Governor Lawrence reported that he had induced the Assembly of Nova Scotia to pass a law, with severe penalties, against private trading with the Indians. The provisions of this act, however, found little favor with the Lords of Trade, by whom it was considered "an improper and unreasonable restraint upon trade." Their objection found expression in the proclamation of George III., at the Court of St. James, Oct. 7, 1763:-- "We do by the advice of our privy council declare and enjoin that the trade with the said Indians shall be free and open to all our subjects whatever, provided that every person who may incline to trade with the said Indians do take out a license for carrying on such trade from the governor or commander-in-chief of any of our colonies where such person shall reside, and also give security to observe such regulations as we shall at any time think fit to direct or appoint." The proclamation required the governor to issue such licenses without fee or reward, the license to be void and the security forfeited if the person to whom it was granted failed to observe the regulations prescribed. We have now arrived at the period when the first permanent English settlement was to be made on the St. John river, but before proceeding to the consideration of that event a glance at the general situation on the river is necessary. The only foot-hold the English had as yet obtained was at Fort Frederick on the west side of St. John harbor. A considerable number of Acadians still lingered furtively in their hiding places up the river, the majority of them near the Indian village of Aukpaque. For their benefit, as well as that of the savages, the missionary Germain desired to remain at his post. He accordingly made overtures to the Nova Scotia authorities to be allowed to continue his ministrations, promising to use his influence in the interests of peace. To this proposition the Governor and Council cheerfully assented, promising the missionary a stipend of L50. A year or two afterwards he wrote acknowledging the receipt of his salary and stating it was his desire to inspire the Indians with the respect due to the government. He complained of their irregularities and says that in spite of his efforts to promote harmony he feared "they will shortly pay no regard to what he says."