"Along with this I send you a letter which, though marked private, treats only of our affairs, in such a manner that it may be laid before the Duke of Newcastle. It ought, I think, also to be laid before Sir Edmund Head, and I shall refer him to it for my views. It is very important that _the whole_ of Johnstone's letter, and of my account of affairs at Red River, in regard to the Corbett riots, addressed to the Board, should be read along with the above letter. I do not think that we can ever make anything out of our lands, [Footnote: Experience has shown that this was an error.] and I am therefore strongly of opinion that they should be transferred to the Government upon certain terms, excepting only such lands around our forts as may be necessary for our business, and our farms, &c. in actual occupation. "Although a great outcry has been raised against us on account of our being a 'stop in the way,' and enjoying a monopoly of trade, the cry is groundless. It may, therefore, be well for you to know that for a number of years past we have enjoyed _no monopoly_ of trade whatever, and that there is no impediment to the settlement of the country by any one who pleases. A settler may squat wherever he thinks fit, without question, or being called upon to pay for lands yet unsurveyed, and of which the Indian titles are not yet extinguished. The small portion of surveyed land in the district of Assiniboin has been all long since occupied, though not paid for. With a recognized Government, there would be no difficulty in obtaining payment for these lands from the occupiers. "In erecting the telegraph, the Indian titles to the land ought to be extinguished by annual payments; but the absence of a recognized and respected Government will be of itself a great bar to the successful erection of the apparatus, and the preserving it and the various stations in good order. Though, by increased energy and supervision, the fur trade _may_ for a time be maintained, yet you must not _count upon_ increased profits, as with the opening up of the country the furs are costing us more, and many of our posts are so distant that they cannot, from that and a variety of causes, be placed all at once upon a proper footing, and it is very difficult to exercise a proper supervision over them. It behoves the Company, therefore, to look out for other sources of profit. One of these is that of banking operations, both here and at Red River, and probably also at Victoria and at St. Paul, or other suitable locality in the U. S. On this head I may again address you from Red River, and Mr. Hopkins will afford you every information in regard to the prospects at this place, which are represented to be _very great_, when you come out in September. "I am just about starting for Lake St. John's on the Saguenay River, and shall be absent about ten days. Upon my return I shall be ready to return to Red River--say, about the 1st September.