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The gold industry is not charged with a royalty as is customary in other gold-producing countries, but with 5 per cent. only upon the net profits; but here an intolerant and corrupt domination proves much more prejudicial than a heavy royalty would be. Proper representation would be the remedy and afford contentment, even with higher taxation, but that is refused upon Bond principles.

The tundra, which is nothing but the old beach, follows the present shore, and is fully as rich as the surf-washed sands. More productive and larger than all is the inland region traversed by rivers and creeks that form a veritable network of streams, all bordered by gold-producing soil.

Governor Young adroitly turned the discovery of gold to the advantage of his own colony by establishing an escort between Bendigo and Adelaide; and, as this was remarkably well equipped, many of the diggers sent their gold by this route rather than to Melbourne, thus giving to South Australia some of the advantages of a gold-producing country.

Let us close this chapter with one last topic. To the right and left of Darien flow about a score of gold-producing rivers. We here repeat what has been told to us, and about which everybody agrees.

Deas Thompson, the then Colonial Secretary, afterwards told Hargraves in discouraging his reported discovery, "You must remember that as soon as Australia becomes known as a gold-producing country it is utterly spoiled as a receptacle for convicts."

After this scene of devastation was passed, the highway led the riders along the bank of a stream, on both sides of which smelting works had been erected, as this region is rich in gold-producing ore; but nothing except charred ruins was now left of the buildings. At intervals a deserted mill was passed, its wheel still turning idly under the impulse of the tireless stream.

Here again no modern researches seem to have been made, and nothing more is known than that at present the natives obtain no gold from their soil, do not seek for it, and are even ignorant that their island was ever a gold-producing region.

The small quantity of gold hitherto produced about eight hundred ounces by the large native population of the country is, however, unaccountable in a rich gold-producing country, unless we assume that the want of skill, industry, and proper mining tools on the part of the natives sufficiently account for the fact.

Until the value of the country as a gold-producing region be established on clearer evidence than can now be adduced in its favour and the point will no doubt be decided before the close of the present year I would simply recommend that a small naval or military force should be placed at the disposal of this Government, to enable us to maintain the peace, and to enforce obedience to the laws.

Passing along the coast of California, it gives passengers an opportunity of either settling there, or continuing their journey to British Columbia. That this is no unimportant advantage, will be at once conceded when it is borne in mind that it is not the gold-producing country on the Fraser River alone that offers strong inducements to emigrants.