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EXECUTIVE DOCUMENTS

THE lOUSE OF EEPEESENTATIVES

SECOND SESSION OF THE THiaTY-FIFTH CONGRESS,

1858-'69.

nf THIRTEEH TOLVMEfl.

Tolnme 1 Noa. 1 ud 3,

VoIbdm S No. t, porta 1, B, 8, 4, and 6.

Yolnme 3 No. 4 to No. 19.

VolvDM * Ho. It to No. ti.

VolntDB S Ko. 25 to No. *9, except Ko. 53.

Tolama 11.......... No. 33, qaarto.

Volnmo 7 No. 60 to So. M.

Volaina 8 . No. SB, quarto.

Volvme 9 No. sa to No. 108, except No. 106.

TolnmelO No. lOS, puts 1, S, 3 and 4.

Tolumell No. IM.

Volnmell No. 110 to No. 114.

Tolume 13-...........C0Mine«» and Navigation.

WASHINGTON:

JAHKS B. BTSEDMAN, FRIHTEB.
1859.

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THE EXECUTITE DOCUMENTS

HOUSE OP EEPRESENTATTVBS OF THE UNITED STATES,

THE BEOOND SESSION THTBTT-FIFTH <X>KORES3.

TO. Pn. Doe.

Aooomils of tbe goTCfninent for tbe yew cadlDg Jihm SO, 1858.
letter 4rf tbe TreMnnr oT tbe United Btktet, trM.niiitlliiK %
ctklemeiit of tlie . .

AoonintB with oertaai Btktei and dtiea. Letter of tbe Secretwjr of
the Treeaqry, relcUve to the Tec^eolng and re-esamlnlng
■etthnnenta heretofore made of .

Adjntact General for tbe nrrfoe of the aimy dmiog the jeu
ending June 3D. 1860. Eatlmatca of the...

Adjotant Oeneral of the United Btatei ocinj dnrlng the year end-
tng Jnne 30,1868. Report of the

A4)<ilant Oenend of tbe United Statea annir, of tbe nnmber vt
lecralta for tbe am; enllated during the year ending Jone
30, 1858. Beportofltae

AMc» daring t>ie year ending September 90, 1868. Btatemente of
tbe commerdal relatloDB (rf the United Statea with

African aqaadron rinoe the ratlflcaUoD of the treaty of 1842.
Inatmctlant to tbe oonunandeia of tbe

AWoaim bito the State (^ Oeorgia or any other Blate of this Union.
Ucaaige of the PretMent of the United Htatea, relatlTe (o
the importatian of . ...... . ...

Agticaltore and agricultural aUtditlta fer tbe year 1858. Bepmt
of tbe CommiBicMMr of Fatenta on .......

AgricnltaFe of the FUent OBke. Letter of the Beoretary of the
Interior, (nnamitOng infotmatlon reUUTe to the Adviiory
Boaniof

Alexaoder, aa to tbe relatlTe *alae of the oolnage of the United
Btatea and Qraat Britain. Letter of the Seeretary of the
Iteaanry, bannnltUng tbe rvport c4 Profenor.

Amerifan aeamen regiatered in tbe MTentl porta of the United
SUtea dnrlng the year ending June 30, 1858, Letter of
the Secratary itf State, trauRnlttlng an alatract of the
return* <rf ,

Amerkani from Victoria to Ban Franolaoo. Letter of the Hecretary
of State, acklng an appropriation to defray espenaea tor
traniporting deatltnle ... .

American dtiaem In tnnilt over the eereTal rontee through Central
America. Heaage ot tbe Piealdent of the United SUtea,
rdatlTB to the protection of ........ . ............

TiU«.

VM.

Pin.

1>«

Phk.

AmeTican veueU bj officer. oT the Britbh navy. Mmnfce of the

■3

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4
7
1

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9
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2
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1
3

3
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3

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.1

1
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15
B4
2
85
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3

1
2
2
2
I
2
2
2
2
I

]

2
2

ApproprintioDB for the Btcti jeu endiog Jane 3D, ISCO. Beport of

AppropriKtioDR, specific aod indcBaite, which aaj ba required for
the Krvlce of the last three quarter* of the OKal year end-
JaQe 30, 1859, made b; former acta of CoagrcH. BUte-

Aquedupt dnring the year eodins Jtrne 30, 1868. Report of the
1868 StatemenU of the commercial relatlotu of the United

89S

J m

Arkaniat fbr the year 186B. AoDtial report of the mrTeyor gen-

Armorlea during the year ending June 30, 1888. Btatement of

tar; of War, traiumitUjig a statement of the expeiuea of

Btatee during the year 18fi8. Abetnwt of the return, of....
Arm. dlntributed to the leTeral Slalce and Territories during the

Amy on the lit July, 1868. Statement of the actual strength of

Arm; duHitg the year ending June SO, 1880. Eatimatea for ap-

2*7

223

Army In the department of New Ueiloo June 30, 1858. State-

278

Army In the department of the Pacific June 3D, 1868. Statement

8a0

Army during the year 1868. Beport of the Commanding Oenerai

June 30, 1S58. Annual report of the Adjutaat Qeoetal of the.

.76*

June SO, 1S6S. Annual report of Iha TaymMter OenenJ of

June 80. 1858. Annoal report of the Surgeon General of

Army during the year ending June 30, 1858. Stitemoot of the

807

Armj, of the npentioua of bit deportmeat daring the jeu ending

Jddc 30, 18S8. ADQUftl report of the Coluoel of Engineeie

of the

Anny, of tiie opentUons of bis drputmeot, iind the oondiUon of

the hkrbon on the northern and wenlrm lakes and riven,

•nd military roade, unring the year 185)t Anniul report

of the Colonel of Topograph ioU Engineer! of the

Annj, of the opeiatfoni of hia department daring the year ending

Jnne 30, IB5B. Annual report of the Colooel of Ordnuice

of the

AnnjBrgiiter for the year 1BS9. I«tt«r of the Secretary of War,

traiuiDlttlog copies of the...

Amy Befi'^tcr for the year 18SB. Letter of the Secretary of War,

transmitting tianscilpt of the

Aiaenal Keport of Major RxniBay rcEpecUiig the condition of the

woTkihops at the Wuhlo^tloii

Anenab daring the year ending June 30, 1858. Statetnent of the

principal operations at the national

Arta and Uanufacturei for the year 1858. Report of the CommlS'

sJODcr of Patents on .

AMay office of the United Utatta. at New York, from ISJi to I8SS,

incln^TB. Statement of value of bare at the

Aaylam for the year 1868. Bepoit of the Commlssionera of the

Hllltaiy

Attorney QeuenI, at to the condition of the public bulldintn a

Philadelphia. Reports of the Poatmaster Oeneial, Secretary

of the TVeaaury, and- -

Auditor of the IVeosnTy, of the operaUons of his office daring the

year ending Jnne 3D, 1868. Annual report of the First

Anditor of the Treaaury, of the operations of his office daring the

year ending June 3D, 1808. Annual report of the Second...
Auditor of the l^sasury, of the operations of his office doriog the

year ending Jane 30, 1858. Annual report of the 'Hiiid

Auditor of the Treasury, of the operations of hie offioe dnriog the

year coding Jane 30, I8GS. Annnal report of the Fourth...
Auditor of tlie TVeasory, of the operations of hie office dniiug the

yeu ending Jom 30, 1858. Annual report of the Fifth

Auditor of the I'TMsary for the Post Office Department, of the

opemtlonsofhla office during the year ending June 30, II

Ananol report of the Sixth . .... ..

Auditor of the Tntasory. transmitting oo[dea of the accounts of the

dleburtementa made for the benefit of the Indians daring

the year ending June 3D, 1868. Annual report of the Second.
Auditor of the Treasury, on the subject of claims growiug out of

Indian hoatitltles in Oregon and Washington Territories.

Letter of thR Third

Anabria during the year endlDg Septembur 30, 1838. Statemeata

of the commercial rclatloos of the United State* with..

.1011
130ft

Balaiicea of approptlattons fbr the service of the nayy on the 1st of

July, 1858. Statement of the

fialaitcai of the coniiogoit fund of the State DepartmeDt retaatnlDg

OQ (he 30th June, 18G8. Statement of the

Balaticea of appropHations to the credit of the Interior iieputmiiut

oa June SO. 1858. Statement of the.. .. .......

Bdanoea of appropriations to the credit of the War Department oi

July 1,1858. Statement of the

BdUmore, Uaryland. Letter of the Secretary of the l^eotury, rela-

tiTe to the oonatraclioa of a court-house In the dty of . ..
Buib o( tba dUIerent States. A synopsis of the tetums of the ..

™.

Dim

Pm<.

Bank! of the difierent Btato during tb« ;e«ri I8fi4-'G&, IS&O-'St,

f'
f-

1
3

-t;

3
112

3
44
lU

74
3

74
I

BookB 01 the Unltrd tjtales. accardiog to returns Deanwt to Jamur;
1, 1834. 1B3B. 1836, I8SI. 1S38, 1839, 1840, 1841, 1842,
1843. 1844, 1B4S, 1846, 1847, 1S48, 1849, 18&D, I8S1, 1BG4.
1855, 1066, 1857, aod 1858. CompuHtive y\ew of the con-

Buiki or the UQited StAtee. Report ot the Secretwy of the TreM-

Banrndu and qnaiterebrtbi'arinr during th«lHt ten jrcin. Ut

BftTiria during the jeu ending Srptember 3D, 18^8. Statement!

of thB oomraerdal reUliona of the United Statei with

the commvrd*! relftUons of the United KtatM with

Banntj Undi, DDdcr the »evem1 acts of 1847, ISAO, I8SS, and 1855
during the jen ending Heptwnber 30. 1858. Btatemrat of

311

1 58S

406

Bcudle* imported during the jean 1856-'a7 and 1858. SUtsment

1 407

UritUh UoluuibU. UeMage of the fr. lideni of the Dnited HUIm,

Britiah pTOTlacei bf the conenl general and their fees returned to

Ballion imported and exported nDTitiall; from ISSl to 1858, inclu-

C.
Callfctnia for the j«r 1858 Annnalreport of iheiarvejor general

Cwftul extend^n and noonHtruoUKii of the dome dnriing the year

Cannlck aod Rtumwy Mewnga of the President of the nnited

Carmlck and Umtamj claim. Henuie of the President of the Dulted
ai.d Juwph Wllli^B, la reUUon to the decision apon

CeoiQB of the United SUtet LetUt of the Secretary of the Inttt-

Td. Put. Ddc,

CeiHDi of the IWrltoi; of Kmuh. Lett«r of tiie Swratur of the
iDteriOT, tmuBinlUliig «i «*tlm«te for taking the..

Central Aroerlcs. UeMnge of tbe President of the United State*,
relative lo the protectjon of Amerloui dtlnm in truult
over tbe wrenl rontei throngh .....

m.-pi.i|.. in ^e n^Tj. Letter of the Beorat&rj of the NaT;, tmw-
mitfing loibrmatlali In regaid to the .. .....

Chidmwv Indius. Btatement of etocki held In trnet for the
henefitif Oie

ChkkMBir tnut fatid during the fear ISM. Letter of the Becn-
tarj of the Treettirj, tranamlttiDg a statement of the le-
eelpti and espendltom of Uie

Chni during the year ending Saptemlwr 30, 18S8. Btaleoieatt of
the Dommercial relattoniof the Unlbxl Htatea with ..

Chink. Heaage of the PretidenI of the Utiited Statw, traamlt-
ting a oopj of (ho regnlatlona adopted by the United
Btatca mhibtoT for the goremnunt of the oonanlaT oooHs
In

CUnft dmlBg the year ending Beptember 80, 1866. Btatementa of
the conunerdtl relatliwe of the United Statee with

Clvfl Uet (or the year ending Jane SO, 1860. Sitlmatw of appro-
prlaliona for the .....

daiiDi made dnrlng the jcai ending Jane SO, 18S8. Letter of the
Becretary of the TreaRirj, trantmltttng a Btatament of the
payment* made for miacellaneoiui

Clerhi and other penona emplOTed in the Department of State da-
ring the fear 1868. Btatement of the namea and com-
peniatloD of the .....

Clerka and other penoQi emplofed In the I'reaaary Department
dnring the year ISM, btatement of the itamee and oom-
peneation of the—- ....

Cleika and other peraone employed In the Departmmt of the Inte-
rior doling the year 1B&8. Statement of the unmber
and aimpenmlUm of the., . .....

(Setfca and other penona employed in the Poet Office Department
dnrlng the year 1S58. Btatemcnt of the nnmber and «am-
penBllon of tbe

Gerkc and other person* employed in ihe Navy Department dnring
the year 18SS. Statement of tbe noaiber and oompenM^
timof the

Clerki and other peieoni employed in the War Department dnring
the f MI 1808. Btatement of the nnmber and compenia-
tlt,n of the

Goal oaed by the nary, namei of agent*, ud amonnt paid tbent as
commiaiione. Letter of ttie Secretary of the Navy, trans-
inittiug a etatement of the qnantity of .

CeaaUng trade. Letter of the Becnlary of the IVeaniry, rtatlng
tbe reeaon for the non-oompiiano* with the joint tmoIh-
tlonof Hay li, 18H, relattve tortttlttioiof the

Coart PDrey of the United 8UI«p dnring tbe jtti ending Jnne
30, 1860. Bitlmalee fen' appropriatiom for Ute oontinDa-
Uonof the

CoMt Bnmy, thowing the nnmber and namea of penona ei
on Ihe Coaat Surrey. Beport of tl

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CoMtSoTTej-

No. 1.

Ho. 8.

Ho. 3.

No. 4.

No. 6.

N«.%.

Ho. T.

of the Dnlted Btatea—ContiDiied.

Paptn aceotupanying Ou laid report
IMitiilmtloii of (he pMtiee of tho CoMt Sorrer upon

the cowtfl of the United State* during the soive;-

Ingieaaonof ie57-'E8

list of uiny offlcen onCouit Burrqr doty, Haroh 1,

1868

Lift of army ofBceis od Coait Sorrey doty, Saptem-

ir l,li

Ho. 1*.
No. IB.

IM of mvy offioen on Cout Snrvey duty, Hmrch 1,
1868

Iitet of iMTy olBoer* on Cowt Sorrey duty, Septem-
ber 1,1868

Ltet of InformaUoa faruiabed during year 185T-'68,
Dodet the aDthorfty of the Treaaniy Deportment.
Uat of G^kea, heMUandi, iilanda, haibon, and mi-
clioragMon theweitemcoAttof the Dnlted States,
of which elUiei topogniphlcal, hydragn{ihic, pie-
llmlnary, OTGonpletenuTeyehave bMn made, e

mapa, charti, or Bk«tcfaea fMoed...... ....

Btatiatica of field and office work

General lilt of Coast BnTvey diacoTeriea and develop-

meoti to 1B6T, indDaive . .

Letter of the Superlnlendent to the Secretary of the
Trewary, rommniilcating data for the podtion,
and dlrecttona for cleaiiog a dangerous rock off
the entrance to Porttmoatb, N. U., developed by
the examination of Lieut. Comd'g Alexaodar

Hnmiy, Doited Btateanary

I«tter of the Saperlntendeut to the Secretaiy of the
Treunry, traDtmlttiog the recommendaUon of
U«nt. Comd'g W. O. Temple, D. 8, N.,foTabuoy
on tbe aand-plt recently formed at the tODtbem

end of Sanken ledge, Boston harbor... ...

Litter of the Bvperlntendent to the BecrMary of the
TnuwDry, communicating the potitlon of two
points of rock aouthweat of the light-bovss near
New Hareu, Conn., aa determined by Llent.

Comd'g W. 0. Temple, D. 8. N

BepoTt of Uent. Comd'g T. B. Hnger, D. 8. N.,
ahowiiig the reanlt of comparisons of the hydro-
graphic aurTeys made In Dec., 1866, and March,
1868, at the entimnce of C^te Fear riTer, N. C.
Beport of AMdsUnt C. P. Bollea on the raanlte o( a
(opographicsl reaurrey of the ahorea of the Citpe

Pear entiancea riDd adjacent islands

Letterof thoSnpurintaDdent to Che Becretary of the
^teasuiy, commnnicatlng tbe resulta of a tesurrey
of Maffit's channel, made in March, 1868, fay

Lieut. Comd'g T. B. Huger, U.S. N

Letter of the Superintendent to tbe Secretary of Uie
Treamry, oommonicatingthediacoreiyandaootid-
ing out of a new diannel leading Into tbe SMlem
end of Bt. Qeoige's sonnd, Cla. , t>y Uent. Comd'g

J. K. Doer, D. B. N

Letter of the Buperlntendent to the Secretary of (he
Treuaiy, com muniisting t lie discovery, by Uent.
Comd'g J. E. Duer, U. H. N., of the iboal* near
the pMMS of Bt. Occrge's toand, and a new chan-
nel tot entering the sound between Bt. Qeorge's
and St. Tincent'a Island

"dffd

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TUk.

Vol.

Put

Die

Pif.

TrcuDiy. communicating the dsrclopment of
Ho. IB. B«port of C>pt. W. B. Palmer, D. 6. topographical

6
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6

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6
6

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3S
33

•

33
33
33

33
33

S3
33
33

the lenltb telecoope for deterniiDing latHndea bf
Talcott's method, by A. D. Bache, SopeHntendeDt

1S4

Mo. 21. Beport of W. C. fionil, director of Uarfard ObMir'

theCoutSaiverilnceMuvsmberl, 1BS7

Ho. 33. Eeport of Prof. 0. M. Mitohel. directot of the Cin-

189

Ho. 2S. B».diKD8iioiia«l development of an intermediate
period in the leculat change of the megnetic d»-

How 2S. B^t of Aadetint Charles A. Bchott on the pro-
grew mode in diwniBliig the eecnlar Tariatltm of

City DC ..

How 21. On the tidal earrenta of New York harbor, near

Ho. 28. Bepoit of Aidataot H. Mitchell, on the loveetifra-
tion of currents in the Beat river, at Hell Gate
and Throgg* Heck, the wb-cnrrentaof Kew York
bay and harbor, and leTelllDgaoD the baniuof ihe

No. 29. Hepurtof Ami^ntL. ?. Foartalee. in charge of the
field and office work, relating to tidal ohgerTb.

No. SO. The co-Udal Ham of an encloerd eea, derived from

No. 91. Od the dynamic* of ocean curtenta. by Lianl. B. B.

110

on their further inveBtigatlon, by Lieut E. 3.

No. S3. EilracU from the report of Atsittant A. M Harri-

No. 84. Exlracta from the report of Sub-Anittwit Joho
Ncchan. relative to the character of the eactera

river

Ho. 36. Btport to the Commlvioner of the General land
Office, vhoirlng the progreai made during the lun
viying year in the survey and marking in quarter

224

N». 36. ExUactB from the report of Sub-AaEiitaot F. W.
and Banlbal luiandi, and Sail Carloa bay, on the

227

■no,.

,Vol.

PUL

Doe

hr..

deK»Dt or the weight wd Doe In dMp«» lound.
iiigi, b7 Prof. W. P. Irowbridge, aMlMatit In tha

S3
93

93
33

33
33

33
S3

33
U

2
3

Bo. 39. Beport of Anbtaat L. F. PoQrtale*. on the pngraa

Cout Snifey, raUUnK to the origlo, ooHt, knd
progreM of fonign geodetle iuiTey^ with other

No. 41. CompiriaoD of the ooet mmI pragreM «f the bulled
Statei Cout 8nTTe7 during the perlodi ftom 1832

to the TreMDiT Depaitment by A. D. fiache, liu-

No. 13. Ilde table* for the om (tf Mrlgklon. prepared from
the CoMt 8ar*e7 obeervktioni, by A. D. Bache,

No. U. Dlnctoi; for the Padflc cout of the Dait«d Ststm.

S9T

Comdr Jame* Alden, U. 8. N., of Red Bloff.
Wuhinglon Teiritocy, u a lite for a %bt huiue.

the Superintendent bj anlManta in the Coait

439

Lieut. Comd g W. O Temple, U. ti. H , tbr a
null light end fgg-bell on HiJI-wa; Book, Cano

MMltr for BbMOOQ on ••Tbe lUbow," Florida

lient. Comdg J. K. Doer, U. 6, N., for a penna-
nent beacan at the wutein antnum of M.

Lieut Uumd'g tt. H. Onjier, U B. N.. tut bnora
to bdlltate Mvlgatloo In the KHitbem pact of

OoHtwiM trade. Letter of the Seoretar; of the Trmmur, relative

Code of ragalatloni for the goverameot of the imtj, piepued by
dlrecUon of act of CoDgteM of Hafch S, 186T. Ueport of

Coinage at the mhit of the United Statei and lu beancbee dorlng

the jear ending Jane 90, 18U. Statement of depodla and..

Ooiniige at the United StMea mint at Philadelphia, from 1TB3 to

«T

* eiOiv;

CoiiugB at the kuMdi mint of the UdIIciI Statca at S*n nukdaoo,
from 1854 to ISfiB. Statement of the Mnount of tbe. .

Coinva at the branch mint of the United States at New Orleam,
from 1838 to 1B&8. Statement of the amount of the. .

CMoage at Uie bnnch mfut of the United Btutes at Charlotte, N.
C, from 1838 to 1858. Btatetaent of the amcmnt of...

Coioi^ at tbe bnmch mint of the United State* at Dahlonega, Qft.,
ftiMn lf>38 to ISBS. Btatement of the BmoTint of

CoiiMp: of the Onlted States and Orrat Britain Letter of the
fiecretBcy of the lYeaaniy. tranimlttiDK the report of Pro-
fenor Alexander aa to the relative value of the ...

Coin and buliloi Imported and ezportod annual];, from I81t to
1858, IncIodTe. Statement of the amonnt of

Collection diatricta of tbe United Statu Letter of the Secretar;
of the Treamry, traDamittiDg a plan for the reotganizaUon
of tbe

OoUina, aakiog ocanpeoaatlon and rdmbanement fbr expenees in-
cnrred while eiplorloK tbe Amoor river Letter of the
Secretary of State, in relation to the memorial of P. HcD-,

Columbia river. LeUer of the Secretary ot War, itatiug that there
are no pUn* nor eetimatee for the deface of Puget'i Sound
and the entnnoe to

Coomerce and narigaUoo of tbe United States for the jear ending
Jnoe SO, IBdB. Eeport of tbts Becretiuy of the Treasnr;,
it of the ...............

Mo. 1. Statement of the goods, vareA, and merchandlge, of
the growtii, prodnoe, and manafactiire of the
United Slates, exported to ft>i«ifnt oountrlel
dnring the jear eudiDg Jane SO, IBGB

No. %. Sommar; itatement of the valae of tbe eiports of
the growth, produce, and aannftictare of the
United State* during Uie fear ending Jnna 30,
18S8

Mo 3. Oeneral etatetoent of goods, ware*, and mercluntllra,
of Uie growth, prodnce, and manufiictiire of for-
eign oonntrlea, exported from tbe United States
during the Bacsl year ending June 30, 18S8......

Ho. i. Summary statement of goods, wares, and mer-
chandise, of the growtb, produce, and miuin-
fsrcture of fondgn oonntrieg, exported from the
United States dnrlng the year ending June 30,
1Bd8

Ho. i. Qeneral statement of goods, wares, and metchaodtse,
of the growth, prodnoe, and manohcture of for-
eign conntiiea, import«<l into the United State*
during the year ending Jane 30, 1858

Ho. fl. Sammary statetnent of goods, wares, and mer.
chandise, imported Into the United Btales in
American and foreign vessels during the year
ending Jnne SO, 1868

Ho. T. GenenI rtatementof goods, wares, and mer'handlse,
of the growth, prodnce. and mnnnhcture of the
United States, exported from each oolli^on dls- .
trtct daring tbe year ending June 30, 1858

N9. 8. GoBcnl ststement of goods, wares, and merchandise,
of Uie growth, prodnce, and manufacture of fbr-
algn coantriea, exported from eai h collnctlon die-
tHct of the United State* daring the yen ending
Jnne 30, 1858

Vol. Put. D».

c«KudnHvigationn. 9.,paper*aGoompMijiog~Cool[Dued—

o. 9. Qeoenl BUtemeiit of tbe goodt, wuet, and mer-
cbftiidtte, of th« growth, produce, ukd maua-
facture of foreign oonDtru^, imported Iota each
coHectloD diitrkt of the Doited btat«8 during the
r^r eliding June 30, 1858

o. 10. Btklemcnt exhibiting the number of American and
foreign T<»sele, with theii tonnage and cn-wa,
which claarcd from the tTolted Statm for foreign
conntriea during the jear endiog Jane 30, 1858 . .

O. 11. Statement eibibiling Ae number of American and
foreign vraaels, with their taonage and crewi,
which entered the United Stntci from fo-eisu
countrieB during the jear ending June 30, 1868..

o.-l). Statrment exhibiting tbe natlooal chamcter of tbe

^ '' Ibreif^ Tcaaala which entered and cleared from the
United Ijtetefc for foreign cauntriei during tbe jen
ending June 30, 1858

o. 15. SUUaticai view of the oommerce of tbe Onlt«d
State*, exhibiting the Talae of eiporla to and
tmporta from each foreign countrf, and the ton-
nage of AmrrJcan and fonjiga vaGeela arriving
from and departing toeach foreign country during
tbe fear ending Jane 30, 1858.

a. U. gtatement of tbe commerce of each State and Ter-
ritory daring the year ending June SO, 1858

0. U. Statement exblbiUng (he number of American and
foreign vmeli, with their tonnage and crewe,
which cit-ared from each diitrict of the Otiited
StAttm for foieign countries during the jear end'
log June 3D, 1858. ._

0. 16. Statement exhibiting tbe number of Americao aod

(breign veuela, with their tonnage and crews,
which entered Inte each dletrict uf tbs United
States from foreign countdea during tbe year
eadir^ June 30, IBfiB

a. IT. Statement eihibiting the number of American and
forrlgn veFteht, with their tonnage and crewa,
which deported &om each district of the United
Btatee. and the oountriea to which Ibej cleared,
during the year ending June 30, 1858

>. IB. Statement exhibiting the number of American and
foreign TeBbeU, wltii their tonnage and crews,
which entered into each district of the United
States, and the coun tries from whence the; arrived
during the year ending June 30, 1858...........

1. 19. Statement exhibiting the indirect trade of the

United Statoa. the countriee of production and
ahipment, wiUi the value of the articles imported,
during tbe fear ending June 30, 1X58

>. SO. Snmmarj itatement exhibiting the value of the in-
direct trade of the United Slatea during the year
ending June SO, 1858

>. 11. Statement of the tonnage of tbe aeveral districU of

the United t^tatea on June 30, 18S8 :

>. 12. Statement exblUiting a condensed view of the teo-
nage of the reveral dlstricta of the United States
on June 30, InSH :

». 13. Statement showing tlie number and claa of vea-
■eU built, and the tonnage tbereirf, lu each State
and Territorj of tbe United Stalea, during the
jear ending Juaa 30, 1868 :

Vol. Put. Dm. I

ixaDdoBTigstloDn. S,. pnpcn accompaii3rtiig— ConHnned —
No. li. Compfmtlve view of the registered ud ennillpd
tannage of the United Statoa. gbowlog tb« ton-
nage etnploynd In the whale fiaherj. also the pro-
portion of the enrolled and licenied tonnage
employed In the coasting trade, cod-ttshery,
mackerel fikherj. and whale BaheTj, from 1815

to 1BS8. ioctndve

No. 10. Statement (bowing the number and claea of yeneU
bailt, and the tonnage therenf. la the teveral
Rtatts and Terr^toriea of the United States, trcm
181S to 185S, InclmlM 1

Oomnereikl agents appointed by the consul general of the Britlah
pro*lnc«a. and thetr Tee* returned to the State Department
Letter of the ReC'etary of State, transmitting a lilt of the..

Coounerclal relationa of the United States with foreign nations da-
ring the year ending Suptember 30, 1858, Letter of the
Becretary of State, trantmltling a stalemeot of the

OtNUmrrcisl relations of thu United Statts with Great Britain du-
ring Iha year ending September 30, 1868. Statements of I
Uie [

Oommerdal relatloot of the United States with France dnring the I
yeir ending Reptember 30, 1B5B. StAtementu of the f

C<nmer<dal relations of the Dulted St&teg with Spain during the I
year ending September 90, 1838. Statements of the |

Oommetdal relathina of the United Htates with Belgium dnring the |
year onding September 30, 1858. Statements of the )

Ooauaercial relatiuns of the United States with Holland during the
year ending September 30, 1858. Statements of the

Commercial relations of the United States with [>ortiigal daring )
the yew ending Srpiember 30, 1B58. Statements c^tbe )

Conmerciitl lelations of the United BtJiteB with Denmark during [
tiie year ending September 30, 1858. StsteiDenhj of the f

Conunercial relations of the United States with Sweden and Nor-
way during the year ending September SO, ISfiB. Blote-
menti of the ...

Commercial relaUons of the United States with RuRsia daring the I
yearending September 30, 1868. Statemente of the j

CoBuuerctal relatiuns of the United States with frassla during the
year ending September 30, 1858 Statements of the

CommercUl relatiuns of the United States with Austria dorlng the I
year ending September 30. 1858. btatemtnts of the |

Commercial relations of tbe United States with Hanover during
the year ending September 30,1858. Statemente of tbe

Conaierclat rela^ons uf the United States with Fnmkfort-OQ'the- \
Uajn during the year ending September 30, 1858. Slate- >
merits of the )

Comnerciat relatiuDB of the United States with Saxony daring tbe
year ending September 30. 1858. Statemente of tbe

Commerdai relaUuns of tbe United Statei with BaTsrla during the
year andiag September 30, 18S8. Statements of the ,.

OoMMrdal relattont of the United States with the Hanse Towns ]
dnring' the year aiding Sfiptomber 30, IB08. Statements of \
the )

Commertia] relations of the United States with the FontlBcal States
during the year ending September 30, 1858. Btalements of
the

Cocnmerciai relations of tbe United States with Sardinia dnring I
tha year ending Septemlier 30, 1S5H. Statements of the .. j
menjal retaUons of the United Slates with Trntcanv during I
ths year ending September 30, 1858. Statements of the )

:6->l J!

the.

J relatiotu of the Onlled States with Hwltierlaiid dnrlug

the fear ending September 30, ISftS StatemmtB of the...
Commerdal rElatiooi of ^e Cnlted Slatts with I'urker dnring the

year ending Beptember 3D, ISSS Statementa of the...

Commerciiil relations of the Cnlted Btate« with Qratce daring the

Tear ending Septembet 3D, 1B58. Slatenientg of the

OommeKlal relatlcmi of the United Btate* with the Ionian lalandi

during the fear ending September 30, IBM. Statements of

the

CommertUl reUtjons of the United Sttttea with Africa dnring the

jear endioa Bepteiuber 3D, I8SB. Statements of the

CommerEUl relation* of the United Btatea with the Barbary Btatea

during the jtu endiog Beiiteiuber SO, 1HS8. Statements of

the.

Commercial relatione of the United Btatea with Unseat dnring the
year ending Beptember 30, Ig&8, Statements of the

Commerri^ relations of the United Btatea with Blsm dniiuff the
jlear ending September 30, I8S8. Statements of the

Commercial relations of the United Sttttei with Chins dntlDg the
year ending Beptember 30. IS&S. Statements of the ......

Commercial relationfi of the United Sttttei with Japan dnring the
year ending September 30, 1838. BtHtementi of the

Commercial relations uf the United Btatea with the Sandwloh
Islands dnrtng the year ending S^tember -SO, ISGS. State-
ments of the .

Commenlal relatloni of the United States with the Fejea Islands
dnring the year ending Beptember 30, 18&8. "' ' ' '

the.

Commercial relations of the United t<lalee with Haytl dnilng the
year ending September 30, 1B6B. Statementsof the

Commercial relations of the United Stales with the Duminlcaa Be-
pnblio during the yeor ending September SO, 1S6S. State-
ments of the

Conmerdal reladnns of the United States with Uezico doling the
ye«r ending September 30, IBS8. StatemeDtaof the.

Commercial relatione of the United Btatee with Honduras durtiig
the year ending September 30, 1858. Statetnenta of the

Conimerciat relatioDS of the United States with Nicaragua durii^
the year ending September 30, 1868. Statements of the

Oommerdal relations of the United States with New Qraosda du-
ring the year ending September 30, 1868. Btolements of

the.

Commerdal relations of the United Btatea with Costa Rioa dnring

the year ending September SO, IBSB. Statements of the

Coaunerdal relatione of the United St^te* with VcDemeta during

the year ending September 30, 1SS8. Statements of the j

OOBuiieTidal relations of the United States with Ecoador during

the JMt ending September 3D, 18SB. Statements of the

Cmmerclal relations ot t^e United SUtes with BoUTla during the

year ending September SO, 1868. Statements of the

OonmieTcial relations of the United States with Braall daring the

year ending September 3D, IBG8. Ktalementt of the

Commercialielations of the United States wlUi Pern during tlw

year eniJing September 30, 1868 Statements of the

Cmnmerclal reUtions of the United Slate with Chill dur ng the

year ending September 3D, 18SB. Statementa of the..

Vol. Put. Dae. r^t.

OoBBtrdal nkOiiwi of the nnltad BU*aa wlUi tha ArgmUM CkiQ-
frdentUon dnring Uu jmt BndlDK Beptembn 30, IB&a.
Bhitemenla of tha

OomnereiU reUtlona of ths Ualtad BUtM with nragiuy djaing
the jien eodiiig GeptelBber 30, IBGS. StklcnMltl of th«...

OoMiMTctal ralatiolu of th« UDltAd Ststei with Ptngiw; daring
the jtmz ending September 30, IBM. Bt«teinenta of tha...

CcmmianTj Gencnl of Sabalat«noe of the Aimy, of the openttons
of Ua departntent dwring the jmt ending Jnoe 30, 1S&8.
Baport of the

CloBBiaakmer of Pabltc Bailding during tha fanr nndliif JniM 30,
lg». btimatta of the

OMmtorioner of Public Ballding tot tta jraar UGS. Annnal re-
port <rf the

CmmMaaer tA Cnabxna, of tha opentloiiBof hli ottoe dnring tha
rear ending Jnne SO, IBfiS. Anniul raport of the..

GoaiptrolleT of the TreaniiT, of the opetaUona of hta ottoa during
the jear eniUiut Jone 30, 1858. Annnal raport of the nrtt.

Coaptioller of the IVaafBry, of tha opemtiMN of hi* office daring
the r«w ending Jima 90, 1SS8. AnBoal report of the
Beoood

OtMpt'oItei' of *tM IVeeanij, of the balanoaa of appn^iUoni for
the wrTioe of tha nary on July 1, 1808. Btatemnt of tha
Beoond

OooptioUer of the T^eaaniT, of appiopriatlonB drawn dnring the
year 1B67-'S8. and balaaeaa on hand on June 30, 1808, and
■mount carried to the asTplaa fond for the aef rloea of the
army and War DapartBant. Stalamantof thaSaoood

Oanafamtlon, Eqnlpu<-nt, and fiapalr of the Nary dnring the
year ending Jtuw SO, IBOO. ITitimatrnt fur appnipriatioiia
lor the Bnreanof

Oooitndlou, Equipment, and Repair of the Navy during the
year aodlng June M, IBao. Beport of the Chief of the

F^wt ■Moaf^.y Hi Aai fyrt.

A. — latimate of the amount required for tha expendltnrea
of the bnraan for tha flical year ending June

311, IBM

late for pay of comndBlon, wanant, and petty
ofBcen and wnmwi. Including the anglneei
corpa of tha nafy, laqnlred for vaMaU propoaad
to be kept In oommlMtcai, Indndlng tombIi for

tfaBlliical yeareodlDg Jnne30, 1860

ute of the amount leqnlrad lor ob^ccta under (he
dlrectl<n of the bureau, payable from the ap-
proprLilion for oaaatmatton, eqolpmant. and re-
pair, for wear and tear of TeMeli In eommia Ion,
including fuel for ateamen and the pnrohaae of
hemp foe the navy, for the flaoal year cwHng

Jane SO, 18S0

'e of the amount required nndtr the head of
"enoBefated contingent" for the ytar 1800...

■■ — Vemela in conmiMhm belonging to the navy on Oolo-
bar 1, 1808

F. — Teaaeli in ordfamiy, repairing and equipping,' belong-
ing to the nary on October I. lJ<68

O. — Teaaela on the itocha and In progren o( oonatmction
on October 1, 18S8

Vd. Put. Doe. Pm(.

ConatructioQ, Ac. , papers KOonpHiTli^ — CoDttoaed —

H. — Ahatract ttatemant ihowing recefpu Mu) ~eip«Dd1turcs
during the Atcal jttj endiog Jane 30. 1868, and
the value of the store* on hand at the vwIods
navy yards on July 1, 1B58

I. — Btatement of tiie DDmbcr of days' labor and lis cost,
from Jaly I, ISST, to June 30, IB&B, for the te-
•pectlie nary yards, for LnitldlnK, repairing, and
equipping Teasels of the navy, or in receiving or
•ecarlnR stores sod materials for those purposes.

No. I. — Scale of <:Bett to funlsh IWe-oak timber ui>der the
•dTertlaemenl of thebai««aof June U, 1858...

Ho. S. — Scale of offers to f^ralsb naval sapplies at Uu nary
yard at Kltteiy, Kdoe

Ho. 3,— Scale of oSan to famish iwTal svpptles at Iha na*;
yard at Chaileatown, Massacbnsetts

No. 4. — Boale of offers to famish naval suppliea at the navy
yard at Elrooklyn, New York ....

Ho. 5. — Scale of offers to faralah naval sapplies at the navy
yard at Philadelphia, Pennsylvania ....

Ho. 6. — Bale of olleia to famish naval snppliea at the aavy
yard at Washington, District of ColumUa

Ho. 7. — Scale of ofl^ to faraisb naval inppllsa at the navy
yard at Oosport, Virginia

Ho. S. — Scale of offers to famish naval Mpplles at the navy

yard at Warrington, Florida

Contingent expenses of the navy daring the year ending Jane 90,

1858, Htatement of the Fourth Auditor of the disbarae.

mentfl of the

Contlngeut expeosrs of the Department of St&te and of foreign in-

teicourae during the year 1868. Letter of the Secretary of

State. tTKDsiDitUDg a statement of the ...

Uoatingent expenses of the Navy Department for the year 1858.

Letter of the Secretary of the Navy, traoBnitting a state-
ment of the

Contingent expenses of the Territory of Kansas. Letter of the Seo-

retary of the Treasury, transtnittlng a report of randry

Contingent expenses of the Treasury Department for \be year 1868.

Letter of the Secretary of the IVtMory, tranmnittlng a tlate-

ment of the

Oontingent expenses of the War Department for the year 18G8.

Letter of the Secretary of War, tnunolttiiig statement* of

the

Contingent expeases of the military establishment during the year

iHftS. Letter of the Secretary of War, traoamlttlng a *Ute-

ConUngent eipvnses of the Interior Depuiment during the year
18S8. Letter of the Secretary of the Inleiior, transmitting
a statement of the . ..

ConUngent expenses of the Poet Offloe Department for the year end-
ing Jane 30, 1868. Letter of the Foetmaater Q«iieral, tnna-
nltUng a rtalament of tb«

Connl* general, constils, commercial agent*, and oonsnlar agents
during the year 1867. Letter of the Secretary of State,
teansmltting a statement of the fees returned by..

Conanlai- oonrte In China. Ursmge of the President of the United
Statt«, trantmlttlng a decree and regulation for the govem-
ment of the ..

Countlar offrcer*. ftc. Letter of the Secretary of State, trantmlt-
tlng correspondence* relative to the inadequacy of tha com-
pensation of „. ,„ .„.,...

X'.oo'^ c

OMnlar aSrxn engaged In btnlncM in violation of the connilBr
kw of 1861. Metnge of the Fraaldeiit of the Unltsd St*tea,
tnu»initdngao>te«poiMhi>Mi«lativa tothe..........

Octitniion for CBirTliig the maili dnrhiK ttaycftt ending Jnoo 80,
18M. Statement of Um adctttloiMl alkiwuKM made to the.

Ctntiacton fbr eairybtg Ae mail* during the year endinK^viB BO,
18AS. Statemeotof tha cnrtafiramt of the mall lerrloe and
payofibe „

CootraclB to farnUi artlclea coming nttder tha cc^nitaoce of the
BoTvaa of Taidi and Docka doriDg the yeai IBM. Abatiect
of the oflbiaaad

Ctmtracta made and reeelTed by the }tareAa of Comtniction, Bqnlp-
ment, and Bepair dnring the vew 18G8-'S9. Ust of.

ContiBcta made under tl>e aqthority of the Wur Department daring
the ymr ISfiS. Letta of the Becretaiy of War, tntDamitUng
itatenMnteoftlNi

Oeda Uca during the year ending Beptember SO, 1838. Statements
of the Gommeiclal lelationa of the United Statea with

Cotton expMted annually from 1811 to IBGS, Indndrs, with the
cost per potud. Statement of the qnantity and tbIdo of the.

Cotton from IStO to 18(8, Indodre, Statenetit of the Talna of
tha impotti of foreign, and the esporte of the Ibrelgn aod
domeaUc manafactnrea of . .

Omt of Claima for the flacal year ending Jnne SO, 1800. EBtt
mates of apprajHlatkNii fortite...... ...

Omrt-hDiina daring ^e year ending September 80, ISfiS. Report
of ths engineer In charge i^ the progrcaa in the craabuo-
tlonof the

Oout-boDtea. Statement of the ^)pi«priatIon, coat of liteiGootnwt
price, and date irf oompletion of. ...........

CoiiriJioiiM in the dty of BalUmore, Karyland. Letter of the Sec-
retary of the TrMwniy, r«latlve to the oonstmetlon of a....

Cian, relatlre to the Territoriee of Oregm and WaahlDgton. Let-
ter of the Secretary of War, tnniodttlng the tc^iograpfaical
memoir and reptni of Captain T. J........... . ..

fM». Henage from the Preddent of the Dnltod States in rqpud
to the aeqnlriUon of the island of ...

CwtOH'JiODBes daring the year ending September 30, 1898. Report
of Ote engineer In chaise of the prcgreea In the oonltractlon

Vol. Put. Dm. Pifa.

Costom-hooses pnichaiMd or built. Statement of the namber cri*...

IMon-hiMMea. Statement of the number of, coat of site, date of

contract, contract price, and date of completloBof...

Dm( dmnb, and blind to tha lit Jnly, 18M. Beport of tlw pred-
dent oftheCidDmUalniUtationfar the

Deatla, dlsmioals, Ac, in the navy dnring the year ISBft State-
meat of the .

I>nnisA during the year ending September 30, IBGS. Statement
of the commercial relations of the United States with

IMplooiatlc Correqiondence of the BeroloUon. Letter of the Secre-
tary of State, Bskliv fbr an appropriatlen to .parohaee the. ..

DJmisdona from the navy In tbe year 1858. SUtemenI of the

DIMct of ColnmUa fbr the year ending Jnne 30, 1880. EMmates
fbr Bppropriatlona tot the rapport of the pentteaMary in the.

Wrist of Golamtda for the year ending Saptemlwi 30, ISU. An-
ami report of tha warden of the penHentlary Id tlM'.......-

Dome of tha Ospitol daring the jear ISM. Bepoit of the ngl*
noer tn chuga of th« TMnwtnictton of the ...........

DotDMtlo produce, *t New York, for the yean ending Jnne 30,
ISGfl, ieS7, and 18G8. Statemeot of the aTongs aoaOilj
prices of oertain leading artlolw of . .....

Domtnlcao Bepobllc daring the year ending September SO, ISfiS.
Htatemente of the commercial lelatioiu of the United State*
with the

DonglBM, of VancoaveT'i Uland. Mc— ige of the Prerident of the
United State* lelatlre to advance* made hj Qoveraor Jamei.

Dromedarin. lAtleT from Mr. De Leon to the Becfetaiy of War,
enclodnga treadaeon

BcnadoT during the year ending Beptember 90, 1868. Statement*
of the commercial relatlona of the United Statea with.......

Eoglnear In charge, on conatmctlon of custom-hoom, oourt-honaea,
poet oiEoea, marina hoqilUla, and otbts public building*
confided to the charge of the Treaanry DepartDtant. Be'
port of the . ..... .

&)gineer In charge of the progreai in the erection of the o^iltol
ezteniion, new dome, and Poet Office extensiOD for 18&8.
Beport of the . .

Englneen, for (ha tarrloe of the army during (be year Jnne 30,
ISSO. EaUmataeof theOolooelof

Boglneer* of the army, of the operatlona of hi* d^Mitmrat daring
Uie year eodii^ June 30, 1868. Annoal r^otl of the Oolo-

Bngioeer* of the STmy, of the operatloD* of the Military Academy
daring the year ending Jnne 30, I8&B. Annw^ repmt of
IbeOokniel of.

Engloeeri of the army, of the operation* of hi* depaitmant daring
the year ending June 3C, 18S8. Anneal report of the C^ikf
of Topogmphical

Betlmalee for approprlatlona tat the flaoal yaat ending Jnoe 10,
1860. Statement of the

Eelimatea for appropriation* for per diem and mileage of •anatMi,
and for Uie mpport of the office of the BecratMy of the
Senate for the fl*cal year endhig June 90, 1860

mimates for ai^Toprlatioa* for par diem and mileage of memban,
and for the anpport of the offloe c4 the Clerk of the Hon**
of Bepreeentative* f<>r the fiscal year ending Jnne 30, IS60..

Bttimate* fiw appropriatiou* for the tu[^)ort of the office of Bnper-
intendeut of PobUc Printing, and for paper required by ^
Huna daring the yearendlug Jone 30, 1860 ....

BiHmatea fbr appropriaUon* for the mpport of the Oonrt of Claim*
during Uie year ending Jnne 3D, IS60

Estimate* for appropriation* for the support of the EsecntlTC dnring
the year en^g Jane SO, 1S6D . ..........

Estimate* for appropriation* for the mpport of the Department of
State during the year ending June 30, 1860

Estinuttae fbr ^>prcvfUtlon* ka tba aai^rt of the Treamry Da-
partaiant for the year aiding Jnne 80, 1860 ....

Eitimate* (l» ^^in^rtatlon* for the mpport of the Departanent of
the Intarioc for the year ending Jane 30, 1860............

Eitimate* fbr appropiiaUon* for the anppori of the War Department
during the year ending Jane 30, 1860 '

SbUmate* for approivlatlons for the Mipport of the Sttf Depart-
ment for the year ending Jnne 30, I860..

Ertimate* for ^ipropriatlona far tbe snpport of the Feet OfRee Da- '
partment tor Uie year ending June 30, 1860 .......... ]

, Put. Doe. Pm*

BrinutM fiir appnipriatloiiB tot the nippoit <rf the mint of tlie
Dnlted SUtea ftod 11a bnuchea, wd ao^r offioo, dnrloB tike

jcar ending Jdiu 30, 1810 .. . ........

UimitM for apptDprUtloiu for tb« nppoit of the govemmoita in
the TeirttoiiM daring the jmt ooding Jane SO, ISM.......

EatloMtei tor ^^rapriatlao* far the lapfiort of the jndtdarf dnring

the jeu ending Jnne 30, 1880

Ktinntae for mppiopriBttoni for the lapport of the Independent

trcHBTr daring thejeu ending June 30, 1H60 .

EiQmaleB for kppn>priktlo»i for the coDtlnnatlon of the mnraj <rf'
the co««t of the United Btotea daring the jeu cadltg Jane

SO, 18M. Statcmentof the

Eitimitei for ^iiropriatloDa for the nipport of the Ugbt-bouM
eetebltahment dnring the y ear ending Jnna 3D, ISBO.......

Eitini»t(* for npprt^iriktiona for the expensae of inteicoaiM with

fofelgn nations daring the jeu ending Jnne SO, 1S60 ...

Grtimatai for appropri&tioDB for Burrejing the public iBods daring

the 7fl>r ending Jnne 30, 1860

EiUnutea for appropriatlonB for the |»;nieut of penaiona dnring

tlie year ending Jane 30, 1860

btimatea for B^HVpriatlona for the sapport of the peidtenUarf in
tl>e Diatrict of ColombU dnring Oia jtu ending Jane 90,

1860

lUinute foi appropriatlona for the support of the government hoe-

pftal for the Insane dnring the jieu ending June 30, 1B60 ..

firtimatas for ^ipropriationa for the current and oontingent expenses

cf the Indian department and fulfllllng treatiei with tlie

TarioDB Indian trilxs dnring the jeai ending June 30, 1860.

Eriimales for ^tpropriations (or the support of the arm; during

(he year Miding Jane SO, 1860 .

Eiti— tea for aiqiiopriatlons for the lapport of the miltary Acade-
my daring the ;ear ending June 30, 1860 .....

Ertimates for a{^>iopdaUona for the repairs, pTeaemtion, and con-
itmction of fortlBcationa dating the ;ear ending Jone 30,

1680

Eitimatoi for appropriations for tlie support of the Btirj dating the

jear eoding June 30, I860

Eitimatee for appropriationa for the sapport of the Adjutant Qoie-
ral'a depijtmait of the army daring the year ending June

30, I860 ,.

EsUmatea for aj^iropriations for the support of the Quarteriaiater
General's department of the armj during the year ending

June 30, 1860

Eitimatea for appropriations for the support of the Burgeon Gene-
ral's department of the army during the year ending June

30, 1860

Estimatea for ai^iropriftti^B for the support of the Ordnance De-
partment of tiie army daring the year ending Jnne SO, 1860.
a foe appropriations for the support of the tkigineer de-
partment of the army dnring the year ending June SO, I860.
latea for appropriatloos for the support of the Bureau of Ord-
nance and Hydrography of the navy during the year ending

June 30, 1SB0. Sutement of the

aatea for appropriaUons for the lupport of the Bureau of Tards
and Do^ of the navy during the year ending Jnne 30,

1860. Btatement of the

Estlmatas for apprapriatio&B for the support of the Bureau of Con-
Btructlon, EqaitRnenl, and Bepolia of the navy during (be

year Ending Jnne 30, 1860. Statement of the

firtlDMtes for ai^iropriatlona for the Eupport of Uie Boteao of Pro-
vUona and Clothing of the nary during the year ending
Jane 30, 1860. SUtement of the

-k*

gif"

Estbnatca toi approprimtlom for that portion of tha navot Mrrtoe
DDd«r the cognlMDoe of the BDras of norltfou nod
Clothing for the year ending Jnne 30, 18SD. Btatement of
the

EitioMtM im appiopriattoaa fbr tbe rapport of the Bvrean of
Hedtdne and Saigewj of Uie avrj tot tbe yew ending June
SO, 1860. Statement of the

Estimate* tor ifipn>priatioBa fcr the rapport of the Faymaiter'a de-
partmeDt of tbe Harioe Cotp* dnring the yew ending Jane
SO, 18(0. Statemeot of the

Estinwtea for appnqiriatlDm lor the mpport of the Qnartermaiter'a
department of the Harlne Corpa during tbe year ending Jnne
30, 1880. Statement of the

Eatini&tca for approptiatlonB required to meet eipenaes of collect-
ing the reTenoe ftom the Mlee of pnbllo Undi for Che ;e«r
ending Jane 30, 18(0. Btatement of (he

EtUmata tor appropriatioDi for pnblto balldingR, gronndi, fto.,
. dnring the year ending Jane SO, IBSO. Statement of Uie
Comminioner of Pnblfc Bnlldlngs of the

Bftimatea fbr ^^tropriatUna for Qt» office of the Secretary of the
Nary and the tonthweit ezecnttve bnlldlng fbr the year
ending Jnoe 30, 1060. Statement of the

SrtimateefoTapptopiiatioDafot themipportof the Bnteanof Tttdi
and Docka of tlie tuiTy during the yew ending Jane 80,
1800. SUtemeDtofthe

EtUmatei for aj^roprlatloni for tbe Eopport of the Burean of Ord-
nanoe and Bydn^rapby of tbe navy during tbe year ending
June 30, 1860. Statement of the

EBtlmatee for iqipropriatfon* for tbe tupport of the Bnreao ofCiHi-
etroctloo, Bqnlpment, and Repair of the nary during the
year endhig Jnne SO, 1860. Btotementof tbe

EiUmatea for qtpropriattoiu fcr the rapport of the Bnrean of Vta-
Vielons and Clothing of Hie nary dniing the year ending
June SO, 1B60. Statement of the

Eatlmatn for appropriationa for tbe raf^Mrt of tbe Burean oiF
Hedldne and Snrgeiy of the nary dniing the year ending
June SO, 1860. Statement (tf the

Ibtlmatei fin ^ipraprfationa fbr the rapport of tbe PaymaEter'i
department of tiie Marine Corps during the yetar^ending Jnne
50, 1860. Statement of the

Eitlmate* fm appropriationi for tlie rai^rt of the Qoartertnaater't
department of the Marine Corpa during the year ending June
SO, 1880. Statement of the

Eatlmatee fbr appropriation! for the pay of offloen of tbe nary
attached to recruiting rtaticoia during tbe year ending Jnne
SO, 1860. Statement (tf the

Ettimatea for approprlatlont for the pay of olikan of the nary
attached to nary yard* and stations daring the year ending

June 30, 1860, Statement of the

^tlmatee fbr appropriatlona fbr tbe conetniclion and completion
of woits and cnrrent repairs at the sereial nary ynnli
daring tbe year ending June 30, 1860. StateMient of Ute...

Brtfanatea for appropriatiou fbr tbe oonftnictlon and oompleHoa of
work* aiid current repaln at the Mreral naval bonrftab
during tbe year ending Jnne SO, I860. Statement of tbe..

EMmatca fbr appMpriatloai for the conatanctlan an] oompleUcn
of irorke and current repairs at the Bereial naral magailnea
dnring the year ending Jane SO, 1860, Statement of the...

Estimates fbr the pay of certiJn Florida rolnnteers. Letter of tbe
Secretary of War, transraltHng , .......

Ertlmatea of expense in taking tbe Berenth Oenms of the United
States. Letter of the Secietaryof the Jote]W,tnuumItUng.

TWfc

V<d. Pift

Dae.

Per-

•

I
<

3
3
S

ST
54
63

.69
BO

106
lOT

10
14

Ertiiutn fbr the ierrlce of the Poet OfGM Depfirtmeiit bi the jmv

bUnutEi for the BU17 of the minliter reddent «t Jkpu, and
othBi exptniMt, dttiiug the yeai eoding Joae 30, 1S60.

Edimktes for CMnjiog the duUs between the United 6Ute« md
foRdgn ooontriM, an.l the Atlantic and Pacific oouta, during

UimatM fbr the pnichue of fire hundrad oopies of the Diplomatic

Brtinatea Ibi takinc the ceotm of the people ot the l^rritorr of
parchBK <rf volame eleTen of the SUtntes at Large. Letter

KM. atUraunit of the amoont of the reoeipla and

Eapeoditana of the iMriiie hoepUal fond during the jmi endlofi

Bnildliigi during the jeu ending June 30, 1S5S. State-

JvM 30, lUB import of the Aodllor of the Treaior; for

831

branch mInU, &c, during the yeu eoding September 30,

EipenditotM of the Quarlcrmarter Qeneral'a department of the
armjr dnring the year ending June 30, 1856. Statement of

during tha Tew ending Jnne SO, 1SS8. Statemeneof the..

SOS
1304

TIO

for the 7m ISfifi. Letter of the Secretair of State, of the

ef the SecrotMj of the Ha»y, of the contiagent

Vol. Pui. Sob. I

Bxpandltnna for the inproTement of the tertml mrj ytv^.
Lettei of the Sewetarr of the NkTj, bumttting « st*te-

mentof tlie coft of dt<fl and — .-

Espendltnre* bn bamcki and qnaiten for the umj daring the
iMttanynn. Letterof theSec^eturof War, tmumltting
a report and statemeDt of the .

EzploraUona and Borveri of the War Department for IBM. AnQoal
report from the office of ..

Ezidoring Expedition. Meeaage of tjie Prertdent of the United
BtatM, relative to the pa; of offlcen of ttie hat; ingaged in
the preparation and publication of Wllkea'

Expendlturaa of the Obickamw trust rund daring the jear 1858.
Letter of the Secretary of thelYeasar;, trumnitthignstate-
ment of the . ...

Eipotti to (brdgn oountrlei foe the year ending Jnne SO, 18M.
Statement exhibiting the total Tmlae of

Bqiorta of ooin and balllon, ananallr. from 1821 to 1811B, Indtudre
Statement of the amount of

Ssporta from the begloning of gorenunent to Jone SO, 18S8.
Statement of the groM Talne of .... ■

■iportl of manufaolnrad artlclet of domeitic produoe to fbrdgn
coDDtriei from Jnne 30, 1B46, to Jnne 30, 1868. Statement
of the

Sxporti of the United Statae, annnallj', from 1831 to 18G8. State-
ment of the valae of domaatic

Export* of domectlc produce, Ac. , of the United State*, annnallj,
from 1B4T to 18&S, iQclodre. Statement eihibillng a mm-
maryTiewofthe

BipOTta of fk>relgn mercbandiae and domestic produce, annvally,
fran 1821 to 18B8, InctoitTe. Statement of the nine of

Bxporti of breadatnjb and provUona, annually, from 1821 to ISfiS.
Statement of Uie nine of the .^...... ....

EspoTta of cotton, annually, from 1811 to 18&8, with the average
coat pel pound. Stktemeut of the qnsntltir and value of

Siporti of tobacco and rice, annually, from 1821 to 18(8, inclnalire.
Statement of the qnintity and value of the -...-

Exporta of the manohctared and unmanufactared jRvdncIa of for-
eign conntrlea, from 1840 to 1898. and the eiporti of do-
meetlc produce of like cbaiactar daring the wme period.
Statement of the value of the .... ...

Exporta toCanada and other British poaeadona, from July I, IB&l,
to June 80, 1868. Statement of the value of the

Exports of the growth, produce, and mauafitcture of the United
States daring the year ending Jane 90, 1868. Statement of
the value of

Bzport trade of Great Britain and Fraooe with the United States
for the years 1863, lS6t, 1R06, ISfiS, and 186T. Lettar of
the Secretary of the Treasoryin reference to the

Xxports of goods, wares, and mBrchandiae of the growth, prodoce,
and mannfiwtnre of the United Btatea during the year end-
tag Jnne 30, 186B. Statement of the ..........

Espmia of goods, wares, and metebandise of the growtii, prodttca,
and mannfacture of foreign countries daring the year ending
JnueSO, 1868. StateoMnt of the

ty Google

TttM.

vm.

fmn.

tae.

Nn.

dfatrietdmlMgtharnreitdineJDiMSO, 1858. Btetoment

13
13

and mannbctnre or totOga oonntriM&wn Muh ooUection
dWrict dnring Um jmi onding Jnne SO, IBSa. Btatoment

...

3
1

1
1

60
65

85
J7

•gmtB daring Um jmi 1867, m rMnnud to the State De-

tlTC per cent ftind uWag fn» tlw mIm of tbe pnUic Uadiln the

Hmimm of the ooontrr daring the jtu ending Jane 30, 1858.
BepoH <rf the SeontHy of the Tn«U7, OD the oondltioii of

bicIiHlTe. Stktwuiit ot the Importo ud the eoporta of
Florida for the jfz 18U. Amiwl leport ol the fwrreyor gonenl

B
B

....

33S

nodda were called into'e^Tfae. Latter of the Secretary of War,

7imiga oMaiu during the jm ending Septeinbar SB, 1868. Let-

theoomnetdalnlatioMirf the United Statee with

FwliAMtloiw and defmcM daring the jeaien^ng Jnne 30, 1B60.

833

ItotiBcattoM at the ieahowd and northern froaUer of the Uolted
State, daring the jmi 1866. Annnia rq)ort of the (Xdoael

nanoe for the jean 18H, 18U, 1866, 18GS, and 186T. Letter of
impatt trade of the United Statee with Gnat Britidn and. .

U
in
St

uy Google

™..

Tol.

Put.

hr.

Oold ODbu. Beport of tha dinetor of the mint of Um United
SUlM Dpoa (he finencM uid nlo* of osrtaln fbrdgn

Gold depotdtod at Uui mint of (ha OnHed Bta(«s and biancfaaa and
avar office from 18H to 1868, iudoilve. StatenHnt of tbe

I
6
S

9
8

t
2

(•

2
1

....

3
S

3
3

3
4S

3<
80

S8
85

>
s

1
86

3
.1

Gold oidnaga of tlie mint of tha United 8<>t«a and haoOum torn

J 89
1 301

tins the report of ProfeBeor Akundei aa to tiie relatin

Gnat Btlt^ and Fnukce fbr tbe jtm 1863, 18&», IB6^ 186G, and
to the eipwtand Import tnde of the nnlted Blatca with....

H.
monts of the commBrcial relaUoni of the United BUtea with

SOS
( 283
j 696

Haibon and riven of the AtlanUo eoaat dnrbig the nar 18AS.
Ajutnal report of the Colonel of Engineen of (he annj. in

porta and eiporU of the foreign and domertlc, and homr

1021
I 380
1 6»

of the commetdal relationa of the United Htate* with

Hospital for the innne during the tgai ending June 36, 1860.

690

Hondoiaa daring the jeux endlDg September 30, 1S6B. Statementa
of tbeoommerdal idationi of the United State* with

minoia for the rear 1858. Annaal report of the icrreTor general

630

SUtee during the fiical jeui ending June 30. 186<, ISfiT,

Imports of coin and bullion, anDoally, from 1811 to 1868, hiciu-

S04

i,C.ooglc

Dnporii bom tho iM^nnliig of (orvnunaot to Jdm SO, 1868.
SUtamsnt of ttia gromnlaeot .. . — ...

Import*, mnDiullr, ezdndre of spede, from 18>1 to 18*8. 8tet»-
Mientof tbe vklne of foirign ......... . — ..— .-

IiBports, amtiMU;, of oerUn artldat, lad Um kmonnt of dn^
wUdi aoenwd on aid), bmu Jium SO, 1844, to June SO,
1868. StBtonantofthenliwor

In^otti of wine, qririlB, to., unMUy, ttom 1843 to 1868, lodo*
dve. atktemoatof the i

Importi, ■nniMll)', from 18S1 to 1S68, IndoalTe. Statenent of
tho tbIdo of...

Impoiti of inn, RMDnfcctvm of Inm, and inm and (teal, iteal,
■ogar, winca, and all Urica c^ whlofa wool, ootton, rilk,
flax, or liemp la a aampooatit part, anBiiallj, from 1847 to
1B68, Indorfro, with tho dutlca which accrued ttaereoo
dnriiig «^i jear, and of biaudlM bom 1S66--'&T-'6S.
Statement of the nine of ......

In^orto from Canada aMi other BritUt powewlMii frocn Jidj 1,
1861, to Jmte SO, 1868. Statement of the Talue of.

Imprat tnde from Great Britain and franoe for the Team 186S,
'64-'56-'6G-'6T. Letter of the Seoretarj of the TnaMuj
In tebraoce to the ..........

lB{iorti d good*, warei, and mendiaadlas of the growth, produoe,
and mannfactiue of foreign oomitiiEa dming the fear end-
ing June », 1868. Statement of the

Import* ^ goodi, wans, and merdMudiae of the growth, pradnce,
and mannfactoi* of foreign oonntrle*. Into each coUectlra
district dniing the year ending June 90, 1868.

m Department, awi foUUling treatle* with Tarion* Indian
Mliea, dtnlag the jear «ndlog Jnne SO, 18BD. Ei^niatea
lor appropriatioiiB Cdt the oarrent and oonUngsnt expenaae

bdian AflUn, of the operaUona of bla office and the condition of
the Indian tritMa dwiug the year ending Jnne 80, 1868.
Annnal leport of the OommlcriMier (rf

So. t. Depart of A. if . Fttdi, agent for the Indian* in the

No. 4. BepOrt of A. D. Boncateel, agent for the Indian* Id
•aldvidnitr '

No. 6. B^iort of Jane Dooaman, teacher to Um Ueoomo-

No. e. Beport of Bnalio Doniman, teachar to the Uenomo-

Ho. T. Beport of Frederh^ Haaa, brmer Id

Ho. 8. Beport of DsTid Lewli, teacher to the Oneida*.

jooc^rc

Indian AttJn, report Con

I. Beport of W. J, Cnllcn, KipeviiitaDdent ..
). Bqwrt of J. W. lotide, agsnt fbi "

thaMMMippt

.. Baport of 0. K. Drow, agtnt for tha OhippMna of

No. 11. Boportof JoMph B. Brom, agent fbr the Stoox..
No. 13. B^ort of A. BobntMn, tMidier at lted-«-w^k«D<

toknBBd W>h-p*-aotab rewrre.. .-—

No.U. Beportof John HoCoIloagb, teacher at HuUwood..
No. 10. Bq)ort of dainnel Brown, tanner for th« Be aw loan

andWah-par-toMi bnida

Ho. IB. Beport oT Cbarlea H. Mix, agent ft>r the WhuulM-

80«

Ho. IT. letter of K Prltcfaette, qiecfil igoDt, tnlMmittll«

report of Ui vUt to the Tanotonnala ..........

No. 18. Beport of E. Pritohetta, tpedal agent, of hia TWt to

the Tanotonnafa

No. 19. Copjof Bnpeilntandent Cnllan'ii

Pritchetto

Ho. 30. Hinatea of an intnrlaw with tha, Tuetonnala,

marked B -

No. 31. Hlnnteaof aaeoMidlBterTlew. maAodO..

Ho. Si.
Ho.>ft.
Ho. 16.
No. 27.

No. 33.
No. 31.
No.Sfi.
N0.SS.
No. 37.

Baport of A. M . BoUoaoa, a

Beport of Alfred J. Tangban, agent G»i Um Black&et

Indiana ..................

Baport of H. Bedfleld, agnt bt the ln<Uana of the

Upper lOaKHHl

Beport snpplemental of H. Bad&eld, agent for the

Indiana of the Upper Htenirl ....

Beport of Thomai S. Twiaa, agent for the Indiana for

the Upper Platte

Beport (rf C MUlei, agent for the Indiana on the

Beport of W. F. Wilaon, agent tor the Omahaa..
Beport of Wm. W. Danniaon, agent br the Ottoea,

and Hlaoorlaa and Famaee ..

Beport of Daniel Taadenlioe, agent for the Jowaa,

and the Baca and Foiea of the UlNonil ...
Beport of B. T, BoUnnon, agent for the Delawi
Bistort of Benjamin J. Hewaom, agent fbr the Shaw-
nee* and Wjandola ....

Beport of WlHam E. Mnrphj, agent tbr the Pott»-

watomUa . .....

Beport of John Jackaon, cnpeilntendent of the Bap-

Uat Pottawatomie mannal labor wjtool.........

Bepott of John Scholta, anperlnteiideDt of the St.

Uaiy'a Pottawatomie manual labor lohool......

Beport of E*tandi l^menj, agent for the Smm and

Poxeaof the UUionil..... — . .... ...

Beport of John UontgomerT', agent for tlie "Eawa"

n,g:,.ndtyC00glc

^kdiMi A^hj^^ jMott niiiiiiiliiT<iiuii, pAMA w)ooin|Miwiiiff— OOB.^

ITo-Sft. Bapott of EUm Bactor, lapnlntMideitt

No. M. Oiq(7 of office iMtraatkNU to Baparintandcat Bector,

In ngui to Choctaw cUfHcnltiM

No. 41. Bopoit of Andnw J. Dorn, agent for the OMgM,

Qn^swa, Sanecaa H)d8tww]Maa, and SanacH..--

Ho.41. Baport of J<*i> Bchowiiwliati, wperintendit of ttia

OMge mantul labor tobool -..— .........

No. 43. BaportofQaorgaBatlar.agMitforUiaCaiarakeea...
No. M. B^wrt of B. D. BMaa, auparintondcnt of Oharakea

poUlcKbooli ..

No. 4S. Bapoit of WUUam H. Oanatt, agent for the Oreah«.
No. M. Beport of Bar. D. B. CununinK, lalmiofmrj to tl

Craaki

Beport of O. Heimd, mperinteiident of Cieek paUic

■duoli io th« ArkaiNBa dbfariot ....

Beport of nianui B. Bnble, nperintendant of the

CYaak Aibiirj mannal l^or lehool ........

Beport of JaMoa U. C Stnith, •nperlntaadant of the
Creak nalghbc^HMd whoola in the Canadian dk-

trict

Beport of B. U. Looghridge, niperlntendent of the

Oreek nuuina] labor achool at lUUhHae

Baport of Sunoel If . Bntherford, agent for the Seml-

nolM

Beport of John Ulle;, inpeiintendBat of Seminole

maaiiKl labor nfaool ......

Beprat of DongUi H. Cooper, agent fbr tha Choo-

N0.4T.
Na48.

No. 49.

No. ML
NaSL

H0.5S.
Ho. ftS.
NO.S4.
Kft. U.
No. H.
No. 57.
No. M.
No. 09.
No. M.
No. <1.
NO.S1.
No. S3.
NO.H.
HO.U.

Beport of Bav. '
Choctam ....
Beport of Alaander BaM, npaiintandent of Bpan-

. StaAo, "■'—'"""7 to the

Baptnt c< J. D. ChaubwUln, anperiiilandait <d the
iTUnU fanala academy

Baport of W. B. Baker, aBperinteadeut of Aim-
■tmng acndemy ■ . . . . ........

Beport of Ooorge Alndle, enpBrlntandent of Koon-

Beport of Jolm Edwards, •nperlntandent of the

Whealock Itanale aoadauj ....

Beport of 0. Ktngibniy, ■aperintendant irf t

f hiwla fttmaln inrnlnur

Beport of B. L. Hobba, mpeilntandent of C3iootow

ndghboriioodsdiooli......

Beport of J. C. BoUnaon, nparlntandaot of Choo-

taw B

Beport at C. H. Wlhon, nparlntandant of the

Wahpanncka hiaUttita

Beport of J. H. Carr, niperlntewlent of Bloomfield

I, Cookie

Vol. Pan. Doc. P^«.

lodUu ASUn, rqiort CommlMloiiu-, pk.

Ifo. ST, Beport of H. Leeper, agent for the lodiMU oT the
Coouwche »geaaf . .....

No. BS. Beport of Bichord Sloan, teacher on the Comanche

No^9. Beport of H. P. Joaea, fanner on tl

No. 70. Beport of B. P. Bob, agent for the IndlaiM

Bniosagencr . .

No. 71. Beport of Z. E. Gootnbn, taaohar at Braaoa re
No. 73. Beport of H. B. Hom, fanner on the Brana n

No. 73. Beportof J.L.OullhiH,iaperintendent......

No. 74. BeportofChrtetopberOanon, agent for tbeUtaha..
No. 7&. Beport of U. Elteck, agent for the Indiana within

the Apacha agency.-. ....... ....

No. ?S. Letter &i>ni the Ber. fiamaal Qoiman, relatlTs U

the cooditf OD of the Foeblo bidiaai

No. 77. Beport of O. Bailer, apetdal agrat, In reganl to thi

Tn<1laTn "f AHi^a .........................

DTAK (imuatnpairai.
No. 78. Beport of JBoofairaniay,aiipaTintBident..........

No. 79. Beport of J. W. Nemlth, BBpeiinteiident

No. Sfl. Beport of EL C. Fltdioa, ipedal agent for the Nenk-

■ao, Bamlifa, and Lnnunl trlbei....... .........

No. 81. Beport of H. T. Hmmona, agent for the Indiana of

Puget'ii Sonnd dlitdct

No. B3. Beport(rfJ.H.Jenkin«,ipedalBgeatatIIeahBv..
No. S3. OoprofletteroflMacW. Smith, keeper of

light-hooae, to i^nt BhnmoBa.. ........ ......

Ho. Si. Copy of letter of agent Slmmoni to Mr, Smith

Ko. SG. BaportofB.C. Faj, loeal agent at PeiiD'sCoTe ....
No, SS. Beport of W. a Ooanell, apeclal agent at Sqoakiia

No. S7. Bepott of Blchard lane, teacher at Bqnahalu re-
No. SB. Beport<;^d.A. Paige, iotaa agent at the Kltaap..
No. 89. Beport of Btduer B. Foid, aen., fecial agent for
the Upper Cheballa, and the dUbrent baoda

along the ChehalU river ..........

No. 90. Beport of B. B. Metcalfe, agent for the Indiau

within the ffileti agancr . ....

No. 91, Beport of K P. Drew, nb-ageat for the Indiana at

-Ho. 92. Beport of William Tlchenor, upadti agent. .
No. 98. B^)OTt of John F. HiUer, agent for the WlUametta
tdbaa

No. 94. Beport of A. F. Dwnlaon, agent for the Indiana of
the northeaatem diitrlct of Oregon......

Ho. 9ft. Copjr of letter of John Owen, ipecial agent..

No. 9S. Oopj' of letter of John Owen, ipecial agent . .

Ho. 97. C^ of Superintendent Hennlth'i initrtictloni to
Hr. Owen

Ho. 98. Copy of newspaper corrcepoudent "

I, Google

ImllM) Abin, nport OooiBilHloncr, papen aoooAipuir'g— Oon -•
Ho. 99. Beport of B. H. lAutUle, agent for tbe IiuUati

north of ColamMa rirer and ewt of the Caaode

moaDtaina... .....

Ho. 100. letter of the Hon. laaao I. Stovena to Commla-

ehmeiof Iiidfaui AflUn ..

No, 101. Oommiuifcatlon ftom lioatenant John Hollan

reapectliig Indltti hoatUltleB ....

Mo- lOi. Beport of lliomaa J. Henlej, RnpertDtendeiit .

Nw. 103- Beport of H. P. Heintaelman, aob-agent (or the

Klamath Kaerre

No. IH. Beport of Tlncent E. Oeiger, agent fbr the None

No. lU. Beport of H. B. Lawta, ■nb.agent fbr the Freaoo

No. 10<. Beport of J. B. YlDe;anl, agent for tbe Indiana at

Tejon

No. lOT. Beport of O. Btlltj, spedal agent, npo> the aft-

t«nn (tf Indian reeerratlona .-...-

No. 108. Copy of a tetter of ^ledal Agent Bailej to 8. P.

Starma, oreiaMT at Nome Calt farm

No. 109. Oopr of letter at OreneeT SlAme to apodal agent

BiOlej

No. 110. Btalement of O. B^ert dlabnndBK clerk of the
Interior Department, of the condition of the
Indian traat fond, with Moompaajlng papen,

marted 1,2,3

Indiaiu. Oeneral Mdea No. II, from aim; bewlqtiartarB, K^eot.

lug oombati wttb Indiana ........ . ......

lodiua DMT Fbrt ArbncUe. BelatiTC to di^nlMnoM hftfae.-
Indiana tforing fte year eading June 90, 1S5S. Btatemenl of tbe

dWmiaemente <rf mooej and goodaforthe benetttof the..
IndiaiiB. Letter of the Secretary of the Interior, tranamittlng

■titemeat of amonDta dne dalmanta under btatj with the

BognaUTer

lMtl«.iT Letter of the Secratary of the Interior, tiBniaitilng ettl-

matea fbr ^ijHOprlaUana for folfillhig trta^ ittpo^tioni

witii the Tanctoo (KoDx) and IVmawMida

Indian tribea, parable on Uom. Btatement of amonnt dne nuder

treatlea wtthTaiknn...... . .........

Inaan hortlUtiea tn Oregon and Waahlngton Terrltoriea. Letter

of the Third Andltor of the TreMoiT, on the mbjeot of

clalmi growing ont of .. .. .

Indiana. Letter of the aaetfflmrj of tbe Treanuy, relaUre to

diapoaltkHi of the Ave per cent, fond from the lalae of pablic

land! In

^~*'*~- Statement of tbb amonat of atook held in boat for the

Cfal^aaaw

laftraiary. Beport of the recent phyaiclaD of tlie Waihfogten .
laaane In the Diabict of CoInmMa do^ig the jear ending June 30,

USD. Eatimata* for approprtatlona for the aopport of the

hoapHal for the

Inane. Annnal report oif the BcMdof TUtotaof thegovenuaant

hoapllkl Ibrthe

Interin dtfring the year ending June 30, 1S60. SMIdata tot tp-

proprikUoDa tor the npport of the Departnient (rf the..

, ,4Jc-4-)t^|cM

P^iat aeeompoHgitf tin tibam.

Urt of doenmcnta raoeired of tho li^mriBn of Otmgttm at
the DeputnuDt, Angmtmnd 8eptemb«r, 18U ...

Beport of the Commtidoiwr of Uie Qonetml iMd Ottoa.....

Report of the OommlHloiieT <rf lodlftD ASdn ....

Report of the CommWoaer of Peiutona ..........

Beport of the Commfaeioner of Public Btdldlngi ........

Bepcfft of the Wud«i of Uke PenltentlHT for the IMstrict
of ColimiU* . ...

Bqiort of the Superintendent, &c , of the QoTemnMit Hoe-
pltal fbt Ute Inaane

Report of the BoMd of Dlrecton of the luaHtutlon for the

Deaf, Dnmb, ud Blind

lateriOTi trMumlttiDg; ibttemeDt of unonnti dne olalnuiit* mtder

trentr with the Rogne Birer Indlani. Letter of the Been-

Utj of the — .

lolerlor, tnuumitdnic eatlniBtee of expenwe of taklDg the Serenth

Omni of the United Statea. letter of the Becretarj of the .
Interior, tnaamtttiiig • t«)nil*r rtetement irf <^e ezpensM of the

Snpreme Ooort of tlie United Statea daring tlie rear* 18U,

ISfiS, ISftS, MdlBftT. Utter ol the Seonrtarr of the

Interior, tmimnlttlng plaoi and eatimatca for publio boUdlagi io

theTnriloriei. Letter of the Secretary of the.

Interior, tranamlttiog a lift of clerks and other pertOBi employed

in the Department of the Interior, and their oompeoMUion,

for the year 1858. Letter of the Beoretarr of the

InterioT, relatire to the preaeot dtoatloa of the militaiy reeervatloti

of Book lalaiid, in the MIkIm^^ river. Letter of the Bec-

lettff of the ..

Interior, baonnltttDg an eetlmate for taking the oenme of the

Territocfof KanM«. Letter of the Becretaiy of the

Interior, tiwmnitUDg eatimatea for appropriatloDi for falfilling

the Secretarj of the.

Interior, banimlttliig ao csUmate for an appropriation for the pre-

serraUon ot copyright books. Letter of the SeoMtatr of

Interior, trannnitUng a statement of the contingent ezpensea of
tlie Department of the Interior daring the year ending
*Jlnne30, 18SB. Letter of the Seoretaiy of the

Interior, transinitting a ttatement of the balances of ^ipropriatioDS
standing to the credit ot the Interior Department. Letter
of the Beoretary of Uie

Interior, transmitting Infonnation relative to the Adriaory Board
of Agricultore of the Patent Office. Letter of the Seerotary
(rf the

Interior, tnuwrnitting reports npon the sevRral wagon roads to the
Psctfio ooean, aonstntoted cmiJer the dlraotloa of the Interior
Department. Latter (rf thsfiecretaTj of the ...--.

Ionian Islands during the year endbg September SO, 18S8. State-
meot of tlie oommwdal reUtiraw of the United States with.

Iowa for the year 1868. Annnal report of the surveyor general of
tho.pnblic lands for the Mate of

Iron and steel, and nuumbrctnm thereof, Imported into the United
States during the flscal years ending Jnue 30, 1856, 18ST,
and 186S. Statement of the qnanU^and valne of.......

i,Cooc^lc

Vol Put. D«c.

J»S»a. L«Usr of the Becntair of Rtat«, Mklng that an appropri*-
tkn be made for the Mlary of the United Statea mfulater
■vddentat

Japan dnring the tcw endliiB Scptomber SO, 18S8. Btateaoala of
the conmwnW lelatioiiaof the Uoitod Statea with

Jadidaiy during the jeor endinB Jnoe 30, 186D. Ettimatot Iw
qipropriaUona tot the tupportof the

Kbdms. Letter ot the BecreUij of State, uUng an appropiiatlmi
to pay certain oontliigeDt expentw in the l^errUorj of

TfinnMi Letter of the Bea«tM7 <i the l^vanij, tranemlttlng a
report of the conUnpeot espeuee bicaired by the nTeml
govenmaof the Territory of.......... .

TTiTnan Letter of the Becretary-of State, aaking an locreaied
appropriation fc>r the contingent expenaea of the Territory of.

KanvB. Letter of the Secretary of the Interior, trammltting an
stlmate for tt^lng the cenana of the Territory of.....

Kcenan, United Statei ODUol at Hong Kong. Letter of the 8ec»- {
taiy of State, lekttlTe to the oUlm of Jatoea }

m during Uie year teG8. Beport of the Colonel of Topi»-
graphkal Bhglneen of the anny, of the progrcealli thewrrey
of the northern and north wettem .. ..

d OfSce, tranamttting Balliiiitia for qjproprlationa dnring
year ending June SO, ISBD. Letter from the CommUooer

Estimatee of approptiatloiM required for aalarie* and oontln-
gent ezpenae* of the oSee ...

btimalea to meat expeneea of oollecting reyeiiiie from the
mltaof pobltc landa.-...

Ai^xopriatlonl for nirTejliig department ...

Appn^irlationi of the 2, 3, and G per cent, to Statei therein

id Office, of the operatloni of hta mDoe daring Uie flocal year
ending Jane 30, 18GS, and for the quarter utdiog BeptembST
SO, 1868. Beport of the CommlMioner of the General..

P^iat atBomfmif/mf Ai aHoM.

A. — Statement of pnbUo land eold, &a., up to BBptomber
30, ISfiS

B.— Similar (tatoment for aeoond half of Mkl flacsl year..
C. — BMjmate of approprlaUoM for office of Commltaloner ot
Qeneml Idnd Office

D. — Eailnata of oontiogent appropriatloQe for the aame ....
B.— Eatlmatei of appropriationa for nureylng department..

F. — Eatlmatea of ^pn^riations for enrreying pabUc loodi

G. — Beporli of nirveyon general and accompanying docn-

udf prepared for market, and not adTorttaed for wle, and landa
adTertiaed for aale on the 30th of June, 1808, and lantb that
will be preFOted for «le during the quarter ending Sep-
tember 30, 18GS

>;li«

TIU*.

,«.

P«i.

Uac

PtC*.

1
I

I
1

1
I
1

1
1
1
1
I

t
4
4

'\1

UndB QDder tho nyenl ftcta of 18*7, ISSO, 1861, and IBSS. State-

lADdi Kleeted b7 the Mvenl States andor the act* of Harcii S.

Fox aiMi Wiaooiuln riren, tn WiaeoDila. Statement of the

Lu&intbeStateofUIniMWta for the yen 1858. Annnkl Teport
LmkU In the Stake of Illln(dtudW»otiii for the jeer leU. An-

lADda In the Stato ot lom Ibi the yen IB&S. Aoniul i^ort of

Ludi to the 8t^ of ATk>n» for the yew 18M. Anniua report

Laiidi to the Slate of Florid* for the yeu 1868. Annoal npoii of

Undi to the Tetriton ol Nebiulta lot the jmt 1B68. Antnul

I«ndi in the TeRitory ol Hew Uezloo duiiDg the yeu 18S8. An-

lud* Id the State of CelUbnde dnriDg the yev ISM. Annuel

Ltuida to the State of Oregon foi the year IMS. AnnDsl n|K»t of

lAnda to the TeiHtoiy of Waebtogton for the year 1868. Anaoal
report of the nirreyor genenl of thepnbllc

3«

Llght-honae etteUlibnent for the year andtog Jane 30, 186D. b-

Ught-howe Board during the year ending June 30, 18S8. Annual

Ught-hooM Beard. Anneal ezpenM of erecting Ught-bonaei and
■npporttog tiie UghUiiniae lyrtem itooe Uie «reatiim of the. .

383

Itall MTTica dortog t}ie year IBM. Statement of the fcirdgn

B3S

lUl lervlco for the year endtog Juno M, 1868. Statement at tbe

HiD KTvlce bj nilrowds, h in opentlon on tktt SOth Jime and
SOth eoptember, 1B&8. Btatameat of

lUl tervlca by iteamboats, as In opeiaUoD on Sejitainber SO, 1868.
Btatemmt of . . . : ...

IhQ mrka and cut in Bach SUte and I^nttoiy during thB ytar
18S8. Statemont ahoiring tha incraua Mid decreiae of
Uie

IbU urrlce of route* on which ImiiroTeincnte luive been made
and additional expenie inentred. Statement of the

Hall KrTioe daring the ]reu ending Jane SO, 1868. Statement of
the cartaihuent of tha... .

Maili from Bt. Joaeph, HlMaori, to Placerville, California. Hes-
Mge of the Preaident of th« Uottad Btatea. tranmnttting hia
reaioas for &lling to apjnoTe tha joint raaohiUon lelaliTe to
canytng the.. .... .

MiDi to (oirign oonntita. Letter of Ute PoatmaslOT General,
tranimlttiiiK ooplea of oontnda made for cBrrying the

HaUi to foreigii oonntrieaaod the Atlantic and I^dfic cxiaata during
the year coding June 30, 18B0. Letter of the Poelmaater
Qenoal, tnnaniitting Bitlmatea for carrying the

Hiila made daring the year ending June 3D, 1867. Letter of the
Poatmaater General, tranamitUng a atatement of tho ofbra
and oontncta for carrying the

ICaOi cetabUabed daring (ha ycai ending June 30, 1S6S. Btate-
Daent of the laodaod water . .

MaU oootracton tor AkUnrea to deliver (he m^i for the year 1858.
Statement of (ha fineaand dednothmi f rom tiie pay of......

MaU oonbacton during ttaeyeareDdlngJuDe 30, 18(6. Statement
ef ttie cnrtailineot of (he mall MTriceaod pay of the. ..

■aan for hie servicea aa oonfldentlal agent of the State Department.
Letter of the Becntary of State, atking aatborl^ to pay A.
Dudley

Uannhctured artidea of domerttc ptodnoe exported to foreign
oonnbrim from Jane 30, 18M to Jane 30, 186B, State-
ment of

mmtbctared and anmannbotared artialea of foreign oonntrlea, and
domeatic producta d like diaractnr, exported annnally from

1840(0 1868. Statanent of the TBlue of

a of iron, and Iron and ateel, iteel, wool and cotton,
rilk. flax, linen, henp, manllla, aon, and other hempa of
India, al^. anit vonted goods Imported from and extorted
to fordgn cotintriee from 1B40 to 1868; and also domeatic
expoHe of like character tot the mme period*. Btatem«it

exhibiting the nlvea of the

ictniea of iron, ateel, mgu, whua, and all fabrlv of which
wool, cotton, ailk, flax, or hemp la a component part, im-
ported annuaUy bom 1847 to 18S8, inclufire, with the
duttea which aocmed theteon each year reapecUvely. State-
ment exhibiting the ralnei of the

s for the year 1868. Baport of Uia Oommladoner of
?atentB on Arta and.

HaBuJacturea, according to the retnmg of the Seranth Cenaua.
HMMge <a the Pnddent of the United Btataa, relatiTo to
the dlgeat of itatMioi irf

Madoe Corp* of the navy during the yaar 1868. Beport of tiie
oommandant npon the coiwlUkBi of the ..

Mlltoa CcMpa of tha navy, October 1, 1868. Oeneral retnm of ^e
ottcera, nnii miiiiiilmlnnnrl offioeit, mnaldanB, and priYatea
of tha

Jbdae Ooipa of the navy dnring the year ending June 90, IBflO.
Btatement of the eatlmatea fbr appiopilationa fin the mp-
pcct of the Quartenniatar'a department of the ............

Tol. Put. Doe. Pii|c.

Hkrlae CorpB of tlie IMV7 dnrlog the jax ending Jane SO, 1860.
StBlcment of tbe eitinutoi for ^propiiaHons fbr the mp-
port of the Paymutor'B deputminit of tho

Ifutne Ckirpa during the jew ecdiiig June 30, 1868. Stktemast
of the pay and emolamenta of (^oen of the .

Uarloe bospitalB during the yeu endiog September SO, I8H.
Bepoit of the eDglueer in charge, of the progren b) Um
coiutruction of tbe . ......

Marine hoepitali purchaaed or bnilt Sbtlement of the number (rf-

Ifarine hoapitala. StalemMit of the antrc^rlAtioD, uoat of rite,
date of contract, contract price, and date of oompletion <^
the

Uatlne hospll&l fund during the jear ending Jmie 30, IBM. litMe-
meat of the receipta and expendltnrea of the .

Uedidne and Surgery of the nary daiing the year eoding Jane 90,
IB60. Eetlmatea for approprintlona for the nippott of the
Barean of .

Hedlclno and Snigery of the navy of the opemtlona of hti bnreMi
and the medical lerTloe during tbe year 1868. Bqtort of
theChiefof thaUuieaaof

A. — Estimate of the amonnt reqnlred for the rapport of tbe
Bnrean of lledldne and Saigeiy for the year ending

June 30, 1880

B. — Estimate of the amount required for the inpport of the
modical department of TeaielB in commiNion, navy
yarda, naval itationi , Marine Corpt, and Coatt Borrey

for tbe year ending Jdqb 30, 1860

HeichandUe Imported dUTtog th« flacal yeara 18G6,-'BT, and -'68,
legpectiTcly, with the datlei aocnilng thereon; alio the
Tftlne of article! imported free of duty daring the Mme
period. Including thoee made free by act of Hardi 8, IBGT.

Statement exhibiting the valae ot '. .

Hcrchandise imported, re-exported, and coiunmed; tlie esUmated
population and the rate of conenmption, ptr o^iEa, annoaliy,
from ISil to 1868, includve. Statement of tho valae irf

UerchandiM exported annoaliy from 1831 to 1868. Statement «f
the value of foreign and domeitlc . .

Uerchandite re-exported annoaliy from 1811 to 1868, Indntlve.
Statement irf the value of the datiable. .

Mexico daring tbe year ending September SO, 1868. Statements
of the oummerdal reltUona of the United State* with ...

KiUtary reservation of Bock laland. tn the HinlHlppl river. Latter
of the Secretary of the Interior, relative to the prewnt
tituation ot the . ..

MlIltMy Academy during the year endlog June 30, 1860. Eatl-
mateefoT appropriation* for the lapport ot the .

Hililary eetabliahment during the year 1868. Statement of the
expenditure of tbe appropriation for the contjsgent axpenaea
of the

HiUtary Afylnm for the year 1868, Report of tbe CcHnnMoneta
of the

MillUa daring the year ending June SO, 1868. Statement of ord-
nance audordnauoe itorci dittribated to the

KUitia of the United State* for the year 1868. Afaatract of tlie
retnrai of arms, accontrementa, and ammnnitlon of the

Hlniiteri recent, out of any bftlanoe of tbrmer approprlatloni.
Letter of the Secretary of State, aiUng for authori^ to pay
Mlailea of certain ................................

Via. Put. Dot

MhiDcaota dDiiiig tbe jcar laSff. Beport of Oie Oolonel of Topo-

gnphical Engineer*, ob tbeocaiditioDaf thetnllftarynHdiin.
XHnaaotk for the jeu 1868. Annakl report of the BnrreyoT

genend of the public landi tbr the State of

Hint of the Uolted Htntei uid braochea, and ■ou; oRke, during

the jemr ending June 90, ISSO. Illitim«te« for Appropris-

tiona for the snppOTt of the

Unit of the Onlted Bt«t«t and hranchei, and tmj office, daring

the jear ending Jnne SO, 16S8. Beport of the director ^

the operatltHU of the ....,,

Mint of the United Statee and Its branches during the yemr eodtng

Jane 30, LSM. Statement of the tunoont at depoalta and

ooinagfl of the

Unt <rf tbe Dnil«d States and branchw. Stateoxint of the amount

of coinage from their orgaolMtloD, in 1T93. it the doae of

the fiscal year ending Jane SO, 1868, of the

ItiDt of the United States at I^Uadelphla, from 1T»S V> 186B, iu-

cloiire. Statementof the amount of coinage at the

Hint of the United Stales at San Frandwn, from 18S4 to 18&S, In-

cIosiTe Btktement of the amount of ooinagi' at the brudi-
Umt of the United SUtea at New Orleans, from 183S to 1SS8, in-

clnilTe. Statement of the amonntotcolnageat thebruch.
Hint of the United States at Cbariotte, N. 0., from 1B38 to I8SB, in-

clulTe. Btatemeot of tbe Mnonot of coinage at the branch.
Hint of the United Btates at Dahlonega, Oa., from 1838 to 18SS, in-

clndTc. Statement of the amount of coinage at tbe branch.
Hint of the United States and branches, bom 1804 to 1868, Incln-

dre. Statement of tbe amonnt of domettic gold dep««ited

Hlgeellaneona claims. Letter of the Secretary of the T^eMUiy,

transmitting a rtatement of payments of

Hlnourl for the year I8fi8. Annnal reportof the mrreyor general

of the public lands for the State of

Mniad, lateconsDlar agent of the United Stales at JafEb, T^tterof

th« Secretary of State, reUttve to the oLdm of J. B.
Hoscat daring tbe year andtng September 30, 18r~

ci Uie oommerdal reUtlwis of tbe Unitisd Statea with.

Nutical Almanac daring the year ending Jane 30, 1860. Esti-
mates for appropriations for the eipensea of compiling and
printing d tfae .....

Nsutical Almanac daring the year t8G8. Report of the progrsM
and condition of the .

Ksnl A<xdemy daring the year ending Jnne 30, I860. Report
of the ISoard of Examiner*, of tbe oooditlcm and operations
of the

BsTsl Academy daring the year ending June 30, IBSO. Brtl-
mates for appropriations for the sapport of the

NsTal Asylam darlag the year ending June 30, 18fi8. Statement
of the operations of the -

Nsial Gcmmnndeis In the Gnlf of Mexico. Message of tbe Presi-
dent of tbe United State*, transmitting oopiea of instmc-

Ssnl hoqiltalfl daring Uie year ending Jnne 30, IBBD. Estimates
for CMiftmction and completion of works and repairs at the

HaT*t magailDM daring the year ending Jane 30, IBBO. Btti-
natea for oonstrnction and oompietlon of works and repairs
attheseTera)

I. Put. Doe. Pifs,

igln

Kftral Obaerratoiy, 8u;.,of theoperatloni of that iiutitatltni during
tliaywr 18S8. B«pon of the comnuuidBi of the ....

NaTsl ObaoTiitoij and Hydrogi^thlOBl Office duilDg the yeai end-
ing June SO, 1S80. EaUmalea for Rppropriatknu for the
lappOTt of the ..

Nknl praetiee-ihip Preble dnring the j«k 18S8. Report of Com-
numder Cnven, of thecraiw of the ...

Kavlgatloit. (Sm Omaeni ami JVocvotm.)

HftTj Depubnent dnring tb« yeu ending Jnne SO, 18S0. BbU-
nifttes for ftpproprlktionB for the fuppottof the .

NkT7, of the operationB of the nsTj mnd the Smrj DeparimMlt
during the jeftT 1868. A"""»J report of the Seenituy of the.

A. — list of deaths, redgnationa, and diamiMiraie in the
nary dnce the list report

B. — Code of regnlotkau toiUiegaraniiMQtDf thankTy,
prepared by dltecUoa of mst of CoDgiea paaud
M»W!h 3, 18S7

0. — Beport of boud of offioan a^iolDted to wttneei the
examinatitm of acting mldihipmen, and examine
into the state of the pidiae dWdpline and general
management ot the Mafal Academy at Anniqio-

111. ad

D. — Beport of Uie cruln of ^ piaetioe-diip Frable,
nndar Comd'r Craven, oommaodaat of midthlp-

E, — CSonunonlcalion from Oomd'i Maiuy, inparlntendent
of the Karal Obaemtoiy, &o., In ralatfoa to
the voik aooompll^ied at, and the wants of tliat

IniUtnUMi

F.— Beport of Prof. Wlnlook, of the progreai and itKte
of prepuatiMi of the NaotlcaJ Alnnnao niukr
biichaige ..- ..... .«..

No. 1. Bitlmate ^ ^f(io[>iationi Tequired for the office id
the Secretaiy of the Navy and the aonthwert
eiecntdve twilding, for the flual year ending June
SO, 18B0

No. 2. Beport and detailed eetlmatei of the Borean of
Tarda and Docke

No. S. Beport and detailed eetiniafaB ot the Bureaa of
Ordnance and BydrogiafAy, including thoae of
the Naral Aoadnny, Haval Obeervatory, and
Nanttcal Ahnanao.......

Ho. 4. Beport and detailed MttuMtea (tf tlie BuieaD of Oon-
itmctiMi, EqniioDent, and Bepaii .

Ho. y Beport and detailed Mtlmatei of the Bmvnn of Pro-
Tidooe and Clothing....

Ho. e. Beport and detailed ciHmaUa of UuBnnan of Uedl-
dne and Soigery . . .

N*. 7. Beportof the Commandant of theHarIneCorpa,aiid
detailed ertimatea from the paymaater and qnartei-
nuwter of the oorpi ...

No. B. Oennal eetlmate (dvll) of the office of the Becretary
of the Navy and bnieatu of the department

No. 9. Qeneral eatiinata tat loiithweet esecaUre bnildlng. .

No. 10. Oeneral calimate for all objeota under the control
of the Navy Departmtat ....

No. 11. Qeneral eatimate Sir tbe navy proper ....

Ko. 11. (HaeiKl eetliiuta ot tha Uuina Ctnipi ....

. hR. [hK. Page.

Title.

Vol.

Plfl.

Doe.

rm-

Ho. 13. Q«nenl «riiiiuto for Epedsl objeote tinder tlw con-

i
g

4
4

1
3

2
14
40

48
TO

1
2

91
9S

99
it
B9

101
99
86

1861-'&a; lepnjmeDtiuid tnuufentbrthasMne

raw 18BT~'68 ; tunoonU dnira from the treaanrj'

WCM on hMid June I, tSGB, witii the tnmi
which have been curied to the '•■niplm fund"

tingent ezpenwi of th« n&Tj," la lettied and
kUomd St the office of the Foniih Auditor of the
trewoi?, from Jolj 1, 1897, to June 30. ISftS...

' Marj department tot the y«r 1868. Letter 'of the Secre-

710

•tattona without regnlar ponen. Letter of the Secietar; of

gr^le of the navy and Marine Cotpe, the nmnber of em-
ploTti wider iAai«e of the Navy Department, and nnmber
of Temalt of the navf . Utter of the Secretary of tbe

Mveial oary Tardi dnring the year ending December 1,

the Dan, namea of ooal agtaU, and anunmt paid tfaeu ai

'"'"^c^,•?»"S's•^■"'"■ ^■^•"•^

KebiMka for the jear 1858. Annual report of Um mn^jor geoe-

mentofdieaeT*nlnaT7rardi. Letter of the Seeretar; of

SaTj, trannnitdiig a itatement of ooatatda mode by the Bureau
of Tarda and Docka. Letter of the Hwretarr of the

II*TT rvdi of Uie United State*. A itatement of the oort and

Me« Oranada during the year ending September 30, IBSB. Btate-
He»l(«ilro for the year 1888, Report of the Colonel of Topo-

1 S9T
i 631

loss

Cooc^lc

Vol. hit. Doe. r*«^

New Hexko fm the fear I8S6. Annud report of tlw muT«70i
genenl of the pabUoUndi bt the T«iTitoi7of... .........

New York, hj Uent. Morton. Memoir of the dangen M>d defencea

(MfoTB fbr •nniial mppllm under the cognizance of the BamD of
Tard* and Docks for the yeai 18fi8. Abstract of

Ordnance, for the Krvice of the army during the year ending Jnne
SO, liflO. ^tfanatea uf the Colonel of

Ordnance of the Halted Btatet annj, of the operatlona of his dqiaii-
meat during the jear ending June 30, IS58. Annual report
of the Colonel of ......

Oidnaoce and ordnanoe itorea dlatributed to tha militia ddring the
year ending Jnae 30, 1668. Btatement of the

Ordnance and ordnance Btoree Uaaed to the arm; and the aeTenl
military poeta during the year ending Jnne 30, 18SB. Blate-
msnt of the -. ...................

Ordnance and Hydrography of the navy dnring the year ending
Jnne 30, 18flO. Batlmatei for approprlatloni for the anp-
port of the Bureau of .

Ordnanoe and Hydrography of the nary, of the operations of hia
otBce during the year ending Jane 80, 1860, Beport of the
Chief of the Bnieaa of

Papm aeBampaBumg tht abott r^eri.

A. — for pay and contingent ezpenaea of the bniean ....

B. — For pay of officer* on ordnance duty .

C. — For ordnance and ordnance store* ........

Spteial. — For arming seven gteam-sorew sloopa-of-war ..
D. — Btatement of oast or esUmated value of slorea on hand

at the several navy yards on the SO^ June, 1858

E. — Statement of the number of days' lahor and cost there-
of at the mpecUve navy yards during the year end-
ing June 30, 1SS8

F. — For the purchase of articlea and incidental eipeosea
connected with the Naval Observatory and Hydro

gr^>hlcal OfBce..

Q. — For the pay of superintendent and offloers on duty at

the Haval Obeervatory and Hydrographical Ofllce..
H. — For the erection and repair, &c. , of buildings and for

contingent eipeuseaat the Naval Academy

I. —For pay of officers, jtc., at the Naval Academy . . -

J. — For Nautical Almaoac ..

Oregon during the year 1858. Beport of the Colonel of Ttqtographi-

cal Engineers on the condition of the military roads in . .
Oregon for the year 1858. Annual report of the surveyor geni

of thv public lands for the SUto of

Onvon and Washington Tenltories. Letter of the Third Auditor
of the Treasury, on the subject of claims growing oat of In-
dian hostilities in

Oregon coaat. Directory to aid the navigation of the ...

Omgtm and Washington. Letter of the Secretary of War, trans
mlttlng ttie topc^raphlcal memoir and report of Captain T.
J. Cram, relattve to the TBrrltories of....

1304
1313

uy Google

hdfic wagon rowb oonitrnetnl tindai ttie dincUoa of the Interior
Departmoat. Letter of the Secretarr <tf the Interior, tmii»-
mittiog reports npon the sevenl

hnciM; dmlDB the jewr ending September 30, ISfiB. Btatementa

oi the oommendal reUtion* of the United Stat«i with

„ « anlrlag in the Doited State* bf ma during the jeu
1868. Letter of the Becretuy of State, tranmlttbig a state-
ment of tlie nnmber of .

Patent Of&ce. Letter of the Secretary of the Interior, trannnitting
Information relatlTO to the Advlaoiy Board of Agriculture of
tha 1

hieny, of the operatloDi of his office daring the jear 1S5B.
port of the Conunlaeloner of ...

Menta have expired daring the year 1SS8, with thdr InveDtloiu
and ctaB. An alphabetical list of the nam«i of perM ~

Fttenli for iDTentione thu hare eiplied daiing the jear 1838.
dasified liBt of the

htenta tor deeigne that hare expired duiing the year ISOS.
clu^OedlUtofthe

Moiti for intention! or diacoverlee, and far dealgni, have been
granted during the jeai 1668. An alphabetical liK of per-
son* to wlioin ... .

Malt* for inrentiuna and diacOTeries giauted during the year
185S. A daMlfied list of the

Menta granted during the year 185S. A list of ninaeeaf...

Ptteati granted during the year 1858. A list of addl&xtal Im-

FRtenta entered daring the year 1858. A list of dlBch^mera of

Patent extenibMig granted during the year ISSS. A lUt of

Faicola fbr designs granted during the year ISfiS. A list of

Patmts for inTenOons and diacoTsriea istued during the year 1868.
Description and claims for ...

lUenti &>c the year I8S8. Plates and illaitratloni accompanying
ttia report of the Commissioner of .

lUents, cm agriculture and sgricaltural itatlstica for the year 1868.
Beport of the CommissloDer of..

Pi^ and emolumenta of the ofBceie of the navy and Marine Corps
during the yew ending Jane 30, ISSB. Statement of the ..

hymaster General of the aimy, of the operations of his depart-
ment during tiie year eadlog Jane 30, 1S6S. Eteport of tbe.

pinaster of the Uarine Cotp* during the year ending June 30,
1860. EsUmateeof the

hynents from the treasury from 1840 to 1868. Letter of the
Secretary of the Treasury, transmitting a statement of the -

Pnitentiary in the District of Columbia for the year ending June

SO, I860. Bitimat^ for uppropriatioos for the supportofthe.

PenitantiHy in the District of (kilumbia during tbe year ending

September 30, 1868. Annual report of the Wa^an of the. -

Pndoiia during the year ending June SO, 1860. Estimates for ap-
propriations for the payment of .

Aariona, lowing the operations of bis department for the year
ending Jnne 30, 1B6S. Beport of the Comminloner of. .

P^Mtt ueflGayaayiiy Us otcei npori.
A. — TU)alar statement showing the nnmher of origluil
claims lor army pensions, and epplicationi for Increase
of those previously granted, and the aggregate annual
amount of the same In the different States and
Territories for the year ending June 30, 186S ..

lyGOOgIC

T,...

Viri.

p>n.

Doe.

Part-

peniiou allowed In the dlfl^nt Bteto u>d Tenlto-

l»

1
T
1
1

2
2
t

t
2

1
1
S

I
1

1
1

i
i
*

i
i

8&
8&

I>
M

OD the rolU, uid kggregUe jeulr fttootint of thair

D.— TabQlu itetemcDt showing the amonat paid to *tmj

Bgenta for paying aimj peniioni in ths dUforent
States and TetrJtoriea on the 30th June, 18G8

1. The UtUnctg in the banda of ogenta in the wreial States

ess

and number of clalmR tea incriiaae of pemdoiki admlt-

S. The nomber on the mlli In the Mvenl BtatM and Terri-

4. The amount paid in the aeveial Btataa and Territoriei

the oommerdal relatlonaof the United Stale* with

of the commerdal relation! of the United SUtei with

F0(t Office Department daring the year ending June 50, ISCB.

i 644

304

i 671

Port Office Department, for the flical year ending Jnne SO, 1860.

A.— SUtament eihtbiUng the receipts (tf the Port Office De-

C— Exhibiting the reTenaet and ezpenditniei of the Mreial

D.-Eihiblting the number of lettew, dronlan, haadUIU.
by "owriere," and the amounta reoeiTed tar <mr-

the engineer In charge of the progreaa In the conitructioa

Fort Office exteodon daring the year ISbB. Buport of the eoglDeei
In chaise of the progren In the ereotlon of the

126
148

Gooc^lc

Tot. Put. Doe. P>|*.

npliiiMliii Oencnl, of thtt opAmUotM of his defortmant during fli«
fMi eoding Jims M, 18U. AsDtul report crfUw ....

BbUUtb to «x|h«h m«U •gonto .................. ....

How Toikand New OrleMUTonte.. ............. ........

St. Loola and New OrlaMW dmU

Orerlaad DuUl iffiits. ...... . . ..

TehoMitepea rente........... ...

DUhronte

Hie eipeneee of Uifl depBrtmeat. .....

NuDbeirof poatottoee.......

IVuwpOTtktioD itatWlat

BereDneandezpandltDm.............. ..

BitiiMte «f reodpta and azpendttoree lo 1S(9

Omm Hid fbrotgu mall •arrtoe

Oroat OTsrland mail

Beport of the FInt Aadataat KMniMtM Oeneral, of the nukU

■errloe abroad ai lnopei«Uon on September, 18A8 ....

Amount paid for ooean ateamahip and breign mall lerTlae..

a Qaneral, for the jeair ending Jnne 90, 18B8. * nnnf ]
i^Knt of the Beoond Andatant . .............

P^tn atcaapaafM^ It* aAoiv r^orl

A. — TaUeof mallMrrlce fortiMTMreDdlng JoneSO, 1868..

B. — Namber of mall tontea, mail cootncton, ronte agenta,
local agents, and mall mcaaengtm, on Jane 30, 1SB8.

C— lUlaerTioBlntbaBtalMafUlchtgui, btdlana. Illlnob,
Wlaoondn, lom, Wwonrl, MhnMaota, Eentncky,
TUue«BM, *'*'""«, HlidHlppi, AikanMa, Loolal-
aaa, Texaa, Oadfonil*, and the Territorlee of Ortgou,
New Mexkw, Utah, NebraAa, KaoM, and Waah-

D.-^tallroad aeiiUe, •§ In opotntioo on the SSth September,
1868

E.— Bidlroad aerrioe, •• in operation on the 50th Jane, ISfiS.

F.-^teamboat ■errtoe, ae in apention lOtfa fieptember, 1608

G, — Table ahowlog the locreaae and decreaae of mail trans-

poitatiov and ooat in each State and Tairitorr dorlng

the Tear endli^ Jane 90, 1808

H.— Detailed atatement of nmtee on whldi improrementa

hare been made and addiUmal expense hi«aned

r G«neral, tianMnltthig coi^ea of oontmota f<>r eanjlng

the maili to foreign oonnMee. I«tter of the

Poabnaater a«neral. Atlomej Oeneral, nd Seoretarf of the IVea-
tarj, as to the condition of the pnMic bnlldingi at Hilladel-

phiA. Report of the .

Pnfanaater Oeneinl, tranamltting theannnal report of fines imposed
npon and dednotloDB from the pa^ of mail ooabacton. T '

terof the

ml, tranmnttttng eatinntea far the aerrloe of the
Poat Office Department lor ttie flscal jear en<Ung Jnne 3i

IBM. Letter of the

IT Qeneial, tnoamitting; eathnatea for carrjii^ the malls
to foreign CDnntriee and Um Atlantic and Padflc ooBsta dmlng

the Tear aiding JnneM, 1860. Letter of the

Foalmaater Oeoetal, tnanittiDg a Uat of darki and other persons
emplc^ed in tiie Post Office Department, and thrir compen-
sathia, during the /eat 1858. Litter of the

C.oogic

FoitnxHter Qeaenl, tnnKoItUDg a atateuMtit of the ooatlogent
eipaoRM of the Pott Office DepMbnent during; the feai end-
ing Jaoe 3», 1868, Letter of the

Foetmieter Oenenil, trvngmittiog t. etatement of the oSan fat cmzrj-
Ing the m^U, l&nd end water mails eeteblished. additioiul
slloiTuicefl made to contractors, and ciutailments of mail
MiTice and pay ordered dnrinf; the jear ending June 30,
1B68. Letter of the

Freddeut of the Untied Statea, on the atate of the Union, with.
sccontpaUfiDg documeata and repoita. Annual meaa^

anipanfiiif IM atoe*.

Bight of MMch—

Mr. Dallas to Mr CaM, Jtme B, ISBS

Ut. Dallas and Lord Ma1meabaT7, June B, 1SG8

Karl of HalmeshuTT to Lord Napier, June 11, IBM

Hr. Casa to Mr. Dallas, June 30, 185B

Ueiican affaira —

Hr. Forayth to Mr. Cass, June IT, 1858

Mr. Forsyth to 8r. Don Louie Cuevas, June IT, 1858

Ht. Fonyth toMr. Caw, June 19, 1856

Hr. Cub to Hr. Forayth, June S3, 1858

Hr. Forsyth to Mr. Caaa, Jane 35, 1858

Hr. Cbm to Mr, Forayth, June 15, 1B58

Mr. Forsyth to Mr Casa, Auguat U, 1B68

8r. De CasUllo T Lansaa to Mr. Forayth, August 10, 1868„

Mr. Forsyth to Mr. Caas, August 31 and Norember 22, 1858.

Mr. Forsyth to Bt. Caitltlo T. Iausbb, October 30, 1808..
Central Amerioa —

Hr. Can to Mr. Lamar .... ....-.-

Hr. lAmar to Mr. Om, September 29, 185S

Br. Uoia to Ur. lAmar, September Ifl, 18&8 ........

Hr. Jerea to Mr. Caas, October 4, 186S

Mr. Lunar to Mr. Ca«, October 28, 185S

Mr. Martlnei to Mr. I^mar, September 26, 185B...

African negroea —

The Freddent to Ur. Mcl^n, September 7, 18fi8

Mr. UcLaln to the President, September 8, 1858

Ur. Qarley to the President, November 30, 1858

Hr. Bainey tothe President, October 23, 18G3

Preeident of the United States, tianamitttog copy of the treaty lie-

tween the United Statea and the Kingdom of Siam. Ueange

from the .

Fraddent of the United Btatea, relaUre to visitation of American

vessels by officers of the British navy. Ueasage of the

Preeident of the United Blatos, relative to the importation of

A&icans into the State of Georgia, or any other State oE this

Union, Uessage of the .

President of the United States, tianamltUug correspoadence rela-
tive to consTklsr offlcers engaged In business, in violation of

the consular law of IS96. Message of the

President of the United States, tranamittiog copies of the liutnie.

lions to the oommanders of the African squadron, siooe Hie

ratification of the treaty of 1842, Message of the

Resident of the United States, tranamitting copy of " Begulationa

for the consular courts of the United States of America in

China." Message of the . ...

Preddent of the United Slates, transmitting oopiea of instructions

to naval oommandas In the Golf of Hezloo. Hessage of

iX'-ooglc

Frttfeot of the UDited Stale*, tnnuDlttlng oopiw of coiTMpond-
cDoe reliitiTe to th« deanoce of tmmIi M the port of Mo-
Ul«. HwBgeof the

Fnddent of the TTnlted BUI«a, telstlTe to the port cdBce claim of
Ouniickeiid ItamHj. UcMage of the .

Fnrident of the tJnlted SUtet, tnuwmlttlng copy of the latter of
Mi'Mie A. Johnson uxi Joecph Wllli&ms, In relation to the
daddon upon the Cmrmic^ and Bomiey claim

Ftodoit of the United Statu, of bii harlng tranimltted to the
Senate a digest of the itaUstloi of manuhctlraa, acoording
to the retnmi of the Seveiitb CeoBua. Meaaage of the

Pmldttit of the United Statee, tntnamlttlng a itatement of the bet
collected bj conaoli general, cotuinla, oommercial ageoti,
and noDBiilar agents loi the fear 1S6T. Message of the

Trakknt of the Dnited Statea, relative te advancea made hj Gov-
emot Jamea Donglaaa, of Tauconrer'i Island. H«iag« of
the

Pnridentof the United Statee, relative to the'pa;of ofSoeia of the
IWTT engaged in the ptepaiatlon and publication of Wtlkea'
Exploring Expedition. Heenge of the

FM^lent of the United BUtet, relative to the protection of Ameri-
can dtisma In tranilt over the aeverat tontea tbrongh Cen-
tral America. Ueaaage of the

heddoit of the Uotted Statea, aaking that provldon be made to

pTeserre the credit of the United Statea. Memage of the... .

FlMidentof the United Statea, commaDlcstiQg the report, of the
•pecial agent aent to Vanooaver'a Island and British Colnm-
fcia. Meoageof tbe

htaideiit of the United States, asslgnlug reasons for falling to tip-
pTOva "a joint resolution in regard to carTTlng the United
Statea nulla from St. Joseph, MlBSOorl, to Placervllle, Call-
fomift." Meaaage tioa the

Pnddent ta the United States, In regard to the acquiilUoa of tbe
bland of Cvb«k Message of the..

PtWafala&d cUma. Relativeto

PtorWeoa exported annnalljr, from 1821 to 1B6S. Statamentof
the valne of breadstn^ and ....

Pmisions and CloUiing of the uavj dnring the jear ending Jnne
30, 1860. Eatimatea for appropriftioos for the support of
tbe Buranof .. ....

FroTiiiona and Clothing of the navy, of the operations of IiIb ba-
raan during the fiscal year ending June SO, 1868. Beport
of the Chief of the Bnreau of ....

P^m ancaajiaa^By ll« Aott nporl

A.— Bitimalea fat the expensn of the bureau for the flacal

fsar ending June 30, 1S60..... .

B.— Esttmataa for providODaof the navy

0. — Ertlmates for contingent for the •oarj

D. — ttt idmbnrie appTopriaUooa for clothing ismed to desti-
tnto Americans bronght hmae In national ihipa from

Hlc*n«minl8ST

B. — Statement showing the value of [vovlaioiu, clothing,

and Buall atorea ou hand . ......

F. — Btktement showing the value of shipments made bf the

bmcku to foreign stations

G. — Statement showing the costof ptovidons, clothing, and

■mall stores condemned .......

E. — Abstract of proposals received for naval nppliea ... —
L — Abatiact of pro[iasaIs recdved for small stores...— •••.

ty Google

ProTldoD* and Clothkig — report of Chief of Barean of— p»pen kc

paajlDg — OoDtiDDed.

K. — Abstnet of propoMdi rwelred tin frash beef and Tege-

teblM

L. — Abstnct of propoaals revived for soap, candle*, Ac

H. — Abstract of propo«als received for trvuportatton of ttoree.
N. — Statement of oontracta made during the year

Krusda dnrbig the year endlog September 30, 1868. Statements of
the ct>mmeTcial relations of the United States with

PnbUc bnildliiKs confided to the charge of the Treatni? Depart-
meal. Beport of the engineer In charge of the conitractlon of.

Fobllc btilldlDgB oouatrarted, oi In course of constmctJoa, since
1S50, for which appropriations hare been 'made. Btatemeut
of the

Pablic Buildings, of the operations of hU office dnriog tiie jtM
18&8. Annnat report of the Oommisrinner of

Public bnUdlngs at Philadelphia. Beport of t^e Postinaet«r Qene-
ral. Attorney Qeneral, and the Secretary of the Treaniry,
as to the oondition of the

Pnblic bullrllngi in the Territories Letter of the Secretary of the
Interior, transmitting plans and estimates for the

PnbUc tanda during the year ending June 30, 1B60. Estimates re-
quired to meet eipenaee of collecting the Tevenoe from the
sale of the

pDbllc Printing. GstlraatM of appropriations for office of Super-
intendent of the . . .

FnbUc debt on Jnly 1, 18S7 ; also, tiie amonnt of public debt on
July I, ISB8, Inclndlng treaiary notes Issued onder act of
December 33, 18fiT, Statement showing the amonnt of the.

Paget Bonnd and the entrance to Colombia river. Letter of the
Beoretsry of War, staling that there ars no plans noi i
mate* for the deftaieeof......

Pnisera. I«tter of the Bectetary of the Nary, trantmlttlng a
statement of the nnmber of TCMels on foreign stations with-
ontregnlar .

Pniaenin the aary not actively employed. Letter of the Secretary
•f the NaTy, relaDre to the nnmber and name* of

Qoartemiaater Ooneial, fbr the sertlce of the army during the year
ending June 30, 18t0. EbUmatee of the

Qaartermaeter General of the United Btatefl army, of tba opera-
tions of his department daring the year ending Jnne SO,
186B. Beport of the

Qnaitermaiter of the Harlas Corps during the year ending Jnne 30,
ISBO. Estimates of the

Qoarten of the army during Vbe last ten year*. Letter of the
Secretary of War, tnuumittlng a statement of the expendi-
ttueilbr baitacki and.. .

Ballroadi, noder Tvloas acta, from 18S0 to ISfiT. Statement of
the amount of lands granted to the Mveral State* ftir. . .

Ballroctda in operation on Jane 30 and September 30, ISSS. State-
ment erf mail service by

Beceipta and eipendlturea of the government for the year ending
June SO, 1B58. Beport of the Secretary of the ItcMUTy, of the

Beceipta and expenditures of the government for the quarter of
the fiscal year ISM, ending September 30, 18SS. State-
ment of the............ ................

Bicetpt) and ezpoiditiires of the miriaa hospital fund daring the

jeai ondbig Jane 30, 1SS8. Statement of the

BacetptB of the goTemmeiit ttom ciutoius, pablic lundi, and all
other aonroeB &om the begloning of the goTemmeDt to Jans

30, 1868. SUtement of the uaount of the

Becelpti and ezpotidlturu under the dlrecUon of the Coannlaaloiier
of Pablic BuHdings dnilng the ;ear ending June 30, 1858.

BtatemeDt of the

. Stodpta of the Poet Office Department dnring the jear ending Jnue
30, 1B&8. Beport of the Auditoi of the Tt««biii7 for the

Poet Office Department, of tha ..

BecctptB and expendituna for the goTcmmenl during the jear end-
ing June 30, I8S8 Letter of the Secretory of the Treasury,

tiaiiBmitting a italement of the

Bacrfpta of reTeone during the Sacol year ending June 3D, ISSO.

Letter of the Secretary of the Treusnry aa U> the estimated . .

BeoeiplB and ezptDdlturea of the Chickasaw trust fund dnring the

year 1858. Letter of the Secretary of the Treasary, tiani-

mitting a statement of the

Badpfocity tieaty with Great Brit&in. Statlttica of the tntde under

the

Be^rter of the TreaMuy, of the operation* of hia office during the

yesi enflng Jone 30, 1858. Annual report of the

BagsUttona for the goTeniment of the nary, prepared by direction
of act of OoDgreM <rf Uarch 3, 1867. Beport of the board

appointed to draw up a code of

BedgnaUooa in the nary during the year 18S8. Statement of the,
BcTauM. Letter of the Secietaiy of the lYeuuiy, submitting a

plu) for rodndng the ezpeusn of the collection of the

Bey, CaiUd State* comml at St. Martin. Letter of the Secretary of

State, as to tha expediency of increasing the salary of Chas. .

Bke exported annually &om 1S2J to 1858, IncInsiTe. Statement

irf the quantity and ralneof the .

fflTert dnring the year 1858. Beport of the Colonel of Topi^iBph-
ical Q^inasn of the army, of the progress In the Improve-
ment of .

Boads i> HlnneKita dartog the year 1858. Report of the Colonel
of Topogr^hlcal Engineers, on the Improvement of the mil-
itary

&ada in the Territory of Kew Uexioo during the year IB6S. Be-
port of the Colcoel of Topograpbioal Engineeia, on the eon-

^tkmof themUitary

Bottb in the T^iritortee of Oregon and Washington daring the
yvr 1868. Keport of the Colonel of Topographical Kigl.

neen, of the condition of the military ..

ioA iiland. In tha Hisaiaaippi river. Letter of the Secretary of the

Intarior, rdative to the military reservation of

Bogae Blvsr IndlaiiB. Letter of the Secretary of the Interior, traos-
mitting statement of amonala dne claimants under treaty

with tha

Banoda, of Tezaa. Letter of the Secretary of War, tianimlttlng
oopieB of eorreqmndence between the ofSceis of the goTem-

Bent and Goremor . . — .-.

Boadaduring the year ending September 30, 1858. Statements of
' d relatlosia of the United Slates with

l«iohIaIaud*dnriDgtlieyearendingSeptemt>er 30,1B6S. Stote-
menta of the MiKunerdal relations of the United States with.

inia dnring tba yMi ending September 30, 1868. Statemenli
tf tha oommerdAl relations of the United State* with ... —

lOSl
1030
1032

loss

>ll'^

Saxony during tha yen eadlng Soptember 30, 18ES. BtetemeDto of
the oomnniTCial reUtioiu of tbe Halted Btatei with ....

Seamen during the jear ISftS. Statement of the recelptii and ex-
penditnrea of the marine hospital fond for tha relief of the
•ick and dinbled

Seamen rqiiterad In tbe wveral potts of the Doited Statei during
tbeye«rMidlDg8eptetaber SO, 1868. Letter of the Becretaiy
of Btete.traosmittlDgan abstract of the retaniiof American.

Siam dnring the year ending September 30, IS&8. Btatemen
tbe commerdol relations of the Dnlt«d StAtes with

Siam. Menage of the President of tbe United States, transmitting
oop7 of tiie treaty with the Kingdom of

Silk, from 1840 to 1868, includTe. Sutement of the valne of tha
imports and exports of the foreign and domostic, and the
home Gonsnraptlon of

SUrar coin*. Beport of the director of the mint of the United
States, of Uie fineness and value of certain foreign .

Silver coinage at the mint of the UDlted Slates and branches, and
r offioe, from 17S3 lo 1868, Induilve. Statement of

theai

Slvta deposited at the mint of Che United States and branches, and
■■ar olBce, tma 1841 to JBfiS, iDclnslre. Statemsat of
the amonnt of domestic

Sntth, of his expedltioD to the Bed Bivar of the Notti). Beport of
Colonel C. F

Sndthsonian InstltuUon. Statement of the anunint of stock held
In trust for the benefit of the

BuUcitoi of the Treasury, of the operations of his office doling Uie
year ending June 30, 18SB Annual report of the

Sodety Islands during the year ending September 30, 18S8. State-
ments of the oommercial retatiooa of the United States with
the 1

Bpdn during the yeu ending September 30, 18!

the commerdal relations of the United States with ..

State, tosnsmltU]^ an abstract of the retams of American st

roistered la the saversl ports of the United Stales daring
tbe year ending Septemtwr 30, 1868. Lettat of the Becre-
tatyof

State, transmitting a statement of the contingent expenses of the
State Department and foreign intercourse daring the year
ending Jone SO, 1358. Letter of the Secretary of

State, asking for Kithority to pay salaries of certain ministers red-
dent oat of any iMlance of former appropriations. Latter of
the Secretary of —

State, relatlTe to an appropriation for transporting destitute Ameri-
cans from ^ctoria to San Frandsoo. Letter of the Sacra-
taiy of

State, asking for authority to pay A. Dudley Haan for his serrices
as oonSdentlal agent of the department. Letter of the Sec-
State, relative to an appropriation to pay certain contingent e:

penses of the Territory of Kansas. Letter of the Secretary of.

State, relative to tbe claim of J. B. Murad, late oonsutar agent of
the United States at JaKt. Letter of the Beci^tary of

State, as to tbe expediency of Increasing the compensation of the
United States cociul at Bremen. Letter of the Secrelaiy of.

State, as to the exptMliency of an appropriation fOt the relief of
Charles Bey, United Statee oonsol at St. Uartin. Letter of
the Secretary of

State, reUUve to Ihr application of Q-H-Qoaodla, United States
coDsnl at Zarlch, for Increased oompensatioD. Letter of tbe
BecretuT of.....

Bble, in i«lBt<on to the monoritJ of P. HcD. Cotliiw, uking oom-
peoMtloQ and relmborKmeDt loi expenae* iDcurred white
eiploring the Amoor lirer. Letter oT the Secretuy ol

BtUe, truiMnlttiOK l^ U>t of clarki and othen emptojed in the
State Deputneot. Letter of the Secretary of ...

Slate, laking an appn^wiation be made for ihe nlaiy of the United
States miniBter rerident at Japan. Letter of ihe Becretarr of.

State, addng an Incnaaed appropriaUoo for the contJngent ezpeiuea
of the Territory of EuBaa. Letter of the Secretary of

State, trangmltting correqwndence relaUve to tbe Inadeqnac; of
the compeiuaUon of oouuIat offioeta, &o. Letter of the
Secretary of . -

Sbl«, tratttmlttlng a Iltt of commordBl agentt appointed in the
BrIUah provlncee by the coual general, and amonnt of feei
received dnriog the year 1806. Letter of the Secretary of..

8W«, telatiTe to tbe daim of Jamca Keanan, Unitad btateaconml I
at Bong Kong. Letter of the Secretary of |

State, aiUog an appropTiaUon to parchaae the DtplomaUc Correi-
pondeoce of tlie BeTolntloD. Letter of Uie Beoretary of

State, traimnittlng a itatemeDt of the commeraial relaUout of the
United State* with foreign naUont daring the year ending
September 30, 185S. Letter of the Secretaty of.

State, tranranilUng a statement of the nnmber of pa«engen ar-
riving in the Dnlted StatM by iea during the year 1868.
Letter of the Becretery of

Btatdlea »t Large. Eitimate* tot tbe pnrcbaw of volnme eleven
of the

Bteamboate. Sxth annna] report of the Board of Inspector! of....

Steamboata in operation on tbe 30th September, 18&8. Statement
of the mall aervice by

Steel, and mann&ctnrea thereof, imported into the United State*
dniiog the Sacal years ending Jnne 30, tSG6, IBfiT, 1S6B.
Statenient of the qnanti^ and valoe of Iron and

Hodu held in triHt for the benefit of the Ghlckataw IndlaiM.
8tat«meDt of the . .

Elockt held in tnut for the benefit at the SmithMolan Inttitothni.
Statunsit of the

eomaer, of hia ezpeditioa on the plains. Beport of Colonel E. V. .

Snperintendent of Public Printing. Satlnute of a[^ioprUtlona tbr
the nippnrt of tbe office, and for paqwr reqoired dming the
year ending J one 30, 1860, tiy the

Si^reme Court of the United State* for the years 18fi4, 18fi&, IBM,
and I8ST. Letter of tbe Secretary of the Interior, trans-
mitting a tabalar (tatement of the expenses of the. .--

Bmgton Oaieral, for tbe serrloe of tlie anny during tlie year end-
ing Jone 30, 18S0. IMmalesof tbe

Sorgeoo Oeoeral of the army, on tlie operations ot hia office dnrlng
the year ending Jnne SO, 1SS8. Annnal report of the

Surveys of tbe War Departanent tbr 180B. Annual report iVom
the office of exidonttona and

Snrray of tbe coast of the United States during the year ending
Jnne 30, 18U. Brtimates for ^ipropriatlona for the oon-
tblMUoaortha

Sarvey of the public landa dnrlng the year ending Jnne 30, 1880.
BalJiwtM for appropriations for the... .

Boivay of tiie pntdlo landa to the 30tii June, 1868. Statement of
the operationa of the -.

Borveyor general of the public lands in the State of Hinueaota for
the year 18SB. Annual report of the

Sitrreyor general of tbe pabllo hutda In the States of IlUnoia and
Haoari for the year 1858. Annual nport of tbe

VM. I Pin. Doc.

i,Cooc^fc

Vol. Put. Doe.

8arreT<n general of the public Uods in the State of Iowa fn the
yew 1868. AmiDiil report of the

Suirejor geoeral of the public lands in the State of Atkanaas for
the year 1B6B. Annoal report of the

Snrrejor genetnl of the public landa in the Btate of LoQldAiia tor
the year 1868. Annual report of the

Sorrayor general of the public IsdcIb In the Btate of Florida li>i
the year IBfiS. Animal report of the

Bnrreyor general of the public landa in the Territory of He-
bra^ for the year 18G8. Anuoal report of (he

Borreyor general of the public landa In the Territory of Hew Mex-
ico for the year 18fi8. Annaal report of the

Snrreyor general of the public landi in the State of CalUomia for
the year 1868. Aiinual teportof the..............

Snireyor general of the public lands in the State of Oiegm for the
year 1658. Annual report of the .....

Surveyor general of the public landa in the Tenitoiy of Wathlng-
ton foe the year IS&S. Annual report of the. ... ....

Swamp land« selected by the several State* nnder tlie acte of Uarch
2, 1819. nod Bept. 2S, 1860. Statement of the qoantl^ <tf. .

Sweden and Norway during the year ending September SO, 1898.
Statements of the commensial ralationa of the United States
with

Swltierland during the year emUng September 30, 1868. State-
ment! of the commercial relations of the United Slates with.

Territories during the year ending June 30, IBfiO. BelimataB for
appropriations for the support of the governments in the

Texas. Letter of the Secretary of War, transmitting oi^ies of
oorreepondence relative to the protection of the frontier irf. .

Tobacco exported amtoally, from 1821 to 1868, indnsin. Btete-
ment of the quantity and value of the ......

Tonawanda Indiana during tbe year ending June SO, 1860. EMl-
matea for appropiiattons for folfllllng treaty stlpulatioiM
with the

Tonnage of the United States registered and licensed annually,
from 1789 to 1868. Statement of the

Tonnage employed In steam navigati<m each year, registered, en-
rolled, and Ucenaed. Statement of the

Tonnage and crews of American and foreign vesBela which cleared
from the United States for foreign conntriea daring the year
ending Jtme SO, 1868. Statement of the

Tonnage and crews of Aniei1aa& and foreign veaals which entcoed
Into the United States front foreign oomitTieB during the
year ending June 30, 1868. Statement of the

Tonnage and crews of the American and foreign veaels wUch
cleared from each district of the United States forforeign
countries during the year ending June 30, 1868. Statement
of the ,

Tonnage and crews of the American and foreixn vessels whidi en-
tered each district of the United States froB foreign coun-
trlesduringtheyearending June SO, 1868. Statementof the.
Tonnage of the aeveral districts of the United States on June 30,
* Statement of the.

Tonnage of the United States, showing the tonnage onployed in
the whale fishery, also the proportioil ot the ssnolied and
licensed tonnage employed In the ooasting trade, oodBshety,
nackerel fishery, and whak flahery, from 1815 to 1868, lO'
dualTe. OmnpaiatiTe view of the ngitUndniidaiKilM..

18«
108

i,Cooc^lc

VM.

™.

».

INK

F«I«-

ment. with the vdoe of the utkJn imported daring the

1
a

I
1
1
1

1
1
1

1
1

ItaHBitir of the UnltMi HMea. of the openUou of hU office
dniing Dte jtu coding June SO, 18S8. Annml Mpoit erf

S
7

1
1
1

s
s

3
S

Teqnlred for the lut three qnmrtara of the flccal ;eu vnUag

n<Miii7 dnrins the ywr eodhiK June SO, 18C0. EMInutei foi

ItaMmr, on the ooodttioii of the fioMCca of the govenmmt fbr tha
yew cndlDg Jiue SO, 186S. AnnnklnfMntof the SecntMy

qiMrter of the Otoai jmt i66B, endhig teptembei

foirlKD ODimtriee for the fbcel year eodlns June

Ho. 4. Statanent exhlUUng the viine of fordgn mei^

dModbe. wdiuiTe of fpede, »Dd •pede espnted,
daring the BMml jtm «Bdiiig Jone SO. iei3--U-
'W and lM«i alio the HameexUbiU fur the flual
Taan ending Jane 80. 18*I-M-'48-'60-'81-'81-

Jnlr 1, 1831; ako the anount of public debt on
Jnlr 1, lose, btoliidlDB traauiT Mtet iwied no-

amd (tcel, and BMDD&ctam thereof, Iniport«d Into
the Doited Btalta dnrlog the flaoal ;ean ending

porad dnrlng tho ItatX ;«an ending Jane 30,

aecnilng Ihareon; alM> the value of arliolea Id-
potlMl fiM of dntr daring tli« Mme period, in-
dndiog IboM made fne b; the act ot Uandi 9, 18&T.
Ho. «. BlataniMt of the average monlUT pricee of carialn
leading artldet ^ dmnertk j^odace at New Tarfc
fef the reaia ending June M, 18ft«-'ftT and IStS.

3«

n,g:,.-,.dtyC00glc

™..

Tol.

rm.

Dm.

Pat*.

No. a. AnntmlrepoitofUudliectorottbenliitforUicfiK^

1
1

1
1
1
1

I
1
1
I
1
1
1
1

I
1

....

s
t

3
3
3
3
3
S
3
3
3
3
S
3
3
3
3

3
3

8
3

owtom-luniaM, conrt-bomea, port office*, marine
hoqdUU, Mid otb«r public bnlldingi ocmfided to

the marine hoapltal fund loc the relief of ilalc and
dlMbled Hamen, In the potU of the UniUd Statei,

A.— Statement exhlUtmg Uie report of the Fiitt Auditor

, B.— Statement ezhtbiting the report of the Second

C— Statement exbfUtiDgthareptntof the Third Anditor

Comptooller on the (^oratiotu of bieolHae

of Cnatoma on the operatloai of hU offlee

J.— Statement eshibtUng the report of the IreMOiei on

18t

I..— Statement exhibiting the report of the Beglater of
No. 18. Statement exhibiUnK the report of the Baperriidng

V
HI

Ho. 19. Statement exhlUUng the rcfwrt of the Usht-ltouw

with variooB Indian Mbee, payable on time...^..

No. 10. Btatoment eshlblUag the amoaot of (took held in

trott bjr the United State* lor the Ohk^aww na-

291
SM

Ko. 17. Statement exhlbltlDg the ^old and *Um oolnage at
of the branch minta and the aaay ofBoa (New

No. IB. Statement eihibitlng the amount of ooln and bul-
lion imported and exported annnaUr, from 1811

orer exportation, and of exportation otar Importa-

90. U. Btatement eibibltlog the ffro«-raIne of exporti
and importi from the begins of the goTem-
m«t to June SO, UW...^

n,g:,.ndtyC00glc

v<xn.

Ko.23.

Ko. 25.

No.

17.

50.

So. 29.

30.

31.

3S.

t ol BecralMT (rf. papen icaMiipanTiDg — Continued.

Statement exhiUtlni; the Muonnt of the lonnags

of the United Statm, midiuIIj, from 1TS> to

June 3D, 1868 ; kin the r^lateied nnd enrolled

and licenMd tounage em^ojed in ileem naTiga-

tioa each ^ear . . .

Btatement aKhlMUnB ih« TeT«ina ooltacted from
the bet^Dtiing of the tovemmmit to June SO,
1866, vain th* Mfen) headi of enatnu, pub-
lic IsikK and mlHelbMoiw Muroet, Indudiiif
loan* and trtatmy notM ; atao tlw expenditnT**
during tbe mme period, and the perliciilar tariff,
and price d lands under whlA reTsnoe from

theae lODroca waa oolleoted

gtatomvit esUUtlnK the nine of mai
artldei of doneatk prodaee exported
oonntriv from June DO, 184(, to June 80, tSM..
BtatBDoot exhibiting thevalneof fbrrignmercbaa-
diae Imported, le-csported, and conaomed an-
aaallT, from 1831 to IdfiB, inoltniva ; and also
the eatlmalad poptUatkni aad rate of consoBp-

t\<m, ftr ttpit*, daring the Mme period ......

Statement exhlUtbig the total valne of Importa
and Die Inperta coDfuaied in tbe United Statea,
eicliaire of specie, daiinf; each fistal jiar, from
18S1 to 18A8 ; showing also the valae of fbreign
and domestle exporta, ezclnilTe of specie, and
tlie tonnage employed during the Mine periods..
Statement exhlblthig a snmmary riew of the ex-
ports of domestic produce, Ac., of the United
8tataa,uuiaall7, from 1847 to ISSS, iDcInslve...
Btalamant exhibltlDg the ralae of certain artMea
imported sannallr from June SO, 181<, to Jnne
30, 1868, (after dedoetlng te-etportatlons,) and
the amount of daty aceraed on each dming the

same perioda rwpecUvelr ..

fltatement exhibiting Ihe nlneof fordgn meichan-
dise and domestic prodoce exported annually

from 1831 to 18S8, iooInslTe

Statement exhibltlog the quantity of wine, sfdriti,
he., imported annoall; from 1843 to 1838, In-

Btatement exhiUting tba valne of imports aimaally
from 1831 to 1838.... -

Statement exhibiting the Talne of dntlaHe mer-
chandise re-exported annnallj from 1811 to 1836,
Incli^Te; aln the value re-exported from waie-
bonat, onder act of Angnat fi, 1846 ........

Btateuant exhlhlttiig the aggregate Talue of tiread-
itsflk and proTisions exported annually from
1831 to 1838

Statement exUblUng tbe quantity and Talne of
eotlon exported annually from 1811 tolS68, In-
clnlTe, Mid tbe average price per pound.......

, Statement exUUtIng tbe quantity snd raltie of
tohaeeo and rice exported annually fnon 1831 to
1868, Indiitlre

n,g:,.ndtyC00glc

TnatUTf, raport of SecreUrj of, papan uoomp»a.j]ag — Continued.

Ho. 34. BtBtcmmt rahlbmng ttie tbIus of Iron Mid mana-
fiu;tiiTea of Itoq. and Iron Mid iteel. iteel, wool
and mMinAMtnrei of wool, miDofftrtnrei of eot-
tm, allk nod UMmfkctare* of silk, flax, liii«n
Mid 11d«d tabrlcs, hemp aod muufactnTM of
bemp, muiU«4 fnn. uid other hempt of India,
and iilk and wont«d good*, imported from and
esportvd tofoKlgnooonUe* from IBiO to 18M,
IncInttTB. and also sbowlDg the domeatio ezporti
afllkaBTtlcleaftnthaiame period*

No. SB. Statement ezhlUtlDS the Talna of Iron and Inm
•Bd itaal, Iteel, ngar, wlnn, and all other
Ulrica of which wocd, ootton, dlk, flax, or hemp
I* a oomponent part, Imported annoill; from
1847 to latiS, inclodTe, with the dnUea whkii
amraed Ihcreon dnring each fear, reepcctlTelf ,
and btaadlM for the jtt,n 185B-'6T and 18B8...

Ho. 88. Statement axhlbltlnK tho esporl* to and Importa
from Canada and other BiiUah pnaeearioni In
NoTtlH Anntea tiom Jnl; 1, 1891, to Jnnc 30,
11SB

Ho. ST. Statement exhibiting the amountofgoaditn ware-
home 00 Jnlj- 1, IBST, and on the fint of eadi
■ucceedlng month antilJnne 30, 186S..

No. SB. Btatemeni exhibiting a ajnopili of the retanie 0t
the banks in the dlflnont Btatee at the datea
annexed

No. 9). Btatemeut exhibiting a oompaiatlTe view of the
ccmdltion of the banks In dlRCrent ucttona (tl
the Dolon In 18M-'55, 1866-'56, 1SGS-'6T, and
185T-'68

Ho. U. Statement exhibiting a general statement of the
condition of the liank*, according to retnma
dated nearnt to Jannarj I, 1858.

