was able to procure quarters on shore. One month was spent in Panama waiting for the steamer. I saw Colonel Mason at Monterey as we passed, and learned from him the arrival of Brevet Major L. P. Graham's command, of about 270 men, at the Pueblo de Los Angeles. The force in this department consists of his command, of Captain Burton's company 3d artillery at Monterey, and of Captain Smith's company 1st dragoons at the Presidio of this place. The larger portion of these latter corps have deserted to go to the mines, and it is presumed that nearly all the rest will follow as soon as the season permits them to live on the hills where the gold is found. The rate of pay paid to the enlisted men is so much inferior to that earned by common laborers here, that the temptations cannot be resisted; and to employ the men still remaining in searching for the others, would be to lose them also. As some inducement to stay, in order to secure protection to the public property, I have authorized the quartermaster to give the same wages to soldiers who have leave of absence from their commanding officers as he gives to laborers. But I yesterday saw the latter refuse eight dollars a day. This is not more owing to the scarcity of labor than to the extreme plenty of gold and the facility with which it is procured. I think it probable that the troops expected to arrive will be affected in the same manner as those now here; for, though the influx of population will be great, the quantity of gold taken will be greater in proportion, so that little benefit can be expected from them. I propose to place the greater part of the 2d infantry in the southern part of the Territory, as furthest removed from the mines, and near the frontiers; its headquarters at San Luis Rey, where the buildings of the mission are most commodious, and the country most abundant in supplies of forage and food; to garrison San Diego, Warner's Pass, the outlet to Lower California, and Sonora; and as soon as possible to establish a post at the mouth of the Gila, not only to facilitate travelling to and from New Mexico, but to prepare for the boundary commission. San Luis Rey is well situated to communicate with these places, and to supply them. But the post at the Gila should be supplied by the gulf of California as soon as the proper kind of vessels can be procured, viz: those of light draught. A company of artillery will be stationed at Monterey, where there is a temporary work, and one near the entrance of this harbor, to control the vessels trading at these places. I have directed some of the heavy artillery now here to be placed in the old battery commanding the entrance of this bay. No work will be done except laying the platforms, as the site of this fortification will most probably have to be cut down in regularly fortifying the harbor. I shall put two companies of infantry and one of cavalry at some point near the bay, above the district infected by fogs in the summer-the point to be established in a visit I shall make in a few days. From their position, they can be moved either by land or water towards the mines, and among the Indians north of San Francisco, some of whom it is represented are dissatisfied with the treatment received from the whites. I would recommend that no great expense be incurred for storehouses, or other permanent constructions of the kind, until the whole neighborhood be examined. The harbor at Yerba Buena is a very inconvenient one-the sea too rough three days out of seven to load or unload vessels; and the town of San Francisco is situated at the extremity of a long point cut off from the interior by an arm of the bay more than thirty (30) miles long, having no good water and few supplies of food. The road along the bay-the only one reaching this place-is intersected by streams that render it now nearly impassable. I am without any returns from department headquarters since my arrival. I have no observations to make in relation to the gold region of this country, as all my knowledge on this subject is derived from others, and principally from officers who have communicated directly to the War Department. But from what I have seen here, I have no doubt that everything thus communicated has been, if anything, short of the truth, as new discoveries are daily adding to the extent of the mining district, and to its productiveness. Referring to the President's message, and to the letters of the Secretary of State to Mr. Voorhies of the 7th of October last, and that of the Secretary of War to Colonel Mason, dated October 9, 1848, and the circular of the Secretary of the Treasury, dated October 7, 1848, to the collectors of the customs, I have assumed as the opinion and decision of the government that the government existing in Upper California on the 30th of May last was a government de facto, which must from necessity be presumed to have existed and to continue with the consent of the people; for, as the "full and exclusive power of legislating for the Territory is in Congress," the only other alternative would be anarchy, until Congress shall act: that the laws