The Sun. — 1858-10-18 (London, England)

THE BRITISH GOLD DIGGINGS.  (From the Panama Star.)  Our dates from Victoria, Vancouver Island, are to the 27th August ; and from Fort Hope, Fraser River, to August 23. The principal item of news is the threatened breaking out of a serious war between the Indians and the miners. Ever since the white men have invaded the Fraser River country, they have been made to submit to various annoyances and outrages from the savages. These have become more and more frequent and unbearable, and lately not a few white men, who have been caught at a distance from the large camps, alone or in small parties, have been murdered. T 9 protect themselves the whites at Fort Yale enrolled into two or three companies, and started out into the Indian country to fight, or awe the savages to making a peace. A few days after they had left Fort Yale (on the 18th August) a report reached that place that one of the companies had been surprised at night by a large body of Indians, and that all but one or two had been inhumanly butchered. This news created immense excitement among the miners all along the banks of the river, and in Victoria, when the account of the massacre reached there. The miners held meetings, memorialised the Governor for arms, organised companies, and prepared themselves for a war of exterraination. Many were disposed to censure the Hudson's Thly Company, and the most serious difficulties Were apprehended all around, While matters were in this posture, news came in that the account of withe. wholesale massacre of the white company was  true. out had hadsucceeded found the Indians peaceably .dihspos The companies that had in effecting a treaty wit them. While one of the died, rtanedd companies was subsequently camped out for the night with their new Indian friends, a war party of savages, who had not heard of the treaty, returned, and seeing the whites around the campfire, discharged a volley at them, which killed the captain, one Graham, and his first lieutenant, outright, and wounded some of the men. The friendly Indians at the camp succeeded in signalising the attacking party to desist, when explanations were made, and sorrow expressed for the mistake. This was the foundation for the story of the massacre. Since the formation of the treaty no outrage had been committed. But as the presence of the miners on the bars and banks of Fraser River interfere with the salmon fisheries, which are the chief depe deuce of the savages for food, it is certain that serious difficulties must hereafter be continual between them and the miners.  The mining news from Fraser River is still unsatisfactory. The river at latest accounts was too high to allow of profitable .working by a majority of the miners. Some " dry diggings' have' bean discovered near Fort Yale, but what is their richness or their extent is not yet known here. Considerable excitement had also prevailed at Victoria' concerning some reported gold discoveries on Vancouver Island, north-west of Victoria from five to 25 miles. As many as a thousand p;eople had rushed there and " staked off claims ;" but the latest accounts represent the whole thing as a humbug. Gold was found in minute pr.aticles, but not in sufficient quantity to pay tlar. -diggers. Business -was very dull at Victoria, trad property there had greatly depreciated in valw%. A few of those who went up to Fraser River., and a large number of those who proceeded no further than Victoria and Bellingham. I: Bay, have "feturned to California.  ---,------F17.E.,, AT