No. 41. Statement exhibiting a comparative view of the
oonditirai of the bank) of the United Btatea,
according to retame neareat to January 1, 1834,
, 1836,1836,1837, 1838, 1839, 1840, 1841,1841,
1843,1844,1843, 1846,1847, 1848, 1849,1860,
18S1, 1834, ieS6, 1836, 185T, and 1838

No< U. Statement eihituUng tbe amonnt of mooeTt In the
United StatOT treaanry, amonnt of drafti out-
standing, amonnt lobject to draft, amount of
recdpta, and amonnt i^ drefla paid, aa abown bjr
the TVeaaurer's weeklj exhibit! rendered doling
tbeflecal jatr ending Jnne 3D, 1838 ....

No. 43. Statement exhIbltlDg the Talne of export! of the
growth, produce, and mannfiuihin of the United
States during the Bscal jear ending Jane 30,
1868

No. 44. Statement exbiUtinfc the nport of the Bwird of
OommiMloneTa appdnted hf tbe Secretary of the
TtMuaj npon life and mrtboala..

No. 46. Statement exhibiting the annual expense of erect-
ing llght-hoiu^ and aapporting the light-honae
sjstcm rinoe the creation of the Ught-hotme
Board, and also the expense for the Hune namber

of yean preceedlng its ealablishment

neainiT, tranimitting a itatcment of the recelpta and expendltnree

of the goTemmont for the jear ending June Sd, 18S8.

Letter of the Becretaiy of the

-iTh^b

TiMwiT, tnixmltting • ■tatenant of pkjiiwiit* for mlMallaneMM

rUms. letter of Ui« SeoraUrr (rf the

Titttaij, ta to thg oonditiaii of tha pnblio bnlldlDga at Phlladel-
phik. Beprat of the Postmaater Qaneral, Attcmiej QBoerBl,
■ad the SecietBrjof the.. . 1

Imtarj, faaucmlltiiig ■tstament of the namia mnd nlaiki of
penon* empkijiKl cm the CoMt Snrref . Letter of the Sec-
retary of the

TrmMBTf, ieUti*e to the i*-o(Mning and re-examhiloff Mttlemenli
heiettJbre made of aooonnts «ti(h owtalu StttM utd dtlee.
I^ttcTof the SecretaiTofthe..

Tnataij, tniumittlng the report of PralcMor Alexuder h to the
relatiTe nine irf the oidiwge «f the OnUed SfaUe* and Qieet
BrttalD. Letter of the SecretHT of the

TVtMiuj, tnaamlttiiig a report of oonttngent espenie* iDoarred by
the nrciKl iroTemon of Kmmm Tentlorj. Letter of the
BecretaiTof Uie............ ...

Tmwij, trmnnnltting a ilatameDt of tiie otrnttageDt expetkiec of
the Treasmr Uepartmeat dnrloR the jear ettdlDg June 30,
IB&8. Letter of the Georetarr of the

Tnanirj, fobmltUDg a [daji fur ladndng ths expeuMi of the eol-
lection of the leveniM, Letter of the Secretary of the. ....

IitMorr. In lefmnoe to the expert end Import tnde with Qrakt
Briton and Fmwo for the yean 1S53, 'U, '&S, 'SG, hmI
166T. Letter ^ the Secretary of the

^ciHry, tnuumittiiig the anonal report of the Baperlntendent of
the Coaat Sorrej, ihowlDg the progreie in the mrTej dnriog
tbeyenr 1S68. Letter of the Secretary of the

^eenrj, tnuumltting a Ibt of clerki and oUierB employed in the
Tmniry DrpsrtmeDt. and their eompenwtioD, daring tlie
year IBM. Letter irf the SDcrstary of the

Tneanry, •■ to the eatlmated reoalpti of reTettue from ciutoma,
pobUo lands, and other loiirDM daring the fiacal year ending
Juieao. IBSO. Letter (rf the Seetetary of the

l^ettnry, itatiDg the reuon for the noD-oompllanM with the Joint
reiolDtioQ of Uay 11, 1866, relative to statiitka of the
coaating trade. Letter of the Becretary of Uie

Trcaaory, tranimittlng a itatement of the paynenta ftom the treat-
ory from 18U to IS&S. Letter of the fleoretaiy of the

TtMaory, traatmitting a itatemeot of the receipti uid oipendltarea
of the Chiokuaw tmit fand for the yaw 1668. Letter of
the Secretary of the .........

Tmnry, relatiTe to the dlipoiltion of the five per ocot. fund
ftom the aalea of pabllo laodi lit Indiana. Letter of the
EtecKtarynf the . . ..

Tieunry, at to the condition of the baoki throngboot the United
BUtea. Beportof the Secretary of the

IVemry, relatiTe to the eoostmction of a oonrt-honae in the dty
of Baltimore, Hd. Utter of the Secretary of the

Trcaory, trannnltting RtatUUct of the trade under the tedprodtj
treaty with Orrat Britain. Letter of the Secretary of the..

TiMnny, ttansmlttiDg a statement of the Commerce and KaTlgv
lion of the United Statei dmrlng the year ending June SO,
185*. Letter of the Secretary of the

IVtaoiy notes. Uenago of the Prudent of the United State*,
Mking that provMon be made to redeem the ontetanding...

Tnaty betvaea the United States and the Kingdom of Slam. Use-
■ge of the Frealdeat of the United States, transmitting
copy of the . ..

TnttoDd held for the benefit of the Chkk^w IndiaiM. BUte-
nenlof tha.

i,Cooc^lc

Tin*.

VoL

Doc.

PM*.

IS
IS

'i'

"3"

i
*
4

3
2

B5
8S

111
86

1
>
3
11
IB

40
41

Hurt fund. I^ttai ot tha Secretary of the TrBMnry, traoimlttiliK

Of tfaaoommcTClil relkUoDi of tbe United SUtes with

of the oanmerdftl rdatiou of the United State* wtth

mMiti of the oannercUl nUtton* of th« United blatei with

6B1

313
60S
311
699

( Sll

Uragwr during the rau endlnK BeptemUr 30, I$58. Statenwnl*
of the oommBidkl lelalioDi of 1 he UDited 8t>tea with

66<

Tuuxniirer's Idand. IfMMga of the Fceddent of the United

SUtet, relaUTe to kdvuioea made I17 the goremor of.

TuuMUTeT'i Iilaod ud British CoIumbU. UecMge of the Fi«d-

of the oommerdal lelitlona of the Uotted State* with

1 «S
1 M7

on October 1, 1868. SUtemeot of the ^

Temh h7 officen of the Britlih navy. Heiw^e of the ETetident
Yenels at the poet of Uobile. Ueaiage of the Fnaidant of the

Veauli on fbieigD itatioiu withoot Tegular puneia. Letter of th«

Teueli in tbe navy. LetUt of the Secretary of the Nary, tnn*-
mlttjng a rtatement of the Dumber, rate, and claM of.

Teeieli, with their tonnage and crews, which clearml from tne
United BtatM (ui foreign ODontriea during the year endhig
Jane 30, 18&8. SUteineut of the namber of Americu and

TeiMli, wtth their tonnage and ctewi, which entered Into the
June SO, 1HG8. BUtement of the nnmber of Amerioui and

Te**eli which entered into and cleared from the Unit«i State* tor
foreign conntriea dnring the year ending Jnne 30, 1369.

Te*Kli built, and the tonnage thereof, in each RUte and Territory
of the United State* doting the year ending Jnne 30, 1S5S.

TeMeU bnilt, and the tonnage thereof, in the ie*etal Stale* and
Tenitoriea of the United SUte*. front 1810 to 1856, indti-

eri

i,Cooc^lc

WigOD Toadi to the hdflc ooaan, oonttrncted nndsr the dtrectlon
ef tha Inteitor Dapartmeot. Letter of the Hecratarj of the
Intftior, tranamlttiDg repoilB upoQ the urerftl

Wit Dapertanent during the 7esT ending June SO, 18S0. Zatimatea
birlhe aappotiot tha

Wv, ihowlng: the operatloiia of the anar and the War Departtnont
daring the f eai 1SS8. Annual report of the Beoratai^ of. .

rapwt iwwayiriiyiiy IJU «6m( fi^ert.

No. 1. Oeneral orden No. %%, from arm; beadqaarten, le-

ipectinc oomhata with Indiana ..........

No. 3. AfiUniD Otrii

No. 3. ABiaIri in the departmnat of Florida

No. 4. AtMra in the department of Teiai .,

No. ft. Affain In the department of New HexhM ...

Ho. B. Affitln in tha dapartmeat of the Fad&c

No. T. Indian distorbanoca neai Fort Arbuckie

No. 8. Colonel Unmner'a report of hfa expedlHoo on the

No. «. Colonel Smllh'i report <rf fall exp«diUon to the tod
M»er <* the North

No. 10. Hi. D« Leon to the SecreUrr of War, Ha; 6, IMS,
•noloriog a treatlae on dnnnedariea...,

No. 11. Major Banea^ to Uie 8ecretai7 of War, nepectlng
tiio ooodltlon of the work-riiopi at Waahington

No. IS. If emrir on the dangen and defencea of New York,

bjliantenant Morton ... ..

No. 13. Bcport from the Office of Ezptoratloni and SarvoTt.
No. 11. Bcport OB the CajdUl axtenalon, new dome, and

PoatOSosexlenalon........... ......

No. 15. Beport of tbeConunandlngOaneral......

No. K. StatenMnta from Um Adjutant Oeneral

No. 17. Beport of the Oommlnlonen of the HllltaTTAaylnn

No. IB. Bqmrtof the Qvartermaator Oeoeral

No. 19. BeiMft of the ConntaMrr Oeneral

No. ZO. lUportof the FajoMtler Oenerat

No. St. Beport of the Snigeon Oeneral

No. 31. Beporta from the Enirineer Department

Ho. 23. Beport irf the CSiief Topographkal Engineer

No. M. U^ort of tha Chief of Ordnanoa

No. 23. Map showing linea of mardi paMtd orer b; troopi
dnring (he fear andlng JnneSO, IBSS

War, fawMmlUing ertlmatea fbr the paf of certain Florida Tolna-
teeia. Letter of the eocretarr of

Tar, tranamltUng oople* of oomapoodenoe between the offlceri of
the gOTemment and Ooremw Bnnnelt, and rimtlar oorm.
pondmoe t>etween the Secretai7of Waiand Oeneral Twlgga,
Letter of the Senetary of

War, taananilltlng oc^lca of the Axmj Beglater fbr the year 1S5B.
Letter of the Seeretarj of ..................

War, taaawdttiag a rtatement of the eipenHs of the national
amoriea, Ac., fortiM year ISftS. Letter of the Secrelarr of.

Tar, ttanamlttiDg all the papen in relation to ths mode aod man-
ner In which the boopi aerring in Florida were «lled Into
MTvloa. LeUerof tha Beer«tar7of

Ww, tnomlttiog a tnoanipt of the hxmj Begitter for the year
UU. UMar 9f the Sanetaiy of

I, Google

Tkr, tnoRuiUluB s (tatemeiit of apptoptlktloa* dntini dDring the
jTMra 18ST-'G8, tad tMiUnoe* on buid on Jane 30, ISfiS,
and amount caniod fa> tho MUpltH fund* Lettot of tbp 8eo-

Wkr, itatinK thht there are no plani nor es'ImatM for Ihs defence
of Puget Sound and the eutrance to Columbia drei. Let-
ter of the Etecretai7 of ...

War, trannnitUng itatemenU of the oootingent espeoeea of t
War Department during the jrear ISSS. Lettm of the 8eo-
letaryof

War, trantmitting a ttatement of the ezpendituTea tot banacki and
qoarteis (br the %itaj during the laat ten f oan. letter of
the Secretary of.................. ..................

War, tiaiumlttlnK a lUlement of the ezpenditarea for the ooDtln-
gent oxpenHi of the milttar/ ettabliihnient. Letter of ti
HacretaTTof .... . .

War, taauamittine: a itatcment of the namaa of clerki and other
petMU employed in the War Department during the ;ea
1808. Letter of (he Secretary of .

War, tmamltiing itatemente ihowliig the oontracta made aiidw
the anthoritj of tlie W r DepaitmeDt during the year ISftS,
Letter of the Secretary of ... ..... ....

War, tranunlttlns a retumof the mllltlaof the United StatM.tbdr
anna and BCooutrementB, and ammunition, for the year IB58.
Letter of the Secretary of

War, tianamltting tbe topoftraphlcal memoir and report of Oaptatn
T. J. Ctam, relative to tiie Terrltoriee of Oregon and Waah-

Ington. Letter of the Secretary of War

:WarehoDM from July 1, 1657, and on the fliat of each aacoeedlog
month uqUI June 30, 18G8. Statement of the amonii ' '

.Waahingtonforthe year IS&B. Annual report of the furreyorgen-
aral of the public landa far the Territory of...

Waahlngton Territoriei. lietter of the Third Auditor of tbe TMt»-
iiry on the tubject of d^ma growing ont of Indian hoaUli-
tlos in Oregon and....

WaaUogton ooaat IHteotory to aid in the naTigatlon of the. . _ _ _

Wathington. Topographical memoir and report of C^tlaln T. 3.

Waahii^ton anenaL Beport of Uajor Basuay reapeotlng the oc
ditk>n of the wotkahopaat the. ...

Waahlngton Terrltoiy during th« year ending June 30, 18S8. I
port of the Colonel of Topogra)dilcal Knglneen, on the oon-

dltjonof the military roada in

Cram, relatlTe to the Territories of Oregon and . ..

IHne, ipiiita, &c., imported annually fiom IBtS to 1S68, InclualTe.
Uatement of the value of the .... . ...

Wool, from IB40 to ISSS, iDclnatve. Statement of the foreign im-
portation and exportation, and home conaumptton, and the
oonaumpUonof domeatic .....

Workmen tn tiie rereral navy yarda during the year ending Dw-
oeroberl, 1858. Letter of tbe Secretary of the Havy, tr
mlttlDg a Btatement of the number of.. ...... ........

Tanctcm (Pkux) and Tonawanda Indlau during the year ending
September 30, 1B<0. Utter of the Seoetary of the Interior,
traaamitting eatlmntea for fnlfiUlag treaty aUpnUtlou with

n,g:,.ndtyC00glc

Tu^ tod Dnckf of the nft*r dnrlng the ytat midlDg Jona 80,
IStO. Eitlmfttta for appn^ntetiont for tha Bareaii of......

laidi Bod Doeki, of the openttfoiu of hli biire«i during the ftu
«uUng Jnne 30, ISflO. Beport of the Chkf of the Bnraw

A. — Gtaicnl (■Umato tromjidM uuFAcki. ..........

Ko. 1. lUnute for the nqiport of thd htmaa.........

No. 2, Sitliiute for Mcndthig rtaUoDi

No. 3. EWmate Ita offlcen lad othen at jttig cod rtaUona.
Bai. BtatUMnt drawing the mmiirhldi make npthe Ant

ani Moond Itami In p^)«r A.... .......

Ha 5. Ihthnilft for inqaoTCmenti and retain at jaida and

rtatkna.

Ho. •■ *■**"*** tor fanproTonenti and lepaln at boapltab

and DBTBl airlanii . ....

No. 7. btimatea fa* InqpniTeiiieiitf and lepaln of magadnef-

Taidl and Docks of the Nkt; Depaitmvt, made daring tha jatx

ISM. Letter of tha Secretar; of the Navy, traiuiiiittinK a

ttatamont of tha oontraeta tinder the oognlBDce of the Bn-

n,g:,.ndtyG00glc

35IE CcniniKi, ) HOUSE OF BEPBE8ENTATITES. ( E:;. Doo-
idSoHon. \ [ No. 110.

MESSAGE
PRESIDENT OF THE UNITED STATES,

That provinon be made to preserve the credit of fAe VniieA ^atea.

I Match 3, 1869.— LaM on the table mud ordered to be prialed.

To the Senate and House of Bepreaentativee :

Aa imperative sense of doty compels me to make an appeal to Con-
gress to preserve the credit of the country. This is the last day of
the present Congress and no provision has yet been made for the pay-
ment of appropnationa and to meet the outstanding treosory notes
israed onder the authority of law. From the information which has
already been communicated to Congress by the Secretary of the Treoe- -
nry, it is manifest that the ordinary receipts into the Treasary, eren
under the most favorable circumstances, will scarcely meet the ordi-
nary expenses of the government daring the remainder of the present
fiscal year ending on the 30th June. At that time nearly eighteen
millions of treasury notes will have become due, and many of those
not yet dae are daily paid for duties at the different ports, and there
will be no means in the treasury to meet them. Thus the coantry
which is full of resources will be dishonored before the world, and the
American people, who are a debt paying people, will be disgraced by
the omission on our part to do our duty. It is impossible to avoid
this catastrophe unless we make provision this very day to meet the
lawful demands on the public treasury. If this were the first instead
of the last session of a Congress the case would be different. You
might then be convened by proclamation for to-morrow morning ; but
there are now thirteen States of the Union entitled to seventy-eight
Bepresontatives, in which none have been elected. It will, therefore,
be impracticable for a large majority of these States to elect their
members before the treasury shall be compelled to stop payment.

2 TBEASUBT NOTES.

Under tbese oircnmstonces I eaniestljr reoommend to Congress to
make proTision, within the few remaining honrs of the aesaion, for the
preservation of the pablic credit. The urgency of the case not only
justifies hut demanoB that, if necessary, this shall be done by a sep-
arate hill. We ought to incur no risk when the good &ith of the
country is at stake.

JAMES BUCHANAN.

WASHmoTOK Gtr, Mar<A 3, 1869.

n,g:,.ndtyG00glc

35th Gonsrik, ) HOUSE OF R&PRESENTATIVliS. ( Ex. Doo.
2d Session. { (Ho. 111.

VANCOUVER'S ISLAND AND BRITISH COLUMBU.

MESSAGE

PRESIDENT OF THE UNITED STATES,

7he repmi. of the speciai agent of the United States recently sent to Van-
couver's Islam and Briiish Columbia.

lUun 3, ISSI.^lAld on the table mud ordered to be pilDted.

lb the Souse of Beprtsentcdives :

In compliance witn the resolation of the Hoaie of Bepresentstires
of the 25th altimo, I tranmiit a oopy of the report of the Bpecial
agent of the United States recently sent to Vanoouver's Island and
British Colamhia.

JAMES BUCHANAN.

WASHmoion, Febrvary 28, 1869.

WASHoraTON, January 8, 1859.

Sm : Id accordance with yonr letter of instmctions, dated Angnst
2, 1858, I proceeded, withont nnnecessary loss of time, to Victoria,
Vanconver'a Island, where I arrived on the 20th of Septemher, having
been detained twelve days at Ban Francisco, awaiting the departure
of a steamer. On ny arrival, I found that a large number of those
who had gone to the Frazer river mines, had left on their return to
California, having become dissatisfied with tbe country and the
prospect; and that, of those who remained, by far the greater number
were merely waiting to realize sufficient to defray their expenses back
to their homes. It was still likely, however, that a considerable num-
ber would remain, both on Vancouver's Island and throughout the
mining region of Frazer river, dnrtug the winter, if not longer; and
I addressed myself to the accomplishment, io regard to them, of the
objects of the mission with which I had been honored by the President
of the United States.

The chief purpose of the special agency intrusted to me I under-
stood to be, to infuse among the citizens of the United States, tempo-
rarily resident in the vicinity ef Frazer river, a spirit of subordination
to the colonial authorities, and of respect for the laws of Oreat Britain,
and, at the same time, by such representations to the govenxor icf

2 TANCOTTTEB'e ISLAND AND BBITI8H COLTTUBU.

Vftccouver's iBlsnd &e circnmstancea woald snggest, to endeavor to
obtain from that functioaarjr the abrogation of the rigorous BjBtem of
exactions theretofore parsaed, and the adoption for the futnre of each
a policy towards Americans as would not be inconsistent with their
ri^ts as the citizens of a friendly power, and wonld, furthermoTe,
tend to promote among them feelings of kindness and Kood will
towards tbe government and the subjects of Great Britain. Some gnch
intervention by the United States was deemed necessary, for the
reason that much exasperation was alleged to exist among those of
cor citizens, then making their way to theFrazer river mines, against
the servants of the HnoHon'a Bay Company and the authorities of
Tancouver's Islandj in consequence of the onerous exactions to which
ijiey were said to have been subjected by those officials. The numerous
oomplaints of such exactions that had already reached the government
q£ the United States, as early as June last, were in that month brought
to the notice of Lord Malmesbury by Mr. Dallas, our minister at
Iiondon; and, from the declarations of his lordship in reply, of the
favorable disposition of the British governmentj as well as from re-
peated assurances of Lord Napier, the British minister at Washington,
to the same effect, — assurances of the sincerity of which no doubt
■was entertained — the hope was indulged that the rigor of the exactions
previously practiced would, upon proper reprevitations of their in-
justice, be abated, and that the work of conciliation would be one of
no difficult accomplishment.

In addition to these duties, my instructions contemplated that I
should furnish your department with all needful and attainable infor-
mation touching the newly discovered mines on Frazer river; the emi-
gration of American citizens thereto; and other kindred subjects.

It is scarcely necessary to advert to the history of the Frazer river
excitement; how, in April and May of last year, the people of Ciili-
fomia, and of Oregon and Washington Territories, were startled by
rumors industriously circulated of fabulous gold discoveries on Frazer
liver; how, day after day, steamers and sailing vessels left the port
of San Francisco for Victoria, crowded to excess : many of them
carrying three times the number of passengers allowed by law; how
tiiansands, who were then in properous circumstances in California,
^zzled by the prospect of immediately acquiring immense wealth,
abandoned their occupatiousj both professional and manual, and sell-
ing off their mining claims and other possessions at a great sacrifice^
threw themselves into the mad crowd who were thronging with eager
steps to the new gold fields. It is understood that twenty-three thou-
sand men leil the port of San Francisco for Frazer river, ,and that
some eight thousand more went overland, from the northern oonntiea
of California, and from the Territories of Oregon and Washington,
by way of the Dalles and Fort Kamloops.

Some estimate the number as much greater; hut it is safe to assert
that the emigration to Vancouver's Island and British Columbia
during the gold excitement, — the bulk of it during the months of
May, June, and July,— was not under thirty thousand, and may have
reached thirty-three thousand.

The number remaining there at present probably does not exceed

TAKCOmnSB S ISLAHD Aim BBmaH COLCUBIA. S

time ihooBftod. The oaoses whiclL prodnoed tbit generftl and rapid
abandonment of tbe coloaies, I shall presently endeavor to explain.

The first body of gold seekers foand their way to Frazer river from
Victoria in canoes, ^ifib, and whale-boats, American steamers being
at that time jealooaly excluded from the river. Numbers perished in
these hazardous voyages; many were lost in the mazes of the arohi-
pelago that stretches nt)m Discovery island to the edge of the OnUof
Oeorgia ; and many more in attempting to cross that stormy and
dangerous golf, dangeroos even for strong and large steamers, from
the pecnlianty of its currents, and from other causes.

At length Mr. Donglas, governor of Yancoover's Island, and chief
&ctDr of the Hudson's Bay Company, was induced to permit, on cer-
tain conditions, and on the payment of a certain sum for each trip,
the navigation of the river by American bottoms, reserving to himself
the right to withdraw this permission whenever boats owned by Brit-
ish subjects could be provided for the transportation of passengers
and freight, A nnmber of steamers (the Sea Bird, the Surprise, the
Umatilla, the Maria, the Bnterprise, and others) immediately oom-
menoed running between Yictoris and the different points on Frazer
river, and by tbeee means the emigrants were enabled to spread them-
aelvea over the gold regions on the river and its tribntaries.

The &tlnre of their quest has been already chronicled throngh the
preM. Some, it is true, without experience in mining operations, be-
came diflgnsted, and left without giving the minesa&ir trial; but the
greet majority of the emigrants were men who had gained a thorough
Knowledge of mining by years of experience in California, and whom
no hardsnips or discomforts could deter from the prosecution of their
purpose. These men have penetrated into every accessible portion of
the gold fields, from the month of the river np to the Canoe country,
down Thompson's river, from Fort Eamloops to its mouth, and up
Bridge river nearly to its source, and have prospected every spot
where gold is supposed to exist.

It is true that gold has been found everywhere, but, for the most
part, difiiued in such small quantities as not to reward the labor of
digging for it. Some idea may be formed of the unsatisfactory yield
of the mines when it is considered that, notwithstanding the immense
numbers of people precipitated upon Frazer river and the adjacent
country, the entire yield from May till October, inclusive, did not
much exceed half a million of dollars.

There are some five or six bars on the river, between Fort Hope
and Fort Yale, (Santa Clara bar, Texas bar, Emory's bar, Hill's bar,
and one or two others,) that yield well ; and on Bridge river, and at
the forks of Frazer and Thompson's rivers, good diggings have been
fimnd; — bat in the whole region hitherto prospected, tEere are not
eligible plaoera more than enough to give remunerative employment
to aboot fifteen hundred miners.

What discoveries may be the result of future researches to the north-
ward and eastward of the present gold region can be, fer tiie present,
only matter of vague speculation. Hitherto, no gold-bearing quarts
ledge of any extent has been found, and but little coarse gold. The
lm£ of theit washed out is exceedingly fine dust. Some considerable

A TAHCOUVEBS ISLiXTD AND B&ITISH COLUKBIA.

portion is of the description tnown aa ecale gold. Th^ coarse gold
BpeciQieiu tbat I have seen were found not in the main river bat in
its small tribotaiies. From the extreme fineness of the gold, it re-
qoireB elaborate care in amalgamation, and the nse of a large qnantit;
ofqnichsilver.

In conBoqoence of the hazards of the trip from Victoria to the Tari-
ons points on the river attainable by steamboats — the navigation of
Frazer river being extremely difficult and perilons — the prices of
freight were enormous. From Victoria to Fort Hope, sitnated on
Frazer river, one handred miles above its month, forty dollars per
ton, and, as the nver became low, and the difficulty and danger in-
creased, fifty dollars per ton was charged. From Fort Hope to Fort
Yale, a distance of sixteen miles, which oould only be performed in
canoes, the freight was twenty dollars per ton, and above that point,
the river not being navigable even for canoes for upwards of two htm-
dred miles, provisions were packed, generally on men's backs, to the
various diggings and prospecting grounds above.

The cost of proviaione being so greatly enhanced by the labor and
expense of transportation, the scant yield that in moat cases rewarded
the labors of the miner, even when he found gold, except in the most
favored spots, soarcely sufficed for his support; while thonsands spent
all the means they had brought with them from California in pros-
jiecting without any remuneration whatever from the soil.

It will be seen, from the above, that the deposits of gold in the
Frazer river region do not offer any weighty indncemMit for emigra-
tion from any portion of the United States.

.The country is still less attractive in an agricultural point of view.
Towards the coast its features are rocks, mountains, and a dense
growth of fir trees. The few patches of open land one meets with
are fitter for pasturage than the plow. Around Fort Kamloops,
on Thompson's river, there is a prairie of some extent, and among
the mountains are minute strips of valley land, but these latter are
generally so difficult of access as to be almost unavailable for farming
purposes. There is at present, no land under cultivation by white
men in the colony, except, perhaps, a small strip in the immediate
vicinity of Fort Kamloops. Eastward, towards the base of the Bocky
Mountains, the country is more open, but the climate is more unfa-
vorable to agricultural pursuits than on the coast.

All accounts concur in representing the climate as anything bat
pleasant. Mr. Dunn, a standard authority on that country, writes of
it as follows :

" The climate is very variable, and the transitions are, thoDgh
periodically regular, remarkably sudden, if not violent. Daring UM
spring, which lasts from April till June, the weather and face of the
country are delightful. In June there are almost incessant rains,
drifted furiously along by a strong south wind, in July and August
the heat is intense, and the ground, previously saturated with mois-
ture, produces myriads of annoying flies and insects. This heat uid
sunshine are sucoaeded in September by fogs of such palpable darkness
that, until noon, it is seldom possible to distinguish objectsat a longer
distance than one hundred yards. In November the winter sets in,

tioiwlc

TAKC01JT2S'8 ISLAND IND BRITISH COLUHBU. 5

speedily freedng the lakes and smaller riren. The cold, hovever,
is not BO intense as might be imagined in saoh a conntrj and climate."

From a British army officer, formerly in the service of the Hudson's
Bay Company, a gentleman of great intelligence, who has traversed
nearly the whole region comprised within the newly established colony
of British Colombia, I learn that there is no part of the country that
will ererjofitifyfarmin^ operations ofanymagnitude or extent. A large
portion of the country la covered with water, and the rest is broken,
cat up by rocky mountain ridges, and covered with a dense grotrth of
ii and other timber, valueless as lumber, and unavailable ror spars,
for the reason that there is no possibility of conveying it to the coast.

The climate of the sontheastern portion of Tancouver's Island is,
for the most part, pleasant and healtaful, except for a few of ^e win-
ter months, daring which boisterons' winds and cold rains prevail,
bnt the soil is illy adapted for the growth of cereals.

On the eight or ten square miles of open land in the neighborhood
of Victoria, (the capital and only town of the colony,) there are some
well kept farms, and in the patches of land on different parts of the
coast, covered with Indian villages, the potato is cultivated with success,
and good farms might be established ; but with the exception of twenty
or twenty-five square miles, which compriae all the clear land of the
island, the remainder, two hundred and seventy miles in length, by
from forty to fifty bread, is a mass of rocks and mountains, and sterile
clay, covered with a dense growth of valueless fir and tangled under-
bnuh. Even that portion of woodland which is accessible to the aze
would not justify the labor or expense of clearing, as the soil is too
barren to yield anything like healthy or remunerative crops. Neither
oolony, therefore, offered any induoements to our citizens, disappointed
in their mining operations, to settle down in the country witii toe view
of tilling the soil.

Bat there is no doubt that, independently of the unpromising charac-
ter of mining and agricultural operations, the early and rapid aban-
donment of the colonies by our citizens was indnced, in some measure,
by the petty exactions and other annoyances to which they were sub-
jected by the servants of the Hadson's Bay Company, and the officers
of the colonial government.

Immediately on my arrival at Victoria, I took means to inform
myself as to the various causes of complaint alleged to exist, with a
view to making such representations to (governor Douglas as might
lead to their removal. I found in force a number of restrictions on
mining and commercial pursuits, that operated as very irksome bur-
dens, not simply by reason of the amounts exacted in the shape of
taxes and other imposts, bat becaase they were known to be exacted
without authority of lav. I shall proceed to notice these taxes ia
dfltnl.

I have already said that, at an early stage of the Fraser river excite-
meat, Ghivernor Douglas gave permtsstoa for the navigation of the
river by American steamers. From the following document, which is
a copy of the original agreement, it would appear that the permission
was given by him as &ctor of the Hudson's Bay Company, and not as
governor of Vanoonver's Island. ^-> i

* n,g:,.,dtyC00glC

VAHCOUTEB'a ISLAND AKD BRmSH COLUMBIA.

Copy of agreement.

The agents of the Hadson's Bay Companj agree to liceaee oae or
more Bteamers, to ply from Victoria tp and on Frazer river, on the
following terms :

1. To receive and transport no gooda to, on, or from Frazer river,
except the eoods of the Hudson's Bay Company, or such as they may

gjrmit to be shipped, and that for the transport of such goodn the
eight do not exceed the following rates, viz :

Victoria to Langley, $10 per ton of 2,000 pounds, or 40 feet measure-
ment.

Langley to Fort Hope, $10 per ton of 2,000 pounds, or 40 feet measore-
ment.

Fort Hope to Fort Yale, $5 per ton of 2,000 pounds, i
Betnrn rates to be in the same scale.

2. To carry no passengers to or on Frazer river who have not taken
out a mining license and permit from the government of Vancouver's
Island, and one month's advance thereon.

3. To pay bead-money to the Hudson's Bay Company, at the rate of
two dollars ibr each passenger proceeding into Frazer, or taking pas-
sage from Langley upwards ; a settlement to be made at the end of
each trip, and an officer of the Hudson's Bay Company to be received
on board without charge, to attend to such business, if required by the
Hudson's Bay Company.

4. That all vessels plying to or on tbe river be commanded and
owned by British subject^.

6. That permits on said terms will be oontinned nntil expiry of
the comyany's license to trade, in the month of May, 1859.

It will be perceived that this license is given by the agents of the
Hudson's Bay Company to ply to and on Frazer river. By what right?
Great Britain had tne right to exclude our steamers from tbe waters
ofFrazer river ; bnt if G-reat Britain did not choose to assert that right,
how could the Hudson's Bay Company's servants claim to make con-
ditions with OUT people, and charge toll for the privilege of entering?
Admitting that they had the right of exclusive trade with the Indians,
that did not give them control of the navigation of the river.

The conditions show, in a remarkably strong light, tbe ^raspiuK
Boirit that animated these officials. While other traders, British and
American, were paying forty and fiity dollars per ton freight to Fort
Hope, they exacted of the steamboat owners, as one of the conditions
of opening tbe river, that they should carry the freight of the oom-
pany for twenty dollars per ton, thus securing to themselves a large
advantage over other merchants trading on the river.

Another very remarkable condition is that contained in Artida 2d :
Every person leaving Victoria for Frazer river, no matter what his
businees, was compelled to pay five dollars for a license to mine. Of
oonrse, under this regulation, the tax was extorted from a great

ty Google

VANCOUVER 8 ISLAND AND BRITISH COLUMBIA. 7

many of onr citizens who never visited the rirer with any intention of
mining.

I have seen a namber of affidavits made hj American citizens, set-
tiDg forth the fact that thej had visited Frazer river with no intention
of mining ; had never mined, and jet had been compelled to take ont
s mining license. The enforcement of the pre-payment, at Victoria,
of this mining tax was abandoned a short time previous to my depar-
ture from the colony in N^ovember ; but for a long time it was rigidly
exacted, and a file of marines from the British vessel-of-war at the
month of the river was called into requisition, when it became neces-
ury to enforce compliance on the part of a set of rebellioDS passen-
gers.*

The third artide requires the payment of two dollars head-money
to the Hudson's Bay company, by every person entering the Frazer
river country. I never could learn why this tax was collected, except
that the Hudson's Bay Company were the t«mporary possessors of the
Und, and they chose to exact this tribute irom strangerson entering it.

The fourth' arlide had neither truth nor substance, and was never
intended to have any effect. The steamboat owners with whom the
sgreement was made were American citizens, the boats were American
bottoms, sailing all the time under the American flag, and were so
declared to be by their owners. The agents of the Hudson's Bay
Company said the article was a mere matter of form, and so it was
inserted.

The following is a copy of the sufferance taken out by steamboata
(for each trip) under the above agreement ;

No. 580. — General Sufferance,

Poet Viciobia, Vakcoovkr'b Islaitd.
These are to certify to all whom it doth concern, that safi'erance for
this present voyage is granted on the conditions annexed to Captain
Wnght to proceed on a voyage to Frazer river with steamer Enter-
prise and cargo, as per manifest, and that the said Captain Wright
hath here entered aud cleared his boat according to law.

Given under my hand at Victoria, V. I., this 18th day of October,
1858.

CHAS. A. ANQELO,

D^pTdy CcXUdor.

* W« woold most caniMtl^ tmprMH on «II penoni about proceeding to Uie mlQM the
BWTMJtj of obtunltig lioenieB to niine from the proper offlcen at this port, at it will ut»
Ibcm much tlaM, aiinoyanoe. imd mar be lerioiu trouble. Hi. Puiaer Welch, of tha
rtMmer Sarpriw, Infomu oi that on hu lait trip up tome fifty of the pvnengen, mottty
IiiifaDeQ, refiued to ba; IlceOKS, and cipreased theti determinaUoo to dEsregard the law
in thia reqiact. When off Point Boberte, just at the mouth of Fnicr river, the tiurpriM
waa ordered Alone ride of H. B. Uqcatr'a war iteamei Satellite, boarded by heroffican, and
tlie fact of tlia Mmtomacy of the refractory asoeriained, when a file of marine* waa itationed
DD biard and each paneoger obliged to ihow hia license under penalty of being put athore.
Thoe prompt meMorcs brooght the rebetliooa to terms, and thef were glad to be allowed
to porcliaae their licensH aad proceed on their joorne;. We tmat all peiHOoa arriTing in
tfae oamOrj will c^Merfnll; ob^ the lavm. a* It la their duty, and because we are aatlatled
mch ohedleDoe on their part irill not only conduce to theii own but Um public good.—

n,j-„-...iM,LnOOglC

8 VANCOUTEB'S ISLAin) AND BRITISH COLUHBIl.

For each safilarance foi a steamboat the aam of twelve dollars was
exacted ; and for each sufferance for a canoe, and every other descrip-
tioD of boat entering the river, the sam of six dollars. It will be
seen that by a remarkable confosion of jurledictiona, this safferaace
tax is collected by the collector of the port of Victoria, an ofBcer of
the colonial government.

Thus far the taxes imposed were —

For mining licensee] renewable at the end of each month |6 00

Head-money from each person 2 00

Snfferanoe for a steamboat for each trip 12 00

Sufferance for each canoe and other boat 6 00

From canoes and other small boats passing up the river these im-

Ci were collected in this wise : A herms^rodite brig, named the
very, formerly owned by the Hudson's Bay Company, hut after-
wards put in commission and commanded by a lieutenant in the British
navy, was stationed above the mouth of the river, and by her every
hoat passing up was hailed and ordered alongside.

If the passengers were so unfortunate as not to have means to pay
mining license, head-money, and sufferance tax, their watches, pistols,
Icnives, or other personal effects were held in pledge for payment. In
the absence of such personal effects, baza of nour, beans and coffee,
hams, and other provisions were retainea, and I have been assured that
the deck of the brig was covered with those articles. It is but just to
add that the officers immediately charged with the performance of this
unpleasant service acted with all gentleness and hamanity compatible
with their orders, and that they endeavored, by every means in their
power, to mitigate the rigor of these amercements.

In addition to the taxes above enamerated, a duty of ten per cent.
ud valorem was imposed on all goods imported into the Frazer river
country. It is almost unnecessary to say that this duty is wholly
unauthorized by any existing law. Latterly it was pretended that it
Iras levied for the behoof of the government, but the fact that it was
collected by Mr. Finlayson, the financial agent of the Hudson's Bay
Company, and not by the collector of the port, in addition to other
circumstances, would lead to the belief that it was imposed by the
company and for their own benefit. A letter is in existence from Mr.
Finlayson to Mr. Q-. B. Wright, a contractor on the Harrison Lillooett
trail, in which that gentleman promises that the goods imported by
Mr. Wright up Frazer river, for the subsistence and clothing of his
men, shall not he charged with this duty of ten per cent., as long aa
the license of the company shall continue in existence, hut that, after
its expiration, they will have no control in the matter. If the duty
had not been imposed by the company, they certainly would have had
no power to remit it in Mr. Wright's case. I shall be enabled, in a
few days, to furnish a certified copy of this letter.

The following is a copy of the permit granted on the payment of
the ten per cent, duty :

n,g:,.ndtyC00glc

TANCOCTEBS ISLAND AND BKITISH COLDMBU.

Permission is hereby gireo to the northveat boQDdarjr commisaioa
of the United States to import the foUoving packages of merchaDdise
iato Frazer river :

Marks. — George B. Roberts for Alexander 0. Anderson, collector.
CimtaUs. — Two thousand pouods barley.

ROBERT FINLATSON,

Sucbon'a Bay Company.
To the revenue officer of Frazer river.

WILLIAM JEFFEBY.
VicroKiA, V. I.fSeptember 2, 1858.

Appended to this report is an affidavit of W. Q, Gason, esq., noir
resident of Victoria, setting forth the payment of the duty on the
above mentioDed shipment of barley, and the refusal of Mr. Finlay-
soa to receipt for the same. I likewise append a statement from the
books of O. A. Reynolds & Co., merchants in Victoria, shoving the
amount of duties paid by that firm for a portion of the month of Sep-
tember, 1858.

Having informed myself concerning these varioas imposts, I waited
npon Governor Douglas, in accordance with your instructions, and
represented the various causes ofcomplaintursed by our citizens. From
the friendly intentions expressed by the British government, and the
earnest disposition manifested by Lord \apier, the British minister,
to co-operate with the government of the United States in such mu-
tual omces of kindneEB and conciliation as would soften any feeling of
exasperation that might have previously existed on the part of our
people then on Frazer river and Vancouver's Island, against the local
authorities, and from what I was led to believe was the t«nor of the
instructions sent to Governor Douglas, simultaneously with my de-
partore for Frazer river, I apprehended no difficulty in inducing, on
the part of that functionary, sach an abatement of the rigor of the pre-
viona exactions as would allay the existing discontent, and wonldsecare,
for the fnture, harmony and good feeling. I regret to state that
neither the instruc^ons sent out, nor the earnest and courteous re-
monstrances which I deemed it my duty to address to his excellency,
agunst the injustice, the impolicy and illegality of those exactions,
were efficacious in producing more than the parti»I and inconsiderable
modification I have before mentioned.

Qovernor Douglas, it is true, expressed the most friendly disposi-
tions ; but when preraed upon the subject of an abatement of the re-
strictions oo mining and trading operations, remarked that there was
nothing to prevent the Americans going elsewhu'e if they were dis-
satisfiM with their treatment in the two colonics.

As an apology for the imposition of those onerous taxes he alleged
the necessity of protecting the miners from the Indians. The only
protection ever afforded against the Indians was by the ap^intment
of a few special constables, a force not likely to be very<emcieDt in an

I C.oogic

10 VANCOUTEK'S island and BBniSH COLUMBIA.

Indian war. It is oeedlesa to ny that the nuDers were compelled to
protect themeelTes. At first the IndiaiiB were extremely hostile, from
causes which I shall hereafter allnde to. The miners, heiag in a strangft
land, and anwilling to embroil themselves, forbore, for a long time,
from resisting the oatrages perpetrated hy the savages ; hat their for-
bearance the Indians regarded as cowardice; murders were committed ;
day after day the headless trunks of murdered miners came floating
down the river. Bands of men were then organized who went oat
to the rancherias, met the Indians and chastised them. They then
made treaties with them, and peace prevailed ever after. Individaal
instances of indiscretion and hot blood there may have been among
the Americans in these troubles ; but the unanimous testimony of all
parties, both English and American, goes to show that those engaged
in the difficulties exhibited exemplary forbearance before they stmck
a blow. Since that time there has been no necessity for the employ-
ment of special constables in Indian warfare.

But the grievances of which our citizens complained were not con-
fined to the exactions practiced upon them. Numerous complaints
reached me, of outrages committed by the subordinate officers of the
Hudson's Bay Company, of dishonest dealings by the Commissioner of
Public Lands, and of flagrant bias, according as their prejudices
tended, on the part of the coarts. The probity of the judges in pecu-
niary matters was unimpeached, bat it was evident in many cases that
their national prejudices carried them far oat of the path of justice.
Indeed, it is not too much to say that the courts, from the peculiarity
of their constitution and the eccentricity of their action, were the
merest travesties of judicial tribunals. Their pure unsophisticated
ignorance of law was only equalled by the Tenement bigotry that
characterized their proceedings in many cases.

Where circumstances permitted, I directed the complaints of our
eitisens to be sworn to ; in some cases, where the abuses occurred in
remote parte of the interior, this mode of authentication was imprac-
ticable. At the request of the aggrieved parties I lay some of these
cases before you, with this report, for the action of the government.
' Among them will be found one of a man who makes affidavit
that he had declared his intentions to become a citizen of the United
States ; that be bad built and stocked a store at Fort Langley ; had
hoisted the American flag on bis house on the fourth of July in honor
of his adopted country ; was arrested some days afterwards for this
ofi'ence, put in irons, brought down to Victoria, tried on a trnmp^-up
charge of selling liquor to Indians, convicted and thrown into prison,
where he was kept for nearly two months, being fed on bread and
water for a portion of the time. The affidavit and other papers are
furnished herewith.

There will he found another case of an American citazen who was
unmerafally beaten by an agent of the Hudson's Bay Company at
Nanaimo, assisted by a number of half-breeds, the agent being intoxi-
cated at the time. The man beaten was Andrew MeKeneie, the
assaulting party was a man named Stewart, an agent of the Hudson's
Bay Company and a colonial magistrate. McKeneie swore informa-
tion agfunst Stewart, but tiae court would not enteitoin the complaint

ii,Cooglc

TANCOnVER's ISLAND AND BRITISH COLUUBIA. 11

or iasneprocess, for the reason that Kaaaimo was oat of its jarisdic*
tion. Tne day previona, the same conrt had entertained a oomplaiat
against McKenzie, and had him arrested on a charge of uttering
threatening langnage, the offence being alleged to have been com-
mitted at this Terr same place, Kanaimo, which next daj the jndge
declared was out of his jarisdiction. On tiie first day, when the com-
plaint was entertained, it was that of a British snbject against on
American. On the nest day, when the complaint was not entertained,
the case was of an American citizen against a British snbject.

Another case will be found to be that of a ditch company at Santa
Clara bar, on Frazer rirer, who had, with great labor and expense,
construct^ a ditch conveying water to their claim ; when, as they were
abont to reap the frnits of their enterprise, the commissioner of crown
lands, who had been previonsly given an interest by another par^,
prevented them Irom nsing the water, and gave the privilege to the
party with whom he himself was connected. Another, from a com-
pany on Texas bar, complains of a similar piece of knavery and op-
presaioD. Another memorial was received from Hill's bar, signed by
one handred miners, and complaining of similar outrages on the part
of the same functionary.

Komberless complaints of this character poured in on me from day
to day, more or less meritorious, but all of them proving a most
eraspisg and avaricious spirit on the part of the petty authorities of
the place, or else a studied determination to disgust the Americans
with the country. These things continued up to the time of my de-
parture ; and a few days before leaving Victoria, having been apprised
of the existence of a very embittered feeliug on the part of our cttizena,
engendered by these many acts of injustice, I deemed it my duty to
issue an address to the Americans residing in Yanconver's Island and
British Colombia, putting them in possession of the views of their
government in regard to their rights and standing in those colonies ;
admonishing them to commit no violation of law, and to be obedient
to the sntborities ; at the same time admitting the numerous abuses
that existed, hut pledging to them the intervention of their own gov-
ernment for the redress of their grievances and the protection of their
rights. This address I subjoin from the Victoria Omette, of November
13, 1868.

To the dtixene of the United Slata in Vancouver's lAemd and BrUiah
Ckiumbia:

Having received from citizens of the United States mining and
trading on Frazer river and in its vicinity, a number of letters com-
plaining of acts of injostice and oppression at the hands of the colonial
authoritiee, and being on the eve of my departure to lay my report
before the government at Washington, I take this public method of
Hiprittng American citizens sojonroing in Vancouver's Island and
ontish Columbia of the views of our government in regard to their
rights and standing in these colonies.

I need scarcely say that the government of the United States expects
of its own dtisens abroad a decent conformity with local regnlationt.

12 TAirCOtTVEB'S ISLAND iXD BRITISH COLUUBU.

obedience to the lavs of the conptriea they viut, and a proper ahoir
of respect for the authorities by whom those lava are administered.
This is exacted of strangers viaitiuf!; the different States of the Union,
who are amenable to punishment for a violation of the laws of those
States or of the Unitea 8tat«8, as are American citizens for infraction
of the laws of such foreign countries u they may enter in the pursuit
of pleasure or of business. Such of our citizens, therefore, as hare
taken up their temporary rebideace in British Columbia or Vanooarer's
Island are subject, like all other residents to the laws of the colonies
of Great Britain, and are liable, like all others to the penalties meted
out by those laws to persons properly coDvicted of tfawr violation.

I am aware that an elaborate attempt to impress these facts upon
my fellow-citizens in these colonies would he superEuous. Theit
flohriety of deportment, their decent observance of all the proprieties
of life in the midst of privations and annoyances of no common de-
gree, and their obedience to the law under very trying provocatione to
its infringement, althoagh they may not have gain^ for them sacb
liberal treatment as was due to that forbearance and good condact,
have nevertheless commanded the respect of the strangers among
whom they are cast, and cannot fail to be subjects of pride and grata-
latioQ to their own government.

Considering the circumstences attending the recent settlement of
these colonies, it was scarcely to be expected that a well regulated
government could be at once bnilt up out of the chaotic elements
suddenly thrown together in such confusion. Much was to be pardoned
to the inexperience of an executive hitherto dealing for the most part
with savages, and possibly unprepared by previous training for the
more refined exigencies imposed by governmental relations with a
white population. Mach of the cause of complaints that have arisen
was to some extent excusable, because due to the unlicensed rudeness
of the subordinate o£Scer8 of the Hudson's Bay Company, and the
colonial government, who, by reason of their long isolation from
civilized society, and their habitual intercourse with Indians had
unlearned most of the finer traits of humanity and were scarcely
aooonntable for a grossness of conduct that had become to them a
■econd nature ; and lastly, much was to be excused in the ignorance
and want of tone of courts organized out of such crued and unfit mate-
rials as those, the only ones that were at hand on the sudden influx
of the strangers. In some instances, no doubt, these oourts have
fallen short of even the limited expectetions justified by the peculiar
circumstances of their construction, and the strange constituento of
which they were composed. But it is not to be doubted that the
British government will, without nnneoessary delay, provide remedies
for the evils and abuses arising from this condition of things, evils
and abuses aflecting not alone the prosperity of ite own subjects, but
the rights of citizens of a foreign and friendly power.

The forbearance in the meantime of the citizens of the United
States, their quiet observance of the laws nnder any aggressions on
their rights of which they may have to complain, will not alone have
its reward in the consciousness of having done credit to their country,

country whose institutions are based upon that all-pervading love of

Xiocwic

TANC0UTEB8 VSLASD ASD BBITISH COLUMBIA. 13

order, and that spirit of obedience to the lav which distinguisbes its
dttseoB, bat it will, moreover, entitle them to the active intervention
of their own government for the redress of their grievances and for
the protection of their rights. That the government of the United
States, upon proper canse being shown, aft«r recourse shall have been
had in vain to the tribunals against acts of oppression or injustice,
will so intervene for the redress and protection of its citizens in Britii^i
Columbia and Yancouver's Island, I am authorized and instructed to
give them the most emphatic assurance. If wrong be done them, let
them appeal to the courts. It is to be hoped the^ will obtain jostioe ;
hnt shonld those tribnnals, unfortnnately, be too impotent, too ignorant,
or too cormpt to administer the law with impartiality and firm-
ness, onr citizenB may^ reckon with certainty upon the prompt and
eflScient interference of their own government in their behalf. The beat
guarantee 1 can famish them of the certainty of sach interposition
will be found in the subjoined declaration by the honorable Lewis
Cass, Secretary of State of the United States, in a recent despatch to
oor minister in Nicaragua, enunciating clearly and vigorously the
views of our government in respect to the rights of onr citizens
visiting foreign countries :

" The United States believe it to be their duty, and they mean to
ezecnte it, to watch over the persons and property of their citisens
visiting foreign couotriee, and to intervene tor their protection when
such action is jnstified by existing ciroamstances and by the law of
BatioDs. Wherever her citizens may go through the habitable globe,
when they encounter injustice they may appeal to the government of
their country, and the appeal will be examined into, with a view to
snch action on their behalf as it may be proper to take. It is impos-
sible to define in advance and with precision those cases in which the
national power may be exerted for their relief, or to what extent relief
shall be afforded. Circnrastancee as they arise must prescribe ttie
rule of action. In conntries where well-defined and established laws
are in operation, and where their admioistration is committed to able
and independent jndges, cases will rarely occur where such interven-
tion will De necessary. But these elements of confidence and secarity
are not everywhere found ; and where that is unfortunately the case,
the United States are called upon to be more vigilant in watching
over their citizens, and to interpose e£Sciently for their protection
when they are subjected to tortious proceedings by the direct action of
the government, or by its indisposition or inability to discbarge its
duties."

It is nnneceesary for me to make any further or more pointed apr
plication of this declaration, to the circumstances of American citizens
in these colonies. Their own intelligence and prudence will enable
themfo to guard their conduct that they shall never forfeit that
provident and &therly care and protection which it promises, and
which the gcrvernment of the United States has both the ability
and the will to exercise over all its children, in whatever part of the
vorld they may be.

JOHN NUGENT,
Special Agent of the United SttUa,. .
FicTOBU, Vahcodtbr's IflLAHD, November la, 1858. <Og\<C

14 TANCOUTXB'8 ISIAKD and BRITISH COLDHBU.

FDom vhat has gone before, it will not be denied tbat mr remarks
concerning tbe execntiTe were fbnnded in jostioe ; aa to tne ooartg,
their partiality was almost iaconoeivable. Tbe animus with which
tbey dealt ont law to American citizens will be best understood from a
letter appended to this report from Captain William Webster, now in
this city, from which it will be seen that tbe chief jostice of thJa colony
of Yanconver's Island, Mr. Cameron, once so far forgot himself on
one occasion as to say in open conrt that the only further punishment
he thought should be inflicted on a person named Mnnro, convicted
of peijnry, who bad been in prison for three months, was "to send
him to the other side," (Washington Territory,) " where all rogues
and rillains should be sent, where they belonged, and should remain."
Among tbe Hudson's Bay Company's people, there are some gentle-
men of high character and respectability. Mr. McKay, Mr. Mc'TaTiafa,
Mr. McLean, and the agent at Fort Yale, whose name I forget, have
«xhibited marked courtesy and kindness towards Americans ; bnt
that my strictures upon tbe generality of the subordinate officers,
"to whom tbey were intended to apply, were not too severe will be ad-
mitted, when I state on the authority of Colonel Snowden^ a citisen
of Yuba county, in California, that be learned from several Indian
«hiefs, that they and their people were led to believe by the representa*
tions of the Hndson's Bay Company's servants, that tbe Americans
were coming there to rob them of their cattle, of their food, and
their squaws ; and were advised by those same evil minded iudi-
vidnals to commence a war of extermination against our citizens ;
-and farthermore, when I state that one of tbe guns captured from the
bands of an Indian in October last, in one of Colonel Wright's
Indian fights in Washington Territory, was a British musket of the
■date of 1^7, which arm could not have found its way into the heart
•of our Indian Territory, except through the emissaries of the Hudson's
Bay Company ; and that nnmbere of similar weapons were furnished
to the Indians in the war against our troops not the slightest doubt
is entertained. My information in regard to this fact is derived from
s number of army officers, fresh from the battle-fields of Washingtoa
Territory, and personalty cognizant of the matter ; among them,
Jjieutenant Morgan, now stationed at Old Foiut Comfort, Lieutenant
Tyler, I believe on leave, and within a few bouis reach of this place,
•and Captain Fletcher, on leave, and within telegraphic communica-
tion in Virginia. I will further state that there is evidence now in
the Department of State, that after a disastrous battle fought in
Washington Territory, during the last year, with the Spokanee and
titfaer Indians, tbe mules, horses, accoutrements, and other property
of the United States which fell into the hands of the savages, were
flubse^neatly purchased from them by the agents of the Hudsou'a Bay
Company, at Colville, and other places ; that this property l»re the
marks and brands of the Unitvd States, and was known to tne par-
chasers to have been plundered by tbe Indians, who were then in a state
-of rebellion agunst onr government.

Bnt that they did not confine themselves simply to receiving this
stolen property, but absolutely supplied the Indians then in the field
sgunst our troops with ammunition and arms, is abundantly proved

Xiocwic

takcoutbb's island aitd BtansR coLtniBU. 15

by the iestimoDy of army officers aod others. Mr. John Owen, special
Indian agent to the Flathead nation, Washington Territory, vrites
from CoWille valley, on the 11th of Jaly, 1858, as follows : (I quote
from the report of the Secretary of the Interior, pages 618, 619, 620.)
"I arriTed at Fort Colville in company with the Hadson's Bay
Company's 'hrigade,' on the 4th instant. I met at Colville the
Coenr d' Alene chief, with some ten others of the same tribe. They
came veil mounted, on United States horses and moles ; they are
offering the males for sale ; some were bought by the Hudson's Bay
Company. I told the gentleman in charge that I had no orders to
stop it, but I did not think it right to furnish a market for stolen
horses to the enemy."

" The Hadson's Bay Company's train, some two hundred head of
horsesa, tarts in a few days for Fort Hope, for the year's outfit. I think
they are to bring some two thousand pounds of powder, with a pro-
portionate quantity of ball. This, as a matter of course, will find its
way into the hostile camp, or at least a large portion of it. The trade
in ammnniUon might be stopped here, but as the gentleman in charge
Cold me, we could not prevent the company from trading at Fort For^-
Biine, which is another post, some thirty miles above Colville, on the
light bank of the river and across the line."

ICr. Nesmith, superintendentof Indian affairs for Oregon and Wash-
•ington Territories, to whose notice these facts were brought, writes to
'the fecial agent as follows. His letter, dated August 2, 1858, is to
-be found on pages 623, 624 of the report of the Secretary of the
loterior.

"Yon are also requested to warn the officer in charge of the Hnd-
md'b Bay Company's post at Colville to desist from encouraging the
Indians in stealing and maraading by purchasing from them the
pr<^>erty captured or stolen from the government or citizens of the
United States. You will also warn him against supplying the Indiana
with arms and ammunition, and communicate such acts of the kind aa
may come to y«nr knowledge to the commanding officer of the column
BOW approaching Colville. If the officers of the Hudson's Bay Com-
pany have knowingly become the recipients of stolen property, they
are aa gnilty as the thief who stole it, which, together with their fur-
nishing arms and ammunition to mnrder our people, should stamp them
with infamy and cause their expulsion from American soil. It is
hoped that the military will take steps to prevent a repetition of the
outrages complained of."

The subjoined extract from a letter published in the Washington
'Union of October 31, 18fi8, from Doctor F. Perkins, of Oregon, will
fnmish kirtber corroboration of the above charges :

" We fenwined at Fort Colville foar days, and during that time
thir^ of the Coenr d'Alenes, with their head chief, were occupying a
room in the fort. It will be remembered that these were the very
onea who had defeated Colonel Steptoe ; and they had with them a
great number of American 'U. 8. D.' mules and horses, which were
sold to the chief of the Hudson's Bay Company at Fort Oolvitte,
■kt a small nominal price ; he thus furnishing a market for stolen

16 TANCOTTVEb'S ISLASD and BKmSH COLCrHBIA.

goods, ItQOwing them to be such, aod that they had been taken at
Colonel Steptoe's defeat. While we were at Fort Colrille, eveTT ot^ht
the Indiana would have their scalp da^^ce, with their drums beatmg
and war-whoop8 Bonnding. They did exactly as they pleued there,
and would go into the kitohea and take smat off of the kettles to black
their faces, which is a well known eiga of hostility, indicating war to
the knife. In connexion with this sabject, I will mention that the
chief in charge at Fort Colrille made the remark that if the United
States government would not allow him to sell the Indians ammunition
there, he would do it at Fort Forty-nine, which is three miles north
of the line in the British possessions. Heretofore there has been a
very small amount of ammunition sent up Irom Fort Hope to Fort
Colville for the winter ; hat this year it amounts to five hundred
pounds of powder, nearly doable the amount sent any previous year.
Wherb the Indians have procured the ammunition with which they
have foDght Colonel Steptoe and the whites I do not pretend to say ;
hut the fact that the Hudson's Bay Company have sent np bo moch
more than usual this year, when they hare no more call for it thsia
before, is sn^^estive, and every man oan draw his own deductions how
this ammunition is to be used."

During my stay at Victoria, I was informed by the dty marshal
that a number of American citizens, Abraham Doran, William John-
sou, William Harris, Wesley Cooper, Hulen Miles, and a negro named
William Hurley, accused of varion» offences against the law, were
about to he sent to trial without counsel. With the exception of the
crown solicitor, (prosecuting attorney) the only members of the bar
in the colony were American citizens, and these were not allowed to
practice in ^e courts. I addressed a note to Governor Douglas, re-
questing him, under these circumstanceB, to interpose and cause ooan-
sel to be assigned to the accused from among the members of the
American bar prea^nt, as the denial of counsel would operate as a great
hardship and injustice. While the governor was holding the matter
under advisement, the priBoners were tried, and with one exception, I
believe, convicted. Afterwards I was informed by a note from his
excellency that the application could not be granted, as the rslea of
the court forbade any body practicing before it who was not a subject
of the British crown. I regret to be obliged to characterize this aa
a mere subterfuge ; that it was such will appear from the fact that
the gentleman who then held the office of crown solicitor had been a
mei^er of the San Francisco bar for two years.

My correspondeace with Governor Douglas on this question is
furnished herewith.

From all these petty exactions and oppressions, these denials of
justice and evidences of rampant prejudice, the conclusion is irre-
sistible that whatever may hare been the disposition of the British
government, the feeling of the colonial officials and of the servants of
ttie Hudflon's Bay Company was aught but friendly toward our people.
Their conduct was the lefls excusable, for the reason that the citieens
of the United' States vifliting the colonies, comported theoMelves,
throughout, with the most remarkable sobriety and decorum. All the
colonial officials, including Governor Douglas, many times expressed

Xiocwic

TlNCOnTEE's IBLUro AND BBITISH COLUMBIA^ 17

their aarpriae at the utter absence of any riotous or disoiderly spirit
unoQg the miners. Even breaches of the peace of the most tnTial
character were of very rare ocourrenoe ; aiid,b7 everybody, the warmest
pruaea were Tolanteered on the invariably quiet and orderly condact
that was obaerved. I wonld here remark that from the officers of the
navy stationed nnar Victoria, and from the English gentlemen residing
on Vanconver's Island, the Americana received naught but courtesy,
kindness, and attention, from first to last ; and by none have I heard
tbe acta of the Hudson's Bay Company's servants more strongly cen-
lored than by anbjicts of Q-reat Britain who have long resided on the
ialand, and who are cognizant of the many abuses practiced by the
company and its agents.

1i the nnkind and unfriendly acta upon which I have commented
above, originated from jealonay of the advent of the Americans, or
from fear of their eventually laying claim to the country, such jeal-
ooqr and snch apprehensions were wholly gratuitous. The Ameri-
cani, it is true, were in sofficient for(» any time within the first six
months to make sncceaafhl any movement on their part towards the
leizDre of the colonies, which the fears of the authorities may have
■uggeated as possible ; but they entered the country with no maraud-
iog propensities ; and furthermore, setting aside their indisposition
to dietarb the peaceful and friendly relations aubaisting between their
own country and Great Britain, the two colonies of Vancouver's Island
and British Columbia really offered no inducements sufBcient to render
them Tortby of even a temporary struggle. It is true that, in all
probability, both will eventually cease to be under European control.
Their ultimate accession to the American poaseaaiona on the Pacific
coaat is acarcely problematical — but in the meantime their intrinaic
Talne either of locality, soil, climate, or productions, does not warrant
any effort on the part of the American government or the Americaa
people towards their immediate acquisition.

As national poaaeaeioua these colonies are to us but of little value.
As I have already stated, Vancouver's Island — two hundred and
seventy miles long and forty to fifty miles broad— contuna, as far aa I
ooold learn, not more than some twenty or twenty-five miles of open
land, and that not of the firat quality. It baa one town, Victoria,
very prettily aitaated, filled with a highly inteUigent and enterprising
American population, and destined to he a place of some consequence.
Hot the chief value of the island consists of the harbor of Esqnimalt,
which has capacity for a whole navy, and where vesaela can lie per-
fectly secure from every wind that blowa. Soke harbor ia small, but
very secure. Around the Cowichin villages is an eztenaive plain of
good land, and the coal beds of Nanaimo are of good quality. So
mnch for Vancouver's Island. Further explorations of the interior
of the island may in time lead to the discovery of more valuable re-
sources, although this is not probable. British Columbia has little
to recommend it, except the forests of spars contiguous to the coast.
The town of Fort Laugley, thirty-five milea from the mouth of Frazer
river, oontaina about eighty inhabitants. Fort Hope, some sixty-five
nilea above, contains about two hundred inhabitants, and as the head
of winter navigation will probably be the depot ot winter eapplies for
H.Ex Doc. in 2 C.ocv^lc

18 TINOOCTBr'S IBLABD UXO BBmSH OOLtTUBtA..

the minets abore. Fort Yal«, aixteen milee abore Fort Hope, ia a
bostling town of some five or six handled inhsbitaats. It ii joat below
1^6 point where the river ceawe to be narigable even for caaoea, and
ia a place of considerable trade. The river, even below Fort Yale, is
fbll of rapids, eddiea, and under cnrrents, and ita navigation is at all
Hniea attended with diEBcnlty and danger. I do not regard the gold
fields of the colony hitherto prospected as valaable. Gold will be
found over the whole country ; bat it is not extravagant to say that
every ounce hitherto taken oat of the Frazer river gold diggings has
cost much more than an ounce to obtain it, not to mention the immense
number of Uvea lost in the whirlpools of that treacherous stream. As
national posaesaions, then, with the exception of the harbor of Esqoi-
malt, these ooloniea are, as I have stated, to ua' comparatively value-
less. It ia true that the gold fields of Fraeer river, although they
will ceaae to command the attention of oar citizens, will attract emi-
grants from England ; besidea, a number of Americans will continue
m mercantile pursnits in Victoria, and the great balk of the mining
population atill on Frazer river is likewiae American. I respectfully
suggeat in this connexion the neceeaity of appointing a consul to re-
gide at Victoria, whose functions ahould extend over Vancouver's
Island and British Columbia. The interests of our citizens in that
quarter imperatively demand the preaence of a commercial agent.

The gold excitement cauaed a number of email towns to spring up
in Waabington Territory, contiguous to Frazer river and the mines.
Sooth of Point Roberta and close to the 49th parallel, a town called
Semiamo was laid out, on the little bay of that name, from which there
is a road leading to Fort Langley, a distance of seventeen miles ; and
OD Bellingham bay the towna of Sehome and Whatcom were eatab-
liahed. From this latter point a trail was cut, with great labor and
expense, to intersect the trail to Fort Hope. A number of the immi-
grants entered the country overland, having come by way of the Dalles
of the Columbia, thence taking the trail to Fort Kamloopa, and from
that point proceeding down Thompaon's river to the forfs, I here-
with present a map of the Frazer river country, with manuscript lines
and notes, which will give a better idea of it than any of thoae pub-
lished. I could not learn that any overland expedition from the States
or Territoriea eaat of the Bocky mountains bod reached that country
previous to my departure.

During my stay in Victoria, a number of American citizens who had
come down ^-om Frazer river, utterly destitute, without food, ulothing
or any prospect of employment, or means to leave the country, ap-
plied to me for relief. Being without authority to contract for send-
nig them to their homes, but not deeming it conaiatent either with
humanity or proper national pride to auffer them to starve in a foreign
land, as they would have done had they remained on the iaiand, I
appealed to the liberality of the agents of the Pacific Mail Steamship
Company, and thoae gentlemen, with moat praiseworthy readineas,
aooeded to my request to convey a number of tne most destitute to San
Frandaco, agreeing, at the aame time, to depend upon the justice of
Congrese for remuneration. A memorandum of the number of desti-
tute citizens seut home by the company's steamers, as well as a copy

TUraOITTBB'S ULiHD AKD BSSTKB COLUHBU. 19

of mr oomBpondeDoe with the compsBT's agents, ftt San Francisco,
will be foand appended to this report. In thu connexion I take ^reat
pleHore in mentioning the homaoitj and tindnen of Oaptain Lnh-
kck, of the ateamer " Haria," and Captain Wright, of the "Enter*
pTiM," to nombera of destitute citizena who bad no means to pay for
s panaee from the mines down to Victoria. A lai|ge nnmber were
tuen (uwn by those gentlemen withoat charge. Throngh the lihe-
nli^ of Hr. Garrison a nnmber were lihewise tahen down from Vic-
toria to Ban Francisco on the steamship " Cortes."

I have already noticed the importance to the British goremment of
the harher of E^sqnimalt, on the southern end of Yanoonrer's Island.
That its valne is oegining to be appreciated by that ^wer is already
■hown by the recent concentration at that point of qnite a formidable
pqudron, and by the preparations said to be in progress for Uie con-
■tanction of forts and other means of defence. Simaltaneoosly with
these movements and, indeed, somewhat in adTanceof them, the Bossian
^vemment has been, for some time, engaged in fortifying the month of
tiie Amoor. For several months past vessels from aoove have been ar-
Tiving atthat TKHDt laden with heavy gnns, powder, shot and shell, and
other materiaiB for the eonstmction of fortifications. It is evident that
both powers look apon these points as very valnable as naval stations,
ud as poesibly of great importance in other points of view in the event
of a Enropean war. In this connexion I beg to be permitted to call
tttentioD to the fact that on onr whole coast, north of San Francisco,
there is no harbor affording a safe anchorage for vessels daring the
wntberly galea that prevail in the winter months.

By the oonntniction of a breakwater at Crescent City a very safe and
commodioos harbor can be obtained, and, oonsidering the very great
importance of a safe port on the coast, the expense of the necessary
vorks would be bnt trivial. I need not say that the want of a secnre
Wbor on their ooast is a great check to the prosperity of the people
of the nerthem counties of California, and that their nnmhers and the
vast leeonroes of that portion of the State entitle them to considera-
tion at the hands of the general government. Bnt among the islands
atretching from the Straits of Bosario to the CeauA de Haro there are
a number of fine harbors, which, from their capacity and safety, leave
tu nothing to regret in having yielded Vanoonver's Island. San Jnan,
ta idand fourteen or fifteen miles long by about seven miles wide, has
two excellent harbors ; and Lopez island, opposite and separated from
it by a channel of not more than a mile wide, has another fine harbor,
perfectly land-locked and safe at all times.

Both islands possess a fine soil, plenty of timber and of running
water, abundance of pasture land, and the whole group is famous as
a fishing station.

The present condition of this j^oup of islands I shall briefly de-
mibe. They are claimed by- Washington Territory as a part of
Whatcom county ; and, at the same time, are claimed by the officers of
the British government as belonging to the possessions of that power on
tboParafic. They have already been the sabject of some controversy
I between the American and British commissioners for rnnning the
I boviidary line, and the matter has been referred by those gentlemen

20 TANCOCTBR'fi ISLAND IKD BKITISa COLUHBU.

to their rwpective goTerameots. A few words vill explain the nftiare-
of the dispute.

Thetreatyof JuiieI6,1846,8tipalateBaafollow8 : Articlel. "From
the point of the forty-ninth parallel of north latitude, where the
houndary laid down in existing treaties and coDventioas between Qreat
Britain and the United States terminates, the line of boundary be-
tween the territeries of her Britannic Majesty and those of the Uoited
States shall be continued westward along the 49th parallel of north
latitude to the middle of the channel which separates the continent from
Yancourer's Island ; and thence southerly through the middle of the
said channel and of FucaBtraits to the Facificocean : Provided, however,
that the navigation of the said channel and straits south of the forty-
ninth parallel of north latitude remain free and open to both^rtiea."

There are two channels between the continent and Vancouver's
Island, both leading out into the Straits of Fnca. The Straits of Boaa-
rio, a narrow channel nearest to the main land, and the Canal de Haro,
which, besides being the beaten track, is much wider, has greater
average depth of water, and is nearer to Vancouver's Island. It is
claimed on the part of Great Britain that the Straits of Kosario, being
the channel nearest to the mainland, is that contemplated by the
treaty ; but a very slight consideration of the circumstancea under
whidi the line was run, as well ae of the wording of the article above
quoted, will show that this position is wholly untenable. In the first

filace, the only reason why the boundary line was caused to deflect
rom the forty-ninth parallel before it reached the Pacific ocean was
to avoid the southern end of Vancouver's Island, on which there was
then a British settlement. The intendment of the article was merdy
to save to Q-reat Britain the island of Vancouver, and consequently the
nearest channel to Vancouver was undoubtedly that through the
middle of which the treaty contemplated the line should run. Again,
the islands bordering on the continent belong to the continent, unless
otherwise stipulated ; but there is no stipulation except as to Van-
couver's Island ; neither was there any reason existing at that time
why there should be, as none of the islands in dispute were then occn>
pied by subjects of Qreat Britun.

It does not, of course, become me in this place to enter into an
elaborate argument of this question. My purpose is simply to call
attention to the design apparently entertained by Great Britain, on
the shallowest possible pretext, to deprive the people of the United
States of possessions clearly theirs, and the importance of which to
them, as well as to the government of the United States, can scarcely
be overestimated.

I have the honor to be, with great respect, your obedient servant.
■ JOHN NUGENT,
/^pedcU AgeiU 0/ Iht United Slates.

Hon. Lewib Cass, Secretary of State.

TiCTORU, yAlTC0UV£K'S leLAKD,

Odober 6, 1858.
The undersigned, special agent of the United States, has the honor
io state to his excellency Governor Douglas that he is informed there

TAKCOITTEH'S IBL&HD IND BBITISH COIiUUBEA. 21

ftre rix Americaa eitizeiia dow in tbe prison of the fort awaitine trial
on rariooB charges ; that tlteee persons are denied the benefit of coan-
«el, for the reuon that no tnenuMr of the Americaa bar is permitted
to practice in the conrta of this colony, and the only British sabject
vho practices in the oonrts is the otowq solicitor, whose daty it is to
proeecate the accased ; that the prisoners are men ignorant of lav,
and therefore onabie to present a proper defence ; and that, Irom these
cansee, the accased may sn&er great hardship and injustioe.

In View of the above fiuts, the nndersigned begs that his excellency
OoTernor Douglas Till so far interpose to promote the ends of jnstioe,
as to cause ooonsel to be assigsed to the acooied from among the
members of the American bar resident in Victoria ; and farther to
proride that a similar course be observed in all saoh cases hereafter
wcorring, iintil the arrival of persons qoalified, by reason of being
British subjects, to practice in the oonrts.

The nndersigned has the honor to be, Ac, his excellency's obedient
aerrant,

JOHN NUGENT,
S^peeial Ji/ent cfthe United Btattt.

His Excellency Goremor Dodolas,

TiciD&u, Tanoodtbk's Island.

Sib : I am directed by his excellency the governor to acknowledge
the reoeipt of yonr letter of the 6th instant, reqaestiog his excel-
tencr's attention to the case of certain American citizens now in prison
at Hiis place on various charges, and who are deprived of the benefit
of ooonsel, for the reason that no member of the American bar is
permitted to practice in the courts of Vancouver's Island ; and further
desiring that his excellency will so iar interpose to promote the ends
of JQStice as to cause connsel to be assigned to the accused from among
the members of the American bar reudent in Victoria, and to provide
that a similar course be taken in all such oases hereafter.

I am also directed by his excellency to assure ^ou of his desire to
take into favorable oonsideration the proposition in your letter ; and
at the same time, while admitting the hardahip of the cases referred
to, to atate his opinion that the constitutional law of England does
not invest him as governor with authority to alter or suspend the
estahliihed roles of the law conrta of the colony.

As this, however, is a question of great public importance, hia
excellency will submit it for the consideration of the law officers of the
colony, and will oommunioate to Hr. Nugent their decision as soon as
rcoeivM.

I have the honor to be, sir, your obedient servant,

RICHABD GOLLEDGE,

Stcretary.

JoHirNuaENT, Esq.,

Speaal agaU of the United States, dtc.

n,g:,.-,.dtyC00glc

TAKC0UT£B'8 JSLAHD AND BBITIBH COLnVBU.

QovBamiHirr Hocbb, Ticiobia,
Vamanmtr'a hlawi, October 14, 18S8.
Sn: With referenoe to the oommnnicstion vhioh I had tbe honor
of-addreeMDg ron hj hia ezoellency's iDstrnctiooB on the 8th instant,
I sm directed 1^ the govflrnor to tranemit for your information a copj
of a oommaDioation receired from the crown solicitor of YanconTer's
Island, Bhoiring that, in his opinion, no power is vested in the execa-
tive to caose ooanael from among the members of the American bar
lendent in Victoria to be aaaigned to parties accosed of ofienoes and
awnUng trial in the oonrts of VsnooDTer's Island.

The governor farther desires me to state to yon that the oonrts have
BO olgeetion whatever to allow persons in cnstody to receive assistanoe
from members of the American bar, or others who may be willing to
aid them in preparing for their defenoe.

I have the honor.to be, sir, yonr obedient servant,

BIOHARD GOLLEDGE,

Secretary.
JoHif KvQWST, Esq.,

i^pectol agattjor the United States.

Copy of a letter from George Peariea, Esq. , crown eoticitor and attorney ^
to Governor Douglas, dated Saturday vmmifig, October 10, 1858.

8lB : The nndersigned has the honor to acknowledge the receipt of
yonr oommnnication of the 8th instant, accompanied hj a oommnni-
cation of Mr. Nugent, special agent of the United States,

To the qoestion proponnded oy your excellency as to the constita-
tional power of the ezeontive to cause counsel from among the mem-
bers 01 die American bar resident at Victoria to persons aooosed of
crime and awaiting trial in the oonrts of this oolony, it is submitted :

First. The organisation of the jadioiary is separate and distinct
from that of the exeeotive, and th» appointment of aov officer to
discharge ftinctions pertaining to the judiciary not apeeified by law
would M an encroachment on the part of the execative.

Beoond. Barristers, attorneys, and solicitors, are made by law o£B-
oers of the judiciary, having rights and privileges incident to suoh
office, and amenable and pnaishable for misoondnct after call and
during enrollment.

Thud. By act af parliament and order in council organixing the
judiciary of this ooloDy it is expressly provided that the chief jnstioa
shall make rules for the admission of barristers, attorneys, and solio-
itors, to practice in the respective courts of this colony.

The order referred to gives no authority, even to the judidaryj to
make aasignment of counsel to the members of the bar of a foreign
Btate, but expressly prohibits the appearance of any other person to
act in that capacity, save those so enumerated.

Until recently, prisoners charged with felony were not allowed to
make their defence by counsel, and this not until thjB Bth and 7th of

TANCOUTEB S -laLASD AND BBITISH COLDMBU. 20

William th« Fonrtfa, when by apecial statate they were pennitted
oomuel lesraed in the law, or by attorneys in the courts where attor-
nen practioe as ooqdwI.

It therefore foUowa that no power to aasign coansel is vested in the
azecative.
I have the honor to be yonr excellency's obedient servant,
GEOBOE PEABKES,
Onan Solicitor and Attom^,

Hotel db Vujice,
fiotona, Fanoouwr'A latamd, November 3, 1868.

Sm: Indiapoaition and absence from town have caoaed yoar note of
the 14Ui Qltimo to remwn unanswered until now.

I am therein advised that yom- excellency finds it impossible to
iaterpoae, in accordance with the request contuned in m; note of the
6th mtimOj to cause oonnsel to be assigned from among the American
members of the bar, resident in the colony, to American citisens
aocased of crime, in the absence of British subjects authorized to practioe
in the colonial courts. A former note had assured me of your dispo-
ation to accord to the request yonr most favorable consideration.
That the sulgect would receive such favorable consideration I had
flvmy rtaaon to expect. The plain dictates of humuiity and jostioe
thonld forbid that the lives and liberties of people of any nationality
ifaonld be jeoparded, simply oat of deference to the forms of a crude
forensic etiquette. Still more was I justified in hoping that these -
fiirma would be set aside, when their observance would operate most
harshly and unjustly agunst citizens of a power on terms of peace
and ami^ with the nation whose f^vernment you serve, and at a time
when the bonds of friendship which happily subsist between the two
coantries are being strengthened and drawn closer day by day.

I need not say that I am greatly disappointed at the ooc elusion at
which your excellency has arrived. The consequenoe of that conclusion
will be that American oitisens accused of crime in these colonies will
bCj as some have already been, forced to trial without benefit of coansel,
ignorant as they maybe of the law, unadvised as to their rights, unao-
qnainted with the rules of evidence or the rogalations of the courts,
and denied all thoae facilities for proving their innocence that in
every w^ r^olated government are afforded to those unfortnaates
who find themselves in antagonism to the law. But it is not for its
grave injustice, nor for the manifold hardships it will work, that soch
a course is alone to be deplored. It will naturally prove a pregnant
and oft-recurring source of irritation and ill feeling to the Americans
residing in these colonies. It will foroe them to contrast the treatment
of their coantrymen here with the treatment of British subjects ia
tbe United States. They know that there, no foreigner, however
AtendleBS or lowly he may be, how atrocious soever the crime of which
he stBDd* aocased, is put upon his trial without coansel to represMit
hot ; and ^ut when he is too poor to oommaod the Mrviees of thi

34 TANCOnrEB'S ISLAKD AKD BSmSH COLintBU.

Iwr, tbe coart takes mercifal cognizance of hia condition and auigoB
eoanael for bis defence. It ia needlNs to say that a compariBon to
little to the advantage of British colonial justice and its aaminiBtra-
tien will have a tenaeDcy to defeat That I am not permitted to donbt
is the Irish of the British government, ae it is that of the gDvernmrat
of tbe United States, to promote and foster feelings of cordial good
will between American citizens sojourning in these colonies and tbe
sabjects of her Britannic M^eaty.

Iregret that yarn excellency ehoald have taxed tbe legal emdition
of tbe crown solicitor in reference to what is, after all a matter of
aimple justice. It needed not that fnnotioaary's learned opinion to
prove that the judiciary shonld be independent of the ezecatire. But
iQ a colony wuere, if I may without invidiooaneBS say so, there is
obserrable so extriordinary a confasion of jurisdictions, in its fiscal,
ezecQtive, and judicial departments, and where there have been ao
many departures from law, involving a most material sacrifice of the
rights of American citizens, it was not unreasonaUe to indulge the
hope that yonr excellency, to prevent great wrong and injastice, and
for the conservation of harmony and kind feeling, would have favored
not a violation of law, but an immaterial deviation from tbe rules of
an imperfectly organized court.

Disappointed in this hope, I have but to request that your excel-
lency will afford me facilities for obtaining the names of those Ameri-
can citisenB accused of crime in the colonies of Yancouver's Island and
British Columbia, within the last six months, who have been forced
to trial without counsel to represent them, and have been convicted,
that I may be enabled to present their case to the government of tbe
United States for its action.

I have tbe honor to be your excellency's obedient servant,
JOHN NUGENT,
SpecUd Agent tif Om United Blatea.

His Excellency (Governor Donaus.

F. 8. — The last two notes received from your excellency were signed
by yonr secretary, I presume, through inadrertenoe. I beg to call
yonr attention to this mistake, in order to prevent its recurrence.

YiotOBU, Vahoodtkb's Jslasd,

NomtAa- 9, 1858.

StB; I am desired by bis excellency the governor to acknowledge
the receipt of yonr letter of tbe 3d instant, and to express his regrflt
at yonr late indisposition and his sincere hope that your health is now
restored.

His excellency wishes to impress upon you that, with every wish to
accommodate American citizens resident in this colony and in British
Columbia, and to extend to them eveir privilege consistent with
British law, as is proved by the very liberal treatment which they
have hitherto received, he finds himself conatruned to adhere to Ae
ooBoIusion already commnnicated to you reepeo^g the asaigning of

tioiwlc

TixooiTVXB'a isUlKtd and bbiiish ooldubu. 25

comuel from smoDg the Amerioan members of the bar nrident in tbe
coIoDT to American dtizens aecoBed of crime.

If tnere were no other reosoDB for limiting the practioe in the oourtB
of law to membera of the bar who are Brituh Babjeota, duly qnali&ed
fer the privilege in conformity with the general costom of ul nations,
than that the act which eatabluhed the judiciary of the colony has de-
termined the special dnssea of lawyers who are competent to practioe
at the bar, his excdlency oonoeiTes the qneetion la thereby plaoed
beyond the control of theexecatire.

for yoar more particular infiwmation npon this point, I hare the
honor to enclose a copy of sach of the rnles of court as bear npon the
sn^flct.

The power to admit persons eligible to practioe in terms of these
rnles is ^Ten to the ohief justice.

His excellency is oonvinoed that yon labor under misapprehension
if yon floppose, as one portion of your letter would seem to indicate,
that the bres and liberties of people of any nationality are put in
jeopardy out of deference to what yon are pleased to term a crude
forensic etiquette ; or that Amerioan citizens aconsed of crime in these
colonies will be or hare already been forced to trial without benefit
of counsel and anadTised as to their rights.

As yon justly obserre, the plain dictates of humani^ forbid, and
the humane and liberal practice of the courts very careMIy prevent,
thepoBsibilityof any such deplorable consequences.

With the view of satisfying yon upon this matter, his excellency
wonld explain : That all persons aocnsed of crimes are tried by jury
inal ; that the magistrates who are oommissioned to preside at anon
trials are gentlemen well known in the community for the respecta-
\A]itf and humanity of their characters, and whose sentences are cer-
tainly not tinctnred with severity - that on all criminal trials the
Bocnaed are allowed every reasonable facility for proving their inno-
cence ; that they are not only permitted but invited to have profes-
siosal oouDBel or private friends of their own selection, without regard
to nationality, to advise and assiBt them before and at their trials ;
that the only restriction of profesaional conosel's pririlegea is that of
fhadutg; that this prohibition extends to British anlgeots equally
with the citizena and aubjeots of all other nationalities, by reason of
there not being, at the present moment, legal practitioners in the
colonies eligible to practioe in the courts — an inconvenience only ttaa.-
porary ; and that lor the same reason the crown, as prosecutor, is
debarred the privilege of oounsel to plead against the accused.

Ton will thus see that American citizens accused of crimes are
treated exactly similar to the subjects of her Majesty.

The gravity of those allegations made by yon caused his excellency
so much concern that, in addition to other investigations to aaoertain
thp tenth, he applied to one of the magistrates before spoken of for
exact information, and received an answer, of which a copy is enclosed
for yonr information.

His excellency f^ls confident that on your being informed of this
liberal and humane practioe of the criminal courts, rendered necessary
by the present anlooked-for ciroomstanoes of the country ^ an iul-

26 tavcouteb's ibland and bbituh tmJOjimA.

avoidAble tonponuy expedient, 70a will rfladilj perouve and admit
that tlie ooatraat irhich yon have drawn between the treatment n-
ouTed bv American aitiniu rending in ^ese oolonies and that
reoeived 07 British Bulijects in the United Btatea ia not grounded on
UetB.

Hif exoellenc^ ia constrained to gire a pomtire denial to yonr aUe-
gation made in another part of ^onr letter, that " there hare been
many departores from law, inTolving a most mateml sacrifioe of tli»
intereets of American citizens. "

No SQch irregalaritiea hare oocnrred, nor is his ezoelleney aware-
of any anoh oonsecLamaea as yon aoeert having aocnied fnHn a da-
partore ttam law in any care ; and be is at a loss to oonoeive to wbat
yon can allnde by this general assertion.

His ucellenoy is confident that yon cannot allnde to the eflboti of
decisions of Uie tribunal in dril oases ; for it appeus that 4^ tha total
nnmber of suitors in the " Supreme Oonrt of ^TilJustioe" dniing
the last few months, a lar^e majority has been Amerioan citiasna— a.
oondnsiTe pnxtf that their interests have not been sacrifioed by ' * OMuaf
departures from law," or they would not oontinne to inToke jnstioe
belbi* this tribunal.

In answer to yoor request that his exoellency will afford yon £kdli-
tiss for obtaining the names of those Americtui (atiaens aooosed of
crime in the colonies of Vanoourer's Island and British Oolombia
within the last six months, who have been foroed to trial without
counsel to rmreaent tbem, and have been convicted, I am to inform
you that it wUl at all times afibrd bis exoellent^ great pleaattre to
supply you with all useful information in his power, and to afibrd yoa
erery possible facility for collecting snoh whenever accessible; but that,
as no such oases as those mentionra in the oatosory you have framed
have occurred in this or in the sister oolony, ois exoelleooy flnda it
impossible to comply with your present request.

On tbii put of the subject his excellency desires to add that no
distinction of nationality has been made in the oases of pWMHis tried
for crimes committed against the laws of Great Britain in these oolo-
nias, and that ail such persoDB have been fairly and impartially tried,
with all the advantafffis extended to British sul^ecte, and tar this
reason he foars it would be impossible to ascertain with any aoouracy
the nationality of all the persons who have been " accused of crime
and oonvioted," and assoredly no retom of American oitixens " wbo
have been ^irced to trial without oounsel,&c.," could be obtained, fw
the reason that no such oases oocnrred ; a &ot of which the details ^
the oriminal praotioe already herein given will satisfy yon.

His excellency desires me to inform yon that the two last letters

whioh he had the honor to address to you by his private sacretair,
alluded to in the postscript to your letter, were not signed by the
seeretuy by inadvertence, as you presume ; that the usual medium of

official commnnioations is the colonial secretary, and in the abaenca of
that functionary the governor's private secretary was deputed to sign
the letters referred to in behalf m his exoeUeney ', a oonrse whidt was
not adopted from any disrespect to ^od, but ia eenformity with diplo-
matic usage, and in which sense his excellenciy b^ yon will aonpt

TUOODTBS'S ISLAND IHD BBinSH COLHUBU. 87

titeM aod utT fotnn offiaal oommnnioatioiu which he mKj have ike
hoBor of makiog to yon in that manner.
I haw the honor to be nr, yonr moat obedient wmnt,

BICHAHD aOLLEDaS,
Seontmr^.

S^ert^ffte Supreme Court tifeivitjva^eet^ the e6ltmy<^Vanooiiver'»
Idam, respecting the admiaeum ^ pratiiltimietn,

^era shall he enrolled in the oonrt, to practice therein ae har-
Tiflters, meh pereonA only aa ifaall hare been admitted as barristen in
England or Ireland, or advooates of the coart of sessions of Scotland,
or to the degree of doctor of civil lav at the UniVersitj of Oxfi>rd,
Ctmbridge, or Dnblin.

There shall he enrolled in the oonrt, to practice therein aa solicitors,
nch persons only as have been admitted to practice aa attorney! or
solicitors of any of the oonrts of record at Westminster or Dnblin, or
being proctors admitted to practice in any ecclesiastical oonrt in
Enguind or Ireland, or being writers to the signet in Scotland.

Nothing contained in any of the mlea shall be conatmed to pre-
Tent snitors from appearing and acting for themseWes, if they sKiJl
•0 think fit.

Copj of a letter fnmi Augustus Pemberton, Ikg., Justice y the Peace,
Commissioner of Police, <&c., to Governor Dou^as.

VioNBiA, 'ViSKomn.'B Ibuho,
November B, 1858.

BtB ; In reply to yonr excellency's commanication of this morning,
referring to certain aUegations contained in a letter addressed to
yon by John Nugent, esq., spedal agent for the United States of
America, in which he requests that yonr excellency will afford him
fttnlities for obtaining the names of those American citizens accnsed of
crime in the colonies of Yancoaver's Island and British Colombia
within the last six months, who hare been forced to trial withoat
connsel to represent them, and have been convicted, I beg leave to
state that I am not aware of any snchcaae, the oniform practice being
to allow allcrimioalB,of whatever nation, the aasistance of friends and
advisers whetiter legal or otherwise, to aid them in their deienoe.

Tbe only instanoe in which a crown solicitor has been employed to
onidnot a prosecntion in coart is that of William Harley, a colored
Baa, not aa American oitisen, who was indicted for shootii^ at
Qeo^ P. Heap, with intent to do some grievons bodily harm. Heap
is aa American citizen. Hnrlejr was assisted by a Mr. Davis who
was allowed to rint the aocnsed in prison, and to stand by his side in
eonrt, to ijiaUenge the jury, and to advise wfaatcroas-qnestiona should
he pnt to the witnesses, and what defence shonld be taken. Bat aa

28 tancoutzs'b island ahd bbttish coluhbu.

Mr. Baria waa not competent to plead in court, the crown soliritor
lefrained from addresaine the jnrjr.

The conrt wh>ch preaidad on this oocaaion iras held under a apeoial
oommission iaaned hj your excellency to three joaticea of the peace, of
whom I waa one.

For my own part, I moat aolemnly declare that I make no diatiDO-
tion, nor any inqniry, aa the nationality of peraons charged with
oommitting offencea against the laws. I deal with eaoh case according
to its own peooliar merits ; and the maintenanoe of peace and .order
dnriDg a time of great excitement has been a aabject of coagratnla-
tion ; in proof of which I take the following extract from the " Yio-
.toria Gantte,' ' N^ovember 2, 1868, the editor of which a an Ameriaan:

" The order, that has been maintained here, under cironnutanoe of

S'ave forebodinga, aggravated by the nnmeric^ weakneas of thoae
reotly pledged to snatain the law, cannot bat have a decided tendency
to inspire that confidence upon which is dependent the character of
our fntore popttlation."

I have the honor to remain yoor exoellency's moat obedient humble
aervant,

AUGUSTUS PEMBERTON. J. P.
Hia Excellency Jamis Douslab, Esq.,

Governor of Vancouver's Idand and Briiuh Columbia.

NoTK — I would remark that the facts here denied are notorious
to everybody in Victoria. While (Jovernor Donglaa was atill holding
my application under advisement, the men were put upon their trial,
convicted, with one exception, and aentenced, some of them to trans-
portation, notwithstanding that Mr. Labatt, an American citizen,
arose in court and requested a postponement of the trials even for a
day until the will of the governor coald be known. What Governor
Douglas dwells upon as an act of liberality, permitting connsel or
friends to confer with the accused in prison, was simply their legal
right ; hat the truth is, they did not enjoy even this right. They
had no legal advice whatever.

JOHN NUGENT.

Mr. Nugent to Oovemor Dovglat.

Hotel db Francs, Yictohia,
Vancouver's Inland, NovetiUter 12, 1858.
Sis : In my note of third of the present month, I had the honor to
call your attention to what I conceived to be a mistake made by yonr
secretary in siting jrour two communications of the 8th and 13th
ultimo, respectively, with his own name. In a verbal conversation had
with yonr excellency on the day on. which yonr last note was dated,
I intimated that I could not receive communications on matters con-
nected with my agency throogh the medium <^ yonr private wcretaty,
that gentleman being to me officially unknown. Sinoe then, I have
received another note dated November 9, 1868, donbdess dictated by
yonr excellency, but signed in the same way aa the two preceding.

TUrCOUTEs'S ISLASB AMD BBTTIBH COLmCBU. 29

Not liBTiDg been made aware by my gOTernraent of any ciroumitanoe
giring yonr ezoellency the prerogative of oorresponding with me at
nctmd hand, and only throngh a third party, I regret to inform yon
that I cannot take notice of the contents of your oommnnioation of
the 9th instant ; and farther, that all written oorrespondeace most
oease between as with this note. I am urged to thia step hy a sense of
daty alone; and although I would be undoubtedly jastified by the
rules of that diplomatic etiquette to which you appeal, in returning
your last communication, I refraia from so doing, because it is my
desire to avoid all appearance of harahoess or unkindneas ; beoauae I
am willing to attribute yonr excellency's course to a want of oonver-
nncy with such matters, rather than to uncivil intontioD ; and becanse,
in obedience to the spirit of my inatmctiona, I am anxious to main-
tUD, to the end, the amicable relations that have hitherto subsisted
between your excellency and myself.

Lett my official duties should not afford me leisure to call ibr the
purpose of paying my respects to yonr excellency previoua to my de-
parture, I avail myself of thia occaeio:: to bid you farewell.

I have the honor to be your obedient servant,

JOHN NUaENT,
Special Agent qf the United Statet.

His Exoellency Qovemor Dodqlas.

Sait Fkaitoboo, December 22, 1858.

BiR : Endosed please find copy of a letter addressed to us by Captain
W. L. Dall, which furnishes statement of the number of passengers
transported from Victoria to San Francisco, by your request.

We trust you may succeed in gettiog a bill through Ck)ngresB which
will remunerate the company for the service.
We are, respectfully,

FOBBES & BABCOCK, JgenU.
Hon. John NneBNT,

United Stale* Commiaaionei; tt., dc., ffdehtngton.

San FBARaaco, December 22, 1868.
OnrtLBHra : The Hon. John Nugent, United States Gommiaaioner
to British Columbia, went psasenger with me from San Francisco to
Victoria, and on the passage up suggested that he might find some
Americans in destitute circamstences, wishing to return to their
homes in the United States, and desired permiasion to furnish passage
to such as were destitute, that they might be able to reach San Fran-
cisco ; at the same time he wished it understood that he had no
aothority from the federal government to make any oontrut for trans-

30 tahcouteb's isuhd ahd bbttibh coluubu.

portatioa, but promiaed he would notify the State DeportmeDfe of what
had been done oy the Fadfic Mail StMrnehip Company in the way of
transportation, and exert his influence to hare the aerrice properly
paid for.

Ab I had your consent to make some arrsngemeDt of this kind, I
told him bis written request to our agent at Yictoria, or myself, would
«ntitle tbe bearer to a steerage passage. Neither Mr. Nngent or
myself ever supposed there would oe occasion to extend this privilege
to many.

The Northerner, in October, brought down ten passengers, and the
Panama, Kovember 2, serenty-fonr, and Panama, Norember 22,
flirty-one, making in all one hundred and twenty-five paseeDgera
furnished transportation, whioh, at twenty dollars each, the qmisI
price, amounte to twenty-five hundred dollars.

The persons thos relieved were in very destitute circnmstancas, and,
really, had not some way been found to enable them to return to their
homes, I do not know where they would have found fixid or shelter.
Yours, reepectfhlly,

WILLIAM L. DALL.

Messrs. Foebk & Baboock,

Agenia Pacific MaU Steam^ip Company.

I certify that the number of passengers above mentioned, one hun-
dred and twenty-five, were brought down from Victoria to San Fran-
cisco, free of charge, on board the Pacific Mail Steamship Company's
steamers, at my request ; and that the nsnal rate of steerage passage,
during October and November, 18S8, was twenty dollars.

JOHN NUGENT,
Bptcicd Agent of the VnUed Stata.
WASHmoTOiT, D. C, Jcmuary 2i, 1858.

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35th Cohobss, )
id Seuion. \

HOUSE OP BBPBESENTATIVES.

Ex. Doc.
No. 112.

CONDITION OP THE BANKS.

LETTER

SECRETARY OF THE TKEASURT,

Brpcrts of the oonditiott of the banks tJiToughovt the United States.

MiROH ^ 16C9. — Lkid on tbe Ubie, tad ordered to 1m printed.

TbE&BUBT DBPARTHEirr,

February 28, 1859.

Sis: In compHanoe witb a resolution of tlie House of Repreeenta-
tirea calliug on this department for as annual statement of tlte con-
dition of the banks throughoat the Union, I have the honor to submit
the accompanying documents.

The; embrace the accounts of 1,4'76 banks and branches, being,
with a few animportant exceptions, all the chartered banks that were
in operation on the let of January, 1859.

The returns for the last three years give the following general
results.

aM,«l»

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t,U0,33B

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iia,oei,Mi

BAKU, Ml
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2 CONDITION OF THE BANKS.

Referring 70Q for further particulars to the documents herewith
eahmitted,

I have the honor to he, very respectfally, your ohedieot aerrant,
HOWELL COBB,
Secretary of iKt Treamery.
Hon. Jahbb L. Osk,

Speaker (^ ihe Howe of SeprttaUativ€$.

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CONDITIOK OP THE BAKK8.

Aidrad fnm At ntartu tf tiw ouAkn y On leneral aieorparatti bantt n
A* S<tiirdai/ prtctii^ tittfint Mondttj/ c/ January, 1859 ; pnfortd
MM <4 Aafttr 47, mHim iO, </ l*i /fnuof SliAiKi.

Jfutrw, lu (A^ aaittd on

n an^omaty to Iheprav*-

InfOM

Aiibun. 1 AIIM. 1 Adunk.

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CONDITION OP THE BAHK8.
A 1. — Abdrael ahSMMg Iht etmiiliim iff tiu baaJa m JTuiRt— CooUaued.

Bank of Oum-
bciland.

Buikor8iM(

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enal.

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78,838 31

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U,S78 00

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dutto other iHnlLiiiiEcpied.. ..

•\'SS

ll,4!iS 17

T«. ..»..«. ............

*ii,m 73

»,««

137.317 «

187,»« 81

m, 03118

muasBcia or th ■Alia.

Gold, lUnr, and other coined

1B,BSI M

io,ootfOO

i,fl7i«

»i,9ad3i

7,Tn 38

H,S77T7

I1.85G87

Nolttlnc

B,H»0«

l,S4M
33,383 U

137,<« IS

70S3M

Bllla or oibar baaki fticoipoimted

|1,8W»

»Ui of otbcr buika wlllioal OiU

9,183 00
18,S1T 10

SM,oii n

300 00

S3,BB4 1S

8»,«6S18

aSj"m o''f''.;i^ri.t r .^idini-

H«.,bui.<>r..cb«.nj^t>d.i)

18,313 M

m.«.73

9S8,1G9«>

.37,317 «

i8r,,»M

1»,WII

oci.ni,im

8,130 00
»,«»00

3,887 06

Oct l,18S8.

1,3M38

None.
11,800 00
10,814 08

10,785 IT

"•SIS

Oel.4.

3,000 00

8,000 00
l,4W00

l,5W0O
13,7B0O

Oct. 1,1=48.
T.078 00

i,»oto

14,«»80
590 00

,SSS

On. 4,liua

Anonnt afdebu doc and uol paid.

4,000 80

ii^t"i«'f^"^ii:^'i:^

1,8JH5

Amonnt oruunrid dibii nipatd.

8,3a IS

• Unpaid dlTldaada.
I And Bbeeki.
tlBelieeka,tMS 70.

n,g:,.ndtyG00glc

conmrrioK of the bakes.

A I. — Abttroet aaUUtM^ O* MHimion ^ tJu biaJm m Jfomd—ConUnned.

B^.

Blddarord.

Balhal.

DBCkapon.

CUMl.

MI raoM m auru.

ClfWMIWk.

NhjgitimoB

"ass

MUM

'sK»44 00
14.«B»

31894 33

9,690 99

tte^M8 48
99,938 09

H8, 878 49

jgjgff liile™t.ll. bUi. in
4h la (HlMr kuki ciccptm . ..
CM d^Hliad bwflM >■»>«»•. -

19,830 77

•aO,B08 41

«4,S44 19

tsss

TMl aanui dH Odd. lb. iMdb

14T,O80 73

973,979 33

177,394 a

199,984 08

1,983,934 00

inooicu or TBI iaiu.

3,398 00

m,n3 41

9,798 6S

11,991 30

9,090 00
1,088 00

191,389 01

10,098 94

41,IIB »

1,103 M

889 00
IS, 790 «

991,144 48

1,338 90

998 00

17,397 81

193,748 33

39,90100
9,981 0«

1,007,000 90

"ii"*" *"" '''"™' •■*

WMwtot'n^^ar tonka....
AmuI ar aU daba dac, laaludiDK
^ STfaaSd"^' "* "'

'-—•■'——""'■

147,080 7S

9TS,579 33

177.394 99

159,964 08

1,983,934 00

UHofdKlaflDtu.. laMdlTl-
Awva'ir dcl«^ daa ud in paid',
^•■1 coaaldarad aa dnbtnil ITT.

Iwui dw mm dincuna aa

Sept. 10,1898.
1,000 00

s,moo

8,008 49

18,890 98

5l]3 0O

OCT. 4,1898.

300 00

17,390 0*

900 00

9,089 00

9,890 00
4;3MO0

3,839 as
400 00

8,000 00

3,M8 00

7,983 M
3,886 99

3,898 80

890 78

19,000 00

9,498 03

18.084 70

8,790 87
tlO,7IO 71

79,998 98
9,798 00
99,000 00
19,800 00

19,188 m

•amiai, ai ladirldoab, or aa

* IaGlDdla|t3

nt la aecnnd bj penoail fnfulj.

n,g:,.ndtyG00glc

CONDITION OF THE BANKS.
A l.—Ai^ad eciimng tht eoiuKli.n ^ Ih* ha^ vt JTiiiiu— Coatinned.

Cilmk.

Ouco.

OUjr.Balli.

"'"iT-

CoMoM*

VDI r»0» TBI »•■«.

•'ass

IS,0S1 10

*3W 30100
DST.MI »

!B,17IW

II 09

OmIi depiMltrd, iMimiiif all mini

not bnrlnf Intcrat, lU Mil- In
circulation, praBMkiid biliBMi
<lii>iooin»ta>.l.i»ci^picd....

B,90ia9

Totil (DuiiiBl dn* ftom lb* kuki..

»,«.,

1,BI3,MS 74

934,38100

13«,«8 0l

«»,TBaei

'*1^"^\^"l-^^^..

MOO
I1,S»00

H,03>W

1,43100
lll.MSW

1,071,480 »

1II,1UM00
•SMOS

"■""'

187,185 la

7,01S l>

3,2B00

1. tot 00
0,074 M

1I»,H3 31

6,ia3 8i

•m* or otb«r buki wlUiPui tlil>

BkluicH dna (hiu atber buki....
AmoaM ofalldakudue, IndwUiii

97,MI 71
138,009 88

tMil unrant ornMrareu of banki.

IB«,40>TS

l,aS3,»U 74

>3i,aiioo

131,n8 ■!

1B0,7»BI

MTiBunu, iMimTn nam;
lata asd amouil of Iw dltUmd,

Jan. IS, J8W.

14, OBJ 11

Uaknown.

10,00«n)

1,3MM

T,5»00
10,811 W

BB,«saw

KOM.
48,000 00
B,00*00

ao,nsT

»,B1I48

LS?

1X4. 1, IttK.

asow

ia,3»oo

4,»00

i4,sa3«
loloaoss

lima of dl^ni iKuIl'dtiri'

JalAim

1,083 01
4,000 00

*^c^'^''»d"'i!sr"'

BQU ia eireulatloa oodet (In dol-

8,000 00

11,000 00
38, JOT «

s;»»io

AnomtdM ftom dlnolon h

0,130 00

8,387 «

8,413 41

14,744 87

'^aii^Y

■ Aad ebacki In Botun.

n,g:,.ndtyG00glc

ccan>m<»r of tee banks.

»*un.

mN»>.

rimmnl.

INMlW.

Onalw.

SSKi"--"------;--

«lM,tMM

fTS,IWIM

1;SS

•^ss

M kcmrtBf InnnM, <n Ulli ta
tHIoattaerbukificapud ....

■iss

4S,7n3>

i«,n<a

TMI««n>td»ft«Uuibuki..

ST,m«

171, r»»

U4,M1M

i«,mi«

iiT,jn a

"s,jr,i-r "" ~".

io,nn

S;S£

m,ma

S»T7
S,IMM

;;s:

''SS
w»,mu

MB, Mih or uctaiBri, wilJ

3, sun

M4,3W IT

1S,M*U

TMU u(M>i arranBKwoT buk).

BeT,M«

17*,37»I»

ait,Boi SI

180,11198

iiT.on «

Oct. 1, IBM.
1,BT4 1S

i,niOD

li,ffOM
3,W7T»

3,MIW
U,ONOO

ii,«noD
v,oo»w

0<i(.4,iaBS.

ll,3ISaT

i,«aw
i>,aBn

>4,7BI1*

^700 00

MSM

1S,I)MN

RotUf.

Ani du fmn dk«M h

.ss

n,g:,.-ndtyG00glc

CONDITION OF THE BAKES.
A l.—AbHratl nUbUms Hit amUwn ^ ti4 bmJtt in ibHU— Continned.

0««»e1.

Qnilntt.

.,....-

■.!>. j

■«™«™"-

•S'SS

91,883 43

5SS

•^zs' rtrss

moIkMHuc iDl«l««,lt. Mlt> In
dH U Mbu bub tietpud .. .

is!:

1D,1M08
47,083 41

ti>Ul ■mounldHftanlha bub.

I»,3SSU

M,TI»«1

ia),4Tl 44

lM,ia IS 1 310,489 M

•Sijfri.a.isj.ss'.

i,niao
■n,vnK

4,0«3 3S
fi,000 00

1,413 DO
IS, DM IV

7»,IMM

4,978 00

tffiS

i43,«ai

ig,snsT

0,040 08

1I,4M>4

S,MOOO

Ba.<>f0IlMri;ti.towUfec;^IIM>

3,08100
M9,1SS(0

um dtH miDO&rluiki

79,B«M

918,00) n

,«^^««»f™,«™«fb«b.-

w,mw

W,TWia

160,47144

3M,ia9 93

310, WM

Iiu ud *in«u>l or IM dlndxid,

Si'.

NOH.

4,000 00
NolUni.

0,400 1)0
MOM

1,1191 K
Unccnaln.

s,Maoo
a,m38

N«bi»i.
a, mo 00

Bcpl. il. IJ*

l,S17 30

None.

ODbWWL.

9,0)8 00
7,«74M

9,aM«0

e»,9sioi

is,ooooo

0,500 00

11,984 41

10,M9 49
■0,18>3S

9,au4i

19S»

4,900 00

AbmhI of Rwred preflti u Uu
Bin* U cMuKUoii nnd«r fl** dot

AWNM due ftom dlwuin ■■

,cSS-^I^

9,SI4 4i

as 3

«ISSSii,;ii;ii;iiuiV.

n,g:,.ndtyG00glc

CONDITION OP THE BAMM.

Una Bock.

toMBo-A-

Mais*.

„"«"-,

sat nam tmi busi.

•'S:?Sm

«IB,B45 00
■ l,4W IB

13,7*3 BO

ilsuoo

tM,OOODO

•'S:SSIS

NoSia,.

n.4Mis

«,I7BSI

CM 4tpiiidu<l, 1>cIdiUd( (U ■ibi
Ih u oOwr buiki ciEaplal

tss

M, ISO 78

toU MHDt dM fioni Ac buki.

«0,«<«

ISO, MOW

■l,3M 01

I04,SW 17

188,394 SB

OM. Anr, mud oO»r «>tai>d
■Hull la itwir huUD|-b«M*.

•S.WTS

tiie,004S4

i,S»S4

"•SS

I,S37 0O
S,S3<U

79,ua3e

T.nOM

NolUaf.

1,000 W
IB, BIO 33

ISiS

tint or Mbw bwh. iBccnwueii

nsoo

i,M>t 00
is,a»M

m,ueTi

"SiJI "^ ''°" "^"^^ *•■

Awmi nriO dcbn dae, IneliKllBi'
mum, klk or cietau;*, ud iot
•ucki u4 (^<M dcbu afaTarr

13,BHB>
160,03107

«0,4M7I

iai,s«T>

>1,» 01

104, iwn

US,SMSa

>«( Md «MBtof im dlTMand,

"Mia

o«.ii,i»se.

10,00000

7,000 00

i,eesoo

1,1««T

OnooUM,

084 81

(KM 00

0,000 00

3,37t04

e,3«M
1,143 90
IDJon S3

ap..3o,

03131
NoUdof.

0,400 00

9,onM
3,001 as

3;SS

0.ul,lBM.
S,9S8B1

*:r.ii£!s>'^£sisa'^''

4,000 00
10, All 0«

B,ini78

^BOD•]•

S,«U13

4,8KC8

*-»y- *«. dU-e«» -

53S51 >^\ ^I^SnT?"

if:::^i;;i;;;^'M^»^:

1 iDdudtaf •I«,431 71 cluqcd to IDM tcconat.

uy Google

COHDrnON OF THB BANES.
A l.—Ji^ad wUWv Ue eonJUion if At \a»i» m JtHM— Continued.

■adTndere'.

»"-"

UBikel.

bI^''

Sni^.'

-""'

fSSO.OMDD
194, MT DO

■■•ss

«»,«atoo

18 5U00

'btjw

aioo,ooioo
iia^BsioD

S,I»7S8

iii,n7W

MM bMMoi Inierw, fu Mill lo
clremumn, proDti ud iHlucn
dM looihcr^nki iicepud

io,ssa7T

44,3B1 SB

aloooN

loul UMBi do* Ihu U» buki. .

M),]asB3

YI,«8S»

M,43in

ffll,«««

4H,1D1J1

OoM, •«*«, nid other corned

ia,BMes

1»,M1BS

456,™ «!i

S,a04 73

■,>7t OS
1,350 00

•^3S

4,soeoo

t, 40(00
10,100 14

180,741 89

^^^

T7 00

1U00
«.038IB

Bin* of oiher buki wflbonl IU>

4^:s£

M,ir»

BUucH du« rron oibei luki. . . .
AoMKinl of Ul debu due, inelndlai
BOUI, bill! of *icbui(c. ui<l ■U

•""iiiii-io-

i8a,s7)m

ui),isgs3

T7,SHI>

MB, 431 n

9u,i«« <a

dHinn

BUa ud lummi of lut dlTldcBd,

Oct.], IBSS.

990 00
10,000 00
4,700 00

ST.moi
B, goo 00

10,U0 0D

Dee. i, law.
300 W

"ToooDii

0«. 1, IBM.

M1S7

B,S7>03

MOHI.

^ooooo

4,090 00
9,80111

1,900 00

94,094 80

*7<S?oJ

Oelober, lesa.

gs,9M>o

line of dedarJiii Iha lut dlTl-

Aoaiml of debu due mid nm pild,

BIIJ> Id clreulmUoD DBder Bva 4ol-

9,000 00

0.817 «

14, saw

'l;3S

u, 000 00
mo9

0,404 40

B;«aa7

ia,«Boo

Anounl due flom direcun u
paRtle>, u Individ uilh or u

Amouot due rnHn iiDckbolden u

4,0(8 44

Amiraiii of MU^ d^bi^ uDJi^. .

slsaoa

• TUi (WHiiii laelddM aeo aapald dlirtdmdL
t NM hieraduw |3,000 depoeU la SDlblk BtDk.
i BmI «MM nlMd M 1(3.000 ehU|«< Hi pnllt wd k>

n,g:,..dtyG00glc

CONDITION OF THE BANKS.

A 1.— .ai^*i< oiUtlBv Ot (odKltn </ fk ia>b M JfinM— Continiied.

.».H-,..

.»-«.

NoRk.

.,«.™.

»«,0M«..

iimna

(30,000 00
3fl,S93 00

"■'SS
5SS

«M,000 01

iH U MlKI bum CICFplnl

Hwh>.(.

«i,ni43

•I.MBM

101, snu

WHWn

1*,«6H

S<H, dnr, ud o«Ii« m(m4
■full in tMr kukt^-bmua . .

U,gM8S

4,9MM

800 00

«100
10,«IM

••ss

noo

98 00
H,0J»«

i»,ono>

fSSS

i.i»eo

B,iaBM
1W,MI«3

4Meo
n.aasiB

Ahum oIt HI debt. d», InclKliw

IMlMUt or IMNBCM of kUkl,

ni,ma ta

Bi,B«M

in,BSLU

160,«tS3

T4,«t4f

iMt Wl UBUI Of IWl ilTUtDd,

U4w*a, iBclMiU....

is.r.rr^.F^"':.':.

e«pi.;i,i»B.

9,113 «l

"a"

IMOO

1,900 00
9,400 00

9,«M00

11,973 00

l,«)tlW

B.pr«,lM8.

l.WBS

8,100 00

3,000 00

900 00

n,i3Sie

■^vHiyoo

Not. 1, ISM.

AMUt of dikW dH Ud BOI |«U,

Ubl. drcQluM Biid« fl» dol-

13,000 OD

It, MO as

T.anas
9, Moot

Sr,7M7fl

»,oooo»

1,H1S«

8,000 00

c,«aoo

4,143 91

10,710 08
9,000 00

sSiS.iJSi'r.ii.^

n,g:,.ndtyG00glc

CONDITION OP THE BANKS.
A l.—Aitlniaali&ilmgaeaiHdiliatqfllubaa'ain JVobw— OoaUnnsd.

Oakland.

OtDBO.

Oceaa.

P.jap«»t.

-'-'-'"•""

I'rasi
'mil

1«

l<l,M3t7

•!!;!SI!

S3t ST

"lis

■»,M0 00

Cuh dcpiKltaJ, iDcludiof HI umi

not bnrJni Inunit, In Ulla In
drenlukHi, pnllU Md Mucm
diu to other kink* eicepted

11,138118

88, BUM

3B,173 04

Tom (DOUDt d<» rnn tke Iwiikt.

l«S,BaOli7

101,738 3>

78,418 «$

in. 888 n

]l«,8n ?7

Gold, lUnr. ■■< other cotned

eoeoo

404 00
S,S38IB

14B,M1S1

,1"!"'

MR 00

B,Me3ll

88,399 M

S,t0BJT

T,B30 9S

1,147 00

"ii"t£La!^.':!"**.'?f:T?^.

BUla of aUiwhuka wioiiiat'uiia'

13. «

1,030 00

IB, 403 W
170,044 33

Baluicei du Horn «h«rbuki....
AniMDl orui itbu au, iDCliMliiu

D0te>, b[lli nf eichUKC, and all
novki and ninded dafen ofafeir

«,TOTS
88,638 98

^llllM

«8,43«M

„d™,.,.r™™ .,.„■.

i(B,>aon

101,731 38

7g,4l«8S

li9,B»K

ii8,ngn

Rata ud uosnl of Ian dlTldrnd,

418 81
IMI.l»f.

9,144 ra

18,174 13

''s.'mo'&
Jol7 B, lass.

8»n
sssao
T.aisoo
s,««n

1S,»88

Oet'lSU.

115 »
(08 08
3,100 00

«,0BS7S

s,i4s n

8,eian)

Sapt-n.lBM.
3.784 34

Oct. 1,1838.

BIIU to drenlailOB ODdu tn dol.

10,000 M
IT.UOOO

7,784 00

n,S3ooo

3,988 08

5»33

meirhen o^a am, of ai ifniu
AmlSl'i'^f'iim^d'dib^ uiiid'.'.

n,g:,.ndtyG00glc

CONDITIOK OP THE
A l.~Ai1rad cdbMbv <*« candiliM ^ lit

BANKS.

tomb n Maine — Continned

?»!*.■..

l.««--.

BipMbM.

aulf Kl*cr.

■"""

t9S,000M
1>,MB3

91WI.0W 00

ii,sia 39

i;«aot«

3r,si3 4a

7,778 M

HI bHilBI iBWm, lU bUb ill

4h to HbA'buk* nupud . ...

1 *-•

>«_«., -»»».«.«.t..

i(s,u«[e

ii*,iia H

309,M7n

183,3a <1

197, TH«

Sou, ritnr, mM oOiar coiiMil

.SSi*!'.'.':^.-..'™:

I4,HTM

nsoo

1W,I»M

30DM

iseoo
ia,Ki or

M,oran

•sss

saoe
iii,mn

T,m»

•13,038 SB
tl,W3 »

4,I)WM

118, moo

iniliteSBU T.....

iSe-;^-2SC£..r:.

M3«»

S8n
S7,UaBI

80,946 18

t™— .,«™-„-o;».u

in,nw

111, TIB IB

301, an to

183,343 81

im,7«40

Oct., I8M,

Uncenila,

io,pg()w
u,3asso

NiHW.

1,000 DO
5,6»7(»

B,B»M
B,7«8 0a

Oct. 14, lew.

Mom.
ft.CMOO
3B,S7*BO

»,3eTM

18,713 00

g,3Dsei

1.000 w
t,4T3 0D

a, BOO 00

3,450 00

T;i4iOB

SpnMiil.,

tl« 'oTMuliic iKlii'dl^

Mb li dmiluloi. aadu fl« fcU

11,45100
1,100 00

B,1BS»4

iD.saoo

5,493 98

J^rfp^li

:s:iSJ-£'.'rii.-

* Inchldlu ipHln d(
f flafts ud ramlLBn.

n,g:,.ndtyG00glc

COKDinON OF TIIE BANKS.
etiOMv a» amJmm ^ On dmb to jfaim ConUnned.

a»f.p>n.

wick.

™— -■

HI rioa TMi aaau.

^,00000

%S 337 00

'SIBM
174 OD

10,11m SI

9100,00000

las

NoJilnc.

B.S07W
Nona.

4100,00000

•sr-

•00,000 00

if, "' au "'"S";'

Bt^^iatXoaaUt'b^i,

Oub d>[»ll>d.l>ClBdbW »ll •OBU

duo 10 otku bum ucspicd.,..
O»li«cpa.ii«lbojrto|ioior.n....

' 30 41

a8,MT31

101,107 IB

ies,enii

1(0,030 ai

B3,3n33

131,3(3 n

^^ijfTiX.'SlJ ~^

KoDb

01,10(1 IB

■sss

981*0
140,30(48

•,370 07

U,1M3(

T07SOO

tt»,l« 31
3,34100

tV,xm
m,mso

4,(00 00

BHta of oUw bonta wltkoat OU

.^ilii!

134,434 87

BiliBCH dn fnm otbtc bub.. . .

44,(10 4*
70,373 (*

101,107 U

1M,877 11

100,010(1

B3,3n3]

131,333 (t

DiTiDUDi, uiiiTiB runn,

Oca, IBM.

inoo

1,07100

7,a»oo
i,eMoo

7,s8aoo

13,500 00

3,S7«0O

*Tm?o3

Ort.1, ISS8.

uose

3,fW00
U,D0OOO
),«■»

is,ei> a

OeL 4, lasd.

0,iNS«0

73 14

19,0*0 00

wm
13,810 se

1,890 00
ll.MMN

Ju. 1, IHO.

8,700 0«
1,000 00
19,(00 ••

441 17

U»ofd«lui^£taMdlTl.

AnHnsVof 'd*Mi due tad oM jaildV

«,S00«*

Anonu d» ftoo. dinewn u
prtD«l|..l....j^.

•uotM, u IndliUDMi, or u

1,304 08
3,300 D«

«,(7«0>

"SB-.

pacdc depnall In Bl

n,g:,.ndtyG00glc

coMDinoN or the ban;

Minda Dmbuid

kliics tfB« tDothflr buki. .... — ..,..

(Ui 4<T>adtc4, iiKdiidl^ Ml nnu wbtuonB
Mt fKn ttae buk IM beukc iaurM, iu Mill
bcbmlutOD, pnflu lud baluieei da* losUitr

98, era 00

Notlilnf.

•IIM,M«M

1,734 00

lOSOO

14, MM

1,317 n
917 00

1%XJU

liK nm>wt or lut dlTU«M, ud wtMB d«-

iBontof lo'md prefln (I a* time of deduini
MMdlTldnd

Xmaatartt^miiat mutual pald-ud cOBiUaed
■•dosMhl «.

■Hi Id EkTaliUaa mnder flu* *>llu*.

o«.e,iBw,

i«Bt die Ann tlockboMm u prl

13,«U77

a,snoo

SB,13«11

9,000 oi

>M. II.IBML
1,787 »
Nose.

n,g:,.-ndtyG00glc

CONDITION OP THE BAHKS.
A. 1.— JMMtf ohMuv (if emMm of i&e bmJit ni Jfinat— Contlaaed.

•100,100 00
4,3M so

Cub depoftiled bearinf intan
Total uBcmnt due fran lbs 1

Gold, (Dm, ui4 otb*r cotawl neuli in thcii
baaklnf-bDiuaH........ ......... ......,..•,

Bula>l«

BlUiBrcNfaahukiinciinMimudlDiblaBnM. ..

iBHut or all dtbu due, Includini nam, Ulli o
uclunit*, (ad all •wcki and nindad daliu o
tmj deactlpUoB, eic<[Hlii| tha btlaacen doi

a, was

Bl of lut diTldand, and w

I ofn-KiTad proflD u llil tlnw DTdMlariiu
M dltldend

lofdebudueudnotpaldiand'

nauni due Stom dlrrclon
9f Dlllcen of I eorpanUon.

July i, IBiU
1,873 4

0, Its 38
n,IMIDO

n,g:,.ndtyG00glc

CONDinOH OF THE BAKKS.

M ^ til bada w JfoMf— ConU&ned.

XECAPtTOLATIOM.

Xy Hoek paid In. ■IT,«>,M5 M

tadRobuiMt i,ns,a>M

■B|n«a«liud «>,««•

MnCH^MOIkarkuka W,an 13

0^ JtpmiEj. fcc., nat be«rtin hUMMt >,m,9in M

OHi ikpoilMd bcwisi iBMnM M,Mia

ToMiawanttaaftanilwbuki H,tm,Ul a

MLianr,tt.,ia tuta Me3,TM SI

tmlmMifL 14S,MSia

MbKkulHiBtliliButa 171, «« M

k&iirh..k..h»h.r. •^»4 71

1,47S,8MX

ii,sis,iiT n

Haribabuk*. 1«,JW.MT W

iMOtaTim-wniialdlTMMid. mst,Tlta

iHulgfnBTMlpnMIU. 3T«,M> BT

IM«*ti>dc«iiidcn<doaMllil iaB,SO« 10

AMMorkBklnORUlUloaBidallnloltara. SM,06S M

JtHMtdMrmnUwdincUiaMpriiidpab m,TT1 U

iBimdM ffom Ik* diraetan u ■nntin, ka n9,0S9 M

ImiikiI iIm fliiiM iiiiilhnlilur ii iiiliiilnilr W.tn n

fiiM irf MtoraJ ftm mfld T»,»Wt»

H. Ex. Doc. U2 2

n,g:,.-ndtyG00glc

CONDITION OP THE BANKS.
A S.-OontititMd.

B-ta.

■""-•

DmefbHinn^

n^oM^

fflRS!

ill

Aptnii.im

JSKS"

JSfr.v.v.:";::-..:::::::::::::::

Alltad

WlBtbnv

"April 13,'itST

^,h^£EE}E:.

BMil«ftinl

aS:::::::::::::.:::;:-.::::::::::
sLi^i™™;;::::.:-.-.-.-.:;:::;

SS!.ii;i::::::::::::::::::::::::.:-

Saminn

.frK:.""-:::::::.:::::::::;:::;:

::::::S::::;:

e25S'.-.'.:::v.:;;x::/..;.::v.::;'

Si;;;;;;;;;;;;;-;-;;:;;;-

SSTT!::::::;;::;::::;;;: ::::::

1.7, is Si

ArdI 1, B3B

ill

all

m
m

Mir-H <M

Mir. 7. SS3

1«1S

'.'.'.'.'. Aa'.'.'.'.W

^^■•■■■■■•■-•-

ESK;;'.-.::;::::::::::::: ::::::::

BHII

April ii,ian

■T'

SSJSii;::::::;.::;";:::;:.:;::

Sfc;;:;-;;;;;:::-;;;;;'

;:::::£:::;::

E^--;;:::;::::::::::;::::-

AprtUI,l»T

^iiiE;;;;;;;;:;;;;:

SSSK;.:::::;:::::.::;:::::::::

lUebBaid

..fri'-i!'.!?^

MiS

?KSSr:::::::::::::;::::::::::

S^i-::::::::::-::::::::::;

Ss&'r;;;;;;;:;;::;-;;'^

■Ai;uii;iw

■( MMtMlor Ik* kfMUVn

Buk| udtDH«ir<lbcHDiw4aflrib«ckuM[«rtb«IUilMn>i

n,g>ndtyC00glc

CCniDITION OF THE BANKS. 19

lb tte Ocmnor and GtmneS:

The baok commiaeioQ«ra hAve the honor to present herewith their
Kcond annasl report :

The present namber of hanks in Baccessfnl operation in this State
is rizty-«even. They hare a worhing capital, in the aggregate, of
wven million three handred and eight thousand nine hundred and
forty-five dollars. Having in specie six hnndred and thirty-nine
(hoosand foor hundred and ninety-four dollars in their vaults, they
are entitled, by law, to a circulation of fire millions seven hnndrea
and sixty-two thousand nine hnndred and fifty-nine dollars. Their
•ctnal cirtmlation, however, at the time of onr examinations, was only
three million eight hundred and seven thousand and ninety-two
dollars. This is nearly forty-seven per cent, less than the maximum
drcnlation which the amount of specie in their vaults allows them; and
nine hnndred and forty-three thonsand seven hundred and twenty-six
dollars lees than they would be entitled to with only the legal
requiremeot of one-twentieth of their capital on hand in specie.

This simple statement affords a strong, if notaoonclnsive, argnment
that the legitimate and healthy business of the State does not require
•D increase of banking capital, or the facilities which a greater number
of banks may he supposed to afford in the transaction of such a business.

The last legislature extended the time for paying in the capital
sto^ of the Lowell Bank, at Lewiston, till the first da^ of October
last. A charter was also granted for a new bank at Wtecasset, and
the surrender of the charter of the Mariners' Bank iu that place
accepted. But neither the Lowell Bank, at Lewiston, nor the new
bank at Wiseosset, has yet gone into operation.

The same legislature renewed and extended the charter of the Veasie
Bank, in Bangor, and anthorieed the City Bank of Biddeford to increase
its capital stock twenty-five thousand dollars, which has been paid in.
The City Bank at Bath was empowered to reduce its capital one
hnndred thousand dollars; the Eastern Bank at Bangor, the (Gardiner
Bank, and the Union Bank at Brunswick, were authorieed to make a
reduction of fiffy thousand each; the Main and Fejepscott Banks in
BniDswick, and the Richmond Bank of twenty-five thousand each.
The Long Beach Bank has not availed itself of the liberty granted to
tedace its capital stock to seventy-five thousand dollars.

With the exceptioQ of thoee banks which were in the hands of
reoeirert at the time of making our last annual report, we have visited
every bank in the State once, and most of them more frequently,
daring the present year. Fr«m theBe investigations, we may state with
ooafidenee that so far as the currency of the State depends npon its
hanking instttntions, the currency of Maine mar safety challenge a
comparison with that of any other State in the Union.

The ooDdition of each hank, at the time of our examination, it ii
belitrved, is tmly exhibited in the abstracts herewith preaeoted. TIm

20 CONDITION OF THE BANKS.

nmi-annnal and monthly retnrna reqoired hj lav, and ptiUisIied,
teemed to as to reoder it nnneoeasary to swell onr report bj repeatiag
the Btatifitical iDformation which is eoaily aooesaible b; means of those
returns. We can bat believe that the banks are generallj, with
fidelity to the pcblic and the stockholders, carrying out the objects for
which they were created. In the most essential partionlars, they
conform to the law for their regnlation. The fact that in most of them
the stock is at or above its par valne, attest to the intelligence and
probity with which the larger number have been conducted. If their
managers will inflexibly resist all temptation to strain their business,
with the hope of gratifying their stockholders with large dividends,
we see no reason why stock in our well located and well conducted
banks should not continue to be a desirable investment. The aa/ety of
the investment phould ever be a subject of paramount importance.
Many of small means — widows and orphans — have their all in bank
stock, and it is a matter of the utmost moment that the investment
should not be exposed to any risks.

The few unsound and corruptly managed banks which have hereto-
fore impaired, to some extent, the confidence of the people in banking
institutions, have been placed beyond the power of further defrauding
the public. They now serve as beacons to the other banks, warning
them against the slightest departure from integrity in the transaction
of their business. It may he truly affirmed that under onr banking
law no hank can honeatly fail to meet all its liabilities to the pablic;
or can incur the loss of any considerable proportion of its capital stock.

Confidence in our banking institutions lies at the foundation of
public prosperity. Even the fear that they may be unsound excites
general commotion and deranges business in all its channels. The
failure of a bank may send life-long poverty and suffering to hundreds
of families. Consequently, fraud in the management of a bank, being
attended with consequences so exceedingly disastrous, is, like forgery,
a crime of the deepest dye, and should be visited with the most stern
and unrelenting severity of law. The highwayman robs but an
individual ; the fraudulent banker may impoverish thousands.

It is nnquestiooably a grave error on the part of stockholders that
they are so inattentive to their important interests. The number
present at annual meetings seldom exceeds the number of directors.
In very few instances have committees of stockholders been chosen to
make examination of the afiairs of their bank. Stockholders should
look closely after thote who have the management of banks, and
remember the legal maxim, that "the law is only for the protection
of those who take due care of their property" — ttiose who watch, not
those who sleep.

That there snonld be some limit prescribed by law as to the amount
of bills which a bank may keep on hand signed and ready for circola-
tion, and also as to the amount of unsign^ bills they may be allowed
to order from the engraver and deposit in their vaults, seems to the
commissioners indispensable to the safety of the banks, as well as to
that degree of protection the public nave a right to claim from
enlightened legislation. From an examination of the monthly returns
for November last, while it appears that the amount of Hlla in

CONDITION OF THE BANKS. 21

circulstioD was tliree millioo sevea hundred and sixty-nine thoasand
in handred and BeTenty-Beren dollars, the amount (,t' billg signed
snd held readr i'oi oircalation was niDe million six hundred and eigh^
thonsaod five nnndred and sixty-two dollars. The amonnt of unsiened
bills on hand was three millionfive hundred and sixty-one thoutiana five
hundred and sixty-two dollars. The large amount of signed bills kept
by many banks in open packages on the shelves of their vaults cannot
be jnatified by the calls of convenience. More bills than the business
of a bank requires for its greatest circulation involves temptation to
over issue, and incaseof robbery exposes the currency to fatal derange-
ment. The Bank of the State of Maine, for instance, with a circnlatioa
of thirty-six thousand four hundred and forty-three dollars, returns
three hundred aad sixty-two thousand seven hundred and fifty doUars
in btUs already signed and ready for circulation. Kearly that amount
was in its vaults at the time of our visit. Other banks show a similar
excess of signed and unsigned bills. Bank officers are now permitted,
without limit or restriction, to keep on hand any amount of bills
nnsigned and signed they may think proper. Serious abuses have
already resulted from this power, and the interposition of the legis-
lature is respectfully yet earnestly invoked to devise some remedy for
this evil.

We have nniformly recommended to the officers of banks not to
delay the destruction not only of their defaced and mutilated bills, bat
of all bills which the bank did not require for circulation. It is,
however, doubtful whether we have the legal right to require this to
be done.

Jilantic Bank, Portland. — This bank, on the application of the
oommissioners to his honor Judge Davis, at a bearing before him on
the 18th of November lost, was enjoined from the transactioa of
any business, except receiving payment for debts due and redeeming
its drculation. The proceedings were continued until the further
order of the court. No loss to the public is apprehended ; it is under-
stood its bills are redeemed at its counter. U nless the charter of this
bank is surrendered or repealed it is probable the court will, at a
subaeqaent bearing, make the injunction perpetual. At present it
■eems annecessary to give a statement of its condition in detail.

BaiJe of Haliowell. — In tbeir last annual report the oommissioaen
ny, in conclusion of their notice of this bank, ' ' Unless its affairs are
promptly wound up by its officers, application will he made to have
the injonctioQ made perpetnal, and receivers appointed." We are
•ony to saj bat little progress has been made by its officers or stock-
bolders in winding up its aflwirs since that time, and the oommis-
•ioners exonse themselves for not applying for a perpetnal injunction
and the appointment of receivers for the reason there was nothing
which could be made avaUdble to receive. That all persons who are
n unfortunate as to be holders of bills on this bank may estimate their
valae we subjoin a list of its assets, and the names and amounts of its
stockholders, furnished by the cashier, A. 6. Washburn, under date
of July 30, 1868:

n,g:,.-ndtyC00glc

coNomas of the kanks.

Assets,

Orlando Carrier, note in bqU |400 00

S. Stoddard, note in enit 226 63

0. H. Parker, Bt. Paul 3,000 00

D. A. J. Baker, St. Paul 5,000 00

Farrar & Cutler 1,000 00

H. Page, Chicago 9,559 99

Same, in auit 6,832 16

F. H. Page, Detroit, in suit 1,672 U

Beed & Page 6,100 00

Rufus K.Page 4,000 00

J. Golder, Phipsburg, in ex'n 925 00

A. Coe 400 00

Nash & Park 294 60

Bhonld he realized from notes in hand of Gkorge Woodman,

New York, after paying his advances, about 4,000 00

42,310 31

^odthdien.

E. H. Hnbbard, Hallowell $2,000 00

D. Benjamin, Livermore 500 00

BuftisK. Page 20,000 00

A. Leonurd 6,000 00

E. B. Washburn, Illinois 20,000 00

C. 0. WaBhburn, Wisconsin 19,600 00

C. N. Stevenson, Illinois 10,000 00

A. Merrill 100 00

D. Morrison, Minnesota 600 00

A. S. Washburne 5,200 00

J. O. Page, Kansas 5,000 00

H. Reed, Minnesota 5,000 00

Or. Woodman, New York 2,000 00

J. Sanson, New York 4,000 00

J. A. Thompson, New York 1,000 00

A. Or. Stinchfield 100 00

E. Horn 100 00

100,000 00

Amount of bills in existence, |42,701 ; paid, about $2,600.

OVER DUZ PAPER

It is proper to remark, in relation to the large amount of over due
or Baapended paper held by the banks, that much of it is secured by
collaterals, which cannot be readily changed for other security, or
converted into immediately available fands for the discharge of the
debt due, consequently, by an express or tacit nodersianding, it lies

ityCoogIc

COHDITHMI OF THE BANES. 23

orer. Other portiotu bad bat just matared at the time of our ezam-
iMtion. The practice of permittiDg paper, atiez its maturity, to fie
orer indefinitelj, is not a good one, and it ought not to prerail to the
extent it does in many banka. It ahoald also be borne id mind that,
especially iu the country, the panotual dischat^e of a pecuniary
obligation ie regarded more as a matter of mere convenience with the
debtor than as a duty to be performed to bis creditor. The dishonor
of hia note is not supposed to reflect any diahonor on himself, or to
impair bis credit. The correction of this delinquency is with the
directors of each bank.

The estimated loss given on over due paper is, in a m^ority of
instances, too low. There was, in some cases, an apparent nnwillinff-
neu on the part of bank officers to aaaume any responsibility as to the
correctQCBS of the estimate made, and the commissioners were nnable to
satisfy themselves of its oorrectness, for the want of personal knowledge
of the affairs of the debtors. We ventare the opinion, that a large per
cent, of the over due paper held by our banks ia not improving in
valaeby age, and the aoouer it is " charged off" will the standing of
any bank be better understood by its atockholders.

THK SUFFOLK BAHS BYSTEH.

Suffolk Bank amd BarJe (^ Mvival Bedemptum. — ^The public mind
has recently been somewhat disturbed lest the system of redeeming
the bills of the New England banks in Boston, as has been heretofore
for a long time so faithfully and ably conducted by the Suffolk Bank,
ahoald be pot in danger by what had the appearance of antagonism
between that bank and the Bank of Mntual Redemption.

There ia no difference of opinion among the officers of the banks of
this State, or among practical bosineaa men, that the tyatem abould be
nuintainctd in its integrity, whatever asent or agents in Boston may
be employed for doing the business. The redemption of their bills in
Bottoa by all the New England banks has become indispensable to
seourine an extensive par circulation for their currency, and in facili-
tating the transaction of busineaa. A brief hiatory of the commence-
ment and progreaa of what ia familiarly termed the Suffolk Bank
■yatem may be here not inappropriately given. In the year 1824 that
Dank was indooed by large deposits, free from interest, to undertake
the redemption, at par, of the bills of all the sound New England
banks, and thereby relieve the huaioeaa community from the necessity
of a per oeotage on the ezcbange of "country money," as it was
termed, and likewise to secure to the banks in Boston, and to the com-
manity, an equal, specie-paying cnrrency. For aeveral yeaia the
bvrdea of this expense, which waa the loaa of iutereat upon at least
three hundred thotuaod dollars, was borne by four or five Boston
baoka, after which not only the other banks in that city but the
ooantry banka became satisfied of the beneficial operation of the
system, and contributed to its support by making deposits with the
Suffolk Bank, in aums varying from two thousand to five thousand
dollars each, according to the character and amount of the busineag
of the bank making the special depoait. These deposits afforded that

n,g>-ndtyC00glc

24 coimrnoH of the auncs.

iMnk the neceesary fands to carry on tlie bosineSB, and wbat was
deemed only a fair compeneatioD for the labor and risk attending it.

Thongh the syBtem, it has been said, met with strong opposition at
the outMt, no one, at the present day, can donbt that it has been of
incslcnlahle benefit to the cnrreocy and business of New England.
Complaints have sometimes been made as to the manner in which it
has been conducted, but it will be admitted by every intelligent and
fair minded man that, on ike tohole, the boaiDesg has been carried on
with great skill and success ; and that the canses of dissatisfaction,
however irritating they may have been at the moment, have been very
few and trifling, when compared with the great and manifold advan-
tages which have been derived from the system. That the bosiness
was largely profitable to the stockholders of the Suffolk Bank, even to
an extent without a parallel to be found in any other bank in New
Euglaod, is, we think, not controverted; and it is, from this fact, bnt
natural that there should be a strong desire to traiisfer the profits of
the system from the private stockholders of the Suffolk Bank to the
stockholders of the banks which have sustained the system by their
deposits.

To effect this object the Bank of Mutual Redemption has been in-
corporated by the commonwealth of Massachusetts, to be located in
the city of Boston, for the purpose of redeeming the bills of New
England banks at their par value, the stock to be subscribed and held
only by the banks in the New England States, and authorizing the
several banks of that Stato, by a vote of their directors, to subscribe
to the capital stock, and allowing subscriptions to the same to be made
by any bank established by law in the States of Maine, New Hamp-
shire, Vermont, Connecticut, and Rhode Island, to an amount not
exceeding five per cent, of the capital of said bank actually paid in,
nor exceeding the sum of twenty thousand dollars ; the directors to
consist of not less than nine nor more than thirteen persons ; and any
stockholder in any bank which is owner of stock in the Bank of Mu-
tual Bedemption is made eligible as a director therein, provided that
at least three-fourths of the directors shall be inhabitants of Massa-
chusetts, and all of them inhabitants of the New England States ;
the capital stock not to exceed three millions of dollars, to be divided
into shares of one hundred dollars each, to be paid in such install-
ments and at such times as the stockholders may direct ; and when-
ever five hundred thousand dollars shall have been subscribed to the
capital stock, according to the terms of the charter, and the whole
paid in gold and silver coin, the bank may proceed to do business.
No bills of a less denomination than five dollars are allowed to be
issued, and its circulation in no case to exceed one-half of the amount
of its capital stock, nor for more than three consecutive days three
times the amount of specie held by it. It is prohibited from receiving
the bills of any bank at a discount from their par value, and oo indi-
vidual shall at any time he debtor to the bank to an amount exceeding
sixty thousand dollars. The stock is transferable only to banks, and
to be made only at its banking bouse and in its books. It must always
show in its weekly return at least tea per cent, of its oaoital stock
paid in, in current gold or silver coin ; and it is mad« the duty of the

i,C.ooglc

coira>inoK OF the banks. 25

bank commisaioQerB, ia case of a riolatioD of this last provision, to
ipply to the nearest jndge of the Supreme Coart for an injunction
on it.