of Mexico formerly in force in California, and not repealed on that day, nor contrary to the laws, constitution, and treaties of the United States, remain in vigor: and that by the treaty with Mexico California became part of the United States, and subject to the laws of the United States. I therefore recognise this government de facto as the government of California, and its acts as lawful, and recognise the force of Mexican laws remaining in vigor, and cannot recognise any other government or laws until established by Congress or its authority. Consequently, the laws of the United States in relation to trespassers on public lands, in cutting timber, mining, &c., are in force, and should be executed. But as Congress have made distinctions in favor of citizens who brave the difficulties of emigration and the wilderness, and settle on public lands, bringing their value into notice, and settling an uninhabited country, these penal laws should not be enforced against them until the pleasure of the government be known. But as to bands of foreigners, who, without any intention of settling in the country, have flocked here by thousands solely to gather gold from the public lands and carry it away, where none of it will ever come to the United States, these reasons for consideration do not apply; and I shall, as soon I can, endeavor to enforce these laws, depending on the citizens of the United States for aid in doing it. I enclose a copy of a letter I addressed to our consul in Panama, with a view of advising foreigners of the offences they were about committing. It is evident, our revenue laws being in force here, dutiable goods cannot be brought in unless they pay duties, nor landed but at a port of entry; and, there being no port of entry in the Territory, and no collectors appointed, all such goods must be sent away. But as many vessels come from Europe-a long and expensive voyage-and there is no port of entry or collector yet on the Pacific, except those in Oregon, and those not yet ready, and as the people of this Territory are suffering for the want of supplies, I have instructed Colonel Mason, that, though no duties can be exacted from any vessel, or on any goods, yet, if the parties interested prefer it, rather than go away, to their entire ruin, and the inconvenience of the people here, they may deposite the amount of duties and fees payable in ports of entry, subject to such disposition as Congress may make of them, and land their goods. I have also concurred with Commodore Jones in permitting foreignbuilt launches, owned by American citizens, fit for the navigation of the. bay, to convey passengers and goods to the interior, as many persons are in great suffering here, having no houses to cover them, and there are no small vessels of the proper class built in the United States to carry them; and in permitting foreign-built vessels to be taken to the interior, to be dismantled and used as warehouses, the scarcity and price of lumber rendering it impossible to build. Lumber sells at $600 per thousand feet. All those modifications of laws, however necessary, can only be temporary. It would, however, be just, before enforcing rigidly our revenue and navigation laws, that other nations should have due notice of this peculiar state of affairs here, which cuts off their commerce with the United States. The steamers running between this place and Panama are not provided with coal. On our arrival here in the California, we had not two hours' fuel; and there are no depots this side of Panama. The crew of that ship, engineers, second and third mates, and servants, have all deserted for the mines; and she now lies here, with the captain, first mate, and purser on board. No dependence, therefore, can be placed on the punctuality of this line; and if the route across the isthmus has not been improved, as soon as the rainy season comes on, in May, it will no longer be passable for officers to reach this place by Panama and the steamers. For the troops and public stores many public buildings will be necessary. These should all be prepared in the United States, and sent around the cape, with persons to put them up, engaged by the contractors who furnish them. Mechanics cannot be kept here who are brought out by the quartermaster's department. The wages of a good carpenter here are more than the pay of the major general commanding the army. I would earnestly recommend that the commissary's department be instructed to send here, and sell at the prices of the eastern States, all the articles of food necessary and usual for the officers and their families. They will all undoubtedly be ruined here, but they should not also be starved. After I shall have visited the country, I shall report in detail, from my own observation, in relation to all points of interest. I enclose, besides the letter to the consul at Panama, copies of division orders from 1 to 5 nclusive, special orders Nos. 1 and 2, and copies of all letters written since my arrival here. I have the honor to be your obedient servant, To Brig. Gen. R. JONES, PERSIFOR F. SMITH, Brevet Major