Competition and interracial tensions between European Americans and non-white miners erupted on Christmas Eve 1858, with the beating of Isaac Dixon, a freed American black.
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Its potential to provoke United States annexation ambitions within the goldfields, prompted the governor to send newly appointed Chief Justice Begbie, the colony's chief of police Chartres Brew and a contingent of Royal Engineers and Royal Marines to intervene.
Moody was also a Colonel in the Royal Engineers, and was the commander of the Columbia Detachment, the force that was brought to BC to establish British order during the Fraser Canyon Gold Rush.
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Discovery of gold in the Queen Charlotte Islands in 1850, and then in the Thompson Country and Fraser Canyon in the later 1850s, led to wider encroachments and exploration by whites far beyond the locus of the Fraser Canyon Gold Rush of 1858-1861.
The Lytton First Nation figure prominently in the history of the Fraser Canyon Gold Rush (1858-1860) and of the associated Fraser Canyon War (1858).
It was in this area that the first major gold finds of what would become the Fraser Canyon Gold Rush were found, and the first quarrels between First Nations miners and American miners began, which would culminate in the Fraser Canyon War of the fall of 1858.
A former member of the San Francisco Committee of Vigilance, physician Max Fifer, moved to Yale, British Columbia at the time of the Fraser Canyon Gold Rush, and participated in the organization of a Vigilance Committee on the Fraser River in 1858 to address issues of lawlessness and a vacuum of effective governmental authority created by the sudden influx of goldseekers to the new British colony.
The chief of the Spuzzum in 1858, Kowpelst ("White Hat") was one of the first to work Hill's Bar at the onset of the Fraser Canyon Gold Rush and was considered a "friendly Indian" during the Fraser Canyon War of that fall between the American miners and the upstream Nlaka'pamux of Camchin.