In the earlf part of Angnst the Bank of Mntaal Redemption com-
menced doing hasiaess, with a paid in capital of some more than fire
hnndred thonsaod dollars. Its h^-laws seemed to have been framed
and adopted hv its stockholders with the design of carrying oat the
object for which it was chartered with fidelity. It proposes to do the
busineM of redeeming the bills of New England banks on the mntnal
principle, as far as possible — absolntely so, so far as its stockholders
■re concerned — and to act as agent for all the hanks in New England,
for the transaction of their business in the city of Boston, and, so far
u each bank may desire it, as its agent elsewhere.

It appears from the circnlar of the president of the Suffolk Bank,
dated October 9, 1858, that bank has giren np its agency in the
system, as heretofore condncted, and its responsibility in it has ceased,
asugniug as reasons " becaiue its main feature, the right to send bills
htme for specie, cannot be given np without destroying its efficauy ;
6eo(nMe their exercise of this right is effectually made nse of by those
hostile to the Suffolk Bank system to place the bank in a false attitade
before the public ; and because, under the existing ciroumstanoes, the
bank does not wish to stand in the way of a trial of the attempted
experiment of a foreign money system, to be conducted on less stria-
gent principles." It is now understood that the Snffolk Bank will not
hereafter feel bonnd to enforce the redemption of country money at
par in Boston, except so far as its own immediate interest may dictate ;
»t the samd time, it retains most of its bank accounts, and, by way of
facilitating its negotiations with those banks, it receives the country
moasy which they remit to it, and assorts and counts it as usual.
Hence there are now two assorting houses in Boston, at each of which
all the bills of banks in New England which redeem in Boston are
received. So far no serious embarrassment to the public has resulted
from this state of things.

The public have no further interest in the matter than that the
system of redemption in Boston be maintained, and that the work
be done vtfdy and weU, whatever agent our banks may see fit to
employ.

The commissioners helieve that, under our present laws, the banks
of this State have no legal right, in their corporate capacity, to be-
come subscribers to the capital stock of the Bank of Mutual Redemp-
tion, or that of any other corporation, and they cannot foresee that any
ill consequences would be likely to result from the passage of an act
allowing any bank in this State, by a vote of its stockholders, to sub-
scribe to the capital stock of the Bank of Mutual Redemption. In
iiuwer to our inquiries the president of the Bank of Mutual Redemp-
tion, under date of January S, has kindly furnished us with informa-
tion that the present number ot banks' stockholders is one hundred
and thirty-five, who have paid in five hundred and fifty-three thousand
dollars ; thirty-eight banks, making a permanent deposit of one hun-
dred and forty-three thousand dollars. Thirteen banks in this State
have become stockholders, and five depositors. In this ooQuexioo they

n,g:,.-,.dtyC00glc

26 cOHDrnoN of the bases.

would BDggeat the ptopriety of repealing the fblloiring claiue in tht
twenty-first section of the forty-seveoth chapter of the Revised 8ta<
tates, namely : "But any special deposit of specie kept by it in the
SafEblk Bank, Boston, not exceeding three thousand dollars, a certifi-
cate of which is taken and kept by it, shall be deemed in its vaults
for the purposes of this section." A deposit of gpaae in. the Suffolk,
or in any other Boston bank, is only a credit for the amount so de-
posited, and, although the statute refers to a epeoial deposit of specie
in terms, it cannot be reasonably s^ipposed the Suffolk Bank reoeiTea
the deposit to be kepi and retwued apecifically. The very object of
making the deposit is that the use of it b^ the Suffolk Bank is to be an
equivalent for the services it performs for the bank making it. Such
a deposit, by any of our banks, is not, therefore, in any sense, specie
in its vaults. We think our law is sufficiently liberal in the matter
of circulation, without the provision referred to

The several savings institutions seem to be fulfiUiag their mission
of benevolence faithfolly, and no loss to any depositor naa ooonrred, to
our knowledge.

BOBEET GOODENOW.
W. S. OOCHEAN.

AuoDSlA, Deoember 31, 1858.

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COHDinOK 03? THE BANKS.

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CONDITION OV THE BANKS.

JO .|in <qi ja mnoov

sssssssssssssstss

-«l>l|l»jfl|aaq»qK.

■.,«,jr.:';™»v

i»i|li.jo«|||i,,Diiin<niiT

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CONDITION OF THE BAHKB.

Ill

Diana [

liiSsiissiiiississsSisisiiisissa

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ill : IS 1

iis ii i§ii ;

: rf;rf:ofrf..-;

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Si:

iiig

:i :« is i
i-f ijf :-- 1

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I Hill i

iiilS

1 i

mfm

ii»ip

i i| i i i
IN'Mi

iilij

iil

■atraoNiTpnanoq

fntia

l!!li;ililSliilSlliliil§II!!l§li|

5=22 — = "ZS-2SS- = a = S> = S--«5i|-2SI:

HliiiiiiWigiih!

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COKDinON OP THE BAKKS.

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COSDinOlI OF THE BIHKS.

'RAradfran report of A. B. Gardner^ Esq., Bank GomnUaiona; jSep-
itmlMT 18, 1858.

" In dischHr^ng the datiea required of me by section 1 of ao act ia
addition to chapter 84 of the compiled statutes relatine to banks, ap-
prored November 10, 1867, I visited all the banks in this State in the
nionth of February last, and have examined and approved near three
hnndred new bonds. The directors of all the banks have now given ,
the bonds required by sections 67 and 87 of chapter 84 compiled stat-
utes, and tbere are at least two snrettes on each bond, whose property
ii believed to be egnal to the penalty of the bond,

" Within the year the conntry has passed throngh a financial revola-
tion almost anpreoedented in its history, and Vermont was among the
first to snfier from its influence. The circulation of the banks in this
State on the first of September, 1857, was hut a little short of five
tDtUions of dollars, and so severe was the presanre of the panis upon
them, that by the first of November their circulation was reduced full
one-half. Yet, notwithstanding snch an unprecedented contraction of
the drcnlatioD, all tfae banks in the State, with the exception of the
St. Albans Bank, the Mississquoi Bank, the Woodstock Bank, and
the Bank of Boynltoa, continued their redemption in Boston and New
Tork without interruption, thns saving the public from any loss from
■ depreciated currency. And although it was generally nnderstood
bf the banks and the public that the banks in this State suspended
specie payments on the 16th of October, 1857, in common with the
other hanka of the conntry, yet, with the single exception of the Bank
of Boyalton, they, during the whole time, continued to pay specie for
their bills to their customers, for all business purposes, and with this
exception there have been but very few instances in which any of the
buKB have refused to pay specie when it has been demanded for their
hills upon any pretence whatever. The fact that the banks of Vermont
hare been able to sostain themselves at such a time without ruining
their customers affords the best evidence of their soundness and good
maoagemeDt."

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CONDITION OF THE BAKKS.

Oiidllte y (k &Bnfa «• JKoHehitfEi « tiU fatf JUmf^ y OtM*-, ISfiS.

,«,«,.

Ada..!..

AU..

B..^

BOTWM.

•""—•'■'

•M0,0(»<»
111,080 DO

sum OD

».W7 0S

BB,OU0S
14,099 00

"i""^ St

IM,Sltt

«TW,moe

4n, 344(1

•M,ONOO
•KI,MS<0

■3;Sa>00

■ass

'■■SlSS

«M,ON0t

1«,UIN

Anounl of bil'la in elrcnbtioo a?'
flndi^oniDdiipwUTh

S-m*

Bklueadnetonlier'luk*

wbUKMTeidue l>oni lb* ImdIi
BOt bMiInt IgHtHL lu bill! la

dM 10 Olbat b*Bk( eieepled....

3:»:>

™u™..,...»«.«.u....

1,07<.BH n

HT,BgT<U

],SeT,B(IT «3

!I,7S1,M4«

i,m,B3 «t

^'ip In Uuni-hooH

i3,4sa«i

"■"■"

MI.IMTI

U,31I»

131,197 n

'SiSS

U7,MIB
1,M,W M

10,430 ■*

BOtoaTbuta In Ala and oTUte

Mkw Na> Enfluid Ruua

BHancM du rnxn oiliar b>Bki . . .

»U>, bm> of uchan;*, .wl ail

31,473 00

Sa,4!l>87

■14,438 «T

i,su,Tnis

. n;«i ■■

ttM.4MOI

Tool aamat oTranvcM or buk

I,0T1,»I »

t«,mm

l,»I.«IO

s,79i,gHg>

i,ou,ai N

BiU ud XMHUI of dMdmda
■!■» tka laat aaoaal [ctom,

Ai«1l, IBSg.

ii,asi BT

■.KOOO

Aplll, IBM,
0c.'..18W,

's;s,-!i

■1,117 U
400 00

■,wso

31,M3 3a

33,000 00
T,I«TO

April, leso,

'!!;»

Oct. IBS*,

*S?i^i3

B,«>OSI

t,«itoo

n,aam

lt,7W0*

'wasyrr.K

Aboom or doUa daa 10 Iha bank,

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COHDinON OF THE BANKS.

■onov.

CUj.

CotubUii.

BukorCom-

EmI*.

EUot.

CipBJltDCk

«nteU>nudD«nnli

Dnni of lall> ta ^■UUIon •« (

10, T« DO

liisM IB

4Sl,aiS 51

♦TM.000 00

yr.iiooo

|9.DD0,M» M

978,300 00

18,480 00
173^539 07
811,71(8 8»

873,387 W

•700,000 N
143,188 00

■7,880 08

4000,000 00

84,800 00

35, Ml 00
^5»«

988,619 SB

TMi wMii dM mm mt but. .

i,iM,mei

i,m,aKn

4,417,598 80

1,.48,«73

1,183,078 80

T"r'"iz'

■ssss

i,eo,iii M

913,018 M

3,356. *18 W

174,371 80

i9e,sa3oo

l,4B4,3Cfll

07,718 80
11,800 98

1,3(4,307 87

54,380 08
983,983 15

1,794,874 85

i,BH,Baa 78

<,117,3a6 BO

1,848,987 73

1,183,075 00

'S.-i.-K?'JiJ!'S2:

Aprtl, IHH,

April. IBM,
cS.1658,

M,aTSM

138,000 00
78,875 41
•e4,M»D0

April, IBM,
OM., 1868,

80,880 38

700 00

10,088 30

April, IMS,

"KffSi

Oct , IS58,

41,181L
9,™ 00

9.740 91

iMilof d.ta dne W tl» tenk,
•Kvtd hr ■ ptcdf* on <u nock
IXKUU of «ebu du u>4 Dot i>ld.

1B,3MSU

b |a,9ie li coniUcnd food.

H. Ex. Doc. 11:

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CONDITION Of THE BAHK9.

Fuwan Han, Fiwato'i.

Iltfadrenlulcwnra

11,000, onow
•KM, in 90

vliMKXnr U( IWMn Uw buil
not bHriBf Ibutoi, In bUU li
circBlulon, fnta nti Maoea
due toetiiar bukaHcvpCad'*

A la Udi and of UU

aweki aal riadM dakD of I

lb* tel-

Aiuddbi of naamd pccBU
ItmE of dceLarinf ua laac

iaaa<MtpaU,

W),nS07

1B1,BMB0
tin,KB IB

«90D,aoooa

m,flsa 00

D,MOM

eas,BM 10

1,B1T,VI3 »

Oci., lass,

So, 00006

laeiiKd BT a plvdfC «i tB an
aouitordabudiiauiiMtpi
uid conMenl doabiftal ..

Apnl,

«),oaooj

«,0UG3

9,000 00

$90,000 00

■1,000, lot 00

iMgiio oa

sel7»oi

00, 197 II

10,000 OJ
Oct., 1098,

ilfOouoo
SB,oaooo

3,000 00
3,171 87

■100,00« DO
190,000 00

Oct., IBU,

«,o«)aii

Bt,8noo

M,9aSN

Oct, IBM,

n.oteOB

9«,9MM

3i,«(a It

■ Pan of a tn dc

ilBclnilinK natrrtd pnMha.
Uf ttala nun «ao,O0<f la a nkaeripdoB Is Ika opltal atoek of Ita Buk oT HntBal Ri
B*lii( 1 ttmiad In eoBtniienT witk Baak of BiitblOB.

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COSDmOR OP THE BANK1.

D 1.— Chiiaiw ij At tuBfa in JfawAuMtft— Conttoaed.

tn Mlui uid apwudi .

Inpnfiu«i>ud'
mincM d— IP etfc

■Mnn^liM I

mlMtrtai tnURM, Ha Mill la

'■i«M or lUdebu du, lacludlnf '
Klca, HDi or alchufe, ud ill

itiltittiw, (iccpaiif tta* te^
ue« ta( ftOB Mhn- buto.

■nM ki ■ fM|t on In nock
*>«■ afdchb dna ud not paid,

11^,000 DO
lltS,SS3in

SI, 131 00
130,348 7>
3,610 73

April, IBS8,

W.OOO OU
Ocl., IKM,

«,DDOOJ
113,000 1X1

(300,000 «

ISO, no «

April, isae,

3 per cmt^
Oct., 1»F,

3,900 00

(MOjOOOOO
10i,3SODO

0,390 00
W,10S 13

17S,«NB0

T4,-:33K
B,»4i0

April, I8U,

y,Woti

14, §07 90
3,000 00

tj aBlnMn oTiiMai of the

1/0,7, udOdolMia.

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COHDITtON OF THE BANKS.
D l.—OmiHiim </ Ot bnk* in JfiiaacAvNfT*— ContlDued.

...„,.

Mintlflk.

Btnkorunut

»«to«l.

NewBiflud.

toi ptio

"■-""-■-■

•«N,gOBDD
58,791)00

38,3M00

■f,S!S

304,100 71

»«,ODO,MDta

dlT.WSOO

»siB,5oaoo
S7,ssaoo

(750,000 00
135,395 00

94,041 00
817 11

■93,171 41

tSooooo

•1,000,000 00
1«,060«

14,119 00
44^ IMS 98
W;4WW

887,158 91

Ui;8a3e8

Anount of bilii In elnaliidoa of'

9,747,403 U

iltietaoil>»)»oki»ceple<l....

■•■W8:«iiw

8,714 84

T«.i^».d..ft«»a**«.k..

TSMTOoe

e,4a»,7i4 78

1,S8,M0 38

1,311,010 80

1,801,831 85

Gold.tllnr.nd olh.r eotaed ™t-
«!• In In banklnf-liouH

SS,<MTill

1,000, U4 00

511,810 70
187,638 13

8,831, Ma 03

183,831 n

87,408 ai

MT,48148

39,800 00

17,444 11

1,388,308 08

mill of binkt In Ibli uid dT tb*
(Hb«r N*<r Knflud aula

K^To?S.Xr:£SSii;-

ucM dM ftnn aSwUnki. . . .

ai,BBTi»
•10,000 DO

Ba3,»3SI

878,480 88

1,138,188 99

Toul UHHim orraHiK!« of buk

■MMIBM

8,«B.7H 78

ll,5n,S17 40

1,311,010 80

1,881,871(5

•s.."i.^s"'„iKr;

April, lau,

Oct'., I»8,

10,510 00

tTOOOO

April. 18S8,

iiso,«as9

18, OSS H

Now blDk.

Aprii.IBJB,
({^.,1858,

«,S08 07
18,877 50

A|«a,ias«,

Oel.,l8M,

-!?»!»

31,159 18
4,500 00
S,(M44

AmonBl of mrntri praBn U (he
tlmo of dcelajiiij lln lul dlrt-

Auoiinl of debM due to the bink,
•KDRd by ■ pixlle on lu Mock
Aotoontof dtbu doe <iiid not paid,

'BdiM 819,830 84, whici
li |I19«e,boiB8 the e

li prinel[ii>a; •eennd bf eollininl nf

ot mured and nwki.

_._ _ .ilaulMDoiulaftkenooaRConf ibt

eipcDua Ibr Ajrnltare, lie, over tbo euiilD8i of tbo bulk op to tbi

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CONDITION OP THE BANKB.

I> 1.— OndUMi y lit banJa in MmtoAtmttt ContlniiBd.

I or Mia la eInmlulOD erf

cadH tBatbnT banki...

1130,000 00
100,010 00

ixseroo

30,700 se
64,}nso

t7u,oooot tna,ooDoo
i34,auoo

Cab dipo^ud bMiing Uun«. . .
Tool tmaaax daa ttom tbc bnk

aali,iin«T, *ad oUwi enhwd
■Itti li»ri«Blliii hwmi I

IMIMU*

ntaaC tank! ia lUi and oT lb*

34,900 00

M of Ul dtMi do*, iDclndlu
>, bills of fiKcbuifB, and aU

npMaa, neepdnc Ibc^S

AaoBU of dsbti do* u On back,
■Hand by ■ ptadaa « in lUiek .
Avaal of dabM dM aad DM paid,

AiM, 18
OcL.lBBS,

!n[m'oi

33,701 n

a,Bai 40
aOjiuHi

Apffl, isss,
Oei.iaie,

«,7aaTS

9,990 00
B,IMiO

|1,QOO,000 00

iiii,>7Goa

U1,11S 41

84,014 00

ApHl.lBsa,
Ocl., IDMI,

SloootJ

t,M0OO
11,000 00

«i,aoo,ooa oo

140,345 00

•33,873 75
SB4,734 78
80,43107

398, 031 10

40,000 00 ,

1U,3W M
M9,483N

April, 1808,

41 pn ceni.

40,000 M

oci., iwe,

^uo'oj

Oct, I8SS,
BS8,7a<K

11, no 00

3,834 94

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CONDITION OF TIIE BANKS.
D 1 . - -Cboitliim y <Aa tonb in JCuMciuMir*— CoDtioueiL

|l,0O«,000 00

N«t profltion baod^ .-.

RtlulEUdBi looUwrlnnk*....
Cull i]ep(HlU(l,tBcludlDf mllnnn

not InarlDf iDterett, lu UUali
circulftiloa, proflti uht b*lftae«

Cub dtpodud btulBf luianst-

BUli of but! in Uili ud of Uw
MtaorNa* EnflaadSuiM

BUucaa due ftoo MliN kuln. . ..

Anoonl of Ml dtbu dut, ladBdlH
mts, bUIi vt «iobBB|«, uid Ul
Mock* (adAndtddabuoTiniT
dueriptloa. uceptlni llM bat
lacMdn* ooBMbaibaBk

■Odimorbuk.
I or dlTldnd*

Aaonnt of rcHrred nraflu ii ifaa
tliua of dKlulBf UK lul din-

AnWDi or dcbu dna to ili« bask,

■Hurad by apladia nlUHook.

Aboodi or dabu daa awl not paid,

13,789 W

ai?,sin w

1,SB<),6WM

April, IBM, April, IBSS,

SMreOBi, 3HrcaDI,

SLuW M 16,0*0 04

Oat., IBSS, Oei., ISU,

Eoj'ooo di i^oao oi)

30, set 00

04.10155

W,M7S

April, issa,

u,<wo°oJ

H,oooai

April, lass,

40,OOo''D>i
Oci., 1858,
KHrCCDI.,

^uoaou

U,H7 DO

April, lEse,

at par MM.

H,9M0U

3,(03 61

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COHOmOM OF THE BANKS.

rf UW imb M JliMncteiAi— CoatinuFd.

«™,.

«™ .o™..

..™.^

«,ov,.

Weteuc.

H*Aulei>.

A.do«r.

"•"""■■•"

(1,900,000 M

>7a,moo
so.wsoo

107,007 u
13T,m BO

«isa,Doaoo

44,7KI00
«,TUM

•w,ooaoo

S],»9W
JS,IS3 0O

#190,1100 00

41,919 00

rrw,oao«o

S7,M9M

Jl**" J-^

1^9M00

110, WW

9B,aH48

■.IBTftI

OiM <cT«Ued bMrlDg isunH . . . .

T«Mmimm«m ftMttabUlk..

S,t<7,MSM

»7,»*T

SI«,S9aM

*7,T74«

481,a07IS

«oM..awr, mJ otlMr MiMd

)B1,7»n

8,977 n

•,M8 00

aS,7W77

n;usoo

B,7«00

iT,ass5a

417, T7S 81

7,«»7»

11,980 17
A,OOtOO

819 90
l<,9ilS»

8,000 00

884, SUM

BUli or huki In Ihli ud or ID*

.SS?=.T£S5?Ei;:::

A»«al oTtaluew la olka buU

944,00 to

10,447 M
9tt7,naM

«,3»,W»

TOKlaaauicirRMucaoriMBk.

3,147,988 M

SIT,9»>I

MI,09)M

W7,W4«»

481,3<n(H

-zs^^^-sa.

TS,04BTB
1,000 00

Jprtl, IBM,

4,eS3U
B,BD0tO
11,000 00

April, ISH,

April. 1898,
0.t,lB9B,

ii,sia 98

AprU, IBM,

n,9i9 19

hmam at r-emd proBtt .t llie

Aw»i of dtbt. due lo lb. took,

* Tbli ralM 10 buki ou of BoMoa.

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CONDITION OF THE BANKS.
D l.—CbHMm y tU tsnb ni JfitModttiMM*— Contjnoed.

..™lt.

,«™,..

«™,«„„.

>uiEI«t.

B^HT.

VBUV.

D«««.

W^.

■"■"•"■■"

«ioo,oi»oa

47,iaD Off

M,oMoa

14,n3M

tias,ODD0a

44,BTO00
^093 10

tm,ooooo

01,441100

98«a9

(■.SMSl

tlIW,OODDa
U,W9 0D

15,797 00

^30,000 ot
80,389 00

flT> doUin ud npwudi

•iB,nso

Oub dtpoilted.iaclndlni nil ennu
not beirlnj Inlemt, Ite bUli In

«,4S313

S;SS

T.«™™,.«»»«.U«..

ies,Mi 14

•M,47)ia>

»T,ai> M

».»..

43e,«71»

d>)alt>UoUi>t-lw>«i

4,7<i«l

a,3sn«

19,313 03
1(1,008 09

>,»tK

ass

■SSSS

W.S1BH
Bil,BI7 07

5SS

»,WIT4

B9,7S9al
984,441 M

■0,171 7S
3,18190

sjooeos

An^or b^aiKM In mbM bulk
iMd of biU>, wTwH b«uln( U-

t
M3,M17B

■iDCbi md fbndcd di bu otmaj

t38B,S34Sl

'] oul ■aout of roBoicw of bMk

im,Mu

SH, 478(0

sw.iia u

nt,aBoai

4S^miS

'^h'^'?!'"'"'""' '•""■

NoMmtd*.

1,(94 79
(.BDOOO

^(17 «1

AliH],ia9«,
October, 1898,

4,SW1T
BOO 00
BOD 00

ill

April, 1898,
0cWtH,r,1898,

■8,013 «

April, 1898,
Octobv.LBU,

'*i:7S!^

M,OHM

Amount of ntnti praDU M Iba

Amauni of deku dug lo tha bwk,

3,700 00

•$41 SO la AwUOHl bllla.

tlnclodad In fnetiiof um
iBoludlni tijOOa Mowkl lb

n,g:,.ndtyG00glc

COHDITION OF THE BAlfKS.
D I.— Onditini q/' Ae ionb bt jroMoeAMMtft-CoDtlnued.

-*««l,^

AB».^

—-

fl.™hU>.

tm run Tu Bura.

llB,m)«)
N,4Kn

t3ra,noiio

B5,i7(IOO

M,i»<n
so as 87

*41B 41
100, 1»M

•100,000 00
4S,BU0a

1B,74SOO
33,t!»lB

««vi,ooaoo
M,iofioa

I7,S38 0«
^1S3 1S

44,ieen

•110,000 Of

41,440 00
93,030 00

38,450 40

InMluiuulaptruda

Cub 4tpiHll^<jl^l«dll«>JI OUM

tralanudu from the buk..

n>,748eo

M0,6Uie

«01,307n

351,450 18

334,U8ei

(Md,iaRr,miid MbereolBMl iiM-

1,100 M

90,311 gs

14,«3I9B

M,3a«

■!;3SS

18,731 IS
4S0,«U7>

8,500 00

1S,3W«

98,919 18
301, ISO 91

■ih or mk. In tbta UHl of llH
«WrN«ren0.><l8»<«.

iMotiTtatuxH Id oUwr biiik
•uctilBdlhidM dekttortKuT

3(00
11,008 «

n,5Si «

304,47>>S

maw 78
]«,an4i

«,T«)M

MII,SeilB

901,307 tl

»1,4M le

334,858 89

"Ssfi." "^^:

April, IBJ6,
Qclobtr.iaU,

a,>ii 71

u,ooow

iu«b,iii)e,
Io,soooJ

ia,7l7 41

B,iaioo

S,M91

April. 1858,
Ociaht.iest,

«,a«ooo

Aprtl, 1858,
Oelol«r,l858,

«,000 00

Aprtl. lass,

Oeubei, 1858,
3I,8W00

■MRd kr ■ p)r4f> « iu itoek.

uy Google

CONDmOM OF THE BANKS.
D l.—Omi£iim rf tin banJu tn i

not bcuiac inunM, tu MlUln
** — '~"~-|, proBu and baluHU

Total inKuiK due Itoa Ibe btnk.

noua, bllJg or iicliufc, ind ill
itockiud/biulMd«lHi ofrTHrj
dMiiptlaiij. flicFptlDg tba bd-

Une of declulnf tbe lul dlvi-

Hcand by ■pLediennluiUKI
AMumitHtrtHttiimuti not paid.

13,THM

[7,300 «j
ST,I)3E tt

fflOOjDOOM
4I,T>0M

3,900 od

OeL, IBSB,

>) pec asDl,

3, MM 00

(lot, 000 00
IS, US 00

M,D3t 00

t,«iia

April, IBM,

"ifwo'oi

Oct., IBU,
4,«M0i

3,MBM
4,300 0)

•100,000 09
41,110 0*

v,a9i 00
n,s»tt
0,07(1 a

ll,HBM

«,BB3llt

Oct., IBM,
J pH «■(.,

B,Moao
i7,»8ga

S,WI00

moo

n,g:,.ndtyG00glc

CONDITION OF THE BANKS.
D 1,— Ox^iltn i^Aa ba»h ja JfitwK-IWwW*— Coatlnned.

LT«.

.™™

^M«b«.

fliud.

M««^-d.

Bplcknwu.

Kachuie*'.

MI no> TB« am.

|SSO,DBDaO

t100,«M 00
*3,7«00

IB, moo
Bowses

31 M

•1»,I)0CI00

«i,nooo

M,»m04

tlOO,000 00
10,330 M

IT, in 00

0,31181

•900,000 00

01,330 00

tB,T0l 00

j^^^^j-s^A^-^,-

»,mv

»,08«4S

"■

TraJ ■Hmi dM ihiB tl» huk. .

U4,i«n

iii7,»tai

aie, 438(3

I7«,081ST

3oe,(((fli

•sl^Si^'-

ia,Miao

«,3IS00
«,TMM
4«,SRS7

!;SS

l,19*0t

3,4«4 0O

4,300 »9

18,043 08
9,133 00

'~"S.'S£«12i;:-.;

1,SIM

lasleuti

3,000(0
130,079 1(

ta tf Him uJJ M( I1WI4 !>■

isT.eisot

«,nS84
l7e,H4 34

H,<n43

338,388 11

«— ..r™,™.«»:*

IM,m73

IIIT,7M3B

SM,43e«3

m,msi

383,818 0*

'Vi.'Tsnzj'^

April, IBM,
Oel..lM8.

April, IBM,

oci.iBse,

8,960 43

n«oo

«3

Oct., lau,

3, woe
4,10000

April, IBM,
OCL., IBM,

8,3(131

AMu'^dtte dill ■iiu^h;;k,'

oS,n«,
i,«ogo

jSuJiMrk

n,g:,.ndtyG00glc

CONDITION OF THE BANE8.

I.-™™,.

■OCIPOST.

..t«.

««»«t...

«...

KoakpoR.

Adatte.

Coouiatcial.

"■™"— "■

«UO,000 00

M,OM«l

S;03>81
•,441 »

tue,ooax

iT,aniM

"■as

■JhSS

|isa,<niOD

•19,401 no
T,imn

43,54 41

•3U,OO0«l

i»,moo

lB,NSn

i»s,itTm

««n,ooaoD

S1,U0«B

Amount of Mill la (Sreululaii'irfm

gSI!!

U8,niin

Dot b<ulii( iBUrui, &i Ulta in

Tnil uaomt d» ftoi itae twiK. .

3M,»SII

«1,M»3

m,m 11

600,457 68

44B,sau

UMOICII or rmi luti.

OoU ,iUnr,uk«Dibiri!aiaad nM-

i,mi>D

tiss

■J.IWS

ia,7tXI7

«;»4oi

8.811 n

■s;as

5,90DX)

■ilu.« N!^Eij«d BSt?.?!.

3,«0II»

as,B7in

*l,l«71

■1,170 88
g»,04BU

W,S8B»

m,«si8

Tow «Doanl or mmuBM or bank

3at,tma

4M,ntS3

S»,1IS 13

SC0,«T8t

4«B,S3B1I

Ban ud laxNUi oT dMiUnib

■,moo

Oct., IBM,
MOM

AprtI, ISW,

Oci.lBKS

ii,aean

April, ISM,
4 pat cant.,

1a,eoood
ocL, lasB,

*,eao«)

1,3WM

April, 18S8,

on., 18S8,

«,OSI 18

Amaau or rwmd pnfll* it Dm
tUae or dscllitai iba tail dlTl-

?S§SS-

n,g:,.ndtyG00glc

COKDITIOM OF THE BANKS.

..««.

B»bU|..

MuoDdl*.

M«UDk««

um.

MK nOM T>l lun.

'IpriilKoek

•»0,MKIIXI
U,MS3B

«9ao,oaa«)

33,710 00

3;«»n

07,«Bn

•900,000 00

«,SJTW

•900,000 00

108,490 00

•990,000 0*

31, MO 00

iS^Ti^-i-iii:-:;;;

10,307 00
7«3 3«
1,601 10

33,031 S?

Tm] UWM «u ftm thi buk. .

»«,«ww

a>,S9BT«

<ao,9Rao

n7,738S0

334,111 a

Ml, Hm.uJ MlHr MbHd IM-

3,1am

1,711 OS
S,«S41

0,10*00

lT,t8>3t>

ii,ouDe

4, Mi 00

3,93113

3,377*7

a.nson

Bab If huki tB tliia and of tiM

W,MIBB
3n,Sfi>71

« kuki M be apiiUail lo n-

3oi,oeoe

31t,M37

sssnciasff^.':^.

l)U,419BS

l«-»<»..f«o««»fb«k.

Ke,m>s(>

3B,D39 7a

4I0,SS30

en,™ 90

394,01101

'sriJH™^"??.

Apdl,18Be,
OeI.,lBB8,

B,OnM

Ocl., 1B68,

7,o«Bao

300 00

April, lesa,
(kt, lose,

si,s3ioe

0,330 00
1,000 00

■i» or ««iuf<« &« Un dM-

5,478 14

^BS7 7•

^^'r-rrj'rrr'^

■»».(» Od

769 83

uy Google

COXDITION OP THE BANKS.
D 1.— CtmitiltiM y IA< tonb m JbuAAuNttt— Ooatfained.

™.««.

c.««^

PowowRlnr

BrffuM.

BlUfalOB

HCkn.

"■csr

Amonnt of bllta In clrcDlatkn oTi

tUKSmOD

TB,SKIH

ii;«oi»
ii>,i«ioe

«au,miw
laswBQO

Bi;o»ai
«,m«i

«lBO,O0aM
SOU,S10 00

■0,030 00
71,ttDtS

•100,000 00

SSTKDO
1^5M«

•100,00000

•37,000 00
•13,010 «

■at Inrim iBUiat, in bUf la

lT,soooo

3e,a>7«

J*.™™, ...««.•.»...

m,4i»to

«I,«» 01

Hl>,n3>0

aiB,io«o»

aoo,oMM

'".ur,i.s!.s:»sr'.

...as

It, twos
iee,Tun

Jl,441 »

ss,sn«
«o,inM

13,010 so
0)000 00

9,07100

•,078 70

|IOt.l« U

13,00100

KM* of buki la thU (Dd of tb«
otklt N>» EnflMd Bliua

JSS

or bnki ID ba ippUsd to the n-

1I,S»W
493,183 ao

DMM, bUli of •«»»■•, (MTiX

im,aB*t

B7,1M«0

•7,«1> 01

300,703 <M

118,700 00

BO,OOIOI

But ud uDoiuit of dlrtd^nU

April, lOK,
IB, in ST

^U,1BS8,

AFrfl,]aM,

oci!^ im,

10,000 H

10,03100

OOOOO

April, IBS,

11,7«<T
•,»73

thM of dMtailBC iba lui dM-
d»d .TT....

*SSSll'bT*?3Sli;i1SS5i

AoKn.>or7.birdS\»l M^'

3,130 W

tsasssr"

n,g:,.ndtyG00glc

co^^Dmo:T of tue banks.

D l.—OKiJllbm<ifU»b(mkifnMamadttiiMi--CoaiiimtA.

oaiuiiMio.

■tessr

ObuteRHnr.

Ud«»«.

Biak«r HiU.

an noM tsb mtn.

•130,000 00

70,708 00

g,9U00

f 100,000 to
•37,88100

•18,036 00
13,418 M

«ioo,aoiioo

88,770 00

(300,000 00

1»,0»00

48,033 00
43,387 84

|1SO,000 00
7i,7M00

■"1fllKXSS.i«i

M bari^ iBMnn, In UUt Id

M,»7I»

«S,<1«I7

131,343 S3

408,408 34

68,538 87

~,— .d-^U.^..

sai,s3s<s

3X1,80311

337,043 48

ftn,»T38

333,033 10

SiS:.?.'?^?:!!:

90,1WS7

4t,470U8

138,081 38
34,000 00

18,317 00

!»»;ooooo

78.788 BJ
<78,1>9 1S

10,064 n

.2r."=;Sl?3-"S:i;::::

AiBUL of Mueca !■ othai buk
« iMfc* lo ba amUcd to n-

■IS 13

1,«W00
IBB, 041 38

SSI!

104,BH>S

(,308 05
301,801 IS

w,wu..r.>chu;.,>»d<iil

■N,17DM

.-— «.,r«««e.-*^.

sas,BB«e

83S.B«ill

a37,»43 48

OJ0,BST38

333,013 10

m (M •MODI or iMtrada

April. JIJW.
4,»0 0J

•.MTU

U,9goot

1,800 «

April, IBM,
Oct, ISM,

"T^-io-

13,803 13
0,101 M
8,000 00

April, IBW,
Oct', 18U.

8,000 00

0,300 00

ipHI, 1898,
Oct, 1898,

41,713 48
7,400 00

o.tr ax,

3,700 00
10,140 00

tio,sa8 u

£;"'*~'«rtH 4.1-1 dlW-

iH«M of jctaM dM 10 lb* kuk,

uy Google

CONDITION OF THE BANKS.
D l.—Onittini tg &* trab in JbmichMitti— ConUnoed.

=..co„.

tUSlIOHlll

HOLLKTOa.

^rK-Toa.

^a.-

C,^,

Holl^oiu

Bopklau».

ApplHOn.

CRplUI Itock

ABOu«pfMl.Uel«roUU™of

Aoiounl or MU* In cUcuIiUdd oTi

•100,000 00
71,15S 00

7,«B00
10,410 18

ge,Tioi3

1*00,000 00

n,ei9 00

30,S01 B8
44,MJ01

«ioo,aoo DO

40,0^00

10,018 oo
3;475 11

10,087 M

tiao,[ai 00
B5,«iaoo

•«o,ooooa

113,870 00

Bot bemitBf iDUmt, lu bllH In
daa io oUiH buki eiMjiud

91,585 >T

78,113 70

Tottl UDOWI did ftom Itaa buk,

SW,7M41

3B4,«B4T

1T1,*71 87

J1S,«H»

447,aRU

■uoDicu or mi aiiiK.

s, ore 00

14,IM0 1B
1,E«3BS

3«,»1 53

5,813 71

4,tmis

iSlSS

KI,OOODO
387,848 90

BUM oT bank) in Ate ind or tin
otharMawEaflandeuUH

4.3U14

3,000 00

4,3(7 40
153,838 M

10,«4iOO

19, mn

S".??.«,?:?5.

>3,7M«

170, HOB 58

«i,7iieoi

BO, 734 11

3l>1,«e47

lTI,m 57

3iB,mn

4f7,aa>u

"ssSi.'-..™"!""

April, leee,

0.7,10.,

s,mi H

1,010 00
3,000 00

April, IBS8,

88,000 00
»,BS0 0t
3,000 00

April, 1SS8,

5,000 00

8,890 00

eson

April, IBSB,

Ji!;;5S''i*

4 100 00
CN!1., 1858,

ia,i70 8i
1,700 00

April, IKS,
88,089 00

«,iioaa

3,078 38

Abodd i of dibii 'dna Wthe 'bank,'
•TcaRNl 1» a pled|B on Iti itoek.

uy Google

COKSITION OF THE BASES.
D l.—ComdUiim ^ Ot Uak» m JbNaaharit— CoDtioned.

I-«U.

MsntunB'.

Prawon.

lUlllMd.

WimtBi.

liriMlD>udi|nnrd*

18,030 og

«ioa,oi»oo

AOMOO

!«»,«» 00

eo,7«o»

S;SS

(600,000 00

BOT,9a3 00

SO. BOS 00

la7,»«t!4l

1,9S3 37

4«,S1BM

t]S«,DO0 N
97,330 01

iHUMk^WlB (inptcd....

«,S»TO

M,M8 3e

BB,mM

B4,»8M

Tml iHnt iH from IkelaDk..

xa,t3tm

iB^auii

3M,S417B

l.<ll,8St 17

3B3.U0W

5,DWM

3,34TS0
ISIOOOM

10,100 ar

B0,1(8»J

4,Bn M

ia,7«3w

0,330 IB

_ Kbs Hn B^land BOIO. . . . . .

•7,ini>7t

U,1ST«

sia,g<itea

14,HII1

3n,n8a

S, 118 00
1BD,«3 IB

W^ WU.'Sd BDt tauiDI

11,057 «
l<n,3H8}

80,000 00

SSTiS.'KCL,'?.

7tc,iHre

~«-™«™-™,«i»...

-,«.

IS^lfiSU

9M,841 78

1,011, SSI II

331,1UW

■r-u.-Ef^j'iss;

April, IBM,

91, new
i,«ooa

t3s,mao

AtM, 1B58,

IpercmL,

3,000 06

3,«»00
t3,S«0D
>,MIOO

April, IBM,
Oct, ISH,

■l,SeS83

«0 00

E, lot 00

April, 1838,
Ocl'.IBM,

M,MO>

4,580 00

Aprih, 1M8.

7,980 08
«,S«0 00
8,300 00

Ahu Bf icnnd prafln M Ibt

;SSSS2'

1 Hum af wkkb U ta (ipMtad will b* paid.

bdaJbf«7

H. Ex. Doo. 112-

n,g:,.ndtyG00glc

COKIITION OF THE BAHKB.
D l.—amditim ^ Ot batJa m JTauaMuitfa— CtnUnmd.

tioo,iiMm

79,079 00

■mi liUcaM, tu kiUa in
Hiaa, Mil* uJ k*)UKM
ollMtwaks Hcrpted....

rer, ud oAr cotaad

dnpttoa sT Ui>, ud dm bMf -

UkmoiI er til ii*Mi dB«| iicJadini
Mtaa, bUla at aickuic*, and ai!
•Wdu Wkd Itadtd d*Mi oraniT
p«taf.U" <»t

atorraHareoariuk.

Bii«D( ornitrTad pnflii ui

^H <X dHlUtBI IlM IHI dl

nt flTdflHi du M tba h , ,

idbrKptadieBnIUiloek. S,S»0

. of JcMl Ana and Bot paU,

■M eOHidnad doabUU . .

o«., ItW,
9,00(1 og

B,30S«
BI4 00

i*,imo«

90,98171
193,79

113,19* 9a 907,973 91

ApiU, It>38,

«,OW«t

f iKladiai cbMki oa ukv koki ud npt^t aoaa

llBeMlMt9,'ow'llBtaalKM«aplloBBuki«Kk.
I Sball tarn ataoM IliO**. ^^

n,g:,.ndtyG00glc

CONDniOK OP THE BANKS.
D 1.— OMditiM if a* bmla m JCwwdw^ Contlpuad.

""-

wdutmB

■ "-"""■

Wok™.

MUlcIl KiTar.

FltehbUf.

BollllOK.

iMMlMwdapirardi

Ahw gf Mb in cinalUloa of >

«1U,0Q0«)
Ba,3MW

SI, IN go

tlOOiDDSM
•S3,9W(»

•11. BU SO

MS, MS 00

38,818 00
8?,0MM

•SN,O00W

m,«4so*

J^j^w 'ta^' .'.■.■.■.'-■

W.SMOt

jilonai

SSS^Htr,

31,9TTaS

»,MSM

«,TO«

«,S17»

r-l Ik laiUUiia....

T-.-«.J„^U-b-k,.

BH,mH

He,TMn

i«,uei»

aoT.sooot

430,118 30

Ml, dm, .ad oU>«r nkMd

SM,BniS

I.IOSN

M,itaw

B3T,0MB9

3,flW«

■SSiS

TMOO

7«,oiaw

7,Mi««
38S,«9ltT

't'SS

flkxHtw £n(U>d auu>

BuiM.dKrwadMrtaBk>....
Awu tf talmsH IB DttHi buk

1W,US33

HOB*
■■.OMM

ll,«tN

MM, Mlb of HCbUfr, ud 4i

3»,T80 70

aB8,7MM

i48,«!ieoa

WT,«iaos

430,118 30

'Z^^^JLS-S^

i»,ies77
•.oil

April, iwa,

e,WBKI
1,000 «

■11

SJ,<M»00

April, 1898,

AMumriwnd pnfliiUib*
■■tofdwlKlBttwlMdlrt-

-nr.dkftplX'Miui.lMk.
*WM or d>Mi dor ud not paid.

1,318 BB

Oel.,18!«,

M,uiei

i,8ies8

[ 4 ptr eni. «■ 1100,000, lad « rar EI

n,g:,.ndtyG00glc

CONDITION OP THE BANKS.
D 1.— CbaditiM ig (h bankt vi JCumebuUff— Continued.

«.™.

L.«..«.

-.tro...

-^.k.

Onrtoa.

Lk^Mt.,.

LalMiwt.

Mlllbrd.

MUlbUT-

•100,000 00
B6,100 00

■sss

«WO,000 00

71,780 00

110,389 00
1A,3BS00

wjoeiin

33,083 43

•tlN,DOO>0
103,850 00

30,M)oa

39,310 00

•100,000 00
3»,B3>00

18,335 00

llTedDlIiniBdapnnli

Cull depotiltd, laeludlni ■Umn*
ii>hUKi«Ter due (Vom the bank

18,B«0 11

94,101 U

83,038 79

13,848 37

Toul laomu dM fiom tlHi buk.

1M,10Q H

334,3M)04

977,814 48

488,353 79

131,008 SI

Oold, iDni.uid oiber cofned n«-

a,anao

1,0B1 00
88,713 33

3,000 00
363,787 57

8,807 33

11,834 09

9, MO 08

BUli or buk. Id ibU ud or Uk
otti«Ne<rEnfludSl>tM

31 00

1,34100

39,898 81
409,807 93

873 00

AnHHiii orbaUiHH In othu buk
or buk) M bt ippliHl to !«■
dwpiloB of bUto, UdM bMi-

is,«4esT

143,313 01

34,0*0 M
333,94 «1

93,419 80
18B,8S141

AdubdI of >ll (kM toi, tod^
BMa, bUta or oicbuifr, i^Till
■loeki ud nuidtd dabu of cTery

108,100 St

33t,3»01

377,81148

488,383 79

181,003 HI

BiUd >nl tmoiiDl or dlTldondi
(Ilea U» lui uoBkl nuni,

3,81100

i,8»aoo
3, moo

April, lass,

Oewber.less,
'»,''«»''«)

30,30187
780 00
1,000 01)

April, 1858,

6,000 did

Ocubci, 1898,
13,800 00

Qclober, 1U8,
37,801 70

April, 1818,

3,000 00

5Sl!;.'!!rf.r^""-

AnuMU oTdabu dm to lb< taink,
•aenrad br > pM(a on in lUMfc

19,000 00

1,400 00

S75 00

n,g:,.ndtyG00glc

C ONDITION OF THE BANKS.
D l.—Omdkim if At iaif* » JbMwhMtft-Contliiaed.

o.™„.

„.««..

Noitthoni'.

(hrfbrd.

BoaOMdi..

BUckrtnM.

Ceolnl.

"^•rVi-ii^i^i^^i-ir

|1M,*MM
ST,IM 00

!S;SSS

tioo,ooooo

43,370 00

IS, moo
i«,aaoET

1130,000 00
03,933 00

13,048 00

tioo,ooooo

4S,I05 00
33,107 09

«3H>,000 00
13,100 00

4,333 44
109,013 at

3i.m«

10,00183

«i,ioaBB

010,313 IS

1«J,T84 00

9(3,371 47

911,400 91

344,041 n

Sou, ■Onr, »< Mbo oljiHl KM-

l.OWOO
B,WM

e,Moao

107,741 71

11,77013
lH,aNiB

ewoo

10.«4 34

. 3),maa

3£»'=Si^^';.:^.

9,00 00

9,118 00

9,14139

49B,WW

sS?.»^w^r^

14,743 40
930,103 73

43,MI3B
113,30134

910,310 10

183,784 »

003,37147

911,40010

044,Min

KM* ■»■ umu nr dltidoidi

Apd],ia!i«.

Ipcri^nil.,
4,000 00

o«.,i«e,

10,000 00

Aprt, IBM,
OeL.lBSe,

11,167 33
3,300 00
•4,BBe00

AprtI, ISH,
Oct., tow,

M,<»47
14,184 19

AprU,liH,
Oct.,18S8,

W, 750 73
810 00
HOW

10,MO«

AXMBI or «<M> dH U ■>» l»k,

A»ar^£^ud»t pUd,

13,01*l«

uy Google

CONDITION OP THE BAHKS.

CWsau-.

atr.

WonMai.

•"»"'"•"-

#100,000 00
41, on oa

8S,49«U

t«io,ooaoo

tt,3»00

as,«!«oo

"■SS

HI,«1S 83

•W),oaaoo
08, wo 00

ST.MSOO

s;mt«3

•190,000 00

70,900 00

on. 044 00
19,300 at

«no,ooooo

88,900 00

i;o«oo

1*4,930 «t

An *>»u( and npwirda

AnoaBl of btIK Id cinuluMs nfi

not bwiliic lnumi, lu bilk Iq
dUMoU»tWk>«<:rp{«l...

n,»Too

ToMluxmni du Ihrn tba bnk.

303,000 <3

eM,OMU

(SB, 147 04

««l,D70Sa

•H,490 14

OoU, itlnF, nd oUliir miiMd DM-

H,1M 01

i«;ooooo

331 00

m,Ti»u

iT.ntoe

«,01S31

g;SS

1,0BI 00

BUli or bcnki Id lhl> ud of Uh

I4,«I7 1»
«0«,OlOM

10,000 00

UB,>OSOt

1,900 00

u;o«s3

3SS,MBII

UoB dI bUla, uid nut bearlni In-
DOIB, Wm or eichuie, mod ■B

m,ooiii
m,ooa«

W,S8I>3

sii,ni n

SDMI UDcnuKornMiarcM Brbut.

30,000 0

■94,000 05

«S«,I4T»4

4«i,a»ia

•M,4H14

MMU Ud UMMUll or ditldttldl

April. 1BS8,
OclobcMBM,

a\,mm

April. IBS*.

Oclohar.lSSB,

»0,»SH7
*I,«0»00

April, 1858,
0«ob.r,lSSg,

*r4,(K"j3

«,78iT4
S,BO0n>
l«a,4SSM

April, 1858,
Oclob«,l8S8,

17,000 00
9,000 00

0, 037 SB

April, IWi
onoba, 1SS8,

9>,a9«DB

tl,SOOOO

tina or dnlutiif ibn lut dlil-

ABHMnt<><rd**bU dua touie Hat,

«J^^

n,g:,.ndtyG00glc

CONDITION OF THE BANKS.

WAU.

OOXWII.

...«™».

aoljrott.

NMbampui.

Oawar.

Fnnklla

Ml run ru aura.

«M.aoooa

ai.TlO OQ
4>,taSST

«H»,IXXI00
113,910 00

txn,Doaaa

178,3MIO0

3B;<IH3SI

tlM,OOC 00
M,1M0«

Aanat of bill* 1* dnglidan on

17,«IM

sSS^s&iii;;;;;;-

not iHWIiii liiunM,il> Vm 1*

48.mi»

m,mvi

13,»lf7

TMBI HMdBl dM &« Iha buk . .

»t,(ITT«

41*,ttB(8

Mi,eei w

W,7W»

MO,I«T»l

RmMoacu or m %aw.

1I,»7M

S;UODO

*moD

U,141 W
1T,MI41

SMOO

LNIMI

1«,77»«T
•n,Ht*T

JSrjiiSKi;!:!;:::;

•MB 00

u,M»oa

IM,I«1S

,i:s:

AmmuI or Much !■ gour bwk
Uh or Hill, JITdM borlDf l£l

Ms,a»«

Anal oTaii ilabu dw^ineiDdiu

axi,tnn

»— „«»-™.,-..

»,»7T»

4n,au(8

MI,8eiM)

1M.7MM

MO,WM

wttbdua

Mm oTdMlul*! £?lHt dlTt

Jm...l8M,
S par PMit.,

0.000 00
April, ISM,

Octobar.lDH.

Ra^,l«U.

Aplil,lB9I,
QOabar.lSSS,

*F?iSli''Ea

1,«0 00
7,000 QO

April, leoa,

Octobar.lSU,

^MM17

14,>M>H

April, ina,

OalSSS
«,I1»M

AMoat'irf'' Mn ViH to ib^ tuk,
■Konrf br m ptadfe on IN KocK.
AxwMortou 4tK IDd MX paw.

t]3,iinn

tl0,Ml M

S,«M«

n,g:,.ndtyG00glc

COMDITIOir OF THE BANES.

y At k«b in JKiMadkHirffi— ConUaaed.

«^»».

.„»^

CHICOPU.

HSLTOn.

aomoB.

entnwra*

num.

Cibal.

H>dl<rF*ll>.

noon.

"»?-"""-

«M,CK«Oa

»,3MO0

si,aBooo
iliwso

«i<n,OMi»

S»,B30 00

«i5«,ooaoo

(£,71100

10,758 00
T;i7S 74

M,«)B34

«900,001M
S7,7aOM

Bi,!Ot«0

i3,m47

|130,C00 0t
44,810 00

im^Jmi l^%enluiii"ot

15,a»4 3i

SK.%£,»fflSSIjj™

T,aMM

11,358 »

ToUl uuDBt diia Odd the task.

i»,msi

IM, 84013

»71,9S «

350,103 87

■31,30 n

UIOCMCH OT TBI IIMI.

Qold, direr, and olbN c«<B»d B«-

s,i«oo

tl«,«TS4l

ltS6S,8>Tl»

5,770 11

8,7a««

3,4t»SS
138,1194 18

11,107 31

8,884 M

,o!ss

11,113 «4
»B,M7TB

518 0*

18,51) 44

Bllli or buki Ib itaian< ormc
otMt New En(lud Baua

teas 00
1S,7U s

ABoum of mil d«bti due, HwlDd-

m,m IS

*u.™..,«»«.^.rb„.

sa^Msi

iw,s«Daa

B7i,na 01

390,153 87

S3S,M«e

■E"i-"c"„'jj"ss;

AprtI, 1B3B,
i,l<l»00

Aprtl, 1858,

Oct, 18SH,

1,813,41

April, IB58,

1I3,1W,«
7SSD0

1,500 00

April, 1858,

11,784 03
1,800 00
1,514 86

April, iHsa,

Oc<.,ias8,

14,7*81
*,MSOO

is,en4>

Une of dKlul^ iba Ib« dlrl-

Anouqt ar d*Mi dM to iha tmnk,
awnnd br ■ ptodfa on Iti Nock.

.Bd»«ld.i.d*rab«U„.7!r.

laclndlBf tin, N. I., ko-

tlac

n,g:,.ndtyG00glc

COtmtTIOH OF THE BAJIEB
D l.—Cmtdilion <^ tii* iodb m JbMocAuNttt— Continued.

*"-

Chte0|>M.

Jotan Han-

Ppieho^

tV^M^M.

-"'"-"""-

«300,(00 00

Be,13B0(l

St,997 00
!&,B4I 83

ia,Hsw
iia,«e 31

•300,000 00

137,700 00

3s.aMDo

S,S!J

77,748 51

•130,000 00

a>,«osoo

•190,000 00
lO7,08S00

98,785 00

s;»wis

38,118 73

•300,000 00

90,313 00

*T.s:5ir°s.'^r«;£:;"S«o4

99,14G0O

99,879 88

OaDi dci>o>ited,tiicIiidln( ill niniB
nol bcartni iDtrml, iu Mill bl

0,108 80

73,738 38

t|r~i I

ToMl unml di» rhxD Iha baDk. .

MS, Ml 73

004,900 73

910,997 81

344,083 U

i00,»17T

W, 038 OS

71084 01

1,138 00

»,44«ai

433,807 88

AH 5

383 00
91,838 44
187,870 IS

11.098 01
IS, DUO 00

171 CW
B,0M7e

38,«198

979,394 48

oc kaaki 10 b* applM to ta-
d«opttM or bUb, >Dd Bot baar-

U^laUTaM.

AmMM ofaU dabu dae,li»liid-
IM Ddea, bUl< of (ichinn, uri
■aTnMUaadftiideddcbxor

80,708 39
410,411 87

SS«,S78 0S

Tow aiiMiialofnHiiraaarbaiik

OKi, 84173

804,900 79

919,9« 81

344,033 SI

800,951 TT

lut agd ansaat of dMdnidi

^000 00

X,8S1 10

B,MO0O
14,400 00

April, ISM,
Oc... 18»,

38,8*0 48
S90 00
1,000 00

hb.>M,3p.ct-

",soooi

8,881 «7
9,10(100
4,408 33

»0».'S7,3p.cI.
00L,18M,

13,784 87

150 00

3,000 00

U«eord«lamifth. law dirt

31,498 30

900 00

8,000 00

AaooBt If d*bl> da> to fhe ta^k,
•HOiad br a pled|> oa <u ■oek

n,g:,.-ndtyG00glc

COSDITION OP TEE BANES.

wamiLD.

taAKt.

«..x

"■

Buipdao.

W^IWd.

Ad»-.

»4b.l«.

l^.

Amoant of bini'ta'^iiol.Uoi'of
Amonql orbllLi in clrc^ulilian oft

«1U,0<» 00

iDi,3»oa

'300 W

3«,8«en

*iM,ooaoo
(u,oaooo

«Jl3T(j0

^10 00

|3W,OD0 00

98,100 00

io,i>si 00

^3:5ii2

4100,000 00

109,310 00

M,N3 0D

«;93>i8

7;4D3»
91,81199

taoo,«oo«o.

«a,9M00

BiLincu due lo other bank!

91,7« M
S,»»Oi

T«.l«.™.du.ft™u..b.ub.

m,mn

iw,ei» n

ai«,9Mm

390,986 01

410,M4;

Oold.iUTer, ind oUim emned net
■lilnllitiuliini-Iinue

1,600 M

S,«7SM

»;oi>iM

3,10100

7,39BB3
7,478 00

1,(1WOO
7,834 33

18,079 04

«»,eoiai

10, mat

9;7S1M

19,-30 00
10,334 0<

gT,4MSl
S3^1SM1B

6,690 «

Billiofb«i)i*<<ilbii>i>d<>ribe

764H

Aninuni urbDinee* Id dUih buk
oi buki to be uppllHl (o redenip-

UOD of blU>, ud WH bnriii( lo-

«t,M7 4f

M,MBS3
943,040 19

Bl,9ntt
381,94014

nntea, bUU of eiehinis, and all

Total amoonl of i»aure» of bank

»»,»OBW

989,819 n

316,904 n

300,186 01

at,4»n

April, 18S8,
18,793 99

1,000 00
an 00

Ipdl, 1858,

9,03190
d,3S0 00
S,1»00

fo,'s(»"oii
li,ow''oo

T,*10 0«
900 00
1,100 M

April, 1858,
Oct, 1998,

99,884 74
1,091 «0

Hum of declarinf l{w^ dlrl-

0.,IBM,

Amoa.i of debt, due lo Ih. bank,
tecnred br a pledfa dd Ita nock
Auonm or Jebu rtue anil not paid.

6,089 M

w BaTtoia Balk.

n lumnd i Ktlmiud rrara 13,000 to IB, OOO.

n,g:,.-ndtyG00glc

conditio::* of the banks.

^ At tonib n JCdMocteMM— CoatiDoed.

c.«o..

nrnwut.

tWttM..

NOPMUM.

Dodb-.

ChftalMnek

fln dolimn ud DpwuiM

ABMdl or Wto 1> ciRDluJoii nr.

«Ma,iMDii

-.J TS,M» M

as,SMts

•MSOMW

nsiMU

«nD,or«i)o
a«,8!Moa

M,1U00

da,niaa

tlO(l,000 00
51,710 00

91, 143 00
17,5110 33

•104,703 00

90,010 00

not Iwuliii InUTM, Iti Ulh In
dHlsMfacT bubeicepud....

41,10105

81,343 57

10,'onw

TMid OKBiu <i« hen Ika buk-.

«,,«-

!,»,«» B7

Ml, 731 «

B1I,0U»

sa,»)7S

OoM,*ilnr, ud ol)i« colHd ■»{■

!kSS

»,4M7S

«e,wsd«

13, Win

13,773 14
1U,1WB1

Bia,on»

Ml 00
14,007 01
tBI,731De

4,778 41

■0,100 77

Mill or hul;> Id Ai> ud ar tho
olharllaw KDfluid Rua ....

fll,173U
ItO,>ISOS

3,438 00

AwnBI of bnlnKoi iiollin buk
tkworbUI.,«?^h«ri.(tB-

i«,atoot

M1,)H03

AiMol or 111 Mf dH, l>c]..dii«
■ouo, bill! of (icbuce^d HI

f««»M«.«r«-™.0,b«*.

«i,«aN

i,»,tMn

Kl, 13148

031,60*31

»a«,sn7«

lUI ud UHWt Of dlTldnidi

Jib , ISSS,

iFiTii;

Oct.. IBM,

■";,»■!!

0«„ 1SS8,
«,3N00

April, ISK,

9 p«r cunt en
"'l3,[>UO ob

10,431 01

AprtMsie.
'olS

1B,3M30
MO 00

g».ord.oUrln,«^.l«dlrt.

A«o.iiVif"deii.d»'»ihi'taif

•cennd l» ■ ptnic* on In iiiick.
A>«iiiof<i.Mrdu»<l luitiwu,

N>T. 18SB,
H,<tMOI

Mrs,oouoo

t,lM>0

[n I8IS, Mill cf IB, (7, ud W !»■<
Dm Dedllui iHUluthn <br Si*ln(i
Inalndiac elMcki on Hew Turk *iu

ilnel Dd iBi Dibor BUM*,
fiorlif TnunK.
M of )38,oao, Kbick It t> bollnod wOl bi

n,g:,.-ndtyG00glc

CONDITION OF THE BANES.
D 1.— OnUtni^MitaaJ

DOBCBaarak.

qoilcl.

^^^..

...a am.

MBnajaii.

Hi-WoBawn

<iiDereM«.

Budolpta.

■"■""™'"'

8T,«IM
EOMOS

tlM,000 00

aa,»ioo

•130,000 00

43,390 00

•190,00) 00
M«,aHoa

•t3,3«8 00
«l,MflI

tuo,ooooo

M,MiOO

AS!S.Tbiii;"i.i*;ii'iha^'of

3B;otO«

not bculii InunH, In bUb In
doa to aUiir^nki Jxcepud .. . .

71,»05 0«

so,Mtn

T1,U>1

i«,ms

Taul uwani dM (ton tbt bink. .

ftK,m 13

I7B,»»«S

9ei,331SS

su,»iBe

4ia,41« H

Gold, KlTar, and ottir eelnad

maulalDlubuklDi-btHua

ia,94l<S

bIooooo

3,917 M

u,eeiH

ia,oe«n

10,917 77

olooooo

1 8,301 is

14,aSMM

0,861*0

ts,>i*a

i,4B7D0

or kuta n b< appHad ts n-

srES.'.r.'-fr.'r.

SsWi.-'X-Cl.'^:.

iT.mm
m,mt»

l7,«iM

BaB,717 13

tB,«3W
(307,413 33

l«^■KM

n3,ni33

ns,81tl3

i7(,m«

■SB, 331 U

M,mia

4ia,410 M

rtJ«^lh/TSS".iiBUl iHam,

A-m, 18M,
Ocl., ISM,

SiMOK

iprtl, ISM,
Oct.. 1818,

13,371 SS
l.BOOOO

April, isse,

Ocl.lSSB,

«,033 33
1,100 00

April. 1S96,

**i:7li'Ea

Otfc, 1B58,

14,000 00

1,110 00

3S110

April, ina,
Oct., loa*.

Aiwnnl of narrad proffli* al Itaa
Um* of dMiailiv Uh Ian diTf-

*S2SS"-'

3,000 UO

IlaelDdliii ebMki.
IwUttdlBi ku lo Mats of n,«M.
rrsbiM* lOM 00 ani>«»Jai fapat 9

n,g:,.ndtyG00glc

CONDITION OF THE BAHE8

^ Ot bmla tn Jfawarih(»gi Continpfd.

™t.

-,..„..

..,

1TTLU*M>'.

p«>i>i«>.

SooUiad.

Unlim Buk
ofW™aUi

Wnnibun.

AtUaboroiifli.

^r...,...^

•I10,M0 W

|IW,e(»«
41,BC«<n

■sail!

tisa,<niOD

17,490 00
17,«S7 00

aCmofl

1130, MO 00
•»,70«M

•IB, SOON
1S,S49 ta
a, 348 71

7,W1J7

(100,000 00
83,600 00

flndunui*ndiipw»di

AMkoaat orMUl IB dreallUon of

IS, me 00

I61,4»W

Sl,»«7 H

B,i,as« 77

1I,1S7 «

Totil tBOUOl di» Aon tlia buk..

M,s«a

»M,mw

«».«817«

m,m^

I74,0nBT

3,l«00

1I,»T7S

3B,mt3

Sn,304M

B14N

?;SSS

'su'?»':;l:ASivsLf."r.

3I,<»IM
»,0H01
iOB,7«W

miB

IB,H3IS
144,SS1 BT

Sl»,M7 44

T»,«.™.„^«™-*».,,

«ie,Msi

3M,jMaa

S0»,«179

a9l,TSl W

I74,0MB7

•Inn tt» lul uuiuJ trtom,

Aprir, 18S8,

Otu, lasa,
ii.iean

April, IBM,
Oct., ISM,

4,000 m
4UM

April, IBS8,

Oct:, leM,

18,817 OS
400 00
SSTTt

No»., I»T.

7,soooi

15,318 u

April, lase,

Ocl., 1»S,
13,S1T S7

*™"'nf°diJlS^''£^lii."M-

jsTofr^'lsr^^^';-

i,moo

s,snx

ii,igi<o

uy Google

CONDITION OF THE BAKKS.
D 1.— OmUHn^Utllanbiit JK>a>>aba(CI»--0«tinned.

r«...«,.

-.^««..

Faktann.

IMBlTcr.

M— u

w™-„.

HI rmwt TBI »)>■.

si,tu 00

19,701 to

«»0,00tD0
101, BU 00

S3, moo

u^moi

lilOOM

n,o«os

1000,000 00

48,1W00

18,101 00

no 00

47,TnS*

•300,000 00

io«,o8soo

43^»107
7,804 W

88,784 »

•100,000 08

41,HIB0

dull d«po.lnd. twlidia|*U nm

«,0a8 78

T^M«™.-«.»o-.,h.b«k.

4is,iu as

090,3)181

3a8,W»»4

87a,lW88

flll,88B9T

OgM, dlTer, >iid aUier eolud mal-

10,731 5T

3,000 ou

310 00

•,»!»

3n,IMB3

n,«i>i
ns,Miot

IS, mm

11,301 40

8,144 08

olbtr Sew Bndud Suih

•4,378 »
W,Ut >8

iMootaa

7,837 78

8,01148

Ikw of UU^ iX^M bMiini iT

70^478 81
788,880 18

31,718 78
180,013 U

DOIH, UlU or tiebui>, ud 31
•■Mki ud ftlDM <KI>U of »«T

«U,I«»

098,38181

»,7t*M

878,340 88

91ft,W ST

SJttdiEi """"■"' "^'

April, 1*98,
OctotanlMB,

3,Ultl

8,«ao»o
i,aM(o

Aj»n,l898,
Ocwb.!t,18S8,

00,188 S7

a,oo«oo
»,onoo

^DMOO
Julj, ISU,

■0,444 10
18,400 00
7,000 00

Jw..,18»,

Jnlj. I8S3,

88,744 78

J«.,I<B«,
J<ay, 1898,

J-.ofd«..rt>,U«.«*W-

4Z"l7;r'3''iJ'£: 'L"^;

8,000 00

n,g:,.ndtyG00glc

CONDITIOK OF THE BASKS.
D 1.— OwfitMnyifa&MbM JfaMOflhutttt— Continaed.

»..<.»».

ttemn.

B«ifMC«B-

iurUL

"•-"

''"»^'

"■"•■"■■'"'

•000,000 00

]0S,SBO00

3o;dm<»

is>,i3> as

•600,000 00

iu,oa«oo

lis
■ass

•000,000 00

ioa,aMoo

16,047' 00
131,114 41

•000,000 00

m,MOB0

sarins 95

5,508 74

SS5,<88ei

S3,S7S5T

84,035 09

!a:S"."iSiVii.i.::::.

38,388 00

-■ss

183,451(5

Tool uiout ilu« rroiD the lank. .

Me,MIT

i,»4i,mi 07

B7i,83»»

1,143,091 37

(70,611 45

SoM, rilnr, ud otbMCOtMd Mi-
ll, to lulHiiUBt-hoBH

££Til^'i;--ti^-;^';>i'';i^

oU»r Now EdiIuhI Sou*

Has

film as

»,7H IS

ii;is3oo

■!I,WI00

B,mTo

ftOBOO

33, MS 09

ioiooooo

S31 00
00,304 13

SJS,S
£:SS

■Kn of Mll^ ud^DM kMrinc In-

(8,338 44

T73,0a<S»

'Esss'.fsara'ai

en,iiiss

99(1,1X03

l,»«,77«»5

(07,385 70

Toul uiiiinDtof moorcaoTbuit

M8,SMM

l,04i,«T5 07

S»,B3*73

l,143,89t>7

Tn,MI4C

tam Md IDKHUII or diTld«Dd.

April, IBSB,

J per caDL,

1(1,000 ou

0tlober,18M,

l^73»ail

400 00

April, IBS8,
Delober.lBSS,

43,1«U
3,400 00
4, OB) 4!

April, 1858,
OctolMr, 1S58,

«>,ir7iM

April. 1858,
October, 1658,

40,790 14
1,400 00

April, 18(8,
October. 1858,

45,150 9)

Awxiit of rwmd fniBu U lb-
bine of daflutDf ■&• lut dirl.

wqted ky ■ pi>df« HI lu mci
AWMDl nf dBbu dna ud nn paid.

8,750 00

8 451 SI

•ladodlaf HiwTBTt.

HaelUlDf Nov Toik Vhj.

n,g:,.-ndtyG00glc

CONDITIO^ OF THE BANKS.

D l.—COnditim of Uu hanki in JfameAuMnt— CoDtluned.

"™-

-"—■

-"'-

"-.r™

•"—■ ■

TMaum.

AblDVM.

SlDiham.

NonliBrid|>-

•■■'■""■■"■

«ti».«DOiig

Bl.USDI)
SB,HSM

HM,S«OCO
44,010 00

19S,W3S8

S7,100 00

ass

«1M,OOOOD

ao,n9oo

18,1*4 00
T,DtS0O

•100,000 00

SO, tag 00

AOMUnl or bill* ill clRDlatiaa of'
Are doUiri ud npnrdi

OM keulBi iDUnu, lu bUli In

M,3B8»

■3,810 07

3a,H3 1B

3B,M10S

Tou] uioiHi dot ttom Ui< buik..

aSBjlUTl

757,868 84

aM,BBsa»

a7e,o>t IT

330,713 99

OoM.dlTer, and other eobiad mM-

•,«« »

S;5SS

41,BaM

a, ass 01

^968 IS

moo

17,00199
5,90*00

1,440 10
3,403 10

t3,aU40
937,495 83

5,500 70

"^isSBS^-

swoo

T.TPBK
S<T,1U7 3T

e,H7 00

z.'ss.y.SLas.'^i:

•990,744 09

AmaaUCfiUdablidHjIicMdlH

SSSTi^-r.Ki.'-':.

Ug,0tt£3

3S8,l«TI

T5T,«H34

nT,BB9 8t

STB, 801 BI

«»,7isa

Bu* ud iiiiodDi of dltUmidi
MOO* lh« lul unual nlutn.

OM., 1M«,

U,I)WBB
3,™ 00
3, TUTS

90,000 00
900 00

3U0O

Apill, 1898,
Ort..lB58,

4,649 41
1,800 00
908 00

■1ms or dKlirlnf &« lul dirl-

95,413 11

1«,«IT14

ABooot or d*faW dot td th. huk,
Kcond br a pledfo on lu nock .

10>,T!»M

■ iDOladini 90 akun Buk sT Hyml RodoBpiloa auok.

n,g:,.ndtyG00glc

COHBinOM OF THE BAMXS.
D l.—OmdHiom of Oe tonit n JfoMaciuNttt— Contioaed.

,.u.o™.

.^WIC.

OMORkiar-

FIPHMta.

WinbWD.

Mnottlb.

BHkorCqw

-'""-™—

■8,ta>0(

«!»,«» oe
ii4,«>oa

■!;gll!

#100,000 00

tl0l),O«IOO

«,!»0 0«

•1W,M»00
I1S,T90 00

Ahwh of UUt Id drraliUoo oT ■

llSSiS

0«5_d.po-..d^cM..,^^.™.

.t;;^£

tss

B,»T«

13,737 Oi

T.«-o-«d«fio-lh.ta.k..

3S>,BU 17

SMjOsen

•a,uis>

MT,ISS ta

31S,W71

Sou, iBm^ oUwreotDod »M-

■iSS

m,mn

11,SM00

ijooooo

8,71* T3

i»,Ma7t

Mta of Wnki bi mil and or lb*

ABdot or HI drbM «M, inelodtH

iB,8tae7
isi,oeBn

«a,«a«

„««««. of r-.«-of»«.k.

xo,m 11

M,00t<T

S3a,«»»

MT.IBS 03

3it,mTt

liK* tha IM ■ddbU num.

ipril, IBM,

o,«o«oo

1S,SM ST

i,mo>

•^Jsoooi
'i.soofli

I. moo

t,HtOO

Jwi.,lBS8.

Jiir.itt*.
iT,wa

Oet..lBM,

riMBf dael»ta«t^ MdlTl-

B,«»«7
1,700 »
11,790 00

AHwat a Uba di» fo ibi ta^k.
(•nnd bT ■ pliHite on lunack

S,MtOI

■

tIiKl»dlK<ib«ki-

H. Ex. Doc. 112-

uyGoaglc

COKDinON OF THE BAKES.

D 1. — Qmdmon <^ Ou hankt in jrouaabtMOi— ConUonvd.

Kinbt'i TlM-

» or Bra doDui lad

iMOHIlbw Sn 4alUn

■dlDCM dM to Mhar buka

O^ depMnd, iMtDdbll Ol iinu

dM ftom Uwbuk bm bentoi InUmM, Ht Mil*
la etac^dd^^raao u4 taluna '

tlADjNOIiq

•Mi,oosoo

S8,tlOW

OeM, lilrai u4 oOw MiiB«4 oMUJ* la ID ktak-

■£fiSir:;;:;::::;::::::::::;;:;:::::::::::::

Ml* Mtaoka la tbii u< of tlia oUm Haw bt-

■ppllHl to ndeBptiOB of Mill, ud not tKutiif

3, on 00

10)00

IS, SUM
tSt,MBW

■jMMOO

TBS 00

36,100 at
n9,Ml 00

1B,0HST

Orc,IB9G,

3,500 00

I afdcUi du uid DM piJd iBd eoiuMcnd

ArrfliiaSB,

Oc^lHB,
4 per nat,

l,4M0a

April, INS,

1,000 oi

Oct., IBSB,

3,ooo''ij

S1,IM»

nSiSiois

April, ira^
0,000 OJ

oct,inB,

n,g:,.-ndtyG00glc

C05DinOII OF THE BANES. -
OmJOim qf lb lanb *• MM-iKtiiitl* Oontlnged.

], 013,787 39
3,K3,B«3 19

T,3tS,eM«l

4,IK,4MN
S,«3t,BUtt
T,tM,BM«B

■alMMa

Mk or taoka in ikk (Bd or ibi oitar He

V (MicsiMim oruili, ■■< Kit beuiiit liHcran* . ..
Anai of 111 4Mia in, IncMdlof bom, blUi a
ctaBfB, iBd kit itoeki uul ttandad AbB oT amy dM

>,SI3,4MOO
a,B90,S4 3S

JeulHr, IBM,
1,141, SOD 00

l,M3,tel 71
>«laliAt, 18W,
n3,»7lll)

BI,7W0t

ts,iEs,iasrt

OeuHw, l«^

psSu u tbe tiDW of teduliv Iba
■I of dBbia doc u ttw task* memi frf ■ pM(« on

* Tbli nftn onl* to buka ool at Bom
lFor4iff>n

iFor 4iffvTBDH Id ufnolaaBH ntHni oT Binkof Mb
I IdcIwIh dlfyndi mOt Id Jmbut, April, Hif, ko.
llaelDdMdlTtdiDdi bib4> Ib JbJj Dud Bapwubw.

It ■'ABUHUtaT Mwico, ka,, fiir rMtDpUoDof Mill"— till uddiidl rmmed br ttwoi iDcMlu
■ Um, NDODikaif, CDoibiMia OIn, CkDiMdfn Mukct, Bapklnion, Uiroad, Onowu, MooMO.
-■tapiu, Miinpu, Bedford OoDDurelJ, MirlDa, HarclUDti', Na« Badford ui BrIHDl 0' unn.
Ann(B diTidaadartUnj-Riat buki Ib BoMon, la April, Itta, (dlddfnd paid oa $31,SU,M0 caplul,] k

AntDCa dlfUcBd of tUity-lbu tank*, ■■ OOobar, 1K8, {dMdud paid oa #31,960,000 ci^tU,) M S.BpW

twfi dMdBDd of ooa haudred ud ital/^-ihna taaki «al of BoMua, In April, ISIS, [difldaad aali oa
V7,Sli^ cndnli) »• 3.08 per eant.
A««a(* dlrttMd of oat baDdiad ud tfainr bmki. In Octobai, IBSa, [dMdCDdi paid oa «n,lS7,gaO capUal,)

Antua AvMaai of oaa bOBdrad aad ditr-aanB bmki ks and ool oTBoaloD, la April, IBS8, (dlTidndi paid
«tU^»,«l9eapltal,)kS.T0pareaiit.

ATOTfa dlTldiado^oM taBBdrad aad ilnT-lbBi luka,U Octoter, ine, [dhiduidi paid on tfitJMMt
ra^m.) ia 3 a par cant. •

fateaaiaaB oTdlTMaad on loul banklBi eaflul ttBOJlSJIin of «w boodrad isd aaTCBtr-un banka.la
April, teS.U per eeDL

r* MBUwa of dirldmd on land baokini capital (Hl,aOI),7(m) at ana bundnd aod at*EBt]r-tiDi banka, la
Ocioker, k 3.U per caat.

Tka Baaa Uw, Salen, WoccMur Coanlr, UaohlDlata' aad raJiBoalh Buka, rtpreaaallDt ■ aapiMI If
•TlMOli Bad* BO dlTldeada Id 1890. n* Baak (rf af«b*M asd tka W(H«bBB, bob* ia Dctokar. |

,gle

CONDITION OF THE BANKS.
V l—CoaOamd.

Tlu eapit(d itodc <^ IktfoUoKii^ bmJa mat mtmmi d tlu hmmo qf ISGT. Op^fieata if aScSHmal

lis

5!;aiS
■i;o«i(»

INnqMB c> tktout or tbo* inmUBf Ilia nun 1 W wtaU> Ihta b l(1i>, it I. nM to b* d<DMd llul ItMn 1.

g, TtoilriNi il

le bluik nnini ihoaU kc » ippuvBl ibal hut

Afgngdt y ^pt^MB «a>^ inb.

Loui DD paMli
JuGrMdNoek

BiuuidiiiioiDlafoidtiUTdlTldand AirMil |P«v. ..

•,SI1,43I M

1,I»»,SM II

81,380 M

5.»Krc«nt,

i,3i3,snia

«.MjHre«l.

Aggngaltqfaglttii-taiaa»gt'bmkiiK 1S6T.

pBUicfiuida....
Leui OB paMh
BukMocE

LnoHontuk
DnuMMlDbul
liCnditMk..

IMiud UBOniil of iirdlaU7 dlfldond Ibtlutfou.

AnnnkkBUlpacat-oTdlTUaMiof iHtflnjnn* ,
AbdmI (ipaaHo of Ik* iHUMlMa

«a,tl5,Tsi Tl

e,1t«,3Sl M

1,S«,T13 M
llt,t«S »
1D(I,<MM

t7«,3I3 OB

ii,Dn,sei (D

3,»T»,0M BT
S,«U,44S IS

B.9 nt eat..

I, Google

coiromoN OF the bakes. 69

D. 2.

UASSAUUOSEnS.
To Son. Oliver Warner, Secretary of the CommonweaUh:

The bank commisaioaers herewith respectfully SQbmtt their eighth
uinnal report :

The number of bants in operation in this commonwealth at the
present time is one hundred and seTenty-foar, Of these, the Hide and
Leather Bank and the Bank of Mutaal Bedetnption, both in BostoD,
hare commenced baainess within the present year — the former in April,
the latter in Aagnst. The Western Bank, in Springfield, is not
incloded in the number ; the injunction placed upon this bank in
October, 1867, wae ordered to remain in force by a decree of the
gapreme judicial court, issued on the Ist of February last, and ita
bnainees was committed to the management of five receirere — stock-
holders in the bank — who are now engaged in bringing its affairs to
a close.
The amount of bank capit-al in the commonwealth at the

date of the last annual report of the oommissioners

was $60,216,126

Additions hare been made since that time

amoanting to (1,852,926

Withdrawing the stock of the Western

Bank ; 250,000

We have as the aotoal increase daring the

year 1,602,925

Making the total capital at the present time 61,819,060

Of this amount 38 Boston banks hold 33,472,600

136 other banks 28,346,560

Total 61,819,050

Of the new capital, ((1,852,925,) there has been contributed
by the—

Hide and Leather Bank $1,000,000

Bank of Mntual Redemption 512,600

1,512,500

and the balance is made up of additions to the capital stock of some
few banks out of Boston, whose authorized increase had not been
wholly paid in at the time of the laet atinaal report.

Of the twenty-six banks to which the legislature of 1657 granted
authority to increase their capital stock aU bat three hare availed
tbemselres of the privilege, though not in every instance to the full
extent permitted. The authority was accompanied with a proviso that

70 CONDITION OF THE BANKS.

the whole amount ahoald be paid id before the let day of May, 18S8.
Within the time specified twenty-ooe of these hanks paid in all the
additional stock granted them ; the Brighton Market Bank called in
but half ($50,000) of its authorized increase ; the Old Colony Bank,
in Plymouth, obtained Ibave of the last legislature to extend the time
for paying in the iacrease of its capital to the Ist day of May, 1869.
The three hanks which hare not taReo advantage of the acts allowing
them to increase their stock are the Maiden the Oxford, and the
Wren th am banks,

Ko new bank was chartered, nor was any existing bank autbonEed
to increase its capital stock at the last session of the general court ; nor
were any applications made, so far as we are advised, for either
purpose.

During the post year the commiBsiooers have made formal examin-
ations of eighty-four banks and forty-two savings institutions, besides
occasional visits for particular purposes, whenever such visits in their
judgment were required.

The c immissiooers are happy to hear testimony to the uniformly
courteous and obliging manner with which they have been received
by the officers of the institutions visited by them. Without exception,
every facility has been afforded, and all Deeded assistance rendered to
make a full and fair investigatioa of the condition of the hank under
examination.

Although their experience has been too limited to fhmish many
topics of discussion , they have still made some observations and formed
some opinions — in the main confirmatory ol the opinions and sugges-
tions ot their predecessors — of which they propose wiefly to speak.

Before prooeeding to these, however, they cannot refrain from
remarking upon the very satisfactory condition presented by the banks
of the commonwealth, after the severe commercial crisis through which
the community has just passed. Although driven into the suspension
of specie payments, through the action of foreign institutions, still
they never for a moment lost the confidence of the community as to
their soundness, nor did they fail, during the period of alarm, to
furnish every aocommodation to their cnstomers which could justly
he expected. In fact, some of onr banks did not suspend at all, not
even in form ; and with a large part of them the suspension was
merely nominal ; they concurred, as a matter of precantion, in the
action of other institutions ; huh in very few instances was specie
positivelyrefused, when called for ; on the contrary, the supply appears
to have been sufficient (or the demand, and as a general thing all
reasonable requirements were satisfied.

That this confidence in the strength of our banking institutions was
well founded, and also that their efforts iu extending every possible
aid to their cnstomers were not ill-judged, is fully evinced by their
prompt resumption of specie payments, and by the comparatively
small amount of overdue or .suspended paper with which they were
hardened. There was reason to apprehend large losses dn snch paper,
but we have been gratified to find it, with few exceptions, so protected
that very little is set down in' the directors' estimate as even doubtful,

n,g>-ndtyC00glc

ocannrioir of tbe bahbs. 71

We apeak of those hanHa which hare been visited hj xu, aitaated, for
the most part, in the coaotry.

In this connexion we would also remark that the amonnt of paper
in the banks, issued by larse manafacturing corporatioos which have
Bnepeoded hosioess, is far less than there was reason to fear. Thia
paper is confined to a few institntions, and is not of an amoant seriously
to affect their eoandness or to cripple their businesH.

These resolta cannot fail to inspire increased oonfidence in the
banking system of the commonwealth, as well as in the general
ability, pradence, and sagacity which characterize its adminiBtration.

It has been gratifying to ns to notice the aniformity which generally
prflTails in the mode of condaoting the affairs of the banks of the oom-
monwealth. This nnifbrmity is in no small degree owing to the
iaflnence of the commission. Visiting all the institutions in the State,
and becoming familiar with the internal arrangements and the modra
of oondncting business of those -which are best managed, they have
been able to make vnlaable suggestions to others of lese experience,
which have been in most cases readily adopted, thus producing the
reanlt spoken of.

Some things, aevertheless, we find, which are susceptible of im-
prorement.

There is no small laxity with respect to the modes of transferring
stock taken as collateral security, especially in some of the larger
banks, where we should least expect to nnd it. It is not an uncommon
oeoarrence to find stocks lodged as collateral with no legal transfer
whatever ; but, in place of it, a simple power of attorney to the cashier
or other bank officer to make the transfer, and in some cases not even
that. We have, in all cases, urged that a lull and legal transfer be
made, a new certificate be taken out in the name of the bank, and the
old one mutilated or destroyed before the loan is completed. This
we consider to be the only safe conrse.

With respect to the holding by a bank of its own stock as collateral,
we regard it, at the best, as of doubtful expediency, and could wish
that the practice was entirely done away. In some of our sister States
the practice is forbidden, aod we think with good reason, by statute.

The subject of memorandum checks, and other like substitutes Cor
cash in the drawer of the teller or cashier, has often been commented
OD by our predecessors, and we are happy to report that the practice
of allowing them has nearly fallen into disuse. The very few instances
which came to the notice of the commissioners have not been suffered
to pass without pointed remark.

The practice is a most pernicious one in every point of view. It is
a loose and slovenly way of doing business, and on this account alone
should be discountenanced. But it is also a source of favoritism in
the dispensation of bank accommodations ; it leads to lax views of their
tmstfl on the part of bank officers, and opens the way fhr numberless
deblcations and breaches of trust. It is a well known and acknow-
ledgftd fact that by far the larger portion of frauds in the managemeai
of banking institutions have their source in the bad praoti(» of which
we are speaking.

Oar experienoe has but oooflrmed the views of our predeoesnni ia

72 CONDITION OF THE BANKS.

respect to the acconnt of blank or anaigoed bills. With some ezoep-
tionB, we have found it less satisfactory thao any other which we hare
beeD called to examine.

The difficulty arises partly from the want of n dne estimatioii of
the importance of this accooiit on the part of bank officers, leadins to
the bestowal apon it of too little care and attention, and often, also,
from nnneceasary accumulations of the blank bills, thus opening the
door for mistakes, if not for frauds. The principal obstacle, however,
to a satisfactory examination of this accpunt is found in the nature of
the proof exhibited of the receipt of the amount of blanks with which
the bank stands charged. This proof is the bill of the engraver, which
is not always found to be free from mistake. In illustration of this,
one instance, at least, has come to our knowledge, in which the amoant
of blanks exceeded the engraver's accoant by $2,000.

This account is one of vital importance. It lies at the basis of the
circulation, and unless its items be carefully ascertained, and the
aocounts be aecnrately kept, it is impossible that the drcnlation and,
of course, the liabilities of auy institution can be well ascertained.

This subject has been pressed apon the attention of our predecessors,
and baa been the theme of frequent remark in former reports. In the
fifth report, especially, it was fully disonssed, and the recommendation
made that the commonwealth, by means of a State registration, analo-
gous to that of the State of Kew York, assume the responsibility of
issuing bills to the banking institutions.

Without expressing an opinion in regard to the practical working
and effect of the plan thus recommended, we desire to call attention
to the whole subject, hoping that it may receive such cousideratioiL
from the legislature as its importance seems to demand.

The most important legislation of the last session with respect to
banks and banking was the passage of "An act to increase the
amount of specie in the commonwealth."

The first section of this act reiiuireB " every bank in the common-
wealth to keep an amount of specie equal to fifteen per centum of its
aggregate liability for circulation and deposits," with the proviso that
the banki out of Boston, (including those of South Boston,) in their
monthly returns to the secretary of the commonwealth, " shall return
the monthly average amount of balances in other banks, not bearing
interest, which may be applied to the redemption of their bills, and
the same shall be oonsidered and deemed as specie for the purposes of
this act."

Another section provides that " the amoant of bills issued by any
bank shall not, at any one time, exceed the amount of the capital stock
of said bank "

Some legislation of this character had been repeatedly recommended
by this board, particularly in its last report, and was, donbtlees, in
obedience to pnolic sentiment. Whether the law was framed in the
wisest manner to secure the end of its enactment, the questioua which
have been raised as to its construction, and the practice which has, in
•ome iost&nces, obtained under its provisions, may well lead to serions
doubts. Several of these we will now notice.

And first, it has been questioned whether a bank balance or deposit.

COHDITION OF THE BANKb. 7S

not l)eBring interest, bat yet not payable on demand, miebt still be
considered as applicable to the payment of the bills of the creditor
bank, and thos oe "considered and deemed as specie," within the
meaning of the act. Our aniform answer to this has been in the
negative. We hare not seen how a Imnk balance not payable on de-
mand conld come within the meaning of the words "which may be
applied to the redemption of the bills' of the creditor bank.

The insertion of the words " cmd paytd^ on danand" after the
words " not bearing interest," and instead of the phrase which fol-
lowa, would remove the donbt as to construction.

Again, it will be seen that the act does not, in terms, define the
locabty of the banks in which specie balancM may he held. And,
onlefis the rnle of construction shall hold in this instance that the
operation of the statute is limited by tbe jurisdiction of the enacting
power, we do not see why a balance standing to the credit of a country
bank in ^ew York, Philadelphia, St. Louis, New Orleans, or even in
foreign lands, may not be " deemed as specie" within the terms (tf
this act.

Now, it seems to us incredible that snch should have been the
intention of tbe legislature, when the olgect of the enactment, as
appears from its title, was to " moreoM the amount of aptde in the
oommonweaiik."

It is well known that the bills of the conntry banks are redeemed
in Boston, and of conrse that specie or specie ihnds held by them
there would be equally available, nay, more available for this purpose
than specie in their own vanlts ; and it is presumed that the proviso
under consideration was framed to meet this state of things. But we
confess our inability to see how the object of this act, which is to
strengthen the specie basis of the banks, that they may be better
prepared to meet a sudden and sharp emergency, can be secured by
allowing a country bank to consider as specie a balance to ite credit
in St. Louis or New Orleans.

We respectfully recommend that the act be so altered and amended
as to confine the specie balances to the banks in the city of Boston,
and also the city ot New York, for the accommodation of snch banks
as keep heavy lulances there.

It will iurther be seen that a country bank need not keep a dollar
in specie to meet the requisitions of this act, it only being necessary
that the fifteen per centum of its liahilities for circulation and deposiU
be kept as a balance in some other hank. We suggest the propriety
of so amending the act as to require a certain proportion of specie — say
five or ten per cent, — be kept by the bank itself.

Again, whenever the weekly average of specie in any bank in
Boeton, or the monthly average in any country bank, is less than
fifteen per cent, of ite aggregate liabilities for cironlation and deposite
it is made " anlawful lor snch bank to make new loans or disconnte"
until the requisite amount of specie ia restored. It will be seen that
any such bank, on finding ite specie below the required amount, or
even without holding a dollar in specie, may nevertheless continue to
make " new loans and disconnte ;" provided, only, that care be teken
to hold enough specie daring some portion of the time for which the

74 coHDinoir op the bakks.

retara is made, to mske tlie required aTeraze, TbiB will not be likely
to happen in the Boston banks, where the time for making the average
is short ; bat when the time is extended to a month, the probability
of such an occnrreDce becomoe greater. And we have been informed
that it is the cnstom of some conotry banks to continue their discoants
after their specie and specie balances are ascertained to be less than
the amount reqnired by the statnte.

We cannot deny that the practice is legal, and we refer to it for
the purpose of pointing ont what seeme to as a defect in the law, tot
we are unable to see how the end songht by its enactment can be
secured while the practice alluded to is allowed to prevail.

We recommend such an alteration in the act as shall make it un-
lawful for any hank to make new "loans or discounts" during snoh
times as its specie shall be less than fifteen per cent, of its " aggregate
liabilities for circulation and deposit."

The question has been propounded to us, whether, in making his
return of the monthly average of balances due his bank, not bearing
interest, the cashier shall state the gross amount, or only the Bom
remaining after deducting there&om whatever sums may be due from
his to other banks ; or, in other words, if he hare a balance of $20,000
in hie &vot in one liank, and a balance of $16,000 against him in
another, eball he return as the true specie balance the $20,000 or
$6,000?

We learn that the practice in this particular is not uniform, some
returning the gross amount, others only the remainder. While we
do not see that the terms of the act require the adoption of the latter
method, it is neverthelees difficult to see how the object sought for in
the passage of the act can- be otherwise secured. For if the other
construction prevail, any oonntry bank which finds itself indebted to
another to the amount of the balances to its credit in the regular
course of hnsinesa, or which contrives to keep itself so indebted by a
little unconscientious management, is exonerated from keeping specie
at all, and the law becomes, in its case, a nullity.

We have been informed that it is the practice of some cashiers to
include, in their monthly retnrns of specie balances, the average amount
of foreign hills and checks in their possession during the month, or
else such as may be on hand at the date of the return.

By what mode of reasoning a bank note in circnlation, or a check
or dtaift not accepted, oomes to be considered a bank balance, we are
at a loss to conceive. Nor can ve believe that the practice prevails
to any cnnsiderable extent. In order, however, to remove all excuse
for it in the future, we recommend that the first and third sections
of chapter 304 of the laws of 1854 be so amended as to include, in
the returns therein reqnired to be msde, this additional particular,
viz: "bills and checks of other banks" to be given in a separate
column.

On the whole, while we fully believe that the act of 1858 is founded
on principles which are sound, and which ought to be incorporated
into our banking system, yet in view of the various constructions pat
upon some of its provisions, and of the divers modes of practice which
Mve hitherto prevailed tinder it, and eapeosl^ in view oi the ease witit

COHIHrnOF OF THE BANKS. 76

vliioli its prorisioDa ma^ be evaded, we are forced to the conclnsioQ
that anleaa it undergoes importaQt modi&catioDB and ameodmentSjit
will fail to seoarethe enda for which it was enacted.

The practice of taking illegal interest under the guise of ezchange haa
been oommented on is nearly every^ previons report. Its glaring iooon-
sistenoj with sonnd banking priaciples and with the laws of the com-
monwealth has been faithfullyand clearly pointed out, and the various
pleas arged in its defence have been examined and refuted, but with-
ont making ench an impression as to lead to any attempts at its sup-
preesion. And it remains to-day, we respectfally sabmit, a reproach
alike to the banking iostitntions themselves and to the law-making
power which tolerates it. We do not propose to re-argne this q^nestion.
Enoagh has heretofore been said. Besides, it is too plain for argument.

A simple recital of the law with respect to exchange, and of the
practice which has grown up under it, is all that is necessary to plooe
the matter in its true light. The 4th section of chapter 196 of the
laws of 1838 is as follows : " Any bank in discounting notes of hand,
payable at any other place than where such bank is established, may
charge, in addition to interest, the then existing rate of exchange in
like manner as the same may now be charged by such bank on bills of
exchange and drafts."

Now it will not be denied that the trne rate of exchange which' any
bank may charge by virtue of this act is that sum which, in the ordi~
aary coarse of buBiness, is found to be the difference in value between
fnnds paid at its own counter and at the place of payment designated
in the note ; and anything more than that is " an usurious exaction."
Nor will it be denied that to most if not to all of the banks in the
oommonwealth, notes payable in Boston, where their bills are re-
deemed and their exchanges made, are worth quite as much as when
payable at home, and oftentimes more.

Now, under these conditions, there has sprang up the practice, which
is well nigh nniverRal, of demaading on notes made payable in Boston
as well as elsewhere, rates of exchange varying from on&-fourth to one
per centamj according to the time the paper has to run, to the state
of the money market:, or to the circumstances of the borrower. Such
being the state of the case, we respectfally ask in view of it, if that be
deemed a just and wise policy which limits the rates of interest token
by the individual citizen to six per centum per annum, can that be
oonaidered other than a jnst and wise policy which rigidly confines to
the same course of dealing those institations which are the creatures
of the State, and are clothed by it with large powers and privileges,
and which perform most important functions with respect to the
oorrency ?

We wontd recommend that the section above quoted be repealed,
and that the statute in respect to exchange on drafts and hills of ex-
ofaange be so amended as to prohibit altogether the taking of it on any
■Qoh paper when negotiated and made payable within this common-
wealth, with such limitations and safeguards against subterfuge and
evasion as may be deemed espediest.

The Bank of Hutnal Bedemption, as heretofore noticed, having
oompUed with the conditions of its charter, went into operation od the

76 CONDITION OF THE BANES.

2d day of Aagast. Sereral of the banks which had sobsoribed to its
stock remoTed their gpeci&l deposits from the Bufifelk Bank, Septem-
ber 16, and gave notice that thereafter their bills woalil be redeemed
by the Bank of Mutnal Redemption.

Not long afbervards the commissioners received communications
from some of these banks, complaiaiag of the conduct of the Suffolk
Bank towards them. The complaints were, that the Suffolk refused
to present their bills for redemption at the place designated by them
for that purpose ; that the Suffolk refused to accept the specie for
them when tendered at its own counter, and held them until large
sums had accumulated and then presented them, without notice, ror
redemption in specie only, at their own counters, thus forcing them to
provide for the redemption of their currency in the usual mode at Bos-
ton, and at the same time te keep an unnsnal and otherwise an
unnecessary amount of specie on hand to meet these extraordinary
demands.

On the 7th day of October the commissioners had an interriew with
tbe ofGcers of the Suffolk Bank, and a full and &ank interchange of
views, in which the Suffolk Bank disclaimed any desire to annoy the
withdrawing banks.

It has not been our purpose to enter upon the discussion, in this
report, of the varioas questions which have interested the buainess
community in respect to the best system of redeeming the bills of the
country banks, or the most desirable agency for that purpose. We
have therefore given only snch statemento aa have reference to our own
connexion with this subject.

The clearing house, in Boston, may now be regarded as one of the
fixed financial institutions of that city. It has done ite work so
satis&ctorily that a return to the old system of adjusting the daily
balances between the several banks may be set down aa an impossible
event.

Having completed tbe consideration "of the general conduct and
condition" of the banlea visited by us and our predecessors during the
past year, we proceed next to ao explanation of our experience and
views in relation to aavinga banks, in order that we may make such
suggestions aa to their present management and as to desirable
changes in their mode of operation as careful examination and inquiry
have taught ns to be needful or desirable.

The public, in our country especially, have a deep interest in oar
monetary system, in ite solvency and elasticity, owing to the larre
infusion of credit into the currency, and the extendi use of bank
promises aa a circulating medium. It is therefore of the utmost con-
sequence that these institutions should be not only honestly but wisely
and safely conducted, to the end that the community may not snffisr
from fraud, accident, mistake, or ignorance. Therefore it is that
directors and officers need and desire inspection, frequent and search-
ing. The more honest the managers are the more earnest will they
be for oonnse], suggestions, and careful oversight. Hence the neces-
sity of bank returns, and of ctmmissioners to verify those returns and
test their accuracy by unexpected calls, and careful inspection of books,
balances, and money drawers and disooonted paper. The mote nu-

OONDlflON OF THE BANES. 77

looked for th« visit, and the more faithfbl the examiDation, the more
aatisfactory to the prudent managers and the honest officers, and the
■afer for the commnnity.

Bat self-interest comes in here, and often provides checks and ap-
plies corrections, not always as thoronghly as is desirahle, bot to a .
conaiderahle extent. Those doing bosiness with banks as customers,
depositors, and often as large stockholders, are, for the most part,
shrewd bnsiiiess men, who are on the alert to discover and expose
mismaDagement and frand ; and thongh some of the stockholders are
not thus conversant with basiness details, and are sometimes the vio-
tiniB of misplaced confidence, yet, on the whole, banks are scrntinized
as to their loan and issue by those who are actnated by selfish motives,
and the pnblic are measnrably protected by this scrutiny. We coald
wish it were increased foarfold, and that stockholders wonld attend
tlie annual meetings of solvent banks, and not wait until they become
insolvent, and then crowd the meetings called by receivers, to learn
that their property is gone beyond recovery, because they did not take
the pains to see and to know how it was invested and managed.

In relation to SAvmres banks, of which we are now to speak, the case
ifl &T difierent. lu banks the legislature put safegnards around the
oircnlation and deposits, to protect as &r as possible the public, bat
tbey leave stockholders to manage their concerns and look out for
their capital and dividends ; while, as to savings banks, the legisla-
ture are the guardians of the deposits ; they are the trnstees ; the
depositors are the ceettti que trusts. It is true the legislature have
delegated the exercise of this trust to agents specially appointed to
carry ont their instructions and act as their servants. But the con-
fiding depositors put tbeir all in these institutions, tmstiug to the
aegis of the commonwealth for their protection, and for the prudent,
■afe, and honest investment of their moneys, not to earn large divi-
dends, but to secure a modicum for a rainy day, making sure of the
hard earnings of to-dsy to meet the necessities of a winter of sickness
or a season of financial distress, with a moderate interest accruing in
the mean time ; and in onr view there are no trust funds in the hands
of the Btate more sacred or which demand more careful, watchful
manuement than the deposits iu our savings banks.

No longer since than December 6, 1816, the petition was signed for
the oldest institution for savings in this commonwealth, if not in this
country, the earliest institution for savings of any kind, as we learn
from a former report, having been established in Berne, Switzerland,
in 1787.

Before one dollar was deposited in a savings bank in Masschusetts
the bank capital amounted to $11,475,000 in 26 banks.* At the
eloee of the year 1867 the amount of capital was $60,386,960 iu 173
bMike, and two have been added during the year 1868, with a capital
of $1,612,600, making a total now of not ^uite $&2,000,000, while
tbeee institntions for savings have grown during the same period from
nothing np to 87 institutions at the close of 1867, with 177,376 de-

a Bh of theae baaki, with * oftplUl Block of 19,160,000, wen Id Bortdn, the balaiKW of
coital, $1,STB,D00, bdng dlrldsd ftmong nineteen tmikt out of Boatoo.

II, Google

78 CONDITION OP THE BANKS.

poaitors and (33,015,766 71 deposits, beiDg oearly three times the entire
IiaDk capital of the State when these savings banks were GommeDoed,
and almost three millions more than half the entire banking capital
of the State now, without adding the increased amonut for 1868,
vhiob is jnet ascertained by the returns to make the preoent total
deposits (33,914,971 71.

This large amount is held, according to the theory and intent of
saTinge banks, on aoconnt of persons with small means, and without
the information and advioe req^uisita to make safe and jndicuMU
investments.

The leeislature at first confided the management of these instita-
tioDs to their respectiTe boards of trustees or managers, but for many
years past they nave exercised a much more watchful control over
them, directing and limiting their modes of investment and prescribing
their mode of operation by general laws, and by carefaUy inspecting
their management through the intervention of commissioners, first
appoiuted for this purpose in 1861.

It is well that it is so. There are no wise and &r-seeing stock-
holders to call the managers and o£5cers to aoconnt, and the oommon-
wealth is bound, from every consideration of policy and interest, no
less than self-imposed trust and positive duty, to guard tineaa deposits
with the utmost care and scrutiny.

Fortunately for the commonwealth and the depositors, these instt-
tations, certainly in this commonwealth, owe their origin to a desire
on the part of men of wealth and benevolence, unmovra by any wish
of reward or profit other than the oonsciousneBS of well doing, te aid
their more humble and less fortunate fellow-dtiEens in practiaing
frugality, and laying by in safety what they could spare from thor
earnings.

From that time to this the trustees of these institutions have per-
formed their duties without fee or reward, and the success which baa
thus far attended their labors is a noble and gratifying tribute to
their well-directed energies and well-spent time.

Their management, however, though highly creditable as a wht^,
has not been perfect ; but their miatakea, except those which have
happened occasiont^ly from inexcusable ignorance of statute regula-
tions, have arisen from a mistaken desire on their part to makelarge
dividends to their depositors, always intending, we doubt not, to
regard security in their investments, but sometimes, and not nnfr^
qnently, violating the directions of the statute, in spirit and in letter,
too, in order that they might do better for the depositors than the
so-called narrow policy of the legislature would permit them to do,
by keeping within the bounds of authorized investments.

When the attention of the managers and treaanrers are called to
these violations of law they are often surprised at the fact, not having
intended any transgression, and promise immediate change. On some
points, as is well known, because they have been fully oommented
upon in former reports, a difference of opinion baa existed between
the managers and the commissioners as to the intention of the law.
Happily very iew such cases remain, and that one which has been
regarded asquite importantin principle, viz., the habit of discoontiag

c;oo>!ic

CONDITION OF TH£ BAKK8. 79"

notes and of taking biuiDew paper, is in a fair vay of being wholly
diMontioned.

The bank commissioDera, in their report of December, 1863, aay,
"diaoonnting hy aarings banks hae no legal tanction, and the taking
of intereat in adTanoe on notea aeoured oy mortgage ahoald not be
tolerated." This board have notified the banka which oontinae the
practice that it is in their jadgment ill^al, and that they ahall pro-
ceed againat them according to the etatnte, anieaa it is at once aban-
doned, and they believe that the trosteea are satisfied to relinquiah
the practice. If it shall prove otherwiae, the commissionera will have
the gaeation tested and decided according to law.

The Balem Sarings Bank, which has been named in former reports,
is not free &om illegal inreatments, but the trustees are changing
them, and have promised to continue to do so for snch as are anthonsed,
•8 rapidly as posaible.

The desire to make large dividends, which has been alloded to as an
evil, leads those who have the management of these institutions Bom»*
timee to pay inadequate salaries to their treaaarera.

It ia the dictate of sonnd policy, eapecially in reference to o£Bces of
trust, to pay liberal, not extravagant aalanea. This ia the beat way
to secore talent and to maintain honest;. It often happena that we
find the offices of cashier and treasurer suited in one individual, and
the reason assigned ia to save expense. This we regard as poor
economy. The duties of theae ofGcers are variooa, aometimes ooo-
flioting, Bometimea exposing the incumbents to UQnecessary temptation,
and always dividing attention which were better directed solely to one
olyect. Thie matter was folly explained in the last annual report,
•od wa aubscribe to the views there set ibrth. If it be true that it ia
neceasary, as a matter of economy, to unite theee two offices, it may'
well be qu^tioned whether it ia wise for the legislature to incorporate
BO many of theee institutions located so near to each other. Does tiie
public convenience demand it P Is the aafety ot other inatitutiona put in
jeopardy by too great a multiplication of them ? Would not the pnblio
M better served by fewer inatitutiona, with fairly paid treasurers,
located so as to accommodate the community rather than to aoit
the wishes of individuals or to afford office to those who need it for
sDpport? In Bome caaes the cashiers are men of energy and great
buaineaa tact, who can conveniently and futhfully discharge both
datiea ; but even if thia were true of all, it by no means provea that i^
ia wise to unite the two banks in the hands of one person.

The general management of these institutions is highly oreditalde
to the officers, and renecto credit on the commonwealth. Bome cobh
plftint exists on the part of the treasurers that it ia difficult to secure
the attendance of truateea to make periodical examinationa, and to ob-
tain the necessary attention of those who constitute oommitteea of
investment. Thia should not be. There are men of intelligence in
every community who are willing to do their ahare of work for the
benefit of those leaa bleeeed with meanaand intelligence. Let auch be
elected and let the othera retire.

It ia believed by the commissionera that it was the intention of the
legislature to prohibit ail officers of savings hanks, such aa treaaarera

i,C.ooglc

80 CONDITION OF THE BAKES.

and caflhiers, and tbose trnstees who hare the charge of maVinfr in-
Teatments, from borrowing of the banks with which the;^ are thus
connected or even being aaretieB for other borrowers.

The law is not so constraed, and some treasurers who are not on
the committee of investment feel authorized to borrow, and do borrow
of their respective banks.

It seems to ns that a wise polio7 wonld prohibit treaaarers of
savingB banks, no less than cashiers of discoant hanks, from borrowing
at all, whether members of the rnvestiog committee or not.

There are two topics upon which it is onr duty to speak distinctly
and earnestly. One relates to the loose mode of making dividends in
these institutions. It is a stereotyped habit to make a semi-aoQiial
dividend of an uniform rate, and this sometimes without any vote of
the managers or any examination of the condition and ability of the
savings bank.

In one case which came to our knowledge, the officer, when inter-
rogated on this subject, expressed his surprise by saying " why, we
have agreed to make a semi-annual dividend." In hanks of discount,
aa is well known, the practice is entirely different ; no dividend is
paid by a cashier until after examination by directors, more or leas
thorough, but of some kind, and a dividend voted, such as circum-
stances indicate to be fit and proper. In a savings hank, if a large
amoimt is invested in a bank which fails, or on names which are dis-
credited, the institution becomes measurably crippled, and unless
possessed of a reserved fund, may be unable to pay a dividend without
encroaching on its capital. We would suggest the expediency of the

Sassage of a law by the legislature prohibiting the payment of any
ividend by a eaviogs bank, until after examination made by the
trnstees, or a committee of the corporation, or the committee of inrest-
ment, as may be agreeable to the bank, and that in no case should
the deposits be encroached upon in payment of any ordinary or extra
dividend.

The remaining topic relates to modes of investment. Owing to the
vise jealousy with which the legislature regard these institutions,
the authorized modes of investment are very limited. One abuse has
resulted from this limitation, viz : occasional disregard by some, and
practical evasion by other banks, of existing laws.

The intention of the legislature in authorizing loans on names was
nraply to provide a mode when all othns proved impracticable, while,
in fact, this mode is resorted to, in some instances, nearly to the extreme
Umit cdiowed by law, while nothing or very little is invested in mort-
gwes in the same institution.

In the thirty-sixth chapter of the Revised Statutes, section seventy-
nine, relating to loans on bonds or other personal securities, with at
least two sureties, it is added, " provided that the principal and sureties
«Aaa all be citizens <if tiaa oonunonweaUh, and remdent therein." The
oommissioners find that some of the best conducted institutions are in
the habit of taking manufacturing corporations as principals on theee
notes with two sureties. We do not regard such principal as citizens,
even if incorporated by our own commonwealth, which they are sot

n,g:,.-ndtyC00glc

CO^DITIOK OF THE BANKS. 81

always when thns taken, and hare giren oaropinioa that this practice
ie contrary to the atatate.

Wehavebeeo reqneated by some of the hanks to suggest other modea
of investment to meet the difEcnlty which now exists of iaresting the
money safely, and at the same time in snch ways that a larger amount
Gonld at once be converted into cash if it were desirable to do ho.

We suggest that it would be perfectly safe to allow savings banks
to loan their moneys apon properly authorized State and city loans of
New York State and New York city, and of the cities of Albany aod
Brooklyn, New York, and of the States and cities of New England.

The commissioners have been requested to recommend that sariagi
banks should be compelled by law to make loans in smaller sams thas
it IB their custom to do at present, and that they should divide their
earnings which remain, after the regular semi-annual dividends lutre
been declared, as often as once in three years, instead o( Jive, as now
practiced.

To the first suggestion we reply that it seems to the commissioners
unnecessary to legislate upon the subject. Our observation has taught
us th>it such a recommendation is not called for, inasmuch as the
practice now varies with different communities. In many places the
mortgage and the personal loan are both divided into very small
sums to meet the wants and busineas of the people who live and trade
in their vicinity In other places, the loans are generally in large
amounts, though with exceptions, where there is any particular reason,
for making smaller loans to accommodate those who need snch aid.

The abuse complained of in soma places coatd easily be remedied
by making the facts of such abuse known to members of the investment
committee, who would not willingly afford facilities to moneyed men
for reloaning in snull amounts at extortionate rates.

And as to a division of extra profits once in three years, this most
be left where the law leaves it — to the discretion of the managers of
the several savings banks. In one community a longer, and in another
a shorter term, would be desirable, even for the accomplishment of the
object in view, viz : prudence, and a habit of accumulation. In neither
case, therefore, do we see occasion for any change in the general laws ;
bat we recommend that these subjects be left in the hands of those who
know best the wants of the community where these institutions are
located, and who have the power, by their own by-laws, to make any
change from the present mode.

JOSEPH WHITE,
BAM'L H. WALLEY,
J. FBEDEBIC MABSH,

Bank GommiatioHerB.

Boston, Odober 12, 1868.

H. Ex. Doc. 112 6

n,g:,.ndtyG00glc

82 CONDITION OF THE BANES.

bhode island.

State Auditor's Oftioi,

Frovidenoe, Jtutvary 20, 1859.
Sm: Tour letter of the 6tli instant has been received, I Kare been
waiting, hoping to be able soon to send yoa my aemi-annoal bank
report of November 22, 1858. That report is is press, but when it
.wul be ready for delivery is very uncertain. I will send yoa a oopf
when I receive the report from the printers.

I now forward a Bemi-monthly report of the condition of all tb«
banks of the State on the 3d of January, 1859, which I hope will
answer your pnrpose.

With high respect, I am yoar obedient servant,

WM. E. WATSON,

State Auditor.
Hon. HowiLL CioBB,

Secretary (^ the HVeamry, Wathi«gt(m.

n,g:,.-ndtyG00glc

CONDITION OP THE BANKS.

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86 CONDITION OF TBS BAKKS.

E3.

Iketract of a letter to the Secretary of the Treasury.

Statb Auditor's Office,

Providence, December 4, 1858.
Sm : The system which has heen adopted in this State for the last
year, of reqairing tetni-montkly retaros from all the hanks of their
principal accotmts, works well. It is, in my opinion, the best guard
and secarity to the puhlic against overissnea, and all bad and illegiti-
mate practices in hanking that can be devised. It at the same time
fnrnisnes basineas men reliable information of the amount of local
currency famished hy the banks from one month to another, which is
nsefiil to them as a basis for basiness operations. It would be wise, I
think, for all the States to adopt the system of semi-monthly retarns
in addition to the semi-annnal returns.
With high respect, &c,,

WM. R. WATSON,
State AvdUor.

CONNECTICUT.

Report of the Bank CommUnoners to the Oeneral Assembly, May
session, 1668.

2V> the honorable General Assembly of Connecticut:

The report of the hank commissioners is herewith submitted. Since
our last annual report the country has suffered from a financial revulsion
almost unparalleled in monetary and commercial history.

Commencing with a sudden decline in the price of public securities,
and the failure of one or two large institutions, it extended throughout
the whole financial and commercial interests of the country.

Banks and banking institutions and private credits that had with-
stood the storms of years past were swept away, and pnhlic and
private enterprise tbroughont the land for a time almost paralyzed.

The banks of our State standing as they have among the first for
soundness and stability, having an outstanding circulation at the
beginning of the panic of over $10,000,000, were among the first to
feel the pressure of the times.

A want of confidence in the circulation of banks generallj, and the
di£Sculty of obtaining exchange on New York in remote sections of
the country, caused a sudden contraction of the currency of the banks
of this State, (I<^S^ amounts of which were in nae in other States,)
which proved a source of great temporary embarrassment.

On the lat day of July the circulation of the banks of this State
was (10,411,000 ; on the lat day of January it was redaoed to

X.ocwic

CWNBITION OF THE BASK&. 87

$4,130,265, a contracttoo of over (6,000,000, and most of which took
place betweea the let of AaruBt and the let of Norember. The
ability of the hanks to saetaia tbemaelTes without breakiog down thdr
coBtomera, andor a contractioD so unprecedented, exhibited a degree
of soDndnesB and atahilitj which must place them high in the confi-
dence of the public of this and other States.

With but few exoeptions they continued to redeem their notes in
Boston and Kew York, and to pay specie at their banking-hooses nntil
the general euspensiou of the banks in New York and Boston, which
took place on the 14th of October. On the 15th most of the l^nks of
this State suspended specie payment, but in a majority of oases oon-
tinned their redemption in Boston and New York, thns keeping the
currency of this State from depreciation, and enabling all parts of the
coantry possessing it to go forward in the liquidation of their debt*
withont suffering loss from the currency of Connecticut.

The Legislature at its last session granted special charters for nine
banks of aisconnt, viz: The ^tna Bank, of Harttbrd ; Bank of Kor-
walk, Norwalk ; Cliflon Bank, North Stonington; Granite Bank,
Volnntown ; Merchants and Manufacturers', Hartford ; Mohegau Bank,
Pawcatuck; Old Lyme Bank, Old Lyme; Peq^uot Bank, Morwioh ;
Putnam Bank, Putnam. But four of these banks were organized, viz :
the ^tna, Merchants aad Manufacturers', both of Hartford, the Bank
of Norwatk, and the Qranite Bank, all of which, except the Qranite
Bank, are now transacting business.

Prior to the general suspension, several of the banks had become
embarrassed and unable to meet their liabilities, and from cansei
which, in the opinion of the commissioners, called for the interposition
of the courts. The first case was that of the

Bank of Sart/ord Cotmty. — This institution was visited by the
commissioDeFs ia the month of September, and several days were
devoted to an examination of its affairs, which developed the fact that
with a seriously impaired capital, and with limited cash renources, it
had an outstanding circulation of (440,000 which it was totally unable
to provide for,

A farther examination iuto the affairs of the bank exhibited great
mismanagement on the part of the directors, and duplicity in their
statemenis to the commissioners. Large claims, amounting in one
instance to over (80,000, had been entirely concealed by being placed
in the names ot responsible parties, under an agreement that they
should be held harmless.

In other instances, large amounts of debts, the character of which
the commissioners could know nothing about without investigations
oat of the bank, were represented by the directors to be good and
available, when in fact it was nvident to them that they were either
worthless or nearly so.

With a knowledge themselves that the losses of the hank bad
seriously impaired its capital, the directors, on the Ist of Jnly last,
declared and paid a dividend of four and a half per cent., which was
an increase of one-half of one per cent, over former dividends, and
involved the payment of (30,000 to the stockholders, and at a time,
too, when the Dank was bard pressed to pay its debts to the public.

i,C.ooglc

88 COITDITION OF THE BASKB.

Upon the development of these facts and the entire iaahilitj of the
bftnk to provide for its circulation or depositors, the comtDiBsioners
woceeded to apply to the honorable anperior coart, then in session,
Jndge Park presiding, for an injunction.

A citation was issued on the 21st of September, and a hearing vas
had on the 22d, which resnlted in the granting of the injunction and
the appointment of Messrs Qeorge M. Bartholomew, John Hooker,
and Alfred Gill as receivers ; subsequently Mr. Gill retired, bat it was
Dot deemed necessary to fill the vacancy.

Under the energetic management of Messrs. Bartholomew and
Hooker, the circotation was reduced down to about $100,000 in the
ifaorti period of four months.

During this interval the directors of the bank called a general meet-
ing of its stockholders, and it was voted to ask for a redaction of the
capital stock to a par value. This was done by the commissioners and
directors on the 29th of December under the provisions of the statute
in such case made and provided, by redacing the capital stock of the
bank from (600,1 00 to (300,000. It is believed that this reduction
will fnlly cover the losses and leave the bank with a sound capital of
that amount.

On the 2d of February the bank applied for a dissolution of the
iojanction, and the coart, upon a hearing of the case, being satisfied
that the hank could resume its busineas with an unimpaired capital of
(300,000 and available means for meeting its liabilities, dissolved the
injanction. Afler the reduction of the capital stock, Qeorge M. Bar-
tholomew was elected president. Under his management, it is believed
the bank will become a reliable institution.

The commissioners would respectfully recommend to your honorable
body to approve of their action in reducing the capital stock.

In the course of the liquidation of the currency of this bank, it wu
discovered that registered notes of the bank which by the books
appeared to have been cancelled by the treasury department, and for
which the secaritiee had been surrendered, were still in circulation.
The treasury department of the State showed that tihese notes had been
received and cancelled and it was supposed discharged. Subsequent
events proved them to have been secreted by a former clerk of that
department, W. 6. Carter, in whose hands they were placed by the
bank agents for destruction, and alterwards put in circulation. Abont
(6,069 of these notes have been presented and paid by the bank, and
it is a question of some importance to determine whether the bank
must Buffer this loss occurring from a misdemeanor in the State
department.

The Bank of North America, Seymour. — This institution was the
subject of comment in our last annual report in regard to it« suspended
debt and probable losseSj but it was hoped that under a new manage-
ment its affairs would be improved. But an examination daring the
month of September indicated considerable embarrassment, which
resulted in a suspension of specie payment on the Ist of October.

The bank had made large loans to parties residing out of the State,
on entirely unavailable security, to a large amount, which were dis-

n,g:,.ndtyC00glc

ooMDrrioif OF the banes. 89

honored at mataritjr, leaviDg the iostitntioD withoat means to redeem
its circalatioD.

Ita general management was bad, its directors seldom met, its stu-
pended debt largelj increased, and ita capital stock impaired to a
serious extent.

The immediate liabilities of the bank for circulation, deposits, and
bank balances, amounted to $Y0,759, to meet which they had in specie
and specie funds bat $1,072.

Under these circumstances, the commiesioners applied to the hon-
orable superior coart of New Haven county, then in session, Judge
Batler presiding, for an injunction. A hearing was had on the 8th of
October, a temporary injunction was granted, Messrs. Thomas Banson,
Kaymond French, and P. B. Buckingham were appointed receivers,
and the case adjourned to the ISth of December, when a further
hearing was had before Judge Park, then holding court in New
Haven.

At this hearing Messrs. Kanson and French retired from the board
of receivers, and Charles B. Wooster, esq., was associated with Mr.
Buckingham. The further hearing of the case was tfaen postponed
ant'l such time as it should be called up by the commissiooers.

On the 10th of April the case was called up by the commie-
sionere, the superior court, Judge Botler presiding, being then in
session.

After a full investigatten by the court, it was ascertained that the
receivers had reduced the liabilities of the bank for circulation, deposits,
and balances, down to $48,641, to meet which they had in specie fnnds
and the bills of the bank $32,932.

The court therefore ordered that the receivers should, first, liquidate
the general circulation of the bank; second, pay its depositors; and
third, apply its remaining cash resources to the payment of other
liabilities as (oat as the means could be collected.

The injunction was continued, subject to the further orders of the
honorable superior court, and tbe receivers ordered to make returns of
their doings to each session.

The assets of the bank now remaining amount to about $169,000 ;
how mach of this amount will be collected is very uncertain, The
receivers, Messrs. Buckingham and Wooster, have acted with prompt-
ness and energy in collecting and liquidating claims against the bank,
which will be paid in full.

On the 6th of October the Charter Oak Bank, the Mercantile Bank,
and the Exchange Bank, of Hartford, by a joint agreement, suspended
specie payment.

These banks had not the excuse of sudden losses or exhausted
resources, for each of them had specie in their vaults, and facilities to
a greater or less extent for obtaining redemption fnnds for immediate
use.

The commissioners could discover no other course, under the circnm-
stances, but to ask for an injunction in each case.

They therefore applied to the honorable superior court, then in
session, Judge Park presiding, for such injunctions upon these banks
as would restrain them from discounting paper, increasing their nroa-

90 COHDITION OF THE BASKS.

UtioD, or giving Roy claims Oftaiost them a preference over their bill'
holders, aotil a iiill inveatigatioa of their anaire coald be bad by the
commiBsionere.

The court promptly granted the ininDctions applied for, restraining
them in the manner stated, but, to facilitate the collection of their debts,
allowed them to receive their own notes in payment for debts due to
each, respectively.

These mjonctiona weie continned until the 3d of Deoember, when a
final hearing vab had; and upon its appearing to the satisfaction of
the court, in which the commissioners concurred, that these banks
were each of them able to resume their business, the injunctions were
dissolved.

During the period covered by the injunctions the oommisBioners
made a full and detailed examination of the assets of each of the three
hanks.

The Exchange Bank. — The Exchange Bank had for a series of years
carried a heavy amount ofproteeted paper of a doubtful character, and,
in the opinion of the commissioners, should have ceased the making of
dividends more than two years ago.

The suggestion had been made to them by the commissioners, and
a dividend was passed in January, 1857, but in July a dividend of 4
per cent, was declared and paid.

The commissioners considered this dividend to have been both injudi-
cious and illegal, for it was evident that the payment of it impaired the
capital of the bank.

The bank had suffered embarrassment from the non-payment of large
loans to parties out of the State and to corporations within this State,
and had not improved the condition of these loans at the time the last
dividend was declared,

A further examination into the affairs of this bank revealed a defi-
ciency in its assets amounting to about (25,000, which was explained
by a defalcation in the accounts of the cashier. This development
indicated great carelessness on the part of the officers and directors of
the bank, for the defalcation had extended through several years, and
was confined to the account with their corresponding bank in New
York, and would have been exposed had the monthly statements been
carefully examined and tested with their own books.

The directors have experienced some annoyance from the large num-
ber of directors required by the charter of the bank.

Tne system of accounts in use by this bank was not adapted to so
large a capital, and did not afford the president and directors that ready
information as to its condition and resources which is indiepeoaable in
the management of an extensive banking business.

The liabilities of the bank at the time it was enjoined, for circula-
tion, deposits, and balances, amounted to |250,OI}0, and their specie
and specie funds were reduced down to (12,939.

When they resumed, the liabilities referred to were reduced to
$141,811, and their available funds amounted to |67,000. The bank
has now retired its surplus by cbarging over an equal amount of its
losses, and it is expected that dividends will be withheld until the
earnings luve made good the capital stock. A. G. Hammond, esq.,

X.ocwlc

CONDITIOK OP THE BANKS. 91

formerlj of the Hartford Bauk, has aasnmed the caahierBhip, and his
experience and ability, it ia hoped, will aid to restore the bank once
more to a proper condition.

The Charter Oak Bcmk, — The ezamioatioD of this inatitntion indi-
cated that their embarraasment did not arise from having made fierioQS
losses, bat wis chiefly owing to hariog, in addition to a large circula-
tion, a heavy amount of oatstanding certificates of deposit, large
amoants of which were nnexpectedly called for, ind negligence on the

Eart of the directors in not proTiding means sofficient to meet its lia-
ilities.

The amoant on deposit in this hank, represented by certificates
bearing 6 per cent, interest, exceeded $200,000.

The bank had been in the habit of making large loan t to western
parties, principally for the benefit of the circulation, and protested
paper accamnlated on their bands until it reached the sum of $226,000,
but nearly the whole of it was protected by collaterals in addition to
names which were at the time supposed to be good ; and to this pre-
caution the commissioners attribute the solvency of the bank.

The practice of haying paper in New York, which practice this
institution has persevered in from the beginning, the commissioners
regiuxl as both illegal and dangerous to the hank, and should bo
abandoned.

In Fehrnary last the bank paid a dividend of 3 per oent., although
at the time it had on hand over $200,000 of protested paper, and had
not for several months been able to provide for its circulation or the
payment of depositors.

The MercajUile Bank. — The Mercantile Bank was first embarrassed
in consequence of the fitilare of its correspondent in New York, which
quickly succeeded that of the Ohio Life and Tmst Company.

The bank on the 25th of Angust had an outstanding circulation of
$473,000, hut continued to perform its redemptions and meet its
liabilities until the 8th of October, when, as we have before stated, it
united with the Exchange and Charter Oak Banks, and sospended
payment, and was enjoined.

After a careful examination of the assets of the bank, the oommis-
sioners were satisfied that, although it had a large amount of paper not
immediately available, its ultimate losses would not be so serious as to
impair the capital of the hank beyond what the passing of dividends
for a proper period would restore.

Before the injunction was released the circalation of the bank was
reduced to $95,296, and their redemption funds had reached a sum
BufBcient to justify the commissioners in consenting to a release of the
injunction, which was done as before stated.

The president of the bank, John W. Seymour, subsequently ab-
sconded, but without inflictingany serious loss tothebank, and anew
S resident has been elected. The commissionera are assured that no
ividend will ha declared antil the same can be done in full compliance
with law.

The CoUAetter Bank.— -This bank was the sulgect of some action by
the general assembly at its last annual session ; a spedal committee
having been appointed to investigate some alleged alterations in the

92 00m>ITI0H OF THE BANKS.

charttT, the dirtribtitioa of its capital Btock, and its general manage-
ment] which reaulted in the passage of a reaolntion reqairing the bank
to hare a change of officers and a new board of directors and a re-dis-
tribation of stock to the satisfaction of the bank commissioners. The
commissioQers visited the bank in the month of September, and foand
the reqnired change of officers and directors bad been made, and the
new officers making an effort to change the stock in accordance with
the resoIntioD of the general assembly.

At this visit a fall examination of the entire assets of the bank was
hadj and while the books and the general statements gave no evidence
of improper management, the commissioners were not satisfied that
the institotion was entirely above saapicion.

A week later the bank ceased its redemptions in Boston and was dis-
credited in New York, when the commissioners again visited it and
endeavored to ascertsin its trae position. Its general circalation vas
at that time, as shown by the books of the cashier, abont $14,000, six
thoDsand of which had been redeemed by banks in New York, leaving
but abont $8,000 of its notes in general circulation. The commissioners
were satisfied, from circumstances which had oome to their knowledge,
that this was not a tme state of the bank's liabilities. At this time
the directors were negotiating with B. F. Jones, jr., the former cashier,
for the transfer of stock owned by himself and other members of hia
family for notes which the bank held and had been disoonnted for
them, and applied to the payment of their stock, to the amount of
$66,060. Arrangements were making, in case such negotiations ooald
be effected, to transfer the stock to other parties in Colchester and
its vicinity, thus relieving the bank of the Jones interest, which con-
Btitnted a majority of the stock, and which bad been the objection to
the early organization and aabseqnent progress of the bank. This
was finally accomplished, and to the satisfaction of the stockholders
and directors, and it was thought the bank could make an early trans-
fer of the stock and resume its usual business.

Under these circumstances, with the expectation of an early resamp-
tion of its redemption, the bank was permitted to make the desired
arrangement in transferring the stock, with the understanding that
no more circulation should he issued or other business of banking
transacted until it was accomplished.

In the latter part of November the commissioners became satisfied
that there was more circulation in the hands of the public than had
been legitimately issued, and on the third day of December they made
the institution another visit in order to ascertain if possible whether
such was the ease.

In the course of this examination it was found that the bill
rendered to the bank for the original engraving and printing, which
had been in the bank at the commisHioner's first visit in March, 1857,
was missing, which deepened the suspicion that the circulation of the
bank was not properly represented. The amount of notes printed for
the use of the bank from which the circulation was made up was
orgininally $74,000, as appeared by this bill. A further examination
developed the fact that the former cashier of the bank had caused to
be printed, by a firm of lithographers in Hartford^ &om the plates of

kCoo^Ic

COHDinON OF TIIE BANILfl. 9S

the bank, between the foorth day of Marob and the fourth of August,
bills amoaating to $101,108 — a fact of which the president, directors,
and cashier must have been folly aware, for on the 26th of August
the party who printed the notes addressed a letter to the cashier, in
answer to one from him, giving the date and amount of printing, and
to whom delivered ; and an examination of the sheets of uusigoed
notes, and others in the bank and vault, would have exposed the fact
that there was a deficiency »f notes of about that amount.

The former president of the bank, J. H, Bael, of Marlborough,
was examined, and testified to having signed notes as they were pre-
sented to him without keeping any record of the number of sheets,
the amount or denomination, and that he siened and delivered to
Jones, the former cashier, a large amount of bills in the latter part
of July, and also the latter part of August or the first of September,
after Jones had ceased to be cashier of the bank, and that he (Jones)
took them from his house and promised to deliver them at the hank,
but which, on inquiry, he found had not been done. It was evident
from tbese facts that there was a large amount of notes (over
(100,000) signed and ready for circulation iu the hands of Jones, or
other parties, obtained from the bank by fraud, and that immediate
action was necessary to prevent the public from being defrauded
thereby.

By the laws of our State an act of this kind by an officer of a bank
is made a felony, and, under advice of counsel, a telegraph was sent
to the proper authorities in New York, where Jones then was, to
cause his arrest, and an officer was despatched to the governor of the
State for a requisition. He was accordingly arrested, but before the
requisition of the governor could reach ^ew York, and the proper
papers could be prepared, he was released by the general superin-
tendent of police, who had caused bis arrrest, for the want of a proper
warrant, or authority to detain him in custody.

The commissioners immediately applied to the honorable superior
court for New London county, Judge Seymour presidiufi;, for an in-
junction against the bank and the appointment of receivers on the
18th of December, vfaich was granted, and Edward Y. Thomas, of
Colchester, and H. H. Starkweather, of Norwich, appointed receivers.
Sixty days' time was given for the presentation of claims, which ex-
pired on the first of March last. There was presented an amount of
bills equal to the whole legitimate outstanding circulation, and over
three thousand dollars of the overissue.

There are assets sufficient to pay these claims in full, as well as
all claims due to depositors, but will involve a large loss to stockholders.

The bank is still in the hands of the court, and such orders will
doubtless be made as ^e public interests require.

The Granite Book. — The Granite Bank of Voluutown commenoed
the issue of bills on the 3d day of November last, just six days after
the payment of the first ten per cent, upon the capital stock.

This early emission of hills induced the commissioners to visit
Yoluntown at once, and examine into the condition of the bank.

The investigation exposed one of the most deliberate attempts at
fraud ever known in the State. The first ten per oeat. of the oajatal

94 CONDITION OF THE BANKS.

paid to the commiarionerB named in the charter had been gireu back
by the directors to the parties who furnished it, and the paying in of
the fort; per cent, was a mere pretence, the money Qsed being the
bills of broken banks and worthless checks upon banks out of the
State.

The concern presented no external evidence of banking ; they bad
no fixed place of bosiness, no ranlt or safe, and no books, except a
single memoraBdnm book of stockholders' names, all of whom were
residents of this State, and it was not nntil after some lengthy and
troablesome investigations that the history and trae character of the
concern was arrived at.

It then appeared that parties residing oat of the State were the
real owners and managers of the bank ; that the nominal stockholders,
who were residents principally of Volnntown, had been furnished
means of the kind stated for payment on its stock, and they were en-
tirely under the control and direction of the parties referred to.

It also appeared in evidence before the commissioners that nearly
all of the money used in paying in the first instalment was in bills
of one of the banks of Utica, New York.

The balance of the $50,000 was made up of $25,000 of the bills of
hreken hanks and $15,000 in worthless checks.

On the first visit of the commissioners they were not afforded an
opportunity to inspect the assets of the banks, as the same were pro-
fessedly in a leather valise, which was locked, and the key was in the
hands of the president, who was then in Boston making arrangements
to redeem the currency they were putting onL

The bank pretended to hare issued none of its bills, but the oom-
missioners ascertained that more than $23,000 bad been signed and
could not be prodnced. All or nesrly all of this amount had been
distributed among the outside parties, who were issuing it in New
York by hypothecation and otherwise, to enable them to make a be-
ginning in the issue and the redeeming of currency.

The headquarters of the concern in New York were at a drinking
saloon in Broadway, kept by a firm under the name of Prescott & Co.,
from whose aasooiateii was recovered the $26,000 of worthless bank Ulls
before referred to, which had been removed from the valise between
the visits of the commissioners. They proved to he the bills of the
Merchants' and the Mechanics and Manufacturers' Banks of Memphis,
Tennessee.

The principal parties out of this State were Samuel Wagoner, of
Ohio, and Alexander Miller, of Buffalo, and in this State UMwell C.
Peck, of Hartford. All of these parties, together with the president
of the bank, have been arrested, and are heM on bail for trial, under
proceedings by the Hon. Elisha Carpenter, State attorney for Wind-
ham oonnty, who acted as uosnsel for the commissioners during their
investigations before the oonrt.

The bank was enjoined on the 10th of November, on application of
the commissioners to the honorable superior court, then m session at
Brooklyn, Judge ButU-r presiding, and Amos D. Lockwood was ap*
pointed reoeirer.

The circulation of the bank has been reduced down to aboQt $3,000,

CONDITION OF THE BANES. 95

uid the asBets and unpaid etock, it is snppoBed, will atoplj provide
for the lame, and protect the public from loss.

The Jjitchfield Bank of Litchfield, the charter of which the legisla-
tnre amended last year ao as to enable them to commence buBiaess
when (100,000 of capital was sabflcribed and t&0)000 paid in, wag
organized by the oommissionerB named in the charter for that pnrpose
in Aagost last, at which time the first 10 per cent , amonnting to
|10,000, was paid in.

The stock of this hank was distribated to seventeen persona, all of
whom were residents of this State with the exception of one, who
resided in Philadelphia.

Five persons sabsoribed for ftlO,000 each ; one person subscribed for
|T,000; eight persons Babacnbed for |5,000 each, and three persons
sabecribed for (1,000 each, and all of tjie sobBcribera, with one excep-
tion, paid their first 10 per cent, in the bills of one of the hanks in
this State.

On the 4th of November the bank oommeoced hnainess professedly
with B paid in capital of $60,000, bat it ie very evident, from an ex-
amination of the Dooke of the bank, that no such sam of money was
paid in, and that notes were diaoonoted for the parties above reterrtd
to, and treated aa capital.

The paper diecoanted was in fifty-five notea, and amounted to
147,963 76.

The fnrther progress of the hank was checked by the commissionera,
and its management was changed by the election of another president,
since which time the bank has nndergoue a considerable change for
the better, and ie now represented by its officers to be possessed of a
paid in cash capital of $50,000.

Notwithstanding the very meritorioiu condact of the banks gen-
ially in the Btate during the late panic, the commissionera have
many aerioos oases of violation of law to report.

Heretofore this haa been done in a general manner, owing to pre-
tences and claims set op by many of the banks that they differed with
the commissioners in the construction of the laws, and some of the
laws they had overlooked.

In order to do away with this difficulty, the commissioners made a
careful compilation of the hanking laws, and forwarded to each hank
in the State a printed copy. This wae done as early aa possible after
the rising of the last legislatare, and was intended to leave the hanks
without excuse if they persisted in their illegal practices.

One of the most fif^rant cases is that of the Qainehaug Bank of
Norwich. They have uniformly disregarded the law relating to the
per cent, of speoie they shall keep in their vaults, and generally the
deficiency haa been not less than 33 per cent.

They have also violated the law relating to the amount of loans to
one individoal or firm ; also, the legal limit for loans out of the State.
In December last the loans out of the Btate were no*^ less than (200,000,
and their foreign and domeatio paper under protest amounted to over
(226,000.

To one party out of the Btate their loans amounted to over (70,000.
All or nearly all of this amount was on paper discounted at 10 and

Xiocwic

96 CONDITION OF THE BAHKS.

11 per ceot. per aonnm. The notes in some caseii had two years to
run, with interest of 10 per cent per anDum stipulated ia the ootes
themselres, payable semi-aDnually. To another firm out of the State
tlit.ir loans amounted to over $60,000 on paper which was npon shorter
time, but not at so large a rate of interest. To a railroad company,
also oat of the State, their loans exceeded (40,000, also at rates ex-
ceeding six per cent. Nearly all of tbese partiea were unable to pay
their notes at maturity ; consequently the bank was obliged to suspend
all its redemptions, and its currency depreciated so far as to induce
the bank itself to refuse it in payment of notes falling due at its own
counter in cases where the paper was not owned by the bank itself.

This bank claimed to have surplus earnings of orer (40,000, bat, in
the opinion of tho commissioners, their losses will retire the whole
amount, and several years will be required to restore the bank to a
healthy state, with a full available capital.

The Shetucket Bank also, of Norwich, with a capital of (100,000,
bad loans out of the State amoanting to over (70,000, of which (60,000
were to a single railroad company, and all at rates of Irom 7 to 11 per
cent interest per aDnnm.

The Norwich Bank has also discounted paper at from 7 to 12 per
cent, per annum. The same is also true of the Merchants' Bank of
Norwich, and nearly half their capital has been employed in loans to
railroad corporations at illegal rates of interest.

The Unoas Bank of Norwich has neglected the law in relation to
amount of loans oat of the State, and baa dealt in railroad paper at
the rate of 10 per cent, per annum.

The Iron Bank of Falls Tillage exceeded in one instance the legal
limit of loans to one party or Brm, the same being to a railroad corpo-
ration oat of this State.

The Norfolk Bank has violated the law in two instances of loans
to directors, and in one instance the amount so loaned exceeded the
amoant prescribed by their charter to any one person.

The Winsted Bank has also exceeded the limits of liabilities allowed
to one director.

The Saiigatuck Bank, Westport, has almost aniformly been Bhort of
apede aboat (4,000.

The Farmers' Bank of Bridgeport has violated the law of loans to
directors in one instance, and has made a dividend, which, in onr
opinion, it had not the legal ability to do, if its losses had been first
oharged off.

The Danbury Bank has exceeded the legal limits of loans oat of the
State, and in one instance the amount to be loaned to one party. They
have also discounted or bought paper in large amounts, at rates from
nine to fifteen per cent, per annum, of which nearly (100,000 was in
the bank at one time in September.

The Pahqnioqae Bank, Danbary, was foand short of specie at times,
ranging from (2,000 to (12,000. They had in several instances
raoeeded the legal limits of loans to one party, but their business iB
confined almost entirely to parties in this State.

The Hanufactarera' Bans, of Birmingham, has in one instance

n,g:,.ndtyC00glc

CONDinON OF THE BANES. 97

exceeded the law in discoaating for one of its directors, and has boaght
some paper at rates of from e^bt to thirteen per cent, per annum.

The Windham Bank, of Windham, haa purchased paper at rates
irom eight to thirteen per cent.

The Waterbury Bank has loaned to one director ezceediog the legal
limits.

The Middlesex Conaty Bank, of Middletown, does a large business in
the pnrchase of paper in New York at rates varying from seven to nine
per cent., placing it on its books in the names of persons who do
not endorse it or have any interest in it, and thus make it home
P»per-

The Middletown Bank has also purchased paper at more than the
legal rates, of bankers and brokers in this State, to a large amount,
entering it on their books in the names of parties who have no interest
in it, and who did not endorse it.

The State Bank, of Hartford, had a loan to one party in this State
which had been aoonmnlating for some time, which far ezoeeded the
legal limits ; they hare also renewed western paper at rates of from
seven to ten per cent.

The Merchants and Manufacturers' Bank of Hartford has not
renrded the law in relation to loans to directors.

The Home Bank, of West Meriden, has violated the law relating to
loans to directors in one instance. The bank has had large dealings
with brokers in this State, from whom they have bought paper at rates
from seven to ten per cent.

The Meriden Bank, of Meriden, has purchased paper of brokers in
New York at the rate of ten f er cent. They have also violated the
law in one instance, relating to the amount to be loaned to one party
or firm.

The Clinton Bank, of Clinton, has violated the law limiting loans
to directors, in the case of four of its directors.

The City Bank, of Bridgeport, has violated the law relating to
specie, by not keeping in their vault the amount required by law.
They profess to have ^,000 in the venU of another bank, but it proved
to be a certificate for specie for which they had paid four per cent, per
annnm for sereral years. The bank was allowed to suspend specie
payments for want of means to redeem its circulation at the counter.