General, commanding. Adjutant General U. S. Army, Washington city, D. C HEADQUARTERS THIRD DIVISION, Panama, New Grenada, January 14, 1849. SIR: By direction of Brevet Major General Smith, I have the honr hereby to inform you that you are authorized to retain in service of the quartermaster's department Messrs. R. M. Heath and Lloyd Brooke until their arrival in California, or as long as may be deemed convenient to the public service-said agents having proceeded from the United States in the employ of the late Captain E. G. Elliott, assistant quartermaster, their services being highly important to the service, and no means being available at hand for their return. I am, very respectfully, your obedient servant, ALFRED GIBBS, Lieutenant Riflemen, Aid-de-camp, and A. A. A. Gen. To Brevet Major FITZGERALD, Assistant Quartermaster U. S. Army. HEADQUARTERS THIRD DIVISION, San Francisco, California, March 6, 1849. SIR: We arrived here the morning after leaving Monterey, and I have found everything here entirely on the extreme of speculation. Labor cannot be procured but at the most exorbitant prices, and materials hardly at all. Nevertheless, some work must be done towards mounting some pieces at the entrance of the harbor, and preparing for the troops coming by sea. I propose to mount six pieces at the point, viz: four 32-pounders and two 8-inch howitzers, to repair the buildings at the Presidio, and to find quarters, if possible, for a troop of horse at Sonoma. When the necessary orders are given for these, I will give at once a copy to Captain Folsom, that he may begin at once his preparations; for the work must be done by hired laborers. It will be well for Captain Smith to give short leaves of absence to his men, and for the quartermas ter to hire them. This would be some encouragement for them to remain. They have already begun to desert. I have said to Mr. Harrison, the collector, that as this is not a port of entry established by law, there is no obligation to prevent foreign vessels from discharging at other points on the bay, where the inhabitants think commerce will eventually establish itself; that, as much may depend upon the start given to a plan at the beginning by restrictions put upon its rivals, it is best to be perfectly impartial, to afford an equal chance to all, and thus to allow a free choice to those engaged in trade to select a spot for its depot, and to furnish to Congress evidence upon which it can found its legislation in fixing the ports of entry. To avoid multiplicity of accounts and modes of collection, there can be of course but one custom-house and one collector, which are established and must remain at San Francisco; so that all vessels must enter and pay their duties here: but an inspector of the revenue can accompany each vessel to its place of discharge, and see that the laws of the United States are not infringed. Those vessels that go up the north branch of the bay can anchor near Sansolito until they are entered and the duties paid, and then go up without coming round this way. As there is no law making this a port of entry, I presume Mr. Harrison can regulate this matter himself. I imagine it will be found necessary to bring some more troops in this neighborhood than I at first expected. Two companies of the second infantry will be stationed somewhere near above the influence of the fogs; the company of artillery at the Presidio; the cavalry at Sonoma. They will require some additional inducements beyond their pay to prevent them from deserting. Such may be given by authorizing the quartermaster to employ them on the public works. If we can thus keep them through the mining season, they will remain next winter; and in the spring circumstances may be altered. The headquarters of the second infantry will probably be best at San Luis Rey, as you suggested, with posts at San Diego, Warner's Pass, and the mouth of the Gila. You will want a company probably at Monterey. Will you be good enough to let me hear from you on these points, and I will issue an order and send it to San Diego to meet General Riley, in case he arrives there first. With respect, your obedient servant, Colonel R. B. MASON, PERSIFOR F. SMITH, Brevet Major General, commanding. 1st Regiment Dragoons, commanding Tenth Military Department, Monterey, California. HEADQUARTERS THIRD DIVISION, San Francisco, California, March 7, 1849. SIR: You will please cause a government horse, now in charge of 1st Lieutenant W. T. Sherman, 3d artillery, acting assistant adjutant general, to be foraged and kept for Lieutenant Sherman's service at the Presidio of San Francisco. I have the honor to be your obedient servant, PERSIFOR F. SMITH, Brevet Major General, commanding. Captain J. L. FOLSOM. HEADQUARTERS THIRD DIVISION, San Francisco, California, March 9, 1849. SIR General Smith directs that you deliver to John Adair, esq., collector of customs for the district of Oregon, thirty-six (36) blankets, taking his receipt for the same.. I have the honor to be your obedient servant, W. T. SHERMAN, 1st Lieutenant 3d Artillery, A. A. A. General. Captain J. L. FOLSOM, |