities may here be interesting.