The Whaling Bank, of Kew London, has pnrchased paper at rates
of from seven to twelve per dCnt. per annum.

The Bank of Commerce, of New London, has violated the same law
in the same manner ; also, the Mew London Bank, of New London,

The Mystic Biver Bank has violated the law regarding the amount
of loans ont of the State, and the Pawcatuck Bank has discounted for
two directors beyond the legal limits.

The Jewett City Bank, Jewett City, with a capital of bnt |62,l'tO,
is doing but little business at home ; most of the paper disooanted is
furnished by non-residents, who do not endorse it. The bank has also
loans ont of the State beyond the legal limits, and has loans to one
director beyond the legal amount. This bank has no surplus ; its
losaes on suspended paper will moke it necessary for them to defer the
making of dividends until the bank has made up its lossea. In tha
H, Ex. Doc 112 T , X.OOglc

98 .COKDITIOK OF THE BANES.

bank was fonnd a note of |3,3S3, which was diBcoanted in DeOHnber,
1666, having then eight years to ran. The discount was taken out
for the whole time, and carried to the credit of earnings, and was used
to pay the next diridflid.

The Stafford Bank, Stafford Springs, has pnrchased paper at rates
of from seven to twelve per cent, of brokers in New York.

The condition of the New Haven County Bank has not materially
improved since it was first; reported to the legislatare in 1856.

Some portion of the debts dne the bank have been adjusted by taking
therefor a direct interest in the real estate located in Brooklyn, New
York. This arrangement covered $137,135 of the Dwight debt, and
to protect this interMt the bank is obliged to pay its proportion of
the interest upon the first mortgages npon the property ; also, its
share of taxes and assessments for improvements. These items increase
rapidly, and last year amounted to |16,000, which included, however,
a small payment to the first mortgagees.

The total assets of the bank which pay no interest amount to about
1400,000.

The directors have been carefnl, at all times, to keep at command
available means sufficient to protect the bill-holders and depositors.
But it is not in harmony with the uniform policy of the State to allow
a bank so greatly depreciated to represent so large a capital stock! la
the opinion of the commisBiouers, the capital of the oank should be
reduced to a proper level, or its affairs placed in liquidation.

The Phoenix Bank of Hartford has a large suspended debt growing
out of loans made to H. Dwight, jr., and the Chicago and Mississippi
railroad, part of which is now represented by property in Brooklyn,
New York, amountine to $208,491, and other suspended paper amount-
ing to $188,733, making a total of $347,224, from which must result
a brge loss, and which, in theopinion'o'^' the commiaeioners, rendered
the dividend made by the bank in March last one of doubtful
expediency, if not entirely illegal.

The City Bank of New Haven, with a surplus of |T2,759, has also
an interest in the Brooklyn property, amounting to $60,742, aod they
have also suspended debts and bonds amounting to $130,258, making
a total of $191,000 of assets now unavailable.

Their losses under these assets, in the opinion of the commissioners,
will more than retire their surplus and render it neoessary to defer the
making of dividends for a limited time, in order to restore the bank
to its full capital. This bank declared a dividend of three per cent.
in January, which we do not consider it had the ability legally to do.

The Herobants' Bank of New Haven, with a surplus of $43,000, baa
an interest in the same property in Brooklyn, amounting to $70,433.
They have also sus^nded debts against H. Uwight, jr., and the
Chicago and Mississippi railroad, amounting to $100,000, making a
total of $170,000 in uureliable assets.

The surplus of this bank should be retired and dividends suspended
until their capital is restored. This bank also made a dividend of
three per cent, in Jannary, without, in our opinion, the legal ability
to do so.

The Bockrille Bank, of Bockville, has violated the law relating to

CONDITION OF THE BANBS. 99

tlie rate of interest, bj porchasing paper in Hartford at the rate of
ten per cent, per Bonam. They also made an arraneemeiit with
partiee in this atate to farnieh cnrrenof for a bank in Illinois ; this
arrangement haa since been changed to loans at tea per cent, per
annum. They hare also pnrchased paper of brokers in New York at
the rate often per cent, per annum.

The Connecti0Dt River Banking Company, of Hartford, haa also
parcfaaeed paper of brokers ont of the State at illegal rates, and their
losses ander the same hare much reduced their surplus.

The commissioners have devoted a much larger portion of time than
nsnal in the discharKe of their official dnties dBring the past year,
and have endeavored to faithfully and plainly set forth all the facts
which have an important hearing upon the banks and the banking
laws of the State.

The strict observance of the statutes by the banks may seem to them
to be a matter of trifling consequence, and they may have been
encouraged in their illegal practices by the omission of past legisla-
tures and their committees to act npon the reports of the bank com*
missioners.

In the opinion of the commissioners, the present is a favorable tJme
for modifying some of the banking laws of the dtate, and therefore
rCBpeotfnlly recommend —

1 . A reduction of the oircolation of the hanks to fifty or seventy-five
per cent, npon the capital actually paid in.

2. The requirement of a specific amount of specie, based npon capital,
and not upon circulation.

3. A reduction of the per ceutage of disconnts out of the State to
twenty-five per cent, of the capital of the bank.

4. To limit the amount of interest to be paid on deposits to four per
cent.

The oommissioners are of the opinion that to the very large per
centage now allowed the hanks for circulation may be tr^ed a
majontyof all the serious losses they have sustained, and limiting the
amount in the manner proposed will tend greatly to restrain them from
excessive dealings with parties out of the State.

Under the present law the specie lines of the banks are very irreg-
ular, and the fluctuations are not as carefully observed as they shonld
be; but fix the amount to a given per centage upon capital, and not
only the banks, hut the pnblic, will always know what amount is at
all times required. No per cent, of specie is now required by law for
deposits; and should a hank abandon the nse of its own bills, there is
no law requiring them to keep specie at all.

The present law relating to loans out of the State is based upon
capital, deposits, and circulation. There are many objections to the
loaning of money ont of the State on the basis of eirculation and
deposits, for both are demand liabilities, and cannot be said to form a
part of the capital of a bank. The present limit is deemed to be too
large, under ordinary circumstances, for the best interests of the
banks.

The practice of receiving deposits and issuing therefor certificates
payable on demand and drawing interest at the rate of six per cent.

100 CONDITION OF THE BANKS.

per annam is regarded hj the commiBsioDers m a virtual creation tif
a preferred stock, vhich gives the holder a prererecce over the general
shareholders, and is liable to be called for when the bank is least able
to pajr it.

A modification of the laws in the manner proposed, it is believed,
woald greatly tend to equalize and secnre a greater Doifbrmity in the
basineas of the banks, diminish their losses, and enable them to pay
more uniform dividends to their stockholders.

Many of the banks aie in the habit of carrying forward in their
acoonnts large amounts as snrplos earnings, while at the same time
they have eostained large losses on suspended debts.

The practice is deceptive, and misleads the pablic as well as stock-
holders as to the true condition of the bank and the valae of its
stock.

There are varieas penalties attached to the violations of law; bnt as
the statates fail to make it the duty of any particular person or ofiBcer
to see to their proper enforcement, they remain a dead letter, and no
donht will 80 continue until the defect is supplied.

In conclusion, the commissioners cannot refrain ^m bearing testi-
mony to the general soundness and prosperity of the banks, and to the
noble efforts made by them dnring a season of great embarrassment to
sustain themselves and the community in which they are located.

BATINQB BANKS.

There are twenty-nine of these institutions in the State, with an ag-
gregate amount of deposits of |12,662,694— an increase of (400,000 of
depoaitfl since our last report.

The comDiissioners have made a careful examination of these insti-
tations during the past year, and find them managed generally with
oare and pruoenoe ; bnt we feel the necessity of again calling the atten-
tion of the legislature to a subject alluded to in onr last annual report,
viz : the large amount of deposits invested in bonds and stocks of rail-
road corporations, and also in baak stocks.

The amount invested in bank stocks is $903,519, and in railroad
bonds and stocks |1, 204, 196— making a total of (2,107,715, or nearly
one-quarter of their entire deposits.

The commissioners consider this amount altogether too large to be
invested in securities as precarious and fiuctuating in value as railroad
stocks and bonds and bank stocks, and are of the opinion that some
action on the subject is necessary for the future safety of their depositors.

There is in these institutions a growing inc'ination to seek for more
than six per cent, interest per annum for their loans, which has induced
them in many instances to disregard the law under which they are
chartered.

The commissioners have called the attention of the legislature to this
fact before, and now find the same practice prevailing during the last
year to a greater extent. We therefore deem it our duty to call par-

OOKDinOH OP THE BANES. 101

ticnlar attentioD to those ioatitiit^ons which are in Tiolation of law in
this respect.

The following isTiiigB banks have directly Tiolated the law ia re-
peated instances, in talcing rates of interest for their loans above six
per cent, perannnm ; sometimes by the porchase of paper from brokers
m this State and in New York ; sometimes by taking notes dated in
other States where the legal rate of interest is higher, and sometimes
by making the extra charge at their own ooQDtera :

The Bridgeport Sariogs Bank.
The Baobury Savings Bank.
The New London Savings Bank.
The Middletown Savings Bank.
The Derby Savings Bank.
The Waterbury Ntvings Bank.
The Meriden Savings Bank.
The Newtown Savings Bank.
The Groton Savings Bank.
The Farmington Savings Bank.

The Bridgeport Savings Bank has a loan to one party residing in
New York of $20,000 on personal security at 1 per cent., and other
loans on real estate at from 7 to 10 per rent. They also hold a large
amount of certificates of bank stock in New York as collateral seoority
for loans which have not been transferred ; we find it to be their
eeneral practice and a)nBider it dangeronSj and therefore recommend
uiat savings banks, in all cases where bank or other stocks are held
as collateral secnrity, shall have the same transferred to the bank to
which they are pledged.

The Middletown Savings Bank has been in the habit of making large
loans at their office for the benefit of brokers and bankers in this State
at rates of interest of from 7 to 10 per cent, per annum.

Their negotiations with one concern in this State amoanted in
twelve montns to over (100,000 at these rates. Of this kind of paper
thus discounted in violation of law, $22,491 was under protest on the
17th of February, many of the makers of the notes having failed, and
the bank having neglected to take the endorsement of the firm for
whose benefit the notes were originally disconnted.

The investments in this institution in railroad bonds and stocks, at
their par valae, amount to $319,275 ; they cost the bank $213,526 ;
many of them are paying no interest and are depreciated in valae,
below even the large margin allowed by the bank.

Tho bank had on deposit $107,000 in the hands of one party in New
York, drawing 6 per cent, interest. This amount, in the opinion of
the commissioners, is altogether too large to be placed out of the State
in the hands of any one party without the most adequate and imme*
diately available security, independent of the responsibility of the
party holding the money, which in the present instance was not the
case.

The Canbnry Savings Bank has no loans on real estate above 6 per
cent, interest, bat all of its personal loans, amonnting in October ImI
to $66,686, were made at 7, 8, 9, and 10 per cent, per annum. ,

102 COHDinOH OF THE BANKS.

The Tolland SaTings Bank has diareearded the law relative to tnu-
teee, one of ita directors being on a bond with other parties for a loan
of (20,000 made to a company of which he is a member.

The Meriden SaTings Bank baa made ita loans strictly at 6 per
cent, per anDnm, but charged its bomMeera 1 per oeiU. per annum to
paympeTitea and SlcUe taaxa.

The riolatione in the other BaviDgs banks named before are the ordi-
nary casea of discounting paper at from 7 to 9 per cent, per aDoam.

The examination of the savings banks expose the fact that in almost
every instance of suspended and doubtfnl debts it baa grown ont of
transactions where the rate of interest charged was above 6 per cent.

The excuaesmade by the aavingabanka for theee violations oflaw are,
first, that the paper is not diaconnted bnt is bonght ; second, that
when loans are made out of the State they have a legal right to charge
the rates of interest prevailing in the States where the loan ie made.

The commissioners in former reports have called the attention of the
general assembly to this sabject, and now respectfiilly ask that snch
action may be had as will leave no obsonrity to either the banks or the
commissioners in relation to the rates of interest and the method of
taking the same.

8ATIH0S BANES AND BCILDING ASSOCIATIONS.

There are now forty-two institutions in this State, organized ander
the law to establish saving banks and building aasooiations. Thirty-
six of them are doing business according to the law under which they
are organized, and there are six which are not — all of which were
Blinded to in a former report.

These institntions combined have an aggreguted amount of deposit
of 42,390,f^3 30, and stock paid in, including dividends, of
|2,391,302 10, making a total liability of $4,781,945 40; of which
f2,644,208 is loaned on personal security, and the balance on real
estate, and invested in stocks and bonds.

Whole number of stockholders indebted for loans .... 2,450
Whole number of stockholders 6,156

One of these institntions, the New Haven Savings Bank and Build-
ing Association, has declared dividends on its first series of stocks,
until, with the regular monthly payments, it represented fall shares
of $200 each, which was paid on in Ml to the stockholders in March,
1867.

They received about 60 per cent, interest on the amount of moacy
thus paid in for six yeara and eleven months ; for instance, a person
who had five shares, which, when full, represented (1,000, had paid in
in instalments (415, leaving a profit to him of $585.

The series referred to was paid off without deducting any per centage
for possible or probable losses, by which serious injustice was done to
holders of the after series of stock.

The second series is now nearly full, and the dividends have been
credited regularly to the stock without retiring losses, or making any
provision for them.

The association now holds real estate amoui^ting tQ;j;Fver $60,000,

OOHDinON OF THE BASKB. lOS

located in variona parts of the oonoty of New Haren, which haa fallen
into their hands either by surrender or foreclosure. On thta amonnt
a serioaa loss mnat be sustained, and they ebould be restrained from
paying up any ftirther series of stock until their losses are provided

In the annual report of the commissioners to the general assembly
in 1866, six of the institutions organized under this law were declared
not to be in accordance with law, and they were pointed out ; bat as
that honorable body allowed them to continue their business, the
cominiflsioners omitted to report them the ensuinx year.

Since that time one of these coucems, the Haritbrd Connty Savinss
Association, has met with a large loss throueh the de&lcation of their
treasurer, which yill fall heavy upon their depositors.

The institution originally started with a nominal capital of (100,000,
with ten per cent, paid in in cash, the balance in not«s of the
stockholders.

The directors elected were men of the highest standing and Tesponsi-
bility, and the institution was published in the newsp^rs of Hartford
as a regular savings bank, under the title of the Hartford ConnW
SavineB Association, with the names of all its dtrectoni attached,
soliciting deposits and ofiering to pay 6 per cent, per annum.

At the first examination made of this institation by a part of the
present board of commissioners, it was foand that with but (10,000
originally paid in they had succeeded in obtaining deposits to the
amount of (390,000, and had endorsed npon the stocK notes and
credited to the capital stock (37,500 of earnings in less than four
years.

These facts were alluded to io the report for 1866, and it was also
stated that their loans were not made according to law.

On the thirtieth day of January, 1868, John W. Seymour, the
treasurer, absconded, being a large defaulter to the institution.

Immediately after the commissioners visited the bank and made an
examination of its remaining assets, and found evidence of a deficit
of nearly (100,000, but facts transpired to show that it was totally
impossible to asoertaiu correctly the whole amount, for in many
instances the money had been paid by borrowers, and a reoeipt taken
by them from Seymour, which had never been endorsed on tne notes
to which they applied, or entered upon the books of the association.

In some instances the whole face of the note had been paid, and on
some pretence or other kept in the list of bills receivable as a part <tf
the Bwets of the bank.

That there was gross carelessness on the part of the managers, di-
rectors, and officers of the association, is evident from many facte
connected with the defalcation, one of which will show the abeidnte
control which the treasurer swayed over the management. The insti-
tution, by its own books, owned stock in the Mercantile Bank of Hart-
f«d amounting to (11,600. This had all been sold by Seymour,
except (600, and transferred to other parties some time previous to
the dedication beooming known, and without the knowledge of the
president or directors.

It ia almost impoasible to form anything tike a oorreot opinion as

:, Google

104 cotroinmi of tub banes.

to the ultimate losses to the depositors ; bnt jadging from the deficiencf
already discoTered, amoantiQg to nearly $160,000, and the doabtfhl
character of large amoonta of ita bills reoeivahle, and the ezpeaseB of
liquidation, it is doabtful, in the opinion of the commiasiooers, if the
asBets of the associatioa will pay over fifty or sixty cents on the doUar
to depositors.

The total amonnt of deposits on the day Seymonr absconded, in-
cluding interest occraed, amounted, according to the books, to $401 ,500.

The comniissioners in pursuing their investigations foand lar^e
loans to some of the directors and officers, and considered it beat, in
view of all the facts in ihe case, and the beat interests of the public,
that the association should be eujoined, and placed within the power
of the courts, and its afiEairs be liquidated by receivers to be appointed
for that parpose.

Accordingly the commissioners took steps to procure an injunction,
but it waa decided by eminent couuael and by the judge of the supe-
rior court, then in session at Hartford, that the statute in relation to
these associations, while it made it the duty of the hank commis-
sioners to visit them, did not give them the power to apply for an
injunction as in the case of baoKs, uor was there any provision made
for their being enjoined in case of danger to the public.

Under these circumstances the commissioners had nothing to do,
after having made a thorough examination of its affaira, but to leave
it in the handa of the directors, who shortly after made an assign-
ment of its effecta.

This institution had connected wi'h it the names of twenty-seven
gentlemen of personal worth and inflnenoe. Under these ciroum-
atanoes the association found no difficulty in obtaining deposits, and
in the short space of seven years accumulated nearly bait a million
of dollars in small sums from the community in which it was located.

The law relating to these inatitutions requires that three-quarters
of their loans shall be made on real estate to stockholders. This
inatitotion had hot a small part of its loans ($46,000) apon real
estate.

The law further saya, no loan shall be made to persona not membera
of the association above the legal rates of interest.

This association had paid no sort of attention to this provision,
making ita loans to railroad corporationa ont of the State, discounting
paper in the streets, or in any other manner to enable them to get a
targe rate for money, nor in fact can it be seen that the association
was in accordance with law in any one particular, save having the
necessary number of stockholders.

In its general management it was characterised not only by defiance
of law, but by carelessness and a general ignorance of its affiura by
those whose names were associated as directers, some of whom were
largely indebted for loans.

It is for the general assembly to determine whether, under theae
circnmstances, a number of individoala, however responsible and re-
qwctable, can establish themselves under the atatatee of Connecticat,
and, by calling themselves a savings bank, obtain large depoeita and
oondoot their business in otter defiance of the laws ander which they

n,g:,.,dtyC00glc

<»HDITION OF THS BANKS. 105

ptxtfeu to be created, and hj their general carelesBDess and disregard
of the interests of the depositors, suffer large losses to occar, and not
be held responsible in their private capacity to the pnblic, who have
intnuted them with the custody of their savings and earnings, looking
to the high character and position of those whose names are placed as
managers of the institution as a guaranty that their funds will be kept
sacred and the affairs of the iustitutioD managed according to law.

There are in this State fire other institations doing baeiness nnder
the act to establish building associations, which are not in accordance
with law :

The People's Savings Bank of Hartford,

The Rockville Savinzs Bank, Bockville.

The Connecticot Bank, Hartford.

The New London County Bank, Hew London.

The Farmers & Mechanics' Bank, Norwich.

And the City Savings Bank, Kew Haven.

The People's Savings Bank of Hartford has deposits amounting to
$162,000, out of which the directors loaned to themselves (108,230 on
personal security. The loans on real estate did notexoeed (5,000, and
thoee were not on record.

The capital stock amounted to (125,000, on which had been paid
10 per cent (12,500

To which waaaddedadiTidendof 10 per cent 12,600

Making 25,000

And leaving a balance in stock notes of. 100,000

The Farmers and Mechanics' SaTings Bank of Norwich has a
capital of (32,000, most of which is mode up of earnings, but their
nominal capital is (100,000.

Their deposits amount to (222,626, of which but (40,168 61 is
loaned on real estate, and but (26,500 of these mortgages are on record.

There is invested in western town and city bonds (68,000; loons to
railroad corporations out of the State, (66,600; real estate in Ohio,
(46,723, and loans on personal secarity for the balance.

l^e New London Oonnty Savings Bank has a capital of (26,500,
and deposits amounting to (82,377 43.

They have no loans mode on real estate; nearly the whole of their
assets ore in loans to railroad corporations out of the State, the amount
■0 loaned being (86,000, and all at 12 per cent, per annum.

The balance of their assets are either in loans out of the State or in-
vested in bank stocks, thus showing that not one dollar has been loaned
to their own community.

The Connecticut Savings Bank, Hartford, is of a similar character,
having a capital of (100,000, on which there hae been paid (10,000,
Their deposits amount to (92,875.

The loans on real estate amounted to bat (23,362 ; on personal
■ecority the amount was (61,944. A portion of it was suspended in
February lost.

The City Savings Bank of New Haven is a similar infftitntion in its

106 COHDITION OF THE BANKS.

orgs&izatioD, fasrinft a nominal capital of $100,000, npon whtcli there
has been paid $20,000.

Their depoaite amonnt to $ 148,703 ; of vhioh there is loaned on real
estate $41,192 ; on atocks and bonds, $13,022 ; on personal secnrity,
$78,779.

Their loans to persons who are not stockholders are made at 6 per
cent, per annum.

These institations and their peculiar modes of doing buaineaa, are
one of the evils growing oat of the building association act of 1860,
which legalized the taking of any amoont of interest in the shape of a
bonus, and which has tended to distract the minds of the whole com-
munity on the snbject of interest, and giving a fictitions ralne to
money. It has also created a strife for larger rates of diridends, which
in many instances has proved disastrous.

These institutions should have been wound np by the general as-
sembly two years ago, when reported by the commissioners as illegally
organized and doing bosiness oootrary to law ; but it was hoped that
some modification of the law itself, and the publicity that had been
given to the subject as connected with their management, wonld lead
them either to conform to the law of the State or wmd np their a&irs.

It is now for the general assembly to take snch action as in their
wisdom shall best preserve the integrity of the laws of the State and
protect the interests involved.

The thirty-six regular boilding asBOciationa, with some unimportant
exceptions, are acting in conformity to law, and whatever may be said
of the lauj Had/, or the policj of engrafting such a system of banking
npon this State, it is evident that any l^^Iation which destroys them
hastily wonld he most disastroos to the borrowers, who are looking
to the filling np of the stock by a division of the profits of the institn-
tiooB as the only return for an extravagant rate of interest paid in the
form of a bonus.

All of which is respeotfuUy submitted.

JAMES B. DUNHAM,
BENJAMIN NOTES,
aEOBOE H. NOBLE,
£(kA Oonmitwmen,

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CONDITION or TIIE BANKS.

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CONDITION OF THE BAKES.

Annual report of (he mperiniendeni of tha banldng department of the
Bate of New Tori.

Btatb of New Yore, Bank DspASTHsirr,

Albany, DecenAer 31, 1858.
The anperiDtetident of the banking department, in accordance with
the provisions of section 11 of the " Act to oreaDize a bank depart*
ment," has the honor to enbrnit for the consideration of the l^isla-
tnre the following

The speedy retnrn to specie payments by the banks of this State,
afler their enspension in October, 1867, time has shown, was a sub-
stantial and permanent resumption of their corporate obligations.

It exhibits a solidity of capital on the part of the commercial as
well as the producing community which cannot but be gratifying to
every observant citizen of our State. It also fornishes evidence of the
financial ability with which these institutions are managed, that will
add strength to the conSdenoe of the people of the State in our
present banking system.

The suspension and reeumption of specie payments by the banks of
this State in 1867, with the surrounding droumstanoes, have simply
brought out into Iwld relief the perfection of our free bank system in
its connexion with onr currency.

The retirement of $7,920,000 of the circulation of the interior banks
accumulated in the city of New York within the time specified by
the resolution of the clearing house of the 7tb November, 1857, (with
an occasional exception for an insignificant amount einoe paid,)
clearly shows that tney were not only strong in oapital, but that their
ability to liquidate that debt was only equalled by their desire to enter
upon a course of policy that most produce a speedy resumption of
specie payments, dearly foreshadowed by the passes of the resolu-
tion referred to.

The passage of that resolution was the incipient step towards a
resumption, and the willingness with which the interior banks met
the obligations imposed by it reflects great credit upon the city and
country institutions. The entire $7,920,000 was, by the terms of the
resolution, to be paid in monthly instalments of twenty per cent.,
with interest at six per cent., commencing on the Ist January, 1868.
This would retire the entire amonnt by Ist of May. They were also
to redeem their outstanding onrrency on the usual terms after the 20th
of November.

The pressure preceding the suspension had returned to the banks
during the quarter ending October 1, 1857, a million and a quarter
of dollars of their best securities held in this office, of which at least s
million was withdrawn by those located in the interior of the State.

How vigorously the interior banks went into the movement of the

tioiwlc

CONDITION OF THE BASES. Ill

deuing hooM of the 7th of November is Bhovn hj the &ct that
between the let of October and the Ist of April |4,326,000 of seca-
ritieB were retired from the hank departmeot ', and the gnperinteadeot
believes that nearly $4,000,000 of that amonnt was aaed hj the
interior bankt to restore the equilihrinm between those of the city
of New Tork and themaelvee, the lose of which was occasioned by the
holding of conntry money in that city. As an evidence of the cor-
rectnen of the belief ezpreued above, he would say that the dis-
ooauted debt of the banks located out of that city was reduced only
$36,326 from December 26, 1867, to March 13, 1868.

This eqmiliiiog acooants between the city and country banks was
the work of only five months, in addition to meeting their ordinary
and daily liabilities; and the entire debt of (7,920,000 was paid,
netting 6| per oeat, per annum interest apon the investment of the
city banks m country currency.

The whole traosoction between the interior banks and those of the
<nty of New Tork in relation to the currency accumulated in that city
after the disasters of the fall of 186? was highly creditable to both,
Ukd cannot bat add greatly to their confidence in each others capacity
and soundness hereafter.

The present condition and amount of securities held in this depart-
ment for the redemption of circulating notes, and the sum total issued
Xn the same, are shown in table No. 1 attached to this report. It
' presents the fact that but five associations have been formed
daring the past fiscal year for the purpose of pursuing the business
of banking, and one of these is the continuation of an incorporated
bank whose charter expired January 1, lb68.

The actual increase of capital daring the year by the formation of
new institutions iB|520,000; the Bank of roughkeepsie raising its
incorporated capital from $100,000 to $200,000, when it became a
free bank. Still more marked is the fact that no individual banker
has oommenoed basioees during the past year. In connexion with the
oonsaal dearth of new banks and the small amount of capital employed
by them, comes the astonishing fact that while the actual increase of
capital by the formation of new banks has been only $620,000, there
hu been added to the banking capital of the State the sum of
$2,488,891, OS shown by their respective quarterly reports of September
26, 1867, and September 26, 1868. This addition to the ^gegate
capital of the banks has been made during a period in which some
fourteen banks have actually ceased doing business, and whose afiairs
are either being olmed ap by their officers, or by receivers appointed
1^ the ooorts.

Ooe of the oaoses which tended to produce the suspension of 1867,
the superintendent believes, and so stated in his report of that year,
was the mnltiplidty of banks of small capitals. Still he believes the
bank capital of the State smaller than is required by the usual bosiness
of oar citizens. Their relief cannot be looked for in the multiplication
of small banks, but in raising the capitals of those already in existence,
when located in places where increasing business warrants additional
bank &cilitiee. The superiotendent looks upon the direction taken by
the increased bank capital of the State this year as adding more to

X.ocwic

112 CONBinON OF THE BANES.

the Btability and prosperity of the hasineBB men and to the baoka
theniBe)7e8 than when he was starting twenty-five or thirty new
ioBtitntions a year with two or three times the amount of additional
capital. The &ct that foarteea bankB have ceased to do bnaiDew is
not regarded by him as a general Iobb to oar citizens, inasmuch as the
aggregate increase of bank capital beyond all that has been withdravn
dnring the past fiscal year is $2,488,891, while the oDmber of banks
aotaally engaged in bustness has been reduced from three hundred and
eleven to two hundred and ninety-Beven during the same period.

The present condition and amount of the securities held by this
department, as exhibited in table "So. 1, for the redemption of the
currency of the free banks of this State, give renewed and strong
iudications of the stability of its currency.

The total amount of securities held by this depart-
ment on the 30th of September, 1857, was $30,203,632 OT

Amount held on the 30th of September, 1858 26,393,098 83

Decrease of secorities during the fiscal year 3,810,533 24

The total amount of circulation issued to free banks
and outstanding September 30, 1857, was 28,429,522 00

The total amount of circulation issued to free banks
and outstanding September 30, 1858, was 24,603,194 00

Decreaae 3,826,328 00

A redaction of circulation issued to the incorporated

banks took place during the same time, 6f. 1,810,414 00

Making the total amount of rednction during the year, 5,636,742 00

This statement shows a steady contraction, during the past fiscal
year, of the currency issued by this department. Still greater ia the
contrast of the actual circulation of all the banks, including the
chartered and free banks, following the suspension of October, 1857.

The extreme point of actual bank note circulation in this State by
our own institutions was reached on the 20th of September, 1856,
amounting at that date to $34,019,633. It fell during the year pre-
vious to the suBpension to $27,122,904, this being the actual circnla-
tion On the 26th of September, 1857, seventeen days previous to the
snapension of specie payments. A steady and constant reduction of
the volume of our actual currency followed, and on th<9 13th of the
following March it became reduced to $22,710,158. Of this reduction
ofthecnrrenoy,amouQting during the year to $11,309,475, $4,412,746
occurred between the 26th of September, 1857, and the 13th of the
following March.

The world has been heretofore taught, through the theoretical opinioDS
of political economists, that a suspension of specie payments wonld and
must necessarily be followed by an expansion of paper money, alike
detrimental and demoralizing to the public. While the superintendent
looks upon a suspension of specie payments by our banks aa a great

n,g>ndtyC00glc

CONDITION OF THE BANKS. 113

evil and detrimentftl to ttieiaterestaof our people, he moat reapectfully
sabmits that the evils ariBing from & soepeosioD in thia State come
not Irom an iocreMed volume of currency, as it ia an utter impossibility
ooder a secured currency like oni own, but Irom a reduction of that
volume made of necessity by the baaka in their efforts to resume pay-
ment again in coin.

The past theory of the effects of a anapension, when applied to a
system based upon a aecnred currency, experience baa proved to be
erroneous. No anspeusion can take place, or rather be produced, by
an overisBue of a currency of that description ', and the evil effects of
it are only felt by our bnainess men and the producing classes, by an
inevitable contraction of the usual business facilities to the one, and a
falling market for the products of the other ; both produced by a con-
tracting currency, instead of increased credits for tne one and higher
prices for the other by an expanding one.

The bank note circulation of this State, in proportion to the busineas
transactions of our citizens, can only be compared to the decimal oatn
in daily nse for change.

To prove this, look at the absolute circulation of our banks, as
before stated, on the 13th of March last, ($22,710,168,) hardly saSa-
cient to give each citizen of our State a passage by railroad from
Albany to Buffalo. The whole amount would be expended for food
alone by our inhabitauts in less than a single month, at the present
prices of our agricultural products.

The contraction in March had reached a point beyond which the
necessity of its use forbade its further reduction ; or if persisted in by
our bauks, the supply would have reached as from the neighboring
States. Since the date referred to, the volume of currency has steadily
increased to $'^6,605,407 on the 25th of September, and will increase
for the year to come.

What does this expansion and contraction of currency prove? The
simple fact that, under our system of free banking, with a secured
curreocy — as once before remarked by the superintendent in a former
report — " the touch atone of profit and loss to the citizens employed
in banking in tbia titate ia a surer guaranty of the solvency of our banks
than statntory enactments, however stringent may be their provisions
or character."

Securiliea to be deposited in the bank department /or ctrculating notes
imved.

An effort was made during the last sessioD of the legislature, in
accordance with the recommendation of the snperinteDdent, to here-
after exclnde bonds and mortgages as a basis of security for circulatiog
notes iaaued from this office. It signally failed ; and the experience
of the superintendent teaches him that it is impossible to impress upon -
the legislature the difference between the necessity of immediate
convertibility and ultimate security.

Under these circumstances it is unnecessary for him to present the
reasons why he deems bonds and mortgages not the ample security
required by the constitution for the redemption of circulating notea ,
H. Ex. Doc. 112 8 '°\'s''-'

114 COKDITIOIT OF THE BAKES.

reatiDg his objections to their reception upon their inconrertibilitf
alone. Btill, be deems it due to himaelt' to pregent to the legislature
the fact that the preaent law gOTfrniog the aecarities to be received
for circalsting notes works tDaniTest injustice to a large portion of
the banks and bankers engaged in the business of banking in thifl
State. The experience of the snperintendent, in converting secnrities
held in trust by hitn into immediate means to redeem the notes of
Ifuled banks, has taught this lesson.

The present law, in relation to the description of securities to be
deposited with him, requires, in the language of the statute, that
they "shall be New York State stocks, in all cases to be, or to be
made to be, equal to stock producing six per cent, per annum; or
at least one-half the amount so deposited shall be in the stocks of the
Blale of New York, as before mentioned, and not exceeding one-half
in stocks of the United States, in all cases to be, or to be made to be,
equal to s stock producing an interest of six per cent, per annum ;
and it shall not be lawful for the snperintendent to take such stocks
at a rate above their par value, or above their current market value."
" Or the secnrities (hall not be less than one-half in such stocks and
one-half in bonds and mortgages upon improved, productive, unin-
cnmbered lands in this State, exclusive of anj buildmgs thereon, said
mortgages bearing an interest of not lees than seven per cent, per
aanam, and to an amount no exceeding two-fifths the value of said
lands."— [See chapter 313, Laws ot 1849, and chapter 340, Laws of
1848.)

The experience of this department proves that the bonds and
mortgages sold by the superintendent for the redemption of circulating
notes, not only during the disasters of thp past year, but from the
beginning of our free bank system, have realized but about eighty-
eight per cent, of the amount for which circulating notes had been
issued upon them ; while the aggregate securities, including both
stocks and mortgages, in every instance daring the panic of 1857,
with two exceptions, have brought more than sufficient to redeem the
entire circulation issned upon them. These exceptions arose from
the fraudulent character of the mortgages in one case, and the peculiar
condition of the stocks held in the other ; the stock falling due daring
the year in which the bank failed thus realizing little or no premium
;to naj the deficiency arising from the sale of the mortgages.

The practical effect of receiving the present securities upon the
«ystem of banking as now pursued in this State is simply this:
Those banks which wisely, in the opinion of the superintendent,
•elect to place stocks alone in the department as security for circulating
Dotes issued to them are obliged, from the uncertainty attached to
onortgAge securities, to place in the hands of the superintendent stocks
4oibe, or to be made to be, equal to a stock bearing six per cent, interest
•per>aaoum, while a five per cent, stock is, and has been, with the ex-
•oeption of a few days in October, 1857, worth in open market over par.
In other words, the same rule of security is applied to a bank whose
iiotes -are secured alone by stocks as to one whose circulating notes are
secured by stocks and real estate, while the result of a sale of this class
^f-Moarities is, that the superior value of the stocks is made to pay
4h9 .inevitable loss apon the mortgages. This is right and proper, so

COHDITIOir OP THE BAKKS. 115

fiir Rfl it relates to the notes secured by stocba and real estate, bat
manifestly unjust to those banks and bankers who have chosen to
Becnr« their notes by stocks alone.

The superintendent has no hesitation in saying that the circalating
notes of a bank secured by a five per cent, stock of this 8tate, or by a
five per cent, stock of the State of New York and the United States,
equal parts of each, are as abundantly secured as those secured by
Bimilar six per cent, stocks and an equal amount of bonds and mort-

Under this manifest injustice aad unequal operation of our present
laws in relation to the securities to be deposited by the banks in this
department, the superintendent does not hesitate to recomokend that
the bank department be allowed to issue to all banks and bankers
whose deposit as secnrity cunsists of stocks alone a par circulation upon
a five per cent, stock of this State, or of this State and the United
States, equal parte of each. Also, that every bank or banker may, by
retiring all of its or his mortgages, be permitted, nnder the direction
of tb« superintendent, to change the die upon its or his notes from
"stock and real estate" to " public stocks" only, and be subject to
the same rule as if stocks alone had been originally deposited.

Id making the above recommendation, it is but just to say that the
saperintendent is governed by his experience of tbe convertibility of
the securities in his hands during the difBculties and disasters attend-
ing our banks daring the fall of 1857, and also by the fact that since
tbo formation of this department in 1851 no five per cent, stock of this
State or of the United States has been sold by it except at a premium.

Table No. 2 presents in detail the securities of each banking asso-
ciation and individual banker held in trust by this department, and
the amount of circulating notes issued thereon.

It may not be amiss for the superintendent here to say that he
believes every note issued to every free bank in the State to be amply
secured. The best possible proof of the strength of this class of bank
note cnrrency is the fact that during the three years the department
has been under hiaeharge, during one of which a general suspension
of specie payments occurred, the entire loss upon this description of
cnrrency has been but (7,989 64, of which $5,830 24 was the result
of fraudulent representations of the value of premises mortgaged to
the department as security for circaUting notes, a contingency which
cannot again arise under the present regulations governing tbis class
of securities.

The failure of the Reciprocity late Sacket's Harbor Bank, the Bank
of Orleans, and the Tates County Bank, incorporated institutions, adds
largely to the loss upon our State currency. They are ail in the hands
of receivers appointed by the courts, and are out of the jurisdiction or
control of the superintendent. It is understood that liberal dividends
will be made finally to the note-holders. This opinion is baaed upon
letters from their respective receivers.

n,g:,.ndtyG00glc

116

cozmnroK of the bikes.

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CONDITION OF TIIE BANKS.

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CO^miTION OF THE BAXKS.

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COHDinOK OF THE BANKS. 121

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JAMES M. COOK,,

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H 2.

Tkenton (N. J.) PEtraiov Aqksct,

February 9, 1859.

SiK : I have the honor to acknowledge the receipt of ;oar letter of
the Tth iDBtaat.

The proceedings againat the deFaulting haaka to which 70U refer
have taken place is the court of chancery at the iaatance of the bank
commiBsionere, of whom the governor is the head.

These hanks, which have been sequestrated, were organized under the
general banking law. The charge against them was, that the; were
not engaged in legitimate banking operations, having no local business,
no deposits or di8c»anta,aDd whose only function was the issuing of cir-
culating notes. Thia latter, when carried on alone, was an express
violation of the New Jersey law, and the offence is cognizable before
the court of chancery, when brought before that tribanal by the bank
comm&eioners.

Hence the proceedings alluded to in reference to the alleged de-
faulting banks, which have been eammarily dealt with and directed to
he wound up.

It is apparent, therefore, that there are no docamentt which exhibit
the saccessive ateps of these proceedinga, except the files of the court
of chancery; and if you should desire copies of them in any particular
case, I will with pleasure procure them and transmit them to you
upon receiving your notification to that effect.

I may remark that there is great qaietude and satisfactioa in the
public mind in reference to banks in New Jersey aince the adoption,
in 1855, of the principle of making the circulation a preferred debt,
By the terms of each charter the whole assets of the bank, the fortunes
of the directors, and an amount additional from each stockholder equal
in par value to the shares held by him, are pledged for the redemption
of tbe circulating notes. There ia no excitement in the legislature now
when new banks are aaked for. If a case is made out that a new bank is
required, the charter is granted, and all the above mentioned provisions
are incorporated in the law.

Most of tbe banks formerly operating under the general banking
law are seeking to obtain special charters.

By way of explanation, it may be noted that we have two systems
of banking in this State, namely, the old or special bank system, and
that under the general banking law passed February 27, 1850. After
trial under the latter system, it seems to have fallen into disfavor in
New Jersey, and ia about being abandoned,

I am, very respectfully, your obedient servant,

PHIL. DICKINSON.

Hon. Howell Cobb,

Secretary of the S^retuury,

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CONDITION OP THE BINES. 137

H 3.

Trentoh (N. J.) Pefbton Aorhct,
Ftbntary 21, 1869.
Sir : I hare the honor to acknowledge the receipt of yoar letter of
the 18th iostsnt. In accordance with tbe request therein contained, I
seod yon a list of the defaulting bank>i :

The Ocean Connty Bank, the Bank of Trade, both located at
Tom's Biver; the Bergen Connty Bank, the Stock Security Bank, both
located at Hackensack ; the Merchanta' Bank, Paterson ; the Artisans'
Bank, Trenton.

The Bank of Trade and the Ocean County Bank never made any
ttatements, having only been operating several months before being
dosed,

Yery respectfully,

PHIL. DICKINSON,
Per 8. M. DICKIK80N.
Hon. HowMLL Cobb,

Secretary t^the TVeorary,

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The Bank of Pennsylvania. — Aa thia bank has played an important
part in the commercial and fiacal concernR of the country, the following
obitaary notices are deemed not inappropriate :

[From the PhllwIelphU Pren ]

THE BASK OF PENNSYLVANIA.

{fi(d{wM/u(y, 1793— fUMJiyuK, 186T.

It is a carioas historical coincidence, that this institution, which
closed its doora at the beginning of a panic, whose disastrous vibra-
tions carried dismay and ruin to the remotest boundary of oar city,
should have opened them for the first time Bt the beginning of a
calamity as &tal to public prosperity aa it was to human life. Its rise
was even more gloomy than its setting. It first opened its doora in
July, 1793 ; but its efforts to do so continued through seven preceding
months, occasioned great embarraasment to the business commnnity,
as the specie necessary for it to commence operations was abstracted
from the vaults of the only two banks then in existence here — the
United States and North America. This loss compelled them to
curtail their discounts, for iu those daya a wholesome equilibrinm
between circulation aud coin on hand was carefuUymaintained, This
pressure was aggravated by a multitude of failures in England, whose
consequences were felt in Philadelphia, then the priDcipal commercial
city in the Union. The chroniclera of the day have left it on record
that, during this period, multitudes of our citizens experienced greater
pecuniary difficulties than had ever been known among us. But iu
July, 1793, the clond showed signs of Uf))ing, and daylight was per-
ceptible beneath its lower outline. The new bauk commenced business
on the most generous and enlarged principles. The United States
Bank simultaneously extended its discounts. The relief to the com-
munity was ample. It not only saved many deserving men from ruin,
bnt it restored to business generally its former healthy tone. In the
midst of thia improved feeling the city waa inundated with fugitives
from the island of St Domingo, who had fled from the vengeance of
the negroes there, aud landed on our wharves utterly destitute. The
times had brightened so decidedly that $15,000 were contributed
almost immediately for their relief. On the 26th of July the yellow
fever seized its first victim. It spread rapidly, and enclosed the entire
city in its deadly embraces. It broke up many of the first commercial
houses, and occasioned losses too great to be even estimated. There
was also a strong and steadily maintained infusion of the Quaker
element in the direction and general management of the institution.
The State had chosen it as its fiscal agent. These two circumstances
gave it a character and stauding which had no rival. It was regarded
by the community sa safe beyond question. Its stock was oonseqoenljy
sought by widows, trustees, charitable inatitutions, &c., as a superior
inveetment. Perhaps no hank in Philadelphia could show so long a

i,Cooc^lc

COHDinON OP THE BANKS. 145

catalogne of inveatments by these claeses. When the great crash of
September came, it contained the following names:

Association fbr Colored Orphans 16

Philadelphia Board of Brokers 60

Contribntors to Pennsylvania Hospital 48

Female Association for Belief and Employment of

thePoor 3

Grandom Institnte 30

German Society for Belief, &c 12

Insarance Company of the State of Pennsjlrania. . . 60

Mayor, aldermen, and city of Philadelphia 12

The Uagdalen Society 21

Untnal Aesarance Conapsny 160

Orphan Society of Philadelphia 24

Penn Mataal Life Insarance Company 60

Pennsylvania Fire Insurance Company 100

Pennsylvania Company for Insuring Lives, (in trost) 216

Philadelphia Dispensary 36

Society for Belief of Distressed Uasters of Ships... 33

Society of the United Brethren 76

First Moravian Church, Philadelphia 3

Trustees of Lover Dublin Academy 6

Trnstees of the College of New Jersey 3

TruBteefl of Presbyterian Chnrch, Warwick, Bucks

ooanty.; 13

This list contains 350 shares, which were held for religious and'
charitable purposes. In addition to these, the number of shares held'
by trustees, guardians, females, &c., will be seen by the following,
summary :

Held by trustees 837

Held by guardians 78

Held by czecators and administratoTS 427

Held by 212 females 2,40*

Religious and charitable, as above .... 360

It will thus he seen how generally the stock was confided' as an:
investment for women. The result also shows how dangerous it is
fior women to confide in any bank as an investment. But the temp-
tation of a ten per cent, dividend undoubtedly influenced the advice
which these unfortunate females received from their male friends. An
iocome of $24,000 per annum, distributed among two hundred and
twelve women, was suddenly annihilated by the stoppage of the bank.
Many lamentable narratives might be given of the distress occasioned
by the villainy which robbed them of their all. Many of these were
widows, with families to educate and bring up. Stripped of their
last dollar, they have been obliged to abandon comfortable homes, put
out their children, and retreat to a single room. Even that single
room oould be kept only by working for it. Others, in old age, have
been made dependants on the chanty of friends. Some, foctanately
H. Ex. Doc. 112 10 Dm „ ih,Cooi^lc

146 COKDinON OF THE BAHEB.

having a portion of their means iarested elsewhere, coDtrire, by great
economy, to preserve a decent independence.

The havoc made of trust fnnds was also most disastrona. One
trostee was the holder of 266 shares. The five classee of stockholders,
particularized as ahove, held 4,096 shares. This stock cost them an
average of f 120 per share, and represented a capital of (491,620, all
of which is hopelessly sunk. Other parties were holders of shares
as follows :

William Thaw, cashier 293

Chambersbnrg Bank. 862

Thomas AUibone 199

George Philler, cashier 1,798

W. C.Morgan & Co 239

The reader will have noticed that fifty shares were held by the
Philadelphia Board of Brokers. Donhtless it must have strack him
with surprise that snch a body of men, notorions for their shrewdness,
and whose whole hosiness is that of dealing in stocks, should have
been caught napping with such an investment on their hands. It is
no credit to them, as guides for others, that they were thus so utterly
ignorant of the true condition of the bank before its fall. No bank
breaks without some premonitory warning to some individuals. The
plandering which ultimately postrates it is never done in a single
night, but is generally the work of months or years. While the
swindle is going on, there are always outsiders who either know the
fact of its being a swindle, or discover indications, which cannot be
mistaken, that a wholesale disaster is impendiog. It was so with
the Bank of Pennsylvania. There were parties in this city who knew,
two years before the event, that unless Allibonb was superseded by
an honest man the bank must fail. Why, it may be asked, did these
parties hold their peace? It is believed they did not. It was no duty
of theirs to make proclamation of what they knew. Yet, it is believed
that honorable meo, possessing this information, did purge themselves
of all apparent complicity with what was going on, by communicat-
ing to others, holding the power to apply the proper remedy, a fiill,
authoritative, and timely warning. Why that friendly warning was
disregarded may he explained hereafter. Those who gave it, satisfied
that there was ground for it, quietly sold oat their stock, and gave
confidential warnings to their friends to do the same. Yet, with all
this under current of sinister feeling towards the bank, no whisper of it
reached any member of the Board of Brokers. Such mnst be the &ir
presumption from the circumstance of their continning their invest-
ment until the institution closed its doors. At this late day recrimi-
nation would be useless.

[FiDm the Phtlkdalphla Ledger.]

The personal friends of Messrs. AUibone and Kewhall, as well as
all those who felt solicitnde for the fair fame of our city, no doubt feel
gratification at the result of their recent trial on the charge of au
alleged conspiracy to defraud the Pennsylvania Bank. The charge
wae of an aggravated crime, and the scrutiny into the /oondnc^i qf the

CONDITION OF THE BANKS. 147

defendanta waa prolonged, tboroagb, and extensive. The trial com-
manded the aotiring patience of court, conneel, and jury, and on the
conclaBioD of tho testimony it was manifest that there was no case to
be pressed npon the jury, and the prosecnting attorney accordingly very
properly abandoned any such effort. The jury, under the court, with-
out leaving the jury box, rendered their verdict in favor of the de-
fendants. Mr. Newhall's pecnniary transactions with the bank and
its late president were explained, and there being no evidence whioh
exhibited any appropriation of the funds of the bank to themselves by
either of the gentlemen implicated in the suit, they pass the ordeal
with their reputation as to integrity unscathed. This, we presume, ia
the last of the Penusylvsnta Bank, civil or criminal. All that may
follow will be of a finishing character. Those who owe its remains
money will have it to pay if they are worth it, and within the reach
of law to enforce its collection. The creditors of the hank will receive
much or little, according to its success in making collections. The
institution is gone, hook and line, and the impression now is that there
will not be s dollar for shareholders — probably only a per centage on
the claims of the noteholders and depositors. This is as sad a wreck
as that of the United States Bank, and, like it, one that has carried
misery to many households. Families that supposed themselves to be
resting secnrely on a competence, in a day find themselves sunk to
dependence and despair. Some wholesome lessons should be learned
from the utter ruin of this and other banks, and one prominent among
them is the impolicy of investing for women and for wards in the
stocks of banks. The whole history of our system of hanking — and it
is protty mnch true of banking everywhere — shows it to he liable to re-
vnlsion and to changes beyond the power of man to control, and there-
fore only to be meddled with by men who use banks in commercial
pnrsnitS] and who have the time and opportunity to watch their ope-
rations. We have never believed that there was any conspiracy on
the part ofthe officers of the Pennsylvania Bank to abstract its property
for their own gain, or any predetermination looking to its rnin ; and
the evidence, so far as it goes, in the recent trial proves that we were
correct in this opinion. There has been, unquestionably, bad manage-
ment and a very loose system of accounts from its head to the most
ioconaiderable book-keeper, including cashier and directors ; hut no
crime, except want of prudence be a crime, and of this all are equally
guilty. The president of the bank did very much the same sort of
thing common with bank presidents before and since, and such acts as
probably will be pursued as long as our present system of banking
continues. While they are successful they are not complained of, and
it is only when loss follows that the enormity of the practice is
denounced and sought to be made a crime. This is an error of the
system. The acts that are criminal should be defined in the law, and
not, being lelt to the discretion of oflScers, made criminal or otherwise
as they may chance to result in failure or success. There have been
many reforms in banking within the last twenty years, but there is a
wide margin yet left for further pruning. Onr hanks want opening
to the light. Everybody is interested in their solvency, and anybody
desiring to do ao should be permitted to look into them uud .learn
theirdoings. A.O(v^lc

148

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152 CONDiriON OP THE BUSKS.

The Bank of VirgLDia haa branches at Norfolk, Portsmoath, Fetera-
barg, Fredericksburg, Lyachbiirg, Bnchanaii, Danville, ChailestowQ,
and Union — 9.

The Farmers' Bank haa braDches at Norfolk, Feterabnrg, Fred-
ericksbnrg, Lynchburg, Winchester, Danville, Farmville, Charlottea-
TiUe, Wytheville, Alexandria, Lewisbnrg, and Blacksbnrg — 12.

The Exchange Bank haa branches at Petersburg, Clarksville, Alex-
andria, Ahingdoa, Salem, Weston, Lynchburg, and Bichmond — 8.

The Bank of the Valley has branches at Bomney, CharlestowD,
Leesbnrg, Staunton, Christianshurg, and Moorefield — 6.

The Northwestern Bank haa branches at Wellsharg, Parkersburg,
and JefFersonviUe — 3.

The Merchants and Mechanica' Bank has offices at Morgantovn
and Point Pleasant — 2.

The Bank of the Old Dominion has a branch at Pearisburg — 1.

The cashier states that ' ' the Bank of Kanawha has ceased bosinesa
as such. Its busiiiess is being settled up by the Bank of Charleetown."

The Manufacturers and Farmers' Bank at Wheeling "oeaaed to do
a banking basioess on the 6th of May, 1867, and its circulation is now
nearly elII redeemed."

The cashier of the Bank of Wheeling says, under date of December
15, 1868, *' this bank more than a year ago ceaaed to issue notes for
circulation, and is now conducted aa a bank of diacouat and deposit."

Some of the reports of the Treasury Department included leturna
from the Trans-Allegbany Bank. That bank appears to have gone
to destruction. Its not«s are quoted in the New York prices current
at 25 per cent, discount.

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CONDITION OP THE BAKES.

-s&

Biucb Buk
4tue or Bootli

Bnncta
Buk Bum 0

CndM. '

Ptanlen
Buk.

...„.„„„ •"

55SS

IST.M 40
1,N3,S7>«

i,in,w«3

383,779 00
134,730 77
I3S,1S4 10

iio;»M

»,!i»go

3W;40 1B

BduMe tat to buki'In a'li'BUiW

..,!iS;?JSS

*«.?

8^«™w7 ft" WtDC« eunnt

StHi truHiiT An Mum* HbUiv

a.^l^.^^'lbi'l^ft^'^h.iul

atn Sa, eicluilTe of Mill la
einrululoii, proflti oil bUHL tal-
■iiCM dat otiMr I«iilu7u7mi>-

M,mK

S,0T3ie

H4,aiB»

3(3,813 70

a,7se,asii

l,3M,4(M 41

3»,3e7l«

«,i»7,4ai»i

1,380,371 aa

„.OOM™ « „, „„^L

aB,an»
i,<nB,MiF;

lS,lt7M

1,143 IS
S, TBS 10

BOB, in 90

1I0,»S4I

47|o9oao

138,341 n

BlILi of othor buki In lUi Suts.

ll», 177 00

4g,m4i>

B*lu« d» r>Dtp bMlu Id Ihli

13,810 S7
104,MTM
S8^t»IS

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Ti4,m«i

CBTilJ

I««-eo«dfcTPl«d».»riuow.

7«3,M(U

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41(^744 H

iw,44i n
sw,iwn

H3,(0>40

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38,(03 38

lW7,SSt M

4s,m «t

101,879 30

'"inlaw 43

"isiiii'M

19,340 n

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8,B4tM

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1(9,016 73

iT.nse

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S,79B,»11

1,33>,4M 41

3*1,107 H

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COSMTIOH OP THE BANES. 155

qT Ae bmla 6t SmM Cfanlho— Contlnaod.

"ftHsr

Bute
CudHu.

BukofBMtb
Cuollu.

oroiurtmni.

J=i,

IslwOTS

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14,778 «

3S3,ft44 38
18a,NS43

«e,«77 37

10(^040 117
110,0*7 08
8,400 «

An bUkt ™»j. dn'irtkh talT

Bauuatur/ Hu Muce cunni

BBunuuT for biluo ilnklBi

euu munT fbr Jou to nlmld-

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as^mso

911,134 M

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131,810 14

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33,710 00

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48^354 88
14,881 7S

Hill or Oltoi bub la Ihl. Sou. .

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74,008 n

17,«n08

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81,190 DO
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BiUiiea dma Aon buki in otkai

43,017 80
110,987 30

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113,781 04

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18,877 40

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CONDITION OF THE BANKS.
TH.—OatdHioB qf 1A> brnkt m South Orattia— CoDtlniwd.

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14,480 81

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TOttllWilUUt*

1,IM.W4S

1,371,088 01

1,108,300 48

1,184,830 IS

888,188 85

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4,775 00

l^i

m. 078 47

48,370 75

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18,885 38

U,B87n

8.003 ■»

800 80
M, 740 58

38,983 40

184,814 98

8,080 00

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V,S5SM

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435,144 80

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»«.44ie7

144.387 73
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F^i^S'iiiii"''-""'

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48,8MP0

80,150 00

gsns:ir.r-.'''':^!":'!!^;:;

89,836 01

88,838 BS

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W,49iW

35,»4W

so, 588 08

18,387 M

8,500 33

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1,371,898 04

1,1011,308 «

1,184,836 45

ei>,i£8aB

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14,807 10

83,13(80

48,885 18

88,808 98

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COMDTnOK OF THE BANKS. 157

ndilun tg lb i«fa m SoA OmilDM— CiKitlati«d.

BukDfObai-

BukofOUB-

[Wei Bank

BMkOf

TMtl.

BUT* DO! BT TBI ■ITOtL
■ UIEI.

a,iiBM

(400,000 00

"iii

Him 81

1,33104

7^?^!S

Balwwa doe lo lunki iji' ihii Rate

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All otfier moiHji da> •rtUeli b«u

Ante imnirT fof Muca eomiit

13«,7B8»4
1,843,573 45
1,180,040 83

BOueuiMiirT fbi Ulu« ilsUiic

flnu [nuDiT foi lou (br nbaUd-

71,W31

ai.in 34

147,058 01

85,107 49

Tool IliMlid

1,I»,<B4 3>

781,418 a

»,3aB.4S7 81

488,840 14

38,344,883 07

S7,SOS3

'SSI

4 000 00
78,111 40

31,444 90

318,317 73

03,000 00

»3,«130

083,088 IS

3,347 33

e! 707 00
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30,819(3

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18,000 30

M,in3 94

14,850 00
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3,381,093 S7

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«,313 77

U, 783 47
148,819 31
8,540 00

1,(^817 S3

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U,MS41
18,010 89
180,183 31

70 00

Mriij

iD.Bse.oa 37

330,388 81

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1 971^000 90
1,540,307 43

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3>;B3i40

18,074 as

Moner Inmud In nock

BuptDdtd debt ud dtU Id toll. . .

0,800 00

■■■ii;i83iB

BniKiM* andMCSi^

41,837 09

88,488 30

Hon«r Inrai. Ji» Mery cHhar w^

^945 03

laasi

18,000 00

10,000 00

ToulnMBKCiofihabinki..

i,oa,S34 3g

781,418 39

3,330,407 81

406,540 14

3<,M4,883 07

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loi^sTtta

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CONDITION OF THE BASES.

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160 C01?DinON OP 'i-HE BANKS.

The Bask of the State of ()«orgia has branches at Athens, Angnflta,
EatoDtoD, and Washington, and agencies at Columbos, Atalanta,
Madiaon, Oriffio, and Macon.

Others of the Georgia banks have, in all, eighteen agencies, bnt no
branches.

From several of the Georgia hanks no retarns have been received.
In relation to some of them, the following information baa been com-
mnnicated hy a gentleman of Angasta :

"The Cherokee Insarance and Banking Company, at Daltos; the
Exchange Bank of the State of Georgia, Griffin; and Soathern Bank
of Georgia, Bainbridge, have all failed, or have been or are being
wonnd up. No one ot them even had sny^ credit, so far as I know, at
least in Savannah and Angnsta.

" The Planters and Mechanics' Bank, Dalton, is in bad repnte, and
cannot do much, if any, hnsiness. I learn that it has been sold to
parties at the north.

" The Commercial Bank, Branswick, has been In credit, bat is now,
I learn, Tedeeming its notes at the Bank of Savannah preparatory to
winding np,"

. Extract from tJie Report o/* the PreatdetU of the Georgia Railroad and
Samlang Company, May 11, 1858.

The banking department of this company, with most of the other
banks of the State, suspended specie payments in October last. This
was very mortifying to the board, and the more so as the necessity
was entirely unexpected. The institution had never been so strong as
in the early part of the year 1867. So mnch so, in fact, that at the
last May convention a serions effort was made to instrnot the board to
declare an extra dividend, as will be recollected by the stockholders.
Banks, however, to answer the purposes of their institution, have to
issue their credits, and receive the credit of others in return. If tbeae
latter credits be baaed npon real convertible values, they constitute a
resource eq^uivalent to soecie, and often mnch better. Bank issnes are
not in excess when exchanged only for such credits, as the prompt
payment of the one liquidates the other.

if, however, from any extraordinary revnlsion in commercial affitirs,
the debtors of the banks became unable to pay them in paper, a main
resoarce for the redemption of their isfiues is cat off, and tt can scarcely
be expected, in a time of distrust and panic, that they can pay promptly
all their issues tn specie, when their debtors are unable to pay
them tn paper. This was the condition of the principal banks in
Georgia in October last. They had net overissued, but, on the con-
trary, their issnes were rather contracted for that season of the year.
With the usual resources for the redemption of their issnes they were
amply supplied. Bnt by a senseless and unnecessary panic in Kew

COHDinON OF THE BimS. 161

Fork— onr coramemal centre — all, or most of the banks nortli of us,
from New York to Cftarieaton induded, saspended specie payments.
Sterling due for past sales conld not be sold. Bills on New York and
other ports were not paid. Correspondent banks conld not respond
for specie balances, and at home the business paper of the merchant
was not paid, becanse the planter conld not sell his cotton to liquidate
his account with the merchant. In. short, the business and credit of
the country seemed for a time completely prostrated and paralyzed.

Many of onr banks conld doubtless have continued payments in
flpecie, but tbey conld only- do so by ceasing to do busineHS on their
own issues — forcing their debtors to rninous sacrifl'tieB — contracting
the currency, and bringingpresBnre and distress upon the whole debtor
class of the community. Under these circumstances, what was needed
was time. Time for the planter to sell his cotton and pay the
merchant — time for the merchant to pay the banks — not in specie, but
in their own paper — and time to the banks, to enable them to extend
this time to the merchant, and the merchant to the planter. Time to
dear up mutwil embarrasimetits from a common cause, and settle debts
all round; not all in specie, but by making one debt liquidate another,
with specie only for bcUanoea; and, in the meantime, to enable the
banks to issue their bills to forward the present crop. Georgia, and
the adjoining States, taking this view uf the subject, gave time until
NoTember next. Our banks, impatient nnder the supposed odium of
stupension, resolved to resume the Ist of the present month, ^t is
Dot the purpose of the board to discuss the policy of this hasty resump*
tion, wAi^ every adjoining State remains in auspenaion, and the present
crop has not yet been forwarded. Our banks are doubtless fully able
to maiotaiD the position they have assumed. There has been, in &ct,
a virtual resumption for actual wants for months. But whether our
banks can furnish specie to the at^acent Stat«s withotU any reciprocal
obligation on their part, and at the same time supply all legitimate
demands for currency at home, is not yet fully tested. It is certainly
now their duty to do so to the full extent of their ability.

The bank has not been considered as very essential to the prosperity
of the institation. It has been mostly valued as a safe place of deposit,
and for the convenience it affords to the operations of the road. B has
generally had a good circulation, bat this has been owing mainly to
the operiuionaof theroad, and of connecting roads, and ta the very high
credit which the institution has enjoyed With a capital of over
$4,000,000, usually worth about par in the market, with other con-
vertible effects, nsually amonnting to about $2,000,000, and the
individualliability of a very large body of stockholders, which asa body
possess great wealth, the bill holder feels that the aecwrily is perfect
and beyond all contingency. Hence the bills have been hoarded by

firuddnt men to a great extent, which accounts in some degree for the
arge circulation the institutiou has maintained in proportion to the
small banking capital actually employed. Certain itis, that no undue
efforts have been made to force out a large circulation. We have had
no foreign agencies. Onr operations have been eaxlurively Oeorgian,
and confined to the line of road, and the business operations connected
with it. This high confidence, however, does not release the company
H. Ex. Doc. 112 11

162 COMDITIOK OF THE BANES

from ita obligations to the public, to furnisli in its issQeB a cnrrencj at
all times conrertible into specie — an obligation from which it can only
be released by circamstances beyond its control. Curreu'sy as such,
to be sure, ia only useful in representing and exchanging commodities,
and its value depends more upon its comparative quantity, than the
material of which it is composed. But an essential office of cnrrency
is its ase at a standard of value, and all experience has shown that a
paper cannot be long relied on for this purpose, anless it be readily
ooavertible into specie.

Whatever may be the future bneiness prospects of the company, it
is very satisfactory to know that at no period in the history of the
company hare the road and equipments been so perfect, or in snch a
high state of repair. Not an accident worthy of note has happened
during the year, either to freight or passenger trains, and, so far as
known to the board, the ofGcers and employes connected with the
transportation and road departments have generally performed their
duties with commendable zeal and fidelity.

JNO. P. KING,

Fretident.

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CONDITION OF THE BANKS.

163

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CONDrriOM OF THE BANKS.

Report of the Board of Currency to the Le^Ulature of tht SteUe of
Louisiana, January, 1859.

To the Senate and House of Bepresenlatives of the iSate cf iMuisiana in Oeneral
AsKembly convened :

The aDdersigned, members of the Board of Cnrrescy, beg leave to
Bobmit the followiDg report of the coadition of the banks of this State
during the year 1868 :

The Bans of America baa paid in $507,800 of her aominal capital
of 1,000,000, which is an loorease of $321,990 since our report in
January last.

The Crescent City Bank bas paid in $1,020,300 of her nominal
capital of |1,032,000, which ia an iucrease of |394j386 since our last
report.

The banks have regularly placed tbe Board of Cnrrency in posses-
sion of their daily movement and weekly statements, aud tbe several
examiuations made by tbe board of tbe books and vanlts of the banks
have proved tbe statement, without exception, to be true reports of
their condition.

The regular monthly reports of the condition of the banks have
been published, in accordance with law, in the State paper at Baton
Bouge.

Since tbe last annual report of tbia board, the amount of actual
coin in vault of the several banks has been at sU times greatly in
excess of the requirements of law, and the oggregato amount of specie
now held by them is more than one-half of tneir total cash liabilities,
while their balan&es of foreign and domestic exchange are unusually
large. This exhibit of strength seems to be accompanied with the
acquirement of handsome profits, which has enabled each institation
to declare handsome dividends to its shareholders, and yet further
increase its reserved or surplus funds.

The sound condition of the banks, as well as the strict compliance
by them with the laws regulating them, will be more readily and fully
seen by reference to the accompanying statements.

The banks are compelled by law every week to pay to, or to re-
quire to be paid by, each other their respective balances in specie, and
in order to comply with the law they are obliged to transport from
bank to bank through tbe streets, in specie, tbe aggregate amount
due from and to tbe different banks, always at more or leas risk and
expense ; besides, much tioie and labor is required to count tbe specie
thus changing hands. These difficulties, and others consequent upon
tbe present system of making the exchanges between the several
banks, have been obviated in New York by the establishment of a
'* Clearing House," with the object of effecting at one place the ex-
changes between the several banks, and the payment at the same
place of the balances resulting from such exchanges. The New York
Clearing House is spoken of in the highest terms by those familiar
with the subject, and some similar system, it has been suggested,
vould be of like utility here.

COHDrnON OF THE BANKS. 165

As tbiB 18 an arnngemeDt of obrionB convenieDce to the banks
themselves, the; slionld, and no doubt will, at an early dat«, volun-
tarilf co-operate witb eacb other to seonre the advantages of that
Bystem.

By the provisions of an act " to appoint a secretary of the Board of
Currency, and to define the duties o* his office," approved March 18,
1858, the secretary of the board is required to attend the seseioBS of
the general aBsembly, and to act tx officio as secretary of the joint
committee on banks and banking of the eeneral assembly. This duty
is inconsistent witb the performance of other duties assigned the secre-
tary in New Orleans. We would therefore respectfully recommend
the repeal of that portion of the law requiring his attendance on the
general aasembly at Baton Bonge.

During the year we have had to moam the death of the Hon. Gteorge
Enstis, president of the Board of Currency. Any enlogy from us can
add but little to the many well-merited tributes of respect already
paid by the conrte, the press, and the people to his memory, and to
his ability as a public officer, and worth as a citizen. We cannot
refrain, however, from making a record of the high estimation in
which he was held by those with whom he served offinially, and of the
deep regret we feel, in common with his other fellow-citizens, that his
worldly career has been closed in the midst of his usefulness. He was
a profound jurist, an able and upright judge, a competent and faithful
officer in all the public trusts conferred upon him, and in all his rel»*
tions in life has left ns an example worthy of imitation.
Bespectfiilly submitted,

LOGAN Mcknight,

President Board of Ourreneu,
ANDEEW S. HEBRON,

Secretary of ffiate.
B. A. HUNTKB,

State ZVeosurer,
E. HolLHmniT, Secretary.

n,g:,.ndtyG00glc

CONDITION OP THE BANKS.

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CONDITION UF TH£ BASES.

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CONDITION OF THE BANES.

169

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CONDITION OP THE BANKS.

Extracts from the message of his excellency E. N. Conway, governor of
Arkansas, Novet/Aer 3, 1868.

Notwithstanding the payments on the debt of the State, up to
the Ist day of October, 1868, amonnted to |2,I46,484 36, namely:
|932,790 03 on account of bonds issued to and sold by " The Bank
of the State of Arkansas," and |1,213,694 33, on account of bonds
issued to and sold by "The Real Estate Bank of the State of Ar-
kansas," there still remained, on the 1st day of October, 1S68, a
liability of the State, on account of bonds sotd by the Real Estate
Bank, amounting, with the unpaid interest on them, to $1,815,307 11',
and also a liability on account of the Bank of the State of Arkansas,
for bonds and unpaid interest on them, amounting to $1,239,626 82.

The assets of the Keal Estate Bank and the lands mortgaged by
stockholders, if honestly and prudently managed and applied, will
be more than sufficient to pay the liability of the State on account of
the Real Estate Bank. It is therefore recommended that no legis-
lation whatever be had, whereby these mortgaged lands might, by
any possibility, be released, or the security to tbe State and bond
holders in any manner jeopardized.

The only debt of the State without adequate means to pay it is that
of the State Bank, which, after deducting assets which will probably
be collected, amounted on tbe Ist day of October, 1858, to abont one
million one hundred thousand dollars. This debt is composed of
|616,000 of principal not due, and tbe interest due and unpaid.
Elsewhere in this communication the affairs of the banks are referred
to more in detail. * * ••»•••

In the year 1836 " The Bank of the State of Arkansas" was created.

One thousand six per cent, and one hundred and Bizty-nioe five per
cent, bonds of this State, each for $1,000, were issued to and sold by
"The Bank of the State of Arkansas," to obtain banking capital.
By tbe report of the auditor yon will see that the whole number of
these bonds redeemed, cancelled, and filed with the State treasurer,
up to the 1st day of October, 185K, was fire hundred and fifty-three,
and that the interest on tbe bonds, when redeemed, amounted in the
aggregate to |3T2,174 36 ; and to this should be added $7,615 68
for interest paid at the United States treasury, out of funds of the
State, on bonds issued to and sold by this bank, and then the interest
paid will be shown to be $379,790 03, making, with the principal of
the five hundred and fifty-three redeemed bonds, $932,790 03, paid
on the debt of the State on account of tbe Bank of the State of Ar-
kansas. But there are still outstanding and unredeemed 616 of the
bonds sold by this bank. Of these, 691 are six per cent, bonds,
which will not be due until the 1st day of January, 1868, and 26 are
fire per cent, bonds, which will not be due until the 1st day of Jan-
uary, 1887. .-. ,

n,g>-ndtyL.OO(^IC

CONDITION OP THE BANKS. l7l

Oq the Ist day of October, 1858, the iotereat nnpaid by the bank,
on these 616 bonds, amounted to $631,142 50. One hundred and
twentj-eight of the unredeemed six per cent, bonds issaed to and sold
by " Tbe Bank of tbe State of ArkaneaB," and five hundred six per
cent, bonds issued to and sold by ' ' The Real Estate Bank of the State
of Arkansas," are held by the United States.

The whole amount of the five per cent, of the net proceeds of the
■ales of tbe poblio lands, which accrued to the State of Arkansas,
nnder the compact between the United States and this State, from the
Ist day of January, 1841, to the Ist day of Janaary, 1857, was
179,125 75. Bat, in accordance with requirements of the joint reao-
Intion of Congress, approved March 3, 1845, this money was, from
time to time, as it accrued, retained at the United States treasury,
and $71,864 08 of it applied by the authorities of the United States
towards tbe payment of interest on the 600 bonds of this State, issued
to and sold by " The Seal Estate Bank of the State of Arkaoeas,"
and the residue, $7,261 67, towards the payment of interest on the
128 bonds issued to " The Bank of the State of Arkansas." By the
tariff act of August 30, 1842, the act of Congress to appropriate the
proceeds of tbe sales of tbe public lands, approved September 4,
1841, was modified, and tbe distribution of the land fund to tbe
several Stetes suspended. But befbre tbe modification of the act of
September 4, 1841, tbe sum of $5,012 16 had accrued to the State of
Arkansas, and, under section four of this act, was retained at tbe
United States treasury, and $4,658 16 of it applied by the authorities
of the United States towards the payment of interest on the 600 bonds
issued to tbe Real Estate Bank, and tbe balance, $354 01, towards
interest on the 128 bonds issned to the Bank of the State of Arkansas.
Therefore, from tbe $631,142 50, interest, mpaid by Ihe Bank of the
&tUe c/ Arkansas on tbe let October, 1858, the Eum of $7,616 68,
applied at the United States treasury toward the payment of interest
on bonds issued to this bank, should be deducted, and then the whole
amount of interest which remained due and unpaid on the 616 out-
standing bonds issued to this bank will be shown to be $623,526 82.
The principal, not due, was $616,000, which, added to the interest,
will show that tbe whole amount of the debt on account of tbe Bank
of the State of Arkansas was $1,239,526 82, on the Ist day of Oc-
tober, 1858.

To the report of the financial receiver of tbe Bank of the State of
Arkansas you are respectfully referred for intelligence in regard to
his official transactions. It is recommended that the existing law he
amended so as to autboriKe the receiver to employ special attorneys,
and that two years longer be allowed for winding up the afi^airs of the
State bank.

The land attorney and State collector has reodered considerable aid
to the bank ; but as the other regular business of his office often re-
qaires his presence in one direction, and the business of tbe bank needs
attention in another, he cannot, at all times, render that service to the
bank which is necessary.

By the report of the land attorney and State collector, yon will see
tiiat be hafl been energetic and Ba<xwssful in oolleoting fnadsofitlie

HtatA '.X I '^

172 CONBinOIf OP THE BANEB.

William M. Gk)age aod Archibald H. Butherford, the State ac-
countants, under the act of Jannary 15, 1857, after a long, tedious,
aod laborioua iaveetigation of the coalueed affairs -of " The Bank of
the State of Arkansas," have made a very elaborate and able report,
to which you are respectfully referred as a source of much infbrmatioa
concerniDg the past uistery and present insolvent condition of this
bank.

After deducting alt of the assets which will probably be collected,
the executive estimates that the debt of the State, on accooot of the
State bank, amounted to about one million and one hundred thooaand
dollars on the Ist day of October, 1868.

"The Bank of the Stete of Arkansas" and " The Beal Estate Bank
of the State of Arkansas" were created in the year 1836. These are
the only banks that ever had existence in Arkansas.

The State bank belonged wholly to the State, and no other stock-
holder haB ever bad an interest in it. The general assembly elected
its chief officers, and they appointed their Babordinates. After linger-
ing through a lapse of nearly a quarter of a century, the State bank
is about to pass away, but the State accoantente have recorded much
of its history. This will remain to perpetuate its memory, and to
warn the people of Arkansas against tne establishment of sach insti-
tutions in future, *

It is recommended that a law be passed to effectively prevent the
circulation in this State of any bank note of less denomination than
fifty dollars. Such a policy would cause gold and silver to flow into
our State, and would afford Buhstential benefite to the people.

For information relative to the business of the Beal Estate Bank
you are respectfully referred to the report of the reowver in chancery.
This valuable report shows that the policy established for winding up
the hank works well, and if strioUy adhered to and faithfiilly carried
out, will protect the Stete from any loss whatever on account of the
Beal Estete Bank.

The report contains a complete list of the luids which the reeeivor
is authorized to sell.

By the report of the anditor you will see that 6S4 bonds of this
State, issued to and sold by the Beal Estete Bank, and also manj
ooDpons for interest, had been redeemed, canoeled, and filed with the
Stete treasurer before the 1st day of October, 1868, amounting together
to $1,137,172 10, aod that on the Ist day of October, 1858, 946 of the
bonds issued to and sold by this bank remained unredeemed, aad upoa
them the interest due and unpaid by the bank was $846,830 ; nakiDff
for principal and interest $1 891,830; but from this should be dednotea
$76,522 23, the amount of money of the State reteined and applied
by the authorities of the United Stetes, as required by the joint reeo-
lotioB of Congress of March 3, 184S, towaras interettt on the 600
hoods of this Estate, issued to and sold by the Beal Estete Bank,
whiob are held by the United Stetes as trust funds, and then the whole
amount for principal and interest will be shown to be $1,816,307 77.

You are respectfully referred to the report of the solicitor gencnd
of the Stete of Arkansas for information ooncerning the suit of the
State against the late triuteea and officers of the Beal Estete Bank,

CONBinON OF THE BANES. 173

and also relatira to many other important snits to which he faaa at-
tended in behalf of the State. ,

Alter the State commenced Buit against the traatees and ofiScerg of the
Beal Estate Bank to hare them removed and held to account, so that
the assets of the bank might be collected and applied to the payment
of its debts, certain saita for large amounts were commenced auainst
the State upon bonds of the State issued to the banks In December,
1854, these suits were pending, and there were serious apprehensioua
entertained that they would result in judgments, and, under these,
forced sales and the sacrifice of all the lands and other available assets
of the banks, the breaking up of the stockholders of the Real Estate
Bank, and finally in driving the State to repudiation. The assets of
the banks were appropriated for the payment of the debt of the State
on account of bonds issued to and sold by the banks, and the State
was using efforts to make the assets available for that purpose.

In the suits only copies of the bonds were filed ; and to protect the
interests of the State, and of the stockholders of the Real Estate Bank,
and all others concerned, an act was passed by the general assembly
of this State, and approved December 7, 1854, which provided " that
in every case in whicn suits or any proceedings had been instituted to
enforce the collection of any bond or bonds issued by the State, or the
interest thereon, before any Judgment or decree should he rendered,
the bonds should be produced and filed in the ofBce of the clerk, and
not withdrawn until final determination of the suit or proceedings,
and full payment of the bonds and all interest thereon, and might
then be withdrawn, canceled, and filed with the State treasurer, by
order of the court but not otherwise." This act also provided that
in every case in which any such suit or proceeding had been or might
be instituted, the court should, at the first term after the commence-
ment of the suit or proceeding, whether at law or in equity, or whether
by origiual or cross bill, require the original bond or bonds to be pro-
duced and filed ; and if that were uot done, and the bonds filed and
left to remain filed, the court should, on the same day, dismiss the
suit, proceeding, or cross bill.

Ton will see by the report of the solicitor general that five suite
were dismissed under this act of December 7, 1854, for failure of the
plaintifis to file the bonds ; that in all the cases appeals were taken to
the supreme court of Arkansas, which affirmed all the judgments and
decrees of dismissal ; that the plainti& then removed the cases to the
Supreme Court of the United States ; that, under an arrangement with
the governor of this State, the solicitor general attended to these casee
in the Supreme Court of the United States, and that all of them were
decided in favor of the State, and the law of December 7, 1854, fully
sustained. There is but one other suit pending against the State ou
bonds, and in that case a judgment had been obtained in Pulaski circuit
ooartbefbrethepaesaKeof the act of December 7, 1854, for $62,613 06;
bat, upon appeal to the supreme court of Arkansas, the judgment was
reversed, and the solicitor general states that under the existing taw
this case will have to be dismissed at the present term of the Pulaski
circuit court.

The solicitor general has manifested muoh seal and ability in. at-
tending to suite of the State. ^ .OOg\L

CONDITION OF THE BANES.

Seport of the accoutUanta of the State Bank of Arleanaaa, made to the
Oovemor in pursuance of law.

His Escellebcy Elias N. Conwat,

Governor of the State of ArJeaaaaa :

Sm: That you might carry into effect the intentions of the legisla-
ture, as ezpresBediu the act otJanaarj' 15,I85'7, "toaidinasoertainiDg
and recovering assets of the Bank of the State of Arkansas," yoa di>
rected as to make the necessary investigations and report to yoa at the
earliest day possihle.

As soon as might be we eateied on this duty, bat a very little time
served to show that it was not one easily performed, Hr. John H.
Creaee, who was more intimately acquainted with the concerns of the
bank than any other man living, having been cashier of the principal
office during the whole of its business existence, and financial reoeivei
for the first two years after the act of liquidation was passed, was, in
the autumn of 1866, requested by you " to examine tbe books of the
State Bank and ite branches with a view to their final adjustment, and
for the more immediate purpose of exhibiting to the legislature, (at the
session to commence on the 3d of November then ensuing,) a statement
of the assets to be collected." He reported to you, under date of October
21, that he found everything in oonfosion, and that the performance
of such a duty as had been assigned to him must necessarily be "a
work of time,"

A very little investigation confirmed the correctness of this state-
ment. We found the accounts of the bank and its branches, extending
through a period of twenty years, scattered through more than a hun-
dred volumes, about eighty of which were folios ; in addition to whioh
there was about a cart load of papers, many of which were unassorted
and unarranged.

At first glance it might seem that a certain number of clerks might,
if due time were allowed them, go through the labor ; but farther
inquiry served to show that even with such aid it would be impossible
to bring the accounts into exact book-keeping order, Yoluminoos
though the records be, they are in many respects defective. After the
act of liquidation went into effect, as is stated by Mr. J. M. Boss, no
regular books were kept up at the branches. la 1850-'51, Governor
Boane, speaking of some of the officers, said : "The evidence of their
incompetence would appear (among other things) from their inability
so to keep their books as to exhibit the tranf actions of the bank."
Mr. G. Washington Patrick, who was, in 1848, appointed to examine
the bank and its several branches, said that he found " the afiairs of
the branch at the Post of Arkansas in such a peculiar state, that he
was almost deterred from pursuing his examinations any further, the
books and papers being kept in such a state that they were not only
obscure but woolly inexplicable."

Nor was this all. In one instance the fecords were parposely de-
faced and destroyed. This appears from a letter of Ootooer 28, 1841,

X.ocwic

CONDITION OF THE BAKKS. 175

from Hr. McKiBsiclc, cashier of the braDch at Fayetteville. Id it he
says : ' ' Some of the important books of this iostitutioa were parloined
from the bank aboat four months ago, A part of these hare since
been foond, but so obliterated and defaced that they are unintelligible,
and indeed a number of pages are entirely cut out and the leaves
destroyed."

When the act of liquidation was passed (fifteen years ago) the assets
consisted chiefly of small notes of hand. The principal and securities
of these notes were scattered all the State over. They were divided
between the mother bank and its three branches.

Freqaent changes were made in the plan of management. For the
first two years the general assembly elected a financial receiver, an
executive receiver, and an attorney, for the principal bank and each
branch. In 1845 the ofBce of executive receiver was abolished. In
1849 the office of financial receiver at each branch was dispensed with.
In 1851 the ofSce of bank attorney was done away with, and power
was given to the financial receiver at Little Bock to employ attor-
neys as occasion might require.

The frequent changes made in the persons holding the offices of
receiver and attorney mcreased the difficulty of adjusting the accounts.

When notes were put into an attorney's hand for collection a list
of them was made, for which he gave a receipt. From time to time
the receiver would draw lines across the description of such notes as
the attorney ceased to be accouatable for. But what had become of
those notes, whether they had been paid in full, settled by compro-
mise, filed in court, or returned to the receiver, was, so far as the re-
ceipt was concerned, left to inference.

To tell precisely what became of the assets of the bank it would be
necessary to trace each particular note through the hands of each
receiver and each attorney to whom it had successively been entrusted.
But even this would not be enough. The records of the courts must
be searched to know the fate of many of the notes.

Such a search, if a thoroagh one, would be very laborious. At least
we would so judge from the following letter, which W. C. Bevans,
esq. , late bank attorney at BatesviUe, addressed, under date of Novem-
ber 2, 1855, to James F. Fagan, esq., who was then the financial
receiver at Little Bock :

" Some time has rolled round, and yours of the 12th April is still
before me. On the receipt of that letter I called on the clerk of the
Batesville circuit court to make outa report of the proceedings in court
on all the notes put in suit by the bank, judgments for and against the
bank, the return on the executions, &c., &c. The clerk at difierent
times commenoed the work, but gave it up. Something near four
hundred suite, at different times, have been instituted here ; and two
hundred dismissed at one time under a rnle for bond for costs, and the
suits instituted again either in this court or some of the courts of the
adjoining counties. This gave rise to an endless perplexity of pleadings,
every effort being to harrass the plaintiff." (That is, the State Bank.)

" Last Monday I came up, intending to stay some week or two and
assist. But upon entering on the duty I soon found that to do what

n,g:,.ndtyC00glc

176 CONDITION OP THE BANKS.

I had in cootemplation would certainly require not lesa than six
months, aod would be a very arduous job."

A preliminary investigation showing aufBciently the state of the
accounts, our efforts were, in conjunction with those of Mr. Wilson, the
financial receiver, and Mr. McConoanghey, the land attorney and State
collector^ directed, in the first place, to see what could be saved for the
State. Through the measures that have bt'en taken and that will be
taken, something will be realized from assets that would otherwise
have been entirely lost, but to what amount cannot now be told.

Mr. McConnaughey addressed a circular to the clerks of the circuit
courts in the different counties, requesting them to state the exact
condition of the suits in which the Bank of the State was a party.
Some of them have given the desired information ; others have not.
One of them, the clerk of the Pulaski circuit court, found the investi-
gation so tedious that it took him nearly a year to complete it.

The previous labors of Mr. Crease afforded great aid in adjusting
the accounts of the three late financial receivers, John M Ross, esq.,
Peter T. Crutchfield, esq., and James F. Fagan, esq. The aggregate
of the collections made by these gentlemen from thu debtors to the
bank was between four and five hundred thousand dollars ; hut this
embraced but a part of their transactions. Their exchanges of coupons
for bonds, and the Real Estate Bank bonds for State Bank bunds,
together with their statements of bonds and coupons surrendered to the
treaeur'^r, and of bank notes cancelled and burned, swelled the total
of their accounts to eight millions. All these had to be carefully ex-
amined, as in each of these transactions there was a liability to error.
It is a satisfaction to state that none of any moment was discovered.

We also prepared accounts current of the different attorneys : U.
W. Dorrise, T. N. Byers, W. C. Bevans, Jonas M. Tebetts, F. A.
James, M. L. Bell, and D. W. Carroll, esqs. The returns of the
amounts collected by them from different debtors to the bank, many
of which Mr. Crease could not find on record, were found on file ; thus
affording the means of adjusting the acconnts both of the attorneys and
of the individuals from whom they made their collcctiens.

After all that can be done the State will be found involved in debt
te the amonnt of a million or more, on account of bonds and coupons
issued for the benefit of the Bank of the State ; and it is proper that
the people should know how the debt has been incurred.

In the years 1836 and 1836 a bank mania pervaded the Union, and
the adoption of a State government by Arkansas appears to have been
hastened that an opportunity might thereby be afforded for establishing
banks for issue. One article of the constitution was, literally :

" The general assembly may incorporate one State Bank, with such
amount of capital as may he deemed necessary, and such number of
branches as may be required for the public convenience, which shall
become the repository of the funds belonging to or under the control
of the State ; and shall be required to loan them out throughout thv
State, and in each county in proportion to representation. And they
shall further have power to incorporate one other bankinginstitution,
calculated to aid and promote the great agricultural interests of the
country ; and the faith and credit of the State may be pledged to raise

CONDITION OF THE BANKB. 177

the funds necessary to earry into operation tbe two banks herein
specified : Provid^ sach eecnrity cao be given by the individual
Btockholders was will guarantee the State against loss or injury,"

On the 12th of September, 1836, the first general assembly com-
4nenced its session at Litt'e Bock, and on the 14th, on the motion of
Mr. Kioggold, a resolution was adopted, " that a joint committee,
ooDBiBting of three on the part of the senate, to act in conjunction with
ax on the part of the house of representatives, be appoiated to take
into consideration all matter in connexion with hanking, and report
by hill or otherwise. "

Equally prompt was the action in the hoase. On the same day
Mr. Caldwell gave notice that he woald, on the following day, ask
leave to introduce a bill, to be entitled "An act to establish thj
State Bank of Arkansas."

On the 16th the House concnrred in the reaolntion of the Senate.
Messrs. Ringgold, Fnrgnsou, and McCamy, were appointed members
of Ihe committee on the part of the senate, and Messrs. Davies, Cald-
well, Dickinson, Smith, Lasater, and Drennen, on the part of th&
house.

On the 4th of October, Mr. Binggold, as chairman of the committee,
made a report in which he recommended the establishment of both the
Bank of the State and the Real Estate Bank. As the foundation of a
policy which involved the State and the people in inextricable embar-
rassments, this report mnst be given at length.

" The joint committee, to whom was referred the subject of hanking,
beg leave to submit to the legislature a few brief considerations on the
Bu^ect of banking, in support of the charters as reported hy the com-
mittee.

"The committee having estimated the beneficial effects of the desired
institutions npon the great interests of agriculture, manufactures, and
commerce, and, in fact, upon the common prosperity of all classes of
the community, urge the policy of passing the charters as reported,
being every way conducive to the prosperity of our new State.

" South Carolina, C^rgia, and Alaoama, have created banks npon
their faith and public funds, for the supply of revenue, and success
has attended these institutions through a long course of years ; and
they have realized the great advantages anticipated, and largely con-
tributed to their prosperity. Why not Arkansas improve her effective
means and productive prerogative, for the common benefit and accom-
modation ?

"The privilege of banking is certainly of infinite value, aud it is
doubtless susceptible of vast improvement, as well in reganl to reve-
nue as to the convenience of the people. As regards the expediency
of the measure, it might be sucoessfully contended that with the means
derived from the general government, by the distribution of the surplus
revenne from the several States, the five per centum on the sales of

Eablic lands, the funds which will arise from the sales of the seminary
kods, and other resources, with a limited portion of the public credit,
an amount of income might be derived to meet the whole expenditurea
of 90vemmci»< in a few years, without resorting to other flnandal
H. Ex. Do«. 112 12 „„„„,Cooglc

178 CONDITION OF THE BANKS.

operations, bnt for snch objects of iDteroal iinproTem«Dt as the State
might think best or deem necessary.

" The charter of the 8tate Bank pledges the &ith of the State for
one million dollars ; and it has been the policy of other States to
procure means from foreign capitalists ; and little doubt remains but
the present time is esteemed to be the most aospicious for sach a par-
poBe, as it is believed that the State cotild borrow any desirable amonnt
of capital at an annual charge of five per centum, if not upon better
terms. The capital being loaned at eight per centum per snnam,
being three per centum in favor of the State, added to a btmking privi-
Uge of issuing three for one on the actual capitctl ao vested, vill produce
an Bccnmulatiou sufficient to redeem the whole in lees than twenty
years.

" As a correct test of an adequate supply of circulating medituDt
properly proportionate to the demand of industry and commerce in
every civilized society, we may assume it as a principle applicable to
all stages of society, that the active capital of a country should hear a
fair and reasonable proportion to that which is fixed and permanent ;
and whenever real estate is converted into active capital at a fair valu-
ation, and muney can be obtained readily, at a reasonable rate of
interest, on secure mortgages of real estate, that country is making
rapid advances in a commercial and agricultural point of view \ and
without banking facilities such cannot be the case. And Arkansas,
should we not charter the banks asked for, will be at least twen^-
five years behind where she would be if a liberal policy is extended
by the present legislature. The productive classes of the community
are the ones engaged in agriculture. Afibrd them no means by loans
secured by mortgages on real estate, and the operatiuns of productive
industry are thus impeded by withholding that capital which would
contribute to their prosperity. Such institutions would infuse new
vigor into the industry of our State, animate the droopiDg energies of
those who are engaged in the cultivation, [of the soil,Jand open a
large field for the profitable employment of the capital of the country.
" The institutions proposed by the committee, if passed into a law,
would give a new direction as well as a new impulse to industry, and
prove the means of augmenting the State revenue by opening and
improving lands which would otherwise remain idle for years.

" There is no class who would not be benefitted, either directly or
indirectly, by the introduction and discreet extension of banking
institutions, as reported by the committee. All writers on politicu
economy strongly support the position that, where a scarcity of circu-
lating medium prevails industry cannot be carried on ; for those who
have solid property find it difficult to turn any commodity into money,
and all energy and improvement ceases ; for want of means to stimu-
late the man he is content to live only, not improve.

" There is no view of the subject, as regards the State Bank charter,
but what is the result of infinite value to the State. It will, in the
first place, control our circulating medium, and give par value to our
scrip in a short time ; it will add great facilities to the commnnity at
large, and make & aaie depository for all the reeooroee of the State,

n,g:,.ndtyC00glc

CONDITION OF TEE BANES. 179

sod give US credit abroad ; it will yield to the State, when in fall
operation, a sum not less than fifty tlwuaand dollars per annum.

"All these things properly considered will, in the opinion of the
committee, do away all these idle prejudices so commonly entertained
against banking institotions, without any assignable reasons, other
than those founded on waut of auGBcient ioformatioa as regards their
beneficial effects."

This argn mentation, specioas as it was in the eyes of its authors,
and in the eyes of many of those to whom it was addressed, proceeded
throughout on wrong principles.

1. The authors of the report committed the common error of
confounding want of capital with want of currency. The people of
Arkansas were then in great want of capital, as they are now, and as
they will continue to be till the resources of the State are fully
developed ; but then, as now, they required but little circulating
medium, because then, as now, they bad but few things to circulate.
If three millions in gold and silver coin had been thrown into circula-
tion among them it would all, but the small portion necessary for
current use, have left the State in exchange for articles the people
wanted more than gold and silver. The like result would have tol-
lowed if three millions in the notes of the best banks in the country
had been thrown into circulation among them. Where, owing to the
fewness of the commodities to be circulated, the permanent demand
for circulating medium is small, the permanent supply will be small
also, provided the circulating medium be of sound character.

2. It is desirable that " the active capital of a country should bear
a&ir proportion to that which is fixed and permanent," but circulating ■
medium, when it exists in the form ofpromises to pay, is not circu-
lating capital, but circiUating debt. Through the agency of banks,
»uch circulating medium can be easily created, ana to any extent
desired. Bat circulating capital can be created only by industry
and economy. It cannot be suddenly spoken into existence by acts
of assembly.

3. Beal estate becomes "active capital" the moment that it yields an
income in form of either rent or produce. But wild lands which yield
no income are a poor foundation for back stock. And only the net
revenue of improved estates can be applied to the payment of debts
dne to banks, and consequently to the support of their current credits.

4. Even on the supposition that paper money banking is theoreti-
cally correct, there is no room for such banks except where the people
have money to deposit, or commercial notes of short dates to oner for
discount. In order to keep at the par notes they issue, banks have to
redeem the whole amount once in sixty or ninety days, on an average,
either by receiving them in payment of notes discounted, or by giving

Er funds for them. The daily current that flows into a bank must
equal to the daily current that flows out, in order that it may pre-
serve its credit. AH the operations of a bank, or at least all that
exceed the amount of its bona fide capital actually paid in, must be con-
fined to notes based on real transactions, and having but a few months to
run. Loans for snch short terms are of little or no use in an agricnl-
tnral community. If a &rmer or planter wishes to borrow, he wishes

180 CONDITION OF THE BANES.

to borrow for at ]eaat a year. The like is trae of most merchanto m
newly settled conntries. According to Adam Smith, the credits
vhich Eogliah merchantB used to grant to American meK^ants,
preriouB to the reTolntionary war, were usaally from two to three
years.

5. If a bank make long loans, as all it can then lend will be bnt
little more than its real capital actnally paid in, all it receives in the
way of discoaut will not be eqnal to the common interest of money
and the expenses of management.

6. So fur from issuing "three to one," the banks of the United
States do not, on an average, issue one to three on the amoant of
capital paid in.

7. liC by "the banking privilege of isBuing three to one," the
committee did not mean notes for circulation, but the aggregate of
investments supposed to yield income, here too they erred. The
aggregate of such investments, taking the banks throu^hotit the Union,
is bnt little more than two for one in the paid up capital.

8. So far from issuing notf^s in the proportion of three to one on
the capital paid in, prndeBt bankers do not think it fit to issue more
than three to one of the specie actually on hand. The laws of
Louisiana require the banks of that State to have at all times on hand
an amount of specie equal to one-thiid of both their circulation and
deposits,

9. The committee erred grossly in supposing that withont banks
there can be no lending on Dond and mortgage. Long before banks
were established in any part of the country, this was the favorite
mode of lending. And, even to this day, bnt a small portion of the
loans on bond and mortgage are made through the instrumentality of
the banks.

10. Of all kinds of banks those operating exclusively in government
funds are the worst. It is the interest of the managers of such
institutions to get as much out of them as they can for themselves
and their fovorites. Preventing losses to the State is a secondary con-
cern. Two of the banks that the committee set forth as examples,
the State Bank of Alabama and the State Bank of Georgia, have gone
to destruction. The true condition of the third, the Bank of the
State of South Carolina, cannot be known till the time oomes for
winding it up.

The principles laid down by the committee were, however, received
without examination, and in accordance therewith a bill was brought
in to establish a bank with a capital of one million of dollars, to be
raised by a sale of the bonds of the State, to which million should be
added the State's share of the surplus revenue of the United States, the
five per centum derived from the sale of the public land, the seminary
and saline fund, and all the other funds of the State.

At this very time the general assembly had before it a report from
Charles P. Bertrand, the treasurer, stating that the seminary fund
amounted to |1,965 II, of which the amount of |1,807 22 had been
lent. But that, " finding it impossible in most cases to collect even
the interest," he had deemed it expedient to renew the notes for both
principal and interest, making them payable in twelve months, and

iX'-ooglc

CONDmON OP THE BANKS. 181

bearing interest from date. With this fact staring them in the face,
the general assembly resolved to lend not only all the money the State
then posflessed, or might thereafter posBesa, bnt all the money it might
be able to borrow.

On the 18th of October this bill, so fraught with woe to the State
and to the people, was paseed in the senate by a vote of 13 to 3. The

Sas were MeHsrs. Ball, Clark, Ferguson, Hill, Izard, McCamy, McKean,
cLain, Ringgold, Smith, SaunderB, Thornton, and WilliainsoD. The
nays were Meesrs. Brown, Kuykendall, and 8. G. Boaoe, In the
house it was passed on the 20th of the same month without a formal
division.

On November the second the bill was approved by the governor, and
on the same day Jacob Brown was elected president of the principal
bank at Little Bock, and Messrs. Samuel M. Rutherford, Edward Cross,
Wood Tucker, John McLain, William B, Wait, James DeBaun, David
G. filler, David Fulton, William Field, Richard C. Byrd, Elijah A.
Moore, and Chester Ashley were chosen directors.

David W, Lowe was elected president of the branch at Batesville,
and Daniel J. Chapman, John Miller, William More, Charles H. Fel-
ham, John Robinson, J. Anthony, Robert Smith, Lawson Henderson,
and Joseph Egner were made directors.

James McKissick was elected president of the branch at Fayette-
ville, and William T, Larrimore, Lodowick Brodie, James Byrnside,
William Skelton, Alfred Wallace, Maurice Wright, John Henry,
Alfred Henderson, and Philemon Williamson were chosen directors.

When this general assembly commenced its session the debt of the
State was less than nine ihoasand dollars, (|8,694 96f.) Before it
adjourned it passed acts to involve the State and the people in debt to
the amount of three million and forty thousand dollars, namely: One
million to establish the State Bank, two millions for thebeneSt of the
Real Estate Bank, and forty thousand dollars to pay the current
expenses of the State government.

On the loth of November, 1836, the directors at Little Rock held
their first meeting, and resolved to request the governor to have the
bonds dated January 1, 1837. On the same day they appointed a
committee of correspondence to open a negotiation with foreign capi-
talists for the disposal of the bonds ; and requested the president to
ascertain from the Secretary of the Treasury of the United States on what
conditions the deposits of the public money conld be obtained for the
bank.

On the 12th of January, 1837, instructions were given to B.C. Byrd
to contract for the engraving of suitable bank note plates.

Every effort was thus made to bring the bank into operation at the
earliest day possible. Bnt, owing to the state of the times, it was found
impracticable to negotiate any large amount of bonds bearing only
five per cent, interest. In the spring of the year an arrangement was
entered into with the War Department for the sale of bonds to the
amount of |300,000, bnt before it could be fully carried into effect
the hanks throughout the Union suspended specie payment, aqd
(100,000 was all that was realized during the year from that source.

This was not the only disappointment the directors were doomed to

Xiocwic

182 CONDITION OF IHE BANKS.

suffer. The first installment of the United States revenae was doe on
the first day of January. Early in February the treaearer of the
State (Mr. Woodruff) received two tranafer drafts from the Secretary
of the Treasury of the United BtAtes, one for (45,583 83 on the Planter's
Bank of MiBsiHsippi, and the other for |50,000 on the Agricultural
Bank of the same State. The first mentioned draft he exchanged with
the United States receiver at Little Rock for an equal amount of specie.
The latter, as he had no safe place in which to deposit the money, and
as there was no probability of the hank's going into operation for
several months, he deferred collecting until the second installment
should fall due. On the 1st of April he received two other drafts for
the like amount on the same banks, and in about two weeks afterwards
he started for Natchez for the purpose of receiving payment of these
draJta, and also of the |60,000 due on the first installment.

He arrived at Natchez on the ?3d of April, "just at the commence-
ment of the run on the banks of Mississippi and Louisiana, when their
counters were constantly crowded during business hours with throngs
of traders and others, all clamorous for specie in exchange for the large
rcll of notes which they eagerly presented."

Both the banks made very fair promises, but Mr. Woodruff found
that if he made a peremptory demand for specie for the whole
amount of the drafts he would probably get nothing. He therefore
deemed it advisable to accept from the Planter's Bank bills of exchange
on New Orleans for |45,683 83, and to take from the Agricultural
Bank her guaranty to deliver at Little Rock on the 1st of July (100,000
in specie, free of risk and expense.

Proceeding to New Orleans, Mr. Woodruff presented the drafts
which he hsid obtained from the Planter's Bank and received specie
for them, which specie he brought with him to Little Rock.

In a few days after his return the news came of the suspension of
specie payment by both the Planter's Bank and the Agricultural
Bank. This induced Mr. Woodruff to pay a second visit to Natchez.
The cashier of the Agricultural Bank promised to do the best he
could, but the promises were of so indefinite a nature that Mr. W.
could not confide in them. Ue therefore extended his journey to
Washington City, and the Secretary of the Treasury, as the best he
could do, gave him drafts on banks in Cincinnati, Louisville and New
Orleans, in exchange for the drails on the Agricultural Bank of Mis-
sissippi.

The third instalment of the surplus revenue was due on the 1st of
July, and drafts were receivedfor it on the Planter's Bank for (50,000,
and on the Agricultural Bank for (45,583 83. Negotiations were
entered into with these institutions in hopes of prevailing on them to
pay at least a part of these drafts iu specie or in New Orleans paper;
but they both steadily refused to pay in anything but their own notes;
and such payment the Bank of the State of Arkansas was finally
obliged to accept.

As there was no longer an apparent surplus, but a real deficit in
the Unitod States Treasury, Congress, by a special act, relieved the
Secretary of the Treasury from the obligation of making a depoait of
the fourth instalment with the States.

n,g:,.-,.dtyC00glc

COHWTION OF THE BAKEa. 188

"Wfaea the act tros psBsed to establish the baak, it was confidently
espected that one million dollars would easily be raised by the sale of
bonds, and that |382,333 32 would be realized in specie or its eqai-
valent from the State's share of the sarplas revenue of the United
States. Instead of a million, only one hundred thousaad dollars
were obtained in exchange for bonds, and instead of {382,333 32 from
the United States sorplus revenue, only |286,757 47. Of this last
amount only f91,167 67 was in specie. The residue was in the notes
of the non-specie paying banks of Ohio, Kentucky, Louisiana and
Mississippi.

The directors at Little Bock were not the men to he daunted by difiS-
onlties. On the 8th of August, 1837, they commenced disconnting.

At that time all the funds actually on hand were $90,000 in gold
and silver, and |66,000 in Ohio and Kentucky bank notes. But they
enlarged their ability to lend by the issue of post-notes payable twelve
months after date, and the treasurer, by agreeing to receive such
notes for all public dues, made them the official money of the State.

This was an unfortunate proceeding. By it the bank stamped itself
at the very beginning as a non-specie paying institution, and thereby
prevented itself from acquiring credit abroad. As a consequence,
even in the short period in whi«i it actually paid specie, its notes were
never at a less discount than 8 or 10 per cent, in Kew Orleans, and
had not so much as the honor of a quotation in the prices current of
Ifew York and Philadelphia. It is true that if the bank had confined
itself to issues of notes payable on demand, it could not have made
loans and discounts beyond the amount of capital paid in. But as we
shall see hereafter, even the contrivance of issuing inconvertible paper
did not, after the bank was brought into full operation, enable it to
extend its loans and discounts much beyond the amount of its capital.
It failed to odd sound credit to its capital, and thereby was much re-
stricted in its operations.

In October and November exchange on the east could not be pro-
oared at less than 8 to 10 per cent, premium, and specie bore a pre-
miaia of 8 to 10 per cent, in "current paper." As this current
paper, consisting chiefly of Arkansas bank post-notos, was the official
money of the State, specie could not circulate concurrently with it.
This led to the issue of " shinplasters " by individuals and municipal
corporations.

A special session of the general assembly commenced at Little Bock
on the 5th of November, 1837. On the 7th there was laid before the
Senate a report from Major Jacob Brown, the president of the State
Bank, accompanied by sundry documents, showing the difficulties the
directors had encountered, and the extent of their operations. From
these it appeared that the amount of capital paid in, up to November
9, 1837, was $413,106 29, and that it had been derived from the fol-
lowing sources:

Sale of State bonds $100,000 00

United States surplus revenue 286,166 49

Five per cent, fund 26,725 00

Bemiooryfund 96 30

Serine or salt spring fimd v- jL27 50

' ' ''' ' o

184 COSDTTIOS OF THE B1HK8.

Of the total, $216,726 co&siatedof specie and United States treasniy
drafts, and |196,381 29 of the paper of non-specie paying banks in
Ohio, Kentucky, Louisiana and Miasissippi. As was obBerved by the
committee on banks, in their report to the legislature in 1867: " One
of the objects professedly in view in establishiDg this bank was that of
supplying the State with a soand circnlating medium, and it com-
menced operations by circniating the notes of distant and non-Bpecie
paying banks, some of wbkh proved to be ultimately worthless, and
by isBue of its own, which, as they increased the mass of notes not
redeemable in specie, served still further to depreciate the currency
and increase the difficulty of resuming specie payments."

So rapidly did the bank proceed in lending, that it had on hand OQ
the 6th of November only $916 in the inconvertible paper ef other
hanks, and it had added to the inconvertible currency then in circula-
tion $91,255 in its own paper, that being the amount of its post-notee
then in circulation, payable twelve months after date. Of Dot« of
its own payable on demand it had issued only |8,310.

The money received from the Secretary of War, ($100,000,) having
been set apart to establish the branches at Fayetterille and Batesvillej
there remained for capital of the principal bank, $313,105 29, on which
it had made loans and discounts to the amount of $322,141 98.

The amount of specie and United States treasury warrants on hand
was considerable, being $180,033 14, independently of $31,000 doe to
the branch at BatesviUe, and $150,000 specially deposited by one of
the disbursing officers of the United States.

On the 18th of November the joint committee on banks made
a report, through their chairman, Mr. Ferguson, in which they be-
stowed the highest commendation on the directors, and declared that
the bank had done great good to the people :

"The directors, m all their proceedings, have had an eye single
to the safety of the institution and the welfare of the State ; basing
all their operations on such rules of prudence as would hazard neither
its safety nor its credit, and, at the same time, extend its means to
the use and relief of the people. Commencing operations at a time
when other institutions were trembling on the verge of dissolution,
when, from one end of the Union to the other, banks^which had stood
the shocks and revolutions of trade for more than a quarter of a cen-
tury, were compelled to suspend payment ; and when all parts of the
country were watching with an eye of vigilance and suspicion the
movements of all banking institutions, it was a responsible as well aa
an arduous duty for them to perform. To commence the busineBS
of a new institution in a manner that would sustain its credit and
inspire confidence in its operations would have been a duty difficult
for practiced financiers — it was more so to men just commencing their
practical experience where the system of finance has had but few
operations and is ueceBsarily but little understood. It has been per-
formed, however, and your committee are proud to say the experiment
has been successful beyond the most sanguine expectations of its
friends. A large portion of the people of the State, and particularly
in those sections most oppressed by the recent change in the monetary
affairs of the country, have been relieved ; a curreacy of our own has

n,g:,.,dtyC00glc

CONtmON OF THE BASKS. 185

been provided in Hen of that fbrnished b; other States, mnch of which
was greatly depreciated ; and this without extending the circulation
of the bank to a point beyond h&lf the amount of gold and silver ob
hand ; ttsaving the institutioQ at this time prepared and ready to carry
out any course of policy which the general assembly may deem it
advisable to pursue."

The committee then proceeded "to recommend the paasage of an
act authorizing the governor to sign the bonds of the State to the
amount of one million dollars, including those now on hand and unsold
by the bank, and to appoint an agent to proceed without delay to some
one of onr eastern cities and efieot a sale of them for eastern credits.
The time is believed to be favorable for negotiating such securities,
and the condition of the country and the best interests of the State, in
the opieion of your committee, demand snch a measure. In a country
like ours, where all the elements of wealth lie scattered in profusion
around us, and where it is in the power of the State to bring them
into employment by the introduction of foreign capital, which alone
is wanted to start the springs of enterprise, it is the duty of the legis-
lature te extend every facility in its power to effect it. Though it
may be considered by the over-cantious a hazard to infuse into great
masses of the people that active spring which has made the United
States a powerful nation in the same time that other communities
have attained to the beginning of a name, yet experience has proven
all the beat means of mankind are promoted by it. Wealth, tiappi-
nesB, the comforts and blessings of life, intelligence, confidence at
home and respect abroad, are the consequences of its irresistible im-
polses, and with ns it requires but a system of liberal legislation
to start it into action. The policy pursued by several of our young
sister States fully sustains the truth of this assertion, and their example
the people of this State, it is hoped, will be emulous to follow."

As the banks of the Atlantic States were then ^1 in a steto of
sospension, the recommendation ot the committee was substantially
that the bonds of the State of Arkansas should be exchanged for the

faper of non-specie paying hanks. Bringing foreign capital into the
tate would have been well, if it had not been connected with such
a "system of liberal legislation" as to multiply debt to many times
the amoant of that capital.

In accordance with the recommendation of the committee, an act
was passed (December 18) authorizing the issue of bonds to an amount
not exceeding one million dollars, at a rate of interest not exceeding
siic per cent. As this act did not repeal that provision of the act for
establishing the bank which authorized the issue of bonds to the
amoant of one million at a rate of interest not exceeding five per
cent., the two acts taken together authorized those concerned in the
institution to dispose of State bonds to the amount of two millions.

On the same day a resolution was passed authorizing the directors
at Little Bock to issue two hundred thousand dollars in post notes,
payable in twelve months after date, and the directors of each branch
to issue post notes, payable in twelve months after date, not ezceedihg
two dollars for one of capital paid into each branch. Previous to this,

n,g:,.,dtyC00glc

186 CONDITIOS OF THE

the iBsning of poBt-notea was entirely anantliorized by if not in direct
oontrareDtioQ of lav.

By another act, passed December 15, the lesialatare attempted to
extend still further theeuppoeedadTantagefl of toe system by anthoriz-
ing the establishment of a Dranch at the Post of Arkansas.

Before the close of the year, Major Jacob Brown resiened, becaoM
the position be held in the hank was incompatible with nis duties as
an officer of the United States, and Mfyor William Field was elected
President in bis place.

On the 12tb of Jannary, 1838, the branch at Fayetterille com-
menced discounting. And on the same day Mr. Brodie sabmitted the
followiD(f resolntion, which was nnanimonsly adopted :

" As the directors of this hank do not reoeiTe any compensation for
(heir attentions, and as they necessarily expend much time, labor, and
money in the management of said bank, it is therefore resolved, that
the cashier be authorized, and he is hereby instructed, to loan to the
said directors, or any one of them, at the usual rate of interest, on
the presentation of a note, with two securities, either of which is sup-
posed to possess ample means to meet the demand, payable twelve
months after date, for any snm not exceeding the amount contem-
plated in the charter, to wit : the sum of fen thousand doliars, the loan
to be made in the usual issues, that is to say, in post-notes payable
twelve months after date, with a due proportion of such money aa may
be made payable on demand. And be it further resolved, that said
directors, or either of them, after having drawn money as aforesaid,
shall have the privilege of renewing their notes as they become dne,
tmlil it shaU be necessary for the bank to call in all its debts, and no
one shall be permitted to borrow an €uiditional sum after having drawn
aa aforesaid, until all the former demands shall have been satisfied ;
but nothing in the preceding resolntion shall be so construed as to
authorize the cashier to loan to any director an amount exceeding two
thousand dollars, without the consent of the directory at a regular
discount day."

When it is considered that up to January, 1839, (a year after the
date of this resolution,) this branch was operating on a bare capital of
$110,000, the directors must be regarded as acting towards themselves
with great liberality, inasmuch as they resolved to lend to tbemsetvea
permaDBDtly the sum of $90,000. They also acted liberally towards
others, as it is shown by their books that they discoanted nearly all
the notes that were offered.

On the 5tb of February, the branch at Batesville commenced dis-
counting. Thus, in the early part of 1838, the mother bank and two
of its branches were in operation, and all on a capital of little more
than $400,000, a great part of which capital consisted originally of
the inconvertible paper of the banks of the neighborlDg Btates.

In June and Joly, the loans and discounts of the bank and its two
braucbes amounted to $689,264, the circulation payable on demand to
i7,'786, and the post^notes, payable twelve months after date, to
$241,913. The specie on hand amounted to $241,923.

The most of the notes discounted had eight months to run. Specde
bore a premiom as high, at times, as 10 to IS per oent., when esti-

CONDITION OF THE BUTK8. 187

mated Id the poat-notes of the bask, which ceustitated the chief part
of the carrency.

Kot long afler fkia, (Aagoat 27, 1838, boadg to the amount of one
million dollarH were sold to the North AmericaQ Trust and Banking
Company at New York, on aach terms as placed |300,000 imme-
diately at the command of the bank and its branches. The residue,
with an allowance for interest, was payable in monthly inatallmentfl,
commencing with the first day of January, 1839, and ending with the
first day of February, 1840.

According to a statement of November 5, 1838, the capital stock of
the principal hank at Little Rock, and the branches at Fayetteritle
and BatesTiUe, then paid up, amonated to (1,363,105 29, the loans
and discoante to $763,737 22, the real estate to 110,743 6H, and the
specie on hand to $316,045 76. There was aae from the North
American Trust and Banking Company the sum of $671,667 27, and
from other banks, (including their notes on hand,) $72,994 70.

On the other hand, there was due for notes in circulation $461,776,
and to depositors and other banks $143,906 57.

Of the circulation, only $83,840 was payable on demand. The
residae, $377,935, consisted of post-notes not yet arrived at maturity.

The condition of the institution at this time was one of great
strength, and on the first day of January, 1839, the principal bank at
Little Rock and the branches at Fayetteville and BatesriHe com-
menced paying specie on all the notes they had then in circulation,
including post notes that were not due till twelve months after date.
The brancb at the Post of Arkansas, which commeaoed discoanting on
the 3d day of January, 1839, never issued poet-notes.

At this session, the legislature, by an act passed December 18, 1838,
made an efibrt to extend the supposed advantages of the system, by
authorizing the establishment of an additional branch at the town of
Washiugton, with'a capital of $300,000, to be raised by sale of new
six per cent, bonds. They also directed such of the five per cent, bonds
as remained nndisposed of to be cancelled.

It is here to be observed, that though the bank and its three
branches all professed to pay specie on demand, they resorted to such
means as were in their power to make that demand as light as possible.
The chief contrivance was that each branch (the branch at the Poet
perhaps excepted) should pay out not its own notes but the notes of
come distant branch, "I have," says Hr, Ringgold, the cashier of
the branch at Batesville, writing to Mr. Ball, the cashier of the branch
at Fayetteville, under date of February 12, 1839, " received and paid
out in your paper, since January 1, some $10,000 or $12,000, and the
amount on hand at this time is small, (say $3,000.) This gives your
paper a circulation north and east, and I hope yoa will give oars a
circulation west."

At first the mother bank appeared reluctant to adopt this policy,
bat afterwards entered into it so heartily that the circulating medium
of Little Rock consisted chiefly of notes of the Fayetteville branch.
They were receivable for bank debts, but were at a disconnt of two

ir cent, for specie. Thus while the bank and its branches all pro-
* to pay specie on demand, they did not flirnisb a paper droolo-

iX'-ooglc

per oen
fessed t

198 CONDITIOM OF THE BAKES.

tioD convertible into specie, for the; took care to oircalate their notes
at saeh a diBta.ace from the place of isene that they conid not readily
bejireeented for paymeot.

If this to any one may aeem an nnworthy subterfueei it is proper
to state that it is a common practice where the branch bank system
preTaila. The great bank of tna United States did not blash to adopt
it. And if rumor is to be believed, the banks of Virginia, North
Carolina, Tennessee^ and some other States, still persist in it. For
example, a branch in the moantsins of Virginia will give circulation
to the notes of a branch on the sea-board, while the branch on the
sea-board will return the favor by giving circulation to the notes of
the branch in the mountains. This is the reason why exchange at
New York on Virginia and North Carolina is at a greater discount
than exchange on South Oarolina. The paper currencies of Virginia,
North Carolina, and Tennessee are, even in the best of times, not
convertible into specie, because the manufacturers of that currenoy
continue to circulate it where it cannot be easily presented for payment.

As already mentioned, the branch at Arkansas Poet commenced
business on the 3d of January, 1839. On that day it discounted notes
to the amount of |60,950, all having twelve months to run. In grant-
ing loans for such a long date it acted on the principles of a loan office
rather than of a bank ; and thus the directors, by the first step they
took, laid the foundation for future difficulties. Before the close of
the month they added $31,900 to these loans and dieconots, none of
which were for less than six months.

January 24 the president stated that " from the apparent difficulty
of obtaining a circulation of oar paper at the present time he felt it
his duty to apprise the board that it would be necessary to restrict
the loans to a shorter period. That the loans for twelve months
should not exceed |100,000, including those taken by directors,"
and that it would hereatter be necessary to discriminate between ap-
plicants as well as counties.

January 31 the President made a still longer exhortation to the
board. ..In it he said, " Yon will see by the statement just made that
our circulation is $64,000. Could wa reasonably calculate on this
sum bein^ in actual use, passing from hand to hand as a circulating
medium, it would afford me pleasure to recommend a continuance of
the liberal policy heretofore observed in respect to discounts. But the
daily demand at our counter leads conclusively to the opinion that
not more than $16,000 or $16,000 of that sum is in actual transit from
band to hand, the remainder being held up in large sums for the pur-
pose of calling on the bank for specie or eastern exchange."

April 24. The president Bai<^ "the embarrassment in the south
continues to increase daily. Most of the banks in Mississippi, which
had resumed specie payments in January last, have again suspended,
and others have come to the alternative of issuing post-notes. Also
Bume of the banks in Lousiana, as I am credibly informed, are issuing
post-notes to protect themselves from the great demand for specie.
The banks in Arkansas have for some time back stopped discounting,
and so far as I can learn the demands upon them nave been such so
considerably to diminish the specie fund, and greatly curtail the cir-

X.ocwlc

COHBITIOK OF THE B1NK& 189

calation. Tbe Btatemeot of this bank, jost read, abows to you that
the specie cootinaes eradually to dimmish withoat aaythiag that may
be ooQaidered a ran.

NotwithetandioK this, the directors took immediate measarea for the
erectioD of a costly banking houee.

Hay 30. The president said, "Here, and in erery part of the State
to which my information extends, there appears to be a great scarcity
of money; I am, however, happy to inform you that the situation of
tbe principal bank and branches is such as will enable them to meet
KOj crisis or emergency that may or can possibly happen. • * *
In coDseqnence of the protest of bills of exchange beloDging to this
bank in ^ew Orleans, our resources are not so great at this time u
we had good rearon to expect they would be. I am also afraid that
tbe great scarcity of money will cause many of these persons who ob<
taioed disconnts on notes i>ayable at maturi^ to ask for a renewal or
farther extension of time to pay them."

October 31. The branch resolved to suspend specie payments.

Snch is briefly the history of the only office of tbe bank of the Stata
of Arkansas that commenced operations with a bona fide payment of
specie, lo less than 9 months it finished its course, oecause it, from
the very beginning, proceeded on false principles.

The history of the mother bank of Little Bock and of the branches
at Fayetteville and Batesville was very similar to that of the branch
at the Post of Arkansas.

On the 2Tth of February it was ordered by the board at the prin-
cipal bank that perHons obtaining disconnts should receive the notes
of the branches, "and such other funds as we may have to spare."

February 23, ve read that " the paper of tbe bank is at 8 to 10 per
cent, discount at New Orleans." So bad a character had the bank
got by commencing operations by the issue of pont-notes, that tbe
assumption of specie payments could not establish its credit.

May 17. " Our banks all pay specie, but it is at their own counters,
and the expense of collecting from the Fayetteville branch, which
supplies most of the circulation, is 2 per cent."

September 4. For the last six or eight months a run on the banks.
" There is great distress in thio part of the country."

When the hank at Little Bock assumed specie payments, January
1, 1839, its circulation amonnted to $214,900, and its specie to
$131,392. When it suspended specie payments, November 1, 1839,
its circulation was reduced to $43,420, and its specie to |76,678 17.

At the time tbe bank and its branches suspended specie payments
(November, 1839,) they had, on a capital paid in of $1,601,088, out-
standing loans and disconnts of the amount of $1,644,617. Thns the
loans and discounts exceeded the capital in the sum of only $43^629.
This was very different from what the founders of the system had
expected. They supposed that, "through the hanking privilege of
issuing three to one,' a million of capital borrowed from abroad would
perform at home the functions of three or four millions.

At this time the circulation of the bank and its branches amounted
to $301,310, and the specie in their vaults to $264,100. As the notes
in circulation exceeded tbe gold and silver on band in th« sum of only

190 CONDITION OP THE BAKK8.

(37,210, there was no immediate Deceaaity for suspending specie pay-
ment. There were, to be sore, on the booss, "deposits" to the amonat
of (162,717, bnt only a portion of these were payable on demand.
They consisted chiefly of part payments by debtors of the bank. What
was owing by banks in other States, ($142,946,) and the notes of other
banks on hand, ($39,313,) were more than a counterpoise for what
was demanded by depositors, and for the amount in which the notes
in circulation exceeded the specie on hand. The immediate means of
the bank and its branches omonnted to|469,949, while the immediate
liabilities could hardly have amounted to |400,000.

As in the case of the Beal Estate Bank, so in the case of the State
Band, the saspension of specie payments was brought about, not by
necessity, but by policy. The bank and its branches might all hare
continned to pay their notes on demand, bnt by so doing they would
hare put it out of their power to make new discounts, and perhaps
hare made it necessary to insist on prompt payment of " curtail and
interest" on old discounts. This would hare exposed even the
directors themeelres to great inconreniencas. "The people wanted
relief," and among the people none more than the directors themselres.
They therefore determined to suspend specie payments.

December 5, 1839, the board at the Post of Arkansas " resolved, that
the resolution of the 4th of April last, Buspending discounts by this
board, be and the same is hereby rescinded.

The latter part of 1839 and the beginning of 1840 were marked
with new troubles. Kews was received that the North American Trust
and Banking Company had dishonored the drafts of the branches at
Fayetteville, Eatesville, and the Post of Arkansas. The Trust Com-
pany wished a delay of twelve months on $200,000, which it owed to
the State Bank and branches, or, if this proposition should not be
acceded to, it offered to return bonds of the State which it still held
to the amount of (200,000. Major Field went to New York as agent
of the State Bank, and succeeded, though not without some diGBc^^,
in making some arrangement with the Trust Company.

January 2, 1840, we read in the records of the Post branch, '* onr
bills of exchange that we have purchased, payable at New Orleans,
have nearly all come back under protest,"

As the year advanced, trouble thickened. In September news was
received that the funds of this branch in the Philadelphia bank, some
four thousand dollars, had been attached by Biggs & Co., of that city.
This caused Mr. Luther Chase, the cashier, to address to that hooae
a letter, in which he said, "the suspension of the State Bank and
branches in 1839 was not a measure of necesuty on their part, but one
of prudence. By suspending, they were enabled to render to our
merchants and citisene generally, to a limited extent, the indulgenoe
and facilities so much needed by them in consequence of the sudden
fall in the price of our exports."

In Korember, news was receired that the North American Trnat
and Banking Company had again dishonored the checks of the Port
branch.

The mother bank hod also its difficulties to contend with. Thus
we read, under date of January 27, 1841 , in reference to the ooHeotion

tioiwlc

OOKDITIOM OF THE BAKKS. 191

of debts, "In all nndispated cases jndgmeat is obtained in six months,
bat by incnrring heavy expenses and getting the oo-vpera4ion of the
eheri^ payment can be delayed twelve months."

Under date of February 12 we find it on record: " We do not pay
ont onr own notes, which are conseqnently scarce. Bat current
Arkansas paper is abandant, and the character of all is estimated
alike at New Orleans, where the qaotation is 25 per cent, discount."

It is well worthy of remark that at the very time in which the
banks of Arkansas were in this wofnl plight, the bonds of the State
stood biffb in the London market. This appears from a letter of
Frederick Hnth & Co., of that city, nnder date of October 6, 1840,
addressed to the treasurer of the State, viz :

"For the sake of regularity, we beg to inform yon by the present,
that Colonel James Murray, acting in behalf of the Arkansas banbg,
(or rather of Beers & Go. ,) has made payable at our office the prin-
cipal and interest of the following bonds of theStateof Arkansas, to-
wit : [Here follows a description of the bonds, amounting in all to
1666,000,1 on which the half-yearly dividend amounts to |19,800 ;
which we nave to pay here on the Ist of January and Ist of July oi
every year.

" The last dividend due on the Ist of July was punctually remitted
by the banks, and we have no doubt that the next which will become
doe on the Ist of January, 1841, will also come forward in good time;
bat, at the suggestion of Colonel Uurray, we have, nevertheless,
thought it right to give you the above particulars, to serve for your
government, as, with a view to further sales of Arkansas stock in this
market, and to uphold the high character which it bears at present,
yon will be no less anxious than onrselves to co-operate, and to see
that all intermediate parties co-operate toward the punctual fnlflil-
ment of all the obligations of the State in this country."

Like most others connected with the banks of Arkansas, Frederick
Hnth & Co. were doomed to disappointment. They hoped, as appears
from letters of theirs, still on trust, that their agency in paying the
interest on Arkansas bonds in London would cause numerous consign-
ments of cotton to be mode " to their honse in Liverpool." For a
time they furnished the bank with regular statements of the varia-
tions of the cotton market. The officers of the banks had every dis-
position to ship to Liverpool as much cotton as would pay the interest
on the bonds due in London, but, unfortunately, had not the power.
On the 1st of October, 1840, the principal bank at Little Bock re-
samed specie payment. At that time its circulation amounted to
$32,340, and its specie $69,117 76. The branches, so far A-om
imitating this proceeding, denounced it as unwarrantable, affirming
that, in a case like this, the bank and its branches should all act to-
gether, and that a resumption could with propriety be brought about
only by an order of the general board.

In about a month afterward news was received that the North
American Trust and Banking Company had again dishonored the
drafts drawn upon it. This increased snll more the embarrassment
of the branches.

Od the 2d of November, 1840, the general assembly commenced ita

92 CONDITION OF THE BAKKS.

third seesioD. Ooveraor J. 8. Oonvay made, in his farewell addreea,
the following remarks :

" The sDbject of the Bnspeosion of specie payment hj our banks is
one in which the people throngbout this State hare justly manifested
mnch concern, and many of ns hare donbtless suffered considerable
inconTenience in consequence of that anspeneion.

" The resumption 01 specie payments by the parent hank of the
State institution at this place, has contribated hut little to velieve tu
from the inconvenience complained of, as bat a very inconsiderable
quantity of its paper is in circulation, for the good of the people
and credit of our State I most ardently hopetbe timeisat hand when
each banking institution within our limits will be so conditioned as to
he able to redeem with the hard dollars all its notes as they may be
presented for payment, I am not in posRession of any information
relative to either institution which enables me to know at what
probable period tbey will he thus happily conditioned. The general
suspension of specie payments by the banks in the whole south and
west seemed, to the conductors of ours, to create a necessity to follow
that example, for the preservation of our more infant institutions.

" The general assembly will doubtless give this subject a full, fair,
and impartial investigation, and adopt such measures as will require
the banks to resume at the earliest possible period, without endan-
gering the interests of the State and usefuluess of the institution; and
to prevent a recurrence of the evil, measures commensurate with the
importance of the subject will doubtless be adopted."

In his inaugural address, (November 6, 1840,) Governor Yell gave
his views fully and freely:

" The hanks of the country are stretching forth their countless
arms to grasp all that may be worth preserving, and toooften we find
legislative interposition either tacitly approving or openly jnstifyine
their acts of usurpation — and still we submit to this most odious ana
□njust uppression without seeming to comprehend the heartless tyranny
with which we are burdened.

" Are we ready to see the price of all our staple products raised and
depressed at the will and caprice of these corporations, with their
paper depreciated from twenty to fifty per cent, discount, to suit the
convenience of stockholders and debtors, and the avarice of brokers
and speculators? Rightly to remedy the existing evils, as faros

Erudence and sound policy will dictate, should be your first object,
ict the strong arm of lawful authority interpose to teach brokers and
stockjobbers a salutary lesson, who would pawn tfaeindnstry and pro-
perty of the country. Let no political or personal consideration swerve
yon from a scrutinizing and fearless discharge of your duty, to enforce
all proper means to bring back your depreciated State paper to a sound
specie standard, or lay the aze at the root of the evil. Your firmness
and decision in re-^toring them within their chartered limits may
confer some of the blessings contemplated by their framers ; and bjr a
aacred preservation of this rule public confidence may again he re-
stored, the price of property become more steady, and the laboring
classes receive a just compensation as the reword of their indoetry.
Even your public treasury has not escaped the rapadty of the timet;

COKDITIOH OF THE BANES. 193

as 70UT money has depreciated, the salaries of some of the officers of
the banks hare increased in an aqoal ratio. It is time to place checks
upon yonr treasnry that will in future prevent bank directors from
eren an indirect control of its funds. That power should be alone
exercised by the representatives of tbe people. I submit the propriety
of limiting by law the salaries of all the bank officers, and of pre-
scribing their number and grade.

" Tbe Bvils which have resulted to tbe great body of the community
from the late suspension are great and almost insufferable. It is a
very striking instance of the radical defects of the entire system in
every Eovernment ; and under every system we may look for revotu-
tions in business, consternation and distsess, notwithstanding tbe
oonntry may be otherwise in a growing and healthy condition. These
revolutions are, in some degree, owing to our commercial regulations.
Occasionally the balance of trade is against ns ; we then feel the effects
of a foreign debt, following upon excessive importations, aggravated
by tbe conseqnent redaction of the price of our exports in foreign
markets, and its corresponding depreciation at home. Every few years
this foreign balance has swept the country of specie, and of course
deranged the currency, and at times paralyzed and frustrated business,
bringing ruin upon thousands of our most enterprising and useful
citizens. Such a crisis produced the suspension in 1839, and the mis-
guided policy of many of our banks, by increasing their discounts Xo
near half a million of depreciated paper, placed them beyond the
possibility of an early resumption. Euch a course of policy may be
checked in futnre by the enactment of such laws as will make it not
only a forfeiture of the charter, but fine and ttnpmonnienf, for the
president and directors to issue or discount daring their suspension, or
tor the issuing at any time of a certain amount of paper Beyond the
amoant of specie in their vaults. So far as the currency of your own
State is concerned, you have the power to correct the evil. I then
respectfully submit tne propriety of a thorough investigation into the
condition of all the banks ; and upon their report should mainly depend
the character of your future -action. If it is found that they have oeen
managed with fidelity and prudence, it will tend to restore confidence,
and remove the strong prejudice that now exists in the public mind.
If, however, your apprehensions are not lessened by such investigation,
your duty to your constitnents and justice to the State will require
that no further liabilities shall be incurred by theState, (for the present
at least,) with such other conditions and restrictions as will best con-
duce to bring about a better state of things, or prevent a like suspen-
aion in futnre.

" Onr experience for the last twenty years has demonstrated that
the producing part of the community are not, in tbe end, benefitted by
the 'credit system,' The delusions in the splendid mansions and
BpriDgiDK Dp of towns, as if by magic, and tbe flooding of the country
with gocraa irom the Mississippi to the Indian boundary, will end too
often in ruin to the proprietors and owners. Unfortunately for our
State, all classes have participated in the delusion ; and all, more or
less, have suffered. ' When the day of reckoning came, the banks were
nnable or unwilling to meet the crisis, and the whole are now suffering
H. Ex. Doc. 112 13 C.O(v;lc

194 CONDITION OF THE BANKB.

not oaij from their own extravagance and overtrading, but are reaping
the curees of a depreciated currency.' This should teach us that
' credit ' is not wealth, and that the safest reliance is apoa our own
frugality and induetrioua habite."

It might be supposed, on reading these eloquent remarks, that Gov-
ernor Yell was writing the history of a commnaity nambering Bome
one or two millions, among whom paper money banks had been in
operation for at least half a century. But he was writing the history of
a State whose whole population, according to the censns of 1840, white
and black, male and female, old and young, amounted to only 97,574,
among whom paper money banks bad Seen bardly three years in
operation. •

The governor's views were not acceptable to the general assembly ;
or at least to a part of them. In their opinion the fault was, not that
there was too much, but that there was too little banking. One of
their first proceedings was to institute an in(iuiry why the branch at
Washington had not been put into operation. To this the reply was
that the bonds intended to serve as capital for that branch, ((300,000,)
though duly issued, conld not be sold ; and with this reply they had
to be satisfied.

Some extracts from a report signed by the Hon. W. D. Ferguson, and
presented to the senate on the 4th of December, will show the spirit of
the times :

"The committee on banks, to whom was referred that part of the
governor's message that relates to banks, have had the same under
consideration, and after a careful and mature investigation of the
snbji-ct. from the best information within the control of the committee,
tbey take pleasure in informing the general assembly and the citizens
of Arkansas that the fears of the Kovernor, expressed in bis messt^e,
that ' the evils which have resalted to the great body of the com-
munity from the late suspension are great and almost insnfferable,'
are not chargeable to the banks of Arkansas ; for, in the opinion of
the committee, there was no alternative left for the banks of the State
but to suspend specie payments at the time they did, or to act recreant
to tbemselvtis, and rninons to the citizens of the State, by continaiag
to pay the specie of the people out of their vaults to the ' avaricioos
brokers and speculators' of foreign States and cities, as it is a &ct well
known that the banks in Arkansas were the lost to suspend specie pay-
ments. And why should your banks have continued specie payments
after all the neighboring States with whom Arkansas had any inter-
course of trade had suspended specie payment, and specie had ceased
to be a circulating medium, but had become an artide of trade, and
that for exportation, unless they wished to gratify tbe ' avarice of
brokers and speculators ' to whom the citizens of Arkansas owe no
gratitude?

"In examining the principal bank of the State, the committee have
bad every facility afforded them hy tb'> officers of the hank, and have
made a full examination of the condition of the bank, and report that
they find the bank in a good condition, and all the statements in the
report of the bank to the general assembly correct. As respecta the re-
ports of the branchefl of the bank, your committee have had ho meatu

CONDITION OF THE B&NEB. 195

of comparing the reports with the state of the braocliea ; bat from the
high standing and Ability of the gentlemeD selected by the legislstare
as officers and directors of the several branches, jour committee have
no donbt of the correctness of the reports which show a gafe and soand
condition of the branches.

**••♦♦**

" The committee, before closing this report, feel themselves called on
to express to the general assembly their fnll and entire confidence in
the solvency of the several banks of this State, and their full ability to
mtihe good all their liabilities. The confidence of the committee has
been founded on th& following facts, namely : The several banks and
their branches are only liable for $995,906 of circalation, with availa-
ble means on hand of $881,278, and having owing to them from the
citizens of the State $3,838,690, leaving a balance of $3,724,068, oat
of which the banks owe depositors $364,790, which will still leave
$3,269,278 in favor of the banks a'ter paying all their present liabili-
ties. From these statements of facts it must he obvioos that all the
banks are perfectly solvent ami their paper good. But there is another fact
which is necessary to be referred to, which is, that the taxable property
in the State for the current year amounto to the sum of $26,603,326; and
the whole amount of the circulationof the banks is only $996,906, which
is bnt one dollar to represent $26 60 worth of property, which shows
conclusively that there is a scarcity of money in the country ; and the
committee will give it as their opinion that the restoration of the
currency to a healthy standard rests mainly with the people in estab-
lishing confidence among themselves in the solvency of the banks,
and strenuously maintaining the credit of the paper among themselves
in preference to the p&per of the banks of other States in which they
have no interest, and over which they have no control ; and the people
of Arkansas, in honor to themselves and in defence of the high reputa-
tion that the State now maintains in the great commercial cities of the
United States and Europe for the solvency and punctuality of their
banks, which has placed the bonds of this State, in the markets of New
York and London, in high standing. As evidence corroborating these
facte, the committee have the assurance of the agents appointed to
make the late negotiation of the bonds of the State tor the Real Estate
Bank, and the letter uf Frederick Huth & Co. , the holders of $666,000
worth of Arkansas State bonds, dated London October 3, 1840, in
which they say that the bonds of our State have a high standing in
the London market. And while the banks are giving the State snch
a fair reputation abroad, and the banks themselves entirely solvent,
the people, on a fair and correct showing of the facts, cannot be so rec-
reant to their own interests, and so regardless of the interest of this
State, as to pursue any coarse that would tend to depreciate their
bank paper, but will mutnally sustain the credit of the currency by
freely receiving the paper in all the intercourse and transactions of
trade, and strenuously defending its solvency.

If the committee had taken the pains to reflect a little, they would
have become convinced that as one dollar may be the instrument of
several exchanges io one day and of many in the course of a year, a
very small amount of circaUting medium was all that was iiei^pircd

196 CONDiriOTT OF THE BANKS.

for the very Biaall amoaat of commodities the people of Arkansas bad
then to circnlate. Instead of there beiog a dencieDCj, there was a re-
dandancy of currency, as was sufficiently proved by the fact that the
notes of both the State Bank and the Beal Estate Bank were many
per cent, below par. Bnt it is by fallacies of this kind that the paper
money men are always deceiving themselves, and that they too fre-
qoently socceed in deceiving others.

The committee could find nothing wrODg in the proceedings of the
State Bank and its branches, excepting that the mother bank bad not
made a proper distribntiou of her loans among the different counties,
and that the directors had taken too large a share of the loans to
themselves. We mistake, they found one other thing wrong. They
" considered the resumption of specie payments by the principal bank
in advance of a general resumption by the banks in the Etdjoiniug
States, and particularly of the banks of thi^ State, as premature, and
that it had not produced any good to the country."

Special committees were appointed to examine the affairs of the
principal bank and of each branch, but none of these appear to have
acted, except that on the princip^ bank. They reported on the 16th
of Pecember that they had periorued the ardaons duty assigned to
them ; " had examined diligently into the affairs of the principal
bank, and had found it an institution aolveni and sound in every par-
UetdoT, and one to which the public might extend confidence withoat
danger of disappointment."

Before adjourning, the legislature passed "An act supplementary to
the act incorporating the Bank ofthe State of Arkansas." This, after
making considerable rednctions in the salaries of the officers, provided
that no president or director should be indebted to the institution, as
principal, in a greater sum than $3,000 ; nor as security, in a greater
sum than $S,000. It further proTided ttiat the governor should have
authority to appoint one or more commissioners, not exceeding three,
whose duty it should be to examine, from time to time, the condition
of the bank and its branches.

The Bank ofthe State and the Real Estate Bank, with their super-
abundant issues, did not satisfy Mr, Ferguson, the chairman of the
joint committee on banks. He therefore introduced a resolution "that
our senators in Congress be instructed, and our representative be re-
quested, to vote for a United States or national bank." This was
rejected in the senate, December 1*J, by a vote of 14 to 6. A similar
resolation that had been, on motion of Mr. Bnckner, submitted to the
honse on the 1st of December, was rejected by a vote of 38 to 18.

In conformity with the provisions ofthe supplementary act, Governor
Tell appointed commissioners to examine the condition of the branches.

Messrs, C. F. H.ffolandand R, C Byrd,the commissioners appointed
to examine the branch at Batesville, made a report May 16, 1841, in
which they spoke of the danger this branch was exposed to of being
drained of its specie in order to pay its portion of the interest dne on
the State bonds. The indebtedness of some of the officers of the insti-
tution exceeded the limit allowed by law, but they expressed the
opinion that early steps would be taken to correct this evil. They
could sot close their report " without expressing their firm belief that

COHBITION OF THE BAHKB. 197

the maTiagemeat of this bank (branch) has always had an eye aiogle
to the interests and prosperity of the institution ; that favoritism or
partiality has never crept into it, and that the bad debts (if any) are
traceable to any other oaose than miamanagement."

Mr. B. C. Byrd acted alone in examining the brsnob at the Post of
Arkansas, In his report dated Uarch 1, 1841, he says : " I found
in Dse a banking-honse, which, from the plan, locality, and work-
manship, is one of the best buildings in the State ;" but he also says
that the debts due to the branch could not be collected ; that it Mrould
take all ber eastern funds to pay her quota of the interest due in 1841
on the bonds, and all her specie to pay the interest due in 1842. " It
is clear to me as noonday that the nanks of Arkansas cannot do any-
thing in the way of a general banking business for the next five yeara
to come, only to keep a strict watch over debts due to them, keep their
bills receivable renewed, and the interest paid on oar State bonds at
maturity. If this ia not done our credit is lost as a State, and we
cannot recover it again in fifty years to come. It strikes me with great
force that the only way to obtain this object is to call in the branchea
and concentrate all the business to some one point, under the manage-
ment of a strict directory."

MeBsrs. David Walker and R. G. Byrd were the oommissionera
appointed to examine the branch at Fayettville. In their report, dated
June 20, 1841, they say:

*' Having ascertained as far aa practicable the amount of gold and
silver, bills and notes of this and other banks, the notes andbilla dis-
coanted and on hand, and other credits, the next and for most difficult
part of our duty waa to ascertain what amount of cash ahtmld have
been in bank, the manner in which it has been conducted, its profits
to the State, (if any,) and the several sabjects of special instruction.
We regret to inform yon that our investigation of this branch of our
trust haa been rendered difficult and uncertain for want of the books,
alUged to have been stolen from the hank a few days before our exam-
ination commenced ; all of which have been found and are atill legible,
except that which contained the cash transactions of the bank,
the exchanges, and other important entries. This hook, when found, had
all the pages containing entries cut out, and thereby preclnded the
poaaibility of an accurate investigation within the limits of service
contemplated by our commission. Forthepurposeof obtaining aaftill
information aa practicable, we addressed the cashier, propounding to
him anoh interrogatories as we conceived most important. We were
particularly anxions to ascertain the amount of specie in bank, con-
etitnting the actual capital at the time of the auspension; the amount
of deposits in specie at that time or since; the amount of exchange
sold by the bank before, at, and after the anspennion, and the terma
apon which it was sold; and directed our inquiries on those points to
the cashier, and regret that the means have not been furnished of re-
porting accurately on those subjects; the minutes of the directory do
not furnish evidence, nor are we enabled to ascertain that any account
of the cash, bills, or notes disconnted, has ever been made ftom the
orgaaisation of the bank until within the last ten days.

" The cashier, in hia anawer to a call made on him taeziilain the

198 CONDITION OP THE BANES

cause of diminutioD of specie in the bank after Bospension, says that
at the time of the aecoDd report to the general boardj and ever aince
that time, he has reported a larger amovtU of specie than there was
actually in the hank at the time, bat did not state what should have
been the true amount. He alleged that he acted under the authority
of the directors, and accompanied hie reply with a letter from one of
the directors for the purpose of sostaining his aasertion. We called
before us and examined four of the old directors, and received letters
from two others, for the purpose of being fully informed ou this sub-
ject, and the resnlt of our investigation leads us to coaclude that,
inatteDtive as the directors appear to have been in scrutinizing the
reports, and testing their correctness by comparing them with the cash
and notes on hand, they never did sanction or authorize' a report
differing from the &cts as they really existed.

" The statement made by the six directors will be found, upon an
ezamiuation of the facts, well sustained. The cashier, in his second
letter, states that he first misrepresented the amount of specie in bank
in his report to the general board at the commencemeDt of the session
of the general assembly in the fall of 1838. The reason assigned for
misrepresenting the true condition of the bank is, in sabstance, its
straitened circumstances, owing to heavy drains for specie previously
made, and to save the credit of the bank."

The exact amount of the specie deficit the commisaioners could not
ascertain. They, however, produced a certificate showing that of the
blank impressionB of notes intended for circulation $35,350 had not
been accounted for. The presumption was, that they had been surrep-
titiously issued by William McK. Ball, the cashier.

The reports of the commissioners appointed to examine the branch
banks were published by Governor Yell in August, 1841. He accom-
panied the reports with an address to the people, in which he said :

"I am not aware, nor do I recognize any code either in morals or
politics that would authorize the executive to withhold this informa-
tion from the public. If it should be considered favorable, it is due
alike to the bank and to the country that it should be given. Od the
other hand, if doubts and snspicioD are created as to their oonditiou
and management, it is alike my duty, however painful, to lay the
anbject before the country, and leave the consequences to time and the
intelligpnce of the people. And, however strong my prejudices may
be against the whole system of banking, still, as the executive of the
State, it is not my desire to indulge in invectives against the banks or
their managers, but to present truly and faithfully their condition.

"The great and radical error is the 'aygtem,' whether national or
State banks ; and the gradual unveiling mystery that surrounded
the late Bank of the United States of Pennsylvania will disclose to
the people the whole system of aivindlittg that has been practiced by
too many of our moneyed institutions to enrich a few individuals at the
expense of the State and the people, and I fear, before their final termi-
nation, the States and the government are to he brought to the verge
of bankruptcy,

"The present crisis requires firmness and decision and no small

n,g:,.ndtyC00glc

CONDITIOS OF THE BJLNKS. 199

degree of financial ability to snatain onr institatione and the credit of
the State.

" If the policy is continued for a few years longer (as shown from
the reports of the commissioDers) of selling their specie to pay their
interest on State bonds their tauUb will soon be drained, and the
banks left without means to redeem their circalation.

" The very lucid reports of tho commissioners, with their suegea-
tiona, have saved me the trouble of examining the subject more fully
at this time. There are, however, some gross and iuezcusable viola-
tions of the charter that I cannot, in justice to you, pass over without
bringing them to your notice, and if they are not corrected, you have
the power in yonr own hands at the ballot-box to correct the evil ; and
if I mistake not, the time will shortly come when our pUiliciana and
ataitmnen who are the champions of chartered corporations will learn
they have been as blind to the interests of the country as they were
deal to the voice of fame.

" The policy pursued by all the banks, as you will learn from the
reports, in the sale of eastern exchange since the suspension is one of
the principal causes which has placed them in t}ieir present embar-
rassed condition, which evinces but little skill in financiering, or a
system of favcyriiiam, which is less excusable. The most of the sales
since the suspension have been for Arkansas money, and at rates
varying from /we to tea per cent,, while the specie was worth from
thirty to forty per cent, premium. They should have used their east-
ern exchange, which would answer the same purpose as specie, and
less risk, in the payment of interest ou their State bonds ; but instead
of meeting the interest account with their bills of exchange, they have
been compelled at Batesville and Fayetteville to ship specie or buy
bills to pay their interest account. If this policy is continued, by the
meeting of the legislature there will be but little specie remaining in
their vaults. Should this unfortunately be the case, the noteholders
will be letl without the hope of redemption.

" The practice and policy of the respective branches making large
loans for the accommodatioa of their officers and directors ia, in my
estimation, in every way unjust and highly censurable, and in disre-
gard of the provisions of the charter. Yery many have received on
their own accommodation the full limits allowed under the charter,
which was not to exceed ten thousand dollars, ' directly or indirectly,'
and have become security varying from ten to twenty thousand dollars.

[Here the goveraor shows that the liabilities of the directors at the
three branches, as principals and aa aecnrities, amounted to $475,127.]

'* I do not intend so much to doubt the security of the debt as to
protest against such a policy, which is not only in violntion of the
charter, but alike opposed to the credit of the banks and the best
interests of the people.

" The developments in the report of the oommtasioners who exam-
ined the Fayetteville branch (in whose capacity and integrity I have
the fullest confidence) may render it neoeesary for me to appeal to the
jadioial tribunals to prevent further loss by the miamanagemeat of
that institution. I have no other alternative to attain my object
without a called session of the legislature, which I consider at. this

200 CONDITION OF THE BANES.

time unnecessary and impolitic, thereby creating a large and enor-
mous debt, which I desire to avoid ; and, besides, I have do assurance
that the legislature would carry out the only policy (a withdrawal of
the branches) which can save the banks and the State from irretriev-
able loss.

" I was not sustained in my policy by the last legislature in relatioD
to the banks, and I have no evidence that they have changed their
opinions since ; and it is but just to presume that thay fairly repre-
sented the wishes of their constituents ; at all events, until I am better
dbnvinced of a change in the opinions of the representatives of the
public mind, I cannot reasonably contemplate a co-operation in car-
rying out such a policy as I consider indispensable to the security of
the banks and the credit of the Stat«. "

The letter books and minute books of the different boards for the
year 1841 reveal nothing but trouble. Mr. Bertrand, who was sent
on a special mission by the principal bank, reported that sundry
debtors in St. Francis county were preparing to remove their property
from the Stat«. February 26, it was resolved that, " in considera-
tion-of the present state of the bank, no new discounts other than /or
directors should be taken till further orders." March 25, the directors
at the Post of Arkansas received news that all their ftinda in the
Union Bank of Louisiana " had been attached to satisfy claims by
persons holding notes of the branch." In July, it was resolved that
Mr. Greenwood should proceed to New York to settle accounts with
the North American Trust and Banking Company. In October,
$16,700 (in inconvertible paper) was set aside for the purchase of cot-
ton, to provide, if possible, for the payment of the dividend on State
stocks due January 1, 1U42. This was after news had been received
that Mr. Greenwood could not make any satisfactory agreement with
the North Korth American Trust and Banking Company, and that
only one of the sureties to the guarantee bond given by said company
was worth anything.

The Batesville branch also made its appropriation of inconvertible
bank notes for the purchase of cotton, that it might thereby be able
to pay its portion of the dividends on the State bonds ; but this pro-
cess was found so ruinous that it had to be abandoned. Every new
issue of notes of course diminished their value.

The directory at Batesville repelled with indignation the charges
brought against them by Governor Yell. We " are of opinion that
the Sieged mismanagement and corruption of the Fayetteville branch
have been made a pretext for directing a system of abuse and oppres-
sion against the bank at this place that is not justified either by the
condition or the management of the institution ; probably to promote
some long-cherished prejudice against the banking system, to aooom-
plish which at this time would be ruinous to the community, or for
the purpose of giving aid to the favorite project of a few wire-workers
at Iiittle Bock to centralize and make tributary every other section of
the State to that place." In this strain the directory proceeded
through more than nve closely written folio pages.

On the 27th of December, " In consequence of the great difficulty
and endless delay in collecting debts due to the banka, ',aqd even is

OGSDinON OF THE BAHK8. 201

prevsiliag on the debtors tu renew their notes, " many of whom have
suffered suit to be instituted, and which are defended and plead against
in every possible shape, in order to evade the debt entirely, and delay
the time as long as possible," the Batesville directory resolved "to
appoint an agent to proceed to the different counties and make the
beat arrangement he conld."

The first proceeding, in the year 1841, of the directory of Fayette-
▼nie, was, according to their "minute book," to resolve "to lend the
citizens $45,000," which resolution was carried into effect. On the
6th of May " the cashier (Hr. W. McK. Ball) reported to the board
the robbery of the bank, and that the four principal hooks of the bank
had been taken therefrom. And that, on the advice of Messrs. Dean
and Mnrphy, he had offered a reward of five hundred dollars for the
robber and the books lost, or one hundred dollars for each of the books
lost. That two of the books — to wit — the ledger and bill-book, had
been found, and for the latter he had paid one hundred dollars to the
finder." " The board ordered a credit tor the amount paid, approved
of the cashier's course, and directed him to pay the reward offered on
the retom of the other books."

On the 4th of June it was " ordered to pay negro Jim five dollars
for finding a mutilated book, supposed to he one of the books stolen
from the bank." On the 2d July it was resolved that John Brodie
"be allowed the sum of twenty-five dollars for finding the discount
hook which was purloined from the bank, the same having been re-
turned, but materially injured by lying in the water."

An examination of the branch by commissioners appointed by the
governor seems not to have been agreeable to the directors, as they,
on the 4th of June, resolved " that the attorney for this bank be in-
structed to inquire by what authority David Walker and R, C. Byrd,
members of the legislature of Arkansas, act as commissioners for the
examination of this bank."

Oo the 27th of August it was resolved that " Mr. Boileau is at
liberty to proceed, at any time that may he convenient to himself, in
the execution of the trust reposed in him as commissioner."

As late as the 28th of August it was resolved that, " as the board
had so evidence that any denlcation existed on the part of W. HoK.
Ball, all proceedings against him should be suspended tit] Mr. Boilean
should make his report."

On the 4th of October the cash committee reported that the hooka
of the bank were in such condition that the only way of arriving at a
knowledge of its true state was by a laborious investigation, similar
to that Mr. Boileau was then making,"

On the same day it was resolved "that the president of the bank
be requested to employ some competent person to bring up the books
of this bank from the time of their first commencement of business
tip to the present period."

From other testimony it wonld appear that the condition of things
was worse even than might be inferred from the records of the different
boards. Thus the " Southern Patriot" says :

" About twenty men in Phillips county, Arkansas, recently rtm off
the jndge^ refusing him permission to do his doty, and resolving to hmd

202 CONDinOK OF THE BANES.

court themselves. Many execations beiog by law returnable the laat
May term of that court, aod much property advertised to be sold ;
and, moreover, the Beal Estate Bank at Helena, and the branch of
the State Bank at the Post, having brought a great number of suits
in that court, a long petition was got up, signed oy some two hundred
persons, praying the Hon. Isaac Baker, who was to hold the court,
not to do so. The petition was borne to Colnmbia, and presented to
the judge. JudgeBakerproceeded, however, to Helena, for the purpose
of holding the court. Finding that he could not be persuaded to
decline doing the duty imposed on him by law and the obligations of
his official oath, about twenty men armed themselves and took posses-
sion of the conrt^houF«, the door of which they barricaded, and refused
to permit any person to enter. The sherifT attempted to obtain an
entrance, and threatened to break down the door. The response was,
thahif be did he would be instantly killed. The sheriff accordingly
desisted, and made a requisition upon the colonel of the county for
fitly men to enable him to eappress the rebellion, but the a&ir termi-
nated in the full triumph of the rebels, and Judge Baker returned
home to Columbia."

These reminiscences may not be pleasant, but they may be profit-
able. They show to what desperation men may be driven by debt.

The bank and all its branches made an effort to meet the dividend
due on the bonds in January, 1842, by purchase of cotton and resale
of the same ; but the effort did little good. With this object in view,
$58,810 were put into the bauds of the president of the principal bank
in September and November, 1841. With $2,250 of this money he
bought cotton in Arkansas at 11^ cents on the pound, and sold it at
New Orleans for 8^ ctnts a poana. As all the liinds realized in this
way would go but a little way in meeting the interest on the State
debt, the president, on his own authority, invested the proceeds
(except $291 71 consumed in expenses) in Arkansas bank notes at 27
or 30 per cent, discount. The sums of $450 and $1,500 pat into
other bands with a view of porchasiug cotton appear never to have
been accounted for. Every step the bank took involved it in additional
losses.

The attempt to raise funds by the purchase and resale of cotton
having failed, the principal bankrin the absence of other means
of remittance, shipped specie to New Orleans wherewith to buy bills
of exchange on New York In this way the whole of the interest
due on the State Bank bonds in July, 1841, $33,660, was paid, and
$8,968 13 on account of the interest due on the 1st of January, 1842.
This was the last payment of interest on State bonds ever made by
the State Bank.

By his doings Mr. McK. Ball acquired, if not fame, considerable
notoriety. His name was mentioned in nearly all the papers of the
Union. The following extracts from the Philadelphia Journal of
Banking may serve by way of example:

August 18, 1841.—" Wm. McK. Ball, cashier of the Branch Bank
of the State of Arkansas, at Fayetteville, is stated, in the Baltimore
Patriot, to have recentiy absconded to Texas, leaving the bank minus

n,g:,.ndtyC00glc

CONDITION OF THE BANKS. 203

Bome 164,000. Ko doubt Mr. Ball is, as well as Hr. Town, of a
very reepectablfl family."

September 1, 1841. — "We stated in our last that no doubt Mr,
Ball, tbe absconding cashier of the FayetteviUe branch of the State
Bank of Arkaosos, was of a bigly respectable- family, as well as Mr.
Town, the defaulting teller of the JacksooTille branch of the State
Bank of Illinois."

*' Our conjecture has been verified. The editor of a journal pub-
lished at Westchester, FennBylTauia, states that Mr. Bait is a native
of Newcastle ooanty, Delaware. He studied Inw in the office of Mr.
Darlington, in Westchester, and so excelleut was his conduct and
character while residing in that borough that the editor thinks there
must be some mistake in what is related of his doings in Arkansas.

*' There may be more than one man in the country bearing the
Dame of Wm. McK. Ball ; and all bearing that name may at one
time hare borne a good character, and been correct in principle. Bat
as our American banking system is the most efficient of all systems
in couverting honest men into rogues, they may all have fallen victims
to its demoralizing influence

' ' There is no mistake about the character of the doings in Arkansas,
whoever was the author of them."

September 29, 1841. _"Mr. William McK. Ball, the cashier of the
Branch Bank of the State of Arkansas, at Fayetteville, bas returned
from Texas. He pronounces the charge that he is a defaulter a bare-
faced falsehood, and declares his intentioD to ferret out the authors of
the slander, and promises that, if successful, they shall be dealt with
in proper style, let them be great or small.

' ' It would be quite possible for one bank officer to oommit a default
and then so arrange matters as to cast suspicion on another. The hi^h
r^ord entertained for Mr. Ball in his native State, Delaware, and in
Weatcheater, Pennsylvania, where he completed bis professional eduoa-
tion, is certainly a strong presumption in favor of his innocence."

January 19, 1842. — " Some of the western papers say that Mr. W.
McK. Ball, once cashier of oue of the branches of the Arkansas State
bank, and who was accused of being a de&nlter, bos ' run his slaves
into Texas ' "

March 30, 1842. — "from the statements in the western papers
there seems to be no longer any doubt that Mr. William McK. Ball,
late cashier of a branch of the State Bank of Arkansas, is a defaulter.
He threatened, as our readers may recollect, to visit with signal pnn*
iahment those who had brought this charge against him; out it ap-
pears that he has made his final escape to Texas."

Mr. Boileau was engaged from August 22, 1842, to April 29, 1842,
in investigating the a£hirs of the branch at Fayetteville, and preinring
a new set of books. He found that Mr. Bful was a defaulter in the
aom of |33,279 60, or, if the blank impressions of notes that were
missing, $12,920, be added, in the total amount of |46,199 60. The
de&ult was less than Messrs. Byrd and Walker had, in making their
researches, been led to believe.

Ur. Ball died io Texas.

Abont this time the directors at Fayetteville engaged ia what, they

204 COHDITIOK OF THE BANKS.

r^arded as a masterly movement, though do record was mode of it
OD the books till July 16, 1842. We then read that " John A. Bcott
and Charles W. Dean, the agents who were appointed by a resolation
of a board of directors of this bank to proceed to the city of New York
witli $10,000 of the specie of this bank for the purpose of pnrcbaeing
a portion of the bonds isaaed by the State of Arkansas to raise funds
to put this branch in operation, made a report to the board, setting
forth the manner in which they had proceeded as agents as aforesaid,
which report was received by the board and ordered to be filed with
the papers of the bank ; said agents claimed no oompensatioD over
their actual expeoiws "

From another entry under the same date it appears that the reso-
lution was adopted at a privaie oonference of the board on the first
Friday in April, but from pmdential considerations not then pat on
the minutes. The cashier was not allowed to be present, and the
strictest secrecy was enjoined on the agents. The bonds were at that
time quoted at 13 to 17 cents in the dollar in the New York market ;
bnt the agents were empowered, if it were necessary^ to give twenty
cents in the dollar, or even a little more.

Finding it impossible to purchase the bonds on those terms, the
agents returned to their homes, leaving in the hands of 8. J. Silves-
ter, esq., a broker of New York, the net sum in specie of $9,934 36,
with instructions to him to effect what they themselves had not been
able to accomplish.

In September the directors appear to have become concerned about
their money, ibr we read under date of the 4th of that month :

" Whereas no iaformation has been received that the Ainds have
been used agreeable to the designs of this board, it is therefore consid-
ered that the most effectual means should be nsed for the purpose of
saving said funds and guarding them from the greisp o/" Bnecwators. It
is therefore considered that an agent shonld be employed forthwith to
repair to New York,"

A committee of four was appointed speciany to attend to the subject,
and it was enjoined on the said committee that " they should exercise
great precaution."

It was further resolved, "That L. Brodie and M. T. Scott heap-

e>inted as agents of this bank ; that they go on immediately to Van
urea, for the purpose of procuring the endorsement of James A.
Scotl on a certificate of deposit for nine thousand three hundred dollars
of the specie of this bank, deposited by said Scott with S. J. Silveater,
of the city of New York," Thus the business involved the expenses
of journeys, not only to New York, but to Van Bnren also. On one
day, December 12, 1842, resolutions were passed ordering specie to be
paid to N. L. Wilson, L. Brodie, and J. Brodie, for expenses inoarred
OD joorueys to Van Bnren on business of the bank, and to W. L, Wilson
for expenses on a similar journey to Little Book, besides $450 to C
W. Dean, in Arkansas money, "for going to New York and back
again on the business of this bank, which journey he performed in the
course of the last autumn." This was in addition to the jonrner in
the spring, when Mr. Dean, in conjunction mth Hr. Soott, deposited
the $9,934 36 in the hands of Silrester.

n,a:i.-r.dtyL.OO(^IC

CONDITION OF THE BAKK8. 205

To cat a long story short, Silveeter did not pnrcliue the 'bonds,
and the "extreme precaution " exercised by tha board did not pre-
serve the money " from tbe grasp of speculators." When Dean, on
his second or third visit to New York, requested Silvester to refund
the money, the latter replied that he had instructed his ^ent in Lon-
don to make the purchase of the bonds if it oonld he ejected on the
terms prescribed, and for aagbt that he knew to the contrary, the
purchase had been made. What Mr. Silvester's London agent did in
the matter is not on record ; bat Mr. Dean judged it best to leave the
basiDessinthehandsofMT. Elijah A. Payne, a lawyer. Thisgentleman
charged a liberal sum for his services, but could not prevail on Silves-
ter to disgorge. Finally, Biggs & Co., of Philadelphia, who had a
judgment against the bank, oy some astute management, succeeded
in making Silvester pay over to them a part or the whole of the funds
with which he had been intrusted by the agente of the bank.

Thus ended this master stroke of financial policy. Instead of re-
sulting in the purchase of bonds of the State to the value of $60,000
or more, at from 13 to 20 cents in the dollar, as its projectors fondly
hoped, it resulted in the loss of the 10,000 silver dollars they appro-
priated for the object, with perhaps half as much more in lawyer's
fees and travelling expenses.

It was not till the year 1814 that the claim on Silvester was trans-
ferred to Biggs.

The minutes of the boards at Batesville and at the Post of Ark-
ansas, for the year 1842, reveal nothing that here requires particular
notice.

The board at Little Bock seem to have lost confidence in one of their
own namber, as they on the 4th of January, 1842, resolved —

"That acommittee be appointed toinquire into the continued absence
of John C. Johnson, a member of this ooard ; also, whether the said
Johnson has defrauded or attempted to defraud this bank, in running
off negroes and selling them, when the said negroes were under mort-

Sge to this bank ; also, in assisting any debtor or debtors to this
nk to abscond with his or their property beyond the jurisdiction of
this State."

At the next meeting the committee made a report in which they, to
a certain extent, sustained the charges brought against John 0.
Johnson, and he was forthwith expelled from the board.

In the Silvester case, the broker proved too much for the banker ;
bat, in the following, as recorded under date of January 25, the
banker appears to have got the advantage :

** The president (Mr. Field) reported (verbally) that, while on his
way to New Orleans, in order to arrange for payment of interest on
State bonds, he ascertained that a person was on hoard the boat,
following him, for the purpose of laying an attachment on the $8,000
specie, on a claim for that amount of branch bank notes, nnder which
circumstances he had considered it most prudent to land the specie at
the Columbia (Real Estate) branch bank, taking certificate of special
depoeit in favor of Ward, Moffit & Co., New Orleans," — all which
proceedings were approved by the board.

On the minutes of the general board is spread at lotgth the report

206 CONDITION Of THE BANKS.

of tbe president, Mr. Field, respecting the difficulties he had to ea-
oonnter in his efforts to purchase cotton wherewith to pa^ the interest
OD the State bonds dne in January and July, 1842. The whole result
was the shipment of some HO hales to Frederick Huth & Co., far the
satisfaction of the European holders of the bonds Bat it being
deemed of special importance to pay the interest due on the 6 per
cent, bonds neld by tne United States government, $8,000 in specie
were appropriated for that object.

These minutes also contain reference to the efforts made to compel
the North American Trust and Banking Company to pay what it
owed. The board made liberal prorieions for the payment of lawyers,
hot the lawyers had no sncceee.

The general assembly commenced its fonrth session at Little Rock
on the Tth of November, 1842. The anditor (E. N. Conway) re-
ported, " that all the interest due from the Bank of the Stat« had
been paid in full to the 1st of July, 1841, inclnsire; and that the
further sum of $8,986 13 had been paid on acconnt of the interest
due on let January, 1842. The total sum of interest dne
from the hank, on account of the State bonds, inclusive of ex-
change and brokerage, was $58,331 87, of which the sum of f^^r
681 87 was due on the Ist day of January, 1842, and $33,650 on the
1st day of July, 1842. Of the interest due, the sum of $30,000 is
payable in London, and $28,331 87 in New York.

dovernor Tell, in his message to the general assembly, expressed
himself with great force and clearness :

" To arrest the downward tendency of things, to restore the honor
and credit of the State, unshackle her resources and energies, and to
reinstate the somewhat un&flhionahle custom of tionesty, promptness,
and economy in financial matters, will be the momentous duty of this
legislature j and if you ore faith^l, as I am sure you will be, in spite
of the clamors of interested classes, you will achieve the lasting
gratitude of your constituents and the whole country. But thecrisia
IS full of difficulty and responsibility, and demands an honest and
fearless devotion to the public wel&re.

" We are in the midst of a great revolution on the subject of
banking. The developments, glaring and startling, of the demoral-
izing and ruinous consequences of ute present system, demands at
your hands a radical reform. The great mammoth, or regulator, has
fallen, and hank after bank has followed it to destraction; tumbling
down in its course the prospects of millions, and devouring the hard
earnings of the laboring classes. And is it possible the people are so
infatuated with their chains as to submit, quietly, to such oppression
and legalized swindling ? — witnessing the proceeds of their industry
committed to the uae of the few who live upon credit and the facilities
of the banks? Bnch a system tends to paralyze industry, prostrate
trade and commerce, and subject thecountry to revolutions dangerous
even to our liberties.

' ' To you, as their representatives, they have, with a generous confi-
denoe, entrusted a reformation of the present system ; and to yon they
confidently look for redress, hy the adoption of some measure that wiU
restore a sound currency, and put an end to a system which is oi dis-

tioiwlc

COKDITION OF THE BANKS. 207

astrooB npoB the prosperity of the DoaDtry as it is corrnpting and
demoralizing in its tendflncy,

' ' We still find the banks clinging to the fragment of a wreck which
they can never hope to refit and render useful. They will, ere long,
find that some concesstoa must be made to public opinion which has been
roQfied to action by their mismanagemant and fraud ; and the subject
has now reached a magnitude and importance that forces itsell' impera*
lively on the consideration of the appropriate departments of the
goTflrnmeut, if they would preserve oar political institutions aad the
prosperity and happinesss of the people.

"The examination of the oonditioa of the branches of the State
Bank, and the developments in relation to the ' hypothecation ' by the
Beal Estate Bank of half a million of State bonds, have fully demon-
Btrated that all the exhibitions of figures, setting forth the condition
of the banks, by their reports, give no reliable information of their
tine circumstances, bat are too otten calculated to mislead and deceive.
The condition of the Fayetteville branch fully confirms this impressioD.
And the report of the Real Estate Bank to the last legislature is con-
clnsive, where they report that the five hundred State bonds are on
* hand and unsold,' wnereas subsequent facts have demonstrated that
they had been hypothecated to the North American Trust and Banking
Company nearly three months previous for the nominal sum ot
$250,000; receiving only the sum of about |136,000, withont sanction
of law, and in express violation of the charter.

" It would be criminal on my part to disguise the deplorable con-
dition of our banking institutions and the fearful prospect of loss by
their miamaaagement which is likely, ultimately, to fall npon the
people. To sustain the credit of the State, resort must be had to
farther and oppressive taxation if the present extravagant and rninous
system is longer continued.

" By reference to the reports of the condition of the hanks at the
date of their suspension, in October, 1839, compared with their present
condition, (independent of the interest due on their bonds, amounting
to about the snm of $149,601, due in specie or par funds,) it will 1m
seen that the sum of $80,000 or $100,000 in specie has been abstracted
from the vaults by embezzlement, and by the short-sighted policy of -
taking the specie to pay the interest on the bonds, whilst they refused
to redeem their circulation, which kept it at the rninous discount of from
25 to 60 per cent., thereby giving a preference to their foreign creditors,
without the most remote possibility of being able to resume. This
system of financiering has been pursued natil their specie is nearly
exhausted ; they are at lost unable to pay their interest. Oar bonds
are now under protest, and the price of our stock reduced to a point
but little better than the stock of the late Bank of the United States.

" Is not their condition of itself sufficient to require at your hands
ao act putting the whole in a course of liquideUioR, giving such time
as justice to the State will warrant, with as little pressure upon the
oommuuity as possible, so as to be able, with the means and assets of
the bank, to take up their circulation, and to pay their interest
panctoally, and finally the bonds themselves ?

' ' However reluctant to acknowledge the fact, it is neTerthdess tnie

208 CONDITION OF THE BAKES.

that onr treasury is not in a cooditioD, nor will it be, to pay the
interest on the State bonds which is now or will become due for the
next few years.

' 'Our citizeOs are already oppressed hy taxation to meet the expenses
of the State government. I am not prepared, therefore, to recommend
an increased taxation for the purpose of meeting the interest on the
State bonds ; bat prompt and energetic measures should be adopted,
with the means and assets of the hank, to effect such objects upon alt
such bonds as have been sold in good faith and in stjict accordance
with the bank charters.

' ' However much the people of Arkansas may be disposed (and none
are more ap) to sastain her faith and credit in the payment of all just
and legal claims, she would nevertheless be unworthy of the character
of a sovereign State if she tolerated for a moment the idea of paying tor
bonds illegally and fraudulently disposed of. • * • • *

' ' We are not without hopes, by a prudent and judicious but prompt
exercise of a corrective power upon our banking privileges, mat we
may yet enjoy better times. Industry and economy have again made
their appearance, and if they continue will insure plenty, prosperity,
and coQtentment. Our troubles are not without their advantages ;
they ^ive us the wisdom of sore experience, and stand as beacon lighta
to guide us in future. Upon close examination, we find our misfor-
tunes have been produced by blunder and follies in which we have too
long acquiesced. Then let ns not deepair. The industry of our hardy
population and the ample resources of our young State bid us be of
good cheer, and look to the fertile fields of our own rich valleys and
beautiful prairies as a sure indemnity against all the evils which have
swept like ' a deadly eirooco ' over this once prosperous and flourishing
people. I have full confidence that, if this mode is carried out, we
shall have money sufficient to meeL all the legitimate wants of the
country without encouraging ' the credit system,' which is certain to
end in loss, and often in ruin, to States an well as individuals. There
is a portion of the community which will not he satisfied with such a
policy. I have no doubt if the whole wealth of the country was
applied to their use it would be inadequate to their wants,

"The main object, however, will be accomplished if you oan give
the country a soand and constitutional carrency, and secure the note-
holders against loss and imposition, with the means at our command,
and the exports of the country. We shall then, in a few years, attain
to a sound and healty condition,

' ' The advocates of a sound and constitntiooal currency have, here-
tofore, been struggling in a bare minority against associated wealth,
composed of bankers, brokers, speculators, and stooUobbera, whoee
course of policy has well nigh ruined the country wttn a depreciated
currency, and a consequent diminution in the price of property and
the products of the soil.

" The standard of a sound and constitutional currency has bean
unfurled, and beneath its ample folds thousands of our laboring classes
have taken their stand, and if they are faithful in the oauae they
will ultimately drive the money-changers from the temple th^ have
polluted. ' '

n,g:,.ndtyC00glc

CONDITION OF THE BAyKS. 2Q3

Seatiments each u these ought to commend themselves to the people
of Arkansas, both now and ever hereafter ; and not the people of Ar-
kansas only, bat to those of the whole Union.

Gorernor Yell found the general assembly of 1842-43 much more
disposed to co-operate with him than was the general assembly of
1840— '41. They instituted searching inqtiiriea into the manner in
which the bonds of the State had been disposed of, and made as minate
inqairies into the condition of both the Beal Estate Bank and the Bank
of the State as circumstances wonid permit.

A part of the result of their labors was the passage of an act to
place the Bank of the State in liquidation.

By this it was provided that the legislature should elect a fioaocial
receiver, an executive receiver, and an attorney, for the principal
bank and each branch, which officers flhoald hold their situations for
two years, and have, subject to the various provisions of the act, the
sole control of the afiairs of the institution.

They were forbidden to make new loans, and required to collect
from the debtors bf the bank what was due from them in instalments,
80 that the whole should be collected in ten years.

The notes of the bank and its hranches were, in the first place, to be
received in payment of debts due the bank, and after these notes
should all he reideemed then any bond, script, or obligation of State,
for the payment of money, whether due or not. Thus the debtors
were not only allowed ten years to pay what they owed, but were
allowed to make payment in paper which was depreciated many per
cent, below par.

Under the provisions of this act all the assets of the bank at Little
Bock were, on the 9th of Jane, 1843, transferred to S. H. Rutherford,
as executive receiver, and John H. Crease, as financial receiver.

At Batesville, the transfer was made on the 1st of July to Thomae
S. Drew, financial receiver, and J. Chapman, executive reoeiver.

At Fayetteville, the transfer was made on the 21st of July, to
David G. Harris, executive receiver, and James HcKissick, financial
receiver.

At the Post of Arkansas, the transfer was made on the 15th of June
to Samuel Mitchell, executive receiver, and William A. Doherty,
financial receiver.

The attorneys elected were: at the principal bank, S. H. Hemp-
stead ; at Batesville, Lewis B, TuUy ; at Fayetteville, A. B. Green-
wood ; and at the Post of Arkansas, M. W. Borriss.

By another' act passed during this session the State Bank was
directed to reimburse to the State $15,000 in specie, of the surplus
revenue received from the United States. This was vetoed by the
governor, but became a law by a constitutional majority of both Houses.
This specie was applied to the payment of the wages of the members
of the legislature.

Judge Baker presented a memorial praying that provision might be
made for the payment of his salary in the constitutional currency of
the United States. But the Committee on the Judiciary in theSenate
reported :

"That the memorialist occupied the office of judge at a time.wfaen
H. Ex. Dec. 112 14 A.ocv^lc

210 COKDmOtf OF THB BAKES.

the reTenue of the State was payable aud collected in depreciated
bank paper, and that the fact was knuwti to the memorialiat at the
time of his acceptance of bis office as judge. It was a fact susceptible
of clear demonstration at the time, without any great skill in nnan-
ciering, that all the functionaries of the State would receive their pay
in such currency as was receivable in payment of taxes due the State,
and the acceptance of an office, with a full knowledge of these facts,
amonnted to a tacit agreement, at least, that the officers would be satis-
fied to receive the money which coostitated the reTeone of the State
in satisfaction of their claims."

At this time " Arkansas money" was at the rate of from two and a
half to three for one in " good money," so that a judge with a nomi-
nal salary of $1,600 received the equivalent of only from $600 to $600
in specie.

As, ailer Kovember, 1839, not one dollar in specie was paid into
the State treasury, the payment of postage on the letters addressed to
them gave no little embarrassment to the publii^ iiinctionaries at Little
Bock. This difficulty was at length overcome by the ingenuity of the
joint committee on the auditor's and treasurer's books, in their report
of December 23, 1842, they said:

*' Your committee would further suggest that there has been, at
different times, very considerable sums applied to the payment of post-
age for the different departments of government, and as it has to
be settled with Arkansas money, the State not unfrequently pays
inordinately large sums to procure specie to liquidate sums in them-
selves inconsiderable.

" The only remedy the committee are able to propose is, that the
State Bank, or those who hold its funds, after it is put into liquidation,
shall be required to place under the control of the State treasurer a
sum in specie sufficient to cover the expenses of postage."

So long as the Bank of the State and the Beal Estate Bank had
power to lend the financial affairs of the State of Arkansas proceeded
smoothly enough. But as soon as the ability to lend ceased on the
part of the banks fiscal embarrassments began.

n,g:,.ndtyG00glc

CONDITION OF THE BANKS

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CONDITION or THE BANKS .

UABmmEB OF THE BANK AHD ITS BRANCHES.

For the principal of 169 five per cent, bonds $169,000 00

For the priDcipal of IjOOO Bixper cent, bonds 1,000,000 OO

For arrears of interest to July 1, 1842 68,331 87

IntereBt on five per cent, bonds from Jtily 1, 1842, to

July 1, 1843 8,450 00

Interest on six per cent, bonds from Jnly 1, 1842, to

July 1, 1843 60,000 00

Total dae on account of State bonds 1,296,781 87

DDE TO TH8 STATE.

Five per cent, fund $68,777 20

Seminary fund 2,188 41

Common school fond 1,616 84

Saline fund 161 37

Balance of United States surplus rerenne.. 268,046 1

340,678 71

FOB NOISB IN CntCULAmON.

Little Bock 2,230 00

Fayetteville 164,360 00

Batesville 55,250 00

Post of Arkansas 66,020 00

2TT,850 00
Deduct branoh notes on hand 60,920 00

DUE TO DEPOSIIOItg.

Little Rock 37,469 19

BateBville 7,341 68

Post of ArkaDsas 9,800 86

Dne to Beal Estate Bank and branches.... 2,016 97

Due to banks in other States 4 66

1,910,023 93

The nominal assets exceeded the liabilities in the snm of $81 ,150 19.

Of the sam set down as dne to depositors $34,671 64, at Little Bock,
were on aoconat of partial payments on not«s disoonoted by the bank,
and as a large proportion of the deposits at Batesville and the Post of
Arkansas were probably of the like description, they constituted no
active demand against the bank.

Of the couditiou of the notes, bills, and bonds, which formed part of
the assets of the bank, we have the following statomenti :

r . iX'-OOglc

CONDITION OF THE BANES. 213

At LITILB ROCK.

Notes not due April 1, 1843 $152,106 00

Notes past due April 1, 1843 347,672 68

Bills of exchange past due 8,607 82

508,286 60

Notes in hands of attorneys for suit and collection $64,770 00

Bills of exchange for suit and collection .17,272 08

N. Henefee, in hands of attorneys for aUovance 2,160 00

74,192 08

AT BATBEFniiLK.

Notes rnnniug $161,682 12

Jadgmeots 32,648 47

Notee in suit 29,422 76

Notes in constahles' hands 832 11

Notes retained by attorneys 15,875 75

240,361 20

AT TEE POST OF ARKAHUB.

Bills and notes not in suit $162,886 26

Bills, bonds, and notes in the hands of attorneys 5 1 ,146 00

Bills ander protest 24,58^ 35

$228,614 60

AT FATEIISTILLB.

Notes discounted 333,069 94

Domestic bills of exchange 3,319 69

336,389 63

Estimated amount of donhtinl debts at Fayetterille $46,074 00

Estimated amount of desperate debts 26,600 00

The whole amount due by indiTidnals was, including back interest —

At Little Rock $626,340 66

At Fayettevjlie 366,642 46

At BatesviUe 264,542 90

At Post of Arkansas 263,193 68

1,610,619 68

n,g:,.ndtyC00glc

214 COHDmOK OP THE BANKS.

Od the notes and billa due to the bank the annual interest was
apwards of $100,000.

On the other hand, the interest on the bonds issued and sold for the
benefit of the bank amoanted to $68,460 a year.

Sach was the condition of the Bank of tbe State of Arkansas and
its branches at the time their afiairs passed into the hands of receivers.

As there were about $36,000 in specie at Batesville, and upwards
of $19,000 at Fayetterille, it wan an object of some mompnt to pre-
Derve this treasure from the grasp of the judgment creditors of the
bank. This gave do little concern, if we may judge from a letter
which the financial receiver at Little Rock, on the 19th of July, 1843,
addressed to the financial and executive receivers at Batesville :

" You will, of course, use every precaution not to hazard an attach-
ment of the specie, and I think it would be well that some general
concert of action should be taken on that subject. The governor
promised to elicit all the necessary legal information and advise with
us. He is, however, still absent at Fayetteville. The small amount,
$5,379 37, transferred by the Post of Arkansas branch, was in gold,
and easily brought up in the receiver's trunk, without suspicion, at
the time it was removed. But a lot of silver cannot be so quietly
managed. And my present impreasioQ is, that it will be best to sell
the silver, deliverable aa wanted, in Batesville. But this is a
mere opinion. And the united judgment of yourselves and thu
executive will best decide on tbe right way."

At the principal bank at Little Bock no less than 306 bills and
notes were, between the 2Ist of September and the 24th of October,
1843, put into the hands of attorneys for suit; and both there and at
the branches snch other measures were taken as it was thought would
best secure the collection of the debts due to the bank. But so little
success attended these efforts that the whole amount collected up to
October, 1844, a period of 16 months, was only $169,111 04.

Tbe smallness of the amount was owing only in part to want of in-
clination in the debtors to make payment. It was owing in a great
degree to want of ability. About this time there was one of the
greatest bank revulsions ever known in this or any other country.
The bank note circulation of tbe United Slates which was, according
to the returns made to the Treasury Department, $140,000,000 near
the 1st of January, 1837, was by the Ist of January, 1843, reduced
to about $59,000,000. Such a redaction of currency no nation could
aoBtain without the most disastrous oonsequenoes, especially as snch
reductions are always attended with a ruinous loss of confidence. The
evil was felt most sensibly in September, 1842, when there was a
terrible convulsion among the banks in New Orleans, the effects of
which were experienced throughout the Union. As has been said,
** we then tou<med bottom, and we remained at the bottom till Hay,
1843." After that there was a gradual improvement ; in some of the
States a comparatively rapid improvement ; in others a slow one ; but
in few, if any, so slow as in Arkansas. Being the last to embark in
paper money banking, it was natural that she should be the last to
recover from its ill effects.

The general assembly commenced its fifth session on the 4th of

CONDITION OF TIIE BANKS. 215

NoTember, 1844. The first snbject to vhich Qovernor Drew, ia his
message, called their attention was the Bank of the State.

He stated that bnt few of its notes were then to he met with in ordi-
nary traBBBCtions, and recommended snch an amendment of the Hqni-
dation act as wonld autborize the immediate receipt of State bonds in
payment of debts dne to the bank.

'< You are aware," be continued, " that many of the debts are in a
precarious condition. I have no doubt that a resort to harsh meauares
would, in a majority of instances, render collections still more
difficalt, if not impossible." In another place he speaks of " local
combinations" having already been made "to interfere to some
extent with the collection of debts due to the hank." And, again,
in another place, of the " late floods of our rivers, which have proved
80 destructive to the crops as to forbid the hope that any considerable
amount of bank debts will or can be paid during the current year,
from the sales of cotton or other asricuitnral produce."

" Under these circumstances, I do not feel justified in advising any
additional tax on the people, who are already very heavily burdened.
And yet we are without the means in hand to pay the accumulated
and still accruing interest upon our State bonds. This will not, I
trust, and injustice should not, beattribnted to a spirit of repudiation.
Our escutcheon has, bo far, been preserved free from the stain ; and I
sincerely hope and confidently believe it will he, in all time to come.
Oar failure to pay has resulted from inability, and not, I am sure,
from indisposition to meet fully and promptly all our just liabilities.
And I am equally sure, so soon as the requisite means shall be in oar
possession, none will have just cuuse of complaint of our delini^uency.

" Id view of our embarrassments it may he wise to consider of the
causes which have produced them ; for, if such a retrospect cannot
remedy the evils of the past, it may serve as a salutary lesson in the
future. And here we are met, at the very outset, with the now obvious
imprndeuce on the part of our infant State of incurring snch an
enormous debt for the establishment of banks, which, without the
ability to create real elements of prosperity, gave fictitious values to
every species of property, repressed and retarded the development of
the true resources of our soil and people, and at length exploding
have left us the crippled victims of visionary speculation. The par*
suits of our people, and the condition of our country, just emerging
from the wilderness, did not then, and do not now, justify the use m
hanking facilities, if at all, to the extent provided : and of which we
availed ourselves, as it seemed, in a spirit of emulation of the extrava-
gance of other States, rather than in accordance with our real wants and
substantial means. The highly infiated state of the currency in all
parts of the Union, at the time our banks went into operation, with
the other causes I have mentioned, all contributed to lessen the value of
each man's accommodations, while, in the same ratio, it added to the
debt contracted and to be paid now. Few, I apprehend, have ever
been able to realize any profit from their so called accommodations,
whilst almost every one has a loss to regret. In these I trace the
present embarrassment of our State and people ; and hence oar
inability to pay our debts. But while we cannot pay, we will neither

Xiocwic

216 COtTDITION OP THE BAMK8.

deny nor repudiate them. We only ask a little time, which, jadicionsty
improved, will enable na once more to aland before the wot Id
unembarrsesed and out of debt, isincerdy entertai:]iQg these hopes,
I confidently express them. From my knowledge of the character
of the State, in regard to its people and resources, I know it has all
the elements of true greatness and prosperity ; and that these only
require time and fr^om from emoarraasmeut for their full and
successful development. And in this hope I again nrge upon yon,
and onr common constituents, to learn wisdom from the severe ordeal
of experience through which we have passed, and from which we are
not yet free."

At this aeseion a memorial was received from Frederick Huth and
other Europeau holders of the bonds of the State, praying that prompt
measures should be taken to insure the payment of the interest thereon.
Of course, it was impossible, in such a condition of things as was
described by Governor Drew, for the legislature to do anything
effective.

The auditor, £. N. Conway, reported that, on the 1st of October,
1844, the interest due by the Htate Bank on account of eleven hundred
and sixty-nine State bonds sold by it amounted to |2 14,447 50, of
which the snm of $116,907 50 was payable in New Tork, and 197,600
in London. The regular and undisputed interest due by both the
State Bank and the Real Estate Bank, on account of bonds sold by
them, amounted to $604,607 60, of which the sum of $377,807 60
was payable in ITew Tork, and $126,700 in London. From this it
appears that if the European bond holders suffered the American
suffered also.

The auditor further reported that he had " assistfid the hank receivers
and State treasurer in comparing with the records and burning notes
of the Bank ot the State of Arkansas and its branches, amounting in
the aggregate to $1,007,760 ; and also in like manner in burning
blank cnuK note impressions, amounting to $3,162,070. The amount
of all notes ever issued by this hank and branches is reported to this
office to be $1,216,900."

Certain parties, it is said, deeply regretted this burning of the
notes, hoping that the day might come when '* they would again be
Qserul."

Very much of the time of this general assembly was occupied with
inquiries into the circumstances attendant on the sale of the State
honda, and with efforts to arrive at a knowledge of the exact condition
of the State and Beal Estate Banks and their branches.

The joint committee took " a memorandum of the notes whose
drawers and indorsers had been indulged" at the principal bank,
*' and no good reason suggested itself to them why the discrimination
should have been made,

A resolution was passed by the hooee, declaring that " there was
joat reason for believing that there had been gross mismanagement,
or neglect of duty and favoritism," at Batasville.

A committee reported that "the receivers at Little Bock have sab-
stitated others in place of old debtors, to the amooni of about $140,000;

n,g:,.ndtyC00glc

CUKDITION OF TUE BABES. 217

bat we hare no GoeanB of judi;iDg whether these cbangeB have operated
to the benefit or prejudice of the bank."

By an act passeci at this seeBioo the ofBce of executive receiTer waa
abolished, ana the duty of winding Dp the affairs of the bank wae
devoWed on the financial receiver and an attorney at each office. By
the same act it was provided that State bonds should be received in
payment of debts due to the bank.

By the general appropriation act passed at this Bessiou an entire
change was made in the fiscal system of the State. This provided
that all par funds then in posseBsion of the financial receiver of the
State Bank, or that might thereafter come into bis possession, shoald
be immediately transferred to the State treasury. These were to be
QSed first in paying the members and officers of the general assembly
what was due to them, and then to discbarge such other liabilities of
the State as had been incurred during the first quarter of the fiscal
year, commencing on the Ist day of October, 1S44. After that, if
there should not be a sufficiency of par funds in the treasury, the
treasurer was required to issue his warrants, bearing no interest, for
the amount due to the public claimants. These treasury warrants
were made receivable in payment of taxes or revenue due to the State,
and also in rayment of debts due to the State Bank and its branches.

All legal liabilities of the State incnrred before the 1st of October,
1844, were to be discharged in such funds as the treasurer had then
in possession. Thus two fiscal mediums were established ; bank
notes for liabilities incurred before the 1st of October, 1844, and
treasury warranto for those incurred subsequent to that date. At this
time Arkansas bank notes were at 50 per cent, discount. As this act
prohibited the receipt thereof in the payment of taxes, it had no tendency
to enhance their value.

By another provision of this act it was declared that all ft^ nds in the
8tat« Bank in which the State had an interest should be regarded, not
as heretofore, as part of the capital of the bank, but as a deposit in
said bank to the credit of the State, to be drawn under appropriations
made by this general assembly.

Governor Drew returned the bill with his objections. It made, as
he conceived, invidious distinctions among public officers and public
claimants. There were but $33,732 18 in specie in the vaults of the
bank, and every cent of this would be absorbed in paying the officers
and members of the present gflneral assembly, and those public cred-
itors who had rendered services between the lat of October and the
Slst of December. To meet the residue of the appropriations, it would
be necessary, previous to the next meeting of the legislature, to issue
over |80,000 in treasury notes or warrants. Under the provisions of
the bill, not one dime in specie would find its way into the State
treosory, and the treasury warrants must, of necessity, ondergo a
great depreciation.

Notwithstanding these objections of the governor, the bill was passed
by a constitutionaf majority of both hooees, and beoame a law on the
10th of January, 1846.

Another and still more important measure was adopted by this gen-
eral assembly. It was taking the initiatory steps for sncb on an^wd-

218 CORDinON OP THE BANKS

meet to tbe coDstitntioD aa would prevent hereafter the estahlishment
of paper money banks within the honnds of the 8tat& So &r as can
be gathered from the jonrnals, the measnre was unanimously adopted,
or, at least, without a formal diviaion on the main question in either
the House or the Senate. The experience of seven years had con-
vinced the people and their representatives that this bind of banking,
instead of being prodactive of the benefits its projectors had promised,
was fraught with the greatest evils to the ommuaity at large.

In the records of the different boards for the years 1845 and 1346,
■we find nothing that here requires especial notice, excepting the fol-
lowing in the Batesville minutes, under date of April 13, 1846 :

" On this day William C. Bevens, as financial receiver of the branch
of the Bank of the State of Arkansas at Batesville, and Isaac Baker,
aa attorney of said branch bank, met as a board for the purpose of
transacting the business of said bank :

" And whereas it is believed by said board to be impossible by suit
to collect debts due the bank, and that the institution of suits might
tend to embarrass futnre action of the legislature in regard to this
branch, and increase excitement and promote combination antong
debtors, it is therefore resolved that the attorney return to the bank
all notes of the bank in his hands upon which suits have been brought,
as well as all notes sued on and not filed in conrt,"

This was the branch the directors of which had so indignantly re-
pelted Qovernor Yell's charge of mismanagement. The greatest
amount of bad debts that they would, in September, 1841, admit to
be due to the branch was )Tj621, and of doubtful (9,000. The events
of the next two or three years sufficiently revealed the true character
of the mass of the debts due at Batesville. All that was collected
there in two years, from the 1st October, 1844, to 1st October, 1846,
was |9,166 04, and this was in paper depreciated many per cent,
below par. The collectinne per annum hardly exceeded the interest
that accrued in three months.

The general assembly commenced its fifth session on the 2d of No-
vember, 1846.

"The energies of the State government," said Qovernor Drew,
" have already become palsied. With an empty treasury for years,
with a ruined State credit, and an apathy on the part of all to move
in even the attempt to retrieve our credit, it has become my duty to
present fhlly, not only the present ruinous state of our finances, bnt
to assume the reuponsibility of pointing to the only possible remedy.

'* The financial history of the State exhibits a series of blunders.

" The first legislature under the constitution provided for the levy
of one-fourth of one per cent, upon the sworn assessed valnation of
such kinds of property as that body saw proper to subject to taxation,
which, when the assessment was made, discovered to the executive the
prospect of a large surplus, and induced that officer to issue his pro-
clamation for a called session, itith a view to its reduction,

"At the called session [that of 183T-'38J the committee upon banks
appear to have conferred with that on revenue, and immediately an
idea was entertained (and it must have prevailed pietty generally)
that the establishment of a State bank, the property of the State,

CONDITION OF THE BASKS. 219

afforded the means, and wheo once put into sncceasful operation,
would BflFTo the pnrpose of freeing the people from taxation altogether!
The levy was consequently fixed at one-eighth of one per cent., and
nntil the bank should have declared a sufficient dividend for that pnr-
pose, the legislature authorized drafts to be drawn upon the surplus
revenue of the general government then deposited with the Btate, and
which, in the body of the charter of the tJtate Bank, was placed as so
much capital, and upon the faith of which as a basis, the directors
were authorized to issue the usual amount of circulation.

" It appears to have been at least doubted at the time, whether one-
eighth of one per cent, would be sufficient to meet the current
expenses of the etate government, as this provision for drawing on the
surplus revenue affords abundant evidence. The legislature, by the
unfortunate connexion of the bank with the revenue of the State, set
out in the establishment of a system which contained the eeedo of its
own destruction.

"The almost entire absorption of that fund at or about the close
of the last general assembly left the State no other means to meet the
heavy appropriations then made for the current expenses of the gov-
ernment for 1846 and 1846 (and the payments out of which amount
to the sum of |107,221) than the limited means afforded by a levy of
one-eighth of one per cent, on $20,600,000 worth of taxable property,
which produced a sum less than one-half the required amount. The
attempt at the late session to improve the finances of the State by
the iasDe of treasury notes, calling them par funds, and requiring
the payment of all public dues to be made in gold and silver or par
funds, in place of worthless bank paper, without providing the neces-
sary means to meet such requirement, was as futile as it was ill-
advised."

The receipts into the treasury for the two fiscal years ending Octo-
ber 1, 1846, were in all $51,948, of which $7,381 99 was in specie,
$20,392 19 in treasury warrants, and $24,143 42 in Arkansas bank
Dotes.

The governor dwelt at some length on the inconveniences of this
currency. "If $1,500 is a fair salary for a judge of the supreme
court, and he receives that amount in scrip worth $760, he feels him-
self at least disappointed when he recurs to that portion of the consti-
tution of the State that provides that such salaries shall be neither
raised nor diminished during his continuance in office. In the present
^te of our finanoes his salary is subject to variation every week, de-
pendent upon jobbers in this species of paper, that rarely ranges in
the market above one-half of its face."

"Should the legislature continue to pursue the rninons policy of
paying off that body, with its necessary expenses ranging irom
twenty to thirty thousand dollars, in these depreciated ' promises to
pay,' withont providing proper and present available means to sustain
and give credit to this almost worthless paper, its further depreciation
will be such as to sink the credit of the State beneath any stretch of
calculation, for this purpose nothing is plainer than the absolute
necessity of augmenting the levy and extending the range of taxable
articles. Should the representatives of the people be unwilling to

220 CONDITION OF THE BANKS.

assume this responsibility, they will doubtless feel the necessity of
making the first move towards the abrogation of the State govero-
ment, a goTerument which, ten years of experience will have proven,
is now, and would at the outset have been, impracticable but for the
fortuitous circumstances of the distribution by the general govern-
ment of the surplus revenue among the several States."

In conformity with the recommendation of the governor, an act was
passed extending the list of articles subject to taxation, and increasing
the levy to one- fourth of one per cent, of the assessed valuation. This
measure, in conjnnction with a resolntion declaring that all treaanry
warrants, whether issued for special or general purposes, should be
receivable for aii State dues, and thus, for lands as well as for taxes,
raised the warrants nearly to a par with silver. Their previous rate
of depreciation was from 40 to 60 per cent. This resolution was, at
the suggestion of Mr. A. H. Rutherford, brongbt before the House by
Mr. Fletcher, of Mississippi county, at a late hour on the last day of
the session, and was the last resolntion adopted by that general
assembly.

Mr. A. E. Thornton, the financial receiver at Little Bock, stated
in his report that "when he came into office he found that every
dollar of the specie means of the bank bad been exhausted, in conse-
quence of which he had no little difficulty in meeting the demands on
tbe bank. In some instances the property of the bank had been sold
under execution, at a sacrifice for want of funds to protect it, and in
others the receiver had been compelled to resort to the sale of Beal
Estate Bank paper, at the current price in tbe market, to provide
specie means witn which to redeem tne real estate oi the bank, meet
incidental expenses," &o.

The joint committee on banks reported that they bad examined the
report of the financial receiver at Little Bock, and found it a trne
representation of the condition of the principal bank.

Qovernor Drew had suggested the propriety of calling in tbe
branches, or of disposing of the assets of the bank to the highest bid-
der, for part in prompt payment, and the balance in one, two, and
three years. On these points the committee differed from him. la
their judgment, "the assets of the bank could not be brought into
market at this time without a serious sacrifice of tha interests of the
hank. The committee also believed that the branches could not be
called in at this time without a heavy loss to the State and a great
injustice to debtors of the branches."

The governor bad in his message called attention to a correspond-
ence between himself and the Hon. David Hume, a member of the
British Parliament, and a holder of a portion of the bonds of the
State of Arkansas. This part of the message was referred to the com-
mittee on ways and means, and Mr. Qaines, on behalf of that com-
mittee, made a report, which possesses no little interest, as it shows
that, gloomy though the prospect then was, the doctrine of repudia-
tion received no sanction from the people of Arkansas or their repi»-
eentatives.

" The bonds," said Mr. Gaines, "were issued for the benefit of
the banks of this State, to whose management and means the legis-

CONDITION OP THE BiNKfl. 221

latnre which authorised their issne looked mainly for the paymeat
of the interest as well as their final redemption. The failure of these
institutions to answer the ends of their creation has heen and still is
a source of great regret and emharraaament to the Btate authorities, as
well as to the whole people of the State, and although we nuw see and
deeply lament the errors into which a former leeialature went by
authorizing their issue, yet the step has been taken by those to whom
the people confided the legislation of the State, and the present is not
the time to question the propriety of the measure ; but the duty de-
volves upon OB to remedy, if in onr power, the evil already existing,
and if possible to maintain the faith and ultimate credit of the State.
la the first place it cannot he denied that the era at which the acts
anthoHzing the issue of those bonds was passed was one memorable
in the history of the commercial as well as the political world, for bank
foanias and speculative stock-jobbing, and it is not surprising that our
predecessors, comparatively without experience in banking, should .
have been carried away by the fictitious appearance of things existing,
while the most experienced and enlightened statesmen of the age were
led into errors innnmerable and irretrievable by the same bewildering
influence. This unreal state of things, by which paper and hank
credits were substituted For money, existed throughont the civil,
political, and commercial world, and in no part to greater extent than
in onr own country. At that period confidence in the credit system
prevailed to an extent which produced alike the downfall and rnin of

ftrivate as well as public enterprise, and spread like a sweeping pesti-
ence its disastrous efiecte thronghont the length and breadth of our
own beloved land. Arkansas, sparsely settled, deatitote of wealth,
except her native soil and hardy and industrious inhabitants, procured
a credit in foreign markets to which her limited resources did not
entitle her, and which proved alike embarrassing and iojnrions to her
and to those who confided in her ability to meet her engagements.
Her bonds were readily negotiated in the market, not for specie or
money, hot for what was then termed par fnnds, which meant bank
credits, and which formed a part of the mushroom system then pre-
vailing. These funds were placed to the credit of onr hanks in
eastern cities, and soon merged into individual debts due to banks,
and payable in their own issues. Soon after this a general reaction
took place in the United States, and indeed in the whole commercial
world, by which credit was destroyed and confidence lost, and our
State having neither wealth nor commercial advantagbs to sustain her
hanking institntions, they went down and their paper ceased to answer
the purposes of even an internal circulating medium, and in many
instances depreciated in the hands of the nolders, and would not
answer the purposeofmeetingtheaocruingioterest on the State bonds.
Hence, as soon as the banks exhausted the small amount of specie
which they retained from the proceeds of the sale of the 8tat« bonds,
in paying the accruing interest thereon, they became unable to comply
with the provisions of their charters, which required them to meet the
interest on the bonds, to which provision the State, as well as the bond-
holders, looked with confidence at the time the sales of the bonds
were effected. It is clear from the reading of the charters, which were

I, Cookie

222 CONDITION OF THE BANKS.

before all the contracting partiea, that the people did not anticipate
a direct tax to pay the bondfi. The State stood as collateral security
for their ultimatQ redemption. The downfall of the bank left the
people without a circulating medium, and generally much embarrassed,
which embarrassment soon manifested itself also in the State treasury,
which had been supplied by a tax collected from the people under the
then existing laws, in the paper of those institutions, which paper
wat greatly under par. The legislature has finally been driven to the
necessity of refusing the paper ot either bank for taxes, and on account
of the present embarrassment of the treasury, had to resort to a much
higher levy to meet the current expenses of the State and arrears due,
growing out of former expenses of the State government, which must
operate oppressively on the people in their present embarrassed con-
dition. The object of the correapoodence on the part of the bond-
holders is understood to be to ascertain whether the legislature will
deem it their duty, under existing circumstances, to levy a direct tax
on the people to meet the interest accrued and accruing on the bonds,
in answer to which your committee are of opinion, first, that neither
the people nor the legislature which authorized the issue of the bonds
iu the bank charters ever contemplated a direct tax to pay either
principal or interest, urttii the assets and mecaia of the bcmlea werejirst
all applied to that otijet^; secondly, that such a tax would, at the
present time, be extremely unjust, onerous, and oppressive to the
people, and would be more than they could well bear, and would tend

SFreatly to retard the growth of the State, and thereby, perhaps,
orerer put it out of the power of the State authorities to redeem the
bonds. If it is the desire of the holders of the bonds to know what
course the legislature are disposed to take in regard to these institu-
tions, we answer that both of them have been placed iu liquidation
with a view to wind up and secure their assets, which are to be applied
to the payment of the State bonds issued for their benefit, and to no
other purpose ; and the officers of both institutions an^ authorized to
take iQ payment of the debts due to the bank the bonds of the
State, or to exchange property with the holders of the bonds at fair
and equitable rates. The proc«>ss of liquidation has not yet absorbed
the circulation, which is being paid in on account of debts due to the
bank. Therefore the banks have not realized any available funds
which could be applied to the payment of either principal or interest
of the State bonds ; nor can we just now look forward to the day when
we may anticipate better funds. We look to the payment of the bonds
as the ultimatum of all that is desired by the acts placing the banks
in liqnidation, after I he circulation shall be absorbed; therefore we
deem them good in payments, but have not the present ability to re-
deem them from the holders, except in the way indicated. If it be
charged that the State is acting in bad faith to the bondholders, we
reply that we have tried to preserve inviolate the means and assets of
the banks for the purpose of liquidating the claims against them, and
the State bonds issuca for their benefit; and it was to these means
that all parties looked for the payment of the principal aud interest
at the time the bonds were negotiated. Candor compels as to admit
that after all the meaos of the bank shall be exhausted, there will still

ii,Cooc^lc

CONDITION OF THE BANES. 223

reiDBtD A considerable deficit, which maat devolve on the State to pro-
vide for ; hut we Uave the provisions for that ohject to he eoacted by
succeeding legislatures, who, it la to he hoped, may find the people of
the State id a better condition to bear the burdens that may he im-
posed on them than the present condition of things would justify."

This report, which was naaaimously adopted, places in a clear view
the relations of the people, the State, the banks, and the bondholders,
subjects iQ regard to which there has been much misconception. To
raise by taxation the snm necessary to pay the interest on the bonds
was impossible. But the people of Arkansas have the consolation to
know tnat, even in the darkest times of their adversity, their repre-
sentatives never gave any countenance to the doctrine of repodiation,
hut, on the contrary, did all in their power to give a value to the
bonds in the market, by declaring that toey should be received in pay-
ment of debts due to the bank.

The policy which the State adopted in the beginning of these diffi-
culties, and which is so clearly set forth in the report, has been steadily
persisteil in to the present day, and will, it is confidently expected, be
persisted in till the whole amount of both the principal and interest of
the bonds shall be redeemed.

The most important measnre of this general assembly was the com-
pletion of the amendment to the State constitution, declaring that

" No bank or banking institution shall be hereafter incorporated or
establisbed in this State."

In this measure the members of both honses united without dis-
tinction of party. The minutes read, " passed in the senate by yeas
twenty, nays none. Ratified in the house of representatives by yeas
seventy, nays none."

The general assembly commenced its seventh session on the 6th of
November, 1848.

"The revenue law of last fesaion," said (Jovernor Drew, "has
answered fully the public expectation. It has realized all the favorable
reenlts anticipated ny its most sanguine friends."

While the revenue under the old law was only from $26,000 to
$30,000 per annum, under the new law it was upwards of $70,000.
Less than one-third of this was, however, in specie, during the fiscal
years ending October 1, 1847, and October 1, 1848.

" The report of the financial receiver of <he State Bank, and of the
secretary ol the board of trustees of the Real Estate Bank^ are referred
to with more than ordinary satisfaction, as they each exhibit a more
snccessful course in the accomplishment of the act of liqnidatioD on
the one port, and the assignment on the other, by the collectiDn of a
much larger amount than during the two years preceding their previous
reports."

Captain Qt. Washington Patrick, who had been appointed by the
governor an agent to examine the State Bank and its branches, began
this duty in Hay, and continued it up to the time of the meeting of
the general assembly. He visited each branch.

At Fayetteville he found that lands had been received in payment
of debts to the amonnt of $42,404 40; but as moat of these lands bad

n,g:,.-ndtyC00glc

224 CONDITION' OP THE BANKS.

aflerwarda been sold nnder ezecatioDS to Batisfy judgment creditors,
the loss to the bank in this way alone amounted to nearly $40,000.

The banking house and lot, which had cost some $8,0U0, had been
sold under execution for about (800, and the hank officers dispossesBed
of the same.

At Batesville he found bills, bonds, and notes, amountiog altogether
to $193,000; but on nearly half this amount, or on $89,000, noo-suita
had been taken. The officers assured him "that the cases were dis-
missed at the cost of the bank by tbe prexiding judge, on points of law
over which the bank attorney had no control, and that it was not for
want of skill, industry, and integrity on the part of the bank attorney
that the bank was non-suited and prevented in the collection of her
debts, and iiivolred in heavy damages in the shape of clerk's and
sheriff's fee bills."

"The whole amount paid by this branch for incidental expenses,
from the 2d of February, 1847, to tbe 13th of July, 1848, as shown by
statement marked B, including the acoouots at law, is $4,638 95. It
18 shown by said statement that only $9,574 75 have been transmitted
in cash assets to the principal bank. For the same time the bank ha9
been at the expense of paying tbe salary of an attorney and financial
receiver, at an annual sum of $800 each ; say both for seventeen
months $2,300, which has been paid by tbe principal hank, selling
real estate paper at a discount of seventy-five per cent. , or $8,200 real
estate paper. Add these two sums together and it will be seen that
this branch has not collected enough to pay expenses of managing the
same ; and if carried on a few years at this rate, every solitary cent
of the bank would he consumed, and still a debt be hanging over it
for salaries to bank officers."

At the Post of Arkansas tbe books and papers of the late Jamee M.
Smith were found to be "wholly inexplicable," and his successor.
Hark Mitchell, exhibited no books kept by him since he came into
the office."

The whole amount due to the principal hank and tbe three branches
on notes, bills, bonds, and other obligations, was set down at
$977,279 91, of which $567,628 04 was reported good, $176,569 02
doubtful, and $233,082 88 bad. This was independent of back in-
terest that had accumulated, and which was supposed to amount to
upwards ot $250,000.

Mr. Trapnall, from the committee on banks, mode report, that when
the act of liquidation went into effect, in 1H43, "tbe assets of the
hank amounted to $1,832,120 45, and were sufficient at that time to
redeem the circulation and pay off the bonds. On the 6th of No-
vember, 1848, according to the reports, there was due for bonds
$1,486,847 50; the paper QOt yet redeemed is $83,427; and according
to the report of the agent tbe whole amount of available assets does
not exceed seven hundred and dfty or ei;;ht hundred thousand dollars,
leaving a deficit of at least $600,000, which will have to be raised by
taxation out of the pockets of the people.

"This is owing, first, to the withdrawal, by the legislature, of the
funds in the hank in 1842 and 1844, to pay themselves and the ordi.
nary expenses of the governintnt, by which the hank was deprived of

Xiocwic

CONDITlOJr OF THE BANKS. 225

a large amoaat of money, and of the only means of defending herself
against the judgments rendered againat her, and by which all her
real estate has heen sold and sacrificed ibr one-tweatieth of its valne."

" And, second, that the Real Estate Bank paper has been sold at the
market price to raise means to pay the salaries of the bank officers
aad the expenses of the bank. In the last two years the expenses,
salaries, &c., have been |13,426 36, for which |50,191 of bank paper
has been sold,

" To raise the $9,600 appropriated for the rebuilding of the peni-
tentiary $37,690 of the bank paper has been sold, withoat the au-
thority of law known therefor to your committee, and to pay for the
printing of the acts, &c., of the last general assembly, amounting to
|4,667 19 in good funds, $18,U9 36 of bank paper has beea sold."

Whatever may be the value of the bank paper in the market, every
dollar of it in the vanlts of the bank is a dollar to the State, and to
raise the amount of (13,425 34, for bank officers and expenses, $9,600
for the penitentiary, and $4,667 19 for printing, the means of the
bank and the State to the amount of $106,030 36 have been ased.

" Uucb of the loss is attributable to the cumbrous and inefficient
system of liquidation, and the number of officers employed in it, and
to the negligence and carelessness which is the natural result of such
a system.

" To protect the Btate from imposition, to guard the interest of the
bank, to provide land-marks which might facilitate an examination
of the bank, and above all to furnish the proper officers of the State
and legislature with the actual condition of the bank at stated inter-
vals, various laws have been passed from time to time calculated and
intended to etTect that object. In requiring the notes of the bank to
be burned when the sum of $10,000 is on hand; in requiring the
financial receiver to make a statement of the assets to the governor
every tour months, and fixing a severe penalty for its violation. On
the 23d of December, 1846, requiring the financial receiver to make
out a list of the individual indebtedness due the hank, setting out the
snm of every debtor, and whether the same was good, doubtful, or
bad, aud have the same before the general assembly at its next meet-
ing, and fixing a fine of not less than a thousand dollars for a failure
BO to do. And one of still more magnitude and importance, requiring
the financial receiver, in cases of redeeming or receiving State bonds.
in exchange for bank notes, to cancel and file the same with the
treasurer, and to file one of the treasurer's receipts with the auditor ;
and also that the financial receiver should take duplicate receipts from,
the person from whom any bonds are redeemed, snowing the amount
paid lor interest on such bonds, one of which receipts he shall file with,
the auditor.

"The importance of complying with the laws must be obvious to alL
The provisions of the first mentioned have not been regarded, as the
financial receiver says the committee to burn bank notes did not meet.
The provisions of the second were disregarded, because, as the financial
receiver says, the governor did not make a requisition for the statement..
But no valid excuse can be made for a failure to comply with the re-
quisitions of the third and fourth last mentioned laws. And what.
H. Bi. Doo. 112 15 , Cookie

226 CONDITION OF THE BANKS.

appears eqiully strange to jout committee is, that althoagli within
the lost two years the fioancial receiver has exchanged more than
|140,000 ID bank notes for State bonds, yet no entry is made on the
books of the bank of the time of the exchanges^ with whom the same
was made, or how much was allowed for interest on the bonds. If
the only efTect of the failnre to make an entry on the books of the
bank of the exchange of notes for bonds, and to comply with the
plainest requirements of the law, was to cansfl in the minds of many
a suspicion that the financial receiver had not dealt fairly with the
bank, or executed faithfully the high trnat reposed in him, your com-
mittee would not advert to the subject. Bnt the whole transaction
relative to the exchange of notes for bonds is a sealed book to ynnr
committee, and while they cannot say that the State is a loaer by thu
violation of law and common nsage, yet the financial receiver has cnt
off every means of detecting an error, to ase no harsher term, and
preventing the committee bestowing a compliment if be deserved it.

" It appears that the financial receiver exchanged notes, or, in other
words, traded wifh himself for bonds in exchange for notES, and, as ia
other cases, no record of the transaction was kept on the books of the
bank. It also appears that the financial receiver has been extensively
engaged in a brokerage of notes and bonds, and while yonr committee
would not presume to interfere with the private transactions of an
individnal, yet they think the interest of the State would be best sub-
served by an ofBcer who abstained entirely from all dealings in funds,
and particularly from trading with himself,"

After a detail of particulars, which it is not necessary to introduce
here, the committee concluded by stating that they are " satisfied that
radical reform in the administration of the officers of banks is impe-
riously called for ; and that their officers should be compelled to per-
form rigidly the duties imposed on them, and no omission should be
tolerated, and especially tnat buying and selling, and every species
of brokerage, should be emphatically interdicted.

This report was signed by J Gould, chairman of the committee of
the Senate, and by F. W. Trapnall, C. P. Bertrand, E. H. Fletcher,
and A. W. Wilson, the committee of the House.

Though this report censured very severely Mr. A. E. Thornton, the
financial receiver, yet three members of the Senate and twenty-four of
the Honee declared in favor of re-electing him. On a second ballot,
however, Mr, J. M. Boss reeeived the votes of eleven members ot the
Senate and thirty-eight members of the House — a majority of the
whole — and was thus duly chosen successor to Mr. Thornton.

At this session of the legislature, a memorial was received from
BUndry holders of Arkansas uonda, principally residents in New York,
prating that measures might be taken tor the punctual payment of
the interest.

"These bonds," they said, "it is known to all parties interested
therein, were expected to be provided for by the bauKs to which they
were issued by your State. But it was the plighted faith of the State,
and it only, that enabled the banks to realize, as they did, the full
value of these pledges, and the full amount called for by them, and
by the tenor of the bonds. The purchaser aud the present holders of

CONBITlOa OF THE BASKS. 227

tfaoae bonds have looked to the ability and to the honor of the State
alone for the return at the appointed time of the capita) thua lent, and
for the proper and regular payment of the inetallments of interest ;
they have been disappointed in this by a failure in the payment of
interest einoe about the year 1841. They are fully aware that cauBes
of disappointment then existed of such a nature as to relieve the
State from censare and reproach ; though the effect was painful in the
extreme, distressing to all, and rainous to many of the holders of
these bonds. But those days of darkness to the national indnstry
hare passed off, and hare been succeeded by others of liberal reward
to all branches of industry, rendering it, we respectfully but con-
fidently suggest, imperative on the honor and moral integrity of each
of oar sovereign repuhlioa to accomplish their engagements, and to
remunerate their creditors for the heavy burden that has been pat
upon them by suspension of payments, which several of them made
during the gloomy pecQniary revulsion which ia past.

" Your memortalistB earnestly entreat that you will not fail at this
session of your legislature to make ample provision fur tho prompt
payment of the interest now and hereafter to become due, or if it is
BUpposed inconvenient to pay the whole interest now dne, that a law
should be passed to fund the interest now due, and provide for the
regular payment hereafter of the interest on it and on the principal."

It was impossible for the legislature to comply with the request. It
appeared, from the report of the auditor, that the annual interest on
the State bonds, then unredeemed, amounted to $153,670. The ag-
gregate of interest due and remaining unpaid was $1,108,172 60. If
this had been funded at 6 per cent, it would have made a net annual
charge of $66,490 35, which, added to the annual interest on the
bonds, woald have made a net yearly charge of $220,160 26.

Under the new law the revenue of the State had, indeed, been in-
creased from between $26,000 and $30,000 to upwards of $70,000 a
year ; but this was but little more than was required to pay the ordi-
nary expenses of the State government. And of this revenue only
about $23,000 was in specie. The rest was in Arkansas treasury
warrants and other paper, which had little value beyond the boantu
of the 8tat«.

The public creditors asked the legislature to raise by taxation, for
their benefit, an annual revenue in specie about eight times as great
as the people had been accustomed to pay in depreciated paper. As
already stated, it was impossible for the legislature to comply with
this request ; but so far were they from repudiating, that the follow-
ing resolution, which was i&trodnced by Mr, Berry, was passed by the
House without a dissenting vote :

" Whereas we are well assured that there is a settled determination
00 the part of the people of Arkansas not to stain the political and
moral character of tne State by repudiating her just public debts ; and
whereas, althonghthe State ia not now able to meet the demands of her
creditors, yet the rapid increase of population, the springing up of
her innumerable resources, and the advancing prospects of her agri-
caltaral interests, afford the pleasing assurance that the day is not

n,g:,.,dtyC00glc

228 CONDITION OF THE BANKS.

far distant when she will be able to make some provisions for the
gradual liquidation of her debts ; therefore,

"Seeolved, That the committee of iraye and means be inatrncted to
report to this Houae the amount of the pnblic debt, the annual interest
thereon, and whether there are now any means accrniog to the State
that may be applied to the redemption of the bonds."

A joint select committee reported that they had canoeled State Bank
bonds and coupons to the amonnt of $166,286 36, and the registered
Beal Estate Bank bonds and coupons to the amonnt of |120,280. All
these bad been received in satislaction of claims of the State Bank ;
and thus may be said to have commenced the formal liquidation of
the debt of the State. Goveruor Drew was anxious to hasten the
good work by receiving the bonds and coupons in exchange for
600,000 acres of laud which the United States government had granted
to the State for the parposee of internal improvement. But a com-
mittee of the legislature, to whom the subject was referred, reported
that the grant had been made for a definite object, and could not,
with propriety, be applied to any other.

After this reduction of the State debt it would have required an
annual tax of upwards of (200,000 to pay the interest on what re-
mained unredeemed, in the manner suggested by the holders of the
State bonds. Of course, the legislature made no attempt to effect
that which was evidently impracticable.

By an act approved January 9, 1849, it was provided that all the
branches of the State Bank should be closed, and their books and
assets concentrated at Little Bock, retaining, however, an attorney at
each branch. It was further provided that in any suit institutm by
the bank the bank should not be ruled to security for costs, hat the
State ahould be liable to pay coats rendered againat said bank. Some
measure of this kind was necessary, as the State Bank had in a mul-
titude of cases been uon-suited, simply because, owing to its pecuniary
embarrassments, it could not give security to pay the costs of suit.

In April, 1849, Mr, Boss commenced the discharge of his duties as
financial receiver at Little Bock. A part of the legislature were dis-
satisfied with the conduct of his predecessor, A. E. Thornton ; but so
many continued to confide in his honesty that on the first lultot he
received more votes than any other caDdidate, one only excepted.

Mr. Ross had not, however, been many months in office before he
discovered that Mr, Thornton had received some nine or ten thousand
dollars which he had failed to account for. These amounts Mr.
Thornton, when called on, paid up.

Further investigations showed that there had been various crooked
dealings in relation to bonds. A full statement of these was laid
before Qovernor Roane on the ISth of October ; and on the 18th the
governor communicated the particulars to John J. CleodeniD, esq.^
the attorney general.

Some fourteen days afterwards Mr. (Jlendenin, in a letter to Mr.
Robs, acknowledged having received, through Qovernor Boane, bis
"report in relation to the defalcation of Abner E. Thornton, late
financial receiver, and also preferring charges against him fiir ouBde-
meanor and fraud in office. ' Mr. Clendenin proceeded to say that

X.ocwic

CONDITION OF THE BANES. 229

ifciyil proceedinga vere iastitated they ought to be institnted by the
back, and that he had so mformed GoverDor Boane and D. W. Car-
roHj eeq., the attorney of the bank. "In relation to the criminal
charges," continued Mr, CleadeniD. "I deem sufficient has been
shown by your report for me to submit the facts to the next grand
jnry of this connty for their action. Bat it may probably be neces-
sary that some steps should be taken before then to secure the attead-
ance of Colonel Thornton, and I hare to suggest, if you think proper
to do 80, that an affidavit should be made by yon, (as being cognizant
of the facts,) before an officer, setting forth the facts and reqairiog that
Colonel Thornton shonld be held to bail for his appearance before onr
next oircnit court to answer the charges against him."

To this letter, which he received on the 2d of November, Mr. Boss
replied, on the same day ; "As Colonel Thornton lefl this city early
yesterday mornine it is unnecessary that I should take any steps now
to '?u}ld kim to beat ' to answer the criminal charges set forth in my
report. (Teither do I believe it my dnty to do so."

About a year after this, on the 4th of November, 1850, the eighth
session of the general assembly commenced.

" I have," said Qovernor Boane, "to congratulate you upon the
prospect, under the present revenue laws, of our soon being relieved
irom that unfortunate system, forced upon us by necessity, of iaaning
treasury warrants ; a system but little leas unfortunate than the re-
pudiated doctrine that hanks are essential to the collection and safe
keeping of the public revenne of the country.

*' Should the revenue laws now in force be continued, we have the
hope before us of once more seeing the revenue collected equal to all
demands on the treasnry ; and our debts, except those contracted on
account of our hanks, extinguished. For the two years commencing
with the 1st of October, 1848, and ending with September 30, 1860, the
amount of revenue paid into the treasury was |163,1U 41 ; and the
expenses of the State for the same period were (135,761 46, leaving a
balance of (27,348 95, which was expended in redeeming outstanding
treasury warranto, of which there still remain unredeemed |16,2o9 38^,
but which will be redeemed during the next two years.

"The time appointed by an act of the legislature within which the
Bank of the State of Arkansas shall collect her debts and redeem her
circulation, preparatory to making a final settlement of all her afiairs,
will expire in little more than two years. By information derived
from the able and elaborate report of the present financial receiver of
that institution, we are enabled to form a very correct conclusion as to
the condnct of those who have had the control and management of
her afikirs in time past, and to determine in what condition she will
be found upon a final adjustment of her accounts.

" Judging from the facte thns presented, it requires no extraordinary
degree of mental acumen to determine that the history of this baak
is but a catalogue of the grossest mismanagement and criminal negli-
gence, (to use no harsber terms,) from the date of her charter until
Uie present time, and that heavy loss to the State must be the oon-
sequence.

"To arrive at this conclusion we need go do further back than the

230 CONDITION OF THE BANES.

date of the act of liqaidation, vhich, as I contend, was conceived in
error and will result in misfortune. Among the namerous objections
that might be urged against this law not the least prominent is the
annecesBary extension of time granted to the debtors of the banks.
It is a well attested fact that the longer a debt remains dae the
lighter we feel the obligation resting upon us to pay it. This bas
been clearly exemplified in the case of the State Bank ; and in coo-
Beqnence of this very principle thousands, if uot hundreds of thoosands,
of dollars have been lost to the Bt^te.

" Consequent upon, and rendered necessary by this mistaken lenity,
was engrafted upon the law another principle but little less destructive
to the interest of the banks ; the employment and pay of fio large a
number of officers. Their salaries, though small, taken separately-,
(too small in some iuBtances to command the most competent indi-
viduaU,) yet, when taken in the aggregate, the doubt may be reason-
ably entertained whether their salaries did not amount to more than
by their agency was recovered for the bank. In some instances, these
officers have been incompetent ; in others, criminally negligent ; and,
in one instance, that of Abner E. Thornton, absolutely dishonest.

" The evidence of their incompetency will appear on the records of
our courts, where the bank has been not only defeated in the attempt
to coerce payment, but left with a heavy bill of costs to pay ; again
it will appear from their inability to so keep the books as to exhibit
the transactions of the bank. The gross negligence will be found to
exist in permitting more than two hundred thousand dollars worth of
the notes due the bank to remain in their hands till they were barred
by the statute of limitations. The dishonesty of Abner Thornton is
manifested throughoat his whole official career, exhibiting but a series
of embezzlements and f rgeries."

From the best accounts Governor Hoane could collect, be arrived at
the conclusion that the two banks would leave a debt of about two
millions to be paid by the State. " It may be more ; it can scarcely
be less. There is not a citizen, I apprehend, in the State of Arkansas,
who is not prepared to acknowledge its justness, and concur with me
in saying that the State is bound, by every principle governing con-
tracts, to nse all the means in her power to pay it to the last cent.
The spirit of repudiation can find no advocates in Arkansas — no
resting place in the hearts of her citizens. But the disposition and
ability to discharge our liabilities are two things ; one we have — let
Ds see what are our prospects for the other."

The governor then took a view of the rt-souroee of the State. The
taxes already levied "were oppressive upon the people, and submitted
to only from the necessity of tne case." Snch an additional rate as
would be necessary to pay the interest on a debt of two million dollars
and discharge the principal in twenty years, would be " a burden
too enormous to be borne by any community, and ooe to which the
people of Arkansas are, at this time, unprepared to submit."

Mr. John M. Boss, the financial receiver, made an elaborate report,
accompanied by tables, in which he gave the name of each man who
was indebted to the bank or either of its braoohes, whether as prin-

n,g:,.ndtyC00glc

CONIHTION OP THE BANKS. 231

cipal or secaritf , together with the amouot due by him, and other
interesting particalars

The committee oq bsnks reported, that of the debts due to the State
Bank, $267,186 81 were reported to be good ; $241,404 62 to be
doubttal, and |572,968 84 to be lost.

" We may be assured that, of the $l,081,5fi0 70 now due the bank,
the enormouB amount of |780,000 is irretrievably lost. That a portioa
of this has been owing to the deranged condition of the currency, and
the consequent embarrassment of the country, the committee admit ;
and that a part has been lost by Teckless legislation is beyond doubt;
but that, in many cases, the great bulk of tae loss is attributable to
the criminal negligence and dishonesty of the officers of the bank,
seems clear to the committee.

" By failing to sue in time, and by indulging favorites, the bank,
as stated in the message of the governor, has lost the enormous
amount of |200,000 by the statute of limitation ; and a large part of
the residue of this amount ($780,000) has been lost by a uniform
failure to attend to the security of the debts due the bank, by changing
and taking inferior security ; and in many instances by relieving
friends, and men of wealth and influence, and taking men of small
means and doubtful responsibility in their stead ; and by the failure
to enforce collections with proper diligence and energy ; and tbis
your committee think is fully exemplified in the statement of the con-
dition of t&e Fayetteville branch, where, of an outstanding debt of
$221,619 19, only $36,243 68 is available, and the loss is $186,375
51 ; five-sixths of the whole amonnta total loss.

" The history of the bank exhibits the most astounding instance of
long continued mismanagement and open abuse of trust that ever
occurred in a country of laws. Tbis state of things has been brought
about to some extent by a narrow policy and a miat^en idea of economy
in giving small salaries to officers in bigh trust, to great indif-
ference as to qualification in selecting officers, but more than all, to
a total failure to examine into the conduct of these officers, and holding
them to strict account.

"The conduct of those who have the keeping and control of the
public means and money and periodical accounting by them, which is
suggested both by prudence and experience as necessary to their secu-
rity, seems to have been forgotten, so far as the bank officers were
concerned. In the possession of vast amounts, freed from all restraints,
every obligation seems to have been released, and every law regulating
their duty set at defiance.

"Tlie law required that whenever the amount of $10,000 of the
bank paper should be on hand it should be registered and burned.
The necessity of this law and the necessity of enforcing it is obvious ;
yet large amounts of this money accumulated in the hands of the
bank officers, and for four years but little of it was registered and
, burned.

'* The law required that each one of the financial receivers should
make quarterly reports to the governor of the amount and character
of the assets in their bands. The necessity of this law is obvious, too,
to prevent the agents from using and speculating in these funds ; yet

ii,Cooglc

232 CONDITION OP THE BAKKS.

no regard vbatever was paid to this moat important law. An omis-
eion to do bo subjected them to a penalty of not less than two bnodred
nor more than two thousand dollars.

" Another law required them, when thej received s State bond, to
ta^e of the person from whom it was received a statement of the date
of the receipt and the amount of interest computed, and to take the
bond and statemeut at once to the treasurer ana have it cancelled, and
file his receipt for it with the anditor. The bonds were drawing six
per cent, interest, and this law was passed to prevent the officers from
receiving and holding the bonds, and defraudmg the State out of tbe
accruing interest ; jet no regard was paid to this law, and a large
nnmber of the bonds of the State and Real Estate Bank came to their
hands which were held, some of them threo or four years, and the
interest calculated upon them up to the time they were turned over.
The State was an immense loaer by this operation.

" Permitted to retain large amounts of money on hand for an indefi-
nite time, having failed to make their quarterly statements with im-
fiartialty, no one seemed to notice or care about it, and seeing that a
arge sum could be made by getting and holding tbe bonds, and that
in all probability they would never oe called to accoont for it, untram-
melled by sense of duty, obligation, or law, they gave full scope to
their cupidity. The paper of the bank had depreciated and was fluc-
tuating in value, and was generally in the hands of capitalists and
speculators, and could not easily be obtained by the debtors of the
bank. With the means of the hank they (the officers) would pur-
chase the paper and bends and sell them to the debtors at an advance.

" Thus they raised means out of the bank with which they took
advantage of the necessities and speculated on tbe debtors, and whilst
they on the one hand gained immense profits ont of them, tbey on tbe
other robbed the State out of the accruing interest on the bonds.

"And ont of these double speculations, and taking all the other
advantages which their position and means gave them, one of them
(Thornton) in the course of four years accumulated a large fortune,
and although he was notoriously guilty of every offence that could be
committed in the hank against the State and the law, and although
tbe most conclusive proof was furnished of tbe peculation and forgeries
committed by him, yet be was permitted to remain unmolested for
some time at the seat of government winding up his afiairs, and at
last permitted to leave the country openly, without hindrance from
any quarter. There seems to have been no one who felt it his duty
to attend to tbe interest of the State and have him arreted.

" All the safeguards thrown by law around this fond for tbe security
of the State have been uniformly disregarded, and the consequence u
an enormous amount irretrievably lost to the State. Almost every
one interested with the offices of the bank has felt himself at liberty,
in open violation of the laws, to use and retain its means. The
checks provided by law not having been observed, it is impossible for
the committee to make estimates."

The report was signed by Thomas H. Bradley, chairman of the
committee on hanks in the house of reprAsentatives, and by Napoleon
B, Burrow, chairman of the committee on banks in the senate. Per-

c;oo>!ic

COKDmON OF THE BAKES. 233

hapa it is too sweeping in some of its charges. Some of the officers
were, no doobt, guilty of criminal negligence in not collecting what
was dae to the Mok, and others rendered themBelves obnozions to
ceDsnre by not psyiDg over promptly what was collected by them.
Bat we know of none, with the exception of William McK. Ball and
Abner E. Thornton, that can be charged with downright dishonesty.

In a special message which QoTernor Roane sent to the house on
the 18th of November, 1850, he said, referring to the charges made
against Thornton :

" The day after these docnments were deliTered to the attorney
general I left the State to attend a convention to be held at Memphis,
to which I was a delegate. On my return, after an absence of two
weeks, Abner E, Thornton had left the State. Learning that he had
removed to the State of Lonisiana, I made a demand upon the gov-
ernor of that State for his delivery, and sent an agent to receive and
bring htm back. He conld not be found, and is now, I am informed,
in the republic of Mexico."

In a special report Mr. Boss stated that the receivers at the principal
bank ana branches had disposed of |127,197 16 in Beal Estate Bank
notes, for $36,324 31 in specie, being a small fraction over 28 cents
on the dollar. These sales were made to obtain the means of rebuilding
the penitentiary, pay for the public printing, and defray various
expenses of the trust. /

A oommunication was received from the governor enclosing a letter
from James Holford, of London,oneof the principal holders of Arkansas
State bonds. In this letter, dated Little Bock, November 14, 1850,
Mr. Holford says :

'< On looking over the balance sheet of the State Bank, it is but too
evident that there mnst be a very considerable deficit to meet the accru-
ing interest and the final payment of the principal of the bonds loaned
to it. Conseqnently, as the State must eventually pay all, and as the
treasury is not now prepared for it, I wonld recommend that the wreck of
the assets of this bank, which can be collected, should be used in the
payment of the accruing interest for the coming ten or twelve years,
by which time the taxable property of the State will have so materially
increased that not only the interest but the triflng amount for a
sinking fund may be raised without increasing the present taxation."

Some have cast reproach on Arkansas because she did not promptly
satisfy the claims of the holders of the bonds. Mr. Holford, who
visit^ the State, saw the true condition of things, and that nothing
better oonld be done for " the comifig ten or twdve years than to apply
the wreck of the assets of the bank to the payment of the accruing
interest on the bonds." It was impossible for the legislature to follow
his advice to the letter. But they have followed it in substance by
applying " the wreck of the assets of the bank, so fivr as they c*n be
collected," to the payment partly of the principal, partly of the interest,
of the State bonds.

By an act passed January 11, 1851, the office of bank attorney was
abolished, and anthority was given to the receiver at Little Bock to
employ special attorneys as occasions might arise.

The nm^ session of the general assembly began on the Iptof

234 CONDITION OF THE BINES.

KoTember, . 1852. Id addreSBin^ that hoij, Governor Boane gave an
iateresting sketch of the early history of the State,

"Arkaasaa was admitted as a 8tat« iuto the Union in 1836, nov
sixteen years ago. Her territory was large, and her popnlation, small
in nnmberB, and indigent in circnmstances, possessed but few capabilt-
ties for properly entering upon the task of seir-goTernment. Situated
on the west of the great Mississippi, beyond which the tide of emigra-
tion had not then passed, and indeed there was a large tract of unsab-
dned forest intervening between her and the thickly settled States, to
be settled up before she ooald naturally expect to arrest the attention
of emigrants, and her soil become tke resting place of that mighty tide
of human beings which has ever been tending westward since the
history of man was written ; during which time she had to remain in
a state of probation, anxiously awaiting the coming of the people
before commencing the worfc of improvement. At this time she had
but little over fifty thousand inhabitants, possessing but little enter-
prise, and less wealth ; the latter making an aggregate of not more
than fifteen million dollars.

"Thus illy prepared, Arkansas assumed the robes of sovereignty,
and became a free and independent State, entitled to all the privileges,
and assuming all the responsibilities devolving upon the oldest, moat
wealthy, and populous States in the Union

" To meet the expenses necessarily incident to a State government,
onerous taxes were levied and collected from a people poorly prepared
to meet the demand

"Just before or about this time the land excitement had seized
npon the minds of the western people, and, indeed, pervaded the com-
munity everywhere. As a consequence of this, a very large portion
of our most valuable lands fell into the hands of non-resident specu-
lators, precluding their purchase by actual settlers, and retarding the
settlement of the country, the element most desirable to a new State.

" At the same time two banks were chartered by the legislature, and
in order to procure a capital fund upon which to oaae their operations,
bonds to the amount of |2,82T,000 were sold, for the redemption of
which the faith of the State was pledged. Thus a heavy debt, with
accumulating interest, was fastened upon the State during the first
year of her existence.

" The affairs of these institutions were entrusted to the management
of inexperienced and unfaithful agents. Confusion, embarrassment,
and disaster were the inevitable consequences, and suspension of their
business resulted. And taking into coDsideration the history of the
times, the fact that all the banking corporations of the sonth and west
had, at the time or immediately thereafter, saspended specie paymenta
and ceased to do business, it is very doubtful whether a widely different
result were practicable even under the most faithful and akiflfnl man-
agement. Then followed the act of the legislature, by which theae
banks were placed in liquidation ; and there is Httle doubt that even
then their business might have been wound up with bat little actual
loss to the State, had not the ruinous policy been adopted of extending
the time of payment to those indebted, to the extraordinary period of
ten years, thus allowing all who preferred emigration to the payment

XiocwFc

COITDITION OF THE BiJIIKS. 235

of their just and honeat debts time and opportanity to leave tbe State
and carry off their property, the greater portion of which, ia maoy
instaDoes, was purchased with the very money drawn from the banks.

" To this false step, and the continued false management of these
banks, may be attributed most of our misfortunes. Public confidence was
destroyed, emigrants were warned away from our borders by threatened
taxation to pay a debt which they had no agency in creating. Oar
Ipgialatore caught the infection, became sectional in their views, would
not be convinced that Arkansas could manage with wisdom any enter-
prise, while under the control of the State ; and the doctrine obtained
that it was the duty of each member to secure for his immediate con-
stituents as great a portion of thepoblio treasure as possible, upon the
idea that there was no hope of ever extricating the State from her
embarrassments.

" This is one side of the picture. Let us turn now to its other and
brighter aspect. We have seen under what disadvantageous circam"
stances our State came into the Union, and by what errors and mis-
fortunes, in the very morning of her existence, her energies were
paralyEod, her enterprise fettered, and public confidence in her capa-
bilities almost entirely destroyed. Yet snch and so great were the
natural resoorces and advantages I have ascribed to her, and which
she really possesses, that emierants from other States could not be
turned away, and her population has increased in a ratio of almost
unprecedented rapidity— that is from 50,000 in 1S36, to 97,000 in 1840,
to 210,000 in 1850, and to at least 230,000 at this time (1862,) an in-
crease unequalled by that of any State of the same age. And her
wealth too has increased in an equal ratio, that is, from fifteen millions
to fifty millions, while her exports of the great southern staple have
rapidly risen from five thousand to one hundred and fifty thousand
bales.

In another part of his mess^e (Governor Boane stated that the bonds
issued for the benefit of the State Bank, and the interest that had
accrued thereon, amounted to |1,600,196, and that the notes still in
circulation amoanted to $47,197 60. The debts due to the banks,
supposed to be good, and the other available assets, amounted to
(682,962. "Showing that when a final settlement shall be made,
there wilt be a balance due from the State of $1,022,866 60, which she
is bound by every principle of honor as well as the law governing con-
tracts, to pay."

The deficit of the Beal Estate Bank would, the governor supposed,
swell the public debt to two millions dollars, "with an accruing
annual interest of about $120,000."

" I have no doubt that this debt could be funded upon liberal terms;
requiring the State to take up her now outstanding bonds, and in lieu
thereof issue new bonds payable at some future day, at the same time
giving some security for the payment of the accruing interest upon the
new bonds, which can be done by appropriating the assets of the bank
for that purpose. In this way the first step wul be taken towards the
extinguishment of our State debt. And by the time the new bonds
reach maturity, by pursuing a liberal policy in developing the re-

n,g>-ndtyC00glc

236 CONDITION OF THE BANES.

soarcee of onr Btate, we ahfill doobtless bo able to pay tbe debt entailed

upon na by onr banks.

" By adopting this policy our reputation as a State may be shielded

iVom the threatened taint of repudiation."

Mr. Bosfl, the financial receiver, BaidinfaiHreportof October 1,1862:
" Od Ist October, 1860, the notes and jadgmenta dne to the bank,

with interest calculated up to that time, amounted to the sum of

$1,081,660 17. This was cloeeed as follows :

Solvent 1267,186 61

Doubtful 241,404 52

Insolvent 276,664 46

Lost 296,304 38

"The collections from Ist October, 1850, to 1st October, 1862,
amount to the sum of |178,628 75. This amount was collected almost
entirely from debts classed as solvent. Not exceeding one- third of the
debts classed as doubtful will be collected. Between $6,000 and
(6,000 of debts classed as insolvent have been compromised, and a

Sortion of that amount collected. The balanca will oe lost. Of the
ebts classed as lost |417 01 have been collected.

" The amount that will yet be collected will not exceed $200,000."

The committee on banks of the house of representatives reported
that "they had consulted together as to the propriety of the legislature
turning over into the hands of the State treasurer all the books, assets,
evidences of debt, &c., of the bank, and that discretionary power be
conferred on him to wind up the same, with a dne regard to the best
interests of the S^ate. But upon refiection and deliberation, the com-
mittee are of opinion that such an act on the part of the legislature
would be, in effect, a merger of said hank into the State, ana thereby
destroy it" separate corporate existence, and consequently resnlt in loss
to the bank, and thereby to the State, of whatever good debts still re-
main unpaid. Or if snch would not be the result, it would at least
fbrnish new grounds of defence to the debtors, and thereby cause great
delay in the collection of debts. Bach being the opinion of the com-
mittee, they would beg leave respectfully to suggest to the general
assembly the propriety of passing an act to extend the present law in
relation to the liquidation and settlement of the bank to a period of
two years longer, in order that the amount of $200,000 of good notes
and judgments, before mentioned, as remaining ancoUected, may be
secured to the State."

In conformity with this recommendation an act was passed, on tbe
12th of January, 1863, to extend for two years the act putting the
State Bank in liquidation.

Before quitting tbe concerns of 1862-'63, it is proper to observe that
tbe poblic records of this year contain the only indications that can
be found of a disposition on the part of any of the citizens of Arkansas
to return to paper money banking.

The earliest of these in point of date is to be found in the report of
C. C. Danley, esq., the auditor of public aooonnts, October 1, 1862.

"The policy," he said, "of connecting Stato governments with
banks is exploded, but it is thought that ^e subject of free or iudi-

i,L.ooglc

COKDITION OF THE BAKKS. 237

Tidual banking sa a eeparate branch of bnsiness woald be eminently
worthy the consideration of the legialatore. In the langaage of an
vmineDt financier : ' banke have loat their power, under the increase
of private capital, and the immense accumnlation of the precious
metals, to raise and depress prices by the capacity of expansion and
contraction. The days of banks are over as associsted companies.
They will exist as private establishments, and the change will be of
incalculable advantage to the public' BankiuK as a monopoly, and
when it is confined oy law to a privileged few, is obnoxious to objec-
tions, and repugnant to the eenius and spirit of the age in which we
live. But no reason can be snown why a citizen should be restrained
by law from banking as a bosiness, any more than that laws should
be passed to restrict the business of selling merchandise, or raising
corn or cotton."

If by banking be simply meant receiving money on deposit, dis-
counting notes of hand, and dealing in bills of exchange, certainly
" no reason, can be shown why a citizen should be restricted therein
any more than in the bnsiness of selling merchandize or raising corn
or cotton." But if with the business of banking, properly so called,
be connected that of issuing promises to pay intended to pass as sub-
stitutes for metallic money, sucA banking must sooner or later be
productive of great evils to the community. By every paper dollar
it issues it drives a gold or silver dollar out of circulation. Kor is
this all. For anatural system of credit it substitutes an artificial one,
by which debts are multiplied to an extent much exceeding the
advantage gaiued.

We have not the name of the eminent financier who said : " banks
have lost their power to raise and depress prices by contraction and
expansion." But recent events have shown that he is, to say the
least, greatly mistaken. If other things be the same, and the power
to issue small notes be retained by the banks, " widening the specie
basis" only facilitates raising higher the paper superetructare. If,
of late years, the expansions and contraotionB of the banks have been
less frequent and less deleterious than formerly, it is owing wholly
and solely to the operation of the oonstitutional treasury system of
the United States. That, by checking the banks in their expansions,
causes their subsequent contractions to be less injurious than they
otherwise would be. But, unfortunately, it only checks the banks,
It has not the power to control them.

Towards the close of his message Governor Boane entered somewhat
St length on the consideration of the subject.

" We have no monetary institutioos among us; yet our State is
flooded with the paper currency of her sister States ; thus subjecting
ourselves to be imposed on by spurious and unsound banking institu-
tions abroad, about which we know nothing, and in their management
can have no band, rather than trust ourselves and institutions of own.
It is susceptible of democstration that the citisens of Arkansas pay, in
the shape of disconnts, exchange and interest upon foreign bank
paper more than sufficient to discharge our entire State debt in a few
years."

It is a matter beyond dispute that bo long as the other States have

n,g:,.-,.dtyC00glc

238 COKDiTunr of thb bakes.

a false monetary system, Arbanssa mnst suffer more or leas iirom it ;
but it does Qot theaoe follow that sbe will diminish her safferinga by
establiahiDg a false mooetary system of her owd. Nose of the citi-
zens of Arkansas pay discount or interest to the banks of Loaisiana,
Tennessee, or any other State, unless they borrow from them, and if
they borrow they oaght to pay.

The chief danger to which we aie expcued from the foreign bank not«8
in circulation among ns is that they will depreciate in onr hands, if
not become entirely worthless. But we are less exposed to this danger
than the people of any other t'tate. In Texas, one of the Btates
adjoining as on the south, there is but one bank, and that has a rery
limited circulation. Onr other southern neighbor, Louisiana, has
banks a plenty ; but none of them issae notes of a less denominatioQ
than five dollars, and all such of their notes as reach ns are soon
carried back to New Orleans in the regular course of trade. On the
west ve hare the Indian territory, where the United States eovernmeot
disburses large amounts of gold and silver, much of which must find
its way into Arkansas. On the north we hare Missouri, none of the
banks of which Stat« issue notes of a less denomination than fire
dollars. One of the States opposite to ua on the east, Mississippi,
had, in the year 1840, thirty-eight banks, with a circulation of
$16,171,639. Now, (the Northern Bank at Holly Springs baring
&iled,) she has but one or two small banks nf issue, the notes of
which seldom, if ever, reach us.

The chief danger to which we are exposed is from the banks of
Tennessee, many of which, if they be not now rickety oonoems, are
very different from what they naed to be. Perhaps some of our citi-
sens cannot conveniently avoid taking Tennessee and other bank notes
from " movers " and other traretters passing through oar State, or
along our borders. But if the farmer or planter wno receives such
notes promptly pays them over to the merchant, and the merchant
promptly sends them oat of the State in payment of his purchaaea,
these hank notes will, to that extent, become substitutes for private
bills of exchange, and in this way do no evil. It i« when they beoome
substitutes for gold and silver coin, that would otherwise circalate,
that bank notes are objectionable.

The notion some entertain that the people of Arkansas are paying
interest on the whole mass of foreign hank notes in circulation among
them is an erroneous one. If au Arkansas man sells bis corn or his
cotton, and gets in exchange for it Tennessee bank notes, and then
retain those notes on hand for a year, he is not paying interest to the
bank that issues the notes, hut be is failing to receive the interest
that would have been due to him, if he bad obtained in exchange for
his corn or his cotton the notes of hand of some private individual.
By the oontriranoe of nominal convertibility, and by the additional
contrivance of issuing their notes in such amounts as adapts them to
circulation, the banks invert the natural operations of credit, and
instead of paying, receive interest on the debts due by them. But
this interest is not paid by the mass of the community. It is paid by
those who borrow directly from the banks. The inconveniences the
mass of the community suffer come in other and indirect won.

CONDIllOK OF THE BASKS. 239

For such erile as the people of ArVauBaa really saffer from the cir-
culation of foreign bank notcB among them they have the remedy in
their ovn hands. It ia Bimply to rel^se to receive them, or, if that in
all cases he not practicable, let it be a rnle to send them out of the
Stat« as 800D as possihle. Establish " free hanks " in Arkansas, and
a large portion of those so called "free books" will become little
better than so many machines for circnlating in onr midst the notes
of banks in distant States and Territories. It ia by such suhtertnges
that "free hanks" live.

"I am not," continned Governor Roane, " nninformed as to the
extreme sensitiveness of our people upon the sulgect of all associations
with banking privileges, and therefore approach the subject with great
care. Perhaps, were I not so thorougnly convinced that the best
interests of onr people demand something of this kind, I wonld yield
my own convictions to the opinions if not prejudices of others, and
leave this subject to the consideration of my auccessors.

"I am atterly opposed to all banking iustitntions, whether of a
national or Btate creation, dependent upon or in anywise associated
with the State or federal government, as well as other chartered insti-
tutions operating upon a capital which remains within the exclusive
control and management of the institution itself, and thereby con>
fiding, without enfScient security, the interests of the commnnitjr to
their hands. This is not the case under the system of 'free banking'
to which I now allude; nor can I see that the objections which have
rendered hanks of every description, under the old system, so justly
odious, can obtain against the proposed system of 'free banking,'
BO eminently sncoessful in answering all the objects claimed for them
in other States. It would be well to bear in mind that the resem-
blance between the system of 'free banking ' and those incorporated
institutions with which we are more acqnamted, and from which we
have suffered, ceases with the name ; the one being liable to all those
objections so jnstly urged against irresponsible monopolies, while the
other is purely an individual enterprise, claiming and possessing no
privileges which may not be enjoyed by every member of the com-
munity, clothed with the power to do much good by granting accom-
dations to individnal citizens, and affording facilities to the commerce
of the country without the ability to invofve the Btate to the amount
of one dollar; for she will be in nowise connected with or responsible
for the acts and doings of those institutions, and equally without the
power to detraud the people, or indict upon them an irredeemable and
depreciated currency. To guard against these evils of the old system,
and to protect the interests of the people against such abuses, ample
security in the shape of undoubted stocks or other substantial means
are required to he deposited with such individuals or State ofBcers as
the act may indicate, with power to sell without delay, whenever the
bank shall tail to redeem her circulation or meet her liabilities. Thus
it is manifest that every interest in the slightest degree involved is
amply secured agaiubt loss ; while a circulating medium, convenient
in itself, safe in every respect, and current everywhere, can be ftir-
Dtahed to our own people within onr own State, the interest paid for
accommodations kept ht home; and Arkansas made the recipient of

240 CONDITION OF THE BANKS.

those profits that are daily poured by her cltizeas into the coffers of
other banks and other treaBuries.

" In conclusion, without going into the discQBsioD of this subject at
lenglh, I would recommend the encouragement of inNurance companies
in our principal cities and the passage of a law authorizing the estab-
lishment of the new banking system upon a secure and well guarded
basis." *

In justice to (jorernor Roane, it should be borne in mind, that when
he wrote these remarks, the system of "free banking" had been very
imperfectly tried. Experience has since shown that it is only the old
paper money evil under a new phase. Considering the comparatively
short period it has been in operation, the " free beaking" system has
been the instrument of as much fraud and as mnch wrong as the cor-
porate system. The fundamental objection applies to both, that they
substitute artificial for natural credit, and false money for true.

There was a constitutional obstacle to carrying into effect the mea-
sure recommended by Gkivernor Roane. This Mr. Huey sought to
remove by the following resolution, which he submitted to the senate:

*' Rtsdved by the general aaaembly of the State of Arkaa&u, That
the following amendment be proposed to the constitution, riz:

" The legislature of this State shall have power to pass laws allow-
ing the exercise of free banking privileges.'

In the house of representatives, a report having the same object in
view was made by the committee on the judiciary.

The result was the passage of "An act to take the sense of the qaali-
fied voters of this State, for and against a call of a State convention
to modify and reform the present constitution of this State," one of the
proposed " reforms" being the authorization of " free banking." The
people, however, refused to call the convention, and the provision
" that no bank or banking institution shall be hereafter incorporated or
established in this State' ' is still part of the constitution of Arkansas,

It is to be hoped that this provision of the ooustitntion will long
remain without change. The security " free banking" holds oat is
an illusion. At the very moment when the State stocks and bonds and
mortgages which are pledged for "the ultimate redemption" of bank
notes are most wanted, they prove least available.

The system has now been in operation in the State of New York for
some twenty years, and the superintendent of the banking department
of that commonwealth, in a report dated in 1355, bears the following
testimony in relation to it:

" There has been no bank failed in this State, having a circulation
secured whMy by public stock of this State [New York] and of the
United States, the circulation of which has not been redeemed at the
par value thereof, and in like manner without interruption, so that
the notes lost nothing of their efficiency and value in circulation until
actual redemption.

" On the other band, during the existence of the system [commenc-
ing in 1838,] there has only been a «n^ instance in which the ciroa-
lation of a failing bank has been redeemed at par, when the circulation
was secured by bonds and mortgages, and not any where it was aeoared
by the stocks of other States. In such cases, also, the failure has been

tioiwlc

CONDITION OF THE BANKS. 241

iDTariably attended by at least a ebort space of time, daring which
redemptions were not made while awaiting the sale of t^e eecprities.
The notes in the meantime, loeing their ralne as a circulating medium,
have been disposed of at great lota by the timid and necessitous."

Here we see that in Xew York, where the system beean, "ultimate
secarity" has been found only in New York Btate and United States
Btocks. No such security has been fouud in the stocks of other States,
or in bonds and mortgages.

Equally striking is the testimony of the auditor of the State of Indi-
ana, in his report of Norember 1, 1866, in which he refers to the " free
banking" law of that State, of May 28, 1852:

" Within the first two years of its operation nearly one hundred
banks were organized in this State, with an aggregate circulation of
orer nine and a half millions of dollars. A large portion of the capi-
talists who selected Indiana as the theatre of their transactions were
citizens of other States, who detected in the loose meshes of the law
the opportunities of speculation and the loop-holes of escape. Their
Ba^city was manifested in the selection of their points of ousiness —
points almost inaccessible to the broker, where neither commercial,
mercantile, nor mechanical pursuits existed to require their assistance.
To what extent the mania of free banking would hare been carried,
bat for the bursting of the babble in 1854, can only be imagined; bnt
we may well suppose that, at the rate it progressed, Indiana could
have famished the commercial world with currency. The decline of
the system was quite as rapid as its rise."

Other testimony iu leganl to the bad working of the " free-banking"
eyetem iu other States might be giren, bat it is presumed not to be
necessary. It may modify fhe evils ot the old system. But it only
modifies; it does not remove them.

It was on the 2d of November, 1862, that Ghveraor Boane sent his
last message to the general assembly. His successor^ E. N. Conway,
was installed on the 16th of the same month.

In his inaugural address (November 16,) and in his first message
(November 27,) Qflvernor Conway took the stand which he has ever
since firmly and consistently maintained:

" That the burdens of taxation may fall lightly on the people, we
should observe and enforce rigid economy and strict accountability in
all agents and departments of the government. That we may estab-
lish the credit of the State on an elevated basis, we should avoid any
new debts beyond our ability to pay them punctually and honestly.
Such debts as the State now owes should be paid as early as she can
command the means without oppressiug the people.

"We should with great care and vigilaace guard the money and
lauds of the State from being squandered, and should secure their
faithful application to the objecte tor which they were intended, lo such
manner as will best promote the interests of the whole State."

Such was the language of the inaugural address. That ot the mes-
sage was like unto it:

"Since the State has not the means to pay, at present, even the
interest on the bonds issued to the banks, it is fortuoate that those
issued to the Real Estate Bank of the State of Arkaoaas. will not be
H.Ex. Doo.112 16 :C.OO>^Te

242 CONDITIOIT OF THE BAKES.

dae Qntil tlie 26th day of October, 1861, and that the six per cent,
booda issued to ' The Bank of the State of Arkansas will not be doe
until the let day of January, 1868, and that the five per cent, bonds
issued to this bank will not be doe until the Ist day of January, 1887.

" Each bank is bound, and its aesetA set apart, to pay the interest
on the bonds issued to it, and also the bonds, when due.

" The assets of each bank should be guarded with vigilance, and
those having them in charge held to strict accountability, so that every
dollar may be sacredly applied towu-da extinguishing the debts.

" When the assets shall have become exhausted, we will then be
enabled to count and know the deficit, and may then adopt such mea-
sures as will secure its payment without oppressing the people,

" It seems to me that past experience should warn us from the
policy of staking the faith and credit of the State a second time OB
these miserably Insolvent banks,

" I recommend that these institutions be thoroughly investigated,
and, should abuses exist, that such legislative action be adopted as
will correct them.

" It will require all the prudence and good management we can use
to relieve the State from the embarrassed condition to which the bulks
have brought her. We most not only be economical in ezpenditurea,
but with sTeepIess care guard all the means we hare."

The tenth session of uie general assembly began November 6, 1854.

"The reports of the auditor and treasurer, ' said Gktvernor Con-
way, " contain much valuable information relative to the fiscal afiaira
of the State, and also recommendations worthy of yonr consideration.
By these reports it will be seen that the State debt for warrants
issued by the treasurer to defray ordinary expenses of the State, and
which amounted to |IT&,T61 74, was all paid during the last twofisoal
years, except |371 76 ; and that on the 1st dav of October, 1854, there
remained in the treasury, subject to be used for ordinary expenses, a
balance in specie of $29,614 29.

*' With prudence and economy in all the departments of our gov-
ttrnment, the present revenue laws will bring into the treasury means
amply sufficient, after the 15th day of May, 1865, to defray the or-
dinary expenses of the State in the constitutional currency of gold
and silver."

This marked the commencement of a new era in the fiscal history
of Arkansas. The governor regarded it with calm satisfaction ; but
the State treasurer, Mr. J^ H. Crease, oould not conceal his feelings
of exultation.

" Before proceeding farther, allow me to indulge a feeling of State
pride, in pointing out the fact of a specie balance remaining in the
treasury, after redeeming all the outstanding treasury warrants — a
circumstance which has not occurred (to my recollection) for several
years past, and it is devoutly to be hoped that a necessity for the State
to issue any more ' promises to pay' may never again occur, at least
to meet the ordinary expenses of the State government."

" By bad management of the banks," said the governor, " thefiu^
and credit of the State have received a wound whioh has retarded her

n,g:,.ndtyC00glc

COOTHnON OF THE BANKS. 243

prosperity ; bat by jadioiooB RdmiDiBtration of oar affairs time vill
heal the wound a^ain.

"The State of ArkaDsas will never repadiata her just debts. She
will honestly pay them all whenever she can command the means.
Wben the bonds of the State were issued to the Real Estate Bank of
the State of Arkansas, it never was intended that the people shoaldbe
taxed to pay the bonds, or the interest on them, bat, on the contrary, as
reqnired by law, the stockholders (for secarity to the State and to the
bondholders for the payment of the bonds and the interest on them)
mortgM;ed to the State 187,810 acres of land, valaed by commission-
era, nnder oath, at (3,380,772 38. These lands embraced many of
the best and most valnable plantations in the State. The State has
not yet resorted to these mortgaged lands to raise money to pay the
interest dae on the bonds ; and it is deemed safe policy to let them
remain undisturbed until the large amount of assets placed in the
hands of the trustees, under the deed of assignment, shall have been
accounted for, and every dollar which can be realized from the nsseta
sacredly applied towards paying the debts of the banks. After the
assets shall nave been accounted for and so applied, the balance of the
debt could be ascertained and proper measures adopted to secure the
honest payment of every dollar of it without resorting to taxation foi
that purpose.

"The office of financial receiver of the Bank of the State of Arkan-
sas became vacant on the 3Ist of August, 1864, by the death of John
H. Boss. To fill this vacancy, the executive, on the 4tb day of Sep-
tember, 1854, appointed Peter T. Orutchfield."

The net amount of the liabilities of the State Bank were estimated
at $1,180,911, "to meet which, the remaining assets of the bank, in-
cluding lands and towa lots, which have been taken by the bank in
payment of debts, and the conveyances thereof taken to the State, are
liable. It is impossible now to state how far the proceeds of the assets
and of the lands and of the town lots will go towards extinguishing this
debt. But after collecting and applying all that can by good man-
agement be derived from these sources, we can then ascertain the
tmlance of the debt, and adopt suitable measares for paying every
dollar of it withont oppressing the people. It is believed that the
assets of the Real Estate Bank, if properly accounted for, collected,
and applied, together with the proceeds of the lands mortgaged by the
stockholders to the State as security against loss, will, if prudently
managed, extinguish every dollar of the State's liability on account
of the Real Estate Bank. Then the only debt of the State, on acooust
of the banks, which will remain without adequate means to pay it,
will be the balance of the debt of the State Bank, which, it is be-
lieved, will be less than one million of dollars."

" Although by the bad management of the banks the faith and
honor of the State of Arkansas have been tarnished, time, with a
prudent administration of our government, will, in a short period,
restore them to their original brightness and lustre. Then patriotic
oitiEens will point to the past history of evils brought upon the State
by the banks, and the people will be warned fVom a policy vhicfa

tioiwlc

244 CONDITIOH OF THE BANKS.

voold again bring npon themselves loss, and upon the credit of the
State di^oQor."

Mr. Cmtchfield, the Snancial receiver, io a report dated October
31, 1854, iDtrodacwd the following remarks:

" There is still a large amount of good solvent debts yet dne the
bank, and out of that amount a large portion has fallen on securities,
the most oppressive kind of debts. In view of these facts — ia view of
the general and disastrous failure of the crops this year, as well as
the great stringency in the money market, I would respectfolly re-
commend an extensioH of the liquidation act for two years, which
expires on the 12th day of January next, in order to enable the debtors
to this bank to purchase State bonds with which to pay their debts.
As it has heretofore been considered a wise, good, and honest course
Jor the State to take up her bonds, sold in good faith, by all lair means
within her power, {for a different sentiment on this subject I believe
no honest man has yet had the hardihood to avow,) a re-enactment
of the law I have recommended would greatly foster that policy here-
tofore pursued by aiding the State to pay her indebtedness."

In conformity with this recommendation an act was passed extend-
ing for two years the time for winding up the State Bank.

The eleventh session of the general assembly began on the 3d of
November, 1856.

" By the reports of the auditor and treasurer," said governor Con-
way, "you wul see that there remained in the State treasury, on the
Ist day of Oclober, 1866, subject to be used for the ordinary expenses
of the State, the sum of $142,154 22 in gold and aUver, and that all
the Arkansas warrants ever issued had been redeemed except $198
not presented for payment."

The internal improvement fund and the saline and seminary funds
(both appropriated to the support of common schools) incre^ed the
specie in the treasury to $176,129 64. In addition, there was, in
Arkansas bank notes, the sum of $16,490, which, said the Qovernor,
"should be registered and burned; and hereafter,' should notes of the
Bank of the State of Arkansas be paid into the treasury, provision
should be made by law for registering and burning them, so that we
may get rid of them as speedily as possible, and have nothing in the
treasury called money but the constitutional currency of gold and
silver."

" You will," continued the governor, " see by the reports of the
auditor and treasurer that during the two years ending with the 30th
of September, 1866, there were cancelled and filed with the State
treasurer 183 bonds of this State which had been issued to and sold
by ' the Bank of the State of Arkansas,' amounting, with interest, to
$333,146 28 ; and that during the same period there were cancelled
and filed with the State treasurer 370 bonds of this State and many
coupons for interest on such bonds which had been issued to and sold
by 'the Real Estate Bank of the State of Arkansas,' making, for the
bonds and the interest, $766,507 10 ; showing that $1,088,653 39 of
the debt of the State of Arkansas, on account of the two banks, was
cancelled and filed with the State treasurer (as fully paid off) during
the two years ending with the 30th of September, 1856."
Inasmuch as previous to September 31, 1864, two handred'^nd

'lONDITIOX OF THE BANKS. 245

tfairtf-seTen State Bank bonds, amoanting, with the interest on them,
to $328,166 61, h&d been cancelled and filed with the treasurer, the
whole amoant of both State Bank bonds and Beal Gatate Bank bonds,
with the interest on them, thas cancelled and filed, amonnted, on the
30th of September, 1856, to $1,416,820.

"The Bank of the State of Arkansas belongs to the State, and
there never were individaal stockholders concerned io it. From the
banning to the present time it has been controlled and managed by
officers elected by the general assembly of the State.

" By the sale of State bonds the capital of the bank was obtained.
By the terms of the charter the bank was bonnd to pay the interest on
the bonds sold, and also to pay the bonds when dae. To meet these
liabilities the assets of the bank were appropriated br law. Ko other
iiind was appropriated, for the State had none; but the faith and
credit of the State were pledged for the payment of the interest and
the hoods when due. To this extent the honor of the State was con-
fided to the keeping of the Bank of the State of Arkansas. The bank
soon failed and tarnished the honor of the State by leaving the in-
terest due Qpon the bonds unpaid. In January, 1843, the general
assembly passed an act to place the bank in liquidation. Since then
more tlj^n thirteen years have elapsed, and it is represented that the
afiairs of the bank are now so complicated that they cannot be under-
stood, aod the whole of the assets ascertained without much labor
and a thorongh investigation.

" Deeming it essential to the interest of the State that the affairs
of the bank should be thoroughly investigated, the executive, a short
time since, caused John H. Grease to commence the work of examina-
tion. By a commanication from him, dated October 1, 1856, it is
believed, you will be fully impressed with the public necessity of having
the true condition of the bank ascertained, and the interests of the
State connected with it secured as far as possible. ««***_
" The policy of the executive is, to have the assets collected as far
as possible, and erery dollar faithfully applied towards paying the
debts of the bank. To accomplish this, the investigation of the bank
is absolutely necessary, and he has directed that it be prosecuted DUtil
completed."

"Although the State has succeeded in establishing and acting upon
the sound and commendable policy of receiving for revenue and pay-
ing oat for expenditures notning but the constitutional currency of
fold and silver, she is still eacambered with a large part of the debt
rougbt upon her by the had management of the banks. But with
prudence, skill, and economy in protecting the interests and in
administering the affairs of the State, aided by increasing popnlatioD
and wealth, we shall be fully able, by the time our State bonds fall
dae, to pay every dollar of the debt without oppressing the people
by taxation."

The joint committee on the auditor's and treasurer's books burned
^16,495 of "Arkansas money " that they found in the treasury ; that
IB to say, this amoant of Arkansas Bank notes. They also burned
2,666 copies of Sute Bank bonds and 980 of Beal Estate Bank bonds,
each for one thoosand dollars. These were in various stages of pre-
paration for sale, bat none of them had been oolaally sold.

2 46 CONDITION OF THE BANEB.

The financtal receiver, Jas. F. Fagao, eaq., reported, Qnder date of
October 1, 1866, tbat of the immeaBe amount of debts doe to the bank
only |35,000 voald probably be collected. In addition, the financial
receiver reported that he had on hand |216,845 in Real Estate Bank
bonds, coupons, and notes, and (913 66 in specie, making a total of
$252,768 55 of assets. On the other hand, the liabilities of the
bank for bonds outstaodiDg, and the interest thereon, amoanted to
$1,420,488 36, showiog an excess of $1,167,729 81 of liabilities over
assets.

The legialaturejiaBBed an act extending for two years the time for
winding up the afiairs of the bank ; another conferring on the gover-
nor the power to appoint a financial receiver and making the land
attorney the attorney for the bank ; and another giving the accountants
such powers as were necessary for a thorougn investigation of the
institation.

We have given the history of the Bank of the State of Arkansas in
the words of its own managers, and of those who were the eye-wit-
nesses of their proceedings. The hank itself most aooD eo out of
existence, and all its records be committed to the moles and uie bats ;
but its memory ought not to perish. It has cost the people of
Arkansas dear, but the experience they have acquired will be cheaply
porcbased if it prevents hereafter the establishment within the bounds
of the State of other eystfims of false money and fictitious credit.

But it is not in this point of view only that this history is important.
Those who have pnrchased the bonds of the State, and who have been
disappointed in not receiving 'the interest thereon punctually, may
here see the causes of their disappointment. They are, primarilv,
mismanagement and misfortune on the part of the ofScers of the hank,
and absolute inability on the part of the people of the State to comply
literally with their engagements as expressed on the face of the bonds.
Crushed to the earth by the paper money revulsion, it was with diffi-
culty the people could defray the ordinary expenses of the State
goremment. The revenue of the State was for years in successioa
collected, for the most part, in Ankansas bank notes and Arkansaa
treasury warrants, which had but little, if any, value beyond the
bounds of the State, and an ever fiuctoatiog value within its boands.
In this wretoheil paper medium, depreciated at times to 66 per cent.,
if not more, below par, the judges of the courts, and all the other
ofBoers of State, from the governor downwards, bad to be content to
receive their salaries. It required at limes no little financiering
to acquire specie enough to pay postages.

Yet it is worthy of remark, that even when the prospects of the
State and the people were most gloomy the doctrine of repudiation
never received any fnvor among them. This is a credit due to the
people of Arkansas withoat distinction of party.

Another thing well worthy of observation is the steadiness of the
policy that has been pursued in relation to the State debt. While
the people and their constituted authorities have always acknowledged
the obligation of this debt, they have from the beginning steaouly
maintained that, as the debt had been incurred solely for the benefit
of the banks, the assets of the banks should, in the first place, be
applied to the liquidation of the debt, bo far as they will go, and, ufcer

OONDinON OF THE BANES. 247

that, each fartlier measnrea be taken as ma; be necessary to preserve
the honor and credit of the State. If the present hard money system
of the State be ma*intaiDed, and if the plan for wioding up the banks
be persisted in, it is believed that the increase of population and of
solid wealth nnder it will be so great that the State will, in doe time,
be relieved from all its emharrasenienta.

According to the table on page 211 the total assets of the bank and
its branches amounted, at the time they were transferred to receivers,
to |1, 991, 174 12. Omitting for the present the loans and discoants,
and other Hams dae from individnals, these assets may be eaid to have
been disposed of as follows :

The loans to the State of Arkansas, the five per cent, bonds issned
to the Real Estate Bank, for money loaned by it to the State and
redeemed by the State Bank, and the snms due by the State
treasurer, amonnting in all to $196,117 18, were nsed in adjusting
accounts with the State.

The specie, $62,948 93, was all expended in paying those creditors
who obtained judgments against the bank, and in defraying the
expenses of the bank and of the State.

The specie in the hands of Sylvester, New York, was used in satisfy-
ing a judgment against the bank in favor of Biggs & Co., of that
uty. This jndgment was obtaided on a certificate of deposit of Ar-
kansas Bank notes, issned by the branch at Fayetterille to Alfred
Wallace, a former director of that branch. Mr. Wallace, having
found out that the silver was in the hands of Sylvester, appears to
have made the deposit of paper for the express pnrpose of attaching
the specie.

The sum dne by the North American Trust and Banking Company
remains unpaid.

The amount due by the Beal Estate Bank and its branches,
$7,931 61, was used in adjusting accounts with that institution.

The notes of the Beal I^tate Bank and its branches ($76,225) were
nsed in making settlements with that bank and its branches, exchanged
for State Bank bonds and State Bank notes, and disposed of in defray-
ingthe expenses of the bank and of the State.

The small amounts due ^v banks in other States, in all $323 10,
appear never to have been collected.

The notes of banks in other States, $1,917 32, and the corporation
tickets, $1,676 35, amounted together to $3,693 67. Of these,
$2,814 621 remain on hand and are worthless.

The banking-houses were all sold under executions in favor of the
judgment creditors, and under such circumstances as to yield buji little
towards satisfying those judgments.

The banking-house at Little Bock, which cost about $28,000 in
1840, was sold in 1846 for about $200. Every effort to recover it
has resulted in nothing but costs and expense.

The banking-house at Batesville, which cost upwards of $15,000,
was sold in 1846 for one hundred dollars. The sum of $600 in
fiddition was afterwards paid to confirm the sale.

The banking-house at Fayetteville, which cost $7,600, was sold
nnder execution for $800.

The banking-hooae at the Post of Arkansasj which cost nearly

248 CONDITION OF THE BASES.

$16,000, was sold aader execution and boaght in for the anm of (100
in specie. It still remains the property of the State, bnt is so situated
as to be of no use either to the State or any of its citizens. At the
time it was erected it was described as one of the best buildings in the
State. Every effort has been made to sell it, but it has been found
impossible to obtain for it an offer of even |200.

The total liabilities of the bank and its branches amounted, at the
time the assets were transferred to receivers, to (1)910,023 92. Of
' these, (216,930 consisted of State Bank notes in circulation, all of
which, it is believed, except about (6,930, have been redeemed, partly
by receiving them for taxes, bnt chiefly by receiving them in payment
of debts due to tlie baok. In the last two years the treasurer has
received notes of the bank to the amonnt of (640 from tax collectors.

The deposits, (54,611 73, have been paid chiefly by giving the
depositors credits on the notes due by them to the bank.

The sum due to the Keal Estate Bank and branches ((2,016 97} was
liquidated in the settlements made with that institution.

At that time the principal and interest of 169 five per cent, and
1,000 six per cent. State Bank bonds, then outstanding, amounted to
(1,296,781 87. Of the five per cent, bonds 144, and of the six per cent,
bonds 409, amounting in all, with the interest on them, to (926,174 35,
have been redeemed. This, is a large snm ; but as there are still 691
six per cent, bonds and 26 five per cfent. bonds outstanding, on which
no interest has been paid during the last seventeen years, the sum due
on the Ist of October, 1868, on the State Bank debt was (1,247,142 60,
being only (46,636 67 less than the snm due on that account on the
1st July, 1842.

On page 47 the snm due to the State is set down at (340,676 71.
This was the balance then due pn the various funds advanced by the
State to the bank as part of its capital, the anm of (71,679 09
having, between the Slst of March and the 7th of Jnne, 1843, been
drawn from the bank for State purposes.

The original amount of these funds was as follows :

Five per cent, fand (61,065 18

Seminary fund 2,034 91

Common school fiind 1,390 36

Saline or aalt spring fund 127 50

United States surplus revenue 286,166 49

360,774 44
On these fhnds the following dividends were
declared:

On the five per cent, (nnd (7,611 72

On the seminaryfund 153 60

On tiie common school fund 128 48

On the saline fund 2S 87

7,914 67

On the United States surplus revenue fund 53,568 49

413,267 60

CONDITION OF THE BANEa 249

On account of theae fbnda the bank appearB to hare paid to the
State the foUowiag BmonDts :

SoTplos revenue fund < |330,661 22

Five per cent, fund 8,549 76

Common school fund 1,515 14

Fire per cent, bonda isaaed hj the Real Eatate Bank,
for money lent by it tti the State, and redeemed by

the State Bank 32,686 66

373,292 78

From thia It would appear that the bank diacharged all claima the
State had againat it, except for the sum of $38,974 72.

But it should be borne in mind that the State made most of ita ad-
vances in specie, or what wag the equivalent of specie, and received
hack B great part of the amount in paper depreciated many per cent,
below par. If we add the various auma paid out of the State treasury
for aalaries of bank officers, for the payment of judgment creditors,
and other objects connected with tne bank, amonnting in all to
183,863 15, it will be found that the State haa been greatly a loser
by thia unhallowed connexion, even if we do not take into considera-
tion the outstanding bonds yet to be provided for.

The whole amoant due by individuala at the time the aaseta of the
bank were transferred to receivers waa '|1,510,619 68, of which the
Rum of 41,410,663 18 waa in notes bearing interest. Through the
delay of those who paid in making paymenta, and through the failure
of many to pay at all, the increments of interest greatly awelled this
amoant.

Table A shows the present oondition of the notes due at the Little
Bock office, exclndiug anch aa were settled previous to October 1 , 18S0.

Table BCD ahowa the condition of the notes of the braaches.

Table E is a summary of tablea A B 0 D.

Table F is a Hat of Isnda taken from bank debtors, with atatements
of the final diapoaition of theae landa, so far as coald be aaoertained.

Table G- is a aammary of the collections made from debtora to the
bank (exclusive of collections in lands, from the time the act of liqui-
dation took effect till the 1st of October, 1858.

Table H ia a summary of the collections made in landa, and table
I a summary of the oollectious made in both money and lands, in the
above mentioned period.

Taken in their proper connexion with the notes accompanyiuff
them, these tablea will, it ia believed, be found to convey mucn uaefal
iDformatioQ.

Iq the claasiflcatiDn of the debta as aolvent, doabtful, inaolvent, and
lost, we have adopted as onr basis the reports made by Mr. Bosa in
1860 and 1852. He had, through hia intercourse with the attorneys
of- the hank and others, opportunities of acquiring a knowledge of the
standing of individuals, ao far aa regards their ability to pay, which

n,g:,.,dtyC00glc

250 CONDITION OF THE BANKS.

■we do DOt posseis. Many of tbose whose names are on the lirt, and
with whom he had a perBOnal acqaaiataDoe, have since died or re-
moved from the State.

Where we have had reason to believe that Mr. Boss erred, we have
not faeeitated to correct his classification, but we may have erred as
well as he.

It has been oar anxions deaire to avoid doing injustice to any indi-
vidual ; but from the number of persons employed in making collec-
tions— Bberiffs, attorneys, &c. — some of whom may have neglected to
make proper returns, and from the manner in which the books have
been kept, it may be that payments have been made for which credits
have not been daly given.

By comparing teble I with the statement given on page 213 of the
amount due from individuals in 1843, it will be seen that at some of
the offices the collections have been much better than at others.

At Little Sock, where the gross debt was $626,340 66 in 1843, the
ooUections have, in fifteen years, amounted to $680,906 57.

At the Post of Arkansas, where I he gross amount due was
$263,193 18, the collections have amounted to $267,680 76.

At Little Bock the collections have been equal to the gross amount
due at the time the act of liquidation took effect, and to $64,666 72 on
accoont of the interest that subsequently accrued.

At the Post of Arkansas the collections have amounted to very
nearly the gross amount due in 1843.

This is, indeed, not much to boast of; but the contrast between
these two offices and those at Fayetteville and Batesville is greatly to
the disadvantage of the last two.

At Fayetteville, on a gross snm of $366,642 66, only $224,247 90
has been collected ; and the collections at Batesville have been only
$97,743 46, on a gross amount of $264,642 90.

From table J it appears that the total of collections in money and
lands has been $1,280,628 47. Add this to the assets on hand (ezda-
live of loans and discounts) in June, 1843, and we have an aggregate
of $1,729,049 46. To this should be added the interest that aocrned
on Real Estate Bank bonds between the times in which they were
received and the times in which they were exchanged for State Bank
bonds and coupons. Many of the Beal Estate Bank hoods which were
received by Thornton between 1846 and 1849 were not exchanged for
State Bank bonds sooner than 1867 and 1866. During all this time in-
terest was aocming on them. From the manner in which the books have
been kept, it is impossible to tell the exact amount ; but it may be eet
down in gross at $100,000. Add this to the snm above mentioned,
and we have $1,829,049 60 as the total of assets that were realized by
the receivers.

Seeing that the amount is so considerable, the inquiry may well be

S reposed, why so large a sum is still due on account of the State Bank
ebt?

We reply, briefly, that the assets may be said to have been applied
in the following manner :

uy Google

CONDtnOH OF THE BAVKfl. 951

la redeeming State Bank nolee that were in cironlatioa |210,000 00

Id paying depoeitB 64,611 73

Id paying bank balaaces 2,016 97

Id repayments to the State 268,692 27

InreaemptioiiofStatebondfl andtheinteresttlieTeoD... 925,174 35

Total „ 1,460,496 32

Take tbisamoont from (1,829,049 64, aDd we have left |368,564 22.
Add to this the snm of $83,853 16 paid oat of the State treasury on
accoQDt of the bank, and we have (462,607 37 a> the total of expensea
and of losses through sacrifices of property from the time the act of
liquidation took effect.

Large as the amount is, we believe it falls short of the reality.
From the manner in which the books were kept it is impossible to
give a regular expense and a regular profit and loss accoont ; but the
evidence that those expenses and those losses were enormoos is too
strong to be mistaken.

Take a few cases by way of illostration :

About the 3d of May, 1849, James M. Curran, esq., being then
owner of State Bank notes to the amount of |9,3S6j instituted n«ne^>
fimr suits thereon against the bank, before a justice of the peace, in
Little Bock, "and recovered against said bank for his debt and
damages, together with his costs in each of said suits, amoanting in
the aggregate to the sum of $9,356. for his debt, and $6,314 26 for his
damages, less a remitter for the sum of $8." The case was carried up
to the circuit conrt of Palaski county, thence to the supreme oonrt of
Arkansas, and thence to the Supreme Court of the United States, where
the decision was in favor of Mr. Curran.

Mr. Curran died October 6, 1864. Soon afler his death, (November
15, 1851,) lands, lots, and honaes, which had cost the bank$60,730 66
were sold ; bat as they brought only $8,300, they did not satisfy the
judgment

On the 27th of December ensuing, (George C. Watkins, esq., the
partner and the executor of the last will of Mr. Curran, had the
judgment revived. Other lands, lots) and houses, which had cost the
bank $45,118 91, were then sold. But as they brought only $8,717 31,
neither did they suffice. Oat of its remaining assets, the bank had to

Siy $3,870 79 to Mr. Watkins, as the executor of the last will of Mr.
urran.

Thus a debt originallv of $9,356, and which, with dunages and
interest, amounted to only $20,883 20, swallowed up $109,720 60 of the
assets of the bank.

Another of the judgment creditors of the bank was the late M*^.
Alfred Wallace, a gentleman who, as a director of th« branch at Fay-
etteville, had partaken largely in all the benefits the bank could confer.
He was always on the lookout for the specie of the bank, or whatever
else was tangible among its e£Fecte.

Id a report dated December 30, 1848, a committee of the legislatare
made the following statement :

" It seems that in December, 1846, Mr. Wallace obtained judgment

252 ooNDmoH op th£ bakes.

agniast the bank m the Wasbingtoa circait court for over |5,000, and
in April 184? be recovered judgment for over $13,000.

"To make these jndgments, Mr. Wallace has caused to be sold
about 2,200 acres of land and several town lots belonging to the bank,
and became the parchaser of the same at a riiinous sac^fice, leaving
stilt unpaid the greater portion of the debt. Mr. Wallace has also
levied on the safe of the Fa^etteviUe branch, and, if the legislature
does not interpose and relieve the bank, will ea^pose the same to tale,
and no doubt thereby^ procure a great sacrifice of said assets. He has
also filed a bill in the chancery side of the Pulaski circuit court to
subject the assets of the principal bank to the payment of his judg-
ments, and will sue out an injunction toregtrcUn thebtuineaa operationa
oftke bavk until his bill is determined, which will retard the liquidation
of the affairs of the bank and ultimate in an immense sacrifice of her
assets. He is also garnisheeing the debtors of the bank, and levying
upon real estate sold by the hank to private individuals since he
obtained his judgments. By all these means the committee have no
doubt but Mr. Wallace will succeed in collecting his judgments, but
he will do it at a sacrifice of the bank, and indirectly to the State,
which the general assembly should not permit."

To avert these direful consequences a bill was finally passed to
satisfy the claim of Mr. Wallace outof the State treasury. The bauk
then recovered possession of its lands, but they ultimately produced
little or nothing.

Under a judgment obtained by-the United Stat«s on notes of the
State Bank, amounting to some five or six thousand dollars that had
been received at some of the land ofBoes, a large amount of real estate
was sold at a great sacrifice. But on representations being made of
the ruin it was thereby causing the United states was induned to stay
its hand.

The legal rights of Messrs. Ourran and Wallace and of the United
States were indisputable ; but our report would be incomplete if we
did not show the effect the enforcing of these legal rights had on the
interests of the bank. A few more judgment creditors like these would
have swallowed up all the effects of the Bank of the State of Arkansas,

The fee bills of the sherifEs and clerks of courts swelled to large
amounts. We have one fee bill before as of H. Haralson, clerk of
the circuit court of Pulaski county, subscribed March 13, 1644, and
amounting to $1,137 24, but he deducted $237 24 for prompt pay-
ment in specie. In the same year he rendered two other bills, one for
$88, and the other for $288 67. The first or large bill commenoee
September, 1842.

So, at the branches, the fee bills were enormous as may well be
supposed from the number, of suits instituted and the manner in
wnioh they werb contested. At Batesville, in some periods, the ex-
penses appear to have exceeded the collections.

In some of its transactions with the Korth American Trust and
Banking Company the Bank of the State of Arkansas hag been very
unfortnnate. In April, 1844, the bank, through its president, Hr.
Field, succeeded in making a settlement with the company. The
boLanoe due to the bank was admitted to be $107,000, and taven New

tioiwlc

COHDlnOlI OF THE BAKES. 253

York gentlemen, some of them men of distinction, and all then be-
lieved to be men of wealth, did jointly and sererallf goarantee the
payment of the same.

The regular intercourse of the two iiiBtitations was then resumed.
The principal bank and the branch at Batesville made additional remit-
tances, amounting in all to $26,660 28, and the Trust Company com-
plied with its engagements till Uay 6, 1841, when it dishonored drafts
of the bank and its branches, amoanting in all to $26,464 84.

After considerable delay, a suit was instituted against the guar-
antors ; but by this time six of the seven were reported to be unable
to pay, and the guaranty of the seventh amounted to nothing, as it
was then discovered that "the law of New York did not recognize a
scroll to be a seal," Aa the seven New York gentlemen were all men
of business, it must be regarded as something remarkable that they did
not know this when they signed the instrument.

Every effort to get the money for the Trust Company having failed,
Mr. A. E. Thornton, who was then financial receiver, made an assign-
ment of this claim ou the 9th of April, 1848, to Wm. S. Paradise,
esq., of Philadelphia, on condition that the said Paradise should
(after deducting all expenses and satisfying all demands Elijah Paine,
a lawyer of New York, had for fees, and also after satisfying all
claims he, the said Paradise, had against the bank) pay over to the
financial receiver, in notes of the Bank of Arkansas, any amount he
might receive from the North American Trust and Banking Company.

This is the last trace of the claim we have been able to find on the
books or among the papers of the bank. It is reported that Mr.
Paradise is dead, bat we have no direct information of his decease.

At our suggestion Mr. Wilson, the present financial receiver,
addressed a letter to J. A. Palmer, esq., who was stated in the public
papers to be the financial receivet of the North American Trust and
Banking Company, requesting such information as he could give of
the present state of the claim. B. W. Bonney, esq., who replied in
behalf of Mr. Palmer, said :

"The North American Trust and Banking Company, while in
active bnsiness, executed several trusts by assignment and transfer of
portions of the property of the company to trustees to secure the
payment of certain specified debts. After the company failed, David
Leavitt was appointed receiver of the property of the company, and
suits were instituted between him, as such receiver, and the trustees
in the several trusts created by the company to test the validity of
these trusts, which,, hv some of the general a-edttors of the company,
were alleged to be void. In that litigation between the general re-
ceiver (Mr. Leavitt) and the said trustees, Mr. Palmer was appointed
aptcial receiver to hold and protect the property conveyed in trust
OQtit it should be decided whether that property belonged to the
trustees, to whom it had been conveyed for the benefit of particular
creditors, or to Ur. Leavitt, for the general benefit of alt the creditors.
Out court of last resort (court of appeals) has lately decided that two
of these trusts are valid, and that the apecial creditors for whose
security these trusts were created are entitled to the trust fund, and
under that decision Mr. Palmer recently paid to these special creditors

n,g>-ndtyC00glc

264 CONDITION OF THE BAKES.

more tban 0D6 million dollars oa aocoaot of their claitna. Aod Mr.
Palmer has still in his bands a large amoant of property whioh,
when converted into money, will be paid to these same creditors. As
to one other tmat, the ooart baa not yet made a decision.

"With the general creditors, who are not aeoared by any of the
trasta, Mr. Palmer has nothing to do. Ur. Learitt administers to
the general asaeta of the company not assigned to trastees, and all
general creditors mast present their aoconnts to him. It is, however,
nnderstood that he will hare little or no property to pay such general
creditors, as nearly all the valuable property of the company was
assigned to trnetees."

For further information Mr. Bonney referred to John Cleaveland,
esq., "Mr. Leavitt's legal adviser in matters of the trasteeahip."
To him accordingly the financial receiver of the Bank of Arkansas
addressed two lettera, to the last of which he received the following
reply:

"A claim for $69,608 92 was exhibited against the North American
Trust and Banking Company by Wm. Paradise, assignee of the State
Bank of Arkansas, This claim was referred to referees in April,
1848, and is now pending before referees, undetermined. Bat the
court of appeala having, in 1867 and in 1868, adjndged that the
million trost, first half million tmst, and second half million tmst
deeds, (embracing oS the valnable assets of their company,) are valid
deeds, nothing is left for the general creditors not preferred by these
deeds."

From this it appears that, as the Bank of the State of Arkansas is
a general creditor, there is no hope of its ever recovering any part of
the sum due to it by the North American Trnst and Banking Company.

In a condensed form, the present condition of the Bank of the State
of Arkansas may be stated to be as follows:

Dk.

For 26 per cent, bonds outstanding $25,000 00

For interest on the same to October 1, 1868 22,037 60

For 691 six per cent, bonds •ontstanding 691,000 00

For interest on the same to October 1, 1868 609,006 00

For circalating notes yet unredeemed, say 6,930 00

1,254,072 60

Ce.
By notes and bills yet doe, with interest thereon to

October 1, 1858, as per table E $1,091,804 76

Due by North American Trust and Banking Company,

as per claim filed by Mr. Paradise 69,608 92

Banking-honse at Post of Arkansas, at cost 16,761 29

Specie in the hands of the financial receiver 2,003 S8

Notes of other banks and corporation tickets 2,814 62

1,171,392 86

n,g:,.ndtyC00glc

CONDITION OF' THE BAKES. 255

To vhicli Bhonld be added some lands, the valiie of which cannot
DOW be awertMued.

From this it woald appear that (leaving the lands oat of view) the
nominal assetB of the hank &11 short of its liabilities in the snm of
only $82,680 34.

Bat to arrive at a knowledge of the trae condition of affairs we have
to dedact the following from the nominal assets as being anavailsble:

DoohtM notes $177,756 65

Insolvent do 317,617 43

Lost do 625,544 00

■ $1,020,918 08

The sum dae by the North American Trast and Rank-
ing Company 69,608 92

The Danking-honse at the Post of Arkansat 16,761 29

Uncarrent Imnk notes and corporation tickets on hand 2,814 62

1.099,102 91

This leaves for good and available assets only the following:

The notes classed as solvent $70,286 67

The specie in the hands of the flaancial receiver 2,003 28

Total 72,289 96

Dedact this from the total liabilities of the bank, and

there will remain 1,181,782 56

From this should he deducted the balance of the notes
issued for circulation, as so many of them as have not
been lost or destroyed will be redeemed by receiving
them for taxes 6,930 00

1,174,852 55
There should also be deducted the amotmts of the five

Ssr cent, and distribution fnods that were, up to
anuary 1, 1857, retained by the United States to-
wards paying the interest ea 90 six per cent, bonds
held in trust for the Cherokee Indians, and 38 six
per cent, bonds lield in trust fbr the Smithsonian
Inatitnte 7,616 68

1,167,236 87

Whatever amount has since accrued os these funds to the credit of
the State of Arkansas should alio be dedooted.

An additional amount of these funds, amonnting, on the 1st of Jan-
nary, 1868, to $71,864 08, has been retained by the United States,
and applied to the payment of the interest on 600 Real Estate Bank
bonds held in trust for the Smithsonian Institute. This sum th«
Beol Estate Bank owes to the State, and it owes, also, whatever addi-
tional amount may have been thus applied since the let of January,
1857. ,- ,

n,g:,.-,.dtyL.OOglC

266 coNDinoK tfp the basks.

ir the amount due by the Real Estate Bank be applied to the liqai-
datioQ of tbe State Bank bond debt, it will leave unredeemed of the
principal and interest of tkat debt something less than one million
one hundred thousand dollars.

As the six per cent, bonds do not fall due for nine years, dot the
five per cents, in less than twenty-eight years, there may seem to be
no necessity for immediate action, but there is necessity for immediate
thought.

" Interest is an eating moth." The longer the redemption of the
debt is deferred the greater will be tbe amount ultimately to be paid.
The interest on the Htate Bank bonds now outstancling is $37,710 a
year.

If the stockholders of the Real Estate Bank pay what they owe, and
if the present rate of taxation be undiminished, it will bo easy to pro-
vide for the residue of the State debt. If suitable means be promptly
taken, it will be less in proportion to wealth and population than the
debt of three-fourths of the States in the Union.

It is well that we can take so pleasing a view of the subject. If
we do not pay what we owe, or make suitable provision to pay what
we owe, we cannot borrow. If we cannot borrow, we cannot complete
our railroads ; and if we do not complete our railroads, the resouroes
of our noble State will remain undeveloped.

Every man in the State has an interest in the proper discharge of
the debts of the State, for thereby the value of every man's property
and labor will be enhanced.

It is true that the construction of railroads has been intrusted to
companies, but the credit of the State abroad afifeota the credit of those
companies; and not only their credit, but to some extent the credit of
every man in the State.

At tbe session of 1852-'63 it -was suggested that the remaining
assets of the bank should be transferred to the State treasurer, with
disbretionary power to wind up the iDStitution. But a committee to
whom the subject was referred reported that such an act would be a
merger of the bank into the State, "thereby destroying its corporate
existence, and consequently result in loss to the bank, and thereby to
the State, of whatever good debts may still remain unpaid. Or, if
snch would not be the result, it would, at least, furnish new grounds
of defence to the debtors, and thereby cause great delay in the col-
lection of debts."

Even if such should not be the result, it will take the whole time
of one man for two years to wind up the bank, and if that man does
his duty his time will be fully employed.

Under this impression we would respectfully suggest tbe continu-
ance of the present law, with such modifications as the case may
require.

If authority should be given to the financial receiver to travel, with
suitable provision for his travelling expenses, it is probable that many
debts, or parts of debts, might be collected, which would otherwise be
entirely 1^. Waiting in person on debtors sometimes proves effective
when all other means have failed. Not a few of the debtors to the
Btate Bank seem not to be aware that fractional parts of State bonds

tioiwlc

CONDITION OF THE BANES. 257

can 1m bought at Little Bock at snch rates tliat fitly centA in specie
will discharge a dollar of bank debt. Many othere, if waited on per-
sonally, woiUd probably make compromises, and tboagb not able to
pay all they owe, would gladly pay a part iu order to receive a fiill
aiscbarge.

It would seem proper that the financial receiver should have power,
in special cases, to employ special attorneys, ander the direction of the
executive, or under such other checks and restrictions as it may be
proper to impose. One lawyer canuot possibly attend to all the cases
of nie State Bank, scattered as they are all over the State,

The investigation in which we have been engaged has occupied
much more time than was originally expected. It has been a labo-
rious one, as may well be supposed from the number and intricacy of
the accounts. The various documents we have prepared, iocludiug
both those accompanying this report and those deposited with the
financial receiver, may be said to form a sew, though not a complete,
set of books.

In a pecnniary sense the investigation has not been entirely in vain.
In an estimate which Mr, Fagan, late financial receiver, submitted on
the 1st of October, 1856, he set down $36,01)0 as all that could be
collected after that date. But through his efforts, those of Mr.
Wilson, the present financial receiver, those of Mr, McConaughey, the
land attorney, and our own, nearly |38,000 have already been col-
lected. And we have every reason to believe that if the measures
already taken be suitably followed up at least $70^000, perhaps
$100,000, will be added to this amount.

The chief advantage, however, resulting from this inquiry is the
light it throws on a subject which must, in different forms, 'occupy
more or less of the attention of the people and of the legislature tor
y^rs to come. We have traced the history of the bankyear by year.
We have given it in the words of its own managers. We have given
the views each successive governor and each successive general
assembly entertained of the suoiect. Without similar research among
public documents accessible to but few, and bank documents accessible
to hardly any, these bets could not be brought together.

We might devote another year to the investigation, nay two, and
every day discover something. But we knov of no practical benefit
that would thereby accrue. We do not believe that such an investi-
gation would result in the discovery of more debts due to the bank,
and which might yet be collected. On other points enough has been
said; enough to show how this portion of the State debt was iDcorred-
enough to show why so large a portion of it remains unpaid, and
enough to show the immense evils this system of false money and &c-
titions credit has brought on the people.

With these remarks, we sabscnbe ourselves, very respectfully, your
obedient servants,

WM. M. GOUGE,
A. H. BUTHEEFORD,
Stizte AcooutUanta under the act of Janvary l5, 1867.

LirrLR BocE, Abeabbab, October 10, 1868.

H. Ex. Doo. 112 17 n,g:,.,dtyC00glc

CONDITION OF THE BANES.
TABLE a.—Smaniary qf cnUaikiu, oAaiti ^ land*.

!.,».»...

FiyetMiUle.

B««rai..

Ar*™.!^.

Tool.

464,9og4S

1M,31)7 VO
W,MB1H

•i:7,S

B7,aW 13

•m 4M Ts

33 196 117
48DWS3

38,esflm

40,M0 48

t|^,118 80

98t)«9»
I7S,9MM

OcWber 1, 1844, 10 OeWber I, IB«.
October 1,I84», to October 1,1648.
Ociober 1, IMS, 10 Ociober 1, IBM.

October i; lawl \a o?i"be[ 1; lesi'

Oclober 1, ISi4, in October 1, IMS.

8M,Ba9 io

S«,S77 4B
M,341 B5

4^J8B8

snfits 31

B«H,aMM

TS,tH8 4J

843,788 aa

1,I»7^3 14

ip lo Octnber I, IHS9, are iccnrdlnf to Ibe Ratementi nnilereit br H
1 Biieiville lo OeiDber 1, mi, and at'the Foal or Atkui hi io CKUK

TABLE H —Oblltditmi m landi.

Little Kock.

F .jetBvillB.

Buoivilie.

Ar..,»«Po.t-

Toul.

June, 1U3, lo October 1,1844

October 1, 1S44, 10 Oeiober 1, 184B.
Uelober 1,1846, lo Octnber 1, 1848.

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SSSS

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' ■"ia*,3a6'oo'

1,«5 0»

93,ii:a Si

7,aM(»0

e;9isw

Oclober 1, IBM, to October l,18U

■■"a,3u6'64'

104,980 a&

4S,8SST8

Sl,»47 00

13,895 so

isa,9ssM

«. M. cniiuE,

U. RUTHBSFOHD,

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TABLE I.— OtftdiDfu in motuy and lartdt.

Little R;ck.

FiyetleTllle

BilenUte.

AiKniuPon.

Total.

M;i»?e7

iw;»wi3

S8,73117

ffl,^OT

38|8S8 89
40^48

11
11

Oember , 1844, to October ,IH«.
Oclober , 1846, lo Oclober ,1848.
l>eiober , 1848, to Oclober ,lHaO.
October ;iBSo; to October ',1WS.
October , IBM, to Oclober 1, 1M4,
October , IBS4, lo October 1, In*.
OcUMt ,18S6,10Oet0b«H,lBM.

f09,334B8

18,oa8 18

13,605 M
4,838 80

880,004 37

11M,M7B0

07,703 4$

aS7,M0 7S

1,380,08 47

WM. M. OOtIBB,

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OONDITIOH OP THE BAHIK.

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The Bank of Tenoeasee hu branches at Athens, ClarksTille, Oolnm-
bia, RogersviUe, Shelbyville, Somerville, Sparta, Trenton — 8.

The Planters' Bank has branches at Athens, Clarksville, Franklin,
Memphis, Fnlaski — 5.

The Unioo Bank has branofaefi at Golnmbia, Chattanooga, Jackson,
Knoxrille, Memphis — 6.

The Bank of Memphis makes no return under the head of "capital,' '
Its whole means of operating appear to be supplied hy the Bank of
Chattanooga, to which institution it states that it is indebted in the
earn of $6^3,032. The Bank of Chattanooga returns the amount due
to it hj the Bank of Memphis at |548,380. The difference is, no
doubt, owing to some of the accounts between the two banks not being
finally adjusted.

The Bank of Nashville and the Farmers' Bank at Knozville are
closing their affairs.

The Bank of Commerce at Nashville and the Soathem Bank at
Memphis are so nearly wound up that their CAsbiers thought it unne-
cessary to make regular returns of their condition. " The circulation
of the Southern Bank is now only about $17,000 and is paid promptly
in coin on presentation."

In some of the prices current the name is returned of the Central
Bank at NashTille, with branches at Dandridge and Paris. A letter
addressed to the cashier was returned by the postmaster at Kashrille
with the pithy reply : " The Central Bank is broke, and none of the
officers are in these parts."

The Bank of Dandridge is in liquidation, and will, it is believed,
*'pay oat at par."

Sundry banks in Tennessee made no replies to letters soliciting a
statement of their condition. In relation to these, the following infor-
mation is supplied by J. E. B. Bay, esq., the secretary of state of
Tennessee :

"The Bank of Jefferson, Biver Bank, Southern Bank, Bank of
Claiborne, Bank of Paris, and Bank of Tazewell, are all ' par banks,'
and are in liquidation, but will, it is believed, pay out at par.

"The Bank of America is suspended. Notes worth fifty or sixty
cents on the dollar.

" Citizens' Bank suspended. The notes are worth about forty cents
on the dollar.

"Exchange Bonk &iled ; no sale for notes.

" AgricultDral Bank entirely iailed."

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27^ CONDinON OF THE BASSO.

W2.

Omtob op Aoditob of Statk, Imdiaka,
Bank Department, Indianapolis, November 1, 1868.

Semiannual atatement showing the condition of tie free oanlca.of Indiana,
amouTU and description ofsecmities, and cifcvlatton outatamitng.

BAHK or aOBBSS.

Tmiie..ee6'» f."""

iDdiaoa 24'B 62.602 _

Circulation »4T,a3!i

BAKE OF QOSPOET.

Mi»Bonri6', 2,000

India.. 2i-. - - 89."* .. ,„

Circulation "'"^

BAHK or MT. TBBBOH.

Louigiana 6'b 2,000

Georgia 7'» ",600

North Carolina 6's 2,000

Bi»«>uri6'B le.OO"

Circulation »*.»28

BAHK or PAOU.

Louisiana 6's '^'JS?

MiBSonriO'B 30.0«0 ,^ ,„

Circulation _-. «9,456

BAHK OF ROOKVILLB, "WABAHH."

LouiiianaO's 64,000

Missouri 6's - - H.OOO

Circulation 61,910

BAHK OF SALBM, " HSW ALBAHT."

HiBsouiiO's »I,000

Louisiana O's ------ - 600

Indiana 6*s 1,000

Indiana 2J's 16,000

Circulation _---.--- 63,620

BAKE OF SALIH, "SAUOI."

Missonri 6's 86,000

■ CirculBtlon -,, - ,68,837

n,a:..-,.dtyL-.00'^IC

CONDITION OF THE BANES. 273

BLOOmHGTOIT BASK.

MiEsonri S's - - - - - ■ - |100,000

Circalation _..-..-_ (76,450

KX0HAH6K BANK.

Indiana 6'b -.--,.. 6,000

ladiana 2^*8 - SSj^SS

CirculatioD -■-..--_ 49,080

INDUNA BANK, " KADISOlf."

CaliforDia 7'8 - - - ' - - - - 25,000

Indiana Zl's 48,077

Indiana fig------- 60,500

PennsjlTania 5's - - - - - - 1,000

Circulation -.._.... 86,260

BAKE OF SLKHAKT.

MiBflOuri 6'8 ------ - 22,000

Indiana 5'8' - - - - - - - 37,000

Circalation - - - 46,791

INDIANA FARMBIta' BANK, "FILANKLIN."

Mi88oari 6'b ------ - 8,000

Indiana 6'b 53,000

Circulation ----.._. ^SjSlO'

KKKTDCKT 8T0CK BANK, " DOLUHBDS."

Migflonri 6*8 - . - - . . . 22,000
Lonieiana 6*8 ------ . 1,000

Indiana 5'8 49,600

Indiana 2i'8 6,000

Indiana 6 8 15,000

Circulation -- 70,062

UaBANOB BANK, " UUA."

Nortli Carolina 6'b 6,000

TennoBsee 6'e ------ - 5,000

Kentocky 6'b 18,000

Louisiana 6'b ------ - 21,000

Indiana 5'b . 14,000

Indiana 21'b ---.... 22,060

Circulation 69,776-

H. Ex. Doc. 112 18

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274 coNDmoN of the bakks.

PAREB OOCNTT BANK, " K0CE7ILLB.

Indiana 5'a $100,000

Indians 2i'a - - 1,000

Circulation ._.-.... $80,342

PKAIRIB CITT BANS, "TERBB EADT8,"

LoaliiaDa 6'a 24,000

MiflBoori fi'a 26,000

Indiana 5'8 16,000

Indiana 24'a 10,000

CircttUtion 66,713

BALBM BANE, "OOBHBH."

Hisaonri 6'a 6,000

Louisiana 6'a 41,000

Virginia 6'a 5,000

Indiana 6'a 10,500

Indiana 2|'s 8,000

Circulation --- 63,989

aWmSBS BAHK OF mDIAHA, " rEBKB HADTl."

Michigan 6'b ...---- 3,000

Misaonri 6'a 37,000

Virginia 6'b 6,000

Lonuiana 6'b 2,000

TenneaBeefi'fl 3,000

Indiana 6'b 69,000

Indiana 21'b 4,000

Circulation 94,990

BanJu which are votuntarily ufituling up.

CAIIBBIDOB CITT BAKK.

Indiana 2i's 61,834

Coin 10,339

CircnlaUon 36,000

OEHTBAL bank, " nmiAHATOUS."

Indiana 6'b 6,000

Oircnlation 2,903

OBSBCIBT OTTT bane, "NTABSVILI.B."

Ketncky 6'a 2,600

Loniriaoa 6's -8,000

Indiana 6'a 12,000

(Hrcnlatlon ^-, 18,137

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COHDITIOM OF THE BANKS. 275

BAHK OF UnOASA, " MIOHIOAH COf."

Indiana 6's ------ - $15,000

OtrcnlatioD $11,426

BBOOKVILLB BANK.

Indiana S's ------ - 12,000

Virginia f's ------ - 4,000

Circalation --.-..-- 12,004

BAITE OP STRAOtrsB, " OOeHSN."

TenneflBee 6'a ------ - 1,000

Loaisiana 6'b ------ - 13,000

Oiroolatioa 11,648

BAHK OF HOIITKIILLO.

Indiana S's ------ - 600

Circolfttion .---..__ 300

CANAL BAHE.

Indiana 6's ------ - 11,000

CiroolatioD -.-_.... 7,628

FARMIR'B BASE, " WWCFIILD."

Coin 33,234

CSrcnUtion --.._... 33,234

HOOSIBR BANE, *' LOOAHBPOBT."

Loaisiana 6'b ------ - 4,000

Circalation -..-_._. 3,665

HUNHNQTOir OODNTT BANE.

Indiana 5'8 ------ - 2,006

Coin 180

CSrcnlation - - - - -". - - 1,736

HBBCHANIS' ANDnOHAHKB' BAKE, "SWW UAAXT."

Goopgia 6'e 500

Tennessee fi'a 1,000

Circalation -------_ 1,037

FATITEB OOOltTT BANE.

Coin 1,701

Circulation 1,701

mraAH BB8XSTS BANE.

Coin 1,609

Circalation n,, ,? n^GnOO^RW

CONDITION OF THE BANKS.

INDIANA BIOCE BANE.

Coin *2,733

Circulation $2,733

JOHN W. DODD, Avdiior of BUUe.

W3.

Rt^port of (he Bank of (he State of Indiana to the Oeneral Assembly.
To the Bon. Preaident of ike Senate of the State of Indiana:

In compliance with the reqairementa of the charter, I herewith
submit a Btatement of the condition of the Sank of the State of In-
diana on the 20th of November, 1868.

By this statement it appears that the branches had —

In notes and bills under discoant $5,300,983 17

In coin 1,685,894 93

In currency 338,189 00

On deposit in eastern hanks 616,346 37

On deposit in western banks 316,385 55

And that their liabilities to the public wera as follows :

Notes in circulation 4,371,619 00

Dae to other banks 146,750 67

Due to depositora 986,463 79

Due to treasurer of State 6,373 93

While this exhibit shows that the cash means of the bank are large
in proportion to its liabilities to the public, it may be proper to remark
that its greatest strength consists in the character of its disconnts,
which are believed to be as safe and reliable as those of any other bank
in the country. In most of the branches they are chiefly based upon
the sarplne produce and mannfactnrea of the State, and experience
has proved that sach Inans not only advance the true interests of the
people, hot give to the banker the surest and most prompt retarua.

Since our first report to the legislature important changes have taken
place in the financial condition of the country.

Although a large amount of capital had been invested in onprofit-
able, not to say disastrous enterprises, and speculation had in some
quarters taken the place of productive industry, there was nothing in
toe circumstances of the country generally, at the meeting of our
State board, in July, 1857, calculated to excit« on the part of the moat
prudent and far- seeing any apprehensions of the crisis toat was so soon
to follow. The domestic exchanges were regular and easy ; the pros-
pect of crops was satisfactory ; the foreign demand lor our leading
staples was encouraging ; while the mines of this and other coantriea
were rapidly adding to the supply and the circulation of the predoas
metals. . CoooA^

COKDlTlOlf OF THE BANKS. 277

ADticipating, therefore, a prosperous seasoD, onr branoltes liberally
increased their discount line and their circalation, for the purpose of
occupying the field from which, b; the expiration of its charter, the
State Bank was withdrawing.

These favorable indications were, however, of short duration. The
unexpected failare, in August, of an institution of large capital, which
had possessed for many years, to an unlimited degree, the confidence
of the public, carrying down in its fall banking-houses of established
credit, created a panic throughout the Union, under the influence of
which confidence ceased and enterprise was paralyzed, A sQspension
of specie payments hy all the banks of the country, except those of
Ohio, Indiana, Kentucky and Louisiana, soon followed. A distrust
of everything but gold and stiver everywhere prevailed, and the notes
of specie-paying banks were rapidly returned for redemption.
' That our branches under such circumstances, with a liberal discount
line and a full circulation, when coin commanded from eight to tea
per cent, premium over well secured hank notes, were able to maintun
specie payments, proved satisfactorily the excellence of the system
and the solvent condition of the business of the Stat«. I venture to
say that no hanking institution in the United States was ever sub-
jected to so severe a trial as this bank was exposed to from September,
1857, to Jannary, 1868.

While the hanks of one neighboring State were to a great extent
protected by the inaccessibility of the points from which the most of
their notes were issued, and a spirit of forbearance was generally
exercised toward the banks of another neighboring State on account
of their embarrassment resuUiog from the failure of their eastern
depositories, the branches of this bank, exposed at all points, met and
withstood the full force of the storm. It is, perhaps, not an exagge-
ration to say that during the months of September, October and No-
vember the Bank of the State of Indiana furnished more coin and
exchange in the redemption of its notes and the payment of its de-
posits than was ever niraished, in an equal period of time, by any
other bank in proportion to its capital and circulation.

That it was able to do so was not only honorable to the bank, bat
creditable to the State, with whose financial interests it has become so
largely identified.

I am gratified to be able to state that the branohes generally are
in excellent condition. Nearly all of them are undw the management
of men who have large interests to protest, who have much experience
in banking, and an accurate knowledge of the wants and resources of
the State. Our notes are in good credit throughout the west, and it
will be the constant aim of tnose who manage and those who super-
vise the afiairs of the branches to make good the pledge given to the
people of Indiana when we commenced business— to furnish them
with a carreney of undoubted solvency, always convertible into ooia
at the pleasure of the holder.

By order of the Board of Directors.

H. McOULLOCH, PreaidaU.

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CONDITIOH OF TDB BANKS.

•I «^ tkc trndOiim tf On bmJu ^ Qa 8Mt t^ Atnxiii hi OcMo-, ISSB, <
jaarUrbf rrporli.

s!S«l(ti.

0- BuikoreioOBi-
BloomlBflon.

incki depoatwd u MentlV R»

DoaDLofdelm owIdi to
Mlwrlliulouu>DJ«

tSI,TSg IS

""aiiBis'oo' !

""9i,"iiM"ii' .
3i,eii OS

W,SMf6 .

4,0k «
9M,iaB»

4,018 TS
B,388 I«

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282

CONDITION

OP THE

BANKS.

lUinoU — CoDtloiKd.

BukorOannl,
Cuml.

BlDkofChH

icr, ObeMer.

Bunk of the
Coa.n>og»<1i,

...w«.,

Buk-TllH
rMtoalUBlM,

Bt«b dtporittd M -mrUr tof

•n.ouoo

'uioo

S,««SSS

s,oion

«,SWN

«»I,000 90

«ge,«ioDO

fn,NtN

*^'£.fKrJaz:i:s.

U,3S00

OMOO

3«0M

1,000 «

DoporilHl wilt .^ b^ ud

fSl".3::sr:::::::;:;-.:::::::

loul

103,800 00

in,nifl3

in,»oo

ios,oteoo

•S,0C»W

w,moo

so,oo(oo

M,BnoD

so, on 00

so,taow

Anmnl of ilsbu awinf br ibe

4B,tnooo

Amauii du* 10 uUi«r buka litd

u,«not

10,000 00

ie,ta«M

TaBI

103,«H00

ioT,wasi

IN,«3100

i«,MeN

•OOOON

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COHDrnOH OF THE BANES.
iMtf y lit ocmdlitiiM «r Ut tab 61 /Ummi— CcmliDiiBd.

B4Bkof Gate-
M,0>la>a.

sr.^S:?:

■r.'»

Bukorilipar-

BukaTHoitb-
era Illlnok,

stHifci divodUHl ■■ MHiltr Ibr

«H,BUU

~i;ooooo

9,U0«)

•1S3,SIB OP

nss

Ham or oUiit tank! Ml hud

■"fa^ihi go

a«,Bto«

1S,SMIT

*BOi"io'

■pscia on bud

Drpodud <nUi ottwr buki and
buk.r>.... ^

■■■■«;i»«

BMW

ssft.fKS'::ir """■•■■

7«a8

«l,MOSI

»«,««>«)

9I1,«<»

a8,SSI34

1»,«G<I>B

dpIUl MiKk piid la iiul Inrwud

BT,ODe<KI

.,»»

tDjOODOO

KI.D00 8B

Aawanl dg> 10 dipodtm

ADMnt do* K> otlx. bub IDd

ta,ia)(«

sis

»,ll(M(IO

lS4,48auo

8«£«ofb«ul.udiBt.M«,«

i,3M«

.„„

TOMI

»l,Mi«

H^aOSOD

llt,4ttM

as, SUM

ut,08eas

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CONDITION OF THE BANKS.
X 1—autimtnt <^ lU timdUieit 1/ tie tonb m /Snaii— ContiiKwd.

■"tS,'-"

"""s""'

eukofQiln-

B'koTKiM^

S£.

■Sioiski depodud u •HWJIT tn

17,39 (M

""•SIS

ST,SW3i

tST.TOOOO

•»9,oa«oo

•MS,eis eo

13, MOO

Amaiintorileliuowliif lotlMbuk

HO, 70s 00

Ufporiud wHtaothirbukVud*

8,euai

10,«>4 31
«, 131(11

i,woo«

7,104 «

STaw

Ji'"I!'Ii"ft!I"'.Ll"").M

i;0M'T7'

Tn»l

iM,«n«

»,«><»

1I0,7I( 00

MO,M»00

SM,U0IM

O^iiul aUKk paid In ud liiTsiud

B,WT»B

(0,000 DO

(F7,n0 0t

9Si.M0 0O

30,000 H

ABKnnt ? debu owin| bj iht
bukDUiMilWB fl>rd*|n«luud

103,013 N

Abmri or Doui tnctnotaUoB . . .
ArainBI diu to olhci buki (Dd

83,010 00

S*B,WWOO

171,300 M

Inbuf* ud iNWtMt (ecDkiit. ...

'Xir"""""'."."r-

i,«iii

IM,a3B>

934,0»«1

190,110 M

MO,MftOO

3M,3B0«0

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CODDITION OF THE

BANKS

M AttaoJt— Continiud.

Buk of Bnum

«ii Illlnoi.,

BoJum.

BelvMere

B«k,B.iTl-

^■^r*'

•^r^'

CIUhim'
B.nK, M«.m

C'UBUt.

eioek* depailcd ■• «cm1ij fcr

•S37,M»<»

•«,s3>a*

alsdioo

9M,moa

t7B,iaM

snoo

Sl,ttA0O

^?^'r.sr:;^!;!'i:.^':iV

SOBM

•4,800 M

31,471 IS

10, an OB

Ueporiud wiib <;tb«'r UnkM at

"■■■'iiiio'ii'

(I3,9»l»

i3,mn

Total

303,000 00

*i,i«m

iao,s« 04

I40,S»0S

194, «1H

Oplul Rock |Hld Id (nil innned

AnrHini of d(bti'owin("bV*Uia'
buk DibtrdUD fi» depMlU (sd

W,O0OOO

■1,000 00

900 79

30,000 00

M,0OO0O

70,149 S4

S:SSti

SiSSS

Aiiin«Bt or Bon InclieBluioii. . . .

■••i«e,Tii'w

u,t8e*o

S4,TnH»

i,ewo>

X,90tOO

T««l

n,ooooo

«,M»

180,518 H

I40,9aiDf

194,19] M

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COHDITION
X 1.— jhlawnf ^ A* tatJUia

OF THE BANES.
tqftiaianJam /Oiww— Contltinsd.

etnnn Bui
pZtAeld.

Oitrk'aBi- Editr Omntr K. I. TlnUiin) Imrmcnuil
ebui(aB*nk, Buk, Puli. kCo.'iBuk. Tndcn'Buk
Bprlntaalil. "' ' — ."— .

HcLMUMboni. iJliMlatoB.

AmiHDI of debM owiu to Um

Loun iml dbeoanln

BftClt en li«ii4 '■■■

Dtpoiiiad wltk oUia buUi *Dd

e,TM7l
TB,4TCa

1,UM N
3, BMW

tIBB,QMM

s,aw«

8.3X7 «

4a,aMn
IB, wan

fi,«Bn

KB r« d*pb(iu u
da* 10 df Ml

AiDDunI paid In t^ itoek
PnSt ud lOM Hconnl .

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COXDITION OP THE BANKS.

X I. — AxowNl <g du ecmdman i^Ot bmb m lUmoU—Caatlaatd.

I, Oniid enrrtUa tupilu

~nlri> Buk, Buk, Onr- BnE, ntu- dcmil Bi

uunStt

SUM

B,g«8«

Awnii du ID pthtr baiiki uj

Tlu of boadi ud

oailnidil'iB

3K|«B 00 U4,18S 13

4U,«)I OS 1«T,0W ««

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288

COSDlTlOir OF THE BAVKB.
X 1.— iStUnvRl^lhaindilunqr'b&inbM //Iiruu— CanUaned.

InflM.

'^^SSi':-

HcKhuta
•ad Dninn'

B.Bk,J.IIM.

S-

eticdKUoa

t»3,!MIXI

«as,a»n

taD,oi»oo

tiia,07i 10

«in,Maoo

A»Mb[of<l»U*awl>«lotb«l>iik

n,<»iIB

10,«««l

19,000 00

40, KB 03
i;«7 80

11,87* 00
>03,9«>M

9t,M90

SE;^'ri£'«i.;v'tanu»d'

IS.UOMI

lB8,»4a

ISM

5,000 00

J-'^.fl.

1,070 M

■DM

14T,«S U

aes,o«s39

U»,434 9a

m,3»i*

101, HI N

Opltil uoek paid Id Hd inniiMI

53,B7SM

U,OO0(»

»,owoo

iia,07« 10

•3,M3 00

Auoul of dcbu awfng 19 ilia

A»oi.iiJi>Ml5^'ilclSIl.«iJ;:'.
ilnonnl d» to oiber buki ud

SSSi!

•■■■lii,'»io

Bvi«« or Iraiidt ud irniran on

«4,B3t«

■78,770*

■«&«

Toul

lf7,S9SU

JtS,0«38

l««,434a

SB, 330 U

in,»oi

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CONDITION OF THE BANKS.
mml if lU eimdiliam </ Ot bmJa « /Uincu— ContinQed.

ffiS.-

EoOAUty.

Bink, Wub-

BtUnwdBuk

%'.i»

"sSta'3s;!?!r'..r.T^*"

•«>l,UO(»

•ei,«woa

r<i,ooDoo

•3>,ia>»

d,B«Da
n,ti» to

eifti'ii

ABSut df debu owliu to Iha buk

«,0««M

8,114 St

■,000 00
Sft,»00

IMJ-JUJ4 -.U. «.«.».« «i

TlXll

i9i,a»«i

US,I«N

t«,3l3 30

it7,aS4(ie

73,706 M

'^^iii'S'^'^Si"'"""'^

50,00000

ia,ma)

ai.tiua)

so, onto
9,«ass

Ba,3HW

buk Mtas itau tm depoilu ud

13,(H30
S1,SM0I)

AnmiM dm 10 olber buki ud

Sd^OHM

7d,3»H)

•■■■M;iii-oi

i^bocd.™..-™.™

is,8as«

e,ui<n

Tnal

1XI,SXIII0

U(,8MM

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uT,e3d oe

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290

CONDITION OF THE BAHK8.

X l.—SaUm&i tf Uit condituM rf At bmla in AUnow— Contimwd.

-HS*

Bank Of Illhioli,

"^™ui?°"

TOUI.

91St,M0 M

«H,IMOD

•^I^SiJ

4.500 n

''■'IS

AmonDt oTdebu ovlni w tlia buk olbu

^IHiiltsil •Hib'aibMbiobi'uid 'bukcn!

],SMM

,il;SS

«s

i;Bs:sZi

uImG

Iot.1

Mi.snw

i,Me,aeo«

m.iBsoo

11 oei WM

' '

uiMunu.

Oulul Mock paid In and lonnsd Kcord-

■o^Mliw

so, moo

T17,3UN

M,aoooo

4.000, W «7

ui.oaow

T3»,TUW

S3,I9S00

iH«a4i
n3,no4i

18,MU

«.i«~

Jomi

wi,oeQin

1,G(«,W)I0

IIT.ISSOI

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COHDITIQir OF THE BANKS. 291

X 2.

BecapUulation of «ecun/te« deposited, cash value, circulatioti outatand-
iTig, and txuue margin on d^Mtif.

$3,369,000 00 MiBsonri 68, at QOc $3,032,100 00

796,500 00 Virginia 6b, at 97c 772,605 00

749,600 00 Tennessee 6b, at 94c 704,S30 00

372,600 00 Loaisiaiia 6s, at 96c 357,600 00

282,000 00 North Carolina 6b, at 98c 276,360 00

100,000 00 BoQth Carolina, at 100c 100,000 00

81,600 00 Georgia 68, at 102c 83,130 00

16,000 00 Kentucky 6b, at 104c 16,640 00

192,730 96 Ohio 6b, at 106c 204,294 76

91,000 00 Iowa 7s, at 110c 100,100 00

206,000 00 Michigan 6s, at 106c 218,360 00

60,000 00 Michigan 1b, at llOo 66,000 00

56,000 00 Minnesota 8b, at 108o 60,480 00

289,000 00 Illinois and Michigan canal 68, at 102c.. 294,780 00
2,080 30 niinoia and Michigan interest certi-
ficates, at 90c 1,872 30

162,328 71 Illinois internal improvement stock, at

105c 191,424 U

32,968 79 Illinois liqaidation, at 105a 34,606 72

187,000 00 Illinois interest bonds, at 90c 168,300 00

86,663 03 Specie (protested banks) 68,663 03

7,124,641 79 6,740,746 96*

Amount of secured circulation ontstanding... 6,205,122 00

Excess of aecarities 635,623 96

In the above recapitulation appear to be included the securities of
sundry suspended banks, the accounts of which are not embraced in
the " Statement of the condition of the Banks of the State of Illinois,
in October, 1868."

These suspended banks are —

Bank of Belleville, Belleville.

Bank of Hntsonville, Hutsonville.

Hamilton County Bank, McLeansboro'.

Bnshville Bank, Bushville.

Du Page Connty Bank, Napierville.

Merchants and Mechanics' Bank, Chicago.

Commercial Bank, Chicago.

Farmers' Bank, Chicago.

Phoenix Bank, Chicago.

Ci^ Bank, Chicago.

Union Bank, Chicago.

People's Bank, Crmi. n, ...dtvGooglc

292 coKDinoN op the baxks.

Stock Secarity Bank, Danrille.

Mechanics and Farmers' Bank, Springfield.

Bank of Lncas & SimondH, Springfield.

Bank of Bochford, Bochford.

Qaincy Bank, Quincy.

The newspapers state that " a bill for estuhliBhing a new bankiDg
system on a specie basis, has passed to its third reading in the Illinois
assembly. It provides for three banks, one in Cairo, one in Spriiig-
field, and one jn Chicago, with a capital of |3,000,000 each, and with
power to issue notes to three times tne amoont of apecie paid up."

Extract from ^ mestage <^ hia eaxt£ency Wm. S. Bisad, Governor of
iOtnou, January 3, 1859.

Our present system of banking is, in the main, satisfactory. So far
as the secarity of the bill-holders is concerned it seems to be amply
snfiScient. Of the six banks which have closed within the last two
years, every dollar of their paper, with the exception of that issued
by a single bank, was redeemed at par by the auditor, oot of the
Mcnrities in hia bands, and the loss on the paper of that one bank was
« a mere trifle. The auditor is entitled to no small credit for bis judi-
cious and mccessfnl management of the affairs of these suspended
banks, by means of which, notwithstanding their reputed and supposed
insolvency, every dollar of their paper was fully redeemed,

There is at the present time on deposit with the auditor |6,740,T45 95
of stock securities, calculated according to their strict value in market ;
while the entire amouut of circulation of all the banks is $6,205,122 ;
or $636,623 96 less than the amount aotnally pledged as secarity.

There are, however, one or two defects connected with our system
which it is highly desirable should be remedied. One of these evils ia
the lar^e number of mutilated small notes in circulation. Our cur-
rency, in some places, seems to be composed very largely of small bills
so ragged, torn, and mutilated, that even their denomination or the
bank which issued them can hardly be made out. This is a serious
evil, and tends very much, and justly, to keep paper money in dis-
repute among the people — besides which, the facilities it a^rds to
counterfeiters is a matter well deserving our consideration. It baa
been suggested that if banks were required to redeem their mutilated
notes by others at some convenient point the difficulty might be
obviated. Whether this be the true remedy, or whether, in fitct,
there be any remedy for this grievance in your power to apply, are
questions left to your own wisdom.

Another circumstance connected with our banking system, muitinf;
your notice, is, that our hank notes are only current at p«r within our

Xiocwic

CONDITION OF THE BANKS. 293 '

owD State, or to 8 very limited extent beyond it. Hence he vho
would tTttTel bat for a short distanoe beyond the State ie compelled to
Bobmit to a sacrifice of one or more per cent, upon bills the redemption
of which is perfectly well secured. This, manifestly, should not be.
The onrrency of oar own State is at this very moment as good as that of
any other State in the Union — nay, it ia even safer, more secured than
most of that which commands a preminm over it. It may not be in
yoar power to correct this evil. I snggest it to you, however, as a
matter welt entitled to be oonsidered. As already intimated, I regard
onr banking system as amply fulfilling all oar reasonable expectations,
and any essential modifications of it I would not at this time advise.

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*294

CONDITION OF THE BANES.

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COHDTnON OF THE BANEB. <!95 *

T \.—Slat<mtnl ^ Al amdman 1^ lilt banJi* m A» SlaUi/ Wmamn, Jfowfay, JsMtary 3, 1859.

•8

LOUH ud dlKDunn, cuapt n

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104,000 00

Stock! It ibair pv nhwdtrmlMd

l»,OI)t(KI

Bioeta BOI dopoalul wltti SUM

rontMoiT <u"» oD™ >1iu> <bt

10,000 00

Bp«l«

■"iBiiiiii

«;»H8a

(439 63
3T4 30
V3B00

BUIa of MilTBDI buki on hud."'!

i3,on»

-i8;i»-oo'

i;»i~

tlB,(ISTIS

l,«Mtt

is,on«i

ii,as»

TOMInMmcM

33s,enoD

tT0,l»44

108,433 01

913,193 n

UAItUTUI.

900,000 DD

sss

^^SS

100,000 00
94,110 00

Sa;Tr:2F*-;r

Dna lo Mban not iDcludad undai

■■"ii.'iww

/9,BBOiO

ToUlUttafUtlti

m,KODa

m,0B3 44

106,433 00

BIS, 193 fr

I Bank pUta, niniltnn, ke.
( M,T>0 of U daporilaj wim <

• odea ft— —

mMwmh DOMudpunlMaffioeki,

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COHDinON OF THE BANKS,

Y l.—Slataittl^AetaidUieimfeubmJai* Wiieaum—CoaUnmd.

II* oTBlTeat buiki OB bud...

S30B7
SO, on 00

SSgMHOO

B,n3 05

OK .

aa,woN

^« .

4.189 07
S,9««l

t»,780t8

l,M81t

XfTUK

•■OiUibalO,

t ti|ii* Bi or u oBm anDML

(fLm 44 ortl ODdlTlMd praStt.
tf OOm ttanliBi*, ibu, Iw.
• 1MB 10srtt«dtoellaDi,u«aiD
/MMfknlOn.

,BaB SB dunnMi lKiw*M COM wd puralni aTNuciu.

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CONDmON OF THB BANKS

297

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V&,mM

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0,043 81

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lT,n3 9B
/1T,II8 SO

■^ ;!ioooo

.,.SS

1^087 30

iio.ffle«

(8813

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41,007 04

1, too DO

9M,T««

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978,085 80

1*8,810 00

n,ais«i

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100,000 00

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n,oaaoo
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Dh u Mlian not lDdiid«d nndir

8,M7M
11,381 80

10,831 <l

130,0* 04
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1,183 M

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183,810 00

W,n9 86

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CONDinOIf OF THE BAKES.

1
1

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1

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t»7,«00l»

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3-) 81
1 3UB8

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itn,»a<»

80,000 00

SUMkl MM depoMul wltk BUM

rwamlmorj iiM» «bar Uu> ft«

SK??;;™;;;::::.;;::::::-."-

'"11,367 «

ma>

t,«M7«

iiwiot

ia^wii

US,9H)M

»U* of Ml**Dl buln an baiid . . . .

C;L~s:r.':r.::;:;:::

"**!?«[

>,asrDo

7,ur OS

1,00101

78,073 83

iw.isoi)e

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108,84178

10S,I«N

M,3S9M

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48,783 00

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3;SS

K«iiriijP^:-

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3,788 «S-

■■■■»i,w«

18,074 16

3,484 00
10,48178

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T8,»7J«I

1W,]»«

144,080 n

108,8*5 70

100,141 Ot

meed bodnea Jtlj M, 1S9B.
bDlldlDi and Aunlton.

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CONDITtOH OP THE BAHKS.
Ml^lib«nfitMiy (hiaubm ffiicaium— Contimwd.

1
1

i
1

^H^^iS^KI; "**■* "

t4T,naos

41 M
36,000 Ml
6,000 10

3, Ml SI

«gB,ns«8

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SUtt
3T,a<»00

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30,000 00

*9,000 00

Btocki not diporiUd wUk Bum

■ a, 98416
3,ai4M

••■sss

■••SIS

10,3H01

cM,0>T01

ia,srooo

BioaoKi

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■■"Xsii-a,-

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BUli or BlTeat tank! on bud.. ..

S,T»0O

S,H9MI

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■•"io;iM'ii-

3,»>8D

fl,!»T43

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iii,mn

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78,110 03

7V,<»>M

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f 13,107 81

«,B61 »
ID,«»43

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iio,Tsau

7«,11S83

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i lis JM at U wllh kuk eaaptnllcr. .
s f ISJM ef II villi kuk conptnllar.
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/ iBOlaAlat tatmUan, mh, he.
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balwMn eon ul pu nlog ar.itoekt.
M kwwan CMt ud pu ralaa,ot iwck*-

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T l.—Sttmait

CONDrriON OF THE BAMKfl.
tf At amdaai <f At haOa in Fucoyn— ConUnned.

■UMki U ili*lr pu nla* AtpoilMd

G^ Ita

Caplnl

Due I» oi£en n« loeinded tin4H

1,113 C8 .

lll,TWIM

Sl,3(»9a
/S,SU3I

\ Dcpojud iflih bank eomrlr
i Fanmal propany.
d Ineludlni Hitsnf .

/ ladndb^ ntpioa (ad aifM

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COHBinON OF TUB BANES.

mttfOt MuitttiM y llu ionb m IFttoMute— ConUnoed.

301

Bneks at tttit pu nlu dcpaii«l

SKi;

l,Wt SB

sa,oaaoo

i,m«) .

3,«aoM

» 1,197 IT

34,000 00
1,S00 00

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3,130 SI
4,000 00

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ia,0S3 13

a 13,000 of 11 ipKla 1

0,11311
4,9«B3»

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COHDinON OP THE BASKS.
lent cf the eat^lion <tf A* bankt m Wuanuia— Continued.

■

1
1

uioncH.

Lown uid diKouu, ueefii U

1SS

91,000 00

t4a,«M0S

«I07,Cn 18

•■S!!

838 81
tt,100 00

BUKki 11 tbeli pu nlna dapodWd

wllh BUM. Uruunr.

Stock! not dtpotlted wllb BnM

»1T4,(»« <n

»,DU<n

■1,000 M

T.oapoo

948. sou en

l.MOW

8,118 03

-.liSi

»i,8aB3s

1,173 1(9
10,M100

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38,819 00

iS,O10 01

B,BM3S

8,404 31

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4M,04a«l

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1T4,8HS7

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874,818 88

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1«; 385 00

50,000 00
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13,157 58

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80, SSL OS
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184,707 «
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174,<M 87

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COHDinOK OF THE BANEt).
Htf y A« ewufttBM <f llu Umh n Fvmwte— CooUnDsd.

i
1
1

'1E^J?1SES;.!f!r..'?.

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389 87

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4,000 00

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3,SUS3

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84, 870 as

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10,387 00

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188,70*13
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711,180 W

118,364 83

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CONDITION OF THE BANKS.
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t
1-

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•18,W«

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10,18171
15,080 TS

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17,008 00

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7,0(1 oa

3, IK 00

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111,100 00

133,310 ee

88,008 80

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ii;083 00

I3,17!IOa

80,000 00
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1B,1M 7S

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COSDITIOS OF THE BANKS.

305

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1

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«4,«»W

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1,808 17

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3,000 00

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3,817 00

74,M8 00

3,740 00

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ijuen

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3,880 83

1,180 84

TdUlnMnMi.

UO,t«T>

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148,803 M

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83,078 00

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MmofihoMlmatsmi,

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18,01918
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13,788 la

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7,803 03
33,194 41

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109,487 43

133,083 38

148 803 64

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CONDITION OP THE BANKS.
^ lit etrndMon 1/ lU baiJa w FiKoniiK— Contiiiiied.

i
1

1
3

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diHcton ud bn)k«i ....

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gans

<»,•««

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«l»43

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■■■»;i;««

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74,5«»

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8,099 W

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1«,B99 18

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73,001100

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^5,03177

5,«7IS

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TdUIIUMUIlN

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71,«tt93

M,«eT7

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IaeludlD( buk plua, hA, ke.
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CONDITION OP THE BANKS.

T 1.— aahwnH ^ 111 MKMm 1/ lAa &mf> m ffiwwM ConttMMd.

■

;

1
1

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«9,fl3>78

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1,M3M

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91,000 00

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90,000 00

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11,810 eo

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308

CONDITION OP THE BANKS.

qf ftf oinifBMi y Ik (adb fa Voraiifii— OonUutMd.

4.
11

1
1

lEtiSf.S^.Si'"^"

3,T13 19

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OOHDinOK OF THE BANKS. 809

T l.—aalmmU <f tin tmtUm <f lU Umki i» WuMuii Conttnaed.

Blockj It ttwir par niaa depiHlIad

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COSDITION OF THE BAKKS.
y On CBndiUmi 1/ Ot tmifa n Wuemum—Caaaajiei.

i
1

1
1

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1

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1

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83,001 HI

IS, 479 95

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43,000 00

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3,906 34

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COVDinOX OF THE BUTKS.

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1

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COSDTnOS OF THE BAKK6.
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OOHDITIOH OF THE BANKS.
mUi/lkitpmmamiifatbaai^ IKtNMte— OontinMd.

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0,330 00

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3,3*7 SI

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CONDITION OF THE BASKS,
mIt/tU canMcn qf A» btmh in ITiMiiute— CimUDiied.

•s

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1

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8,317 37
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100,44133

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row 0,1818.

s;«'„".r.

rndbondimtS

enn.

IfqfAt ilau <^ tapUd, droMiai and itfKuUt, ^cdi ami eatk Btm, puiUc moiritim mi
prmit tatrititi, <^ At bank* ef Uu S'att qf Waamtin, en (Af nwrawa if Mandey, Jnmmn S,

Cipttal t7,»i,OO0 0O

ClmUUan 4,003,170 M

OmiHll*, 3,DI1.3HH

■p«el« 700,aw»

OHfalMDU 83,M3 3I

rqkHeiccDrlUM S,0N,44S M

Plinu •KDiUlH »,9ai,4S7H

Ornoi or Bauk OnlinuLum,

aadfam, mienHlii, Jmmarf IS, IHt

I c«nllr Out lb« IbrffolDi M««ihni ti an iMnct vT Ota Hmi-iDDiiil repocn mwl* w IMi bA« kj the

Kvenl Hiihi OM Dftde leporu {u rkr u It wu prirUcable to bruifft Uie luuu or the ntim KiidaT lAviJ

of buklDf," iiiprond April 10, laSB.

J, C. B()0IRS8,Bnt OMftnOr.

n,g:,.ndtyC00glc

COSDmOlT OP THE BANKS.

bank compteollee's rkpobt, state of wisconsin.

Office of Bane Comftrollkb,

Madison, Janwiry 31, 1869.
The whole nnmber of 'banks or^DtEed under the general banking
law, and doing bueineBS on thifi day, u DiQety-eeven, with an aggre-
gate capital of 17,775,000.

The total sumber of cirealating notes issned to such
banks, and outstanding on this cmj, is - - |4,490,396

The drculatioD of banks winding up is - - 224,411

Aggregate circulation outatAsdiog - - 4,714,807

For the redemption of which securities hare been as-
signed in trnst to the State treasurer, amounting in the
aggregate to - - . _ . 4,626,760 00

Specie deposited by banks doing basiness - - 340,383 46

Specie deposited by banks winding np - - 224,414 00

Aggregate . - . - . 6,191,657 45

The following ia a statemeut in detail of the securities held for each
of wid banks, and the amount of circulating notes issued on the
same, to wit :

ABCItO BAITK,

SAU CLAIBB.

Capital, two hanA-ed tkomand doaars.

Missouri 6'B -
Virginia 6'a
Tennessee 6's -

Circulation

■ -

43,000 00
2,000 00

»167,000 00

- 137,866 00

BANE OF BBLOIT, BEUIIT.

Capital, tixty thouaand doUara.
Specie "B" .---.- 47,500 00
Circulation ..... 46,766 00

BANE OF THE CAPrtOL, KADIBOII.

Capital, fifty ihomamd doUart.
Missouri 6's - - - - 19,000 00

Illinois 6'8 - - - - 2,000 00

Louisiana 6*8 - - - - 3,000 00

ty Google

816 OOHDITION OF THE BAHKS.

BAITE OB OOLUMBCa, OOLUMBDa.

Ct^tal, one hmulred thouatatd doBara.

JjooiaiaQa G'b - ■ - . $26,000 00

HHdou 6*8 - - . . 20,800 00

Miaeouri B's - - . . 36,000 00

Virginia 6'8 - - - - I^OOO 00

Specie "0" - - - - 6,136 00

bauk of bad olaike, sau claibb.
Capikdf jffly ihoueand doUart.

(97,936 00
91,236 00

niiooiB 6'b - . ■ - 28,680 00

Virginia 6*8 - - - - 5,000 00

Specie "R" - - - - 16,037 50

BANE OT rOin> W3 LAO, tOm DV LAO.
Capiial, ffty HuMBond dcHara.

HiesoQti O's - - - • ]8,000 00

TenaeRBee 6'b - - - - 29,000 00

Indiana 6*8 - - - - 9,000 00

BABE or fox LAES, lOZ LAEB.

Capital, maty thousand doBare.

49,717 50
49,398 00

66,000 00
49^093 00

Virginia 6'b - - - - 16,000 00

HiBBonri 6'e - - - - 16,000 00

TenncBsee 6'b - • - - 2,000 00

Illinois 6'8 - - • - 9,000 00

Ohio 6'B .... 2,000 60

Michigan 6'« - - - - 7,000 00

California Y's - - - - 6,000 00

66,000 00
60,981 00

n,g:,.ndtyC00glc

18,000 00
44,000 00
S,000 00
3,200 00
4,000 00

$62,200 00
64,644 0«

COHDtnON OF THE BANKS.

■. K. BUTOKLnr k m.'s bihz or obani ooustt, platietilli.

Ot^pU^, BevmUy-five tkoutaad doUan.

Teaneswe 6'a -

Hissonri 6*8 -

Loaiaiaos 6'g -

Illinois 6'b - - -

Michigan 6*8 -

Circolatioii

BABK Of TEB ISTKRIOE, WAUSAU.

Cfapital, ^y thoMtmd ddOara.

Missoari Ca - - . . 22,000 00

Tennessee 6'b - - - - 19,000 00

North Carolina 6'b - - - 4^000 00

lUinoia 6'b - - - . 7^000 00

Michigan B's - - - . 3,000 00

™ , ,. 65,000 00

CircnUtion 49^545 qq

BABK OT jmSBflOIT, JBFFKBSOH.

Capital, fifty Vauaand dolUtra.
Illinois 6'8 - - - . i,080 00

Missouri 6*8 - - - . 48,000 00

„ , ^ • 49,080 00

Uircolation 41,664 00

BAUK Of IiA POINTS, TAUBAU.

Capital, one kim^td thousand dollars.
Tenneuee «'s - - - . 48,000 00

Virginia 6*b - - - - 12,000 00

Ohio S'b .... 44,600 00

„___, ^ 104,600 00

Uironlanon - - - - , Qfl.fton an

BANS or KANnOWOO, HAimOTOO.

Capital, one hmdnd fhoasand doUars.
Ohio 6'e - - - , 94,000 00

a e "B" - - . . 6,000 00

„ , ^ 100,000 00

Uircnlatioii - . - . . 99,999 00

818 COXDITIOS OF THE BANKS.

BANK OF IHLVACKIK, MILTADKIB.

Capital, three himdred thouaand doUara.

ISorih Carolina 6*8 - - - $9,000 00

$9,000 00

Circolation ----- 8,499 00

BAHE OF HONXEA, TIBOQUA.

Capital, aewidy-fivt thouaand doUara.

MiBsoari 6's - - -- - 27,000 00

niinoia 6'b - - - . 20,000 00

47,000 00

Circolation - - - . . 41,810 00

BANK OF UONTSLLO, PBINCETON.

Capital ttovnty-fiva (houaomd doUara.

lUinoie O's - - - - 7,400 00

Specie "R" and "O" - - 17,202 00

BANK OF MONROK, UONSOB.

Capital, twatly-five tlumaand doUara.

Virginia 6'8 - - - - 3,000 00

Hisaouri 6'b - - - - 21,000 00

Tennessee 6'b - - - - 6,U0O 00

BANK OF BOKira AMERICA, OAASD UtWe.

Capital, one hundred thoaaand doOare.

24.602 00

24.603 00

29,000 00
24,381 00

ntinois 6'8 - - - . S,200 00

Tennessee 6'b - - - - 13,000 00

Ohio 6'b . - - - 78,000 00

100,200 00
90,030 00

UyCoOC^IC

CONDITIOK OF THE BA20IS.
BAKE or IHR NOBTHWSrr, FOITD DD LAC.

Capital, jifty thousand dtMan.

Miasoori 6*8 - - - - $20,000 00

Tennessee 6'8 - - - - 10,000 00

North Carolina fi's - - - 10,000 00

Georgia 6'8 .... 5,00000

California 7'g - - - . 10,000 00

„. , . $55,000 00

Oircnlation ..... 48,T94 00

BANE 07 OOOKTO, OCOSTO.

Capital, out hundrtd thousand dollars.

Illinois S's . - - - 6,000 00

MisBonri 6*9 - - . - 54,000 00

Michigan O's - - - . 11,000 00

BANK 07 06BE08H, OSHEOBH.

Capitalf f/ty thousand doOars.

71,000 00
61,628 00

Tennessee 6"8 - - - - 12,000 00

Missouri O's - - . . 28,000 00

Ohio 6's - - - . 10,000 00

Indiana 5'8 - . . _ 10,000 00

BAKE 07 POBTAflB, POETAQE.

Capitai, fifly ihouaand dollars.

60,000 00
50,000 00

Illinois 6'8 - - - . 12,600 00

Michigan 6'a . - - - 20,000 00

North Carolina 6's - - - 16,000 00

Tennessee 6's - - . - 2,000 00

„ , . 60,600 00

Oircalation . . . _ _ 49,658 00

n,g:,.ndtyC00glc

820 CONDITION OF THE BANKS.

BANX OF PKAHUB DU CHUN, FKAIHIB DH CHUN.

Capital, f^ fAoNJond dioOarg.

Hunonri 6'> - - - - tW,im 00

niinoin 6'« - - - - 20,000 00

North O«roliii« 6'« - - - 6,000 00

Looisisnii 6'« - - - • 6,000 00

Specie "0" .... 11,00000

$261,200 00

Ciroulation 48.9»9 OO

BANK or EAOINB, BACIHN.

Oapiial,J^ IhnMamd doOan,

Specie " 0 " - - - - 18,914 00

. 18,9U 00

Circnlation 18,914 00

BAKE 07 BIPON, BIFON.

CapUal, tteenty-Jive tiioaeand doBarB.

Hinonri 6'a - - - - 6,000 00

niioois 6'b - - - - 6,000 00

iBdiuw 6'> - - - - 15,000 00

Feniisjlviiiiia 6'il ... 6,000 00

30,000 00

CSronlalion 26,000 00

BANK OF SHBBOrOAN, 8HBB0TGAN.

dapiial, iiemty-fm ihoMand dottare.
Tennenee 6'> - - - - 8,000 00

Uianari 6'. - - - - 8,000 00

Horth CuroliM O'a - - - 9,000 00

Circnlatioa

BANK OF 8PABTA, BPABTA,

OapUtU, tumUy-five tiiMMHld ddUira.

MiMonii 6'. - - - ■ 19,000 00

19,00<

Ciroolation . - - - . 16,14i

n,g:„-ndtyC00'jlc

COKDmON OF TEE BANKS. 321

BMK. 07 VATSB.TOWS, WATEKTOWIT.

Capital, one huwired thouaand dollars.

Kortii Carolina 6*8 - - - $27,000 00

TflBDessee G'b - - - - 10,000 00

Loaisiana 6'8 - - - - 3,000 00

Ohio 6'fl . - . . 13,000 00

Kentucky 6'h - - - - 6,000 00

niinoiB 6'fl - - - - 7,200 00

Galiforoia 7's - - - - 11,000 00

177,200 00
CSrcnlation - - - . _ 71,337 00

BANK OF WISCONSIK, WATERTOTK.

Capital, fifty thouaand doUm-a.

Misaouri 6'b - - - - 60,000 00

Specie "D'b" - - - - 7,475 00

57,475 00

Cironlatiott - - . . . 49,995 00

BROWH COnNTT BANK, DKFERE.

Capital, twenty-five thousand dollars.

TenneBsee 6's - - - - 10,000 00

Specie "Dc" - - - - 11,800 00

21,800 00
21,000 00

CENTBAL BANK OB WIBOONBOT, JANBSTtLLH.

Capital, one hundred thouacmd doSara.

Virginia 6*8 - - - - 7,000 00

Tenne88ee 6*8 - - - - 12,000 00

Missouri 6'8 - - - - 30,000 00

Georgia 6'8 - - - - 8,000 00

North Carolina 6's - - - 12,000 00

Indiana 5*8 - - - - 6,000 00

75,000 00

CSrcnlatioE . . - _ . 66,610. 00

H. Ex. Doc. 112 21

uy Google

322 coHDinoH of the bahkb.

OHEPPEWA BAVK, PEPIS.
Capital, _fifiy thousand doBan
MiMonri 6'b - - - - $30,000 00

$30,000 00
Circulation - < . . . 24,430 00

omr BARK OP BEATEB DAM.

Ccyntal, fifty &ouaaad doUara.

Misaonri 6'n - - - - 8,000 00

TenneBsee 6'b - - - - 16,000 00

niinois 6'b - • - - 9,600 00

Michigan 6*8 - - - - 4,000 00

Georgia 6'fl - - - - 1,000 00

Loaisiaoa 6'b - - - - 1,000 00

Speciu " 0 " - - - - 1,200 00

CITY BABK 07 EEETOSHA.

Capited, one hautnd thousand doBar8.

Virginia 6'b - - - - 25,000 00

Keotnokj 6'b - - - - 13,000 00

Georgia 6'8 .... 10,000 00

LoaiBiaoa 6'b - - - - 1,000 00

Specie "E" - - - - n,307 00

Cmr BANE ov FascoTX.
OapUcd, j^ thousand doBara.

Illinois 6'b - - - - 38,000 00

Michigan 6'b - - - - 9,000 00

Specie "W" .... 3,00000

39,800 00
37,315 00

66,307 00
63,549 00

60,000 00
49,995 00

n,g>-ndtyC00'^lc

COHBrnON OF THE BABES. 323

CVn BADE OF KACniB.

Cental, fifty ikimwmd SitMars.

Tennesme 6'a - - - - |12,000 00

Virginia O's - - - - 10,000 00

Miasoari 6*8 - ... - 7,000 00

129,000 00

OircalatioD • - - - - 26,313 00

OLABE COUNTT BASE, CEIPFBVA tiUB.

Capital, tvfo Hundred and fifty thousand doRara.

TenneBsee fi'a - . - - 46,000 00

Virginia 5'a - - - - 119,040 00

OOLfmalA CnUNTT BAKE, FOBTAOB OITT.

Ct^al, fifly tkouaand thBars.

Circulation

165,040 00
141,036 00

Tenneaaee 6'b - - - - 6,000 00

WiBConain Q'b - - - • 10,000 00

North Carolina 6'b - - - 9,000 00

Michigan 6'b - - - - 7,000 00

OOMHBIICUL BAKE, SMSSS.

Capital, one hundrtd themaand

PenQ8ylTan)a6'8 - - - 9,000 00

Kentucky 5'8 - - - - 14,000 00

Kentucky 6'8 - - - - 1,000 00

Bacine and Mias. railroad bondB S's - 27,000 00

Circulation

OOBN BZOHANGB BANE, WADPnN.

CafntoH, fifty th/y^vxad doUara.

IlliDoiB6'a .... 43,600 00

Specie "R" .... 1,50000

45,100 00
46,096 00

324 CONDITION OF THE BANKS.

dan; couirrr bauk, uasisoh.

Capital, fifty thousand ddUar$.

Wisconsin B's - - - - $12,000 00

Jia.OOO 00

Circulation - - - » . . 12,000 00

DODQB COCniT BANK, BSATSB DAM.

Capital, J^y thousand ddUara.

Georgia 5'b
North Carolina 6's
LoniRiana 6'a
Virginia 6'8
IllinoJB 6 'a

Cirotilation

10,000 00
3,000 00
11,000 00
500 00
600 00
5,000 00

30,000 00
28,522 00

BXCHAHQB BANE OB DABLINQ & CO., BOND DU LAO.
Capital, aevmty-Jive thmuand doUare.

TennesiM 6'« - - - - 13,000 00

HianoQri 6'b - - - - 30,000 00

ELEHOBir BABX, BLEHORN.

Capital, tteenty-Jive thoaeand dollars.

LonUUna 6'8 - - - - 6,000 00

Mi..oari 6'. - - - - 19,000 00

Viiginis 6'b - - - - 5,000 00

BARMEBB AND HILLBBS BANE, HaWADEXB.

Capital, five hundred thtnuand doSare.

TennBBMe 6'b - - - - »,000 00

LoniBiasa 6's - - - - 5,000 00

„:,C,K'r=

43,000 00
36,416 00

29,000 00
24,914 00

12,000 00
10,800 00

CONDITION OF THE BANKS. 325

FABBIERS AND HBCHANICB' BANK, BOND DC LAO.

Capitai, ttoeitUy-Jivt thotuand doUara.

MisBonri 6'a - - - - $10,000 00

TennesBee B'a - - - - 10,000 00

rOBBBT CITT BANK, VAUESSHA.

CapUal, ^ty thousand doUara.

$20,000 00
17,349 00

Uis80Qri6'8 .... 11,000 00
Louisiana 6's - - - - 18,000 00

Illinois 6'8 - - - - 13,000 00

FOX BITKK BANK, SREEN BAT.

Capital, tweniy-five thousand daUaira.

Virginia O's - - - - 10,000 00

Tennessee 6'e - - - - 10,000 00

Specie "D. C. & O" - - - 1,88T 45

mONTUEK BANE, 8TKTSN8 POINT.

42,000 00
39, OSS 00

21,887 4S
20,370 00

Oapit€il, eighty thovaand doSars.

Noith Carolina 6's - - - 5,000 00

Tennessee O's - ■ - - 6,000 00

Uissonri O's . - - • - 23,000 00

34,000 00
Oironlation 28,700 00

OEBMAN BANK, SHSBOTOAM.

Capital, ^y thousand doUars.

Looisiana 6's - - - - 3,000 00

Michigan 6'8 - - - - 10,000 00

Hissonri 6's - - - - 10,000 00

North Carolina 6's - - - 13,000 00

Ohio 6'8 10,000 00.

Indiana 5'8 - - - - 7,000 00

63,000 00
Oirciilatio& - . - - - • 49,226 OO

n,g^.ndtyCopglc

826 CONDITKK OF THE BANES.

OKESK BAT BANK, OOONTO.

Capital, thirty-Jive thnuamd daUara.

Hisaoori 6's - - - - $22,000 90

Mil. and Wat. B. B. bonds, 8'a - 26,000 00

$48,000 00

CircnlatioD ..... 34,899 00

HAIX t BEOIHEB S BAHE, EAU CLAIEB.

Coj^tid, Jlfiy thousamd doUara.
MisMori O'a - - - - 60,000 00

60,000 00

GircnIatioQ . . - . . 50,056 i

EDIieOlT OnT BAHK, aUD805.

OtqfittU, iweniy-five thousand doBan.

Michigan 6's - - - - 16,000 00

MisBonri 6'a - - - - 10,000 00

JKUfEueos oommr babz, watbbtowv.
Capital, »eveaty-fiw Vwwand ddUars.

California I'a - - - - 38,000 00

MisBonii S'a - - - - 37,000 00

26,000 00
23,425 00

76,000 00
63,760 00

JUNBATJ BANE, laLWAUEBB,

Capital, two hundred and ffty thmaand doUara.

Looiaiana 6'a - - - . 3,600 00

Tenneasee 6'a - - - - 7,000 00

Specie "B"' - . - - 10,398 00

20,898 00

OircDJation - - - .• - 19,690 00

ty Google

CONDITION OF TEE BANKS.

EATAITTAII BARE, LA CSOSSB.

OapUal, jyty thousand doBara.
HiBBOnri 6'b - - • • $61,000 00

161,000 00
Oircnlatioa - . . . . 60,003 00

L COUBTT BANX, EKKOfiHA.

Capital, fifiy tkmaand ddOfov.

MisBomi 6's - - - - 10,000 00

LoiUBiana 6'a - - - - 9,600 00

Ohio 6'b .... 6,000 00

KOEOKO BAITK, WJUtHWAIER.

CapUai, fifty thovaaatd doBara,

EiOQiaiana O's - - - - 6,000 00

TouieBsee 6'b - - - ■ 6,000 00

Korth Csrolins 6'b - - - 16,000 00

LA oaoaaR oovtcit bank, la oBoesB.
Capitai, ttoenly-five thouaaad doUan.
Tennessee 6'b - - - - 26,000 00

24,500 00
21,846 00

25,000 00
23,555 00

26,000 00

CircnUtion - - - _ . 22,490 00

LAB0RBB8 BANE, MABEBBAIT.

Capitai, seventy-five thousand dcBara.

Loniflians 6'b - - - - 20,000 00

North Carolina 6'b - - - 6,000 00

BlinoiB 6'b - - - - 12,000 00

Georgia O'a - - - - 1,000 00

8pede"B" - - . . 2,400 00

(SioolatioD

328 cOHDinON of the bamks.

LUMBBBMAM'a BASK, vrOOQIJA.

Capital, three hundred thousand doHara.

Missouri 6's - - - - $6,000 00

niinoii 6'8 - - - - 82,200 00

Tenneflsee 6'b - - - - 9,000 00

LoniBiftna 6'b - - - - 2,000 00

Michigan 6'e - - - - 5,000 00

Specie " R & S " - - - 65,186 00

$169,386 00

Circulation - - - - - 166,755 00

LAKE SHOBB BANK. HAlQTOirOO.

CapUai, twenty-five

Wiflconflin 6'b -

5,000 00

TenneBsee 6*8 -

4,000 00

Virginia 6'b

4,000 00

North Carolina 6's

9,000 00

MisBoari 6's

5,000 00

27,000 00

Oiroalatioii

25,000 00

uAsnoiwoc couircT bank, two kivibs.

Capital, fifty thaa^md doSara,

Georgia la ^ - - - 20,000 00

Wisconsin 6'b - - - - 20,000 00

MiaBoari 6'a - - - - 2,000 00

42,000 00
Circulation 41,69T 00

MABIKB BANE, UILWAnSEK.

CapUai, fifty thotiaand doUara.
Missouri 6'b - - - • 13,000 00

13,000 «

CircTOation 11,000 00

UBOEASICS' BANS, QKEES LAKE.

Capital, twenty-fiw thouaand doUars.

lUinoia 6's - - - - 25,000 00

25,000 00

Circulation - - - . - 25,000 00

n,g:,.ndtyC00glc

CONDITION OF THE BANES.

hbboikulb bark, bbateb dah.
GapUcd, fifty Otawand d^ara.

Missouri 6'a - - - ^ $9,000 00

Tennessee 6'b . - - . 3,000 00

Loaisiaiia S's - - - - 8,000 00

Michigan 6'b - - - - 1,000 00

nUnou 6's - - - - 22,160 00

North Carolina fi's - - - 5,000 00

Specie "R& 0" - - - 3,600 00

Circalation - - . - _

HEEICHANTB USD KBOHANICS BANE, WUITKWATSB,

OapiUd, one hutu^ed tfiousand doUara,

Musonri 6'h

CircolatioQ

60,000 00

MoiiaoB oomnr bask, spabta.
Capital, Ji/iy iliouBand doOara.

60,000 00
62,262 00

Specie "B"

Circalation

43,325 00

HOBTHBRS BASK, HOWABD.

CapUaljjifty thowtand doUars.

43,326 00
41,600 00

Virginia 6's
MiMonri 6'« -

CirCDlation

21,000 00
17,000 00

44,000 00
39,826 00

KOBTHWKTEBII BAITK, BTETENB' POINT.

Capital, one hundred thousand doBara,

G^rgia 6'b - - - - 5,000 00

North Carolina 6'b - - - 16,000 00

TenneBseee's - - . . 31,000 00

Loaisiana 6'b - - - - 18,000 00

Wisconsin 6'8 - - - - 9,000 00

Virginia 6*8 - - - - 4,600 00

Circulation _ . . _ -

ty Google

3S0

COHBmON OF THE BANES.

OAZWOOS BASK, NOBTH PEPIV.

Capital, tidy thouttuid doSars.

Missonri 6'8
Virginia 6'fl
Illinois 6*8

162,000 00
2,000 00
6,400 00

$70,400 00
60,000. 00

OOONTO OODRTT BASS., OOORTO.

(Topttol, one htmdred thotteand ddUan.

HisBOnri 6's
Tennessee 6's
Michigan 6's
North Carolina 6'b
Wisconsin 6'b
Virginia 6's
Specie "DC" -

Gircalatioa

5,000 00
20,000 00
9,000 00
1,000 00
8,000 00
1,000 00
16,000 00

60,000 00
57,345 OO

Capital, twaUjf-five tbouaanddtiUan.

Hiesonri 6's
Wisconsin 6's
Tennessee 6's
Miohiean 6'b
Georgia 6's

17,000 00

6,000 00

3,000 00

1,000 00

2,000 00

28,000 OO

24,992 00

06B0BIT BAITE OF ITBTT LOHSOH.

Oc^itfd, fifty Qujiuamd doUars,

Louisiana 6'b
Tennessee 6'a

6,000 00
20,000 00

25,000 00
22,995 OO

uy Google

CONDITION OF THE BANES. 331

OBHKOBH COMHSBOUl BAHZ, OSHEOSH,

Capital, ^fy thtntmnd ddUara.

Indiana 6's - - - ■ $15,000 00

MisBonri 6's - - - - 18,000 00

North Carolina 6'8 - - - 6,000 00

Tennessee 6'b - - - - 10,000 00

Looiaiana 6'8 - - - - 2,000 00

$60,000 00

Circulation - . . . . 43,276 00

KAciNB ooDirrr bake, baonb.

OapUci, two hundred {hovaamd doBan,

Sfisflonri 6'a - - - - 20,000 00

Ohio 6'b . . - . 30,000 00

BOOK oomrrr ibakk, jai?bsvillb.

Capitai, Jljiy thousand ddllara.
HiMonri 6's - - - - 24,000 00

Tennessee 6*8 - - - - 13,000 00

Indiana 6'b - - - • 6,000 00

BOOK BIVBB BANK, BELOIT,

Capiial,jifiy thousand doUars.

Virginia 6'b - - - - 7,000 00

Sentnckj 6*8 - - - - 5,000 00

Specie "D'b" - - . - 12,976 60

SADX dTT SAHK, SAUK dTT.

Oapitai, thirty thoueamd doBara.

IllinoiB 6'8 - - - - 23,000 00

Specie "WAO" - - - 3,40000.

50,000 00
46,999 00

43,000 00
37,104 00

24,976 60
24,167 00

26,400 00
26,400 00

332 CONDITION OF TEE BANKS

BAUE oommr bask, bakaboo.
Capital, fijiy thoutand dollars.
Miasoari 6'b - - - - $31,000 00

Hichigan O'g - - - - 18,000 00

Specie "0" - - - - 3,000 00

$52,000 00

Ciroolation . - - - . 47,129 00

BBCOITD WARD BASE, IHLVAUEEB.

Capital, twenty-five thousand dollars.
Specie "0" - . - . 1,325 00

Gircnlation - - - - - 1,325 00

8&AWAITAW BAKE, CHILTON.

Capital, one hundred thousand dollars.
Hichigan 6'h - - - - 10,000 00

lUinois 6'fl - - - - 75,040 00

85,040 00

Circnlatdon ----- 84,990 00

BIATB BANE, KADISON.

Capitid, ^y thousand dollars.
Iowa 7'fl - . . - 10,000 00

10,000 00

Oircnlation - . . . . 10,000 00

BIATB BANK OF VIBCONBIN, MHWADEEB.

CapitcU, five htmdrtd thoutand doUara.
Missouri 6'b • - - - 31,000 00

31,000 00

Cironlation ..... 19,650 00

5TATB BTOCE BANE, lAU CLAIB.

Capital, one hundred thousand dollars.
LoaisiaDa 5's - - - - 10,000 00

Lonisiana 6'8 - - - - 2,000 00

MiBsonri 6'b - - - - 93,000 00

Tennessee 6'b - - - - 15,000 00

120,000 00

Circolation ... - - 100,000 00

dtyCoOgll

CONDITION OF THB BANKS.

BT. CROIX BITSR BANK, GRAIfD BAPIIH.

Capital, one hundred and fifty ihoaaand doSars.

Georgia 6'b - - - - |5,600 00

Wisconain 6'b - - - - 5,000 00

Louifiiana 6'b - - - - 12,600 00

Illinois 6'a - - - - 31,640 00

North Carolina 6'8 - - - 6,000 00

TeonesBee 6's - - - - 6,000 00

Mifisoari 6'b - - - - 40,000 00

Specie "0" - - - . 1,245 00

(I0T,885 00
Ciroalation - - - . _ 100,355 00

ST, CaOIS TALLKT BANE, HUDSON.

OapUai, one hundred thoiuand doUars.
North Carolina 6'8 - - - 5,000 00

Tennessee 6'b - - - ~ 25,000 00

Virginia 6'a - - - • 20,000 00

Uissonri 6'8 - - - - 50,000 00

.100,000 00
Gircalation ..... 86,990 00

TRADESHSN's BANK, CHIPPEVA FALLS,
Gapiiai, one hundred thousand dollars.

Virginia 5's - - • - 96,000 00

Tenneasee 6'8 .■ - - . 6,000 00

102,000 00
84,930 00

UNION BANE, 1IIL7AUEEB.

Capitaij^y thousand dollars.
Tennessee 6'8 - - - - 18,000 00

18,000 OO
Circulation - - - _ . 16,562 00

WALVOETH COHNTT BAKE, DELAVAN.

Capital, fifty thousand doUara.

TennesBee S's - - - - 20,000 00

HisBouri 6's - - - • 26,000 00

Virginia 6*8 - - - - 4,000 00

49,000 00
42,830 00

n,C^

884

ooimrnoM of the baskb.

HiBSotui 6's
Virginia 6'8
Tenneesw 6's
LoaiBisna 6's
Illinois -6'b

WACEBBHA OOWTT BANE, WAITEffiHA,

OapUai, one hmncbred Utouacmd doHart.

-: - - - $53,000 00

15,000 00
20,000 00
6,000 00
6,000 00

$98,000 00
85,806 00

TAUPAOA OOCNTT BA1I£, WAUPAOA.

Ca^Udjfi/ty ihouaand ddliart.

niinois 6'a
Hissoari 6's
Wisconsin 6's - '
Virginia 6*8
TennesBee 6'b
North Carolina 6'b
Specie "R"

Circulation

14,640 00
6,000 00
1,000 00
2,000 00
T.OOO 00

20,000 00
1,800 00

52,340 00
49,996 00

Hissoari 6'a
Georgia 6's
Illinois 6'a
Indisna &'b

WAUFUH BANX, WAUFUK.

Oapftol, iwaUy~Jive thouaand doSara.

15,000 00
2,000 00
1,000 00

10,000 00

28,000 00
24,294 00

WntKEBAOO COUBTr SAITK,

Capital, twenUy-fivt thousand doSart.

Missouri 6*8 - - - - 19,000 00

Virginia 6'b - - - - 10,000 00

29,000 00
24,999 00

uy Google

CONDITION OF THE BANKS.

335

yrmoosmi bank or iubibon.

Oapitaif Me hundred thoueand doUan.

HiBBonri 6'8 - - - - $17,000 00

HUnoifl 6"b - - - - 29,280 00

Specie *.'0" - . - . 2,5V0 00

$48,850 00

Oircnlfttion - - - - - 46,300 00

WIBOONaiN HASniB AND flSB INBn&ANGB OOKPANT BANK, BCLWADKBB.

Capital, one hundred thousand doUara.

Wisconsin 6's - - - - 20,000 00

Mil, & W. B. R. bondfl 8'fl - - 24,000 00

44,000 00

Circulation - - - . . 36,372 00

WIBCONHDI PCTEHT BANK, STEVKNB' POnm.

CapUei, ffiy thoutand doBara.

Illinois 6's - - - - 20,000 00

Missouri S's - - - - 10,000 00

Virginia 6'b - - - - 19,000 00

Tennessee 6'8 - - - - 1,000 00

Spede "R" . - _ . 3^100 00

63,100 00

Circulation ..... 49,995 00

WISCONBIS VAUiBT SANK, WKTAnWBaA.

Capital, one hundred thousand doSars.

MiBsomi 6'8 - - - - 86,000 00

TenneBsee 6'8 - - - - 21,000 00

Wieconsln 6'b - - - - 5,000 00

Specie "O" .... 3^000 00

„. , 114,000 00

Circulation - - - _ . 97,876 00

BANKS WINDING UP.

BABOEB SIAIB BARK, JAWnavTT.T.n,

Specie "S" 6,455 oo

(Srcnlation outstanding - - - - . _^ 6,466 00

n,g:,.ndtyC00grC

3S6

CONDITION OF THE BANKS.

Specie "D"
CiTcalation

Sjpecie *'S"
CSrcnlatioa

Specie "D"
CnrcalatioQ

Specie "8"
Circulation

Specie "D"
Citcolation

Specie "D"
CSroalation

Specie "D"
CSrcolation

Specie "8"
Carcolation

Specie "0"
Ciiculation

Specie "D"
CircnlatioD

BANE OS THB CTIY 07 LA OKOEBH.

BAITS OF COMHERCB, HILWAUKEB.

f ABHEB8 BANE, HIJDSON.

SEBltAlflA BANEi-HILVADKBB.

GLOBB BANK, MILWAUKEB.

JANSBVIUJI CITT BANK, JANBSVnJiB,

KANKAEEB-BA2fE, BUCK RITBK FAUfl.

UARATBON CODHTT BAlfE, EAGLE RIVEB.

HSBCEANIB BANK, lUDISON.

NOBTHEBK WIBCOSBIR BANK, AtJBOBA.

$6,271 00
6,271 00

476 00
476 00

7,689 00
7,689 00

27 00
27 00

1,606 00
1,606 00

9,766 00
9,766 00

6,078 00
6,078 00

27,070 00
27,070 00

10,670 00
10,670 00

62,660 00
62,660 00

n,g>-ndtyC00glc

CONDITIDN OP THE BUTES. 337

osHKOSH cnr baite, oshkosh.

Specie "S" tl62 00

CSrcuUtion 182 00

FBOPU'S BANE, ULTAnEBB,

Specie "8" 2,409 OO

dronUtion 2,406 00

PBODOOBBS' BAKE, JABBSVILLB.

Spedo "S" 2,203 00

CSrooUlioii 2,203 00

SIA19 SBODRnr BABE, SBBCBEOE.

Specie "8" '9,360 00

(&Ution 79,380 00

TIBOOHSni BABE, UBBBAL POIBT.

Specie "S" 1.'43 00

CfcuMon 1,743 00

BacAPrnn-ATioiT.

CslifoTnis Stale itook 7 per cent. - - - 64,000 00

Oeorgia do 6 do . . - 42,600 00

QeorgiB do 7 do ... J0,000 00

minoie do 6 do ... 624,620 00

Iowa do 7 do ... 10,000 00

Indiana do 6 do ... 78,000 00

KentackT do 6 do ... 14,000 00

Kentucky do 6 do ... 26,000 00

Lonieiana do 6 do ... 10,000 00

Lonieiana do 6 do ... 165,000 00

Michigan do 6 do ... 134,000 00

Minonri do 6 do ... 1,666,000 00

Korth Carolina do 6 do ... 216,00000

Ohio do 6 do ... 286,600 00

PenneylTania do 6 do ... 14,000 00

Tennesieo do 6 do ... 613,000 00

Tllinnia do 6 do ... 216,040 00

VirSinia do 6 do ... 262,000 00

WiKonein do 6 do ... 100,000 00

Mil. & Wat. B. B. bonds 8 pet cent. - - - 60,000 00

Bao. & Misi. B. E. bonda 8 per cent - - - 27,000 00

Total 4,626,760 00

Specie (inclnding cloeed banka) - - - - 664,797 46

Aggregate 6,191,667 45

H. Ei. Doc. 112 22 n„ ,,-,:, C.oagic

CONDITION OF THE BANKS.

The foregoing is made in compliance vith the last olanse of the
41st section of the act entitled "An act to anthorize the hoBisess of
hanking," approved April 19, 1862, and is a correct statement of the
secnrities deposited hj each hank, and the ontstaading circalatios
issaed to the same.

J. C. SQUIBES,
Bank GomptrolUr.

EXBOUTITB ChAHBO, IoWA,

Dea Moinee, Decemier 20, 1858.
Sib: I Lave the honor t» acknowledge the receipt of jonr note of the
30th ultimo, requesting information relating to the condition of the
State Bank of Iowa. I have to say in reply that eight branches have
been organized, but none have commenced basioess. All necessary
arrangements will have been completed on the 30th of January next,
when it ia expected that active operations will he commenced. It will
be my pleasure to give you any information at my command relating
to the condition of these ban^ when yoo may be pleased to require
the same.

Very respectfully,

RALPH P. LOWE.
Hod. Howbll Oobb,

Secretary qfthe IVeamry, Wiuhingbm, D. O.

n,g:,.ndtyG00glc

CONDITION OF THE BANES.

839

-.^in»^

-mxraqjHnooiana

■«i»d.a

— ™

■<«»«ifl

•.V<V>I»H)

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comyrtios of the kanek

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342 CONDITIOIT OF THE BANKS.

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CONDITION OP THE BANES.

Bl '

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IIIIIM^^lllM'l

ITTnilllTfl

immmm
ifiiiiPlpiiii
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iriiliwi

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a i! iWfOiMllMl

inifflii H siiisi

8S 8 S $ SSS3S S a 8 :

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CONDITION OP THE BANKS.

EE.—AgtnenUtlalaiaiti/tliiecmJilim^Aebai^

Buu.

i
1
■s

■s

1
s

1
1

a
1

Dm. 8, ia»
Ocl.M,lBS8

4,088,418

to
<a

3S
00

B^Ml 3S7

H,iL8,7as

6,791,7S1

!:!!!S

••^^

«ii,ei5,is7

8,aM^154

B,3w,wa

BO
BS

13;38j;788
S*,404,9«
H,a30,4U
1>6,«IS
6,48tt,308

"SS

l,Se4,884

5%: 403

i,oe&,i73

8,»*,4SS

■•is

4,TOi;oa

1BS,711

"tiwisoo

isi.ao9

7ai,SM
!l,eM,t43

eoi^Ms

3,S«B,4J7
U8,9Sl

417;33S

E:i

Nov. 1, 185S

"'ai'

Dec.—, ISM

Not. 1, 18U
D«e., IBS8
J«. S,16»

■N«.1°iBie'

S?.r:?;::;;::::.:;:;:

MlHMrl.

l,ISi

ToUl

l,3»

,„

«ai.9TB,tM3

9s7,i(a,™

fl3,ll(H,W

as,9m,«7

t of Juiaaiy, 1BS9. Ta cnmpTeir Uig lUitmcnl, fl hu been found neeeHU* to (In [b
ERmcDD," and ■' Dlher IlililllUu" or Uie baoki of Blioils blind h Ihej nood oo tba UU
inia ema U»t Buu foe Juiurf , IBSS, not tmbncinf Uioio licnu.

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CONDITIOIT OF THE BANKS.

347

1
1

71)l,S«
g, 187,845

lis

2,233,935

308;Ba2
I,0I7,M1

9;2m;4M)

ft,192,01B
6,i3S,91S

i;i77>

(273,3-3

313, %l
B, 044, 185

ea\m

S14,(I6U

78o;«ia

879,748

|M3,7M

"' s

as, M

It, 31

I H

3,371,956
18,218,087

1,869; UOO

1,BU,441

49,018

1S,279

^115 843

30 38

W N
11 80

U 4*

11 82

6,BS1,11T
9,OM,0Cl(
«472>2
14,345,666

S.379,93j
8,040,3*4

93,348

(1, 381, 910
615,674

30,538,153
3,130,475
4,U0,OW

110^466^788
4939,»aS

«i>;m8

B,09e,6W

i;500;319
3,891840
9,317,923

3,S30,«O7
91,Eaj,538

6.144,879
3,I23,B«I
640 1158

i,wa;640

4,380,861
'U^693

"IS

«w,mi

«tD,NB

■»sm;aai'

r3,aM

1,441

7,esi,»M

1136,081

35,131;mJ

770,933

4,58B,6U

'■lis

181 3M

3,746,604
r,797;R95

l,006,e3il
3,198,089
l^OTiaBS
4,338,384

579, eao

15,821
I7^»

488,878

ii;i6j

1,44>

n,'au

Si's

996,888

^135
i,8»4,BlB

9as,&9s

18,436,167

«h;»ii

3,34B,aH

i.sailoaa

*l«,663

«B,UT

58,780

i78i'we

«B,4S1

sei,7«j
i,on,sso

1,397,077
348, 611)

1»,T41

'44i;i»

l,S73,*M

4,418

«,au,Mi

7«,aM,9B7

i8,8S8,»IB

Ba,H)9,axi

IM,S3T,BIB

193,308,818

259,568,978

W,ai2,6S

15,0«,«7

Tb«"ipBti* fOndi" inHir to coiulil {m fewimilt amouDl* of coin iLnd mini certlllotai «ic?pted)aJi
cieliMlRlf of noiM or ouct buki, checki on otbai bulu, ud alber oMigiilDiii pijible on d«nuil.

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BANKS.

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INDEI.

^UoM.— Tkbolsr Tiew of bukj in, Juiurri 1B59

JHrnuat. — Extraot from Oovernor OoD way' ■ moBagtf . L. ......... — ....

B«port on the Bulk of the State.

CbmnticMl.— Bepott of bank commiMlonen, 1S58 — .

TabnUr vkw of banlu In, April, 18S8

JMoKor*.— Tabalar view of banki In, Jannarf, 1669

Gtorpa.—lt.hniai vieir of banks in, April, 1868, to Junaiy, 18&B

Extract from report of preddent of Qeorgia Bailrnad and Banking Com-
pany

JUuHti. — 'DtbDlar view of banks in, Jannarj, 1859 ........... .

Slatemeot of Kcnritiei and dicolation....... ......... '■

Extract from OoTemor Blnell'a mewago

itdkpia. — 8tat«ment of condition of &ee banks...... — .. .

Becaiitiea and clrcnlation — ...........

Beportof the Bank of the SUts —

lava. — Letter from the governor. .......

£0AK»y.— Thbnlar Tiew of baDki tn, Janouy, 18W..

Lenitiama. — Beportof board of cnrrency . . ........

Maat — Tabniar Tiaw of banks In, Janoai?, 1S69. ...... ...... . ......

Bepoit of bank oommlirioneii .. ....

JforylMd.— Tabniar Tiew of banks in, January, 1859

JfaaaeftMtft.— Abstract of the oondition of the banka, October, ISSB

Extract from bank oommlsrioneii' T«part..... .... ......

Jfiet^.— Tabular view of banks In, January, 1859

JfiHMn. — lobular view of banks in, January, 18S9 .

J&nHNto.— Tabular view of banks in, January, I8&9

JMroaU Hmfary.— lobular Tiew of backs In, Jannary, 1899 .................

ilToB ifim^KUn:— Tabular Tiew of banks in, December, 18S8

litK JtTKji. — I'abnlar riewof boolulD, January, 18fi9 .........

Letters respecting de&nltlng banks..... ..............

Sat Tark. — Report of bank saperintendent.. .........

Btat«ment of the conditloD of the banks in, December, IB&B..

JVarlACbroltna.— 'Hibalar viev of banks In, Jaooaiy, 1869

OUb.— TabolBT view of banks in, MoTember, 1808

famiytoarta.— Tabniar Tiew of banks In, Hovember, 18&8... ...... ........

NoUcesof Bank of PennsyiTania ......

AteA Mmd— Tabular view of banks in, January, 1869

Letters tiara State auditor. ...... .. ......

SeuA Ctarc£Fia.— Tabular view of banks In, December, 1868

—Tabniar view of banks in, January, 1869.......... i|^.

Dmkd jSlofai.— Synoprii of the eondltkiii of Um baiikt in tti« dUfBrmt StetM at

tha dktM annexod .... .....

QeoenJ itatemeot of tbe aoaditica of the banlu In «*reh BUte,

according to retorna neuMt to Jannair 1, 186S. ..........

CompamtlTe view of tbe cotidUloii of tbe baoka in the dlfforaat

•ecUona of tha nnion, in 186C-'S7, 1B5T-'SB, and 18G8-'G9

ComparatiTO yUnr of tbe condition of tbe baoka tbrongbont the
Union, aooording to retorna In vaiiona jraara from 18S0 to 18fi>,

IndoalTe . — . — .......

TiniKmL— l^balai *iew of bviki In, Jnly and Angmt, 1808............

Extract from report of bank oommialonec........................

ngmia. — lobular view of bankain, Jannaiy, 1S6S........ ..................

Wuamiin. — Tabular view of bank* In, Jannaij, 1869 ...... . . ....

n,g>ndtyG00glc-

36th CojaiiEsa, ) HOtTSE OF BBPBESBNTATIVES. ( Ex. Doo.
2d Session. ( ( No. 113.

CLAIM OF JAMES KEBNAN, DNITED STATES CONSUL AT
HONO KONG.

LETTER

THE SECRETARY OP STATE,

Copies of correependence rdattve to the daim (f James KeenoM, United
Slates Consi^ at Hoag Kong, Ckuia.

B 3, 186t.— Ldd on the tabls and ordered to be printed.

Depasthrnt op State,
Washington, F^ntary 26, 1859.
Sm : I have the honor to tranamit herewith a letter addressed to
Hon. Q-. W. Hopkins, chairman of the Committee on Foreign Affairs,
in reply to a commnnicstion addressed to this department, requesting
information respecting the " claim of James Keenan, United States
consul at Hong Kong, on account of expenses incurred in defending
himself in suits brought against him in the colonial court, and also
for expenses incurredforreiief of American citizens," and request that
jrou will give it the proper direction.
I have the honor to be, sir, roar obedient serrant,

LEWIS CASS.
Hon. Jahxs L. Orb,

Speaker of Me .BbiMe of Bepresentatives.

CSPARTHBNT Off StATB,

Washington, February 26, 1859.

Sm : Referring to your communication addressed to this department
on the 25tb ultimo, respecting the claims of James Keenan, United
States consul at Hong Kong, and the reply oftbedepartmentthereto,
dated January 28, I nave now the honor of transmitting the papers
relating to one of these claims, which it was then stated would be
transmitted as soon aa they could be copied.

It may be proper to state that special appropriations have occanon-

2 CLAIM OF JAMES EEEKAX.

ally been made by OoDgress for the payment of ezpensea iocarred by
consular officers of the United States "for tbe reliof of American
citizens shipwrecked" or left "destitnte" in foreign countries. — (See
Statutes at Large, volume 10, pages 669 and 667, respectively, and
Session Statutes, third session thirty-foarth Congress, pages 43 and 44j
Private Acts.) In lS55the Secretary of the Treasury was "authorized
and directed to pay Mr. Keenan the sum of five hundred and eiehty-
one dollars and fifty-eight cents, expended by him lor the relief of
American citizens shipwrecked in 1864, in Chinese waters," and "were
thrown on his hands under peculiarly distressing circumstancea."
There were seventeen passengers in the American ship " Monsoon,"
which, in 1866, put into Hong Kong in distresB, and was sold ander
a decree of the vice admiralty court ; of these, fifteen were sent away
by Mr. Keenan withont charge to the consalate, the other two, be
stated, "it became absolutely necessary for him, in consequence of
their heingsick and destitute, to take charge of and send to the United
States," The views of the department, in reference to the course of
Mr. Keenan in contesting the jurisdiction of the local authorities of
Hong Kong, can be ascertained by referring to the despatch of Mr.
Harcy, the late Secretary of State, addressed to the consul on the
14th of April, 1856, which accompanies the papers herewith trane-
mitted,

I have tbe honor to be, sir, your obedient servant,

LEWIS CASS.

Hon. Geobqb W. Hopeins,

Chairman of Committee on Foreign Affaire,

Eovae oj Bepreaentativee.

I. — Papers relating to the claim of James Keenan, United Statei
consul at Hong Kong, " for moneys expended by him for the relief
of destitute American citizens" wrecked in the ship " Monsoon."

II. — Papers relating to the claim of James Keenan, United States
consul at Hong Kong, " for moneys expended in defending himself
in a suit brought against him in the colonial court of Hong Kong,"
in the case of " Lin & Tye vs. J. Keenan, esq., United States con-
sul," in which "the defendant was sued in his ofBcial capacity by
two Chinamen, claiming certain salved goods in lieu of salvage
therefor," belonging to the cargo of the American barque " Mer-
maid," wrecked on the Pratas Shoals.*

in. — Papers relating to the claim of Jamas Keenan, United States
consul at Hong Kong, "for expenses attendant upon the defence of
his rights as United States consul, and in protecting the rights of
his countrymen resisting the efibrts of the colonial authorities,
and establishing the supremacy of American law over American
ships," "the case of Bex vs. Keenan, for tbe alleged rescue of
Captain E. H. Nichols, of the American barque ' Reindeer' from
custody."

° Non.— Thi papen relating to these two claimi will be foniul 111 Bx. Doc. Ho. TS,
PoQse of BepcsMntativei, 3i leidaii 35th Congrcn. • ( 'ooolp

CLilU or JAMES EEBNAK.

Liet of papers accompanying a commutUcation of the Secrttary of State.

Mr. Keeoan to Mr, Marcy, No. 22, (with encloBareB,) November
14, 1856.
Same to same, No. 26, (with enclosures,) Decemher 14, 1855.
Same to same, No. 26, (with eoclosureB,) Janaary 16, 1856.
Same to same, No. 27, (with endoBnres,) February 12, 1856.
Mr. Marcy to Mr. Keenan, April 14, 1856.

Mr. Keeoan to Mr. Maroy, No. 30, (with enclosnre,) May 9, 1856.
Same to same. No. 34, (with enclosure,) October 14, 1856.
Mr. Marcy to Mr. Maeon, December 22, 1854.

Jfr, Keenan to Mr. Marcy,

Uhitbd BTATm CoNSin^in,
Hong Kong, November 14, 1866.

Sir : I hasten to bring to your notice a series of outrages lately
perpetrated in this port upon AmericsQ vessels and American citizens,
and the manner in which the aothority of the representatives of our
conntry at this port is set at naught and the honor of oar country
assailed.

To do this fully and clearly I beg to submit to your consideration
the following correspondence.

A. My letter to Captain W. J. McCluney, commanding United
States steamer Powhatan, detailiDg the oocarreuces from the 19th till
the aSd ultimo.

It may be well to premise that, upon several late occasions, when I
have applied for aid from the authorities to arrest deserters no atten-
tion has been paid to my applications.

Upon the morning of the 23d ultimo Captain Brastus N. Nichols,
master of the American barque Reindeer, reported himself to me at
this consulate, to answer John Madison, carpenter of said vessel, or
any of his crew, upon any charge to be brought against him. He
stated that he had been summoned to appear before the police court to
answer said Madison on a charge of assault and battery, committed
on board the Reindeer, and that four days previously Madison had been
forcibly taken from his vessel by a bodj of armed men calling them-
selves police. Capt. Nichols made himself my prisoner and requested
that 1 should adjudicate in the matter, and that Madison should be
returned to the Reindeer. Knowing the dispositions of the magis-
trates towards American citizens, and feeling rather a desire to con-
ciliate than dsmand, I took Captain Nichols with me to the court
room ; there he was rescued from me, against my protest, and placed
in the prisoners' box, and mnlct in a fine of fifty dollars to the Queen
aod twenty-five dollars to the man Madison.

On the 25th ultimo, in accordance with the request of the colonial
secretary contained in letter B, I had an interview with that gentle-
man, and during a lengthy conversation reiterated my claim to sole

4 CLAIM OF JAUE8 KEENAH.

jarisdiction io aach caees, npon the grouDds laid down bj Mr. Webater
in hiB correepondence with Lord Ashbarton in the matter of the
ship Creole, and bb declared hj Wbeaton'a Elements of International
Law as "the only rale that conld be adopted and observed consiHtently
with the rights and honor of the Uaitra States and the security of
her citizens," and " as the principle maintained by our gorernment,"
and as a rule endorsed at length in our late treaty with France; and
requested him to solicit the interferenoe of his excellency Sir John
Bowring, governor of the colony.

On the aay following I received from him the letter marked C, from
which you will learn that if I had acknowledged the jurisdiction of
the magistrate of Hong Kong over American vessels, I would have
avoided " either official correspondence or further procedure." Of the
" further procedure" I shall speak hereafter. To this letter I replied
by letter D,

At this stage of the proceedings the man Madison was still at large,
notwithstandmg my repeated requests to the police, verbally and by
letters Nos, 1 and 2, and was impudently demanding an order for his
chest at the consulate. Captain Nichoh remained on board the United
States steamer Powhatan, under the protection of Captain McCluney.

In answer to my note No. 2 the superintendent of police replied by
No. 3, that Madison would appear in court on the 27th. I appeared
in court with my legal adviser, and after exhibiting the ship's "arti-
cles " claimed Madison as a man who belonged to the ship, aad who
had been forcibly abducted, and demanded his return.

I left the court refusing to acknowledge its jurisdiction in matters
concerning the internal arrangements and order of American vessels.
My attorney remained, and from him I afterwards received the letter
marked Ko. 4.

The anxiety of mind occasioned Captain Kichols by the virulent
proceedings against him had in the mean time prostrated him with
serious illness, and in consequence I received from Dr. Maxwell, the
surgeon of the Powhatan, the note marked G-, requesting me to make
the proper arrangements for bis safety and comfort on shore. I
accordingly procured him medical aseietance, and on the following
day had him removed to my house, where he still remains, and,
though convalescent, still suffering from the effects of the persecution
he had undergone.

The vessel proceeded to sea under the command of the mate, whom
X made her master.

I enclose the deposition of the late mate of the "Reindeer," regard-
ing the circumstances attending the putting Madison in irons for
mutiny, and his rescue therefrom, and also the depositions of James
Mitchell and Thomas Cahill, residents of Hong Kong, together with
the letter of W. Tarrant, esq., in evidence of an arrangement having
been made by the police and the deserter Madison, by which the latter
was to return on board the "Reindeer," incur punishment, and
receive his release by them, and obtain a situation under the gov-
ernment.

Again : John Jackson signed the articles of the barque "Reindeer"
on the 30lh ultimo, as a seaman, and was paid his advance by the

CLAIM OF JAUE8 EEENAN. 5

ehippiDf^-master, an American ; on the 30th he went on board her
Majesty's ship " Pique." I sent on hoard of that VcHsel a certificat*
of his shipment, under my consular seal, and made application for the
rendition of Jackson. On the 1st instant I received the enclosed reply,
marked H. The "Reindeer" sailed on the lat, and a day or two
afterwards Jackson called at the consulate and demanded his dis-
charge. I refused it, and T am informed this deserter is still at large.

We now come to the "further procedure." Notwithstsudin? that
I had been notified by letter F that the fine had been " paid in the
nsnal form into court," a policeman served a summons on me at the
consulate to attend Magistrate Hillier's court on the 1st instant, to
answer a charge of assault and forcible rescue of a prisoner.

Being ^miliar with the style of justice dealt out by that function-
ary, and knowing the impropriety of the charge, made for the purpose
of giving annoyance, I, of course, paid no attention to the summons.
Upon the day following two policemen entered the consulate, and,
upon a warrant issued by said court, arrested me in my private room,
wnile in the discharge of my official duties, and required my imme-
diate appearance at the magistrate's office. I requested to be permitted
to proceed thither without their attendance. One of them stated that
he was not at liberty to grant such permission, and, preceded by a
policeman, and followed by another, I was taken to the police station.

There I reiterated to Mr. Charles May, superintendent of police,
my request to have the policemen discharged, and to be allowed to go
alone to the magistrate's office. This was agiin refused, and after
having been detained a half an hour, attended as before, I was taken
to the magistrate's office, and, after another hour's delay, was placed
at the bar. After some time, the case was adjourned till Wednesday,
the 7th instant, and I was compelled to give bond in the sum of one
thousand dollars for my appearance on that day, which I did, protest-
ing and declaring that I did it under duress.

On the 3d instant the evidence of Captain Andrew Barston was
taken, and upon this occasion, at my request, I was permitted to
occupy a seat inside of the bar. On the 7th instant, after several
witnesves pro and con had been heard, the case was adjourned till
Tuesday the 13th instant, and I was required to extend my bond.

On the 13th instant I appeared and was bound over to appear at
the supreme court on the 29th, to answer the above charges. This
committal the magistrates even determined upon from the commence-
ment of the proceedings, however meagre the testimony might he.

It may be appropriate to this matter to state thnt, upon the 5th of
September, 1854, the " Joshua Bates," an American ship, then lying
in the harbor, had a man confined in irons on board by the captain,
with my concurrence, for mutiny. I was notified that the police were
about to take him from the ship by order of Mr. Hillier, who had
declared that neither the' consul nor captain had authority to put any
man in irons on board of a ship in the narbor, and that Mr. Bridges,
attorney general, had advised that suit should be brought against the
consul for such confinement; I accordingly wrote to Commodore Perry,
then in the harbor with a portion of the Japan squadron, the enclosed
letter I, and proceeded on board. The commodore sent an officer and

tioiwlc

6 CLAIM OF JAMES EEEKAN.

a file of men. The police having learned the state of affairs, and
American guns being abandant, did not board the veasels. About a
month afterwards Hon. B. G. McLane, then commissioner to China,
arrived from the north. The attorney general called upon him con-
cerning the matter. His excellency, after bearing all the facts from Mr.
Attorney Qeneral and myself, decided that I was right in claiming
sole jurisdiction over the internal order of American vessels in port,
and advised me, if interfered with in the performance of my dntieb by
the ofScials of Hong Kong, to remove my dsg to the China side of the
harbor, and then he would give me ample support and protection.
The attorney general, after some discussion, yielded the point, said
he did not wish that there should he any correspondence ooocerniog
the matter, and assured me that I shoald not be interfered with here-
after. How that promise has been kept the above facts show.

Another instance of violence, lately perpetrated, was the boarding,
detaining, and searching the American steamship "Biver Bird," as
she was about to leave on the morning of the 25th nltimo, under the
pretence of searching for Captain Nichols, whom they knew to be on
board of the United Btates ship " Powhatan," hnt^ in reality to add
another to the many insults to which the American flag has lately
been subjected. ■ I enclose an extract from the log-book ot the " River
Bird," marked J, and a letter from her captain detailing the circum-
stances.

The party who boarded the " Biver Bird" consisted of Mr. Oharles
May, superintendent of police, Mr. G-rand Pre, assistant superinten-
dent, and about thirty negroes, all armed.

The troubles that have lately occurred on board of American ships
in this harbor, arising from this official interference, the attending of
magistrates' courts, the procuring of testimony, and the many other
consequent annoyances, have occupied and still occupy so much of
my time and attention that I am unable at present to furnish a more
detailed account of the persecutions and indignities to which we have
been and are yet obliged to submit.

Having placed the above facts before your excellency, I now have
most earnestly to request that such steps will he taken by our govern-
ment as will not only prevent a recurrence of such conduct, but also
effect the removal of all the officials engaged in these outrages upon
oar citizens and insults to our flag.

The immediate recall of Sir John Bowring, governor of the colony,
and the removal of Charles B. Hillier, chief magistrate, and W. T.
Mitchell, assistant magistrate, and Charles May, suporintendent of
police, will at once settle all officions and illegal interference of British
magistrates with the internal arrangements of American vessels ; will
compel their successors to pay some regard to the comity of nations,
if not to the amenities of civilized life ; and, if it does not bring in-
demnity for the past, will insure " security for the future."

If prompt and energetic measnres are not now taken to punish the
audacity and arrogance of these violators of international law and the
comity of nations, I submit to your excellency that the American
name will, in this part of the world, become a by-word and a
reproach.

n,g:,.ndtyC00glc

CLAIM OF JAMES KEENAN. 7

At the request of the American shipmasters and other AmericaD
citizens here, cognizant of the facts, I beg to enclose herewith a letter
signed by them, marked K, and to reBpectfnlly request your early
attention to this matter. The anclosel letter marked L has just been
handed to me by Captain Nichols,

The proceedings of the court of justices I shall, if I can procure
copies of the testimony taken, &c., forward hy neit mail.

I have the honor to submit myself, very respectfully, your obedient
servant,

JAMES KEENAN,
United Staiea Consul.
Hon. W. L. Mabot,

Secretary of State, Washington CUy, D. 0.

TJimssa States Cohsulatb,

Song Kong, Odober 23, 1855.
8iB : On the 12th instant Captain Erastus y. Nichols, of the
American barque Reindeer, deposited in this consulate the register, crew
list, and articles of said vessel, and received my receipt for thu same.
On the ITth instant Captain Nichols called at the consulate, and le-
quested me to hare John Madison, the carpenter of said veHsel, arrested
and sent on board ; stating that he had deserted, and refused to return
to duty. I immediately wrote to Mr. May, superintendent of police
in this colony, the enclosed note, marked "A," to which I received no
answer, I snbseqneDtly called at the police station, in company with
Captain Nichols, and exhibited the barque's articles to Mr, May, and
assistant superintendent of police Mr, Grand Pre, and again requested
that the carpenter should be pieced on board. On the 20th instant
Captain Nichols informed me that John Madison, the carpenter, had
returned on board his vessel, and that snch was his conduct that it
became necessary to use force to restrain his violence. That he had
made an assault upon him, the captain, and that in consequence, he
and his officers had, after considerable difficulty, put him, the carpen-
ter, in irons ; that he was a dangerous man ; and that he, Captain
Nichols, had acted in self-defence in securing Madison ; and that upon
that day several armed men boarded the Reindeer, in the absence of
the captain, and without showing any warrant or authority released
Madison, and forcibly took him from said vessel ; and npon the mate
demanding to see the warrant or authority upon which they acted he
was informed by a person who appeared to be the leader of the party
that he, the leader, waa the authority ; and further, that if the mate
would interfere they would likewise take him from the vessel. Since
that time Madison has not been returned to the Reindeer. On the
22d instant Captain Nichols was summoned to appear before the petty
sessions on the 23d, to answer a charge ofassanlt and battery, made by
John Madison against him. On the 23d, in company with Captain
Nichols, I called at the cbit-f magistrate's court, and requested the
presiding magistrate, Mr. Hillier, to have Madison sent on board the

8 CLAIM OP XAUES EEENAN.

Beindeer ; and at the same time I exhibited to him the articles of the
veHsel, aod requested him to oheerve that the man Madisoo was boaod
to be dischargea in Kew Torh, upoa the retarn of the ressel to that port.

Upon his refiiaiDg to act upon my request I protested against his
interference in the matter, and as American coubuI at this port claimed
sole jnriedictioD in the case, as having occurred on board an American
vessel, and aa being a petty offence, for the correction of which and
like ofTeuces I, the representative of the United States government,
was placed in this port. I further protested against the right of any
foreign officials to board and search an American vessei withont the
permission and concurrence of the American authorities, and more
especially without exhibiting a warrant or authority of any kind for
ancb action, and extended my protest to a total denial of the jurisdic-
tion of the court in the case ; complained of a want of common
courtesy to me as the American i^epresentative, and desired the magis-
trate to note my protest before be would commence proceedings. In
the mean time Captain Nichols was retained a prisoner in the prisoners'
box. He then likewise protested against the jurisdiciiou of the
court and his detention, and declared that he was amenable to the
laws of his country if he had committed any offence.

The case was continued. Captain Nichols made no defence. Madi-
son upon his oath stated that be was bom in England ; and the
magistrate sentenced Captain Nichols to the payment of fifty dollars
fine to the Queen and twenty -five dollars compensation to Madison,

The magistrate then asked if the American consnl would be respon-
sible for the payment of the fine or the retarn of the prisoner if be
were permitted to leave the prisoners' box. I again protested against
the whole proceedings of the mob, the police, and the court, and
declared that the fine sbonld not be paid by my permission. After
the magistrate had retired to an adjoining room I followed and
ezpoBtulated with him, but withoat efiect. I then walked to the door
of the room, ofiered Captain Nichols my arm, and requested him to
walk to the consulate and dine with me. The rood lay past the jail
door. As we passed the door a policeman, who I have since be< n told
is called an "usher," laid hold of Captain Nichols by the arm. Not
wishing to have any di£Bculty with thepolicearonndns, most of whom
were negroes, I passed around behind Nichols, laid my hand on that
of the "usher," lifted it from that of Captain Nichols, and offered
to be responsible for bis return either in the evening or the next morn-
ing, if we were permitted to proceedj but not otherwise. This being
refused, and the police guard naving been vociferously called upon by
the "usher," I walked on with Mr. Nichols at a regular pace down
the street till I came to the Queen's road ; then I turned into the store
of De Silver & Co. , and placed Mr. Nichols upon a chair in the oonnt-
ing room ; and returning to the door again repeated to the "usher"
and four or five black and white policemen that if without molesta-
tion they would allow Nichols to proceed to my house I wonld be
responsible for his return, but not otherwise. This was refnsed. I
then told them to take him if they could. My intention was, if they
wonld withoat molestation allow us to proceed to my boose, that I
would then request an interview with the governor, and endeavor to
bare him interfere with the illegal proceedings of a mob catling them-

CUIH OP JAUES K£EHAN. 9

selves ft magietrate'e court and a police force. While Btanding at the
door I waa informed that Captain Nichols, in company with some
other American captains, had left for the United otates ateamship
Powhatan. I walked oat of the iroQt door, passed around the house
to the wharf, and saw Captain Nichols with others going in a boat
towards the Powhatan, followed hy a boat containing one white and
three or four black policemen.

I^ot into another boat and went on board the Powhatan, where I
found Captain Nichols in safety ; and I now, as American consul at
this port, have respectfully but earnestly to request that you will
afford Captain Nichols the protection due to an American citizen.

The following is a description of the carpenter as taken from the
articles of the "Reindeer:" Name, John Madison; station, carpenter ;
birthplace, NewYork; age, 21 years : height, 5 feet 6 inches. This man
shipped at New York at the rate of f26 per month, and received $50 in
advance ; to be discharged in New York upon the return of the vessel to
that city, but he is yet upon shore, and I shall again demand his
release. It is not necessary for me to state to yon thewell known and
clearly defined principle npon which I gronnd my action in the pro-
tection of the rights of my countrymen, a principle for which yon
yourself, in the war of 1812, gallantly fouglit and suffered, nor to
reiterate to you the well known violence and insolence to American
citizens of the petty officials of this colony. Of these you are well
aware, and it only remains for me to snbscribe myself,
Very respectfally, your obedient servant,

JAMES EEENAN,

United States Conmd.

Wk. J. MoCldskt,

Captain United States Navy,

Commanding U. 8. Steam FfigtUe " Powhatan."

A true copy.

0. S, 0., October 24, 1855, 5.10 p. m.
My Dbab. Sir : His excellency Sir John Bowring was desirons that
I should see yon on an important matter of business this af^rnoon,
and I have accordingly done myself the pleasure of calling at your
coDsuIate, but unfortunately have-not found you at home.

Will you have the kindness to give me a call at the government
offices to-morrow at as early an hoar after 10 a. m. as may be con-
venient to you ?

Or should any other time suit yon better, yon may command me,
but as the matter presses, I should wish it early.
Yours, very respectfully,

W. T. MERCER.
. Jamis Kebnan, EBq[. ,

United States Consul.
A tme copy. , - ,

I J. ^mf)^

10 CLAIM OF JAHE8 EEENAN.

.0.

C. 8. 0., October 25, 1855.

Mt Dbab Sib : I have reported oar interview of this morning to
hie excellencf Sir John Bowrinp:) who decidee withmuch rsgret that
the ordinsry legal coarse innst he followed, as your denial of the juris-
diction of the coart deprives as of a basis whereon to groand a
satisfactory arrangement.

I repeat what Ihave already stated to yon verbally, that I wish
much you had submitted and advised your countrymen to submit to
the decision of the magistrates, and then referred the matter to the
executive government.

Sir John Bowring is sorry that yoa conceive any want of coorteey
towards you from any of the public fanctionaries of this government,
and would undoubtedly take notice of such, if represented by yoa,
and prevent a recurrence of it.

I hope you will reconsider the view yon take of the matter, and
afford us some means of avoiding either oflioial correspondence or far-
ther procedure.

I am fully certain that in an American port no British official would
be justified by his superiors in making snch a claim of authority as
that which I understand to be advanced by you.

As I mentioned to you this morning, it is the desire no less than
the duty of every member of this government to tender you, in your
official position, all snch assistance as lies in his power, but I trnst
you will not consider us very exacting when we require all residents
on our territory to show due regard to the laws thereof.

I have written to Mr. May regarding your complaint that two notes
written by you had elicited no answer from him, and I enclose his
explanation for your perusal.

Believe me, my dear sir, very faithfully yours,

W. T- MERCER.

Jahbs Keenan, Esq.,

Coiwvlfar the United Slates of America.

A true copy.

J. KEENAN.

TJiTiTBD States Coksolatb,
ffmg Kong, October 26, 1855.
Mt Dkar Sib : At a late hour last evening I received year aoteof
yesterday, and beg leave to offer in excuse for not replying sooner the
multiplicity of my duties since that time.

I regret exceediogly that his excellency Sir John Bowring has
taken the view of the case expressed in your letter, but I must, in jos-
tioe to myself and to a time-honored principle of our government — a
principle heretofore generally respected by the functionaries of the

CLUU OF JAHB8 E££NAN. 11

Britisb goverameat, and always deemed by oar representatives and
people neceflsary to be sastained for the protection of our citizens
and the interests of our commeroe— 'respectfully reiterate my protest
against the rigbt of search of American vessels, and against the
authority of.any nation to take from an American ship an American
citizen belonging to such ship, without the permissioa or concurrence
of the American authorities, unless a complaint has been made that a
capital offence has been committed, and then only upon a warrant of
a proper character.

In conclusion permit me to express to you my acknowledgments
of the many acts of kindness and courte^ that I have received in my
official position from bis exoellency Sir John Bowriog and yourself,
and other superior officers of this colony, and to state that at all
times I have mode my espeoial obligation to exact from my country-
men here under my control a due regard and observance of the laws
of this colony.

Believe me, my dear air, very truly, your obedient servant,
JAMES KEENAN,
V. B. Oonmd.

W. T. Mebckb, Esq.,
Col. Beo., Hong Sijng.

A tme copy.

J. KEENAK.

No. 1.

UHirKD States Coksciatb,

Song Kong, October IT, 1866.
Dbar Sib : Will yon be kind enough to have John Madison, car-
itenter of the American barque " Beindeer," apprehended and put on
board said vessel, he being a deserter.
Yours, truly,

J. KEENAN,
U. B. Oongyl.
Per W. KNAPP, Js.
0. Mat, Esq., &c., &c.

A true copy.

United Statb Consulatb,

Hong Kong, October 66, 1855.
Mt Dear Sib : I have again respectfully to request that you will
have the goodness to cause the man John Madison, carpenter of the
American barque " Reindeer," to be arrested and put on board that
vessel. f-- I

n,g>-ndtyL.OOglC

12 CLAIM OP JAUES KEENAN.

Below is a description of the man as taken from barque's articles ;
Joha Madison ; atatioo, carpenter ; birthplace, New York ; age,
21 jeara ; height, 5 feet 6 inch^. This maa shipped in Neir York
St the rate of $25 per month, aod received an advance of &ftj dollars.
By the articles of the vessel, he is to be discharged in New York upon
the return of the " Reindeer" to that city.
I remain, sir, Terr respectfallr,

JAMES KEENAN,
U. S. Consul.
C. Mat, Esq.,

Supt. of Polioe, Bong Kmg.

A troe copy.

Ko. 3.

POUCE DSPARTKBITT,
Song &mg, October 26, 1856.

Ht Dxab Snt : I received your letter of this morning's date, re-
qnestiDg that a seaman named " Madison," of the barque " Reindeer,"
who has deserted from that vessel, may be apprehended and delivered
on board.

In compliance with yoar request I have caused the apprehension of
" Madison," who, however, revises to return to his duty on board the
" Reindeer ;" he will consequently appear at the police court, at 11
o'clock to-morrow morning, to answer to the charge made against him.

I beg that you will at that time have in attendance, at the coart,
the persons preferring the charge.

I have the honor to remain, my dear sir, very faithfully and obe-
diently yours.

Jambs Keeetak, Esq.,

U. B. Cowml.

A true copy.

0. MAY,
Bufa-iviendetU of Police.

No. 4.

D. AOITILAR StBBBT,

November 6, 1865.
Ut Dear Sib: On yoar applying to the magistrate, W. H. Mitchell,
esq., to have "Madison" sent on board the " Reindeer," he beiog
away from his duty, evidence was taken, and the following are Mr.
Mitchell's remarks on dismissing the cose :

n,g:,.-,.dtyC00glc

CLAIM OF JAUES EEEKAH 13

" The cage is dismissed. I have no power to give 70a a disofaarf^e
from the ship ; but, after the treatment yon have received, I woald
atrongly advise you not to retiirn tothe ship."
Tours, respectfiilly,

Hon. Jahn Keenam, '.
A true copy.

G. COOPER TURNER,
.Forney fir the ^'Beindeer."

J. EEENAN.

CoLOHiAi Shcretaby's Office, Viotoma,

Eong Kong, October 29, 1855.
Sir : His excellency the governor has received year letter of this
day's date, in which yon request him to order the delivery of John
Hadieon either onboard the " Reindeer" or the United States steamer
" Powhatan," on the ground that he was forcibly and illegally re-
moved.

His excellency is advised that no illegality attaches to the proceed-
ings taken in the case of the said John Madison, and therefore regrets
that he cannot comply with your request.

Yon also advise his excellency that neither Captain McClaney nor
Captain Nichols authorized or was cognizant of the payment of the fine
inflicted upon Captain Nichols. His excellency bss only to state that
the fine was paid in the usual form into court. Your protest against
its payment will be recorded, and reported to her Majesty's govern-
ment.

I have the honor to be, sir, your most obedient servant,
W. T. MERCER,

Colonial Secretary.
Jahbs Eeenan, Esq.,

United States Consul.
A true copy. J. KEENAN.

Mt Dear Consul : Captain Nichols is quite ill with dysentery, and as
we will leave in three or four days, I desire to make the necessary
arrangements for his safety and comfort.

Will you please take the necessary steps in the matter, and let me
know when he can be sent on shore. His condition is critical— very.
Truly, yours,

CHA9. D. MAXWELL.
Jambs Khenan, Esq.,

United Slates Oonsvl, Hong Kong.
A true copy.

J. J

CLiltS OF JAMES EBEITAN

Haa M^jssTT'a Ship " Piqtjb,"

EoTtg Kong, November 1, 1855,
Captain Sir Frederick W. E. Nicholeon, Bart., presents his compli-
ments to the United States consal, and hegs to inform him that
the man John Jackson cannot be discharged from her Majesty's
ship Pique without an order from the commander-in-chief. Sir
Frederick will lay the circamstances of the case before his excellencj'
as soon as he can.
A true copy.

J. KEENAN.

Untekd Btatbb Conbulatk,

Hoag Kong, September 5, 1864.
Snt : I hare just been informed that the British authorities intend
to remove from the American ship ' ' Joshaa Bates' ' a seaman belong-
ing to that TesBoI, who was confined by my orders.

I reqaest that yon send on board immediately a guard to prevent
saoh a proceeding.

Though ill able to leave my room, I am now going on board that
vessel.
I am, sir, very respectfully, your obedient servant,

JAMES KEENAN,
United States Goiwid.
Commodore M. C. Pebst,

U. 8. 8. F. " Miaaiseippi."

I hereby certify that the above is a true copy of the original.
JAMES KEENAN,
United Batea Conttd.

Steam BB " RivBR Bisd,"
Lying in Song Kong harbor, Thursday, Odaber 26, 1865,

While on the point of starting on our regular trip to Canton, at
the usual hour, 8. a m., this morniog, my attention was attracted to
a number of armed men on board ot the vessel pushing backwards
and forwards among the passengers, and creating considerable con-
fusion. The first officer asked several of tbem their business, and
was at length informed by a person who appeared commander of the
party that they sought one Captain Nichols, upon which the first

CLAIM OF JAHE8 EEENAN. 15

officer told him he was not aware of any anch person heiog oo hoard,
and after protesting against the violence implied in the movements,
referred him to Captain De Vol, the master, who assured him no such
person was on hoard the vessel, and at the same time informed him
ne would find the object of his search on board the ITnited States
steamer "Powhatan," remonstrating also with the leader of the
party,_and ordering him to send all armed men out of the vessel,
requiring him also to show some authority for his presence at all ;
while this conversation was going on, a portion of the party went
forward, and compelled the crew to desist from heaving up the anchor.
Having remained about ten minutes longer, apparently at a loss
what to do, bnt nevertheless forcibly detaining the vessel by ordering
the crew from the windlass, they withdrew in the same confused and
irregular way they came on board. The vessel then proceeded on her
voyage.

HONQ EONG, CHINi,,

Octofccr 27, 1855.

The undersigned, American citizens and masters of American ships
in Hong Kong and Chinese waters, being present and coKnizant of the
occurrence of the 23d of October, between Captain E. W. Nichols, of
the Americau barque " Reindeer," and the police court of Hong Kong,
in its action against the said Captain E. W. Nichols, in the matter of
forcibly and without warrant taking from confinement a prisoner
named John Hadison, a seaman of the " Beindeer," placed as such for
" desertion and mutinous conduct" on board of the " Beindeer," by
Captain E. W. Nichols. The said Madison, being one of the crew of
the " Reindeer," and being in our opinion under the " laws and rega-
lations" of the tJnited States for the government of its marine, was
not amenable to any English jurisdiction, but legally under the com-
mand of the lawful captain of the said ship, and therefore illegally and
with outrage taken by force from the ship. Therefore, we hereby
tender to James Keenan, the United States conanl for this government,
our cordial approval of his conduct in placing the said Captain E. W.
Nichols in safety on board of the United States steam frigate Powhatan
when threatened with fine and imprisonment in a common jail by the
police court, upon what we consider a most unwarrantable assumption
of power.

We take this opportunity of calling, through our consul, the earnest
attention of'onr government" to this matter, important in many
ways to the interest and proper discipline of the mercantile marine of
the United States.

A brief review of the case may be important.

An American ship arrives in the harbor of Hong Kong, in the lawful
pursuit of her business ; one of her crew, lawfully shipped in the United
States, signing tbe " articles" to make the voyage and return to the
United States, deserts the vessel, and, after an absence of some days,

tioiwlc

16 CLAIM OF JAUES KESHAN.

comes OD board, bebaTea in a mntinoaa and ontrageoas matmer towards
his superior officera, is placed in irons, and necessarily, from his resut-
ance to tbe proper authorities, treated with severity.

Suddenly, in the absence of the captain, an armed police force boards
the ship, takes from confinement the priaoner spoken of, and, without
exhibiting "warrant or authority," conveys him on shore. Then a
warrant is isaued for the captain for " aasaalt and battery" against this
rescued prisoner ; a suit instituted ; and jadgment under a protest ot
the United States consul giveu, sentencing the captain to pay $50 to
the Queen and $25 to the plaintiff, or the defendant to go to jwl.
Under these circumstances tne United States conaul places the captun
under the protection of the United States steam frigate Powhatan, and
we cordially support him in his course of action.

We consider that the American principle of the denial of the
"right of search," and that the American flag and American lav
protects the American citizen, when on just and lawful occupation,
has been ably and patriotically carried out by the United States
consul in this matter.

We also solemnly and firmly protest against the assamption of a
foreign power, which assumes to take from and protects the subordinate
of an American ship against his superior, when that superior simply
performs hia duty in disciplining his ship and the United States laws,
and protest against a foreign power setting at naught the laws of the
United States and assuming to control the internal regulatioas of an
American ship ; and we lespectfdlly appeal to our couatry to protect
ua in so serious a position.

We are, very truly, your friends and countrymen.

"E. Spicer, jr., master ship Samnel Willetts.

G«orge Downer, master snip Stephen Baldwin.

P. H. De Vol, master steamer Biver Bird.

J. W. Paul, late master steamer Biver Bird.

Thomas Worth, late maater ship Cheeseborongh.

Charles Emeraon, late master ahip John Gossller.

H. N. Osgood, maater ship Swordfish.

Bobert R. Carter, acting lieutenant United States steamship Pow-
hatan.

George K. Sands, "Sew York.

Z. C. Biahop, Washington Territory.

George Sewell, chief engineer United States steamship Powhatan.

J. W. Bennett, acting lieutenant United States steamship Pow-
hatan.

Albert Schriver, assistant surgeon United States steamship Pow-
hatan.

Lieutenant 0. S. Glisson, commanding United States ship J. P.
Kennedy.

Robert De Silver, United States naval storekeeper.

William Gollagan, ship Boston Light.

Willington £. Ayers, coast pilot.

Henry Wilson, schooner Bustamente.

n,g:,.-ndtyC00glc

CLAIM OF JAUES EEEtUH.

Glias Davia, jr., barbae Snrah H. Snow,

8. H. Bagleaton, editor Koppisch, of Salem.

George P. DeSilrer.

Andrew Barstow, ahip Laatao.

Thomas C. Dudley, United Stateg steamaliip Powhatan.

L. B. Kinney, barque Burnham.

George Gideon, United States steamship Powhatan.

Mortimer Kellogg, United States steamship Powhatan.

W. H. Porter, United States steamship Powhatan,

William Knap, jr., Boston, Massachusetts.

Samael H. Cnshman, Portsmoath, liew Hampshire.

J. W. Alwood.

E. F. Cnnniogham, Bel&st, Maine.

George A. Taoer, Kew Bedford, Miassachosetts.

WUliam Bobert Tates, Korfolk, Yirginia.

John Campbell, Michigan.

Thomas B. Schaeffer, Baltimore, Maryland.

W. K. Cresey, late master steamer Qneen.

Henry Coleman, late master ship Honqna.

Francis E. Young, late master ship Sarah.

E. Scadder, late master ship Ellen Foster.
J. G. Joyce, late master ship Lookoot.
If. Thompson, late master ship Helena.
J. W. Marther, master ship Nightingale.
J. P. Cook, United States marshal.
Henry C. Endicott, Massachosetts.

B. B. Lonry, lieutenant United States steamship Powhatan.

F. Cady, New York.

Samuel W. Pike, niaster ship Meteor.

JlHsa KsKKAK, Esq.,

U, S. Oonnil at Song Kong

HoKQ KoiTG, Oddbar 13, 1866.

Deab Sir : In reply to your request to furnish von with a
of the late proceedings of the officials of Hong Kong in the rescue of
a prisoner from the " Reindeer," &o., I have to state that the barque
" Reindeer" arrived in this port, under my command, on the 12th of
October, 1865, and on the 14th John Madison, the carpenter, came
to me and ashed for liberty to go on shore, which was granted. He
returned on board the following day and went to work. He remained
on board till Tuesday, the 16th, at 3 p. m., when he left the " Rein-
deer," without permission or the knowledge of the chief officer or
myself, and went on shore. He had shipped in Kew York as car-
penter and seaman of the harctne to make the voyage, and to be dis-
charged on his return to New York.

Madison having refused to retorn to the " Reindeer," I requested
H. Ex. Doc. 113 2

18 CLAIM OF JAUE8 KEENAV.

yott to have him sent on board. On the day following (Friday) he
came on hoard, bat refused to go to work, saying he did not come on
board to go to work. Being on shore myself, the chief officer, Mr.
Day, pnt him in irons for using insolent langnaee and refusing to
work, and on my return Mr. Day told me he had been obliged to pnt
Madison in irons in order to maintain peace and order on tward the
vessel. I then told the mate to let Uadison remain till morning.
At 6 o'clock on the following day Madison was released and told to
retorn to his dnty, bnt he was insolent, and swore he would not do
any more work on board the vessel. I then told him if he did not
retura to his duty I shonid put him in irons. He swore he would
kill me or the first man that attempted to put hands on him, and
then struck at me with his fist, but was prevented from striking me
by the chief officer. Mr. Day and myself were obliged to resort to
force to restrain him, and finally secured him and pnt him in irons.
I then went on shore on business, and on my return to the " Beio-
deer" I fonnd a body of men, calling themselves policemen, had been
on board, and without authority from either yon or myself had imme-
diately released the mutineer, whom I had confined for an assault on
my person. They (the police) forcibly took him from confinement,
earned him on shore, ana set him at large.

I immediately after my return to the barqne, being informed of
what had occurred, went to jour consulate, stated the above facts,
and was told by you that nothing could he done that day, it being

fast the magistrate's office bonrs. On Monday, the 22d of October,
again weut to your consulate, and from thence with you to the
police office, where no information could be obtained. We next pro-
ceeded to the magistrate's office, where the man was found and sent
to the harbor master's office by Superintendent May. On our arrival
at the harbor master's you demanded the man Madison should be aeat
on board, or else the privilege of dealing with the case yourself. This
was refused by the harbor master, ana he (Madison) received m note
from the harbor master to the chief magistrate, and at 6 p. m. a sum-
mons was served on me to appear before Mr. Eillier, or such justice of
the peace as should sit on the following day, Tuesday, October 23.
I appeared at 10 a. m. at the United States consulate, and told you I
wisned to give myself in yonr charge, and was willing to answer any
diarge of John Madison or any oi the crew of the "Reindeer," but
did not consider myself responsible to a British colonial conrt for the
discipline of an American ship. Yon thought it best for me to proceed
with you to Mr. Hillier's conrt and explain the circumstances. On
our arrival at that functionary's o£Sce I was forcibly rescued ftom
Tonr custody and placed in the prisoners' box. Yon then told Mr.
Hillier, the magistrate, that you had sole jurisdiction over American
vessels, and protested against the whole proceedings. Notwithstand-
ing both you and I protested against the whole proceedings, and I
requested to leave the court, which was refused by Mr. Hillier, the
court proceeded to try the case. I made no defence, declaring that
Mr. Hillier had no jurisdiction over me, and that I was ready and
willing to be tried before the American consul, who I claimed bad
entire jurisdiction over American ships. Mr, Hillier proceeded with

t!o(Wlc

CLAIM OF JAHES K£ENiN. 19

the case, and after examining two or three witnesses the magistrate
adjourned for a few moments, when he retarned and seDtenced me to
one month's imprisonment, or a fine of $50 to the Queen and |26
to Madison. I declared my intentions not to comply with this sen-
tence. After yoar interview with Mr, Hillier, and on his return to
the court room, I was asked hy the usher what I intended to do. I
replied I had come to the court in the consul's custody, and had no
business with the court, nor it with me. Tou then invited me to dine
with yon, which invitation I accepted, and we left the court room.
Soon after we were stopped by the usher. You told him that if we
were allowed to proceed unmolested to your house yon would be
responsihle for my return, but not otherwise. The usher returned
for more force, and you and myself proceeded to Messrs. De Silver &
Co.'s store, where after a few minutes I was advised by Captain
Spicer, of ship "Samuel Willetta," and Captain Barstow, of ship
" Lantao," and Captain Paul, to go on board the United States steam
frigate "Powhatan," and claim protection from Captain McCluney.
I proceeded ou board, followed by the usher and four or five police
officers to the " Powhatan's" gangway. You came off shortly after-
wards, and requested Captain McCluney to give me that protection
which was due to an American citizen under the circumstances. This
he promptly offered to do, and truly did, for which, with heartfelt sin-
cerity, I thank both you and bim. I am now ill. I have lost com-
mand of my ship. I am in a strange laud, but I shall not regret my
misfortunes if this occurrence will, as I hope it will, lead to the bum-
bling of the impudence of my persecutors by our government, ao
impodeDce to which our country has too long submitted.

Receive my heartfelt regards, and believe me ever truly your friend,
EUASTDS W. NICHOLS.

Jaubs Eeenan, Esq.,

United States Consul, Hong Kong.

The above is a true copy of the original on file in mr office.
JAMES KEENAN,

United Statea Consul.

Uotted Statbs Conbdlate,

Hong Kong, 0<aober 29, 1855.

Sir: I beg leave respectfully to notify your excellency that I have
repeatedly requested the minor officials of this colony, both verbally
and by letter, fo have John Madison, the carpenter of the American
barque " Reindeer," who was forcibly and illegally taken from that
vessel upon the 20th instant, returned^ but without success ; and I
now, as the representative of the United States at port, reapectfally
but earnestly request your excellency to have John Madison placed on
board the " Reindeer," whence he was taken, or delivered on board
the United S ates steamer " Powhattan" to Captain McCluney.

I regret the necessity I am under to trouble your ezcelleocy la this

ii,Cooc^lc

20 CI.A1H OF JA.UE8 KEENAN.

matter, but, deepBiring of aesistance from those whose datj it ia to
reader me aid, I apply to yon as a laat resort.

I likewise beg permission to state, that I have heett informed that
the fine imposed npon Captain Erastus N, Nichols, master of the
American mrqae "Reindeer," has been paid; by whom it has been
paid I have not learned, bnt I am anthorized by Captain McClaney
and Captain Nichols to declare that neither of these gentlemen
authorized nor were cognizant of its payment.

Again'it the payment of that fine, with all deference to the opinion
of your excellency and the other officials of this colony, as the repre-
sentative of my oonntry in this port, I always have and still do
protest.

I remain, my dear sir, with much consideration, yonr obedient
servant,

JAMES KEENAN,

UniUd 8tata Consul.

His Excellency Sir John Bowanie,

Gcnemar of Song Kong.

A tme copy.

UnrnsD Statos Cohsclatb,

Song Kong, October 30, 1855.
Before me, James Keenan, United States consul for the port of
Bong Kone, personally appeared Charles Bood Day, mate of the
American barque "Reindeer," who, npon his solemn oath, doth
depose and say: That upon the 19th instant John Madison, carpenter
of the barqae, aiter having been several days on shore, returned apon
board, and upon being requested to work refused to do so ; he, (the
mate,) and not the captain, put Madison in irons, where he remained
tilt next morning ; that the captain (Nichols) was not on board at the
time the carpenter was pat in irons ; that on the next morning, at six
o'clock, he took him out of irons and told him to turn to, bnt he re-
fused, and then struck at Captain Nichols, and he (the mate) oaaght
his hand and knocked the carpenter down, and then Captain Nichols
assisted me to pat him in irons ; that the carpenter fought all he
could, and that, though he (the mate) struck him, he did nok see
Nichols strike him ; that the force used to put him in irons was not
greater than necessary to overcome him, and that after he had been
put in irons neither Captain Nichols nor any one else struck him ;
after he was in irons, that Captain Nichols then went on shore about
8^ o'clock a. m., and that about 4 o'clock on the same day six men,
apparently policemen, went on board the vessel and immediately re-
leased John Madison during the absence of the captain ; that he (the
mate) asked them what was their authority for releasing Madison, and
that one who appeared to be the leader declared that he (the leader)
was the authority, and that these men then took Madison with them,

tioiwlc

CLAIU OF JAUES KEENAN. 21

and, before leaving, one of the men who took him declared that if the
mate interfered they would take me too ; when Captain MiohoLa re-
tamed, 80oa after that, he reported to him the above facta ; that
Captun Nichols then left, and told the boatmen to take him to the
American conanl'a; and that the man Hadieon is a tronblesome and
vidoDB man, and caused the vessel and its oflSoers much trouble while
we were on oar passage from New York to this port.

CHAB. B. DAY.

Sworn and aubecribed before me, at mj consalate, on the day and
date above written. As witness my hand and seal of this oonsnlate,
JAUES KEENAN,

United Btatea Oonevi.

HoKa Eoita, November 10, 1855.
I hereby certify that the foregoing is a true copy of the original on
file in my o£5ce. As witness my hand and the seal of this consnlate
the day and date above written.

JAUES KEENAN,

United SUOea Connd.

"PeIKHDOF CHIHA" OfFIOB,

Bong Kong, November 5, 1855.

Dua Sib : I beg to acknowledge yonr note of the 3d instant, in
which you ask me to inform you npon what anthority I made my
statement in the Friend <^ Ohina of the 27th ultimo, regarding the
application of the carpenter of the Beindear rUadisonl to be enrolled
in OUT police prior to nis being taken out of irons on ooard.

In reply, I nave to inform yoD that I had it direct from the assistant
superintendent of police, Mr. A. Qrandpre. My conversation with
him came about in this wise : I had heard all that Captain Nichols
and Mr. Stace (Madison's lawyer) knew of the trouble, out could not
find out in what way our authorities became certified of Madison's
confiaement before sending off to release him. I was aware that you
believed, as it proved, that he had the assistance of one or other of the
men who had been discharged; but notwithstanding that I wished to
satisfy myself from the party to whom the information was given, Mr.
Grandpre readily enlightened me. He said Madison had called on
him, as I understood, on Friday, the 19th ultimo, stating that be was
a native of Sunderland, England, and was desirous of entering the
police force. Finding that ne belonged to a ship in the harbor, he
told bim to get his discharge, and then the application should be con-
sidered. To this Madison responded that you refused bim a discharge,
and be was afraid that if be went on board he would he flogged and
put in irons. Mr. Qrandpre then told him he believed such an
offence as confining a man on board ship in harbor would be taken
notice of by our authorities ; and that if he did go on board and was

i,C.ooglc

22 CL4IU OF JA»ES EEENAN.

confined, and would make complaint b^ letter or any other way, he
would tell one of tbe magistrates of it and have him hroaght on shore.
That return to his ship he mnst, or be would have to be sent on board
ae a deserter. Madison accordingly went od board, and on the Satur-
day, as I understand, two of the " Bevadeer'a" discharged men came
to the police ofEce and informed of Madison being in irons ; upon
which Mr. Qraudpre notified the assistant magistrate and Sheriff
Mitchell, who directed him to go on board and release him. To Mr.
G's application for a warrant, he was told the Qniform of the police
was sufficient warrant. Finally, Mr. Q-randpre wrote his name in a
book, at the mate's request, as acknowledgment of Madison's being
received ; and at halfpast four p. m. Madison was hroaght on shore,
and, by direction of the assistant magistrate, placed with boarding
hoQse keeper Mitchell until his case could be heard.

Snch, to the best of my remembrance, are the particulars yoo ask
for, and which, no doubt, Mr. Grandpre will readily confirm if ap
plied to.

I am, dear air, respectfally yoors,

W. TARRANT.

Jaubs Kkehait, Esq.,

United States Consul.

Sosa KoNO, November 9, 1856.
I hereby certify that the foregoing is a true copy of the original on
r 1 file in my office. As witness my hand and the seal of this
'- ' J consulate.

JAMES EEENAN,
U.S. ConsvL

Mr. Keenan to Mr. Marcy.

No. 26.] TJnitbd States Oonsitlatr,

Song Kong, Decemher 14, 1855.
Sir : Referring your excellency to my despatch of the I4th nltimo,
No. 22, I have to continue by stating that, on the 29th ultimo, in ac-
cordance with the requirements of my bond, I appeared at the supreme
court with my witnesses, to answer the charges of assault and forcible
rescue of Captain Nichols from 'the hands of James Martin, bat was
informed that, in consequence of the ill health of the judge, I wonld
have to renew my bond, and at my request a commissioner was ap-
pointed to take the evidence of my witnesses, Captains Spicer, Faiu,
Osgood, and Joyce. My attorney having since procured certified copies
of the testimony on that occasion, and also that taken at the magis-
trate's court on behalf of the crown, I enclose copies of the whole of it,
together with the testimony of Captain Andrew Barstow, previoDsly
taken, from all of which you can form an idea of the propriety of ttiA
course pursued by the officials of this colony.

ii,Cooglc

CLAIU OF JAUE8 KEENAN. 23

Martin, without a warrant or even the police uniform, or the tinsel
crown Qpon his drese, which the authorities here declare a sufficient
warrant for the arrest of any person at any time or place, having
attempted to imprison Captain Nichols, and having failed in that at-
tempt, thought to exculpate himself by making the strongest possible
report to the incensed magistracy. This he did withont supposing that
he would be called upon to be sworn to that statement ; hut, driven by
infiiriated functionaries to the witness stand, he, with notes of that
statement in his hand, made oath to the most palpable misreprenenta-
tions ; and the Chinaman and the negro Uussulmen who were brought
to sustain him are all lackeys of the magistrates' court ; and although
each felt it to be for his interest, and indeed his duty, to carry cut the
wishes of the magistrates, and support as far as lay in their power the
story of the usher, yet they failed to corroborate a single statement of
his, and he is contradicted by all my witnesses in most every particu-
lar.

On account of the assumption of authority of the Hong Kongmagis-
trates over American vess^ in this port, the sailors on our vessels,
even those newly shipped and just in receipt of their two months' ad-
vance, have been led to suppose that if by mutinons and outrageous
conduct they can get themselves in irons, they will be released and
permitted to ship on other vessels. This has occasioned many difficul-
ties on onr ships, and desertions are of frequent occurrence. Those
who desert ana reach the shore it would be misspent time and trouble
to apply for, and afford ofBcials of the colony an opportunity to reiterate
insults. But, having been notified by Captain Cbarles A. McLellan,
ot the American ship " Ocean Spray," that Charles Campbell, alias

, one of his men, had deserted, and had been shipped on board

of her Majesty's ship " Kankin," I addressed Admiral Sir Charles
Stirling the enclosed letter marked 1, and received in reply the letter
marked 2. A day or two afterwards an officer of her Majesty's navy
called at the consulate with the man Campbell ; I exhibited to him the
ship's papers having the name of Campoell thereon, and Campbell
acknowledged himself to he the man. As I had no police force or men
hy whom I could send him in charge to his ship, I requested the officer
to take him either on board the " Ocean Spray" or the United States
ship " Macedonian." This he promised to do; but two days afterwards
I was notified that Campbell had not been placed on board of either
vessel. I then addressed the admiral the letter marked 3, and received
in answer that marked 4. This deserter, like Madison and Jackson,
is still at large, and I presume may be considered under British pro-
tection.

I enclose you the letter of Dr. Maxwell, marked A, in answer to
one of mine requesting him to inform me of the cause and extent of
the illness of Captain Nichols, and also a certificate of Dr. Harland
on the same subject, marked B.

The deposition of Captain Nichols, marked C, I enclose also, to
show that the fines to the Queen and Madison, imposed on him, were
not paid with his concurrence or knowledge. This fine, I learn, was
paid by G. C. Turner, esq , the attorney of Kdward Oassett, a man
who calls himself the agent and part owner of the ship Beindeer.

n,g:,.-,.dtyC00glc

24 CLAIM OF JAMES EEESiS,

Mr. Tnraer informed me that Mr. Qaasett had faraished him with
the money to pay the fioe. Commodore Ahhot has kindly faraiahed
me with a copy of a letter from Ur. Bridges, attorney general, to
Sir John Bowring, in relation to a conTersation had between him and
Mr. UcLane, United States commissioner to China, and myself, as
referred to in my despatch Ko. 22, in relation to lite matter of the
mutiny on board of the Joshaa Bates. Aa this docnment has been
forwarded to the Secretary of the Navy, and as Mr. Bridges therein
has contradicted the statement made in my despatch No. 22 conoem-
ing the ooDversation then had relstive to the assumption of the anthori-
ties of this colony to exercise jnrisdiction OTer American ships in the
harbor, I beg leave to refer yon to Mr. MoLane himself, satisfied that
he will remember his decided opinion and adrice given on that occa-
sion, and also the promise of the attorney general not to allow any
interference with me in my jadicial fdnctioDB thereafter.

This growing hostility of English officials to onr oonntrymen , I am
informed, is not of late merely confined to Hong Kong. From other
ports in the East under their control we hear of similar complaint*

This British gangrene, produced by supposed American Bassiaa
proclivity, must meet with a speedy remedy, or the whole vital system
of international law between the two conntries will be affected.

Having plaoed this matter before your excellency, I await the action
of government, satisfied that, as no British law or colonial ordinance
has been infringed by any American official at this port, and that mr
coarse of action was what was required of me as United States coasal,
under the circumstances, and that these insults to onr fiag and viola-
tions of the rights of onr citizens will not be tolerated, ample repara-
tion will be demanded, and fnture propriety of action of British
magistrates required, and I respectfully request your early advice as
to the course to pursue for the mture.

I have likewise to request that as these proceedings have, in the
procuring the services of attorneys and barristers and the attendance
of witness at court, and in many incidental ways subjected me to great
expense, much loss of time, great trouble, and many indignities, your
excellency will demand a pecuniary remuneration equivalent thereto
from the British government.

A^r the sitting of the court upon the case of the rescue of Captain
Nichols, I shall notify yon of its decision.

I am, sir, very respectfiilly, your obedient servant,

JAMES KEEKAN,
United Statea C^msitl.

Hon. W. L. Marct,

Secretary <^8taU, Washington CUy, D. 0.

No. 1.

Uritkd States CoirsDi.ATB,
Hong Emg, November 20, 186S.
Sir ; I beg leave to inform your excellency that Captain MoLellan,
of the American ship Ocean Spray, has notified me of the desertion of

CLim OF JIUES KEEMAM. 25

Charles Campbell, a aeanun of the md ship, and that he isatpreteat
on board of her Majee^'s Bhip Nankin.

I have reepectfnllj to request that voar excelleccj vill hare the
man Campbell retorned on board of the Ooeoa Spray or sent to the
United States ship Mooedonian.

Enclosed please find hia description, as taken from the "articles"
of the Ocean Spray.

I am, dear sir, rerr respectfnUr, roar obedient serrant,

JAMES KEENAN,
United States Conavi.
His Excdlen<7 Bear Admiral Sir Jakbs Snsitne,

Commander-m-dti^ q^ Aer Mmetty'a Foraa,

Eatt India, Ohma, and Japa* Smb.

A true copy.

Ubitsd Statk Cosbulatb,

Hong Kong, Novtmber 20, 1866.

I, James Keenan, United States oonsnl for the port of Hong Kong,
hereby certify that the following is a correot description of the man
Charles Campbell, a deserter from the American ship Ocean Spray, as
taken from the " articles" of said ship.

" Kame, Charles Campbell; station, seaman; age, twenty-three
years; height, fire feet eight inches; place of birth. United States of
America; wages per month, £2 lOs; advanced wages, £5 10«.; oom-
plezion, light." This man shipped at "Liverpool to proceed to Hong
Kong, or one or more ports in the China seas, and back to a port of
delivery in Europe, as the master may direct. Term of servitude not
to exceed eighteen calendar months."

Witness my band and the seal of this oonsniato, this 20th day of
r_ - T November, 1866.
L^ '-J JAMES KEENAU,

Ihited Statea Oonnd.

A true copy.

JAMES KEENAN,

United Statea Coaaul.

No. 2.

HxB BRTEAinno Majbstt's Ship Wimohksteb,

Jt Bang Kong, November 20, 1855.

Sir : I have the honor to acknowledge the receipt of your notice of

the desertion of Charles Campbell, of the American ship Ocean Spray,

and of his having entered on board her Mtyesty's ship Nankin. I nave

sent for the captain of the Nankin for the purpose of ascertatnins from

26 CLAm OF JAUE9 EEEKAN.

him if the aforesaid Charles Campbell, as described in your certificate,
be on board the Nankin, and if so, I will give directions for his imme-
diate discbarge.
I have the honor to be, sir, yonr most obedient, bamble aerrant,
J. STIRLINO,
Eear Admiral and Gommtmder-in-chitf.
Jahbs KsENAif, Esq.,

United States GoaatU, Song Kong.

A true copy.

JAHES KEENAN,

United Slatea Oonavi. •

No. 3.

United SiATh^ Coksulate,

Eong Kong, November 23, 1856.
Sib : I presiune it to be but proper to notify your excellency that I
had the honor of being vtuted upon by an officer of her Brittanic
M^esty's navy upon the 20th instant, who, having Charles Campbell,
the deserter from the Americsn ship Ocean Spray in bis charge, re-
quested to be informed what to do with him.

It being out of my power to place bim on board of bis ship, I re-
quested the gentieman naring him in charge to have the hiadsess to
Slaoe him on board the ship Ocean Spray or the United States ship
[acedonian. This he promised to do; but I hare this morning been
notified by Captain McLellan that the man has not yet been received
on either ship.

I have the honor to remain, sir, youi most obedient servant,
JAHES EEENAN,

Uaited States Consul.
His Excellency Sir Jambs SnKUiia, ^.,

Bear Admiral and Commandtr-in-chi^.

A true copy.

JAMES KEENAN,

United Slates Consul.

No. 4.

Hrr Majbsti's Ship Naiteir,

Hong Kong, November 24, 1855.
Sib : His excellency Bear Admiral Sir James Stirling having de-
sired me to reply to your letter of to-day respecting Charks Campbell,
a deserter from the American ship " Ooean Spray," who entered on
board her Majesty's ship under my oommand, without my being aware
he had so deserted, I beg to acquaint you that be was discharged from

CLAIM OF JAMES EEENAN. 27

this ship when I was informed by the Ueatenant wlio took hitn to yanr
office that he was the man claimed by the captain of the American
ship, and having been discharged, I had no rarther authority over
him; and he left the ship in the same way he came to her, namely, in
a shore boat; but I did take the tronble to send a lieutenant to the
Ocean Spray to acquaint the master that the man was discharged, and
had gone on shore.

I Have the honor to be, sir, your most obedient servant,

BUTH STEWART,
CaptaiH.
jAMm EssNAR, Esq.,

United Statea Qmul, Soag Song.

A true copy.

JAMES KEENAN,

United Statea Conttd.

Uhitbd Statsb Ship " Powhatah,"

Singapore, November 11, 1865.

Dbab Sib : Your communication of the 29th ultimo was received on
the eve of onr departure for home, and at a time jrhen my every
moment was occupied in preparing for this event ; it was consequently
entirely out of my power, before leaving HoHg Eong, to give you in
writing my opiniou of Captain Nichols' condition, the probable dura-
tion and result of his illness, and the circumstances connected with it.

The day after that on which Captain Nichols took refuge on board
of this ship, ho complained to me of feeling uuwell, and stated that
on his passage over from Bio he had suffered severely from diarrhea;
I directed some mild remedy, and advised rest and quiet. On the fol-
lowing day be was better ; out having seen a Dumber of friends, and
received, as 1 understood, unpleasant information from Mr. G-assett,
a decided change for the worse took place, and his disease assumed a
dysenteric character.

He continued, however, to receive his friends, and to reply to notes
OD tho subject of his difficulties, until perceiving his attack was likely
to be a grave one, I prohibited all exertion, cause for excitement, and
restricted him to his. cot.

That his attack was ereatly aggravated by the course pursued
towards him by the authorities otHong Kong and the agent and
owner of the ship there can be no doubt ; but whether Mr. Gassett
was aware of the condition of Captain Nichols I know not.

Captain Nichols' condition when I last saw him was critical ; the
duration of the attack not only very uncertain, but ite result extremely
doubtful.

In replying to your note, I have necessarily mentioned the name of
Mr. Qassett, a gentleman whom I have most favorably known ; yoi^

n,g:,.-,.dtyC00C^lc

28 CLAm OF JAHES EEGNAN.

will therefore pleam do me the &Tor to forward him a copy of thU
letter.

I am, very Biaoerelr, Tonra,

CHAS. D. MAXWELL,

Gen, Jams Kkssas,

United Stales Contul for Bong Kong, China.

A true copy.

J. KEENAN,

Umted States Consul.

YnTtoBiA., Hoira Kono,

November 15, 1865.
I hereby oertify that I attended Captain Nichols, late of the Ameri-
can barqae " Beindeer," from October 30 to vitbin a few days past,
on acconnt of a severe attack of dysentery ; and I declare that at the
time I firet visited him, in consoltation with Dr. Maxwell, senior aar-
geoQ United States navy, he was considered by both of ns in a dan-
gerous state. ,

W. A. HAKLANB, M. Z>.

Uhitzd Siatw ComULATB,
Song Kong, Deamber 13, 1856.
I, James Eeenan, consul of the United States of America for the
island of Hong Kong, hereby certify that the above copy of a certifi-
cate, given by I)r. W. A. Harland, H. D., regarding Captain Eraatiu
W. Nichols, 18 in every respect a true and exact copy of the original
certificate.

Witness my hand and the seal of my consulate, this I3th day of
[l. s.] Deoember, A. D. 1865.

JAMES KEENAK.
United Staiea CoasvL

UmrsD Btatbb Coiibqla.tb,
Hong Kong, November 16, 1866.
Personally appeared before mCj James Keenan, consal of the United
States of America for the island of Hon^ Kong, Erastua W. Nichols,
late master of the American barque " Beindeer, of New York, having

X.ocwic

CLkUt OF JAHES EEBNAN. 29

b«en daly bwotd, deposed aad said, that he never anthorized Mr, Q.
Cooper Tamer or Mr. Edward Qaaeett to pay the fine of $76 (seventy-
flre dollars) imposed upon him on the 23d day of October, 1855, by
the polica coart of Hong Kon^. And the said B. W, Nichols farther
Bsith that the fine was paid without hie knowledge.

B. W. NICHOLS.

Sworn to and subBoribed before me, this 16th day of November,
A. D. 1855.

JAMES KEENAN,
United States ConsvL

1, James Keenan, United States consul for the island of Hons
Eoog, do hereby certify that the foregoing is a troe copy of the origi-
nal on file in my office.

r a-t^» witness my hand and the seal of my oonsalate, this 13th
L*" ^-J day of December, A. D; 1855.

JAMES KEENAN,
United Statea Oonnd.

Evidence of J. Martin,

Jakbb Martik, examined on oath, states : I am the chief ttsher of
this coart. I was present on the 23d of October last, at the bearing
of the chargs of Madison v». Nichols for assanlt and battery.
The charge was heard, in petty sessions, before Mr Hillier as
chairman and Mr. Leslie as one of the justices of the peace. Cap-
tain Nichols was convicted and mnlcted in $50 fine to the Queen
and (25 compensation to the complainant. In defaalt of fine, it
was my duty to convey Captain Nichols to prison, in the ordinary
coarse. Upon the conviction being pronoanced, Captain Nichols
distinctly refused to pay the fine. He refosed in open conrt^ and
in the bearing of Mr. Eeenan. Mr. Hillier then retired from the
1)ench, and Mr. Keenan followed him into his private room. During
his absence I told Captain Nichols he mnst accompany me to prison.
He said he wonld as soon as Mr. Keenan came out of the private
room. When Mr. Eeenan did so, he walked up to Mr. Nichols, at the
door of the court, and linked his arm into the arm of Captain Nichols,
and they both proceeded down the court yard of the magistracy. I
followed, or rather walked alongside Captain Nichols, and when we
got to the jail gate I said, "Thisway." Mr. Keenan replied, "Notso
easy." I then told Captain Nichols that he had better come with me
to prison ; to which Mr. Keenan rejoined that he had Mr, Hillier's

Earmission to take Captain Nichols home to dinner, and that he wonld
ring him back in the morning, and that he wonld be responsible for
him. Upon this I requested time to allow me to refer to Mr. Hillier,
but seeing Mr. Keenan and Mr. Nichols moving on, I followed and
seized Mr. Nichols by the breast of his coat, wherenpon Mr, Keenan
pnshed me with encb force as to compel me to release my hold of my
prisoner. Seeing several persona coming down the court yard, whom

X.ocwic

30 CLAIM OF JAUES EEENAN.

I had previooBly seen ia commanication with Captain Nichols and
Mr. Eeenan, I ordered the jail guard to turn oat to assist me in ee-
curing my prisoner. The euard was too slow in taming oat, and
without waiting for them I loUowed Captain Nichols and Mr. Eeenan
down the hill, and saw them enter Mi. De Silver's store together. I
swear distinctly that my prisoner was rescned from mv castody hy Mr,
Keenan ; that is to say, by caosing me to lose my hold of him at the
jail gate. After Mr. Keenan and Captain Nichols entered Mr. De
Silver's house I lost sight of them, and went round to the back steps,
and then saw Captain Nichols get into one boat and Mr. Eeenan into
another, both boats palling in the same direction towards the "Pow-
hatan." I endeavored to overtake Captain Nichols' boat, but was
nnabte to do so. Mr. Keenan parted from Captain Nichols just inside
the threshold of Mr. De Silver s shop door and then came out.

J. MARTIN.
A true copy.

JAMES EEENAN.

United States ConatU.

Evidence q^ C. J). William.

Oharlss Delako Willuhs, examined on oath, states: (thiswitness de-
sires it to be noted that he gives his evidence under protest, on the
grounds of its having arisen in course of private conversation.)

I am partner in the firm of Williams, Anthon & Co., and am
Swedish and Norwegian consular agent at this port. I was informed
that Mr. Eeenan was summoned before this court (I don't recollect
the date) to answer a charge of assault upon the usher. I went to
his house on that day, and saw him. I asked him if it was his in-
tention to obey the summons. Ke answered that, in consequenoe of
the indignities he had suffered at this court, it was not possible for
him to attend here. I questioned Mr. Keenan respecting the whole
merits of the case of the " Reindeer," and he stated, in coarse of that
conversation, that somewhere near this court, after the conviction of
Captain Nichols, a person came up to them as he and Captain Nichols
were going down the hill, and put his hands upon Captain Nichols,
and that he, Mr. Keenan, by way of remonstrance, had removed that

Serson's hand from the arm of Captain Nichols. He stated that he
id not, at the time, know him to be the usher of this court. The
impression left upon my mind was, that Mr. Keenan had removed the
usher's hand from the person of Captain Nichols by way of remon-
strance and not by w^ of assault. Mr, Eeenan was charged with
stating a falsehood. I went to him to learn the whole merits of the
case of the " Reindeer," and I hare no belief, nor ever had, tbat be
made any misstatement whatsoever.

C. D. WILLIAMS.
A true copy.

JAMES EEENAN,

United 8l€Ue» Omstd. ■
n,j-,,-..ii, Cookie

CLAIM OF JAMES KEENAK.

Evidence of S. AaihuM, jr.

NoTB. — The evidence given or to be given by this witness is objected
to by Mr. Keenan and bia attorney, Mr. Tarner, on the grounds of
ita ming a privileged and confidential communication,

Hesrt Anthoit, jr.j examined on oath, states :

I am a merchant, trading at this port, and a partner in the firm of
'Williams, Antbon & Co. I have filled the office of United States
vice consul at this port, and was succeeded in that office by the defen-
dant, Mr. Eeenan ; I had a certain conversation with Mr, Keenan
touching the case opon which he now stands charged ; that conversa-
tion arose out of a charge that waa made against Mr. Keenan by a
gentleman in this colony, in which Mr. Keenan was charged with
telling a falsehood. I spoke to Mr. Keenan upon the subject, and in
course of that conversation Mr. Keenan stated that, by way of remon-
strance with the usher, he had removed his band from the arm of
Captain Nichols. He stated that that occurrence took place outside of
the jail gate, as I nnderstood him. My conversation with Mr. Keenan
arose oat of the case of Madison v». Nichols ; and I wish to state thus
publicly that I fully satisfied myself that Mr. Keenan'a veracity had
been vrongfally impeached by the gentleman in question. The whole
and sole conversation between Mr. Keenan and myself upon this sub-
ject took place partly in my counting-house and partly in the ball
leading into it.

HENRY ANTHON, Je.

Taken before me, this thirteenth day of November, 135S.

Henry Anthon,jr,, ooatitmed.
The witness foregoing desires it to be noted that he strongly objected
to giving the testimony which he has done, on the grounds that
the statement was made to him by Mr. Keenan in his (deponent's)
own house, and arose out of a conversation which was originated by
deponent, and not by Mr. Keenan.
Before me.

W. H. MITCHELL.

A true copy.

JAMES KEENAN,
United States Consul.

Toko Asn, Chinaman, examined upon bis oath, states :
This witness corroborates all tbe particulars contained in the evi-
dence of James Martin up to the occurrence at the jail gate. I followed
Mr. Keenan, Captain Nichols, and the asher down the court yard of
tbe magistracy on the day in question ; I saw them moving paetthe
prison gate, and I then observed the usher move in front of Captain
Nichols, and make a motion with his hands, as if to detain him. I
cannot say that tbe usher Iwd bands upon Captain Nichols at that

n,g:,.-ndtyC00glc

32 cum OF JAHES EEEKAM.

moment, but I am sure that Mr. Eeenan pat bia hand npon the neher
and pushed him off from Captain Nichols. The nsher then called oat
" G-oard ;" after this, the last I saw of them was Mr. Keenaa and
Captain Nichols continning their way down the hill.

TONO AKH.

A trae copy.

JAMES KEENAN,
United Stales OoHtul.

Walub, an Indian oonstable, examined upon bis oath, states :
I am one of the jail Koard ; I was on datj on the 23d ultimo at the
jail gate ; I saw the osner and three or four others in altercation there
on that day ; I saw the osber receive a posh on the breast from some
one, bat cannot say who poshed him ; I shoald not know the person
who poshed him again if I saw him.

WALLEB.

A tme copy.

JAMES KEENAN,
United Staiea Omuvl.

John Mahomed, Indian, P. 0. Ko. 99, examined on oath, states :
That he saw the asher poshed, as well as he recollects, on the 28th
nitimo, bnt shoald not know the person who pashed him.

JOHN MAHOMED'S MABE.

A tme copy.

JAMES KEENAN,
United States Oongvi.

Abdoollah, Indian, P. 0. No. 66, saw the usher poshed, bat would
tt know the gentleman who pashed him, if he saw him again.

ABDOOLLAH'S MABK.

A trae copy.

JAUEB EEENAN,
United States Constd.

j^davit o/ E. S^ctr,jr.

The deponent, Elihe Spencer, the yonnger, on his oath, depoeeth
and saitb :

I am master of the American ship " Samael WiUetts." I was at
the police court of Hone Eone on the 23d October last, at the time
the case of Madison vs. Nichols was heard. I saw Mr. Kaeoaii, after

cum OF J11CE8 EEENAS. 33

the trial waa over, go iato the magistrate'e private room. I heard
him say, when he came out, that Mr. HUlier would oot remit Captain
Nichols' Bentence. He told Nichols he had better go and see the
magiatrate; aod when he came out Nichols said, Mr. HilHer still
refuses to remit the seoteace. Captains Paul, Barstow, Nichols, aod
myself, were then present. Mr. Eeenao was present at the trial of
Madison vs. Nichols. I saw him taking notes of the eridence ', he left
the court for a short time during the trial ; he left hia uotoj on the
desk. I know Martin, the usher ; he was in the court at that time.
I saw the usher take up Mr. Keenan's notes and read them ; he folded
them up and took them into the clerk's room. On his return, Mr.
Eeenan looked for his notes ; not finding them, he asked the nsber
for them. I did not hear the usher's reply. I saw Mr. Keenaa then
take up a piece of blank paper, and I touched him on the shoulder,
and told him I had seen the usher take his notes into the clerk's room,
and when he came out he held the notes up in his hand and made
some remark to the usher, which I did not hear. Mr. Eeenan, afier
the trial was over, said he was going down town, and aaked us to dino
with him. Nichols took his arm, and they walked away together.
When they went away, Martin was nearly abreast of them. I fol-
lowed with Captains Paul and Barstow ; Captain Davis was some
distance ahead. We passed through the jail yard gate. I am not
sure whether it was inside the jail yard or out, hut I think outside. I
saw Martin remonstrate with Captain Nichols. I was from ten to
twelve feet distant, sometimes nearer or abreast. I heard Mr. Kee-
naa say, if the nsher would allow Nichols to go with him unmolested,
he would be responsible. The usher objected ; he requested Captain
Nichols to atop, but Nichols took no heed of his request, and con-
tinued his course. I never heard Mr. Keenan say he had Mr. Hillier's
leave to take Nichols with him. I did not atany timesee Mr. Eeenan
lay hia hand on Martin, or in any way touch him. When Nichols
refused to stop at the uaher'a requeat, the usher ran back to the jail
gate and called out for the guard ; he ran back about twenty or thirty
paces. I noticed him ; he walked a few paces, and then commenced
running to the guard, [ did not see him at any time stagger ; he
did not appear by his motion to have been struck or pushed. All his
movements were perfectly natural. After the usher ran back, Mr.
Eeenan and Nichols walked on and I followed. I saw Margin before
we got to the Queen's road ; he ran paat us and turned to the left
along the nest atreet to the Queen's rc^, I think. We then went to
De Silver'a store ; Mr. Eeenan and Nichols were there. Captains
Osgood, Davis, and Joyce were there. We remained about six min-
utes. I then went to De Silver's wharf, accompanied by Captains
Paul and Nichols. We went through the back store and the go-downs;
we went down the steps, called a boat, entered, and pushed o£F, I
did not see Mr. Keenan or Martin, or any constables on the wharf;
when we pushed off there were no one hut Chinese there. I know the
bank wharf steps ; there is a wall partly dividing it from De Bilver's.
I think it is not possible for a person standing on the Bank wharf
steps to see a boat pushing off from Mr. De Silver's steps. Captains
Nichols, Paul, and myself got into a boat ; there were only three Chi-
H. Ex. Doc. 113 3 X.ocwfc

34 CLAIM OF JAMES EEENAN.

nese besides ; there were two white men pnlliDg. Up to this time I
bad not Been Mr. Keenaii or Martin on tbe wharf, or any where aboat.
When our boat was abont two hundred yardB from the wharf, I sav
Martin pushing out in a boat,

Cfross-txamined by Mr. Bridges.

. When Mr. Keenan asked us to dinner at the police court, I under-
stood it to include all who were present. Nichols was present ; 1
accepted it ; I beliere it was generally accepted. Captains Panl,
Barstow and myself walked down to De Silver's together ; at times we
were abreast ; we were walking close together talking ; Captain
Davis was some distance ahead of Mr. Keenan ; anything that was
said by Martin and heard by Paul, would most likely have been heard
by me ; there were none of our party behind ns ; I am sure I did not
bear Martin tell Captain Nichols he was his prisoner ; I did not see
him put his hand on Nichols' shoulder ; he might have done it withoat
my seeing ; I will not swear that be did not do it ; I will swear, I
did not see him do it ; I did not see Mr. Keenan push the usher ; he
might have done it without my seeing, if done slightly ; I was
wimin a couple of paces of Mr. Keenan when Martin ran back for
the guard ; he ran back because Nichols would not return with him ;
the jail yard gate was wide open ; both leaves of the door were
thrown back ; I never saw it otherwise ; I have passed six times ; a
conversation took place in De Silver's letween Captain Nichols and
myself, as to going off to " Powhatan," that was all. Captain
Paul and myself were the two white men who pulled in tbe boat when
Captain Nichols went off with us.

Examined by oommisaionen.
I will swear that I never lost sight of Mr. Keenan or Captain
Nichols between tbe police court and Mr. De Silver's.

Re-taamined by Mr. Day

In going from the police court to Mr. De Silver's it is necessary to
pass the gate of the jail before you get out of the precincts of the

Solice court yard. When I said that Mr. Keeoan's invitation to
inner was generally accepted, I cannot say I heard any one in
ntrticular do so ; it was my impression that it was geoerally accepted.
There is a standing general invitation from Mr, Keenan lo all
American shipmasters to dine with him whenever they like on each
occasion. I passed the jail yard gate ; it was daylight; tbe police
court was sitting.

E. SPICEE, Jr.
I, James Keenan, Unit«d States Consul for the island of Hong
Kong, do hereby certify that the forogoing is a true copy of the
original.

As witness my hand and the seal of my consulate, this 7th day of
December, A. D. 1856.

[SEAL.] JAMES KEENAN,

Unittd ^aU$ Ckyml.

CLAIH OP JUIE3 KEESTAK.

Aj^avit of J. W. Paid.

TantaDAT, November 29, 1865.

The depooeat, Josiah Wilaon Paul, on oath, deposeth and saith :
I am a master mariner. I am a oatire of New York, in the United
States of America. I remember the 23d of October last. I was in
the police court of Hons Kong on that day. I heard the trial of the
caae of MadiBon vs. Nicnols. I saw Mr, Keenan there. Before the
cue was entered into I heard him (Mr. Keenan) protest against the
proceedings of the oonrt. When the case was concluded I saw Mr.
&eenan go into a room into which the magistrates had previoasly
gone. Hr. Keenan and Mr. Nichols left the court together ; they
went towards the jail yard gate. I know Martin, the osher of the
ooart ; he was there, I heard him tell Mr. Keenan that Nichols was
fail prisoner. I did not hear Mr. Keenan's reply. I did not sabse-
qnentlj hear any observations made by Mr, Keenan after they had
passed the jail gate. I heard Mr. Keenan say to the usher, Martin,
" If ^OD let Mr. Nichols come to dine with me, I will be answerable
for him," or words to that effect. I was following them, and might
liave been six or eight paces distant. I did not hear Mr. Keenan say
anything abont baring Mr. Hillier's permission. I did not hear Mr.
Hillier's name mentioned. Captain Spicer was the nearest man to
me ; theo he was by my side. Captain Barstow and some other per-
son I do not now remember were behind as about twelve paces.
Nichols and Mr. Keenan were walking arm in arm. Tbe nsher was
sometimes ahead of them, and sometimes behind them and ns. I saw
the nsher pat his hands on Nichols' shoalder. I did not thronghoat
the transaotion see Mr. Keenan tonch Martin, the nsher, in any way.

Martin did not leave them till he went back for assistance. He
ran back some fifteen or twenty paeea. He was running ; be did not
appear to be staggering, or as if he had been pushed or struck. [
never saw him at any time stagger, or appear as if he had been struck
or pushed. After he ran back, Mr. Keenan and Nichols walked down
the street to the Queen's road. Before we got to the Queen's road
Martin ran past ns, and took, I think, the second tnrning to the left,
I saw nothing further at that time of the course he pursued. I went
down to Mr. De Silver's stores, in the Queen's road. Mr. Keenan
and Nichol's were there. Captain Spicer went in with me. I re-
mained there about four or five minutes. I then went down to Mr.
De Silver's wharf, accompanied by Captain Spicer and Captain Ni-
chols. We went through the back of tne store and the go-downs to
tbe wharf J it is a private way. I went down to the steps. We atl
three entered a boat and pushed off. At tbe time we pushed off there
was no one on the wharf but Chinese. I know the bank wharf steps ;
there is a wall which prevents any one at those steps seeing anything
taking place on De Silver's wharf except at the extreme western corner,
Btan£ng on the bank steps, you could not see a boat pushing off from
the steps that I embarked from. The only persons in the boat with the
exception of the boatmen were Captains Spicer and Nichols and m^If,
There were two white men pnlling when we were near the "Few-

ogTc

36 CLAIM OF JAUE8 EEENIK.

hatac." I aaw Martin following in a boat; he vas from fifty to
eerent; Tarda distant. When I left the -whan I did not see Hartin
or Mr. Keeoan anywhere about.

Croaa-etamined hy Mr, Bridges.

I went op with Captain Nichols to hear the case of Madiaon agMoat
himself; Captain Spicer was with na. There were several captaina of
ships there ; I cannot aaj how many ; there may have been five or six ;
moat of them left before the case was finished. J had no talk aboot
the caae with any one. I had only heard of the case that morning.
I ehonld say that it is abont fifty paces from the coart door to the jail
yard gate. It was outaide of the jail gate. I heard Martin tell Mr.
Eeenan, Nichola waa hia priaoner. U was at the same time that
Martin pnt his hand on Nichols' shoalder. (The witness correots
himself) It waa inside the jail yard that the oaher naed the words
above mentioned ; they were moving on at the time. I woa from six
to eight pacea behind. I cannot say whether the jail yard gate was
open or half shat, I am positive that Mr. Eeenan and Nichola were
never ont of my aight after leaving the police court nntil we arrived
at De Silver'a. I cannot awear that Mr. Keenan did not pnab Mar-
tin ; I will awear I did not see him do it. When we amved at De
Silver's Captain Spicer said tome, "Will yon go on board the 'Pow-
hatan?' " I had no conversation with any one previously. Mr.
Keenan did not aay anything to me about going on board the " Pow-
hatan." He did not speak to me, nor did I hear him speak to any
one. I remained on the front part of the store, and Mr. Keenan and
Nichols went to the ofGce, and Mr. Nichols sat down in a chair. The
boat I pulled off in waa a China pull-away boat ; it was there plying
for hire. I sometimes pull in a China twat ; that waa not the first
time ; I have done so two or three times, when I ehonld not have got
off if I had not pulled myaelf. There were three Chinese in the boat
on that occasion, not more than three.

J. W. PAUL.

' I, James Eeenan, United States consul for the island of Hone Eong,
hereby certify that the foregoing is a true copy of the original.
Aa witneas my hand and the seal of my consulate, this 7th day of
[seal.] December, 1856.

JAMES EEENAN,

United Statu ComhI.

Affidavit 0/ H. N, Osgood.

The deponent, Hobacr Nkwsll Osoood, on oath depoaeth and saitb:

I remember the 23d October last. I was at Mr. De Silver's store

on that day. I remember Mr. Keenan and Captain Nichola oomiag

from the police court, and Captains Paul and Spioer following than,

I was in the front part of the atore when we missed Captains Nichols,

CLAIH OF JAMES KEZSAS. 37

Paal, and Spicer. I went back throagb the store, and, somebody
remarked they bad gone throafcli ^^^ 1>&ck way. On getting below I
and Captain Barstow met Mr. Keenan, and we then all three proceeded
to the wharf. We met Captain Joyce coming back. I do not recol-
lect whether any one was with him. Captain Joyce tarnedand fol-
lowed ns. When we got on the wharf there were no other white
men except onrselves. I did not see any. I saw Captains Paul,
Spioer, and Nichols in a boat about two or three hundred yards from
the steps. They wore the only white men in the boat, I, accom-
panied by Mr. Keenan and Captain Barstow, got into Spicer's boat
and followed on. I know Martin. After we got into the boat and
shoved off, Martin cameout in the next slip in a boat. He was about
abreast when we got clear of the wharf. I did not see him till be
came ont of the slip. The boat that I mention as " Spicer's boat "
is a ship's boat ; the boat he went away in is a Chinese boat.

H. N. OSGOOD.

I, James Keenan, United States Consnl for the island of Hong
Kong, do hereby certify that the foregoing is a true copy of the original.
raniT 1 ^^ witness my hand and the seal of my consolate, this 7th
ISMAL.J j^y ^f December, A. D. 1855.

JAMES KEENAN,

United States C<^su!.

JiS^vit of J, O. Joyce.

Deponent, Johh GkntDOK Jotcb, on oath deposeth and saith ;

I am master of the American ship Lookout, I remember the 23d
of October last. I was at Mr. De Silver's store on that day. I saw
Hr. Keenan and Captain Nichols come in. Aboat the same time
Captains Spicer and Paul came in. Captain Daria was with me.
Captains Nichols, Spicer, and Paul went away. Davis and myself
went to the wharf afterwards. There was no boat at the steps.
There was one lying close to. When I got to the steps I saw Cap-
tains Nichols, Paul, and Spicer eetting into the boat. They three
were the only white men on the w^arf. I did not see Martin on that
occasion. The bOat pushed off. When they had left we returned
toward Hr. De Silver's store. About half way down the passage
from the store to the wharf we met Mr. Keenan and Captains Osgood
and Barstow. They were walking towards the steps. They were
walking at a moderate pace when Nichols' boat bad pat off. Davis
and myself walked back slowly, arm in arm. I did not, nor did Mr.
Davis, speak to Mr. Keenan or the two captains who were with him.
No words were exchanged. I turned and followed them to the wharf
and Davis went on to the store. Captain Osgood hailed Spicer's boat,
and when she came alongside the steps Messrs. KeenaUj Osgood, and
Barstow got into the boat. The latter is a ship's boat. I did not see
any boat with Martin in it. At the time Nichols and the others paahed
on Mr. Keenan was not in sight.

JOHN G.^JOYCB.

n,g:,.ndtyC00glc

38 CLAIM OF JAMES KEEtTAir.

I, James Eeenan, tlDited States Goosal for the island of Hon^ Kong,
do hereby certify that the foregoing ia a true copy of the original.
r<« T 1 ^B witness my hand and the seal of my consulate, this 7th
LBKAL.J . ^^ December, A. D. 1855.

JAU£S KEENAK,
United Staiea cmsnI.

Examination <^ Andreva Barriow.

AiTDBEW Bakstow examined on oath, states :

I am master of the American ship Lantao. I was present in this
court on the 23d of October last, during the hearing of the case of
Madison vs. Nichols. The American Consul, Mr. Keenan, was present
and protested against the jurisdiction of this court in the case referrnd
to. I heard Captain Nichols convicted of the charge made by Madi-
BOQ, and sentenced to pay a fine of $50, and (25 amends. I heard
the default pronounced ; it was one calendar month's imprisonment.
Mr. Keenan was in court at the time, that fine and default were pro-
nounced.

By Mr. Keenan. — I did not hear Mr Hillier fisk you if you would
be responsible for the return of Captain Nichols if he were permitted
to leave the court. I was absent once for about five minutee, and
that question may have been put in my absence. I heard you protest
against the proceedings again after the sentence was pronounced.

ExamintUicm-in-chief coiUinued.

After the sentence, I saw Mr. Keenan go up to Captain NicholB,
who was standing in the door- way of the couit, and say to him, " Cap-
tain you had better come home and have dinner with me to-day ;" and
then arm in arm tbey walked down the magistracy compound together.
I followed, so did the usher of the court, and about halfway down the
hill he remonstrated against Captain Nichols leaving the court yard ;
to these remonstrances Mr. Keenan replied that he would be answerable
for the prisoner's return, if allowed, unmolested, to take him home to
dinner. I presumed that Mr. Keenan was taking him to the Americoa
consulate. I did vot hear Mr. Keenan tell the usher that he had per-
mission from Mr. Hillier to take the prisoner away, I followed Captiun
Nichols, Mr. Keenan, and the usher, down the magistracy compoood
at a distance of not more than twelve or 15 pacea, and I declare upon
my oath that I did not see Mr. Eeenon put hands upon the usher in
any way, or detach him from his prisoner, or use any personal vio-
lence whatever. The whole of the altercation between thepartiea waa
confined, as far as I saw, to the remonstranctis on the part of the nsher,
and the expression on the part of Mr. Keenan, that he would be
answerable for the prisoner's return if allowed to take him, aomo-
hstedj to the American consulate.

By Mr. Tamer. — I advised Captain Nichols, and so did CapUun
Bpicer, to go on board the " Powhatan," and Mr. Keenan had nothing
whatever to do with his going there. Mr. Keenan was not preaeat
when Captain Nichols went on in his boat to the "Powhatan,"

ii,Cooglc

CLAIM OF JAlfES EZENAH. 39

Sxamined by the usher, Jamea Martin. — I was certaiolj Dot more
tlian twelve paces distant from you and Captain Nichole, all down the '
hill, to the magistracy gate, and the whole party was fall ia my TieiC
the whole time.

Yonr remoastranoea to Mr. Eeenan were perfecUy distinct and
aadible. I do not think yoa could have laid hands on daptaia Nichols
without my having seeo it. A Captain Paul also followed both parties

down the hill,
A true copy.

ANDREW BABSTOW.
JAMES KEENAN, V, 8. Ooami.

_ No. 27.

Mr. Ktetum to Mr. Marcy.

UurrzD Statbb CoirauLATB,
Song Hong, Ftbrwu-y 12, 1856.

SiE : With reference to the diEBoalties that have arisen between the
authorities of Hong Kong and myself, in consequence of the illegal
arrest of Captain Erastus Niohols, of the barque "Reindeer," I have
to inform yoa that upon the 23d ultimo, my attorney, George 0.
Turner, esq , handed me a letter from my barrister, Hr. Day, of which
the enclosed No. 1 is a copy ; and from which you will perceive that
the government has withdrawn the prosecution against me for the
alleged rescue of Captain Nichols, on the ground that Nichols was not
in legal onstody of tne usher.

The government having failed to e^ct a compromise by which I
should recede from the position 1 had taken, and having become sensi-
ble of the rudeness and illegality of the course that had been pursued
towards other American citizens and myself, and of the indignities
that hod been directed agaiuut the American flag, was glad to avail
itself of any excuse to qaasb the proceedings.

Conscious of being right in my action throughout the whole affair,
and of the correctness of the principle upon which I based that action,
and satisfied that I would be sustained by my government, and
eventnally succeed in establishing the premises upon which I started,
namely, that American merchant ships were American territory,
whether at sea or in port, and that American officials only had juris-
diction over the internal discipline of such vessels, when " tho peace
of the community" of the port was not aSected, " excluding to this
extent the local laws," I maintained the position I had taken, knowing
that it was the only security for the rights and interests ofourcitizena
and the honor of our nation.

Previous to the entering of the nolle prosequi, however, you will
learn from the enclosed No. 2, from the superintendent of police, asking
permission to board the "New England," to search for deserters,
that they had virtually abandoned the ground first taken by them.

n,,,, ii,CoOglc

40 CLAIM OF JAUES EEENAN.

I enclose a copy of my permit, Ko. 3. The search was accordinglr
made, hat the deserters were not found on board the vessel. Appli-
cation from the same quarter has this day been made to me for per-
mission to board the American ships " Electra," " George,"
" Menkar," and "Majestic," for the same parpose, and permission
granted.

His excellency, Peter Parker, who was present last year during the
converaation hetween his excellency, R, M. McLane and Mr. Bridges,
the colonial attorney general, and myself, relative to their claim of
jnrisdictioD over our vessels in the harbor, has informed methat in a con-
versation that he had lately had with his excellency BIr John Bowring,
governor of this colony, he informed the governor that at that confer-
ence the attorney general had yielded the point, and declared that
neither masters of ships nor the United States oonsal shonld suffer
any further annoyance from the colonial authorities in snch cases.

Our commissioner further informed me that the governor had assured
him that no further action should be taken till the British borne gov-
ernment should he beard from upon the question.

Thus you will perceive that, though this government has not aban-
doned its claim of jurisdiction over American vessels in this harbor,
yet it has for the present discontinued the practice of boarding and
searchingour ships, and controlling their internal discipline, and taking
therefrom, without permission, persons guilty of no offence against
British law ; hut how soon that practice will be renewed, unless vig-
orous action is promptly taken by our government, and the question
definitely settled, it is impossible to tell.

Bis excellency, the governor, at present courteously ezpressea bis
profuse regards for the honor of our country, and the rights of our
citizens, and perhaps to his restraining influence may be ascribed the
existing comparative courtesy of his subordinates ; but so well satisified
I am that there can he no harmony of action between the present
magistrates and superintendent of police of this colony and an Amer-
ican consul who does his duty to bis countrymen, that I must again
earnestly reiterate my request that their dismissal shall be required,
and full reparation made for the wrongs and indignities inflicted.

His exccllpucy, the governor, I am informed, has appointed Chief
Hngistrate Hillier, British consulgeneral to Siam ; whether this is a
punishment or a promotion, I leave yon to determine.

Mr. Hillier will shortly leave for Bangkok, and I think yon will
agree with me, it will he conducive to the interests of our country and
the safety of our countrymen, several of whom have recently left this
colony for that destination, that with his prejudices against as, he
sbould be met there by an American official of energy and determina-
tion, at least his equal iu rank, who should be required to permanently
reside in that country ; which now bids fair to open an extensive com-
merce with the world.

I am, sir, very respectfully, your obedient servant,

JAMES KEENAK,
United 8taie» Gmnl.

Hon. W. L. Marct,

Secretary qf State, Washington City, D. C, V. 8. A.

: COOglC

CLUK OF JAMES EEXNAN. 41

Ko. 1.

HOKO EONO,

January 23, 1856.
Bex. iw. Kebsas, Esq :

My Dbar 8ik : I hare just received a communicatioD from Sir John
Bowriog through the colonial eecretarj, to the effect that the attorney
general will be instructed to enter a nolle protequi in this case; the
government being advised that in oonsequence of the want of a lawful
warrant ot commitment in the case of Madison vs. Nichols, this iofor-
mation is not maintainable in point of law.

Will 70U bring this to the knowledge of Mr. Eeenan, and congrat-
ulate him on my behalf that the case has been thus terminated more
speedily than we had antici^ted, though of its ultimate result there
was not from the first the slightest donbt.

Believe me, very truly youra,

Q. CooPKB TuBKSB, Esq.

JOHN DAT.

No. 2.

Jaituabt 19, 1856.
Sib : Four soldiers have deserted from her Majesty's 59th regiment,
and it is surmised that they have stowed themselves away on board the
American whale ship " New England." A Don-commissioned officer
of the regiment to identify the men will acoompany the police inspec-
tor, who will deliver this to you ; and I shall be glad to have a note
from yon to the master of the ship named to give permiasioo for the
search to be made.

I am, dear sir, very truly and obediently yonrs,

0. MAY,
Superintendent (^Police.
J. Keectait, Esq.,

Consul 0/ United States.

No. 3.
UmTBD States Consolate,

Eimg Kong, January 19, 1856.
Dbab Sib : The eaperioteDdent of police, Mr. May, has informed
me that four soldiers beloDging to her Majesty's 59th regiment have
deserted, and are supposed to be concealed on board of your ship, the
"New England."

You will please permit this officer and the men with him every
facility to search for them, and if found, permit them to be brought
on shore, to be delivered up to the authorities, and oblige,
Tours, truly,

J. KEENAN,
United Slates Consul.
Captain H. Shfth,

Ship " Hew England.' nig;i.-cdtyGoOQlc

CLAZH OF JAUES EEEKIN.

3£r. Keenan to Mr. JUarq/.

Ukitbd Statbb Consulatb,
Hong Kong, January I5th 1856.

With reference to the matter of the alleged rescae of Captain
Nichols, I attended the supreme conrt on December 23d last, hat the
case was continiied till tKe next seasion, I am aatiafied that no
decision will be made till the opinion of their home government ib
obtained. Fearing to continue their former coarse, the saperinten-
dents of police dov ask my permission to board American Tessels in
this harbor, as yoa will perceive by the enclosed copy of a letter from
me to Captain Whelden of the American schooner " Wilmington."
I enclose also a copy of a letter from Mr. Adame, the secretary of the
late Commodore Abbott, from which yoa can learn the opinion the
commodore entertained of the impropriety of my arrest npon the
above charge of rescae, and of magisterial jastice and coarteay in this
colony. This message the commodore repeated the day following
throagh another officer of the " Macedonian." I may here be per-
mitted to mention that, after the testimony of the asher of the court
had been taken and pablished, with false and most slanderous coDt-
raents, when my rebutting evidence was abont to he heard, the conrt
warned the reporters (editors) that if they pablished it, they woold
do it at their peril, thus gagging the press and staying public opinion,
afler they had endeavored to give it a tone having a tendency
materially to affect the defence.

********

I am, sir, roar obedient servant,

JAMES KEENAK,
United Slates ConatU.
Hon. W. L, Maect,
Secretary of Skite.

United States Flag Ship " Macedonian,"

Song Kong, November id, 1865.

Sir: Commodore Abbott having this morning been informed that
a warrant had been issued for yonr arrest in regard to the alleged
rescue by you of Captain Nichols, of the American bark "Reindeer,"
sent for me, and directed me to give you the following message; —
" Say to Mr. Keenan, if he wants protection to go on board of the
' Macedonian,' and I will give him as much protection as her guns
can afford." At the time Commodore Abbott made use of the words
he was in his bed very sick, but he raised himself up with all of
his strength, and said them in a manner that showed he was deter-
mined to act in accordance with his language, , . ,

ll,LnOOglC

CLAIM OF JAHE8 KEEHAH. 43

I called at the consnlate immediately after, according to the order,
but found joa were out. I shall see you to-day and give you fuller
particalare.
Very reBpectfally, your obedient aervAnt,

W. B. ADAMS,
Commodort'B Secrkary.
Mr. Jaxbs Ebbjtak,

Uniied 8tQte$ Coitm^, Bm^ K<mg.

UMiTEb States Consdi^tb,
Bxmg Kong, December Qtk, 1865.
Deae Sir: Mr. May, Baperiotendeat of police, has requested
permission to send tvo policemen on board of the schooner
"Wilmington," to arrest two deserters from English vessels. You
will oblige me if yon will allow the officers every facility.
Very truly yours,

JAMES KEENAN,
United States Conni.
Capt. J. Whblden,

Schooner " WiJaningtoa."

No. 30.

Mr. Keenan to Mr. Marcy.

UHiTEit Statk Coksulate,
Mong Kong, May 9, 1866.

8m : Feeling it to be my daty to keep the department apprised of
the course of evente relative to the position lately assumed by the
authorities of Hong Kong, with regard to their jurisdiction over
American vessels in this port, I have to state that on the 27th of
March last, the colonial secretary, by direction of his excellency the
governor, sent me the enclosed letter "A," relative io the escape
upon American whulers, of deserters from her Majesty's service, and
requesting my assistance and co-operation to suppress the evil.

In reply, I requested him to assure his excellency that I would
with alacrity " give all possible assistance and co-operation in any
proper plan that might be devised to prevent a recurrence of snob
proceedings," and that I would be glad to learn any suggestions that
ois excellent^ bad to make respecting the matter. On the same
day, Lieutenant Colonel Q-raham, her Majesty's secretary, with the
superintendent of police, called at the consulate, and informed me
that information had been lodged that eight or ten deserters from tho
garrison had been seen to board American whale ship "Canton
Packet," then about to proceed to sea, and requested permission for
the police to board her, and search for the deserters. ( 'nnoir

44 CLAIM OF JAHE8 KESHAN

I gave a policeman the oaual permit, but afterwards feariaf^ tbat
the vesael, wbicb was tben beating oat of the harbor, migbt get to
sea before he woatd be able to overtaker her, I sent deputy consul,
William Knapp, jr,, after her, in a steamer, with instrnctiona to bring
the men on snore. He, however, met the police and the captain of
the whaler on their retorn , with nine of the deserters, whom they bad
found secreted in the hold. It is bat justice to the captain to say,
that of their baring been secreted there he was ignorant, and he
returned in order to satisfy the authorities of this fact.

On the 8th of April, I received the enclosed "B" from theoolooial
secretary, expressing the desire of the governor to acknowledge "bis
appreciation of the prompt assistance" that I had rendered. To this,
1 replied by enclosed " C," and received on the 9th, letter " D," *' the
thanks of his excellency fjr my snggestions for checking desertioDS,"
with copies of ordinance respecting desertions. Thus the matter now
stands, and no further attempt has been made to exercise colonial
jurisdiction over American vessels, but no other disclaimer haa been
made of their lately asserted authority to board and search American
vessels in this port, no guarantee offered for the future, and no apology
for past wrongs and indignities.

The expenses attendant upon the defence of my rights as United
States consul, and in protecting the rights of my countrymen, resist-
ing the efforts of the colonial authorities, and establishing the supre-
macy of American law over American ships have bees heavy, and
under the impression that the circumstances will warrant the payment
of the enclosed bills of Q. C. Turner, esq., and W. H. Porter, I
forward the bill nith vouchers and exchange vouchers.

This bill I may remark, is but a moiety of the expenses tbat I have
incurred during those proceedings.

Very respectliiUy, your obedient servant,

JAMES KEENAK.
UniUd Stata Consul,

Hon. W. L. Marct,

Secretary </ Slate, fVaahingtoa City, U, 8. A.

Son. James KesTum, esq., United Staler Consul for Hong Kong, to
6. C. Turner, solicUor.

jAIfUAET, 1836.

An unfounded proseoutioa having been commeDced in the police
court of Hong Kong, charging you with rescuing Captain Niobola, of
the United States, master of the Reindeer, out of the bands of the
usher of the court while you were performing your duties as consul ia
protesting against the course pursued towards Captaiu Nichols, by
Mr, Hillier, police magistrate of Hong Kong, several conferences and
consultations with yon therein, and advising you to appear at the
police court under protest; attending at the police court as your coan-
sel some days, occupied considerable time in taking the testimony of
Captain Spicer and others. The magistrate having oommitted you,

CLAIM OF JAUES EEENAN. 45

ordering copies of the information and evidence, preparing recogni-
zance, and advieiog 7011 to execute the same hy you under protoat.
Ad indictment having been filed against you; retaining John Day, esq.,
at law; several conferenoes with you and him; application to the chief
justice and the acting attorney general that your vitnessea might be
examined de bene esse, as they were about to leave the colony; attend-
ing the examioation at the supreme court with John Day; interviews
with the chief justice and W. T. Mercer, esq., colonial secretary, when
the government declined to prosecute the indictment, on the gronnd
that the deposition of the usher did not disclose any case; Mr. Day's
fees, court fees, &c., $760.
B«ceived the above.

E. TURNER.

HoNQ KONS, January 1, 1856.
United Bates Consulate Song Kong, to W. H. Porter, Dr.
For taking notes and copying testimony in the case of Bex vs. Kee-
nao, esq., for the alleged rescue of Captain E. W. Nichols from cus-
tody, $50.
Beceived payment from James Reenan, esq.

W. H. PORTER.

No. 204.] OoLOBTAL Bbcbbtabt's Office,

Victoria, Eong Kong, JUardi 27, 1856.

SiK : I have the honor to bring to yonr notice the following facts.

The honorable Colonel Graham commanding the forces in this
colony, reports that no less than tea men of the 69th regiment in this
garrison, deserted in the course of last evening, making a total loss
of desertion of about 60 men since the let January last.

Some years ago, proof was given that desertioDs from the garrison
were instigated or aided by the crews of the whale ships under the
United States flag in the harbor, and recently it was discovered that
six soldiers were taken away in the United States whaler, Montpelier.

The evil having grown to an extent so serious, his excellency the
governor directs me to communicate the above circumstances to you, in
the hope that by your assistance and co-operaMon some means may be
devised to prevent the recurrence of proceedings so lamentable and
alarming.

I have the honor to he sir, your most obedient servant,

W. T. MERCER,

Coioni^ Secretary.

Jahss Ehenait, Esq.

United Slates Consul.

n,g:,.ndtyG00glc

46 CLAIM OP JAMES KEESAJX.

]^o. 243.] CoLomAL Sbcbktakt's Ofticb,

Victoria, Song Kong, April 8, 1856.

Sie: With reference to my letter No. 204, and yonr reply of 27th
ultimo, I am directed to inform you that the Hon. Lientenaat Colonel
Graham has notified to this government the ready oo-operatioD afforded
by yoa to the military authorities in the apprehension of the deserters
from the garrison, recently found on board the Americaa whaler
" Canton Packet."

His excellency the governor desires me to assure yon of the appre-
ciation of the prompt assistance you rendered on that occasioD.

As regards suggestions for the future repression of this crime, his
excellency has only at present to request that all convenient opportn-
nity he used to make known to the masters of these whalers, and
others, the penal provisions of ordinance No. 2 of 1852, copy of which
I have now the honor to forward.

I have the honor to be, sir, your most obedient servant,

"W. T. MERCER,
Cobmial Seeretari/.

Jahk Ekbnak, Esq.,

UhUed States ConatU.

Ukitbd States Gonsdutb,

Somg Kong, April 8, 1866.

Sir : In accordance with the request nf your favor of thia date, I
shall neglect no opportunity to make known to masters of Americas
whalers, and others, the penal provisions of ordinance No. 2 of 1852.

I have to ask that yon will convey to his excellency the governor my
acknowledgment of his polite assurance of appreciation of my assist-
ance in the apprehension of deserters f^om her Britannic Majesty's
service, recently found on hoard of the American whaler *' Canton
Packet,' ' and to assure his excellency that such co-operation always
has and always shall be rendered promptly when called for.

I must, however, be permitted to suggest that, from the tenor of
your letter, it would seem that yoa are laboring under an iooorrect
impression regarding the conduct of the masters of American whaling
vessels. I am satisfied that the masters of those vessels lend neither
aid nor counsel to deserters from her Majesty's service, but that from
a fellow-feeling, from a love of mischief, that seems innate, and a want
of knowledge of such penal enactments, the sailors, t<^ther with a
similar class of resideuts on shore, render such aid and asststance, and,
without the knowledge of the masters, secrete them on board of those
vessels.

This being my conviction, I beg leave to aa^gest that the most
effectual means for the prevention of such desertion would be for the

CLAIM OF JAMES KEENAN. 47

government to aapply every vhsle ship that hereafter ahall arrive ia
port with a copy of ordinsnoe No. 2 of 1862, for the benefit of the
crew.

If 70a think it advisable, and will fnniiBb me with copies of the
ordinanoe, I will take care that the crew of every Amerioaa whaler
that may arrive ehall be farniBhed with a copy.
I am, sir, very reBpectfally, your obedient servant,

JAMES KEEKAK,
United States ConstA.
Hon. W. T. Mbroeb,

CoIontaZ Seoretary, Victoria.

Ko. 247.] CoLOKiAL Sbcbrtary'b Op?ick,

Victoria, Song Kong, April 9, 1856.
81B : In at^nowledging yonr letter of yesterday, I am directed by
his excellency the governor to thank yon for yonr suggestions as to
the mode of checking desertions from the garrison, and in accordance
therewith, I have the honor to enclose twenty-foar copies of ordinance
Ko. 2 of 1852, for distribntion as yoa propose.

I have the honor to be, sir, yonr most obedient servant,

W. T. MEBCEE,
C^onitd Secretary.
Jamxs Ebbitan, Esq.,

VnUed Statta Coaaul.

Mr. Marcy to Mr. Keeaan,

Dbpaktment of Stair,
WaaUngton, AprH 14, 18S6.

Sir : The difficulty which has arisen between you and the British
authorities at Hong Eong has been duly considered ; and I am directed
by the President to communicate to yon his views thereon. Though
in passing upon the main question in dispute, tbe extent of your
powers as a United States consul at a port within the British domin-
ions, he ii not able to concur in your views ; yet he appreciates and
commends yonr zeal and attention to the interests of American com-
merce and to the protection of American citizens.

Hong Eong being a British colony, the case differs very much from
one of a similar character which might happen in any port of China.
The powers and jurisdiction of our consuls in China are defined and
regulated by treaty stipulations which do not apply to the English
port of Hong Eong.

I am apprehensive that while you have claimed for yonrself, as an
American consul, larger powers than can be well sustained^ the
ritish authorities have, on the other hand, exercised those which

48 CLAIM OF JAIIE8 EEEKAN.

OBtional comity ngnallj yields, and ghonld have been yielded io tbe
case of Ca|itain Nichols. Most of the anpleatrant occarrenoes which
you have presented to the department, seem to have had their origin
la the conflicting opinions between yon and the British authorities as
to your powers and rights as consul. Yon appear to bare placed much
reliance on the remarks of Mr. Webster in his letter to Lord Ashbor-
ton of August 1st, 1842. The case he was discussing differed in an
essential feature from that of the " Reindeer." The " Creole" was
taken forcibly by mutineers into a British port, and Mr, Webster seems
to have considered her in a different situation from that she would
have been in had she voluntarily visited such port. If he meant to
give a more general application to the rules he laid down, the authori-
ties against him are so many and so strong as to render it impossible
to sustain him. The law as to the jurisdiction in snch a case as that
which you have presented, seems to have been settled by the United
States Supreme Court in the case of the schooner " Exchange." — (7,
Cranch's Beports, 135.) The general principle there laid down is,
that " the jurisdiction of courts is a branch of that which is possessed
by the nation as a sovereign, independent power. The jurisdiction of
the nation within its own territory is necessarily exclusive and absolute.
It is susceptible of no limitation by itself. All exceptions, therefore,
to the lull and complete power of a nation, within its own territories,
most be traced up to tbe consent of the nation itself." The harbor of
Hong Kong is British territory; and it is not in dispute that the
" Reindeer" was within that harbor. The British authority, there-
fore, had absolute jurisdiction over that vessel while so situated, and
over all on board of it, unless that authority has in some way been
limited. Limitations are imposed by treaties and established nsageof
nations. The question here to be determined is, whether Great Britain
has, in any way, surrendered her general jurisdiction over merchant
vessels freely and voluntarily entering her ports, or that of Hong Kong
in particular, for trade or any other purpose. I cannot find that she
has ever done so ; and I am not, therefore, able to sustain the position
yon assamed that yon had "sole jurisdiction" over the case of the
*' Reindeer," and that the local civil courts could not interpose in that
matter. The United States have no treaty with Great Britain which
applies to the case, Tbe Supreme Court, through the whole ooorse of
the opinion in the case of the schooner '.'Exchange," oonoede and
admit that merchant vessels in a foreign port are not exempt from the
jurisdiction of the country. It says : "They, [public armed vessels,]
it may be urged, are in the same condition with merchant vessels en-
tering the same port for the purposes of trade, who cannot, thereby,
claim any exemption from the jurisdiction of the country." Again,
the court remarks, " Since it is admitted that private ships entering
without special license become subject to the local jurisdiction, it is
demanded on what authority an exception is mode in favor of ships-
of-war."

Still more explicit is its language in the following extract :
" When private individuals of one nation spread themselves through
another, as business or caprice may direct, mingling indiscriminat^y
with the inhabitants of that other, or when merchant vessels enter for

eiASU. OF JAHES KEENAH. 49

the pnrpoK of trade, it Tronld be obvioaaly iDConvenient and danger-
ODB to eocietf, and would Bobject the laws to continaal infraction, and
the government to degradaUon if such indiridnals or merchants did
not owe temporary and local allegiance, and were not amenable to the
jurisdiction of the conotry."

Throaghont the elaborate decision of the conrt in the case of the
schooner Exchange it is assumed that the jarisdiction of a country
extends over a foreign merchant vessel in its harbors. There are
Beveral other cases which annonnce and sustain the same principle as
to the jnriedictinn of a conntry over a foreign merchant or private
vessel in its harbor as that contained in the case of the scnooner
Exchange, and the doctrine is approved by elementary writers. One
of the most learned and eminent of our jadges has given explicit
sanction to the same doctrine. Judge Story (Conflict of Laws)
eaya: "On the contrary, every nation has an exclusive right to regn-
late persons and things within its own territory according to its own
sovereign will and public policy," This view of the law is fully
sustained by Ortolan, a French writer of mneh repute, in his "Diplo-
mtUique de la Mtr." He maintains that " it must be acknowledged
by the universal law of nations that the porte and roads belong in
complete property to the nation possessing the coasts or shores which
futrm them, and the word property here must be understood in its
most extended acceptation. This right is a consequence of the very
sitnation of these places and the territorial sovereignty under which
the ports and roads are necessarily placed as dependencies, so that in
regard to them there is at the same time the right of property and the
right of empire united."

Again he says, " the nation that possesses a port or road can sub-
ject foreign vessels there to such laws and to such regulations as it
pleases to establish."

There is in my mind no doubt that the State and federal courts of
this country ooDld, if they chose to do so, and would, on any proper
occasion, exercise jurisdiction over any foreign merchant vessel and
its company, in any of our porta, even in regard to transactions which
might take place within our territory between the members of that
company, and they would net yield to the claim of a foreign consul
to surrender that jurisdiction as a matter of right. I do not think
that their refusal to make suob a surrender, if complained of by a for-
eign power, would be regarded as a national grievance by this gov-
ernment.

If you had the authority yon claimed in the case of the Beindeer,
it must be derived from conoessions by Oreat Britain, express or
implied. I have not been able to find any evidence of such conces-
sions, but much to show that none of that character have been made
by her.

In one of the lost books written and published in England upon in-
ternational law (Phillimore's Commentaries) I find this passage,
which seems entirely to cover the case in dispute : " With respect to
merchant or private vessels the general rule of law is, that, except
under the provisions of an express stipulation, such ressels \am no

H. Ex. Doe. 113 1 n,g:,..dtyCoot^lc

50 CLAIM OF JAUE8 E£ENAH.

exemption from the territorial jnrisdictioa of the harbor or port, or,
BO to speak, the territorial waters in which they lie."

It is true that France has, in this respect, made some liberal con-
cessions in fsvor of private ships, hut we must look to British coooes-
eions to justify the claim you asserted in the case of the Reindeer, aa
the transactioQ took place in a British port, and I have looked in vain
for them. It is desirable, I think, that they should exist, particu-
larly in remote countries, where annoyances to trade are more likely
to occur by the interference of civil courts, but questions which yon
have raised must be settled upon the law as it is, rather than on what
it ought to be. I am, however, disposed to think that the State gov-
ernments of this Union would be unwilling to have the immunities of
exterritoriality ^iven to all the private or merchant ships and their
crews which visit our numerous narbors, and we could not with pro-
priety ask from other natioos, in this respect, what we would not in
torn grant to them.

On a considerate view of the case, the President is constrained to
come to the conclusion that you had not the jurisdiction you claimed
over the case of the Beindeer, and that the civil authority at Hong
Kong had the right to take cognizance of the charge which Madison
brought before it against Captain Nichols.

The manner of conducting the prosecution was apparently excep-
tionable, and afforded an ostensible ground of complaint. Though
there is a dispute about many of the facts with respect to this point in
the case, it ia not denied that o£Scers of the police went on board of
the Keiodeer, and without a written warrant took John Madison
from the vessel, who had shipped as carpenter and was there confined.
Unusual as this proceeding appears, it is alleged that it was authorized
by an existing law or ordinance, to which a particular reference is
made, but a copy of it is not found among the papers sent to this
department, and I am not therefore able to say that it is not, in effect,
what it is alleged to be.

Baving sovereign dominion over the place, British authority wonld
be competent to make an ordinance conferring on police officers the
right to enter a vessel in a British port, and make an arrest of a person
charged with an oSence on board without any written process for that
purpose. The proceedings in this respect appear to have been extra-
ordinary, yet I am unable to pronounce them illegal.

If obliged to yield the point, as I think we are, that the Beindeer
and her crew, while in the harbor of Hong Kong, were subject to the
civil authority of the place, we cannot question its right to take cogni-
zance of the charge of Madison against Captain Nichols for the allied
battery and false imprisonment. I do not therefore perceive upon
what ground the objection which was taken in his behalf to the juris-
diction of the court can be sustained.

It is to he regretted that Captain Nichols did not recognize the
authority of the court and present to its consideration his defence.
Had he taken that course and shown, as probably he could, that he
had, in his treatment of Madison, done nothing more than proper disci-
pline required, all subsequent unpleasant occurrences might have been
avoided. As the matter now stands, it is not perceived what complaint

i,C.ooglc

CLAIM OF JAHEB KXESAN. 51

of wrong this goTernment can present to the consideration of Qreat
Britain for redress on accoant of the arrest and proceedings against
Captain Xichols. On mnj such complaint the British government
wonid aetnp and be able to sustain thejnrisdiction of the court at Hoag
Kong, and as Captain Nichols denied its jarisdiot'on, and refused to
appear and make his defence, it will be scarcel; possible to impeach
the sentence against him. In order to make it a case of national
wrong, it will be necesBarj to >how that the conrt had no jurisdiction,
or that it perverted its powers, and acted not only eiTDneoasl7, bnt
cormptly. As the case is presented here, I do not believe that on
either ground an application for satisfaction oan be snstained.

If Captain Nichols was in the custody of the law, as he certainly
was if the court had jnrisdiction over the case, then it was an ofTence
to aid in his rescue.

In the foregoing remarks I have considered the questions raised in
thig case with reference to strict international rights, for in this light
only could they be properly regarded wfaen made the sabject of a
national grievance for which redress is to he demanded.

Though the strict right of the civil authority of Hong Kong to
entertain Madison's complaint and investigate the charge against
Captain Nichols cannot he successfully questioned, yet inasmuch as
the affair related to the discipline on board of a foreign vessel, and the
offence, if any there were, was an abuse of tlie captain's power, cour-
tesy and national comity should have led the authorities at Hong Kong
to decline to act in the case, referring the matter to the government
to which the vessel belonged. Whether Captain Nichols had or had
not exceeded the limits of the powers with which he was invested as
captain of the Reindeer over the crew, in his treatment of Madisou,
might with great propriety have been left to the determination of the
courts of the United States. Had the case been pnt on this ground,
it is to be inferred from the letter of W. T. Mercer, esq. , colonial sec-
retary, of the 2oth of October last, that the object you had in view
might have been attained, bnt your denial of the jnrisdiction of the
civil court at Hong Kong bronght up the question of strict right, and
it appears to the President that the decision cannot be regarded as
erroneous, though the consequenoes which have resulted from the
interposition of the court are regretted.

It is probable that this subject may be presented to the British
government, with a view to some arrangement which may prevent
similar mischief in case of difficulties which may occur on board of
onr merchant vessels between the officers and crews in British ports.

While preparing this despatch unofficial information has been
received that the proceedings against you for heing oonoemed in the
rescue of Captain Nichols have Iwen abandoned. The ground for the
discontinuance of those proceedings is, that the usher had not the
legal custody of Captain Nichols, because he had not been provided
with a written warrant to hold him in custody. Upon examination
of the evidence yon have furnished to the department, though con-
flicting, it does not appear sufficient to sustain the charge against yon
of having aided in the rescue, if .Captain Nichols had been legally in
custody. Though this oonrse towai^ yon may be regarded as an act

52 CliADI OF JAMES KEUTAH.

of disconrtesf, yet, all the oircaiiutencefl oonaidflied, it oau hardly be
treated as an oatrage.

While I am obliged to differ from foa ia regtud to the extent of
yoar powers aa Uoited States oonsal, and therefore your expectation
cannot be met as to the measure of redress which this goTermoeak
onght to claim of that of G-reat Britain, I bear willing testimony to
yonr good iutentiona, to your vigilance tmd perseTerance in di»-
charging yonr official daties.

I am, air, yoor obedient serrant,

W. L. MARCY.

United States Consul, Song Kong, China.

Mr, Keenan to Mr. Marcy.

"So. 34.] niOTKD Statbb C!oitsdlatb,

Eotig Kong, Odober 14, 1856.

Sib: I have the honor to acknowledge the receipt of your despateh
of the I4th of April, conveying to me the views of the PresidMit in
relation to my late difficulty with the British authorities of Hoag
Song concerning their jurisdiction over the internal discipline of
American vessels at anchor in this harbor. Though the Battering
attestation of the President to my *' zeal and attention to the interests
of American commerce and to the protection of American citizens" ia
extremely gratifying, yet I regret exceedingly that his excell«icy
"is not able to CO near" in my views; and although I shall, of coane,
submit to his superior judgment, and forego aotion in fnture in cases
where the local authorities claim jurisdiction over the internal discip-
line of car vessels, yet I shall not, without express orders from the
President or yourself, yield what I look npon as the fundamental
principle, repeatedly declared by our jurists, that in regularly doca-
mented American vessels the flag oovere American territory, whether
at sea or in port, and that the company of such vessels must look for
redress of wrongs inflicted by their officers to the United States autho-
rities, exduding the local laws of foreign ports, when the interests or
the peace of the conuaunity is not affected.

In asserting this principle, without remsting the fntnre action of
the authorities here, in cases similar to that of the "Beindeer," I
presume, from the tenor of your despatch, that I will be carrying oat
the intentions of our government.

The question upon which his exoellenof the Fresideut and yoorself
and the learned Story entertain views diametrically opposite to those
entertained by John Adams and Daniel Webster and Henry Wbeston,
and upon which the opinions of eminent British statesmen conflict,
can hardly be considered settled without a direct declaration of the

fovernment sustaining or yielding the point at issue ; but from yonr
espatch, where you state that though yon are apprehensive that I
have " claimed larger powers than can well be sustained," the British

cum OF JAVBS KsnuH. 63

aathorities bare, on the other hand, exercised those which national
comity usaall} yielda, and should have been yielded in the case of
CaptajD Nichols, and in which yon intimate that it is deairahle that
each concessions should exist, and that though not the law, " it ought
to be," and that "the subject may be presented to the British gOT-
erment with a view to some arrangement which may prevent similar
mischief," I infer that it is not at preeest the intention of the govern-
ment to make any such declaration.

If I have erred in claimiug as American consul " larger powers
than can well be sastained" I have erred upon dicta that emanated
from the State Department. It seems to me that Mr. Webster in his
letter to Lord Aehburton of August 1, 1842, respecting the case of
the '* Creole," inteoded his remarks td apply not only to the case of
that vessel, but as a general principle declared by the United States
government, when he says that " the rule of law and the comity and
practice of nations go much further than those cases of necessity, and
allow even a merchant vessel oomiog into any other port of another
country volantarily, for the purpose of lawful trade, to bring with her
and keep over her, to a very considerable extent, the jurisdiction and
authority of the laws of her own country, excluding to this extent, by
consequence, the jurisdiotion of the local law," and that "according to
the commonly received customthis jurisdiction (of the country to which
she belocgs) is preserved even in parts of the sea subject to a foreign
dominion ;" that " if a murder be committed on board of an Ameri-
can vesscil by one of the crew upon another or upon a passenger, or
by a passenger upon one of the crew or another passenger, while such
vessel is lying in ftport within the jnrisdiction of a foreign state or
sovereignty, the offence is cognizable and punishable by the proper
court ot the United States ;" and that " for the general purpose of
governing and regulating the rights, duties, and obligations thereof,
they are considered as parts of the territory of the nation herself."
Having thus declared our merchant vessels parts of the territory of
the United States, he in a Buhsequent correspondence with the British
commissioner, Lord Ashburton, quoting from the President's message,
dedared that "the territory of the United States must be regarded
as sacredly secure against all such invasion."

In making this declaration Mr. Webster certainly did not lay down
this rule as applicable to particular or isolated cases, but as ^leaton
expresses it, " the only rule which could be adopted and observed con-
sistently with the rights and honor of the United States and the
security of their citizens."

His lordship, in reply to Mr. Webster in the " Creole" case, not
only declared that " the laws and duties of hospitality neither require
nor justity any inquisition into the state of persons or things on board
of American ships in British colonial harbors and waters," bat also
in his r^ly in the matter of the " Carolina" declared that they were
perfectly "agreed as to the general principle of international lav."

Wheaton, in his Elements of International Law, says that " the
American government had announced as the only rule and the prin-
ciple that would hereafter be maintained by our government, that in
every regularly documented American merchant vessel tha arev who

54 OLADf OF JAHES KEEHAK.

navigated it would find their protection ia the flag which was over
them." This volame, the edition of 1865, was forwarded to this
consulate by the State Department, and I, of coarse, regarded it ae my
rule of action.

Mr. Adams, then minister at the Court of St. James, in a letter to
Hr. Jay of September 22, 1787, informed him that the men of several
American vessels then lying in the river Thames had had their crews
taken from them, but upon his representing the matter to Lord Car-
marthen bis lordship assured him that " he would take measures to
bare the men restored, and precautions against such mistakes in
future." I wish here to call yonr attention to the fact that Madison,
the carpenter of the '"Reindeer," was taken from that vessel and
afterwards shipped on board of the British steamer " Unicorn," By
our Commercial Digest I am informed that if a captain of an Ameri-
can vessel " suffer his authority to degenerate into cruelty or oppres-
sion, he may be called upon to answer for the same upon his retnm
to his country ;" and in an English work entitled " The Mercantile
Marine Magasine," published in London, 1854, I find reported the
decision of the Hon. John K. Kane, judge of the eastern district court
of PeDnsylvauia, in the case of Sanders et. al. vs. the British brig
Victoria. In this case the British consul, (Jeorge B, Mathews, pro-
tested against the crew being permitted to sue for wages in a court of
the United States, on the ground that the "Victoria," on which the
libellers and respondent sailed, was a British Tessel. The court con-
curred with Her Britannic Majesty's consul, and " ordered that the
libel be dismissed." It may be said that thecase quoted above was a
question of " civil contract," and that there is a distinction between
tae jurisdiction there yielded and "criminal jurisdiction." lam under
the impression that, no such nice distinction can be drawn as would
give to the local authorities of a port in which a foreign vessel might
be at anchor the jurisdiction in one case, and to the consul of the
nation to which the vessel belongs jurisdiction in the other, when in
neither instance were the interests or peace of the community affected.
The mutiny on l>oard of the American ship "Ocean Express," at
Liverpool, in August, 1855, was certainly a criminal case, yet the
mutineers were allowed to Isod, and the British authorities declared
that "owing to the vessel being under the American flag they were
not at liberty to deal with the cane."

In making my claim to jurisdiction in cases such as that of Captain
Kichols I made no pretensions to such powers and jurisdiction as be-
long by treaty stipulations to the United States consuls in China, but
connned my claim to cases occurring on board of American vessels
between the company of ench vessels in which American interests
alone were affected.

It is true that we have no treaty with Great Britain by which she
relinquishes her claim to jurisdiction over our vessels in her ports, but
it is equally true that we have no treaty with her by which she relin-
quishes her claim to the right of search upon the open seas, yet it is
not to be supposed that our government would tolerate the practice.

Sir William Molesworth, in his speech in the House of Commons,
July 4, 1864, then Secretaiy of State for the colonies, said: "Ko por-

CLAIM OF JAUES KEENAN. 55

tion of the ocean is tbe ezclnsiTe property of aaj State, except that
portion which is temporarily occupied by a ahi^ of a State, and that
a central ahip 19 a noating portion of the territory of a neutral sov-
ereign, its innabitantB are hiB subjects; they are bound to obey his
law and no other law. If they commit crimes on board of the ship
they are tried and puniahed by his penal law," Does not this declara-
^tion include vessels in ports and harbors? It embraces a principle
never yet refuted, that a veMel is a floating portion of the territory
of the nation to which she belongs, and if a vessel at sea ia a portion
of the territory of the nation, does she lose her nationality or betiome
less a portion of that territory upon entering a foreign harbor ? and
if the company of such vessels are subjeots of the nation to which the
vessel belongs, do they become subjects of a foreign gorerument upon
entering a fureign harbor ? If these premises are correct, and I think
all will concede that they are, then the conclusion is immutcible.

The opinion of the French writer. Ortolan, that " the nation that
possesses a port or road can subject foreign vessels there to such laws
and such regulations as it pleases to establish," is indeed very strong
against the pofition that I took, but it mast he remembered that be
wrote for a day gone by. It would hardly be supposed that he weald,
at this day, contrary to the action of his government, sustain such an
argument.

Id the conferences held by the five powers at Aix-la-Cbapelle, Novem-
ber, 1818, the French government, speaking of the right of search,
said: " The immediate consequence of such an institution would be
to withdraw the subjects of H. M. from their natural judges, as they
would pass under a foreign jurisdiction." Mr. Ortolan's views, if
carried oat, would have the effect tfaat his government so much de-
precated. Moreover, the treaty between the United States and France,
of 1853, must overrule those views. Article 8 of that treaty declares
that consuls ' ' shall have exclusive charge of the interior order of their
merchant vessels of their nation, and shall alone take cogaizance of
differences which may arise either at sea or in port between the captaia,
officers, and crew, without exception, and that the local authorities
shall not, on any pretext, interfere in these differences."

If 1 am correctly informed, the exequators granted to British coosnls
by our government concede to them all the rights, privileges, immu-
nities, and jurisdiction " granted to the consuls of the most favored
nations;" it' so, they are placed upon a footing with French consuls,
and, of course, those concessions must be reciprocal.

Tou express the opinion that " the States of the Union vonld be
unwilling to have the immnnitiES of exterritoriality given to all the
merchant ships and their crews which might visit our numerous har-
bors, and we could not with propriety ask from other nations what
we would not in turn grant them."

If the federal and State government entertain this view of the mat-
ter, then the late treaty with France, which grants these immunities,
cannot be carried into effect, and the federal government has not only
made concessions that she had no right to make, but has done injus-
tice to both France and the States ; and we are accepting from a

n,g>-ndtyC00glc

56 CLim OF JAMES KEZNAN.

fomga nation pririleeeB and exemptions nnder the promise of a re-
ciprocation that is not in our power to perform.

The decision of the Sapreme Conrt in the case of the schooner
" Exchange," and the confirmatory opinion of the learned and la-
mented Story, are certainly strong arguments against the opinions of
Mr. Webster and Mr. Wheaton, hut it is erideot that those opinions
were promnlged prior to the treaty of 1863, with France, and certainly-
oar goTernment by that treaty has roMied them of mnch of their force;
and if, as you saggest, I can show "British concessions" to justify the
claim I asserted in the case of the " Reindeer " in this port, they can
have no bearing in this case.

I am informed by a gentleman who was one of the first settlers of
Hong Kong, and for some time clerk of the records, that Captain
Elliot, by whom the English government obtained the island, (in an-
swer to some inquiries,) wrote to Mr. Charles Yanbruggen Gillespie,
the first American resident of the island, (and for some time the agent
of all the American honses,) to the effect that ' ' Hong Kong was to be
held for the benefit of the world, that foreign ships in her waters were
to be deemed part of the territory under which they sailed, and that
there was to be bo interference by the colonial officials with the inter-
nal discipline of those ships." Mr. Gillespie is now, I understand, a
notary public in San Francisco, and I presume can inform the goTern-
ment upon that subject. I enclose a slip from the " Friend of China
and Hong Kong Ghusette, of the 23d of July last, with reference thereto.
Again, in 1854, when the attorney general of the colony and I laid the
suDJect before Commissioner McZiane, in the matter of the " Joshna
Bates," that gentleman sustained me in my claim to the jurisdiction,
and in his presence and that of our present commissioner, Pr. Parker,
(who also agrees with me on the question,) the attorney general assured
me that " there would be no further inter^rence with my action in
snoh cases by the local authorities." The ordinance you reter to I
have never seen, nor do I know that it exists.

I regret that it is your opinion that the conduct of the oEBcials of
this colony towards me, as United States consul, "can hardly be
treated as an outrage." The distance that lends enchantment, per-
haps robs ruffianism of its rndenees ; but to me here it did, and still
does, seem that their conduct in the case of the " Beindeer," and in
that of the " Annie Bucknam," which I lately reported, and towards
myself as United States consul, was a series of outrages — at once a
shame to the government that would practice, and a reproach to the
one that would tolerate them — and for which I trust lull reparation
will be demanded.

I fear that I have trespassed too much apon your time and patience
in this matter, but it appears to me one of such vital importance to
the honor of our country, the interests of its commerce, and the rights
of our citizens, that I have thought it my duty to do so, especially
M you intimate that "it may oe presented to the British gorern-
ment." This, I hope, will speedily oe done, for no matter what the
promises, experience has taught me not to rely upon the Punic foith
of the ofiicials of this colony.

Ab I have forwarded to the department some docummta relative to

CLAW OF JAHX8 SESTIH. 57

ib« capturing of deserters from her BritaDnicMBJeBt7''859th regiment,
who had taken refuge on board of American Tesseie, and delivering
them to their officers, and alBO, in order to show you that the British

fovernmrat cannot complain of a lack of courtesy orjostice from me,I
eg leave to enclose a copy of a letter from Gtovernor Bowringf stating
that he had received instrnctions from her M^esty's goremment to
convey to me the thanks of that government for the promptitude with
which I assisted the authorities on that occasion.

While it is a aouroe of much regret to me that you are obliged to
"difier from me in regard to the extent of my powers as United
States consul," it is with great pleasure that I acknowledge your tes-
timony to my "good intentions, vigilance, and perseverance in
discharging my official duties," and I trust that my official actions
will be Buoa as never to impair that confidence.

In this matter I pursued the course that seemed to me to be clearly
my duty to my country and my countrymen ; and if my feeble efforts
have the effect of securing our national rights, I shall have nothing to
regret from my action. Trusting to your excellent judgment and
diplomatic skill and Lord Palmerstoa's sense of right, I apprehend
that there will be but little difficulty in making a satisfoctory arrange-
ment of the difficoltiee that have occurred between me and the authori-
ties here.
I am, sir, very respectfully, your obedient servant,

JAMES KEENAN, <
United States Coaaui.
Hon. W. L. Mabot,
Becretary of State, W(uhi»gt<m CU/y, U. 8. A.

Ko. 633.] Colonial Sbcrbtiat's OvFtas,

VictoriOt Bong Kong, Aagnat 26, 1856.
Sir : The aid rendered by you in April last to this government in
recovering certain deserters from the garrison having been duly
reported to the right honorable the Secretary of State for the colonies,
I have now the honor to inform you that his ezcelleacy the governor
has received instructions to convey to you the thanks of her Majesty's
government for the promptitude with which you assisted the authori-
ties of this colony on that occasion.
I have the honor to be, sir, your most obedient servant,

W. T. MEBCER,
CoUmial Secretary.
JiufRS Shbitan, Esq.,

United States CoMul.

H.EX.D00.11S— 6 ..„,„Googlc

CLAIM OF JAHE3 KEENIN.

Mr, Marey to Mr. Maaon.

Depakthkht or Statb,
» Wtuhington, December 22, 1864.

Sib : Aunuftl ftppropriations are made for the relief of destitate
American seamen in foreign countries, bnt there have been none, as it
is believed, for the relief of destitute American diueiit. These are
often thrown ashore at vsrioos points in a state of destitution, and are
necessarily to be provided for by onr diplomatic and consular or com-
mercial agents, who are unprovided with funds applicable to this
purpose.

In some instances considerable amounts have been expended by
: them, irom their private means, for the relief of their destitnte coun-
trymen. In some places the local law makes it imperative on
foreign consuls to support the destitute citizens or subjects of their
respective countries.

I have the honor therefore to suggest the introduction into the
civil and diplomatit! bill of an amendment, for the purpose above indi-
cated, similar to the one which passed the Senate at its last session. —
OSee CongressioDal Globe, vol. 28, part 3, 1st session 33d Congress,
pues 1936-6.)

Tout attenUon is also invited to a copy of a despatch, herewith
enclosed, from James Keenan, esq., United States consul at Hong
Kong, who has drawn on the department for |611 58, expended for
the relief of shipwrecked American citizens, who were thrown on his
hands under peculiarly distressing circumstanoee.

This snm has not yet been paid, for want of an appropriation at the
disposal of the department for this purpose.

Under the circumstances of the case, a specific appropriation for an
amount sufficient for the relief of Mr. Keenan is recommended to your
favorable consideration.*

I am, sir, your obedient servant,

W. L. MABCY.

Hon. J. M. Masoit,
Ohturmem Oommittee on Foreign BeUUiotu, U. 8. Senate.

* Id pqnouoe of this noommmiuaoo, u apptoprialioii fn (Iw nlief «f Ur. Embw wm
mtda Manib 3, leCQ.— (See BtatoUi u Luge, toL 10, p. 6G9.)

n,g:,.-ndtyG00glc

S5T1I Cosorass, ) HOUSE OP REPRESENTATIVES. ( Ei. Doc.
M SaaUm. f if""

I No. 114.

TOPOGRAPHICAL MEMOIR OP THE DEPARTMENT OP THR
PACIFIC.

LETTER

THE SECRETARY OF WAR,

The topographical memoir and Tiport cf Captain T. J, Gram, r^itive io
the Territoriea of Oregon and Washington, in the military department
<f the Pacific.

Uakcb 3, 1SS9.— Lkid on the table, and ordered to be printed.

Wab DsPABTHEin;, March 3, 1859.
SiB: I tranflmit herawith the report of Captain T. J. Cram, Topo-
aphical Engineers, on the military department of the Pacific, called
If Dy a resolation of the Hoose of BepreBentativea.
The topographical information contained in thiB report ie, to a great
extent, pTtblished in the reports and maps of the War Departme&t, or
is in coarse of preparation.

A lai^e portion of the report ie devoted to sobjects irrelevant to its
objects, as indicated by the title and the duties of Captain Cram, and
contains aDimadversions upon pnblic fnnctionaries, which ere ont of
place in a topographical commnnication, and which are, in no sense,
sanctioned or endorsed by this department

Very respectfnlly, your obedient servant,

JOHN B. FLOYD,

Seertiary vf War.
Hon. Jahes L. Osb,

Speaker of the Souse tf Bepresentattves,

n,g:,.ndtyC00glc

TOPOORAFmCiJ. IfEUOm OF IHE

• Wab Bepabtkeht,

Office of Ezploratiuns asd Surtets,

* Washingtoii, Fdiruary 24, 1859.
Sib; I transmit herewith the military topographical memoir and re-
port, with maps, od the military department of the Pacific, by Captain
T. J. Gram, Topographical Engineers, called for by a resolotiOD of the
HouBe of Representatives of January 8.

This IB the report to which I called the special attention of the War
Department in a report dated March 1, 1858.

Very respectfully, yonr obedient servant,

A. A. HUMPHREYS,
Captain </ TopographioaL Enginrers, in dtarge.

■MSitary topographical memoir and report, with maps, * oa the United
States miHtary department of the Pacific by Thomas Jefferson Cram,
«aptotn Corps of Ttmoffraphuxi Engineers, dd^ topographicdl engineer,
d^Hment </ the Pacific 1855, '56, '67.

This memoir hag been drawn up by virtue of orders received by
me while serving in the department of the Pacific, under the command
•of Major General J. E. Wool, United States army, of which the fol-
Qowing ia a copy :

Headqdabtebs Dbpartmekt op the Pacific,

Senicia, Ccdifomia, Jane 20, 1855.
Sib: The oommanding general directs that yon prepare a topo-
:naphical mei»oir, or view of the department of the Pacific, and that,
for this purpose, you consult such papers as may be on file at these
headqnarters. Yon will also call upon any officers serving within
the department for such information as they may be able to give yon
in the execution of these instructions.

I am, sir, very respectfidly, your obedient servant,

E. D. TOWNSEND,
Asaiatant At^vkmt Oenertd.
'Captain T. J. Cbak,

Topographical Engineers, Bemcia, Califomia.

Accordingly, the information herein embodied has been derived —

1. From reports, sketches, jonrnals of marches by officers of the

line, containing mnch that is valuable, and from reports of recon-

usissances and maps by topographical engineer officers, as I found

them at headquarters, without, however, having been, as it aeenied

a EnsmvlBf, hs** aot bMn

ity Google

DEPASTMEHT OF THE PACIFIC. 3

to me, previously digested, arranged, and embodied in a naeful shape
for practical military purposes, before being forwarded to the nac
Department

2. From coaTersationB during personal interriewe with many officers
of the line and of the staff (too many to he fapre enumerated) who had
been serving in varions districts of the department, and who seemed
to me to have intelligently calculated the resonrces of the country and
various points of the different branches of the military service.

3. From my own personal obaervations npoa the conntry, and upon
the practical operations of the several branches of the service, daring
a tour of dnty (of from two to three years) in various directions and
at various places, and in various surveys and reconnaissances in the
department in the years 1855, '66, '57, while in the performance of
dnties as senior topographical engineer officer, attached to the general
staff of the commanding general of the department of the Pacific.

In drawing up the memoir and report I have not confined myself
simply to the task of reporting topographical information, but have
shaped all in a manner, while rendering much of that kind of informa-
tion in the text and maps, so as also to meet the requisition contained
in paragraph 481, Army Regulations; hence the double title of "Me-
moir and Report," seen on title page.

Therefore, it will be observed that this will contain what may be
regarded ae a report of the military and other operations connected
with, or having relation to, the military service, as they came nnder
my own observation; and it will likewise embrace my own views, aa
well as the views of other officers when relevant, in regard to various
points, upon which it will be seen by those having the patience to
follow me that I have freely, but I tmst respectfully, commented in
the ensuing chapters.

Not only shall I deem it within the scope of my province to report
what I regard ae existing evils in the working of the military opera-
tions of the regular army, and of the self-constituted volunteer armies
that have been in the field in the department, and of the Indian ser-
vice in its relations with' the army, but I shall feel at perfect liberty
to report eu^estions which, from a source however destitute of pre>
tension, might, if carried into effect, remove those evils, to the great
benefit of the army service in the department of the Pacific.

I. — Otnerdl diecripUon ^ the tmliiary departmeat of the Pacific.

This department includes within its limits the State of California,
the Territories of Oregon, Washington, and Utah, containing 718,367
square miles in surface; to use the language of one of its distinguished
commanders, "altogether, in size, an empire of itself."

Map No. 1 represents its general features, as far as necessary for
general description. The military posts, as now located, are named
in red letters, and are 21 in oomber, viz: nine in California, four in

4 TOPOa&LpmCAI. MEHOIB OV THE

Ore^n, eight in WaBhington, and none in Utah ; others may hare to
be established to meet exigencies. The pbyBical features of thiB great
area, while eminently favorable to secure the Indians and the depre-
dating whites from porstiit, are, in themselves, formidable obstacles
to the transit of troops, with the necessary supplies for anything like
an extended march into the interior of the country.

These physical obstacles consist in numerons ranges of lofty moont-
ains, of great extent, with which the whole department is checkered;
a comparative deficiency in the nnmber and extent of navigable rivers;
the want of saitable natural roads, and the extreme difficulty of making
roads, owing to the formidable obstacles presented by the mountains
all over the department, and, besides, the densenesa of the forests in
Oregon and Washington. The only physical feature at all favorable
to military movements is the great extent of aeacoast navigation, from
the post of San Diego to that at Bellingham Bay, an extent of about
1,400 miles, which may be regarded aa the sea front of the depart-
ment.

Fortunately, this extensive front is famished by nature with good
harbors, viz: the Bay of San Diego at the south and the waters of
Washington at the north; also one of the best in the world, at an in-
termediate point, in the Bay of San Francisco. — (See maps Nob. 7, 16,
2.) This bay, and the other smaller tide-water bays with which it is con-
nected by navigable Btraits and channels, are surrounded by a shore
extent of 200 miles; and they are navigable by sail and ateam vessels
in any direction, and their waters communicate with the ocean by a
deep navigable strait, the "Golden Gate," inside of which etanda
the city of San Francisco. — (See map No. 2.)

With these beautiful bays two navigable rivers (the Sacramento
and San Joaquin) communicate : the former, from the north, affording
steamboat navigation at all stages to Sacramento, 129 miles above San
Francisco, and at high stages 150 miles further up; the latter river,
coming from the southeast, affording similar navigation to Stockton,
115 miles above San Francisco.

The Colambia is the only other river navigable for any extent
piercing the ocean front of the department of the Pacific. — (See map
16.) But the circumstances of the bar at its month (see map No. 3)
will forever preclude it from being a harbor. Nevertheless, this river,
Bavigable, without interruption, up to the Cascades, 183 miles above
its month, and in several reaches above that, and its tributary, the
'Willamette, (see map No. 14,) which alxo has navigable reaches sepa-
rated by falls, are both important in reference to military linee of
communication with the interior of the department.

The Straita of Fnca, and Washington waters generally, (see map
No. 16,) forming an extent of navigation, by Bail or steam, for acme
hundreds of mileB, having connexion with the ocean front of the
department, and having several excellent harbors, also possess highly
important advantages for military movements interior to this front.

Again: the Colorado river of California, though not piercing this
ocean front within our own possessions in the department, is never-
theless of military importance, (see map No. 7,) end it is used by ne

DBPIBTMENT OF THE PACIFIC. O

for military porpoBee, as far as it is known to be oavigable by steamers,
up to Fort Tnma, 125 miles above its month; and sbonld the explora-
tions now in progress prove it navigable higher np, it will become of
stili greater military importance to the department of the Pacific.

The foregoing named natnral channels of interior communication
are of too much importance to be overlooked by any officer connected
vith the military service in the department, and they should be care-
fully studied at the War Department, in every burean, in reference to
their adaptation and connexion with the seacoost front for military
parposes, more especially as all other physical features of the whole
interior, generally, are so adverse that these natural channels must
forever exercise a controlling influence in almost all important opera-
tions to be carried on, whether in establishing posts, furnishing them
with troops and supplies, or executing movements from the posts into
the Indian bonntries. For this study, and for sufficiently minute detail
in reference to these watercourses, maps end topography will be given
in this memoir, all in their proper places, so as to cover the whole
department.

Prom the general topography now given, and ft study of map No. 1
alone, it seems to me it cannot fail to be perceived that, for the
general military business of the department, whether in ordinary or
extrsordinary circumstances, the city of San Francisco necessarily
becomes the principal and permanent centre of that business. Hence
the great importance to the War Department of retaining the military
reserve called Presidio, near that city, and of there erecting suitable
buildings for a depot of trooptt and supplies, and constructing a public
dock; hence the propriety of establishing, and the advantage of
retaining, the headquarters of the department at San Francisco or
the Presidio — an advantage too clesrly to be seen from the general
topography of the department, and the pre-eminent commercial char-
acter of the city, to need evidences of minor or collateral circum-
stances, of which, however, many could be adduced to sustain it.

The operations of an army must, and the centre of those operations
likewise ever be subject, in a great measure, to the physical features
of the country in which the forces are operating.

The business of carrying on military operations in a department
requires labor, materials, and supplies, other than what can be fur-
nished by the soldier or the officer. In the department of the Pacific
labor will always be high, and materials likewise; these, in addition
to the generally adverse physical features of the country, will neces-
sarily cause ail military operations to be very expensive — in a ntio
of from 2J or 3 to 1 to what they would be under the same com-
mander and the same set of staff officers in the department of the
west; and it is well for the War Department, Congress, and the peo-
ple, to be apprised of the reasons why it will be so.

Circamstances are so adverse to transit and locomotion general^
in this department that the duties of all, whether of the line or staff,
when called into the field or to move from one part of the country to
another, become exceedingly difficult and often onerons; and none
more so, for example, than those devolving on the pay officers, whose

Xiocwic

6 TOPOGRAPHICAL HEHOTK OF THE

daties are not only arduoas, but inTolve great pecuniary responaibility.
The poBta are remote, and the means of transportation uncertain. The
routes to be travelled are, in some parts of the conntry, impassable
daring the winter or rainy season, the mountain passes entirely
obBtructed by suow, and the rivers onfordable. During the sammer
months the heat on the plains or deserts to be crossed in several of
the routes is almost insupportable, and water extremely scarce.

The distance to be travelled by the paymaster stationed at head-
quarters, in paying the district under his charge, is 1,896 miles, a
large portion of which being through a country infested by robbers
and Indians. The southern pay district includes the posts at San
Diego, Fort Tejon, and Port Yuma, and the paymaster travels 900
miles, twice crossing a desert of 90 miles in making his periodical
round. In Oregon and Washington the labor of the pay officer, with
all the risks of a new and unsettled country, is by no means to be
coveted. The posts within this district are widely scattered, the
means of travelling even more precarious, and the seasons Jess favor-
able than in California. With all these impedimenta to this branch of
the military service, it ought to be a subject of congratulation that
thus far the treasury has sustained no loss, and the troops have been
paid with much regularity in this department.

The same adverse circumstances operate forcibly to prevent the
officers of the quartermaster's department from condnctiog their
part of the military service so as to elicit from one unacquainted
with these obstacles anything but eocominm in respect to economy,
while to one cognizant of Qie physical features of the country it
would seem a matter of surprise how this class of officers generally
manage, under such difficulties, with as much economy as they do.

To supply the troops with the necessary subsistence at the proper
time iu the various seasons, and of the proper quality, it must be con-
fessed, requires no ordinary capacity in tJie chief of the commissa-
riat in the department of the Pacific, especially when one considers
the difficulties of communicatioa, the vicissitudes of climate, and the
comparatively few districts in which supphes are produced.

In the following chapters much will be found of practical utility
for the foregoing classes of officers, in so far as tho exercise of tbeir
official duties may be dependent on or influenced by the topogrvptkical
features of the department.

II. — MUUary ooMMdero^UMM in re/erence to ilx ocean front tf the depart-
mtnt (^ the Pac^.

This front, extending, as already stated, 1,400 miles, from San
Diego to Bellingham Bay, has now established on it the following
named posts: San Diego, Presidio, Humboldt, Umpqua, Port Town-
send, Steilacoom, Bellingham Bay, all of which are occupied by
troops.

These posts are generally accessible in all eeaaons from San Fran-
cisco by sail and steam vessels. At each, excepting Humboldt and
Umpqua, a steamer is seldom prevented by stress of weather from

DEPIBTUEHT OF THE PACIFIC. 7

enteriog port ; fogs Bometimes caaae delay. Witli the exceptions
QteDtioned, all maybe said to poeaese good harbors; that of Humboldt
requires lighterage, except for vessels of small draught, and that of
Umpqua is difficult to enter except under the most favorable clrcum-
Btances.

There are two other points on the aea front to which, althoi^h not
military posts, some military importance attaches under the circum-
stances existing in the department — San Pedro, to the south, and
Crescent City, to the north of San Francisco — as ports at which
troops and supplies are landed for interior posts.

The United States mail steuners run semi-monthly from San Fran-
cisco to or by all the points above named excepting Port Townsend,
Steilacoom, and Bellingham Bay, regulating their times of departure
and return by those of the United States mail steamers from San
Francisco for New York. In regard to the posts at Port Townsend,
Steilacoom, and Bellingham Bay, a mail steamer communicates from
one to the other monthly, the central point of departure of which is
at Olympia, the capital of Washington Territory. With this town
there is mail communication semi-monthly, (from San Francisco,) via
the Columbia river, to Bainier; thence, via Cowlitz river and over-
land, to the said centre of departure.

A.t all times movements of troops and of supplies by sea in the depart-
ment are attended with great expense, and at any other time than
that corresponding to the starting of the mail steamers with still
greater expense, as a steam vessel has to be expressly chartered.
Still it is only by such a vessel that a given point can be reached in
a specified time to meet exigencies; and, as a general rule, expe-
rience has shows in the past three years that trusting to sail vessels
for this branch of the military business has been attended with more
expense, including damages by long voyage, than by employing
steamers whenever occasion has required a movement of troops and
the transportation of a Inrge quantity of stores from San Francisco
to any of the points named.

When the time of delivery is unimportant, and the quantity of sup-
plies and number of troops quite small, then a sail vessel may possibly
be used with some saving; but in no other case should any but a steam
vessel be used if true economy be sought.

Diatances and times by sea sleamera.

From-

To—

St. mllef.

Vtjg.

330
2SS
3S0
404
783
793
900
1,008
•33

Fort Port Towiaend

<■>

Fort BidUiiEluuii B>7

>nolr

S TOPOOSAPHICAL UEUOTB OF THE

In tte foregoing table the timeB of steaming from San Francisco to
the several pointB are computed at a sea-steamer speed of 9 stattite
. or 7.67 naatical miles per hour, and the table gives a fair average of
the times observed in tne trips of the transport steamers now engaged
in that coast navigation.

From San Francisco, via Los Angeles, it is 434 miles to San Pedro,
and 537 to San Diego, following the road, which is excellent all the
Way, and over which a large hody of troops, with its wagon train,
Conld make good marching time. On this part of the coast, which is
aouUi of San Francisco, there are several points at which from an
enemy's fleet the landing of an invading foe, if andieputed, conld be
readily effected; bat should it attempt a march apon San Francisco
there wonld be found many points on the road where the topography
teaches ua that a resolute body of well-disciplined defenders, of com*
paratively smtOl nombers, well doing their duty, as was the case at
Enena Tista, could annihilate an advancing column, or effectnally
check the demonstration of a much larger force, and compel it to
seek its safety in retreat to its ships, or to make a detour into the
valleys of the Sierra Madro. the Coast range, (see map No. 4;) and
here, if one or two passes be properly defended, an invasion could
never be effectual apon San Francisco, nor could it reach into the
heart of the State of California. A description of these passes will
be given in another chapter. To carry San Francisco, the enemy
wotud thus be compelled to attack it with its fleet.

The time is very remote, if it should ever come, when the southern
part of the State of California will be in a condition to invite an
enemy to attempt to hold possession of that part of it; but if he
should gain a temporary position there he would be dislodged by a
field force ; accordingly, there is no reason why our government should
ever expend a dollar in erecting seacoast fortifications between Sas
Francisco and San Diego. Should this last point, however, become
a commercial place, or the terminus of a railroad to the Pacific, a
permanent fort here might be requisite. But the time for this most
be placed in the remote distance of events to come.

With regard to the coast of the department north of San Francisco,
there is no road at all running along it upon which troops could ope-
rate except in small bodies, and then transportation must be made by
pack-trains. This. condition holds all the way to the Columbia river,
thence to Cape I^attery, also between the posts in Washington Ter-
ritory; nor will there ever be, in onr day, a continuous coast road
upon which a command could march, with a suitable wagon train, for
the whole or even a tenth part of the distence. Passable military
roads, however, may be opened from a few points on this part of the
coast to extend back into the interior. No march of a body of troops
landed from an enemy's fleet would ever be attempted in a direction
parallel to this coast, nor will there ever be anything in the interior
of this most forbidding stretch of country to induce the movement of
each a force into the interior should a reasonable show of defence be
exhibited by a field force. And it may be affirmed, with good reaecm,
that there is no point on the coast of the department north of Saa

Xiocwic

DEPASTMENT OF THE PACIFIC. 9

FranciBCO, or even on the banks of the waters of Washington Terri-
tory, where the conatmction of permanent forts, for at least thfee
generationa to come, would be anything but an extravagant waste
of the pnblic treasure.

In making this declaration I am well aware of enconntering an op-
poeitd opinion of an ex-Secretary of War, who has reported to Coi^ress,
tbrongh the President, that "the physical geography of the vast re-
gion drained by the Columbia river indicates that at some day a great
city most arise at the point which shall become its commercial entre-
p6t Attention has been heretofore called to the neceeaity of fortifying
the entrance of the Columbia river, and I would again commend it to
attention and favorable consideration."

It is not on account of the future greatness here predicted for the
"vast regions drained by the Columbia" that I have quoted this some-
what extraordinary paragraph, but it is in reference to the military
point therein contained that I have called it up for notice. If its
author had studied the chart by the United States Coast Survey, (see
map No. 3,) which was published before the recommendatioii was
made, I doubt if he would ever have come to any such opinion as that
of a "necessity," or even of there being a possibility of defending
the month of the Colombia with any known practical system of fixed
batteries. Nature has already fortified this entrance in a manner to
precludethenecessity of man's adding to the defence, except by float-
ingbatteries.

The minimum breadth of the month of the Columbia is 6^ miles,
from Point Adams to Cape Hancock. Within this the channels vary in
position, in depth, and in crookedness. The mouth is always blocked
by a mass of oscillating sand, called the "Bar." In the channels, at
htgh tide, a vessel drawing 18 feet can seldom pass the bar. These
channels are tortuous, and from ten to fifteen miles in length, and no
vessel attempts to enter or emerge in stormy or rough weather; they
are emphatically fair weather channels only, and very dangerous at
that. Owing to the oscillations of the sand eastward and westward,
northward and southward, the channels are continually shifting their
positions, shapes, and depths, necessitating the constant presence of
a corps of pilots to observe them.

The vertical depth of the blockading sand is over 420 feet before
any bottom could be met upon which to baild a fortification, and at
that depth even we are not certain of finding a stratum fit for fonnda-
ttotts. It is true there is a middle ground, ''Sand island," but this,
as its name imports, is but a sand deposit, liable to wash away at any
freshet; and I think it would be impossible to render it permanent.
From this sand bonk to Point Adams it is 2}, and 3J miles to Cape
Hancock. No works could be built on the sand shoals in the river to
stand one season, and the channels are beyond the range of guns on
the shores, if we except, perhaps, the north one, in its present posi-
tion; but of what use would a fort be on that shore when there are
two other ship channels each far beyond the reach of any battery on
shore?

To one who has seen the Straits of Mackinaw and studied the quea-

c;oo>!ic

10 TOPOQBAPHICIL UEUOIB OF THE

tion of fortifying them, and not seen tha mouth of the Colombia, I
nould observe that the idea of fortifying the latter is more Utopian
than that of permanent fortifications at the former.

It must be by your fleet being outside of the bar in the open sea
to give the enemy battle, or else iu the river, eome three to ten miles
up from the bar, there to wait, allowing the enemy's ships to eDt«r
and then giving battle, that the command of the Columbia is to he
retained; and this last method could be ventured apon with a small
defending fleet by being in positions to attack the enemy's ahipa in
detail, as they would never be able to enter either channel with more
than one small vessel at a time.

It must also be by means of naval defence that the command of the
waters in Washington Territory is to be retained, and not by any theo-
retic^ system of permanent works of forti6cation. Steam floating
batteries are the weapons for these waters.

With regard to the military and commercial centre (see map No. 2)
of the coast of the department of the Pacific it is different. Here the
"Golden Gate" is eminently susceptible of defence by permanent
forts; and whatever difference of opinion may exist in reference to
the expediency of fortifying other points, none can exist in reference
to the wisdom of fortifying with land batteries the entrance through
the "Golden Gate" to San Francisco, to the fullest extent of per-
perfectiou, as speedily as the condition of time requisite for the
solidification of the masonry will permit, notwithstanding the enor-
mous cost to the treasury.

The Golden Gate well fortified, with a full armament futhfully
served, also a few passes in the Coast range welt defended by field
forces, no invading force could seize upon the commercial centre of
that coast, or successfully penetrate the heart of the department of
the Pacific.

UL — MUUarjf eotrndertUums in r^erence to the vaSeyBtfthe Saeramaito
and 8cm Joaqvin rivers.

In the chapter immediately preceding, the seacoast, and certun
views in reference to its defence against a foreign enemy, have been
presented, without special consideration of the aistrictfl interior to the
ocean front. In this chapter (III) I present an interior view of ao
much as relates to the above named valleys, in so far as the topc^raphy
of their features is necessair to enable the War Department, its bu-
reaus, aad, the officer serving in the department of the Pacific, to
realize the physical character of the country, so far as that character
will exert more or less influence upon the military operations that may
be carried on in it. This chapter will also contain, in connexion with
the description of the valleys, some views in reference to a certain
line of policy that haa obtained, and the practical effect it has

n,g:,.ndtyC00glc

DBPASTUEHT OF THE PACIFIC. 11

had upon the military service in the departmeot for the past three
years.

The lower portion of the valley of the Sacramento may be regarded
as being occupied by a eucceasion of beautiful bays, which are repre-
sented on map No. 2. Beginning with the appermost, we have the
Suisun bay, fifteen miles long by seven wide; this is connected by the
Garquinez strait, of four miles in length, with San Pablo bay, fifteen
miles long by eight wide; then cornea a short channel connecting the
last named bay with San Francisco bay, which is forty miles in length
by eight miles in average width.

These bays are bordered by magnificent slopes of most ezcellent
soil, and their shores have a multitude of excellent landings for the
steam and sail vessels navigating these waters. Into and from these
waters ships of large class enter and depart through the Golden Gate.

To the importance of San Francisco in a military aspect I have
already alluded; its importance as the emporium of the east shore of
the north Pacific is too well known to need comment. Its pre-emi-
nent advantages as a military and commercial point are well attested
in the facts that our government is fortifying the gate with works to
defend it under any circumstances; that it has commenced a navy
yard on Mark island, (see map No. 2,) in contemplation to be com-
pleted on a formidable scale, already furnished with ample floating
dry docks which are of very great ose to the naval and commercial
marine in the Pacific; and that it has also established on the Garqui-
nez strait, (see map No. 2,] just above Benicia, an araencd, magazines,
and a depot for army supplies.

In reference to the defensible works in contemplation to be com-
pleted for the gate I have spoken in chapter II,

In regard to the navy yard, there are certain cogent reasons that
may be arged against its being allowed to grow into an establishment
possessing the capacity for anything more than the conveniences
requisite for repairing all kinds of war and merchant vessels. To
bring it to this condition an appropriation of money would be trae
economy, but to foster its growth to a capacity for ship building upon
a large scale would be wasting the public treasure. The forests Uiat
are accessible in the department do not afford timber or lumber of
qoality requisite for the construction of ships, excepting some'of an
indifferent quality for spars and yards procarable in Washington
Territory. The absence of other raw and manufactured materials
necessary for ships, and the high price of labor, and last, though not
least, the want of an export trade, must, for a long time to come,
operate to prevent ship building to any extent on our Pacific coast.

The question was entertained, if not originated, by the late Secre-
tary of War, (and possibly the idea may yet be entertained in the
ordnance department,) of enlarging the present arsenal near Benecia
into an "arsenal of construction of the largest class." Progress has
been bo far made in the project as the ordering of a board of officers
to report upon a suitable site, to be on the present reserve, and their
report has been rendered for the enlargement contemplated.

But the wisdom of appropriating money for executing this deeign

Xiocwic

12 TOPOGBAPHICAL HEHOlft OP TOE

may reasonably be doubted, for the total destitntioD of that coast of
all the chief materials eaeentiul for ordnance parpoees would necessi-
tate their transportation around the Horn; this, together with the high
price of mechanics' labor, at once shows that it will be eaaier, cheaper,
and better, to constrnct all munitions of war to be used on the Pacific
coast in eastern arsenals, and transport them ready made, than first
to transport the raw materials of so gross a nature and afterwards
fabricate them at an "arsenal of construction in the department of
the Pacific;" besides, the project would be attended with a dead loss
of dollars in the excess of original outlay for the necessary bnildiogs,
tools, and machinery, over the cost of a similar eetabliahmeot at any
favorable location east of the Mississippi.

But of the policy of erecting on the present ordnance site (which
is on the reserve) ample magazines for ammunition, storehouses for an
abundance of ordnance and vnall arms, a convenient laboratory and
shops for repairs, and a suitable dock, and a road from it to the build-
ings, there can be no doubt.

The works should partake of the character of an ordnance depot
and an arsenal for repairs, rather than of an "arsenal of constmction
of the largest class." This last is bat the name which would aHbrd
the excuse for annually demanding heavy appropriations under which
would grow up a national armory or national foundry in a portion of
onr country in which there is a remarkable destitution of all the
essential elements entering into the things required to be made in
such an establishment. Suitable wood, iron, and coal for such par-
poses are as yet undiscovered in the department of the Pacific.

The public reserve near Beoicta is well adapted for such an estab-
lishment as herein recommended for ordnance purposes and magazines
for ammunition.

But in reference to the adaptation of this reserve for a depot of
oommissary and qoartenuasters supplies and stores, it is exceedingly
inappropriate.

All such sappties as are purchased, under army regulations, in San
Francisco, have to be shipped from this place to Benicia, a distance
of 30 miles, unloaded upon a dock, carted up a steep hill, unloaded
into the storehouses, inspected, and then, what is not rejected, has to
be carted back to the dock, reshipped upon another vessel, retrans-
ported to San Francisco, where it was when purchased, and there
again transhipped for its distribution to the various posts. Now, as
might be expected, such complexity enhances the cost of the supplier
by at least from 5 to 10 per cent, more than if inspected where Uiey
are purchased, and shipped, as they are wanted, directly to the varioas
posta; and when it is observed that 18 out of the whole number of 21
poata participating in purchases at San Francisco have been supplied
in that complicated manner, it will be an easy problem for the com-
missary department to compute the annual amount thus unnecessarily
burdened upon the army appropriation by a pertinacious perseverance
in a aystom that, for the past two to three years to my knowledge,
has been the subject of severe comment and condemnation in the

n,g:,.-ndtyC00glc

DEFABTHENT OF THE PACIFIC. 13

months of hundreds of highly respectable business men in that
department.

Witness the facts shown in evidence before a coart-martial for the
trial of an officer of the commissariat, that dnring a period of some
months, in which the troops were engaged in suppressing Indian
troubles, the extra cost to the treasury was many thousand dollars,
consequent upon the location of the commissary depot; and provision
merchants of the highest standing testified in evidence before the
court that their bids for supplies ranged from 5 to 10 per centum
above what they would have been could the inspection have been
made in San Francisco in lieu of Benicia.

Fending the investigation of the forenamed board upon the arsenal
fiite, it was carefally estimated by one of the members that all the
buildings on the reserve, used as storehouses and for other purposes
by the qnartermaflter's and commiesary's departments, could be re-
built out of new materials for less than $20,000; I am satisfied this la
a liberal estimate of the whole value, at the present time, of ell the
depot buildings there. The argument, therefore, that because these
flhells of buildings coat the government so much as they did to erect
them they should be retained as a depot falls to the ground; better
that they should burn than to entail such an annual tax, as their
present use necessitates, upon the army appropriatJons.

True economy, in this respect, would be to utterly abolish what is
now maintained at such great cost on the reserve under the title of
"quartermaater's and commissary's depot," and the appendages of
mule teams, vessels, horses, mechanics, and other employes would be
dispensed with. The excuse of necessity can no longer be reasonably
pleaded for keeping up this cnoiherBome establishment, which has
come to be viewed by business men as anything but an economical
appendage to the military service in the department.

The best economy for the present would be to hire, in San Fran-
cisco, the requisite storeroom, for which there are. convenient to docks,
scores of most excellent buildings now vacant, and, as it were, begging
for tenants; but in due time to erect all such buildings at the Presidio
as may be needed for this important branch of the service in the
department.

Having considered the bays of the valley of the Sacramento in
reference to their adaptation for military and naval purposes for all
future time, I pass to the consideration of the greater part of the
valley to the north of Suisun bay, (see map No 1.) The Sacramento
river is wholly within the department of the Pacific, and it has been
thoroughly explored; its general course is south, and it debouches
into Suisun bay, (see map No 2.) Although this river is neither very
lai^ nor very long, it is of great importance, and in most respects
holds the first rank among the few navigable streams on the east
border of the north Pacific. It is at all times Bnccessfully navigated
by steam to the city of Sacramento, 75 miles above its mouth, and
150 miles further up (to Hed Bluffs) in high stagea ol water. This
beautiful river is to California what the Hudson wtoKew York.

II, Google

14 TOPOGBAFmCAL UEUOIB OF THE

24 miles above Sacramento city, and is navigable 20 milea up to
Maryeville, a town of importance near the month of the Yuba, which
is a tributary to Feather river.

The aources of the Sacramento and headwaters of its tribntaricB
from the east and north are high up in the west elope of the Sierra
Nevada mountain range; and here it is for a great extent along the
foot of this elope, in thousands of places. Oold abounds to an extent
which has astonished and delighted the whole civilized world for the
past ten years. This, however, is not the only region in the depart-
ment of the Pacific where it exists. It may be truthfully said it
abounds in many places all over the department On the Sierra elope
the digging and washing of so much dirt to obtain it may afi'ect the
Sacramento, by the vast quantities of earth washed from multitudes of
diggings into it, so as in time to seriously impair, if not to destroy,
its navigation. The present indications are, that this earthy matter
is being deposited in the bays.

The extensive valley of the Sacramento, and the lesser valleys of
its tributaries, afford many fertile regions of soil of excellent quality
for all agricultural purposes; this and the gold depoBits are causing
thriving towns, villages, and even cities to arise as if by magic. The
climate has various phases as we go further from the coast into the
interior, and as we ascend to difTerent elevations on the mountain's
side; and although fever and chills are kno^vn on the streams, it is
generally pronounced a good climate.

The San Joaquin river, likewise, debouches into Suisun bay near
where the Sacramento enters, and drains an extensive tract called
Tulare valley, in which there is a vast deal of most excellent soil,
though there is much of a low and mashy nature. The general course
of the stream is northwestward, coming from the southeastern ex-
tremity of the Sierra Nevada. The river is navigable for steamers
up to Stoclcton, 78, 62, or 4fJ miles (according to which channel is
taken) above its mouth ; up to Stockton, in seasons of high and medium
water, there are three rivers, as it were, each of which is navigable
by steam.

Fort Miller (map No. 1) is located on the nnnavigable part of the
river, 125 miles above Stockton. Tnlare lake is regarded as the head
of the river, though many small streams come down from the Sierra
Nevada slope and join themselves as tributaries to it

Of all the valleys of the Sierra Nevada slope, probably the Tulare
valley is best adapted to the culture of the grape, and for this pur-
pose not excelled by any known grape-growing region in the world.

M a considerable distance southeast of Tulare lake stands Fort
Tejon, (map No. 1.) This fort commands the head of this valley,
where there is an extensive Indian reservation. It occupies one of
those important passes (spoken of in chapter II,) which, if well de-
fended, would prevent the ingress of an invading force, landed on
the southern coast of the department, into the heart of the State of
California. It is in this respect that Fort Tejon, although now im-
portant in reference to Indians, may be of greater importance in
future, and accordingly it should be kept up as a permanent post

Xiocwic

DEPARTHENT OF THl PACIFIC. 15

It wilt be seeD that the Tulare &nd the Sacramento valleys, tmited,
form a very extensive tract of country stretching far along the west
alope of the Sierra Nevada range; constituting by its extent, its fer-
tility, its settlements, the commerce on its rivers, its climate, its rich
and inexhaustible gold mines, the great heart of our Pacific posses-
sions.

The passes through the mountains at the Boutheasteni extremity of
this tract become the strategical points, which, with the Golden Gate,
if well guarded, will insure permanent possession of this most valu-
able tract against any invading aridy that coald be landed on our
Pacific front.

Forts Miller and Reading derive their only importance from being
in convenient positions, as temporary posts in the district, to keep
order among the Indians and whites; and for a similar purpose a new
dragoon post may be necessary in the Pit Biver valley, seen on map
No. 1 coming down from the northeast of Fort Beading.

Between Fort Tejon and Fort Miller it is a good country for dra-
goons to operate in. It is a march of nine days for one company
with its wagon train, and the distance is about 200 miles from fort to
fort. From Fort Miller to Benicia barracks it is 18T miles, and a
march of ten days for such a command. There is no difiGculty from
heaviness of roads on account of rains, between the middle of May
and the first of December, for a body of dragoons to march from Fort
Miller or Fort Beading to the new post recommended to be estab-
lished in Pit Biver valley, keeping well in towards the foot hills of
the Sierra Nevada. It is in this district of the department, after
having the new post established, that the dragoons could be profitably
employed by occasionally showing themselves to the Indians in that
quarter.

rV. — Military connderaiiona in r^erence to the aotdheaat part <^ the
dqaartment of the Pacific.

This chapterwill contain the military topography of the department,
east of the head of the Tulare valley and the Sierra Nevada range,
to the Colorado river, and from the seacoaet as far north as to include
the sink of the Mohave river and the southern rim of the Great Basin.

Map No. 4 gives the country to the north, northeast, and north-
west of the port of San Pedro, including the strategical pass as through
the coast range of mountains, called the Sierra Madre, in the southern
portion of the State of California.

Tejon is the name borne by the south part or extremity of the
Tulare valley, referred to in the preceding chapter, and lies immediately
at the base of the mountains where the Sierra Nevada and Sierra
Madre come together. The Tejon is an excellent area of soil including
the United States military reserve, selected for an Indian reservation
in 1853. The place marked Depot Camp is a beautiful g?;(|p

16 TOPOOBAI^ICAL HEUOIB OF THE

of oaks near a creek, and snrrooDded by as abundance of grase. It
is in latitude 35° 2! 47" north, and longitade 11S° 43' 31" vest of
Greenwich, and elevated 1,500 feet above the sea.

Faages in the Sierra Nevada. — !. C<i^ada de hu Uvas, (vaOejf of the
grape.) — From the eonthem corner of the Tejon there is a gap in the
mountains, running soatheasterly, that is named Caflada de las Uvas
Paas, through which there is a tolerable wagon road (for a mountain
goi^e] that may be taken in going to Los Angeles. This pass is said
by Lieutenant Williamson, Corps Topographical Engineers, who aur-
veyed it, "to run around the south end of the Sierra Nevada," and be
treats it as dividing the Coast range, in the southem part of the State
of California, from the Sierra Nevada range.

From its northern entrance we ascend a brook running into the
TejoD and fed by springs situated about halfway np to the eammit
of the pass. In the vicinity of these springs is Fort Tejon. This
post was eBtablished, by order of Major (General Wool, commanding
the department, in 1854, after approving the selection for the Indian
reservation, whose shape and position are more clearly exhibited on
map No. 6. The fort is somewhat to the south of the reserve, though
within couvenient distance of it, and it is ondonbtedly the best poeition
that could have been selected for the purposes intended by it. From
the importance of this pass, in a military point of view, in regard to
the Indians in the surrounding country, it is reasonable to infer that
Fort Tejon will be kept up, notwithstanding the effects of an earth-
quake severely felt there last January, so severe as to injora the
public buildings, and to drive the troops into the field for more safety
than they could realize within doors. The shocks continued more or
less violent for two to three days.

There is a wagon road from Fort Tejon to Fort Miller, tlie length
of which is about 200 miles. From Fort Tejon, by the wagon iwd
through the pass, via Lake Elizabeth, San Francisquito (Tnmer's)
Pass, and ^n Fernando Misson, to Los Angeles, it is not far from 100
miles. A command of troops with its wagon train performed this
march in 4 to 5 days in the summer of 1855.

2. Tejon Past. — This runs from the northeastern angle of the said
reserve through the Sierra Nevada; and there is a bad wagon road
throngh it leading to the plain on the east si^e of the mountain range.
From the reserve to the plain it is 18 miles; thence to Lake Elizabeth
it is 24 miles, making the distance between the reserve and the lake
42 miles by this rout«.

8. Ta-hv}-ha-pa Paaa is about 6 miles north of the Tejon Pass, (see
map No. 5,) and also leads throngh the Sierra Nevada range into the
said plain; there is a wagon road through it; its summit is 4,020 feet
above the sea, and lower than the snmmit of the Tejon Pasa bjr 1,265
feet. The creek seen on the map bearing the same name, bat some-
times called Walker's creek, is a tributary to Kern river.

At the head of the creek there is a beautiful prairie, 10 miles long
by 4 wide, surrounded by high monntains. The waters from the east
end of the prairie mn into ^e Great Basin, so that the prairie is here
the water shed of the Sierra Nevada. There were Indian rancherias

tioiwlc

DEPABTUEKT.OF THE PACIFIC. 17

in the prairie in 1853, when Lieutenant WiUiamson surveyed this pusa,
which he regards the least iltflScult of any in the Sierra Nevada
through which to construct a rulroad.

There certainly can be no very serious difficulty in constructing a
good wagon road through it. In descendiug from the prairie, following
the creek, (called Pass creek by Fr&nont,) the fall for 16^ miles
averages 157 feet per mile; the steepest grade is for IJ mile, at the
rate of 192 feet per mile. Timber is abundant along the valley of
this stream. On tbe east of the summit prairie, as we descend into
the basin, for the first 6 miles the fall is less than 80 feet per mile,
and furUier down the slope is more gradual. By passing from the
prairie more directly by a sootheaaterly direction into the basin (as
did Fremont) it is possible we might have a better route for a wagon
road from the prairie towards the Uohave river.

4. Waiier'a Paes is, according to Lieutenant Williamson's recon-
naissance, 43 miles in a direction N. 30° E. from the prairie head-
waters of the Ta-hic-ha-pa. This places it 6 miles south of the 6th
standard parallel south of Mt Diablo, (map No. 5).

From Kern river, ascending the Chay-o-poo-ya-pah, it is 17 miles
to the western extremity of the pass; thence to the summit it is 8
miles, where we are at an elevation of 5,300 feet above the sea; from,
the summit to the eastern extremity of the pass it is 8} miles.

Kern river is a bold, rapid stream, with stoep banks and a narrow
valley; it cafions 50 miles above Kem Lake. This lake is the head

!)roper of the Tulare valley waters, and is only 400 feet above the
evel of the sea, and lower by 1,600 feet than the westam extremity
of Walker's Pass.

Qold mining on Kem river is snccesafully prosecuted; the quartz,
in which it is found there, is of a friable nature, reudering it easy of
pulverization; it contains some silver, which diminishes the value per
ounce, but the ease with which the quartz is reduced to powder
probably compensates for the presence of the less valuable metal.

The route via Kem river, the Chay-o-poo-ya-pah creek,and Walker's
Pass is a good one for connecting the Tulare valley by a wagon road
with the Great Basin east of the Sierra Nevada range. The Kem
river part would be expensive, owing to the culon and the nearness
of the spurs to the stream on either side in several places, but the
grade on this part would not exceed 30 feet average per mile for 55
miles; in some places of this, however, the grade would exceed this
average very considerably. On the Chay-o-poo-ya-pah they would
not exceed 29 feet per mile anywhere. In the pass there would be
only 1^ mile where it would exceed I foot rise to one rod horizontal,
ID the steepest of which reach it is 1^ foot rise to one rod horizonta],
in the other parts of the pass it would not exceed 10 inches to the rod.
The length of the route between Keru Lake and the east end of the
pass is about 80 miles.

The valley of the Ghay-o-poo-ya-pah is an Indian resort for gather-
ing a sort of cane, upon the leaves of which is a kind of sugar,
obtained by sun-drying and threshing the leaf. Good camping places
for a cfflnpany of djagoons are plenty m this valley.

H. Ex. Doc. 114 2 ii,CoO(^lc

tS TOPOORAPHICJLL KEUOIB OF THE

PASSES IN THE BURBA HADBB.

1. San FrancUquito Pass it now called Tamer's Pass. Through
it the roads from Cafiada las Uvas, Tejon, and Ta-hic-ba-pa FasseB
all roD to the SaDts Clara valley, (map No. 4,) on the south Bide of the
Siert-a Madre (or Coast) range. In this (Tnnier'B) pasB "the road
for many places is in the bed of a moantain ptream throngb rocky
caBons, and in several places at grades of 320 to 47S feet per mile."

2. Sdedad Faaa. — This was named by Ijeat. WilliamBon, whose
party sarreyed it, "New Pass," and in bis opinion it poaseBScm leas
disadvantages than any other for running a railroad across this part
of the Coast range. In ascending the pass from the rim of the Great
Basin the steepest part is only one mile in extent, and the rate of
ascent 218 to 240 feet per mile. The sammit is 3, 164 feet above the
mean sea level. Descending towards the Pacific, in a reach of 6}
miles, the grades do not exceed, in any place, 105 feet per mile.
"There is no obstruction for a wagon except fallen trees. His pass
leads into the Santa Clara valley near where the wagon road tfaroi^h
the San Francisquito (Turner's) enters the same valley, from which
point there is no obstruction to the ocean."

From these facts it would seem that for military purposes, requiring
heavy wagon trains, New Pass would be better to improve for a mili-

rtary road from San Pedro to Fort T^on than Turner's Pats, especially

;a8 the anmmit of the former is 272 feet lower than that of the lattor.
S. jStm Fernando Pass. — On the south side of Santa Clara valley is

la spur of the Coast range, called "Susannah," which is croosed

[through this pass in travellii^ between the valley and Los Angeles.

'The pass is 9 miles long, and its crest is 1, 940 feet above the sea level.

'The road is dtf&cult, though practicable for wagens through the pass.
S'fom San Fernando Mission the country may be traversed easily in
almost any direction toward the coast and to San Bernardino.

AsiloDg as the military post, Fort Tejon, is kept np, the road from

-San Pedro via Los Angeles, through the "San Fernando Pass,"
thence across the Santa Clara, fmd np either the San Francisqnito
(Turner's) or up the Soledad (New) Pass, will have to be moro or less
used for milito^ purposes; and there ought to be a liberal appropria-
tion imade out of the public treasury for improving all of these passes.
The sum of $30,000 would be sufficient for Uie purpose. It is
through this route that supplies reach Fort Tejon.

4. CtJ^oa Pom, (map No. 4.) — In coming from "Depot Camp" on
the -Mohave, by the old Spanish trail, which is a good wagon road, the
distance is 19 miles to the summit of this pass. The ascent from the
nortii is 'easy. From the northern extremity of the pass to its aom-
mit it is 2^ miles; thence descending southeasterly, following the
Cajon creek, it is steep for 1^ mile; thence for 6( miles it ts earier,
the grade beii^ 200 feet per mile; thence for the next 6| miles 100
feet per mile. The whole distance from the summit to the nontiieni
extremity of the pass is 14 miles, and from this extremity to San Ber-
nardino it is 14 miles — making the distance between the Mobave

tioiwlc

VBPAITlCBrT OF 1SE PACIVIC. Id

and this town, 47 mileB, which, for a moantain pass, haviDg its snmmit
4,676 feet above the level of the sea, is a tolerable wagon road.

Sycamore Orove is on this route, near the mouth of Gajon Cre«k.
It is here that Oenend P. Smith, United States armv, thought of
establishing a poet, when in command of this department. Lient.
Howry's detachment, idler marching from Salt Lake valley, encamped
here for one week. I doubt not it would be found well anited for a
poet, should one be needed in this dtetrict. It would be supplied
through the port of Sao Pedro with all each necessary articles as are
not produced in that region.

6. San Oorgonia Pass, (see maps 4 and 6.) — ^Mouit San Bernardino is
said to he the highest peak in the range, and 9,000 feet above the
sea. Southwest, at a distance of SO miles, is the peak San Jacinto,
nearly as high. Between their bases lies the GorKonia Pass — one of
the lowest in the coast range — being at its summit 2,800 feet above
the sea. The grades in this are easy, and there is no great difficulty
in passing a w^on train through it. From San Bernardino to the
snmmit of the pass it is 27 miles; thence to ite eastern extremity
18^ miles; thence to Fort Tuma on the Colorado, in a strught line
across the desert bearing N. 85° £., the distance is 130 miles.

NOKtH OP THB COAST SANOB.

J/bAow river, (map No. 4.) — ^I shall here give resnits of the
exploration of this water-course, by Lients. Williamson and Parke,
Corps Topographical Engineers, in October and November, 18S3, and
other results corroborative, which I have obtained from notes of the
land surveyors kindly furnished me at the United States surveyor
general's office in Stui Francisco. It is from these notes that I have
constructed maps 5 and 6, and filled them with all the topography
obtained up to the beginning of the surveying season of 18S7. It
will be seen that I have given the whole of the Mohave and its sink,
also a definite position of a part of the hitherto unexplored Colorado
above Fort Yuma.

The Uohavfl takes its rise in the northern elopes of the San Bernar-
dino mountains. The country near its source is so rugged as to
render travelling there upon mule back very difficult, and often
impossible. It is impossible to cross the mountains here with wagons.-

At "Depot Camp," marked on the map, the river is hroad and shal-
low in autumn. Its banks here are well wooded, and its bottom is
confined between terraces on either side, from one to three miles
apart; as we descend from here the water, however, soon sinks in
the sandy bed, reappearing generally at a point of rocks, or where
a contraction occurs. Timber exists in places along the direction of
the river, hnt generally disappears with the water. About 30 miles
below Depot Camp it appears at a point of rocks and flows freely,
but only for a short distance. From here, following a broad river bed
for 35 miles, "we come to a ctuion about 7 miles long, having running
water through its whole extent. In this caBon the bed of the river
is from 100 to 150 feet wide, and on either side the clay blnflb rise

C.oiwlc

20 TOPOORAFHIGUi MEHOIB OV THZ

over 100 feet in height vertically. These baokfl preeent the appear-
ance of gothic pillara, and the claj of vrhich they are composed is of
every variety of tint — purple, pink, blue, yellow, Ac. In the c^oa
oane was growing, and large quantities had been cat by the Indiana."

' 'On emerging from the ca3ou a sandy plaia is met, and all aigns of
the river bed are lost It is 13 miles across this plain; upon it there
is an abundant growth of mezquite trees, and some old abandoned
Indian huts. To the north of this plain there is a salt lake bed, on
the edge of which, at the base of the hills, there are several fine
spriiiga, slighUy brackieh, but not unpalatable; aroand there was
good grass in November. Farther to the north there is another salt
lake bed of hard clay bottom. The two are from 3 to 4 miles f^art,
connected by a ditch 20 feet wide and 2 feet deep."

Lieut. Williamson concludes the first of these lake beds to be the
true sink of the Mohave river, and his reasona fen* the opioioo are
founded upon his own observationi.

From the Depot Camp, I find by the plots of the land surveys, the
distance is 90 miles to the border of the lake bed that is regarded a»
the sink. The bearing of the siuk from the camp is N. 63° E., and
the ehortest distance from the sink to the Colorado, into which it waa
formerly supposed the Hohave ran, is about 66 milee.

From Depot Camp to the Uohave Indian settlement on the left
bank of the Colorado, 6 miles above the entrance of Williams' branch,
it is about 156 miles, and the direction is M. 83° B. Following this
direction we should come to the south base of Providence moontains,
where there are several springs, at a distance from the camp on the
Hohave of about 80 miles.

This same direction would leave a volcano to the north, situated
about 15 miles from Depot Camp in a direct line to the sink. And it
would pass over rough mountains and between two cAA craters, which
are about 54 miles from said camp.

I have been somewhat particular in describing these landmarks, so
that in case of a necessity of troops being ordered into this district
between the Mohave and Colorado, they may easily find their way
over this desolate region.

Of the Great Basin, maps 4, 5, 6, show the rim, as it were, of that
portion immediately north of the Coast range, and east of the aonthem
extremity of the Sierra Nevada, as far as the Colorado. From the
base of the Coast range northward there is a belt of undulating land,
15 to 20 miles in width, and unbroken by peaks. This belt stretches,
as seen on map 4, for nearly 100 miles to the headwaters of the
Hohave. From the eastern extremity of Tejon Pass, in a direction
following the bases of Lost Hills, for 30 miles there are several springs
to be met, from which issue little streams, sinkiog, however, in the
dry soil after rnnning a few yards. In coming westward from the
Mohave, on the route seen dotted on map 4, Lieut. Williamson foond
no water. "Independent of the Lost Hills, the country is a system
of inclined planes, in which the grades often approach 100 feet per
mite. There is no timber; the snrface is gener^y bare, or covered
with sage bushes, greasewood, ynca trees," Ac,

ii,Cooglc

SKPABTimiT €fP THE PACDIC 21

In proceeding from Lake Elizabeth with a wagon train along the
north base of the Coast range, by keeping close in by the foot hills
water and grass may be had at convenient distances, for camping a
marching command of one company of dragoons, and perhaps two.
There are aeveral springs on the route, and a bold stream (Johnson's
river) emeiges from the hills, bat immediately sinks on reaching the rim
of the basin. From this river to the Spanish trail the coantry is filled
with ynca trees and bashes. In October, 1853, Lieut Stoneman con-
ducted the wagon train of Lieat. Williamson's party over this route
from the Tejon, through the OdUda.de las Uvas Pass, without much
difficulty, to the Mohave river

Id the part of the basin immediately north of the belt aforesaid
* ' is a system of isolated peaks and short ridges, known as Lost moon-
tains, and which, as they extend north and increase in height, become
worthy of the name of mountain ranges. These often enclose ex-
tensive areas which are destitute of peaks, and in the lowest part,
where water accumulates after heavy rains, is a lake bed without
water io a dry season."

Therefore, were an ezpeditton undertaken, with an object requiring
a march into or leading through this extensive region, at the time of
a dry season, difficulties of no small magnitude, in respect to obtain-
ing a sufficiency of water and grass, might be encountered by the
command.

SOUTH OF THB COABT RANOB.

From map 4 it might possibly be inferred that the southern slope of
the Coast range in tbis district is beantifully and abundantly watered at
all seasons throughout the whole country; nothing would be more erro-
neous than such an idea. The numerous dark lines shown on the
map as so many head branches of the Santa Clara, the San Gabriel,
the Los Angeles, and the Santa Ajina, only indicate the natural drains
from the monntain gorges and ravines in times of an abundance of
rain. In the dry seasons very many of these have not a drop of water
in them. Nevertheless, this district is a fertile country, abounding
in grapes and other fruit, good pasturage and grain. The towns and
▼itlagee are small. There are, however, a goodly number of settle-
ments scattered over the country; it has several old missions, also
aefVeral Iwge valuable ranches. San Bernardino is settled principally
by Mormons.

n,g:,.ndtyG00glc

82 TOPonupnicAL memob or tbk

IHctum from—

TO—

WlM.

But attKBiltir Oorgoni* PMi

BmI extremltT Bw Ooqmita Pm....

8«ii 0«bri«1, (CTMk croNliig)

fV>it TgJod M* Turner's Pm

BAST or BAIT DOGO TO PORT TUHA.

This portion, which is the eoathemmoBt port of the militaiy depart-
ment of the P^ific, is, as much as we have occasion for, seen on
map 7.)

I have already apokeo, in chapter U, of San Di^o being in poa-
sesBton of a good natural harbor for conuneroial and, by conwqnenoe,
for military parpoaefl, in their relationa with the soathem part of the
department.

There is no navigation in the San Diego river; all that the govern-
ment expended here for the improvement of the month of the
river seems to have been little better than thrown away, from not
following np the first appropriation with another sufficient to bring
the work to a condition of aecnrity against the next year's freshet.

This is the port at which troops from San Francisco, or other ports
north, are landed, to inarch thence either to Port Ynma or to other
points, as needed in the extreme southern portion of the departmenL
We now have troops of the 1st dragoons and the headquarters of
the regiment at the Mission of San Diego. It has been (until quite
recently) a one company artillery post for ten years past.

BWAKnmtT OF THX PACIFIC. 2S

The field of the battle of San Pasqnal, of the 6th and 7th of Decem-
ber, 1846, IB marked on the map. It was here that oar troops, under
Colonel Kearney, and the Californians, under General Pico, nad their
obstinate contest for two davs before the latter were forced to qnit
the field.

From Sao Diego there is a tolerably good road running directly
down into Lower California of Mexico; aim from here there ia a

Passable road for wagons via San Pasqnal, San Felipe, &c., to Fort
'una; also a pack trail leading more directly over the mountains.
It is the wagon route to Fort Tuma that will be more fully described,
as it is the route the troops are obliged to follow.

From San Diego to San Paequal, 39 miles, and thence 12 miles to
Santa Marie, the road is good for wagon trains, and the grazing and
water on this reach of 51 miles are good the year round. At Santa
Marie the pack trail from San Diego comes in, shortening the distance

14 miles. From San Paequal valley the road crossee a spur, ^Yhich
it 18 jmposeible to avoid, so steep for four miles that a team can only
haul haif the load with which it started from San Diego.

From Santa Maria to San Felipe ranch it is 43 miles. On this reach

f;rasB and water are plenty, and grass for 6 miles further. At Santa
sabel, 15 miles from Santa Marie, the pack trail leaves the wagon
road and passes to the right; from 8 miles beyond San Felipe to the
Jornada there is little, if any, graziug, and no water. Immediately
on leaving the Indian hut at Sen Felipe we are on the desert. Forage
most be taken for the animals in crossing this desert.

From San Felipe to Vallecito it ie 18 miles, and water is found 13
miles from San Felipe, or 5 miles before coming to Yallecito; thence
to Coresito (cane) creek 18 miles. The road is very heavy, it being
sandy. The water of Cane creek sometimes poisons animals. From
Cane creek to Sackett's Wells it is 21 miles; thence to Big Laguna,
OD or near New river, 10 miles; thence down the bed of this river
for 10 miles to " Camp Salvation." It was here that the immigrants
of 1849 met the river coming up; this was a flow caused by the freshet
of the Colorado for the first time in ten years; a most fortunate cir-
cumstance for those people, who had been 50 hours from any water.
We thus make the reach frcMn San Felipe to Camp Salvation, on New
river, 77 miles by the road.

On leaving New river the next point of importance to be reached
by the traveller is Alamo Muchos, 12 miles. Here there are wells
affording water to man and beast. From the Alamo Wella to Indian
or Cook's Wells it is 30 miles. The road is level and of heavy sand
on this reach of 42 miles. From Cook's Wells to the Colorado it is
16 miles, and the road is good, coming out on the river at Algodonee,

15 miles below the junction of the Gila and Colorado. Fort Yuma
is at this junction, on the right bank of the Colorado. We thus make
the road 244 miles long between San Diego and Fort Tuma. A por-
tion of the road, as seen on the map, ie within Mexican territory.

It takes 7 days to make the journey by a wi^n conveyance, and 5
days on horseback by the pack trail. The desert is sometimes cov-
ered with water from rain. The soil is so compact as to hold water
for some time. ,CiO(v;lc

24 TOPOOBAPHICiX KEMOa OF THE

The marcb between San Diego auA Fort Yoma iB exceedingly
laborioae and difficult for troops to perform, etill it haa been BacceBB-
fully accompliahed several timea. Brevet Major Beyoolds, of the 3d
artillery, marched his company acroas, moat sncceBBfnlly, in the
month of Aognst, 1855, withont the loee of a man or animal, id 10
days.

Colorado river, emptying into the Oolf of California, divides thi
Mexican from the United States posseseiimB ap to a point 50 to 60
miles north of its month, above that it is wholly within the United
States territory. It is snccesefully navigated by steamers of very
light draught up to Fort Tama, by the river windii^, 126 miles
above its month. The Gila is said by acme to be navigable in high
stages for some distance, but little or oo dependence can be p)aoed
on its navigability at any time. In relation to the Colorado below
Fort Yuma, I qnote from the repu't of Lieutenant Derby, Corps Topo-
graphical Engineers, who says: "It has a strong cnrrent, and tfae
channel in somewhat obstructed with enags, and ie narrow, and the
frequent shifting of the sandy bed makes the navigation quite intricate.
The action of the tide ceases at about 40 miles above ita month. It' is
impossible to sail up the river above that point. At its month there
is a depth of two fathoms of water."

There are now no towns or settlements of any importance mi the
lower Colorado, and the valley ie forbidding in the extreme.

The whole course of the river froia Fort Tama to the Onlf may be
said to be through an exceedingly uninteresting desert. The climate
of the valley is well calculated to enervate human enet^y. The ex-
tremes of temperature are auch as to show the maximum to be 116
degrees F., and the minimum 36 d^rees, at Fort Tona doriu^ ttn
year; and the annual fall of rain amounts to only 1^ inches. The
heat of the summer is such as to preclude bodily exertion in the open
air, nevertheless the troops are generally very healthy, and the poet
is undoubtedly in the very best position that conld have been found,
and its importance is being more and more appreciated every day.
The new mail route between San Antonio, Texas, and San IMego,
California, passes by Fort Tuma. The first mail was recently oamed
through in 34 days from Sen Antonio to San Diego.

Fort Tuma is supplied from Benicia depot by means o! a govern-
ment sail vessel, as far as to the head of the Gnlf of California, tbence
by steamboats, of which there are two plying on tbe lower Colorado^
and owned by individuale. These boats do all the traneportation od
the river.

The trip of the sail vessel from Benicia, out and back, genei^y
consumes three to four months. The voyage is necesaariiy long.
The shortest steamer run from Benicia to the mouth of the GokmSo
is 2.110 miles; this furnishes some idea of the distance a Bail veMol
would run to perform the trip. From our military post, San Diego,
to Fort Tuma, the steamer ran by sea is 1, 62d miles to the month ot
the Colorado; thence by river 125 miles — ^in all, 1,750 miles. The
overland wagon road distance between tbe bame posts, aa before said,
is 244 miles.

In a late report from an officer of high rank and conuaanding poei-

OSPAvnonit Of thb pacific. 2B

tion, io referring to the desert and the difficultiefl in the way of sap-
plying Fort Yama, he forcibly and tmly remarks: "The route to
Fort Ynma is by land in part, and by water entirely, within the terri-
tory of Mexico." He proponnde the question: *' Would it not be
sound policy to sabmerge the desert from the Colorado and convert
thus a barren waste into a navigable lake?"

Did this question not emanate from one high in position, and, by
consequence, one whose opinion might be supposed to carry weight
even to conviction, I would not notice it here, by affirming that such
a project is practically impossible to execnto, even admitting the data
to be true upon which he bases the idea of converting the desert into
a smiling lake of navigable water.

The Colorado above Fort Yuma is very imperfectly known, except
the small portion shown on my map, No. 6 It has never been ex-
plored wi& a view to develop its capacity for navigation or adapta-
tion for the abode of civilization. Should it prove sneceptible of
eteam navigation, even though it be no better than the lower part of
tbe river, it will become highly advantageous for carrying on military
operations in the department of the Pacific, in bo far as they may
have relation to Utah.

The stories of aome old trappers and Indians, who presume to be
familiar with the upper Colorado, would almost make us believe that
its banks in certain places are gilt with gold, and at others paved
with copper, iron, and even silver and precious stones. The explo-
ration lately ordered by the Hon. Secretary of War, it is to be hoped,
will solve tne several interesting problems connected with this river.

V. — MH^ary ccm3iderations in r^erence to the Utah portion af tJie d^art-
mmt (^ the Pacific.

Uap No. 8 represents em much of the Territory of Utah as is neces-
sary to be referred to in order fully to comprehend its military con*
nexion with the other portions of this department.

There are three prominent routes, marked in red on the map, con-
necting Utah with the other parts of tJlie department, viz : with the
sonthem part of the State of California, the middle part of that Stat«,
and the Territory of Oregon,

Sott^em route. — ^This may be regarded as starting from the port of
San Pedro, (see map No. 4,) and passing through Los Angeles, the
Cajoo Pass, in the Coast range, to the Mohave river. This reach of
ilO miles, from San Pedro to the river, has been sufficiently de-
scribed in chapter IV. Again, from Fort Tejon, a command could
ftart and pass through tbe Cuiada de las Uvas, as also mentioned in
that chapter, and follow along by tbe foot-hills of the north slope of
the coast range, and intersect the road from San Pedro at the Mo-
have. This route from Fort Tejon is indicated on maps Nos. 4 and
5, and the length of the route is 107 miles.

From this intersection, which may be regarded as at Depot Camp,
on the Hobave, the road follows generally the right bank of tbe river
for a diatance of 48 miles, where it crosses to tbe left bank, and np

t6 TOPOOUPHIOAL MEMOn (W THE

to thiB poiot OD the roate bo difficulty oppoeeB itself to the moTement
of any command with its wagon train, however large. Qrass and
water are good and abundant in the valley of the Mohave, and there
18 wood Oil its banks at most of the places where the river remains
above ground.

On leaving the Mohave the country becomes almost a desert From
this river to Bitter Spring, 44 miles; thence, by way of Resting Spring,
81 miles, to Las Vegas, (the plains,) the road is difficult, water not
good, grass poor, and it would be a Bsrious uadertaking to march a
Urge command over it, though by great care it could be Bnoceeafully
accompliBhed.

From fitter Spring all the way to Pure Water Spring, on the
Amagosia, there is little or no grass or water. The Amagosia is a
putrid stream, running through a deep caRon, along whose sides it is
difficult to pass. It was within about 14 miles of Pure Water Spring
that Mr. Soublettes party obtained gold with success in 1850, 1851,
and 1852, packing the water for washing it from that spring, until
driven off after several were killed by Indians. - lu descending to the
Vegas the road pasaes through a caiion, affordii^ excellent cover for
an attacking party of Indians.

The Vegas is a small stream of good water, bnt it sinks; it heads in
a spring that boils with such force that a person cannot sink in it.
Along the course of the stream grass is good and abundant, and it
affords the only really good camping place after leaving the Mohave.
It is understood that there is a settlement of Mormons at Las Vegas.
It is supposed the Colorado river comes within 2S miles of this aettie-
ment. Should it prove navigable for light draught steamers up to the
entrance of Virgin river, this point becomes importent in reference
to a new commonication from southem CalifcHnia into Utah, via the
Colorado river.

From the Vegas to Muddy river, 43 miles, the road is good, bnt
there is little or no water. Lieut. Mowry's detachment made this
march in 18 hours, using the nighty halting to refresh the ">'""»V on
su intervening patch of graas.

From Muddy river the road is descending for 20 miles, when it
comes to Virgin river; from here it ascends the valley of the latter
for about 23 miles, thence about 19 miles to the Santa Clara river;
from this it follows up the valley of this stream for about 27 mites,
and then we soon come to Mountain Meadows. On this reach of 89
miles, between the Muddy and the Meadows, there is no serious diffi-
culty in the way of a w^on train. The road along the Virgin croasei
the stream often, and is trying to the animals; in aome places the
bottom is of shifting sand. The crossings of the Santa Clara are fn-

auent, but they are narrow and easy to be made. "The canoD
irough which it flows is susceptible of a stroi^ defence by a small
body, which, if properly posted, could atop or annoy a much laiger
force."

Mountain Meadows — 425 miles from Sui Pedro, 315 miles from
where the road leaves the Mohave, 318 miles from Fort Tejon — is a
beautiful plateau, seven to eight thousand feet above the level of the
ocean; it is shut in by the moontains, grows loxarions grass of an

mpAvncnrr a^ nm tAcma. 87

excellent qa&lity for grazing, and is intersected by a neTer-failiDg
stream of pare cold water. Lieat. Mowry eaya " it is one of the few
places on the roate the traveller rememberB with pleasare." He re-
gards the mountains here as the eoathem rim of the Salt Lake Basin,
It ie apparent to me that these meadows would afford a good military
position for commanding the whole route hence to Salt Lake City.

From Mountain Meadows to Cedar City it is about 35 miles, and
probably it is about the same distance to Harmony, and the road ia
descending. "These two towns are inhabited by miners and iron*
workers, and several large furnaces aro in active operation, affordii^
employment for several thousand man. The ore is of the richest
qnolity and the supply inexhaustible. Highly ornamented castings
are produced, and the maonfacture of cannon ia said to be in sncceaa-
flil operation."

The respective distances from Cedar City to Parowan City; thenoe
to Fillmore, the capital of Utah; thence to Salt Lake City, as recorded
in Lieut. Mowt/b report, are different from those given on the map.
He gives them 20, 90, 160 miles; whereas the map gives them 39,
65, 12i miles; here are great discrepancies. On the whole extent,
however, between Cedar City and Salt Lake City, the road is excel-
lent, and water occurs all the way at convenient distances; but fuel ia
flcarce, though attainable at some inconvenience. The country is
well settled by Mormons, and villages and small towns occur ir»-
quently, outwardly evincing thrift and quietude.

It will be seen that I make the approximate total distance, esti*
mating by the map, from San Pedro to Great Salt Lake City S82 miles.
It would be a march of about 40 marching days. From ^n Pedro to
Mountain Meadows, where the command would be placed beyond all
difficulties, it would be a march of 23 to 25 days.

The detachment under Lieut. Mowry made tiie march from TToited
States Camp, in Rush valley, 45 miles southwest of Salt Lake City, to
Fort Tejon, in the summer of 1855, at the rate of 26 miles per day,
according to his estimate of the total distance; and he eays "several
marches of 30 miles and more per day were without water and tem-
perature at 120 F."

He reports, that "with care in husbanding the strength of the
•mmals before reaching the desert, and attention to them while cross-
ing it, the march could be made without material loss. Two artesian
wells on the desert, that is, between the Mohave and Laa Vegas, and
one between the Yegaa and Muddy rivers, would make the route eaay
for travel at all seasons. The proper time far starting would be from
Ist to 16th April, or 1st September. In the autumn the deserts are
covered with water from rains and there is a second crop <^ gcass.
The route is healthy at all seasons."

On the Vegas, the Virgin, the Muddy, and the Santa Clara, there
are hundreds of Indian warriors, who Lieut. Mowry reports "have
been taught to believe the Mormon people to be altogether superior
to the Americans — morally, mentally, and physically. In each tribe
two or more Mormon missionaries were foond, whose object was to

28 TOFOQSAPHICIL HEIUKB OT TBS

impreas upon the IndiaiiB the belief in the inferiority and bostility of
the AmencBOB, and the superiority and friendship of the Uormona.
And Brigham Toung counsels his people to intermarry with the
!bidiaii8."

"There are many places well known to the Indians on this route
easily defensible against a lai^e force."

A. company of dragoons might leave Fort Tejon or San Pedro, make
an easy march throngh these tribes, and return in three months; the
beneficial effect of Which cannot be doubted. If from Fort Tejon, the
march should be ihrect to the Mohave, following the foot-hilb of Ihe
north slope of the Coast range.

Ascending the Golorado to Utah. — ^We have seen how difficnlt the
land march is from the Mohave to Las Vegas, a distance of 135 miles,
across a portion that may be regarded almost a desert. If the Col-
orado, as is BDpposed it does, comes to within 26 miles of Las Vegas,
and prove navigable for small steamers up to the junction of the
Virgin, it will be fortunate, for it will be seen, should all this be true,
we ahonld have land carriage of only about 40 to 60 miles up the
valley of the Virgin to the point where the present road strikes this
Btreun; and from the jnncti<m to Mountain Meadows it would be only
109 miles.

If, while the troops are in Utah, a military reconnussance could be
made from Cedar City, via Mountain Meadows, down the Virgin
river to the Colorado, to test the practicability of opening a road, the
results wonld be valuable to the War Department. I doabt if there
would be more than 50 miles in extent of country to examine, and it
would all be within 144 miles of Cedar City. While at the junction
the character of the Colorado for some fow miles above and beloiW
should be ascertained in reference to tt« capacity for navigation.

Middle route, or route from the vaBey of the Sacramento to Utah, —
Should it become necessary to march a command from this valley into
Utah it would be be&t to organize it to start its land march from the
city of Sacramento.

From Sacramento to Flacervilte it is 25 miles; thence to the west
foot of the pass in the Sierra Nevada, seen on the map to the south
of Lake Bigler, it is about 30 miles; thence fairly throngh the pass
to its eastern extremity, about 10 miles. This pass is by way of one
of the head branches of the American river. In this reach of 80
miles the only temporary difficulty to be encountered, starting as
early as the middle of May, wonld probably be snow in the pan.
The cmidition of the snow, however, could always be learned before-
hand at Placerville, and the time of commencing the march regulated
accordingly. In this pass there are more permanent difficulties than
snow — steepness of grades and rocky places; but, notwithstanding
these, wagon trains pass throngh it without serions detention.

From the east extremity of the pass to Reese, where the road
comes to near Carson river, it is about 25 miles. Carson valley is a
noted district on this route, affording good soil, water, and grass in
abundance, and it will afford a good position in Utah for a military
post when needed; and it would be well for the War Department to
make a reservation, the sooner the better, for the pntipoBe. Canon

DEPASnCENT OF THE FACIFia 29

river is said to sink, or to be lost in the earth, io ite course raDning
eaatward.

From Carson river to Bagtown it is about 25 miles; thence to the
soatbeast point of liBke Humboldt it is 35 miles; and in this latter
portion there is a desert to cross, where, boirever, no serious diffi-
oolty wonld be eDconntered.

From the said point of the lake to Lawson's Meadows it ia about
45 miles.

I thas make the total distance between the city of Sacramento and
Lawson's Meadows 210 miles. Two companies of Brevet Lientenant
Colonel Steptoe's command, with their wagon train complete, marched
by this route, thont^h in an opposite direction, from the Keadows to
the city, between the I4th June and 9th Jnl^ 1855 — 26 days. Of
course the greatest obstacles to the movement of the train were met
in the crossing of the Nevada ridge.

Lawson's Meadows we near where the Humboldt river, after pur-
suing a coarse bearing a little south of west for about 3^ degrees in
longitude, suddenly turns to the south, and then, after showing itself
for an extent of about one-half a degree in latitude, is lost in its sink,
which is Lake Humboldt These meadows undoubtedly present an
important position for military purposes. It is here that a concen-
tration of troops could be effected, one body starting from Fort Lane.
Oregon, the other from Sacramento, or indeed from any point in the
valley of the Sacramento river. It is a position pretty well east of the
Sierra Nevada range and well into Utah. It is believed it possesses
all the requirements for a military reservation, It is somewhere not
far south of here that the United States wagon road, appropriated so
liberally for by Congress last year, will run across Utah to Honey
Lake, California; and it is somewhere near these meadows that
another w^on road may be expected to diverge to reach the Willa-
mette river valley in Oregon.

From Lawson's Meadows, proceeding farther into Utah, the ronte
is up the narrow valley of the Humboldt river for an extent of about
175 miles. This valley may be safely marched through any time in
the summer afler the 10th of June, when the grsM will be abundant,
the road and the water good. But before that time the river is alka-
line and the grass covered with water; the valley being narrow the
track will be over abrupt knoUs, difficult for the passage of a train.

It is a march of 13 days between Lawson's Meadows and the last
crossing seen on the map in ascendii^ the Humboldt.

From that crossing by the north and east of Oreat Salt Lake to
the City of Salt Lake — the largest Mormon town — the distance is esti-
mated at 210 miles. The roads on this part of the route are good by
the 1st of Hay and afterwards, and grass plenty except in Goose Creek
mountains. The march from the meadows to this town would occupy
the command about 30 days.

I make the total length from Sacramento City to Salt Lake City
595 miles. Whatever may be the error )b the distance here given,
Steptoe's command made the march in an opposite direction between
April 28 and July 9, 1855.

n,g>ndtyCoOglc

80 TOFoaKAFmcAL ifEUom or the

It is qait« probable the route we are considering is the best, ander
bM circumstances affecting the case, for a wagon road from Sacramento
City to intersect the one before mentioned across Utah to Honey
Lake vaUey. Here we perceive another fact of importance connected
with Lawson's Meadows — as it must be somewhere in their vicinity
that a road will diverge from the United States trunk road across
Utah in a southwest directioo, to reach the permanent head of navi-
gation on the Sacramento river.

BODTE FBOH OREGON TO TJTAM.

Should the object be to march a command, drawn from the troops
located in Oregon, in^ Utah it would be best to assemble them at
Fort Lane, Oregon Territory, which ie on Bt^ue river, (see map No. 9,)
as through the Willamette valley, they coald be assembled from tiie
Colnmbia river posts, and from the Fnget Sound district — and all
concentrated at Fort Lane in time to commence the march by Jane
10. This arrangement would enable the quartermaster's department
to take advant^e of the favorable stage of water for transportation
np the Willamette river to the head of its navigation, and of the
favorable condition of the roads thence to Fort Lane.

From Fort Lane to the west foot of Applegate Pass, of the Cascade
tange, 27 miles, there is little ornodifficultyin the wayofa wagon train.

From the west to east foot of the pass it is probably 10 miles, which
will bring us to Klamath river; tbroogh the pass there is no serions
obstacle to the passage of a train of wagons.

From Klama^ river to the sonUieast end of Rhett lake it is about
17 miles; from here to the streun supplying Clear lake it is 10 mifes;
from this to Ingalls' lake it is 10 miles. In this reach from Klamath
river to Ingalls' lake, &2 miles, the road has water and grass in abon-
dance, and there is no serious impediment. Ingalls' It^e is the first
or left-band one seen on map 8, nearly ap to the boondary line between
California and Oregon. Klamath and Bhett are not on this map.

From Ingalls' lake to the outlet of Goose lake, supposed to be Pit
river, it is about 55 miles, and until we get within 6 miles of the
south end of the lake the road is bad. The first part is through low
and muddy spots, and then we come to a rocky ridge or divide 12
miles over, apon which the stones, though not large, woald be severe
upon the feet of the animals. The bend over the ridge might be
shortened, probably, by opening a road to the south of the present one.

Goose lake is a fine xheet of good fresh water, it being the receptacle
of many cool mountain brooks. The lake is 25 to 30 miles long
by 10 wide, and aroond its shores and in the narrow ravines of the
brooks there is an abundance of grass for almost any number of
animals at the proper season. It is in the vicinity of this lake that
Brevet Captain Warner, Topographical Engineers, and his party were
massacred while engaged in a topographical exploration of this r^<«.

From the outlet of Goose lake to the sommit of the Sierra Nevada
it is probably about 16 miles. The pass of the mountain here is by
no means a difficult one, and its extent is only aboot 8 to 10 milee.

ii,Cooglc

DEPABTUKRT OF 7HB PlCiriC 31

The east slope is rather steep, but coiDparatiTel7 free from rocks ; the
lake immediately on the east of it ia of bad water. Captain Ingalls
IB of the opinion, from bia observation, that by considerable labor in
opening a road tbroogh the heavy timber farther south some diatance
conld be saved and the grade rendered easier than on the present track.
On Jnne 23, 1856, the day he crossed, there was no snow in the pass.

From the east foot of the pass to the great caBon it ia about 45
miles, and the road is tolerably good. Through the canoD it is esti-
mated to be 26 miles, and, thongh somewhat tedious, the road is pass-
able for a train, or can be rendered so by some little attention to the
bad spots.

From the sonthem extremity of the caBon to Black Bock it is about
25 miles. On this reach, and for a diatance of abont 35 milea fnrther
the conntry in sommer ia a sterile dry waste. It may be called a
desert, of about 60 miles across, in which water and grass of good
quality are not met with, a^d it is on this part of the route that extra
care should be taken to insure the succesafol passage of a train.
There are some boiling springs and a slot^h with alkaline water. "It
is decidedly dangerous to permit atock to more than tasle it." Late
in the season the condition of the water and grass is at its worst, and
it would then be a dangerous experiment for all the animals of a large
train to attempt to cross it. In early spring the desert ia so much
covered with water as not to be passable without great difficulty.

From the southern point of the desert to Lawson's Meadows it is
18 miles. In this part of the route the road is good, and water and
grass of excellent quality exist in abundance.

I make the total distance oo this route from Fort Lane to Lawson's
Meadows 315 miles. Captain Ingalla estimated it at 366 miles. His
detachment was 23 days marching it, though in an opposite direction,
and consisted of 122 horses, 112 mules, IT wagons, and 60 dragoons.
The march was made between June 14 and July 6, 1855. The cap-
tain says "between Fort Lane and the desert the grass and water
were abundant and a more interesting conntry at that season I never
aaw."

I have already spoken of the importance of Lawson's Meadows,
and of the probability of a wagon road diverging in this neighbor-
hood, from the United States road across U4^h to Honey Lake, to
reach the Willamette valley in Oregon. It is highly probable the
route I have just been describing is the best that can be followed for
this purpose. The desert is the only objection to it; and, notwith-
standing this, it is doubtful if any route except this can be found for
feasible communication between the settled parts of Oregon and
Washington Territories.

From Lawson's Meadows the route would he common with that
already described, being np the Humboldt river, as a part of the
route from Sacramento City to Salt Lake City, if the command were
destined around by the north and east of Salt Lake to the great Mor-
mon city.

From Fort Lane. Oregon Territory, to Great Salt Lake City, I make
the total distance 700 miles on this route, and it would require 66
days for a command of four to five companies to accomplish the march.

32 TOPOGBAPHKAI. HEMOIB OF THE

MatoKT (^ aending troops into Utah. — Hitherto all that bare been
sent ioto and through this Territory have been asBembled, from the
departments of the east and west, at Fort Leavenworth, on the Mis-
Bonri, and began their march from that post. Fnor to the preeent
year two marches of thia kind have been executed; one by the rifle
regiment in 1849, the other by a command nnder Brevet Lieatenant
Colonel Steptoe in 1854~'65. The route of the former diverged at
Green river to the northward, and entered Oregon by the way of
Fort Hall and the Snake river; that of the latter was from Fort
Leavenworth, 311 miles, 21 days, to Fort Kearney; thence, 336
miles, 23 days, to Fort Laramie; thence, 290 miles, 24 days, to
Pacific springs, the west extremity of South Pnas of Rooky moon-
tains; and thence, 232 miles, 20 days, to Great Salt Lake City, l^e
command left Fort Leavenworth June 1 and arrived at Salt Lake
City August 31, 1854. It is believed that the stoppages were do
more than necessary in accomplish this march of 1,169 miles in 92
days, without breaking down men and animals, and that this is a
pretty fair measure of the minimum time in practice that it would
be proper to spend on ao long a march over a similar country by a
body of troopa of a reapectable number. It seems that the actual
number of marching days was 64, making the average distance per
marching day a little more than 18 miles; or, if we include the stop-
pages to rest, 12| miles per day from the beginning to the end of the
march.

Now, this rate of marching, which was in the department of the
west, being applied to the department of the Pacific will give us
tiie times for Uie marches, including stoppages to rest the command,
as follows:

From Sacramento to Salt Lake City, 47 days.

From San Pedro to Salt Lake City, 54 days.

It takes 25 days to transport a regiment by steam from New York,
and 22 from New Orleans, via Panama, to San Francisco, thence one
day to Sacramento and two to San Pedro, including all necessary de-
lays for transhipment; and it is obvious the regiment could be assem-
bled from various poBta in or east of the valley of the Mississippi at
New York or New Orleans quite as expeditionsly as at Fort Leaven-
worth.

Hence, if it be an object with the War Department to despatch
troopa in the least pcmsible time — ^from poets so located, regardless of
other considerations — to Salt Lake City, the quickest way is to as-
semble them either at New York or New Orleans, and embark them
by steam for San Francisco, thence to Sacramento, and from there
march them to Salt Lake City.

If embarked from New York the saving would be 19 days, if New
Orleans 22 days, in the time that would be consumed in marching
them from Fort Leavenworth to the same point. If sent by steam
from San Francisco to San Pedro, and marched thence to S^t Xd^e
City, the saving would be 11 or 14 days in the time required to
march them from Fort Leavenworth.

n,g:,.ndtyC00glc

SBPASTUENT OF THE PACIFia 33

VL — MUUary amaiderationa in r^erenoe to the Oregon portion t/ the
dtjxtrtmeat (/ the Paetfic

Southern Oregon, so moch b» to include the eoathweat portion, is
represented on map Mo. 9. The boundary between the State of
Galifomia and the Territory of Oregon is the 42d parallel of nortJi
latitade. The town of Crescent City is in California, abont 13 miles
fionth of the boundary. After passing Humboldt bay this is the
next port possessing any military importance north of San Francisco,
from which, by the steamer's track, it is distant about 320 miles.
It can be safely entered at all times, except in fogs and during the
prevalence of south and east winds; bat there being no piers or
docks lighterage has to be resorted to.

It was through Crescent City that Fort Lane, while garrisoned,
was supplied. The fort is 85 to 100 miles distant from it in the in-
terior, following t^e pack trful, seen on the map, which runs through
an exceedingly broken country. It was Crescent City that General
Wool selected to be made the principal centre of operations of the
troops for closing the Indian war in southern Oregon in 1856. The
results showed the wisdom of the selection.

With the exception of the Coquille and the Umpqua, the rivers
represented on map No. 9 are not at all navigable except for canoea,
being generally of rapid current, rocky beds, and in many places
nmoing through deep cailons.

Bogue river, named "Trashit" in the aboriginal ton^e, was by
legislative enactment changed in name to "Gold river;" but from
causes which I omit to mention, all persons outside of the valley of
this stream still persist in the use of the first appellative. This
river, coming from the west slope of the Cascade range, is of rapid
current, and only navigable even for canoes in a few of its reaches.
Its lower half is foil of rapids and caBons. It has no cooeiderable
valley until we get some 40 to 60 miles above its month ; and then we
come to a beantifnl and fertile one, of only about 30 miles in extent,
however; it ia this that is called the Rogue River valley, in which is
situated Fort Lane. Great difficulties are in the way of opening a
road or passing from the mouth of the river up to ^is valley; the
trails are circuitous, tortuous, rough, and steep; and it is only under
difficulties that this tempting and much coveted valley can be reached
from any point on the coast.

Coos bay is important in respect to its coal veins. Small vessels
enter it to receive the coal which, being of a qu^ity valuable for
domestic purposes, is mined in considerable quantities; but as yet it
is not profitable for sea steamer purposes, requiring too much bulk
for a given amount of heat — two to three hnshels of this giving only
the heat of one of anthracite. As the veins are more deeply pene-
trated, however, the coal is found to improve in quality.

It is hut a mere step, as it were, from Coos bay across to the
Coqnille river; and it is quite probable this river once had a channel
through this bay into the ocean. The present mouUi, however, is to
H.Bi.Doc.n4 3 : X.oogR-

M TOPOOBAPHICAI. MEMOIK OF TBE

the aouih of the bay, and it is blqcked by a sand bar ao as to effec-
taallj prevent ingresa of TOfieeh; but above the bar the Coqoille
river presents the character of a beantifdl deep navigable canal, fit
for steamere, for more than 50 milea of it conree; and its Talley,
though narrow, has much good soil to recaismend it. lu the aatirain
of 1S51 a force of oar troops, Tinder the immediate command of Lien-
tenant Colonel Caaey, had a smart saccessfnl conflict with the Indians
at the junction of the north and sonth forks of this river; one party
of the command ascended in boats while the other proceeded by land;
the pursued, in attempting to escape one, fell anezpectedly into the
fire from the other, and were effectaalty chastised.

In regard to the Umpqua river, its month can be entered bj sea
steamers, under very favorable circnmstancea of wind and weather,
also by email sail vessels; but it is not of a character to be regarded
as a harbor, and it is only by light draft steamers that it cao be
safely ascended 24 miles or ao up to near Scottabvrg. Above this
there is what is called the valley of the Umpqna, which is quite an
ezteDaive tract of most ezcelleat soil. Shonld there be a good
road opened from the head of navigation of this river into the valley
it would add greatly to the value of this district of Oregon, and it
wonld be useful for military purposes; and I think a good military
toad should be made between the mouth and Scottaburg.

Near the month of the Umpqna there was a Hudaon Bay Company
post, but DOW the site is occupied as a military post, establisheid is
the summer of 1856, by order of General Wool, when the detach-
ment post at Port Orford was abandoned; the latter, however advan-
tageous at the time when it was established, no longer being regarded
necessary afler the close of the Rogue River Indian hostilities and the
removal of the tribes from their old homes to the coast reservaUons;
bat during the military operations which re8ii]t«d in this removal the
post at Port Orford proved of signal advantage, fully jvatifying the
views of the ofEcer under whose orders it was established.

From Crescent City to Rogue river, thence to Port Orford, the
shore is broken and divided by spurs of the mountains coming quite
down to the water's edge, throwing the mule track baak from the sea
tyi the steep sides and over the sharp crests of the spurs, making the
route a very difficult one for the animals to tread; and yet it is the
only land route connecting the shore settlements. Indeed, in almost
all the country adjacent to the coeat, and back into the iuterior as far
aa the Oregon trail, the roads generally are nothibg more than pack
trails for animals or foot paths for Indians and their pursuers.

With the exception of the valleys of the upper part of Ri^ue river,
of the Umpqna, and of the Coqnille, to which I have already made
allusion, the whole country represented on map No. '9 is extremely
forbidding to the eye of the farmer. Immediately on the coast the
ground is covered with a dense forest of cedar, inferior pine, (called
Oregon pine,) spruce, fir, Ac, of trees of such gigantic size as to
prednde the idea of clearing the land for cultivation. Farther inland
the back ground of this natnral ampbitheatral picture, viewed from
the sea, is a ancceasion of hills, then nouBtaios of volcanio origin,

Xiocwic

DEPIBTICENT OF TB£ PACIFIC 35

rieing one above the otLer, presentitig their rocky fronts and sharo
sammita in beautiful shapes and variety of tolor, and showing their weU
defined crest line in clear relief against the sky as far as ^e eye can
reach; and, as long as it can endure to observe, ae we steam along
the coast of Oregon, it will meet pretty nearly the same picture.
The forest lands and mountain slopes of this coast will never be
brought under cultivation. They are fit only for lumbering, and
mining, perhaps, in eoma places. To the botanist, the florist, horti-
culturist, mineralogist, and geoli^ist, they affiirrl fields of interest,
and, if ezftlorad, would probably yield many iiew and valuable speci-
mens to their respective cabinets.

At Port Orford, which is just immediately south and under the
cape bearing this name, there is a tolerable harbor, or rather, a * ' Hole
in the shoru,' ' into which steamers of the largest class can safely enter
and approach to within a few hundred feet of the beach, when tho
wiad don't blow too hard from the south or southwest, and the fog is
not too dense. Under a north or northwest wind, once in, vessela
may rids at anchor here in security. This is not only the best, but
it is the only place entitled to the name of harbor on the whole Oregon
coast. A coast so strikingly destitute of harbors as this can contributo
very little to the commercial prosperity of the State upon which it
may front, presenting, as it were, a barrier rather than affording
entrances to the interior.

Lumber is extensively manufactured by steam mills near Port
Orford. It is here that the Oregon white cedar is found of an extra-
ordinary size. Boards from three to five feet in width are produced
of perfectly "clear stufi"," and of such quality, for the plane, that
this kind of lumber has, in a measure, superseded the white pine for
interior finishing; for exterior work, however, it is not so well adapted.

On former official maps Cape Orford and Cape Blanco are put down
as one; but Gape Blanco, whose approximate longitude 124° 45' W.,
and latitude about 42° 45' N., is distant from the former about tea
miles. Between the two capes there is a beautiful indentation, bor-
dered by a continuous sand beach, passable for wagons at all times,
and affording the only wagon road passing out of Port Orford; all
other routes leading out of this settlement can only be travelled oq
foot or on the backs of animals.

As soon as a military post was established^at Port Orford attention
was called to the advantage of having a direct communication with
the Oregon trail. Severu explorations were made with s view c^
finding a good route for a wagon road, but none were attended with
favorable results for such a purpose. In the autumn of 1855 Gene-
©ral Wool directed another effort to be made, and Lieutenant Kautz,
4th infantry, was put in charge of the party. The route which he
reported most favorably upon as the least formidable in difficulties is
represented on map No. 10.

While about closing his field labors his party was attacked by In-
dians— hostilities having commenced between them and the Oregon
volunteers unbeknown to the lieutenant.

From my own reconnaissance in this district of southern Oregon,

tioiwlc

36 TOPOGSIPEICAL UEHOIB OF THE

ftnd other sonrces of infonnation, I think the beet system of roads
that can be opened in order to bring the Kogue river, the Coqnille,
and the Umpqna valleys into commonication with a sea-port would
be—

1. To open a road od the direct roote scfen on map No. 10, from
Port Orford to the Oregon trail.

2. To open one from Cape Blanco to the navigable part of the Co-
qnille; also one from the head of the navigable part of this river,
rollowing the middle fork, to the Umpqtia valley.

With such a system well executed these seclnded valleys could
avail themselves of Port Orford, as there is already by nature a good
wagon road from this to Cape Blanco.

Cape Blanco, althongh possessing no harbor or " Hole in the shore,"
is not destitute of interest geographically, it being, I shall believe
until more accurate observationa prove the contrary, the most west-
ern point of terra firma belonging to the United States; certainly it is
the moBt western habitable portion; not only is it habitable, bnt it is
actnally inhabited, squatted upon, and claimed by the "Bostons."
From the fact of Captain Gray, the discoverer of the month of the
Colurobio. and his crew having sailed from Boston, this appellative
vas given them by the Indians, and extended to those since coming
from the east to distinguish them from the Hudson Bay Company's
people. Within the recollection of many now living the term "far
west" was applied to no farther than St. Lonis, then the most west-
erly settlement of civilization. After that it became to mean some*
where about Independence, Mo.; thence climbing the eastern slope
of the Rocky mountains and looking over its crest we saw it applied
to the Mormon settlements of the Great Salt Lake basin. But here
it rested only for a brief period; seemingly weary of resting place
■or local habitation, it departed from the city of polygamists, and with
more wonderful strides than ever, crossing entire ranges of mouu*
tains, scaling with a bonnd the Sierra Nevada and the Cascade, trav-
ersing California and Oregon, it came to the Pacific. And here it is
on the very brink of this ocean; and "far wetit" at this moment may
be most l^ittmately applied to Cape Blanco. It is here that the
Anglo-Saxon is arrested in hie onward march by the broad Pacific.
Westward the wheels of the emigrant wagon can roll no farther.
Another turn on tbeir- already well-worn axles and all are precipi*
tated down the frightful steep of Cape Blanco a thousand feet into
the deep bosom of the ocean. It is here that the cir of " Westward,
boll" by land must cease; and if on reaching this point the proneness
for migration be not satiated, the journey farther towards the setting
Bun must be on the ocean wave; or if migrate still our people will,
thence by land must their course be in retrogression, farther than
Cape Blanco I doubt if "Westward the march of empire hath its
way," onless the "Bostons" can invent a bridge four thousand miles
in-^an, and whose abutments shall be Cape Blanco and Cape Lopat-
ka. Although there is still an onward migratory wave from the east
io the west, a return wave has already begun to roll backward; and
:lKitweea the two— the direct and reflex — if we ourselves are not, an-

DEPABTUENT OF THE PACIFIC. 37

other leeB fortnnate race will be crushed — blotted out of existeoce^
to make the way clear for th« "Bostons."

Oold. — From the mouth of Rogue river to Cape Blanco, the point
I have shown to he the "far west" of our country, the very sea-
beach sand is full of gold dost; and in many places it has been
washed, and a profitable return for the labor realized. In other
spots it has been tried and abandoned, not from an absence of gold,
bat because of the smallnese of the yield. At Rogue river and Gape
Blanco large quantities have been obtained from the sand. The gold
dust is an impalpable powder, so fine as not to be recognized with a
microscope of ordinary power. To obtain it the sand is washed by a
little stream of water, and while passing through a machine adapted
to the purpose the duat is amalgamated with mercury, and afterwards

Elaoed in a crucible and the mercury of the amalgam driven ofiF by
eat, and the gold is realized in a solid form at the bottom of the
crucible. Not only does this precious metal exist, in the form de-
scribed, in the sea-beach sand, but it is found, in a more palpable
form, however, tn sand forty miles interior to the coast, (at Johnson's
Diggins.) There is, however, a difference in the physical character
of the two; that from the interior has crystals resembling the ame-
thyst and also the topaz, which, though in small numbers and not
perceptible to the naked eye, are brooght into evidence by the
microscope. Not so, however, in the beach sand; in this all the
particles are blactc and the angles more rounded, owing to more
attrition caused by the surf.

Gold is also found in Rogue River valley, on the Coquille branches,
and undoubtedly exists pretty generally in spots all over the district
under consideration; and it is this which has been the principal in-
ducement for the whites to be willing to enter this district at so much
hazard.

Indian hontHilies. — This portion of sonthern Oregon has been the
theatre of more Indian troubles than any other part of our Pacific
possessions. The whole district represented on map No. 9 was full
of Indians . Those more particularly occupying the valley of Rogue
river have been regarded, since first known to the whites, as treach-
erous, brave, and energetic; and if at that time they did not know
they were soon taught, by the whites themselves, how to use the
rifie and revolver to good advant^e. Notwithstanding all the evi-
dences of danger staring them in the face, the whites underrated the
skill, bravery, and local advantages possessed by the several tribes
who occupied this district, as was the case in other parts of Oregon,
and the first conflicts, as might have been expected, proved disaa-
troos to the Bostons. One, probably the very first of these conflicts,
I shall soon briefly describe; its result emboldened these Indians to
defy, and inspired them with a reliance upon their own strength to
effectually resist, the obtrusion of the whites into their country.

The scene of this rencounter was in the harbor of Port Orford.
Between the mputh of Rogue river and Cape Orford there are scat-
tered about in the bay many lofty rocks, towering high above the
water in pyramidal form; isolated from each other by channels of

I ly Google

88 TOPOaHAI>HICAL UEHOIB OF THE

deep sea water, they are the remainiog solid portioDA, once of the
laod, that have been able to withBtand the battering of the surf for
ages. One of these is directly in the harbor, and possessed with
historical interest. It is denominated Battle Bock, and stands so
near in that at low tide it can be reached by wading; but it is only
by one narrow face that it can be scaled, or its summit approached
by the human foot. Once up. however, the top of the rock afibrds
sufficient surface for a party of a Bcor6 of men to stand on, ch- to en-
sconce themselves. It is probably 60 feet above the level of the sea.
Usually upon a calm sunny day its aummit is densely covered with a
flock of sea birds, of all kinds, so different in color, shape, and sine as
to delight the ornithologist — some sitting, some standing, SMue Bppa-
rently sleeping, some hopping, others fiapping, screaming, crow£ng,
and fighting, seemingly, to secure, each for himself, a momentary
resting-place upon the rock; while high above all this din the atmoe-
pbere is darkened with myriads of the flock flying in all manner of
gyrations — now ascending, next descending, some enlarging, othen
contracting the orbits of their flight — all looking down the while upon
the angry strife of their fellows below, intently watching for the first
vacant spot of the rock to suddenly dart down, seize, and perch apcm
it in tarn, or contribute to the confusion. Such is but a feeble pic-
tare of the scenes with which the summits of these dark and tower*
ing pillars in Fort Orford bay are daily animated. But npon the
gammit of Battle Rock a different strife from that of the birds was
enacted.

In early times of the influx of population into Califwnia, immedi-
ately aacceeding its acquisition to the United States, adventarons
spirits to the number of a dozen or so chartered a schooner, and em-
barked at San Francisco, bent npon exploring the coast of Oregcm,
for purposes in general, and the parpoee, in particolar, of discovering
a suitable site for a town, to be laid oat into lots for sale. Arrived
off what is now Port Orford, then not known to the Bostons, and
attracted by the favorable aspect the site presented through the me-
dium of their telescope, the schooner's prow was turned to the
entrance of the bay, and when sufficiently in (about JO o'clock, or
five bells, a. m.) her anchor was let go, and she swung head to tide,
then half ebb. The whole party, except the master and cabin-boy,
were soon seated in the yam, pulling ashore for a more minate ex-
amination. So engrossed were they in the disoussion of speculative
profits of "town lots for sale," little did they think there ever was
sach a thing aa an ambuscade, or even dream of anything more, in
the shape of an enemy, than a grizzly bear being near the handsome
site that lay bo invitingly before them. No sooner, however, had
the party safely beached and secored their only boat above high*
water mark, crossed the beach and fairly reached the high plateaa,
and began to admire the advantages of the site, when all of a sudden
thev were startled by a terrific yell in the rear, discovering the hot-
ribfe reality of being completely surrounded and cut off from all access
to the schooner by a hostile baad of Indians, one party of whom being
already in possession of their boat, and in all outunmbering the little

DKPABmraT OF TBI PAOIFIO. 39

band of adTentorooa spacalatDrs in "town lots for sale" ton to one.
Here were eymptoms unmiBtakeable of an enemy more formidable
thaD grizzly bearej and if, perc^noe, there was a doubt of the inten-
tion of the Indians towards our UtUe party it was but for a moment,
as they were immediately saluted, in front and flank, by a shower of
flint-headed arrows. This was promptly retarned, but the ladians,
nothing daunted, rushed furiously on, pouring in volleys of arrows as
they adyanced, and the fight soon became pressing. The littlo band
of Bostons brsirely and adroitly defended themselTes, retreating until
forced to the very water's edge, as it happened, directlyunder Battle
fiock. The whites were not long in seeing that their last and only
hope consisted in gaining its sununiL In hasty council, amid showers
of arrows poured in from their pursuers, it was decided to make the
attempt to scale the rock. The effort proved successful, and, although
possession was disputed by the oounUess number of sea birds which
had held it undisturbed by any bat their own kiod for centuries, oor
friends, all eleven in number,, thus separated from their schooner,
some already wounded in the onslanght, foand themselves on top of
the citadel rock, and for a moment in c<Hnparative safety. The
battle ceased, however, only long enongh lor the parties to snrvey
their relative positions. The Indians, led on by their eldest chief,
renowned in savage cunning, repeatedly attempted to scale the
citadel, eager for the confiict hand to haudj but the Bostons defended
the rock most succesafolly; every redskin ventoring to scale it was a
fatal mark for the unerring rifle or revolver. Their telling, well re-
served fire and the flood tide at length gave the Boatons a respite, a
breathing spell, for the first time since their surprise. It was not
long, however, before they perceived their wily foe, tha old chief^
preparing to add to the attack a regular siege; and on looking for the
aobooner, with amazement beheld her fast sailing out of the bay.
Bat before charging desertion, it must be told that the master, on
discovering the ambosoade and becoming satisfied, although success-
ful in baffling attempts of the Indians who had seized the yawl to
board him, that he was powerless to render immediate' aid by wait-
ing, slipped hie oable, and, by aid of his boy, hoisted sail and squared
away before a fresh breeze for San Francisco, 375 mites before him,
for assistance, that being tM only point where it could be obtained.
In this laudable undertaking we leave the schooner, and return to
Battle Rock.

Aa soon as the next ebbing tide woald permit the old chief returned
to the anaanlt of the citadel* but with no better success. In the mean-
lime he had sent the swiftest runners to the remotest of the band,
who, to the summons, came swarming in to swell the number of the
beeiegere. Every morning's dawn reveled to the unfortunate be-
sieged a prospect more gloomy for each socoeeding day. It was only
daring high water that it was not necessary to stand by their arms to
prevent an escalade, which was as certain to be attempted as that
low tide would ensue. The ravenous flock, so unceremoniously dis-
possessed of liieir perch came circling and screaming aroond, exces-

n,g:,.-ndtyC00glc

40 TOPOOBAFHICAL HEHOIS OF TBE

sively annoying them during tbe dty, and the comii^ of night only
afforded time for sad reflection in reference to the morrow.

For three days and an many nights, with several of their number
wonnded and bleeding, the heroic little band of " town lots for aale"
BpetnlatorB held the citadel, without food, withont water, withont
rest, in the broiling snn of the day and in the cold damp of the ni^t,
against fearfnl and increasing odds. On the ere of the last night,
their ammunition being very nearly exhausted, a council was held;
it resulted in the bold, unanimous resolve, to make, under the cover
of the dark, at low tide, the desperate effort to abandon the rock by
the same narrow fece they bad gained it, and each for himself to run
the gauntlet through the enemy's ranks, to seek, as a last re8<»% his
own safety in the dark recesses of the woods immediately in rear of
the Indians. At the proper stage of water that night this de^erate
attempt was made, and none, save one, ever escaped to tell the story
of their disasters ; he was two years subsequently foand a poor maniac
prisoner, in poesession of the Ooqnille band. But what of the master
of the schooner? He, true to his friends, returned with a strong
party, after a trip of ten days, only, however, to find Battle Rock
^ain in possession of its feathered occupants, and his friends beyond
the reach of human succor.

The discovery of gold in the Rogue River valley attracted, with
some well-disposed persons, many of the most unprincipled and un-
governable white men from all countries; with few exceptions, but
for these wretches, it is believed the Indians of Oregon would have
been the most peaceable, Iriendly, and easiest managed, with proper
care, of any uncivilized tribes within the bounds oi the United States.
It is very trne the Rogue river tribe was one of the few exceptions
referred to; bat they had felt the force of a blow administered by a
command under Brevet Major P. Kearny, captain 1st dragoons in 1861,
near the month of a branch of Bc^ne river about 15 miles north of Table
Bock, (see map No. 11;) and whether this was ssffioiently salutary or
not, theirrognish and stealing propensities afforded no just provooAtion,
more especially when not in the commission of crime, for the infenul
acts of cruelty committed upon them by some of that class of unprin-
cipled whites, snch as are always known to lurk on the ooufiues of
civilization, between the peaceable settlements and the Indian lodge,
acknowledging no law but that of force, and in their hearts and acts
far deeper down in the scale of human degradation, and fiir more
capable of producing misohief in the settlements, because, to an evil
heart, there is coupled superior intelligence, than any Rogue River
Indian was known to be, before or since the discovery (^ gold in bis
valley.

Does any one ask what these infernal acts of cmelty have been?
and by whom have they been perpetrated ? Official pnblic documents
tell us: In the autumn of 1852, " a party of citizens, under conduct of
one Captain Ben. Wright, massacred over thirty Indians ont of forty-
eight, who had come into his camp byinvitation to make a 'peace.'"

It seems " Wright determined not to return to Yreka without hearing
some evidence of success in his expedition, and having failed to find
them by hunting for the Indians, he invited them to bis camp by

BIPABTIBHT OF THE PACIFIC. 41

ueans of a squaw. Upon this invitatioii forty-eight came, and while
there Wright directed hie men to charge their riEes afreeh, to mahe a
rare fire, which wu done in presence of the Indiana, without exciting
their anspicion, and then, upon a aignal from Wright, they euddenly
fired upon the Indians, and aucceeded in killing aboDt 38. The. aignal
was the disohat^ of a revolver by Wright, by which he killed the
two principal Indians, with whom he had been engaged ia talk.
Wright's men returned to town, bearing on their rifiea the scalpa of
their victims, he reporting that he bad demanded of the Indians stolen
property, and on their refusal to deliver it up be had thus pnniahed
them."— (Ex. Doc. 76, 34th Cong., Sd session.)

As a natural reaolt of this treachery, the tribe combined with the
Bogne River Indians, in the following summer, and attacked a settle*
ment near Jacksonville. — (See map No. 11.)

We thus have what are believed to be the provocation and begin*
Ding of the Bogae river war of 1863, terminating in a Sgbt between
the Oregon voIuDteers, with one captain and ten soldiers of the United
States army, under GtoneriU Jo. Lane, and the Indians, on the 24th
September, 1853, on the side of the mountain seen on map No. 11,
to the sooth of Battle creek.

Captain B. B. Alden, 4tb United States infantry, had been ordered,
in anticipation of any outbreak that might follow in consequence of
the massacre by Wright, into that district; and promptly, on the first
intimation, repaired with all the men, ten in number, of his company
who were fit for duty, and before General Lane arrived, "the whole
country had been scoured, under the direction of Captain Alden, in
all directions, and the main body of the Indians driven to their strong*
holds in the mountains."

Bat this did not satisfy the Tolunteers; so, on the next day after
Oeneral Lane joined the forcee at Stewart's creek, he was elected to
take command on the S2d of September. After assuming it he divided
his force into two battaUons, "in order to better scour the whole
country," which he himself reports had already been scoured, and
pnt one battalion under citizen Colonel Boss, and the other under
Captain Alden, (who, be it observed, was an army officer, end had
ten regulars,) and the general put himself at the bead of this bat-
talion, directing the one under Boss to proceed op Evans' creek, and
Alden' s to go via Table Bock, thence up the same creek.

The command started from Stewart's creek at i p. m., 22d Sep-
tember, and after pursuing the Indian trail under difficulties caused
by the Indiana setting fire to the woods in their rear, up Evfuis'
creek, thence up Battle creek; the general reports that on tne morn-
ing of the 24th, while riding in front, "he beard the crack of a rifle
in the direction of the enemy," and without halting he advanced
alone, and by his ear discovered their camp "in a dense forest thick
with anderbruab, which entirely obetmcted the view,"

When the troops came op the general announced his order of battle:
' ' Alden, at the head of one company, to proceed on the trail to attack
the enemy in front, and part of another company to go round and
turn their lefl fiank. Alden proceeded to engage them in the most

iX'-ooglc

42 T0P0QR&7HICAL MEMOn OF IBE

gidlant manner; hia veil directed fire was the first intiination of oar
approach. It being foand impractieable to tarn their left, the flutk-
iDg party proceeded to engage them od their right. The men were
now deployed, taking cover behind the trees, and the fight becams
general."

The general also reports: "I was delayed a few minntes for the
arrival of the rear guard ; these, all but fifteen, I immediately led into
action. On arriving on the gronnd I fonnd Captain Aldeo, who had
been ehot down early in the fight, dangerously wounded, in the arms
of his faithful sergeant, surrounded by a few of his men. Aiter
examining the ground and finding that the enemy were securely
ported behind trees and bogs and concealed by nnderbrosh, and that
it was possible to reach them, I determined to chaise them. I passed
the order, led forward in the movement, and within thirty yards ctf
their position received a wound. Believing the shot came from the
flank, I ordered our line to be extended to prevent the enemy from
turning it, and the men were again ordered t^i cover behind trees."
In this position, which they held for three or four hours, the general
saya that his "men were cool and determined on conquering."
"Finding myself weak from the loss of blood, I retired to the rear
to have my wound examined and dressed." While the general was
in the rear the Indians cried to the whites "that they wished tar a
talk; that they desired to fight no longer; that they desired peace,"
and expressed a wish to see General Lane, who says: "Finding that
they were mnch superior tons in numbers, having about 200 warriors
well armed with rifles and muskets, well supplied with ammunition,
and knowing that they could fight as long as they saw fit, and then
safely retreat into a country exceedingly difficult of access, and beii^
desirous of examining their position, I concluded to go amcHig them."

During this interview the preliminaries of a peace were agreed
npon. The treaty was completed at Table Rock a fbw days after;
bnt it seems not until Captain A.. J. Smith, Ist United States dra-
goons, arrived with his troop from Port Orford, were the negotiations
for the peace concluded. Oeneral Lane says: '-This arrival was
most opportune."

It was Boon after this that Fort Lane was established, and Captain
Smith put in command. In speaking of the participators in this
action, the general says: "Too much praise cannot be awarded to
Captain Aldenj the conntry is greatly indebted to him for the rapid
organization of the forces when it was entirely without defence; his
gallantry is sufficiently attested by his being dangerously wounded
while charging at the head of his command almost at Uie enemy's
lines." And then goes on to compliment, in the most flattering terms,
the volunteers by whose voice he had been put in command; while
it has been positively asserted that when the order to charge was
given not a man of the volunteers advanced, but that Alden and his
ten regulars charged unsnstained. Boss' battalion did not arrive in
time to participate in the fight, and only twe oompaniea, including
the regulars, were engaged.

It will, I think, be perceived, on a careful ezamioatitm of the

BEPISTVEIIIT OF TDK ^iCIPIC. 48

general's report, that ho far from a victory of the Tohmtders over the
Indians having been gained, the latter were rather the victors ; at the
beet it will not be regarded better for the whites than a drawn battle.
The Indians asked for peace while jet in possession of the field, and
obtained it In granting it' the general tindonbtedly exercised sonnd
judgment. He said, "I have no doubt, with a proper care, the
peace can be strictly maintained;" and so it would have been, undoabt-
edly, but from caases similar in kind to that which provoked these
hostilities.

The gallant general who figured as the hero of the closing scene of
this three days' war was elected and took his seat in Congress as
delegate from Oregon soon after, and during that Congress a large
amount was appropriated to pay the volunteers who were ift thk
service. The notorious Ben Wright not long after was appointed
snb-Indian agent at Port Orford, and came to his death in the spring
of 1855 by treachery at the hands of Indians on Rogue river — in
their view a just retribution for his own treachery. Captain AJden
soon after resigned his commission, and the army lost a gallant and
mentorioos officer.

Having presented the provocation, the progress, and eonchision of
this affair, I leave it to others to infer what may have been the mo>
tives in superseding Captain Alden, and who were the gainers among
the principal actors.

At the mouth of the Coquille river, "on the morning of the 28th
of January, 1854, under the conduct of one Abbott, a recently dis-
charged sergeant of the 1st dragoons, a party of whites attacked the
different lodges of Indian families at daylight, before they were up,
and sixteen Indians were killed and four wounded. The alleged
canse was that the chief had threatened war; that he would not treat
with the whites; that he bad fired a shot at the house at the ferry,
Ac. The chief said he had fired at ducks in the river, and not at the
house." On investigation it was found that this was a wanton, unpro-
voked attack upon inoffensive families.

Iq July, 1855, a council was to be held by the then enperintendeat
of Indian affairs in Oregon with the tribes in this district, at a point
about three miles up from the mouth of Rogue river. The Indians,
on invitation of the superintendent, were assembling. On the day
previous to that fixed for the treaty one, from provocation, wounded
a white man before the detachment of troops that had been sent
from Fort Orford to keep order had arrived. The whites assembled
to the number of sixty, and loudly demanded of the sub-agent the
offender, to hang him. This summary process was stoutly opposed
by that functionary, but on the arriv^ of the troops he agreed to
allow him to be taken under their conduct before a justice of-the
peace for a hearing. The justice bound the prisoner over for trial,
and remanded him in charge of the corporal's guard to camp for safe
custody. The corporal, with two privates, the prisoner, and another
Indian as canoe-man, were returning in their canoe down the river,
when they discovered a boat containii^ three whites in hot pursuit,
and two others, containing whites, following. Soon the foremost came

4i TOPOQBlfHICAL ICEHOIB OF THE

Dear the corporal's canoe and fired into hw party, killing both Indiaoft—
the prisoner and canoe-man. Notwithstanding, the council was held,
and the Indiaus of Rogue river and Port Orford agreed to quit their
Q&tive Hoil and go to reside on a tract that had been deBigaated as
the Coaat Indian Beaervation, further north, repreBented on map No.
14. It was the design to gather all the bands along the coast of Oregon
and place them upon it, there to teach them agricaltare and the arts,
and to forever prevent whites from acquiring the rights of soil npon it

Now, it is certaiolynot to be denied that some of the Indiana, espe*
cially in the upper part of the Rogne Hiver valley, may have objeoted
to the treaty, and evinced some reluctance to comply; but they bad
two years' time allowed in which they were to make preparations and
go, and it is believed that bad the whites shown patience and for-
borne to interfere the eaperintendent would have bad them all re-
moved within the time specified, and Oregon would have been saved
the shame re6ected upon her by the oommiasion of those moat out*
rageone deeds that followed; such, for example, as that perpetratftd
by one Lupton and his party, "who killed 25 friendly Indians, 18 of
whom were women and children;" and that perpetrated by one Hank
Brown and party, at Looking Glass prairie, "in killing from 8 to 10
friendly Indians, invited there by the settlers for protection and
safety. ' '

From Buch acta of cntelty can it be at all Burprising that a retalia-
tory spirit was manifested on the part of the IndiuiB?

We now have Bome of the provocations that in reality gave rise to
the Rogue river war, of 1855, which was first formally and officially
declared against the Indians, in the proclamation of George L. Gurry,
governor of Oregon Territory, October 15, 1855 — assigning as the
casus belli that be had been informed "that the Shasta and Bogue
Biver Indians in southern Oregon, have, without respect to age or
•ex, murdered a large number of our people, burned their dwellings,
and destroyed their property; and that they are now menacing the
southern settlements with all the atrocities of savage warfare;" and
by this same prodamation he oalla out companies of mounted volun-
teers, to conititute two battalions — one to be denominated the
"northern battalion," the other the "southern battalion."

The commanding officer at Fort Jones reported officially to the
United States commanding general of the department, November 2,
1855, that "the recent murders by Indians of women and children
in Rogue River valley, were literally retaliatory of, and immediately
■acceeded the maasacre by Lupton and bis party."

In confirmation of which we have the official letter of the adjutant
general of Oregon, dated October 20, 1855, in which it says "informa-
tioQ had been received that armed parties bad taken the field in
southern Oregon, with the avowed purpose of waging a war of eztermi-
nation against the Indians in that section of the Territory, and had
slaughtered, without respect to age or sex, a band of friendly Indians
on their reeervation, in despite of the authority of the Indian ^ent
and the commanding officer of the United States troops stationed there."

Now, can env conscientious man believe that the.intelligjent, in-

X.ocWc

DEPABTHENT OF THE PACmC. 45

dostnons officer, Captain Smith, who was then, and who had heen,
in commaDd at Fort Lane, in the very centre of these Indiana dnring
the period of more than two years previons, wonld not hare known,
and reported to headquarters, a necessity, if there was one, of more
military force than that of the United States already there to meet
the exigency in the district of which he was the responsible com*
mandant? No report was made by him or either of the commandantB
of Fort Jones or Fort Orford expressive of any sncb necessity.

The governor says he was moved to call ont this force "by a peti-
tion nnmeronsly signed by citizens of Umpqna valley," and ordered
them to rendezvous at Jacksonville, which is the identical focus of
the organization of General Joseph Lane's volunteers of 185S, who
had been bo liberally paid by the United States from an appropriation
disbursed among them jnst previously to the getting up of this moviDg
petition, which, if granted, would bring occupation for eight hundred
men and as many horses for the ensuing winter, and they would only
have to ride about and kill Indians until planting time next spring.
These battalions, with the title of "southern anny," were under the
command of Brigadier General John K. Lamerick, and it is not surprising
that with such an array and the well known hostility of many of the
citizens, some of the Indians flew to their arms and others to the
United States military posts for protection.

On rendering his report of Uarch SI, 1853, General Lamerick only
cites three skirmishes, in which he claims success for the several
divisions of his army; of these, one was with Old John's band of about
200, while on the trail to Crescent City, in which the enemy retreated
fighting to the mountains; 3 whites and 10 Indians killed ; another,
when 100 volunteers attacked 75 to 80, on Cow creek, and drove
them; one white killed and one wounded; four Indians killed; the
third was when a company attacked 75 Indians, six miles south of
CamOB prairie, and drove them, killing three. But be makes no alln*
sion to the shameful conduct of the 250 volunteers who bad agreed
to support Captain Smith's regulars in the fight of Grave Creek hills,
where, by a single blow, had these volunteers come up to the work,
the war would probably have been brought to a close in 15 days after
the issuing of the governor's proclamation; nor does he report other
affairs of more shame to the-"aonthern army" during the succeeding
winter, of which some are enumerated in an official report by tbb
commanding general of the department of the Pacific, May 30, 1856.

He says ' ' no man can have felt more keenly or grieved more sincerely
than I have at the sacrifice in southern Oregon of many innocent
men, women, and children by savage warfare. But what was the
cause? No other than the massacre by volunteers and citizen of
son>s 8^ or more friendly Indians. As in the case of the killing,
by two companies of volunteers, a friendly chief (Old Jake) and hie
band, comprising between 30 and 40 males, besides destroying their
huts and provisions, and exposing their women and children to the
cold of December, who, in making their way to Fort Lane for proteq-
tion, arrived there with their limbs frozen; the killing in the most
brutal manner, with clubs, two old squaws, one of whran was, lame

ATocwIc

4$ TOPOGSifBICAL UBUOIS OF THE

and carrying a child, wfaicti was taken by the heels and its brd&s
dashed oat against a tree; that of the same Brown who was concerned
in the massacre by Lupton, daring which an Indian boy, twelve years
of age, who could speak some EngliBlt, ran to him and said ' I have
done yon no harm, my heart is good towards yon, you will not kill me.'
Brown replied 'Damn your Indian heart,' and seized him by the haic
and with hia bowie knife severed bis head from his body ; the determi-
nation of certain citizens to murder 400 friendly Indians at Fort Lane,
waiting there to be conducted by the superintendent of Indian affairs
to the coast reservation, but prevented by Captain Smith, the com-
manding officer; the similar determination in the Willamette valley to
kill tbe same Indians, and all who might accompany them, should the
attempt be make to take them to the reservation."

It has already been said that an immediate effect of the organiza-
tion of the govemor'a southern army was to canae some of the
Indians to stand to their arms, one of their first acts afterwards was
to attack the little party of 10 under Lient. Kautz, 4th infantry,
when about closing the exploration for a road from Port Orfoi'd to
the Oregon trail in the direction of Fort Lane, (see maps Kos. 10, 12.)

In this attack, which occurred on the 25th October, 1855, at a point
marked with that date on the map, the lieutenant made a successfal
defence without serious hurt, and the party made their way safely to
Fort Lane, this officer having, in the mean time, discovered the position
of the main body of Indians then under arms to be in the Grave
Creek hills, about 46 miles from Fort Lane.

All tbe disposable troops at the fort were put in motion. The
QommaDd of regulars consisted of 85 men and 4 officers: Capt. A. J.
Smith, let dragoonsjFirstLieutenantH. G. Gibson, 3dartiUery,'Second
Lieutenants A. Y. Kautz. 4th infantry, and B. Alston, Ist dragoons.
At Grave creek they were joined by 250 volunteers, under Colonel
fioae. From this point they moved in three detachments by different
routes towards the position of the Indians. Unfortunately, from an
error of the scouts in regard to the location, all three detachments
came np in front instead of on different sides of the Indian camp.
About daylight 3l8t October the regulars, accompanied by two
companies of the volunteers, after climbiug very steep and difficult
hills, came in sight of the Indians. Fjres were then imprudently
bnilt, which gave tbe Indians warning. At this point the baggage
•ad provisions were left in charge of Lieutenant Alston. The command
descending a mountain gorge, and climbing the opposite acclivity,
came upon the Indians, charged and drove them from the crest of the
hill on which they were encamped and some 50 yards into the brash
over the crest.

From the top of the hill for a distance of 1^ mile itwas-a dense
ttiicket; on the left and on tbe right there was a precipitoos descent
into a gorge filled with large pines, with undergrowth, in which the
Indians concealed themselves, and all efforts to dislodge them proved
futile. Several charges were made by the regulars, but the men
were picked c^ so effectually by the Indian rifles that but little
advance was made into the thicket. The regulars stood their grovnd

i,C.ooglc

DBPABTHKirT OF THE PACIFIC. 47

veil, bat Ihe volnnteers, with the exception of about fiftf , were of do
benefit in the action.

The troops continued to occnpy this position until near Bunset, now
and then exchanging shota with the Indiana. After posting pickets
the troops descended to a opring to bivonac for the night, their loss
during the day having been thirty killed and woanded. The next
morning Lieutenant Qibson, with ten men, >.vb8 sent up the hill to bring
down the dead body of one of his detachment; this had barely been
accomplished when the Indians came in Urge force around, and after
exchanging DnmerooB shots, with but little effect, save the wounding
of Lieutenant OibKm, for two or three hours, were driven off, and left
the troops in poHeseion of the field. At noon on the Ist November
Captain Smith having found by his experience the day before that no
confidence could be placed in the promised support of the volunteers,
ordered a return to Fort Lane, which was reached the next day.
^- The number of Indians was estimated at 300. The number of
troops actually engaged did not exceed 120, with every disadvantage
of position. The Indian loss, according to their own admission after-
wards, was 7 killed. The greater portion of the regulars were dra-
goons, and their masketoons proved utterly inadequate to cope with
the riifles in the hands of the Indians.

No effort of Captain Smith could persuade the volunteers to go
round and take the Indians in the rear, while the regulars would
charge in front, and it seems only 60 out of 250 of the volunteers of
the governor's southern army could be induced to take any part in
the action, after coming to the point where, with resolution, they could
have been instrumental io capturing the whole body of Indians in
arms.

In the case of this southern army of Oregon we have the example
of a governor of a Territory organizing a military '^rce, with a gen-
eral officer at its head, and sending it into a field wituin the command
assigned by the President to a general officer of the TTnited States
army; the said governor in the mean while not so much as conde-
scending to inform the President's officer of the measure, nor of the
orders, it now appears, he issued to the volunteers which prescribed
the relations they were to hold with the United States troops regu-
larly stationed in the same field. It was only by accident, as it were,
in the following month - the United States officer commanding the
department of the Pacific obtained a knowledge of the governor's
military measures. To say nothing of the question of the legality
of those measures, one iuniliar with military usage cannot fail to
perceive in them either a marked contempt of the authority of the
President's commander of the department, or else a total want of
knowledge of that courtesy which of right and by usage is due to
such officer.

On the &th of the same November, while Major General Wool,
United States anny, in command of the department of the Pacific,
was at Crescent City, <m his way to the field of Indian hostilities,
which had broken out in the preceding month in the Takama country
to the north of the Columbia, he received the first intelligence of the

tioiwlc

48 TOPOOIUPBICAL HEKOIB OF THE

fight just deecribed, and it waa then that he also first received au-
thentic information of the governor's declaration of war, and of the
southern army of his Tolnnteers being in existence.

General Wool's presenee iu eonthem Oregon at this jnnctare was
exceedingly opportune. He was personally in position to enable him-
self to judge of the necessary measures to be taken for the foture
duties that would properly develve on the troops under btu own com-
mand in this district Accordingly, acting upon the basis of humanity
towards the Indians, and at the same time having a due regard to the
safety of the settlements, the commanding officers of the United
States army in this district were instructed during the winter to
receive at their posts and protect from violence dl ifriendly lodiaas
who would come in and express a willingness to go in the ft^owing
spring on the reservation set apart for them.

In spite, or more probably in consequence, of the operations of the
governor's southern army during the winter, it turned out iu the
spring that the number of Indians in arms had increased; that they
had the entire command of the lower part of Rogue river; were be-
sieging a block -house filled with citizens near the mouth, and were
really threatening the destruction of all the whites there; while many
of the friendly Indians had repaired to Crescent City, Fort Orfor^
and Port Lane for the promised protection, aud to be ready to move
according to the terms of the treaty.

Several bands, deemed unfriendly, were in arms at different places
in the valley above; among these was that of Old John, frho said
"the whites are determined to kill me and my band and we may as
well die fighting as in any other way." Indeed, this band alone bad
become so formidable as to defy the "southern army;" and finally it
became necessary for the superintendent of Indian afisirs, and for the
eafety of the settlers, to call upon the regular troops to end the
troubles on Eogne river.

Accordingly, General Wool, being previously well advised of the
topography of the district, and the probable positions of the bands
in arms, devised and put into execution the foHowing plan of militaiy
operations for ending this Bogue river war by the United States
troops. After sending a detachment of troops from Fort Lane to
guard and conduct the friendly Indiana waiting there to the reser-
vation, there was left a small disposable force under Captain Smith,
Ist dragoons.

One company (Captain Augur's, 4th infantry) was ordered down
from the Columbia river to Port Orford, where Captain (Brevet
Major) Reynold's company, 8d artillery, was already stationed; as
Boon as Angur's could arrive there would be troops enoQgh to protect
the friendly Indians and public stores collected here, and leave
another small force disposable for the field.

Captain Floyd Jones' company, 4th infantry, was ordered from
Fort Humboldt to Crescent City, to protect all supplies and pnbUc
property that might he landed there, also to guard the friendly Indiuu
who bad been gathered there by the saperintendent of Indian affiain
in Oregon.

n,g:,.ndtyC00glc

DEPISTHENT OF THE PACIFIC. 49

Captain Ord's company, 3d artillery, then stationed at Benicia, was
ordered to be in condition for field service, and in readiness to embark
at a certain time in the steamer from San Francisco to Oregon.

Brevet Lieotenant Colonel Buchanan, jnnior, major 4th infantry,
^ras selected by the general as the commanding officer to eXecQte the
plan of field operations.

On the 5th of Uarch the general himself embarked with Ord's
company. Lieutenant Colonel Bnchanan, and a few officers of hia staff;
Captain Cram, Corps Topgraphical Engineers; Lieutenants Bonny-
castle and Arnold, aids-de-camp, and Assistant Snrgeon Milbau, for
the field of operations; and while on his way np explained very fully
to Lieutenant Colonel Bnchanan the plan he desired him to execute.
Lieutenant Bonnycastle subsequently relinquished his appointment
as aid, and joined the force in the field.

Ord' B company was to land at Crescent City, and the movement to
commence from there as soon as it would be judged that the force
from Fort Lane under Captain Smith, he having been adviued, should
be able to reach the Illinois river, see map No. 9; and the force at
Port Orford was to proceed towards Hogne river, all three being
subject to the orders of Lieutenant Colonel Buchanan.

The general believed that by starting the three forces, all tending
ultimately to meet somewhere near the mouth of the Illinois river,
that from Crescent City moving towards the mouth of Rogue river,
that from Fort Orford towards the same, or to a point higher up, and
after uniting both to ascend the river, while Captain Smith's would
be descending the valley, all the hostile bands would be most likely
to be encountered or ferreted out. He was aware of the natural
difficulties of the ground, and of the severe labor the troops must
apply to the task.

The field of operations is represented on map No. 12, and the points
where engagements occurred are designated by the symbol of two
awords crossed.

On the 8th of March Lieutenant Colonel Bnchanan landed at Cres-
cent City, and in one week after had bis command in motion. The
force from Crescent City left on the 15th and encamppd at the month
of Bogne river (Ord's company skirmishing there with the Indians)
on the 20th of March.

And now it was that most of these Indians began to show signs of
yielding, but their chiefs were tardy in coming in. The McAnooteney
band were obstinate; their town was 11 miles above the mouth, on
the right bank, (seen on the map,) at the entrance of a small stream
from the west. On the 26th of April Ord's and Jones' companies,
112 men, Captain Ord, Captain Jones, Lieutenant Drisdale, and Doctor
Millman, were sent up to raze that town; it was destroyed, but not
without obstinate resistance. The Indians were in force, and, having
the advantage of descent and cover, attacked the troops in flank and
rear. It was a spirited fight, resulting in the Indians being driven
up and across the river; then the troops withdrew in good order,
loeing Sergeant Nash, however, who was shot from the bush, and ar-
rived in camp the next night. t 'oooIp
H. Ex. Doc. 114 4 "' '" ^

50 TOFOQBA^CAL MEUOIB OF THE

On the 29th of April CaptaJD Ord's company moved from camp at
an early hour and encotintered the Indians on the Gbetco river, where
he fonnd them in force on the right bank. A ranning fight ensued;
the Indians, running faster than the pursners, succeeded in crossing
the river and dispersing themselves in the bills.

Captain Smith's force had descended the valley frcm Fort Lane,
and the chief in command had consented to hold a council, he, as well
as the saperintendent of Indian affairs, hoping that all now standing
aloof might be indaced, after the lessons already received, to come
in, lay down their enns, and go npon the reserve.

Oak Flat, on the right hank of the Illinois, was designated as the
coancil ground, and there the conncil was held on the 21st and 22d
of May, the result of which was that most of the Indiana agreed to
come in, and three days were allowed tbem to rendezvous at Big Mea-
dow, above the Big Bend of Rogue river, where they were to deliver
np their arms, and thence to be escorted by the troops to Port Orford.
All! "

All but Old John's band promised to come in with seeming sinceri^.

The whole command, except Ord's company, were present at the
council; that had previously been sent to Port Orford to escort a pro-
vision train to Oak Flat, and as it had not arrived, Reynolds' company
'was despatched, by the trail seen to the south of Pilot Knob, to meet
iit should it come by this route; but it came by the mouth of the river,
itbeuce on the east side. It was highly important to protect this train,
iwithoat risking an attack.

On the 24th Captain Smith, with SO dragoons and 30 of the 4th in-
fantry, 80 in all, left the council ground for Big Meadows, to receive
(the arms and to escort the Indians to Port Orford; it was probably
iintended to conduct them thither by the most direct trail, after open-
ing or improving it, from the Meadows, Smith had crossed the river
:attd encamped at the point marked C on the evening of the 26th, Au-
gur's company having accompanied him nearly there to escort a train
'back. On the day of Augur's return, probably the 25th, the chief
in command moved from Oak Flat down the Illinois, leaving Jones'
'Company at its mouth, and himself, with Augur's company, crossed
JRogue .River and went up to a point marked B, about three to five
aniles west, to open or improve the direct trail, to which I have re-
ferred, from Big Meadows.

It will now he seen that on the evening of the 26th of May Lien-
Ttenant Colonel Buchanan's forces were situated: himself, with Augur,
at the point B; Ord, escorting the train, on the east sideof lU^ne
river, within about ten miles of Oak Flat; Jones, at the junction of
the Illinois; Reynolds, about ten miles from that junction, on the Port
Orford trail; Smith, at Big Meadows, at the point C; and the main
'body of the Indians were about five miles above the meadows, on the
ibank of the river.

It had rained very hard all day the 26th, and this was assigned to
Captain Smith as the reason why the Indians had not arrived at tb e
place of rendezvous. As the rain had rendered the trails muddy, this
seemed a reasonable excuse, and be trusted they would all be in by
the close of the following day, ,-^ ,

n,g>.dtyC00glc

DEPABTHENT OF THE PACIFIC.

Batde of Big Meadotos.

Afi before stated, Captain Smith was encamped, on the evening of
the 25th of Ma^, at the point C; but before many hours had elapsed,
that same night, circumataTiceB occnrred caneing him to distrust the
Indians, and he immediately commenced moving his camp, and hy mid-
night his command were occupying a much better position — an oblong
elevation, 250 yards in length by 20 in width, represented on map
No. 13, between two small creeks entering the river from the nortb-
vrest. Tbia is a mound of low elevation, and between it and the river
there is a narrow bottom, which is Big Meadows. The southern bor-
der of the mound is abmpt and very diEBcnlt to climb; the northern
border more difiBcnlt; the west end is approachable, and can be as-
cended with some difficulty, while the eastern is a gentle slope, easy
of ascent. The top is a plateau of an area sufficient for one company
to encamp on. Directly to the north there is another mound, abc^nt
the same size, covered with scattering trees and brnsh. The summits
of the two are within rifle range, and at about the same elevation.

Early on the morning of the 27th Smith despatched an express to
apprise Lieutenant Colonel Bachanan of his new position, and that the
Indians had not come in, and said to the express, "I think Old John
may attack me. " It is to be observed that this chief bad not assented
to the agreement of the others. The express reached his destination
that afternoon. The lieutenant colonel sent him back to Smith, and
requested to be informed if he desired to be reinforced. The express,
however, could not reach Captain Smith, and,finding he was surrounded
by Indians fighting furiously, returned, bat, getting lost during the
night, did not report to Lieutenant Colonel Buchanan until 10 o'clock
the next morning, (28th of May.)

The chief in command immediately called in Augur's company,
(then cutting a road,) and ordered it to join Captain Smith at the Big
Meadows. The shortness of the time in which Captain Augur exe-
cuted this order proved that gallant officer to be equal to the emer-
gency. The distance, on the very difficnlt foot trail, is nearly eighteen
miles, and it was accomplished in four and a half hours. In the mean
time stirring scenes were being enacted at the Big Meadow mounds.

Smith's command had been np all night moving his camp, and, not-
withstanding his men were much fatigued in consequence, by dawn of
day his position was defensible. After starting the express off, and
as the morning light increased, numerous parties of Indians were seen
coming from all directions, and soon the north mound was occnpied
by a large number.

A body of 10 warriors came up the gentle slope of the east end of
the moand, occnpied by the troops, as if to enter camp. They signi-
fied a wish to see Captain Smith, as they said, to give up their arms
to him; hut that officer was on his guard, and directed them to
deposit their arms outside, designating a spot where all the Indians
most lay down their weapons. It afterwards appeared that this was
a stratagem to seize the person of Captain Smith. By the precaation

52 TOPOOKAPHICAl. UEHOIB OF THE

already taken of plantiog a field howitzer so as to sweep that slope,
and of stationing Lieutenant Switzer with the infantry, to defend at
all hazards the crest of the western slope, he was in condition to make
good his refusal to allow the warriors to enter his camp, and after a
short colloquy they retired, and were seen to hold consultation with
their chiefs on the opposite motind, where it had been discoTered
Old John was very active in giving orders.

It was now apparent to Captain Smith that an attack was medi*
tated soon to he made upon hie position. At 10 o'clock on the morn-
ing of the 27th May, the Indians having completely aorronnded,
opened a smart fire upon it, and simnltaneously charges were made
up each elope, upon his flanks, but tbeee were repulsed with the
howitzer and infantry. Now the voice of Old John rose above all
others, issuing his commands in tones bo clear that they were dis-
tinctly heard in Smith's camp, and interpreted to him. DariDgtbe
day this master spirit frequently ordered a chage to be made by his
warriors, and it was attempted, but as enccessfully repnlsed as the
first. The Indians were continually firing rifie shots from all quarters
into Smith's camp, and parties oi\en boldly attempted to scale the
steeps of his mound, which protected bis front and rear. In tbeae
desperate efforts at escalade, which gave the troops ample work to
resist, several Indians on coming near enongh were made to fall, roll
over and bite the dust. Only 30 of Smith's men had anas at ail
adapted to long range ~ the 50 dragoon mnsketoona could only tell
when the enemy came uear. The Indians were much better armed
and delivered effective shots, themselves urharmed, comparatively,
from the north mound. The battle was thus prolonged till oigbt.

During the night of the 27th Smith rendered the position of his
men more safe from the enemy's rifles, by digging pits and erecting
breast defences, such as they were, with his few articles of camp
equipage.

On the moruii^ of the 28th the Indians, refreshed, and aagnmented
in numbers, again opened fire upon the troops, and the battle was
continued pretty much in the same manner as it had been the day
previous. Old John could be heard above all the din shouting, nrging,
encouraging, and even cursing his warriors to stimulate them to a
renewal of the desperate charges, which, as often as attempted, were
successfully repulsed, while Smith's men were now less annoyed by
the rifle shots of their enemies. The troops were directed by their
officers to husband well their ammunition, and never to make a shot
unless there was a fair prospect of its telling. But the 8hot« from
the north mound had told sadly upon the little command, and AseistaDt
Surgeon Crane had his hands full. The dead and the wounded num-
bering 29.

About 4 o'clock p. m. the Indians were observed to be forming,
under the direction of "Old John," in two bodies, apparently with s
view to charge both flanks simultaneously, as well as the front and
rear, at the same time with an uneoal number. Smith was not mis-
taken in thia conjecture; soon tiiey were seen advancing, and the
fianking parties were h^ way up, Smith, in the mean time, while

DEPASTUEHT OP TH8 PAOIFIO. 53

giving orders to hie men how to act in this emergency, caught glimpsea
ID the distance of approaching nnmbers. Aogur's company bad
come I and that officer gallantly entered the arena leading his men at
doable quick, charging the Indians in rear. At the same moment
Smith, for the first time, ordered a charge from his right and from
his left, down both slopes of his moand, npon tho advancing foes.
And now it was that the commanding voice of their cliie£ was heard
no more, the Indians broke and endeavored to escape by crossing
the river, and victory declared for the troops,

The number of warriors who had arranged themselves under the
banner of Old John for this last struggle for the defence of their val-
ley was about 400.

This chief was known to be brave and capable to command. He
had planned his operations well and extensively. After learning of
the scattered positions of the forces under Lieutenant Colonel Bu-
chanan, he counted upon destroying Smith's command on the morn-
ing of the 27th in a short time; then to immediately descend and
attack Jones, at the mouth of the Illinois, before Augur's company,
being on the opposite side of Rogue river, at some distance, and
Seynolds, at a still greater distance, could come to the rescue; and
then to cross the Illinois river and attack Ord and capture his train.
So confident were his warriors that Smith would fall an easy prey
that they had pieces of rope to the number of Smith's men in readi-
ness to hang every one.

On the 29th, the next day aHer their defeat, the Indians sent word
to Captain Smith that they wanted "a talk." On the 30th the lieu-
tenant colonel in command arrived at Big Meadows with his whole
force. The Indians again agreed to come in and go upon the reserve.
Old John was the last to give in, bnt finally assented.

About 20 miles above the mouth of Rogue river Captain Augur had
another fight with a party, about the 8th June, and brought them in;
and by the last of Jnne the Bogue river war was at an end, and alt
the Indians that had defied the "soathem army" of Oregon eo snc-
cessfully were either at or on their way to the coast reservation in
western Oregon.

Tba expectations General Wool had entertaiued of the officer who
was selected for the command in this important service were fnlly
realized, and the manner in which hia plan for closing this war was
execated by Brevet Lieutenant Colonel Buchanan met the general's
entire approbation.

Weatem Oregon. — Map No. 14 shows so much of this as includes the
coast Indian reservation, and the military posts Umpqua, Hoskins,
and Yamhill, and the upper part of the Willamette. These three
posts were established by General Wool's orders in July, 1656, for
the purpose of guarding the Indians, in number. about 1,^00, whom
his humane measures bad been ioatrumental in moving to this reser-
vation. After the removal of these Indians from the Bogue river
valley and Port Orford district, it was no longer necessary to main-
tain troops at Fort Lane or Fort Orford. The positions occapied by
the new posts, considering the mountain pasaes through which the

54 TOPOOBAPHICAL UEMOIB OF THE

Indians could escape and return to their old grounds, were believed
to be the best that could have been selected to prevent their escape
and at the same time to afford protection to the settlementa in this
part of tho Willamette and to the Umpqua valleya. The reserva-
tion is about 72 miles in length, coastwise, and 24 miles in average
width, extending from the Pacific back to the summit ridge of the
Coast rang% of mountains.

Should it be deemed expedient Fort Hoskins might be moved into
the reserve and placed on the Siletz, at a prairie seen marked on the
map at P.

From November to June steamers ascend the Willamette to Cor-
valis, and to Dayton on the Yamhill during the whole year. The
roada are passable for wagons between Fort HoskiRS and the neigh-
boring towns.

Diatancea.

From—

To—

MIki.

The Willamette is tributary to and eutere the Columbia aboat 6
miles below Fort Vancouver. Its general course is north, parallel to
the eeacoast. Sea steamers of 10 feet draught ascend to the city of
Portland, 12 miles above its month, and 144 miles by the steamers'
ran above the bar of the Columbia. Above Portland the Willamette
becomes of less depth, so that small river boats are used to ascend
12 miles to Oregon City; at this point navigation is interrupted by
the "Willamette falls," Here the whole river comes tumbling in
majestic grandeur over the rocky barrier, making the total fall 30
feet vertical in a short distance. Above these falls, for a distance of
SO to 55 miles to Salem, the stream ia navigated by light draught
steamers in favorable stages, and even to Corvalis between Novem-
ber and June.

The valley of the Willamette ia about 120 miles in lengtfa, north
and south, and about 36 miles in breadth, east and west, giving about
4, 100 square miles, most of which is good for agricultural purposes.
This vaUey is the trough between the parallel mountain ranges, the
Cascade on the east and the Coast range on the west side, and it is
one of the very best in Oregon, whether we consider its magnitude,
climate, soil, or facilities of outlet. Wheat, barley, oate, potatoes,
apples, and pears are raised in great abundance, and it would sustain
a population of 150,000. Its prodncts might be immense in propor-
tion to its area; but where would a market be found for. its anrplosf

IffiPABTlDEHT OF TBE PICIFIC.

Distancea by the roods.

From—

T<^

Mil-.

Snerirarnller)

?;jKli°*'' ' "'---

OolDmU*

The militaiy connexions by road between northera California, aod
soatherD and western Oregon, are as follows going north in —

Prom—

To—

Hilee.

Foit JoM«, M Trak>, CMibrala

FortlADe, BogaeBlTer nllef, Oregoil.
Bthu' fenr, acroM Bogoe ilv...do...

Btmu- ferty do...

OnTB creek . .....do...

Cow creek, Umpqiia Ttlley do...

Eliff. BODth extnimltT caSon do...

CeBonTllle, Dorth ext'r olk>a...do...

HvTtle creek do...

BoiDd Prmlrio do...

Boeebarg, (De«r creek) do...

?:X?.™'-:;:::::::::::t::

Hontk Fui creek do...

aoottabarg do...

Hkton do...

Moath pMi creek do...

anelkw, (Long 'Toni creek) do...

8tart-«Mnt do..,

T<at Tukoonrcr, (rerrr, Columblii)....

a»

SSLi::::::::::::::::::;:::::

^^S'™:;::::::::;;:::::::::

Boottabuiv

Fort Ho.kto.v.1 ..!"::".'.*"::::

There is a wagon road from Fort Jones to Port Lane, crossing the
Giskion moantain, which is bad to pass before the let to the 10th
June. When it is in good condition it t^ea three days for a wagon
to pass between the two forte. ,-. ,

n,g>ndtyL.OOglc

56 TOPOQSIPHICAL HEVOIB OF THE

From Fort Lane a company of dragoons marched to Fort Yancon-
Ter ferry on the Colnmbia river, by the route above given, in 21
days in the month of November, when the roads were very heavy,
taking its wagon train along. This was at the rate of 13 miles per
day.

From Fort Umpqua, via Scottsburg and the Long Tom creek, to
Fort Hoskins the road in many places on the first part of the route
would be very difficnlt to march a command over. 1 have already
referred to the importance of improving this part by an expenditure
from the public treasury for military parposee. I have no doubt if a
good road were opened on this route one of the three po&ts now
required to guard the coa«t reservation might be dispensed with.

Northern Oregon.- — -The part of this as far to the eastward as Fort
Dalles is shown on map No, 16; thence to where the parallel of 46
degrees of north latitude strikes the Columbia is Bhown on map No.
20. The length of the portion of the Columbia which is in part the
northern boundary of Oregon is about 345 miles; that is, from its
mouth up to the point where it is met by that parallel 5 miles below
the old Hudson Bay post, Fort Walla- Walla. This same portion also
makes a part of the southern boundary of Washington Territory.
From the said point, about 5 miles below Fort Walla-Walla, in going
eastward, the boundary between the two Territories is that parallel
of latitude continued to the summit of the Rocky mountains.

The Columbia is Huccessfnlly navigated by a sea steamer, entering
its mouth under the charge of a pilot in fair weather at high tide,
drawing 18 feet water, up to Fort Vancouver, a United States mili-
tary post on its right bank, 138 miles above the bar; and by one of
10 feet draft up to the Cascades, which are 45 miles further up the
river. At the Cascades all navigation is efiectaally stopped by rapids
and falls, in which, for an extent of 4^ miles, the total fall is 21^
feet. In the pool of the river, extending 45 miles from the head of
these falls to Fort Dalles, on the left bank, the river is again navi-
gable by email river steamers. From Fort Dalles up to the bead
Des Chutes for 15 milee navigation is stopped by rapids; thence the
river is again navigated by oar boats about 100 miles, to Fort Walla-
Walla, and this reach is not interrupted by rapids for 60 miles Air-
ther up.

From the mouth to Fort Dalles, 233 miles, the valley of the Co-
lumbia seems to partake more of the character of a crack or clefl in
the earth produced by volcanic violence than by any other cause.
There is ver}' little of the soil that is at all desirable for cultivaticHi.
There is plenty of timber of poor quality, fir, and Oregon pine and
miserable oak on the islands, but not a tree grows there that is fit for
ship building, except for small spars or yards. The lumber that is
made from these forests is of a coarse kind, answering for only the
frame work of buildings.

To one who has personally examined the physical character on the
ground, rather than judged by the physical geography as presented
by the few maps, which are only distinguished by their paucity of
information of the vast region drained by the Columbia, the idea iB

n,g:,.-,.dtyC00glc

DEPABTMEHT OF THX PACIFIC. 67

irresistible that it can never become one in which civilization can
flourish. This is the general view to be taken of Oregon from the
Pacific to the snmtnit of tbd Rocky moantain range. It is trne there
are valleys and spots, and even some hiil-sides which, but for the
formidable physical barriers sepurating them, would be desirable.
Snch obstacles as the Sierra Nevada, the Cascade range, and the
Coast range of mountains running across a State, render all intercom'
mooication almost impossible without vast expense, and their sterile
sides and broad bases leave but a small fraction of the total soil fit
for cultivation. The nomber of sqnare miles in Oregon is nearly
112, 000. Of this area there is not more than 40, OOO square miles at all
fit for cnltivatioD, even supposing good markets for surplus and easy
intercommunication. But from the eternal barriers separating the
little fertile valleys, the difficulties of acceBS, the want of harbors and
markets, not more than one-eighth part of the whole soil of Oregon
can be regarded aa at all adapted to agricultural industry of any
profit. These isolated vaileys are exceptions to the general rule of
barrenness or sterility which attaches to the vast region drained by
the Columbia — a region only fit. as a general rule, for the occupancy
of the nomadic tribes who now roam over it, and who should be
allowed peacefully to remain in its possession.

The Columbia river is important for military purposes in connexion
with these tribes. On this line we are now keeping up a post at
Vancouver, Cascades, Dalles, and Mill creek; the last, however,
being some 30 milee to the south of the Colombia, in the valley of the
Walla-Walla.

Only one of these, Port Dalles, is in Oregon ; but it is an important
point. It is to the Pacific slope what Fort Leavenworth la to the
east slope of the Rocky mountains in its military aspect. In all the
country above the Dalles mounted troops may be used to advantage;
but to give the employment of soch more economy a communication
should be made from Fort Vancouver along the banks of the Colum-
bia of a nature to allow a troop of dragoons to pass along it by their
own feet, without the necessity, as now, of transporting the animals
in boats. On this subject I here quote what I have said on a former
occasion: "Congress appropriated for a military road from Fort
Vancouver to Fort Dalles. I am satisfied, from my own reconnais-
sance, a good wagon road on the banks of the Columbia between
these two points cannot be well and properly made short of $450, 000.
And even snppoeing it made at this cost, the principal part of the
transportation for military purposes would continue to be done by
steamboats. But there is an improvement that could be made in the
bad places on the existing trail, consisting in improving this trail
into a road that will enable dragoons to pass readily over it at all
seaaone. It would then save the great cost now incurred for the
transportation of horses, mules, and cattle upon steamers for military
purposes. The sum of $25,000 would be ample for this kind of im-
provement; and it is precisely what is wanted by emigrants and
stock growers to drive their stock on down the Columbia,"

I have already said there are no steamboats now Qariffating any

58 TOPOORAPmOAL UEHOm OF THE

part of the Golambia above Fort DalleB, and above it, in aaj directioQ
into the Indian conntry, transportation must be by land for all mili-
tary purposes, except in that direction which would be accommodated
by row boatsabove Des Chutes.

The district of northern Oregon, lying between the baaea of the
Cascade range and the Bine moantains, has mnch BHrneneae all the
way from Fort Dalles to the Umatilla, (map No. 20.) It is high and
rolling prairie and bears good grass. It cannot be said to be well
watered, although water occurs at convenient distances aloi^ the
road. The streams are approached bj steep descents, and are geoe-
rally fringed with Cottonwood. In all other places the country is
destitute of timber. In the immediato valleys of the streams the soil
is often fertile, hut these valleys in no case exceed half a mile in
width. The tributaries of the Umatilla become almost dry in the
fall, and that river itself becomes a mere rivulet in September.
Along the base of the Blue mountains are numerous springs, which
always yield a supply.

The whole region of country embracing the valley of the Umatilla,
and those of its tributaries, is well adapted to grazing.

The road between Fort Dalles and the west base of the Blue
mountains is as good as natnral roads generally are in hilly prairie
districts. This is the road followed in passing between Fort Dalles
and the military post in the Walla-Walla valley. A judicious ex-
penditure of $25, 000 on this road would make it good for all purposes.
The distance between the two posts is 164 miles to go round by Mc-
Kay's, on the Umatilla. From Fort Dalles to the Indian agency on
the Umatilla it is 111 miles; and from Fort Dalles to the spring at
west base of Blue mounttuns it is 143 miles.

Dbtanotfram—

Ti»-

MUm.

vniiowWk\\v:/.:""":":::: :

ffiy?..!!'"„::::::::::;::::;::

Eaatem Oregon is shown, on map No. 15, so far as to include an
extensive district of country lying between the Blue moantaina and
the Bocky mountains, presenting the lower part of the Snake river,
and the headwaters of the Salmon river. This map exhibits the
topographical features of a considerable extent of Indian coontry
hitherto little known, except at a few points along the emigrant road.

In the summer of 1854 a party of emigrants, on their way towards
the Pacific, were attacked and several massacred by Indians in the Fort
BoisI district. lu May, 1865, Major General Wool, commanding the

iX'-ooglc

VEPASTiSEST OF THE PACIFIC. 59

department of the Pacific, repaired to Fort Vanconver, on the' Co-
lumbia, and organized an expedition coneiBting of an equivalent of
two mounted companieB, with inBtmctions to proceed into the Fort
BoiaS district, with a view to protBcting the immigrants that might
be on their way; also to apprehend and bring to justice the Indiana
who committed that massacre. Lieutenant Mendell, Corps Topo-
graphical Engineers, then serving in my party, was designated as the
topographical engineer officer to accompany the command fbr the
purpose of making a reconnaissance of the country. This map (No.
15,) gives the topography obtained during all the movements of the
command. All the objects contemplated by the general in organizing
and Bending out this expedition, under Brevet Major Q. 0. Fuller,
captain fourth infantry, were fiiUy realized through the energy of the
officers and men composing the command. Not only were the offend-
ing Indians apprehended, tried, convicted, and executed, but protec-
tion was afforded to immigrants and much valuable information of the
tribes and country they occupy was obtained. The moral effect pro-
duced npon the Indians in this region of country was decidedly
beneficiej in restraining their subsequent conduct.

From the loest boat of the Blue momiains to Powder river. — In going
eastward, afterleaving the Umatilla, we begin immediately the crossing
of the Bine mountains, which divide the waters flowing into the Snake
from those running into the Columbia. The road is hard upon both
animals and wi^ons. After attaining to a height of 1,500 feet we
come npon undulating table lands, heavily timbered, with occasional
prairies of good grass. From the snow and rain falling upon these
mountains the Columbia derives no insignificant share of her waters
conveyed to her by many streams heading in them. Locked within
these mountains is the valley called Grand Bond, of irregular shape,
from seven to twelve milea wide. Its soil is good, bearing excellent
grass, and it ia well watered by e river bearing its own name. It is
the beat valley in the whole country shown on this map ; it is the
iavorite summer resort of several tribes of Indians whose, winter
homes are on the west side of the Bine mountains. It was in this
TBiley that, in the summer of 1856, the "strike," to use his own
word, was made by Lieutenant Colonel Shaw of the Washington vol-
unteers. He reports that "with 160 men and officers he chained
the Indiana assembled there on the morning of the 17th July, near
their village, and dispersed them, following and killing them, unUl
they hid themselves in the rocky caiSons." From his own report of
his killed and wounded, however, it may be b question whether his
party obtained a victory, especially considering his previous threat :
" If I find them I will strike them, and follow them until I drive them
out of the country;" the fact that he reports "it impossible to state
how many of the enemy were hilled;" and the remaining fact that he
did not follow them into their hiding places, although his men were
mounted and armed.

This exploit may be regarded as the last "strike" of the Wash-
ington volunteer army raised by the governor of that Territory, and
sent June 8 to the Walla- Walla valley. ■ Unfortunately for the glory

TOPOOBAFHICAL MBMOIB OF THE

of this. achievement, it has been reported that "the whole object
was to plunder the Indiana of their horses and cattle, and provoke a
prolongation of the war." On learning the destiny of Lieutenant
Colonel Shaw's force the general officer of the United States army
commanding the department instructed Colonel Wright, 9th infantry,
to "order all the volnnteera out of the country by the way of the
Dalles, and if they do not go immediately they will be arrested, dis-
armed, and sent out."

DUtanoe from—

To—

HUe*.

Weat end Qnud Bondvallej

Diride Eood utd Powdei riven

It is apparent that the Grand Rond valley affords an excellent posi-
tion for a number of troops to remain in, should occasion require it,
for some time.

From Poivder river to Eamas Prairie. — The artemieia, or sage bosh,
is found in profusion over the whole of this district, giving a most
desolate aspect to the landscape in which it prevails. It grows in
light, eandy soil, that produces nothing else.

On Burnt river the hills are high and grassy, leaving narrow
valleys between. The road is very hilly and circuitous, crossing the
stream nine times before leaving it, at very rocky places; the road
follows down the stream to near its mouth, and then strikes Snake
river, which is the south branch of the Columbia, and drains all the
country lying to the south and east of the Bine mountains even to the
Itocky mountains.

.Fort Bois^, on the right bank of the Snake, is but a small adobe
house, with a few articles of traffic. It is regarded as an important
station. There are several small islands here in the river, wUch are
fertile and well timbered.

BoisS river enters the Snake just above the fort. It is large, and
not fordable here at high water. The emigrant road is along this
river. Fifty miles above the mouth the road leaves the river to
avoid a deep caSon ; still further to the eastward, where the road
f^ain comes to the river, it is again seen running through a similar
chasm of basaltic rock 300 to 600 feet deep.

Seventy miles from Fort Boisfi a road called "Jeffrie's Cut-off"
departs from the old emigrant road, and runs via Kamas Prairie to
Fort Hall, an Indian trading post. It is a new route, and compares
unfavorably with the old, except in grass, in which it is superior.
Between the old road and £ama& Prairie, it is very ragged and
broken.

Eamas Prairie is a long narrow plain, of irregular width, from 15

Xiocwic

DEPlE'mENT OF THE PACIFIC. 61

miles at ita western to a narrow neck at its eastern extremity, and
about 68 miles long, from east to west. It is bounded on tbe north
by a high range, separating its waters from those rnnning into the
Boia£, and on the south by another ridge of less height. The plain
has some timber at its eastern end; it is watered by numerona streams
uniting and discharging themselves into the Malade river, which
passes by its eastern extremity. Most of the small streams of this
prairie become nearly dry in summer: " One, upon which the com-
mand encamped in the afternoon, wa« found perfectly dry next
morning; shortly, however, it commenced to run again with undimin-
ished vigor." The mountains to the north of the prairie are well
timbered, but in the plain there is only birch and willow. Kamas is
found here in great abundance, which is so much used as food by the
Indians; it grows spontaneously in low, moist, light soil. This prairie
is a great resort for Indians, there being good grazing and plenty of
animals; such as foxes, rabbits, and grouse.

From our military post on Mill creek, in the valley of the Walla-
Walla, established by direction of General Wool, in 1856, via
McKay's, to the spring at the west base of the Blue mountains, it is
about fifty miles, and the road is good for wagons. This post is the
nearest military position we have occupied to the Indian country in
eastern Oregon. The distance between it and thn west end of the
Orand Bond is about 80 miles. A command of mounted men conld
perform the march in four days with its appropriate train.

Prom the same post to Port Bois£ it is about 224 miles. This could
be marched by a command of two or three companies in twenty days
with its appropriate wagon train. Good camping grounds with ex-
cellent grass and good water would be met at convenient distances
for the daily marches all the way any time between 1st June and
15th November.

Dlitaoce from—

To-

HU«t.

W««t citremltr Jeffries' Cutn^.....,..

Weit eitremitr Kudh Prafriti

East eitremlty Kamai Prairie

W«it eitremlty Jeffries' Cut-off.

Weat eitremit; Kam as Prairie

SO
6fi

Wert extiemity Euudb Pi^rie

West extremity Kamas Fratri

Oodins river, (Ufa Jeffries' route) ....

EMt eilremUy KacpM Prairie

«0

Co Ogle

62 TOFOOEAPHICAL UEHCHR OF THB

From Kamas Prairie to Salmon Falls, on SDake river, 4^ milea, the
route ie by a trail impracticable for wagons. Along the soath base
of the eouth ridge bounding the prairie ie a remarkable belt of hnge
baaaltic rocha, of more than one mile in width and of length anknown.
The rocks are of groteeqae ehapcB, standing at distances from 20 to
30 feet apart, and in height from 10 to 40 feet. Thej are worn smooth,
as if by the action of water. The trail winds through the belt From
this to Snake river it is a pavement of basalt cut up by deep ravines*
or a stretch of artemisia.

A few miles before reaching the Snake we come to the Malade
river, flowing between vortical walls of basalt, so fringe of timber
marking its presence.

There are two falls on the Snake called Salmon Falls; they are five
miles apart; the lower has a descent of 25 to 30, and the upper of 10
t« 12 feet. Here the Indians catch targe quantities of salmon and
dry them for winter ase.

From Kamas Prairie to Lemhi, on Mormon river, 125 miles, the
route is impracticable for wagons. The larger portion of the country
is mountainous, the trail often very rocky, and none but well shod
animals should attempt it. Good camping spots, water and grass are
plenty. From the eastern extremity of the prairie the route is op
tbe Halade river, at the headwaters of which it crosses a mountain
range thickly timbered with fir, at a considerable depression, which
is 2,500 feet above the valley, and then strikes the headwaters of
Godin's river. The valleys of both of these streams are narrow but

frow wider as we descend them. Godin's runs in a northeasterly
irection over a pebbly bed until deflected by-mOuntains at right
angles to its former course, and then runs towards the largest of tbe
"Three Buttes," near which it sinks.

A high divide pierced by two low gaps separates Godin's river irran
the Pash-a-ma-rab river. At th,e..north base of this divide there is
"a stream of ice-cold water rising vertically from the ground and
flowing in different directions and uniting below, forming an island a
mile in length and several hundred yards in width. The eye can
distinguish no dividing ridge between the streams, each of which was
4 feet wide and 6 inches deep. As they flow further they are in-
creased probably by fresh accessions rising from the ground."

Pash-a-mu-rah is a tributary of Salmon river, and waters tbe valley
called McKay's Hole, signifying a valley surrounded by monnt^ns.
This is 8 to 10 miles broad and 30 miles long, bearing excellent grass
at its northern extremity, and there it has a fishery.

Tbe next considerable valley is that of the most easterly of the
large tributaries of Salmon river. In this the Mormons, at a distance
of 320 miles from Great Salt l«ke City, have established their settle-
ment Lemhi, on HormoQ river, 20 miles above its junction with tbe
Salmon, and 136 miles northward of Fort Hall.

^. Mormon Biver valley, though several thousand feet above the lev 1
of the sea, is fertile, and the settlement promises to be of some itai-
portance. The grazing is excellent and winter mild. Limestone
and coal are said to exisi. Tbe mountains are timbered, and cotton-

n,g:,.ndtyC00glc

DGPABTMENT OF THE PACIFia 63

wood grows in the valley. A wagon road, nearly level, connecta it
with Salt Lake City, via Fort Hall. Lemhi ia s miseionary station
among the Indiana, and is fnruished with a atockaded enclosure.
The aettlera, to all appearance, are orderly and certainly very indna-
trions, and devoted to their peculiar principles of religion.

The aitnation they have aelected is eminently favorable. Name>
TODS Indiana winter in tbie valley, while many more paas through in
tranaita for the buffalo groooda east of the Kocky mountains.

This valley would he a good location for a military post, ehonld
future ezigenciea demand one in this part of Oregon. The Iformons
think a wagon route ia practicable from Lemhi to the Flathead Indian
country, where it ia also their intention to establish a misaion.

Nature has furnished this region more abundantly with game than
is her custom along the eaatem tributaries of the Columbia; such as
beara, including the grizzly, deer, antelope, elk, and mountain aheep;
the latter ia much in favor as food for the Indians. One band of the
Shoshoneea is called Ta-chu-re-kay, meaning aheep-eators. Tarioua
kinds of grouse are among the smaller game. It is not long since
hn&lo fed in the valleys of this region, but the improvident Indians
have either exterminated them or driven the herds to the rangea east
of the Bocky mountaina.

From the jtioutk of the Mormon vptothe head <f Salmon, river, 100 miles;
thence to the PeuHi-e-vnah-hUe, 58 mHea; tkmoe via Payette river, 87
miZra, to Fort Boisi.

The trail on this rooto is only practicable for pack trains. Good
camping places and good water and grass occur at convenient dis-
tances for daily marches.

At the junction of the Paah-a-mu-rah the Salmon river has a wide
valley bearing Inxuriant grasa. On aacending, however, the valley
is found more contracted and the trail more hilly. The river heads
in a lake, one mile or ao in circumference, on the top of a very high
ridge, upon which there was enow in Angnat.

The country on the Salmon is the best of any on the route followed
by the command, except the Grand Rond. "But it ia only a good
country by compariaon. In a r^ion where most of the earth's sur-
face is either rugged mountaiDS or desert plains a strip of alluvial
soil, be it ever so narrow, is apt to be over-appreciated.

FrcHn the head lake of the Salmon a dividing ridge is to he crossed
to reach the Uoo-rum-ba, which heads in several small lakes. It ia
but a short distance across the ridge. The mountains here are cov-
ered with dense forests of fir extending down the plain.

The Moo-mm-ba was followed down to where it emerges through
the mountains to the north. Thence the route was up one of its
tributariea; leaving which it croaaed aeveral others of its tributaries
and entered the valley of the Paah-e-wah-kite. The west branch of
this is about fifty-eight miles from the head lake of the Salmon. In
this reach the route is necessarily tedious and circuitous, in conae-
quence of numerous high rugged mountaiDS, obliging the.traTeiler to

X.ocwR.-

61 TOPOaHAPHICAL MEMOIR OF THB

follow the water- courses. In these Talleya the. nights were cold,
producing ico in August. i

The Fash-e-wah-kite is one of the prettiest of all these valleys.
It is a plain some fifteen miles long, in some places with ezcellent
soil, in others it is pebbly and sandy. It is watered by a bold stream
15 to 20 yards wide, of delightful cool water. Fines and firs are scat-
tered through it, giving an abundance of shade. The mountains on
all sidesare high and covered with dense forests. It was in this valley
that Lieutenant Day's subdiviBion of the command killed several of
the participanta of the Fort Bois^ massacre. This was an important
event, teaching the survivors that our troops could penetrate their
most remote recesses and inflict deserved punishment-
Prom the west branch of the Fash-e-wah-kite to Fayette river it is
twenty-eight miles; thence following down this stream to the fishery
it is twenty-four miles; thence the route continued still down the
valley fifteen miles to a point some twenty miles above its mouth;
from that point it is an artemisia plain for twenty miles directly
across to Fort BoisS.

Indians in eastern Oregron.-'— Lieutenant Mendell thinks it a matter
of congiatulation for onrselves that the districts of country just de-
scribed are not inhabited by a bold race of Indians disposed to war
on the whites. The high rugged mountains of their country would
afford a thousand refugee to them, while interposing great obstacles
to pursuers. Nature provides them with food, which they have only
to stretch forth their hands to receive, even to the very sources of the
streams. Free from hunger, with such a country extending very far
in every direction, with every foot of which they are familiar, it would
be exceedingly difficult to carry on hostilities with them from our re-
mote settlements with success. They resort to the buffalo country
in summer and return in the fall. They are much inferior in energy
and intelligence to those west of the Blue mountains. They are be-
lieved to have once been a powerful nation, occupying the waters of
the Missouri, but a long and bloody strife with the Sioux drove them
to the west of the Rocky mountains, and here they have deteriorated.
They still cherish their enmity to their old enemies, the Sioux, and
live in great fear of the Bla(^feet tribe. They steal many horses
from the CayuGes, who occupy the west base of the Blue mountains,
and from Nez Percys, and are in turn robbed by the Blackfeet. They
are of filthy habits, eating beetles and vermin with gusto, and are
very poor, often suffering hunger in winter from their improvidence.
On such occauions they hve upon their horses, and a case is known of
one who in a season of want killed bis squaw and five children, and
jerked them for his winter provision.

UIUTABY CONMEXIOH BETWEEN NORTHEASTEEN OBEOON jkND UTAH.

From the interesting journal kept by Major 0. Gross, of the Quarter-
master's Department, of the march of the rifle regiment from Fort
Leavenworth, via South Pass and Fort Hall, to Fort Dalles, on the
Columbia, ia 1849, I am enabled to present some practical infbnuatiwi

c;oo>!ic

DEPlBTUEin' OF THE PACIFIC. 65

io reference to a march of a command, if required from northern Oregon
to Great Salt Lake City.

From Fort Dalles to Bonth extremity of Grand Kond Prairie the
march would be 187 miles, which could be accompliBhed in 14 days;
from Grand Rond to Fort Boisg, 130 miles, in 10 days; from Fort Boie^
to Fort Hail, 268 miles, in 22 days; from Fort Hall to Great Salt Lake
City, 183 milea, in 15 days.

A regiment leaving Fort Dalles with its train contd reach Sbit Lake
City in 61 days. The proper time for starting would be from the 1st
to 15th Jane.

A. regiment could he despatched from New Orleans by steamer, via
Panama, and conveyed to San Francisco in 23 days; thence to Fort
Dalles in 7 days; thence, if the train were held in readiness there to
start immediately, the same regiment could start the following day,
and march to Salt Lake City in 61 days, after arriving at FortDalles,
making 91 days from New Orleana, by the way of the Atlantic, the
Pacific, and Golnmbia river, to Great Salt Lake City. Lieutenant
Colonel Steptoe's command was 92 days marching from Fort Leaven-
worth to Salt Lake City in 1854.

YII. — Military oonsideratioM in reference to the Wiukington Territory
joortion cf the department cf the Pac^.

Map No. 16 shows all that portion of the Territory lying west of
the Cascade Mountain range.

Leaving the month of the Columbia, and proceeding along the coast
northward, we pass Shoal Water bay and Gray's harbor, and arrive
at Cape Flattery without perceiving anything at all that would invite
one to become a settler on this part of the coast. From Cape Han-
cock, at the mouth of the Columbia, to Cape Flattery, by the steamer's
shortest run, it is 149 miles. From San Francisco the latter cape is
793 miles. Just around on the inside of the cape there is an Indian
village, in which the houses are built of stone. These Isdiana have
the character of being pretty honest and peaceable.

Passing up the Straits of Fuca we leave Vancoaver's Island on our
left; at the head of these straits, turning south, we come to Port
Townsend, where we have a military post, about 110 miles from Cape
Flattery. Opposite this post is Whidbey's island, one of the mosE
important of our own in ah these waters.

Leaving Port Townsend, and going stillfurther south, we pass through
Admiralty inlet and come to Fort Steilacoom, a military post on Puget'a
Sound, 215 miles by the steamer's run from Cape Flattery. From
• Port Steilacoom, 30 miles by the road, to the northeast, is the military
post at Muckle Chute prairie, on White river. From Fort Steilacoom,
by the road, it is 25 miles in a southeast direction to Olympia, the capi-
tal of the Territory, situated at the southernmost extremity of ttxB
Paget* s Soand waters.

H. Ex. Doc. 114 5 n,g:,.,dtyC00glc

66 TOPOaEAPdlCAL UEHOIB OF 'ADS

After running up the Straits of Faca for about Off miles, if we tnrn
north and pass through the Straits of Haro, we enter the Gnlf of
Georgia; thence turning eaet we come to Bellinf^ham Bay, where is
also A military post, which, hy thia route, is about 160' milea from
Cape Flattery.

Prom Port Towneend direct, by water, to the post at Belliogbam
Bay, through the Rosario straits, it is from 60 to 70 miles; and from
Fort Steilacoom, through these Btraite, to the Bellingham Bay post, it
is about 150 miles. These posts can easily communicate with each
other by water, as also with San Francisco; but the communication
with each other by land is very difficult, owing to dense woods, the
want of roads, and the very circuitous routes that have to be followed
ia conseqmence of the numerous little bays and watercourses.

The waters iu thia part of Washington may be assimilated to inland
seas in some respects, and in others to broad navigable rivers. They
open by the Straits of Puca and Gulf of Georgia into the North Pacific,
and have directly in their front the British island, (Vascouver,) of
which Victoria is the principal town and harbor. The numerous
chaunels, bays, straits, and inlets, form an extent of navigable waters
of several hundreds of miles either for sail or steam vessels and Indian
canoes of great size. There are many excellent harbors. In these
waters canoes are used capable of carrying from 20 to 80 warriors,
with their arms, and they are adapted either for catching the whale
or for war, and are of such speed that a sail vessel is of no use in the
pursuit. In case of difficulties with these Indians, a steamer of the
capacity to carry two companies of troops, and of a speed of 10 to 15
miles per hour, would be of more service than a whole regiment with-
out such means of rapid transit.

The shores of these waters are very generally covered with heavy
timber — fir, cedar, and pine of inferior quality for everything except
spars, yards, piles, and the frames of buildings. In all Washington
Territory it is yet to be ascertained whether there is a tree growing
fit for ship-building purposes, other than for those named, or fit for
the lumber required for floors and the finishing of buildings.

The clearing of the timber lands for farms is not to be thought of;
and those who expect to And extensive prairie tracts in this part of
the Territory, for agriculture on a large scale, will be egregionsly
disappointed. I do not mean to say there are no spot£, for there are
some that will produce well in this part of the hitherto much over-
rated terrestrial strip called Washington Territory, extending from
the 113th to the 125th degree of longitude, and from the 46th to the
49th degree of latitude, in all containing 130,000 square miles of
the earth's surface. Of this whole area not more than one-eighth
part is at all adapted to general agriculture. Similar causes to those
explained for Oregon prevent intercommunication between the parts
separated by mountain ranges ae we go eastward to the summit ridge
of the Rocky mountains, which is its eastern boundary.

In the. acquisition of this strip of territory, it is certainly not to be
denied, by any sensible man who has examined it carefully, that the
United States realized from Great Britain but very' little that is at all

DEPABTHENT OF THE PACIFIC. 67

valuable or useful to civilized man. For the Indiana, but for the
presence of the \yhiteB, it would ever have remained well adapted.

In Beltingham Bay coal mining is successfully carried on to some
extent; the coal id light in weight, burns freely, and the quality of
the article is altogether similar to that at Coos bay, in Oregon,
described in the preceding chapter. This hnsiness at Bellingham Bay,
the lumbering and fishing business in other parts of the Washington
coast, are about all that occupy the people, except so many as are
engaged in the cultivation of soil sufficient to produce what may be
needed for home consumption, and except those engaged as govern-
ment officials. The whole number of white male inhabitants in the
Territory does not exceed 1,700. The lands on the river bottoms,
west of the Cascade range, are so densely timbered that, nO' matter
how rich, they will not be brought under cultivation for many genera-
tions to come, if ever. Oereal grains, except Indian corn, grow well
in many places, and the wheat is excellent in quality.

From Fort Stoilacoom, 25 milea by the road, in a southeasterly
direction, the capital of the Territory, Olympia, is situated at the
aouthemmost extremity of the Puget's Sound waters.. There are two
ways of reaching this from San Francisco — one by sea, 1, 038 milea,
through the Straits of Fuca, Admiralty inlet, and Puget's Sound; the
other is by sea to the mouth of the Columbia; thence up this river
65 miles to Rainier; thenpe by the Cowlitz river 28 miles to its head
of navigation; thence belaud 60 miles; the total distance by this
last, which is the mail route from San Francisco to Olympia, is 775
miles. The part of this route from Rainier is the main channel of
communication between the Golnmbia river and Olympia. The dis-
tance from Fort Vancouver by this way to Fort Steilacoom is 18S
miles; and it is a very difficult one for troops to pass over at any
season, more especially at all times other than midsummer.

It is very evident that in a Territory a scattered population, not
exceedmg that of a respectable sized village, cannot be. expected to
defend themselves in their peaceful occupations against so large a
body of Indians as are known to exist in Washigton, without the
presence of United States troops in considerable numbers. The
question then arises as to the most effectual way of rendering adequate
defence?

For the purpose of the most perfect and economical defence for tha
portion west of the Cascade range, I am of the opinion that a perma-
nent post should be established on Puget's Sound, near old Fort Nis-
qually, of sufficient accommodations for two companies. There is an
excellent harbor here, at which a good dock conid be built; and from
the dock to the post a good road should be constructed, the length of
which would not exceed one mile. At Port Townsend there should
be stationed two companies, and a post of two companies maintained
at Bellingham Bay.

These troops, with the use of such a steamer as suggested, would
hold in check not only the warlike Indians, who come down in their
great war canoes from the British possessions, but they would preserve
peace between those witbio onr own limits and the whites.

II, Google ■

68 TOPOQBAPHICAL HEUOIS OF THE

"In the end it will prove a great eztraTagaoce in the govemmeat
to neglect the proper defence of a remote frontier like this; and one
chief reason is, that, if so neglected, a pretext will alwars be afforded
to a territorial executive to incur an extravagant and anneceesiuy
expenditnre" by calling oat the volunteerB.

After the Indian troubles had been closed by the United States
troops in this district, in the summer of 1856, the commanding gen-
eral of the department directed the posting of one company at Port
Townsend, and one at Bellingham Bay, theae being au the troopa
that could then be spared to place there.

Paaees (^ the Cascade Range ^ Mountains. — There are four of these,
viz: the Klikatat, the Cowlitz, the NachesB, and the Yakama, (or
Snoqualme,) having Indian trails by which communication is held
between the tribes occupying the districts on both aides of this range.
These passes are impassable in winter on account of snow, and not until
about the lOtb of Jane are they practicable for troops. The Nachess
and Yakama are the most important They connect the Puget's Sound
with the Yakama district. — (See map N'o. 17.) A military road was
improved so that wagons could pass from Fort Steilacoom through the
Vachess, via Selah fishery, to Fort Walla- Walla. But it. has been so
much neglected and damaged by floods that it is now impracticable
for wagons in many places.

For military purposes it is highly desirable that a road should be
kept in condition across the Cascade range for communicating between
the Yakama valley and Puget' s Bound. The best pass for this purpose
18 the Yakama, and not the Nachess. The road ehonld foUow the
valley of the Yakama river, down through the Kittetas, to the Selah
^shery. It could probably bo opened uirough the pass, and other
difficult places improved sufBciently to allow a wagon to pass, for the
enm of $125,000, with the lud of a body of troops for escort service.

A road opened as suggested, and the post at Muckle Chute prairie
advanced up to the base of the mountains near the Yakama Pass,
.and one established in the Kittetas valley, we should be in a position
.to bold the Indians in submission throughout all the Yakama coontry,
.as well as those all along the west base of the Cascade range.

Fort Simco, seen a little to the north of the Topiniah, the proposed
,poBt in the Kittetas valley, and Fort Dalles, would be in easy commu-
nication. From Fort Simco, 50 miles to the point where the Yakama
river ia cut by the 4;7th parallel of north latitude, in the Kittetas
valley, a good wagon road would coat $50,000, and from Fort Dalles,
60 miles to Fort Simco, such a road would coat $15,000.

The Selah fishery and the Kittetas diitrict may be r^^rded as tbe
heart of the Yakama Indian country, in which there are excellent
grazing, good fishing, and an abundance of water. This fishery is
the principal one on tbe river, and the Kittetas is a good valley, 20
to 25 miles in diameter, and well watered by several branches of iii6
Yakama; and I doubt if there will ever be any necessity for a military
post further north than the point referred to in this region of our
possessions; it would be within 1° in latitude of the Britieh posses-
sions. ^-- r

n,g:,.ndtyC00glC

DEFABTMENT OF THE PACIFIC.

The whole Takama cotrntr^ should be left in the qoiet possession
of the Yakama and Klikatat Indians. Colonel Wright, 9th infantry,
who, while in command of this district, carefaUy examined the ques-
tion, on the ground, among these very Indians, says: "They require
all this country: they cannot live at any one point the whole year.
The roots, the herries, an^ the fish, make np their principal subsist-
ence; these are all obtained at different places and in different seasons
of the year. Hence thej are frequently changing their abodes until
fall, when they descend from the mountain districts, and establish
themselves in the lower valleys for the winter."

In reference only to the tribes occupying the valleys of the Yakama
and Klikatat, Fort Simco is sufficiently advanced in a direction north
of Fort Dalles, (map "So. 18.) But, in reference to the great Indian
thoroughfare from Selah fishery, through the Yakama Pass, and the
communication that ought to be kept up with the Puget' a Sound district,
the post recommended to he established in the Kittetas will be impor-
tant. The only objection to the site indicated may he a deficiency
of building timber immediately on the spot; but excellent yellow pine
' is found in abundance on the Yakama just above, which can be fioated
down.

From the spot which would probably he selected for the post,
through the pass to a position proper for the post on the west side,
it would probably not exceed 70 miles. The distance by the valley
from the point of ^e river where it is cut by the 47th parallel to Lake
Kitchelas, near the summit of the Yakama Pass, is about 60 miles,
and the valley is well wooded with pine, fir, and cedar; below that
point, for 50 miles down, Cottonwood and willow; thence for 40 miles
to the mouth of the Yakama there is no wood.

Dbtaucg from—

To—

UllM.

Pny»Unpri«r

Wbltfl riTer, (Fort«r'i pimlrie)

Poit rt Miickle Chute pntlriB

QTMarinr,<lMtGnMilDS,bwemoaDl-

lut pnlrle on (timmlt

Fort SMUMom, tbrongh Nwbw Phi.

HudMO B>7 CO.-I poet, Wb1U-W>1U.

With regard to the posts now on the Columbia river, at Yancouver,
and the Cascades, (map No. 19,} it is to be remarked that, aa a

70 TOFOOBAPHICAI. HEMOIB OF THX

military point in reference to the command of the river, in reepeci
to Indian difficulties, the latter is of more importance than the former.
This is a great Indian fishery, and there should he no hindrance
offered to prevent these people from resorting here for this porpose,
at the same time order should be preserved. It is a point where aU
supplies by water have to be transhipped and carted over a portage
five miles in length; there should be two companies stationed here.
Fort Yancouver is well adapted for depot purposes, and one compsDj
stationed there for a guard will be amply sufficient.

Portland, on the Willamette, wilt continue to be, as it is now, the
commercial centre in this district, unless it shall prove, on a pnqier
survey of the Columbia, that sea steamers can at all times ascend to
the foot of the Cascades.

The general commanding the department directed a military topo-
graphical reconnaissance to be made of the valleys of the Walla* Walla
and Touchet. The report was such that the practiced eye of this
officer at once perceived that not only for the then existing war,
bnt likewise for fiitare operations and disposition of troops, one of
these valleys should be occupied as a military poet. Accordingly
one was established in the first named, five miles below Whitman's old
mill site, (map 20,) on Mill creek.

The importence of this post cannot be questioned by one familiar
with the topc^raphy and localities of the many tribes in advance of
this position, and of the disposition of the encroaching whites, ever
prone and ever ready to thrust themselves into the Indian conntry in
advance of the proper frontier line. The War Department may rest
assured this post will have to be maintained for years to come, and
the sooner a good wagon road be made between it and Fort Dalles,
the more money, in the end, will be saved to the quartermaster's
department.

I here qnote from an able report of the late Secretary of War
what I regard as especially applicable to the Walla-Walla valley:
"Instead of dispersing the troops to form small garrisons at numerous
posts, where they exhibit only weakness to the savage foe, it is
suggested that, within the fertile r^ions, a few points accesaible by
steamboats or by railways should be selected, at wnich large garrisms
shonld be maintained, and from which strong detachments should
annually be sent out into the Indian coastry during the season when
tiie grass will suffice to snpport cavalry horses and beasts of draught
and burden."

At present there is little need of a post further advanced fr<Hn Fort
Dalles into the Indian conntry than the one now on Milt creek, in
that direction, provided this be properly garrisoned.

General Wool reported, October 23, 1854, a post beyond the
Walla-Walla valley "would subject the government to a very heavy
expense to keep it properly supplied. I would prefer a company <h
dragoons to traverse Uie countiy in the neighborhood of Fort Boiil
dnring the summer, and at the approach of winter return to Fort
Dalles and remain till spring. To supply the company with effective

i,C.ooglc

VBPiXmXST OF THX PACIFIO.

(American) horsea, such as the service requires, would cost in this
conatry a very large sum of money."

The post in question is on the trails leading into the Peloose, Nez
Perce, Spokane, Snaka, and other Indian countries, and it should be
occupied with six companies at least This would allow of two
detachments (two companies in each) to be sent out every Beason from
here into the vast Indian country lying east of the meridian of this
post, on the various routes explained under the heads "Eastern
Oregon," chapter YI, and Eastern Waehington, chapter VII. A.

farrison to the number suggested once posted here, it would not be long
efore a river steamer would be plying between the Dea Chutes and
the mouth of Walla-Walla. In connexion, I offer one more sugges-
tion, which is, that tiie breed of Indian horses now in the Walla- Walla
country, being inured to grass alone, shall be fairly tried by the
mounted troops in those annual expeditions. With proper treatment
these horses may be foraged all winter without grain, and do good
service in summer upon their native grass.

DWoaoBftwn—

To-

UUm.

To make the road good from Fort Dalles, via McKay's, to Mill c^eek
post, for wagoDB, $15,000 would be required. A more direct route
could be opened between the two posts, but it would cost more and
would not subserve so many purposes as the one named.

It will be perceived that the foregoing suggestions for keeping
peace in all Washington. Territory and all along on the north border
of Oregon involve —

1. The maintaining of a two company post at Port Townsend, and
a Uke one at Betlingham Bay; the moving of the Steilacoom post
to the Nisqually, and here establishing a two company post and depot,
the moving of the Muckle Chute post to near the west extremity of
the Yakama (Snoqoalme) Pass, to a point commanding the pass, the
valley of Cedar river, and the trail from the pass down the SnoqiuJme
river. In this position of the post there should be two oompanies to
garrison it. The town of Seattle would be the nearest seaport, and
60 to 10 miles distant.

2. The keeping of a suitable government steamer in the Washington
waters capable of carrying two companies, and running (faster than
the northern war canoes) at least 10 miles per honr.

3. The maintaining'of Fort Vancouver as a depot with one company,
and a two company post at the Cascades; the establishment of a new
post in the Kittetas valley, with two companies; the maintaining of
PortSimco, with two companies ; also Fort Dalle^ with two companies;
and Hill creek post, with six comp^es.

n,g:,.-,.dtyC00glc

72* TOPOGRAPHICAL UEHOIB OF THE

4. AppropriatioDB of money: (125,000 to open & road throngb
Yakama Pass from Sooqualme falls, or from a point on Cedar river
to the Kittetae, on the Yakama river ; $50, 000 for one from Port Simco
to the Kittetas; $15,000 for improving the military road between Port
Dalles and Fort Simco; $25,000 for rendering the trail from the Cas-
cades, on the bank of the Columbia, pasBable for dragoons to Fort
Dalles; $15,000 for improving the military road between Fort Dalles
and the Mill creek post; in all, (330,000 for military roads, all in
Washington Territory, except a part of the last one named.

It will be seen I do not propose to increase, except by one, the
nnmber of posts now occupied; there are nine now, and the plan
proposes ten; one additional and a change in the localities of two,
ramisbing each with a proper nnmber of troops, 23 companies in all,
and opening proper roads to enable commanication to be kept up
between them.

With the 23 companies located as proposed, and such commnoica-
tions, peace may undoubtedly be maintained for a long time to come
throughout Washington Territory, the eastern and northern portions
of Oregon, for the whole extent of the Snake and Columbia rivers.

With a less nnmber of companies, I am willing to admit, Indian
hostilities might be suppressed after breaking out, as has been proved
by the result of Generfd Wool's plans for terminating so successfully
those of 1855-'56 in this region. Bat it is certainly much more
economical to have sufficient forpe to prevent a war between the
Indians and whites than to suffer it to be created, thereby affording
a pretext for volunteers to be called out by the territorial governors,
and afterwards be obliged to bring the regular army into requisition
to suppress it. The truth of this will be fully sustained when the
bills for the services of the Oregon and Washington volunteers are
rendered to Congress.

Eastern pmiion <^ Waaldi^xm., aT\d Us connexion with the northwost por-
Hon <^ Nelmiska, shown on laap No. 21.

I have already referred to the importance of having six companies
Btationed in the valley of the Walla- Walla, and assigned, among
other reasons, that of despatching two commands, consisting of tiro
companies each, every year into the Indian country.

In chapter TI I have described the route to be followed in going
Irom the Walla- Walla valley across the Blue mountains to Fort Boise,
on the Snake river. The routes which I shall now consider are
marked A, B, C, 09 the map. Before describing these in detail,
however, it will be well to consider somewhat the valley of the Walla-
Walla river.

Port Walla-Walla, situated at the junction of this river with the
Columbia, was an old Hudson Bay Indian trading post. It was
pillaged by the Indians in the war of the fall of 1855. It is now of
no account, except to mark the miserable sandy spot where once it
stood — as a place, among other purposes, used by explorers of the
upper Columbia for rendezvous.- From the mouth ap the Walla-

ity Google

DBPAarUENT OF THE PACIFIC. 73

Walla for 12 miles the banks are sandy and sterile. Ascending
higher, however, we come to Cottonwood and good land; and the
vailey, being cut np by many amall streams, and having a mild
climate, ia inferior to none in the Territory for agricaltural purposes.
The whole conntry from this valley to the Snake river affords excel-
lent grazing, and good timber grows in abandance at the headwater*
and along the streams coming down from the Bine monntains.

Following the trail from the month np the river for abont 20 miles
we come to Hill creek, the present position of our military post,
established by order of General Wool id 1856. The position is not
far from where the treaty was held with the Indians by the super-
intendents of Indian affairs of Oregon and Washington, June, 185S,
the practical fruits of which will be noticed more faUy in another
place.

BOUTS A.

From the mouth of the Walla- Walla to the mouth of the Snake
river it is abont 10 miles, following the bank of the Columbia, and
the road is over a sandy soil, giving little difficulty in the passage.
The Snake has tn be crossed by boats. From ite month the trail is
on the Great Plain of the Columbia river for about 10 miles, when it
strikes the Columbia river; from that point it bears a little east of
north through a sandy district to a lake about six miles long and one mile
wide, distant from the mouth of the Snake 62 miles. Following along
this lake, and crossing a small feeder, the trail continnes over the
said Great Plain through a small coulSe, from the northern extremity
of which to the Grand Goul^ it is 6 miles. The distance through
the Grand Conine is 20 miles. In it the soil is sandy, and there is a
pond of good water. The northern extremity of this coulSe is 10
miles wide; the southern is wider. Its walls are estimated at 800
feet in height, and consists of basaltic rock, seemingly cemented
together with a kind of lava. On emei^ing we are immediately on
the bank of the Columbia, at a distance of 140 miles from Old Fort
Walla- Walla. On this whole extent not a tree occnrs to relieve the
eye from the continued monotony of grass and sand. On the southern
part of the route, after leaving Snake river, the marches would be
long between watering places, and there would be an insufficiency of
grass for the animals of a train. Between the northern portion of
this reach and the Columbia the country is full of coulees. From the
northern extremity of the Grand GonUe the trail is on the east bank
of the Columbia, through rough ground on the northern border of
the Great Plain to the Spokane river, for a distance of 60 miles, on
which timber and water are found. The Great Plain of the Columbia
is but an extensive high table prairie. The month of the Spokane is
is 200 feet wide, with a rapid current and a rocky bed. The banks
are well timbered and the soil good. The crossing has to be made
in canoes. From the Spokane, by the river trail, to Fort Colville,
an old Hudson Bay Company Indian trading post, the distance Is. 50
miles, through a well wooded and well watered district; bat without
much labor it conld not be rendered passable for wagons. The leogth

I Cooglc

74 TOPOQEAPHICAL HEHOIB OF TEE

of the ronte A, from Fort Walla to Port Colville, is about 240 miles.
It would not be a good ronto for troops to march over, nor would it
be practicable for wagons beyond the Grand Coulee, except partially.
Lieut. R. Arnold, 3d artillery, passed over this ronte with a small
party in the last half of November, 1863. He does not report having
met with any snow south of Fort Colville.

Diataitces on route A.

■^0.-

To-

HUc*.

9onth eitremltjr OraiKl CoqI^

North eitremttj Orand Coul^

South eitremky Grand CoolAi

North extTcmitraraiulCoal^

This . leads from the Walla- Walla valley, by the Piloufie river and
over the Orea|^ Plain of the Columbia, to Fort Colville. From the
Mission site, proceeding a little east of north to the Touchet river, it
ia about 18 miles, over a high rolling prairie bearing good grass and
affording a tolerable passage ibr wagons. The Touchet is bnt a small
tributary to the Walla- Walla. The valley is good for grazing and
other farming purposes, and it is from one to two miles wide. There
is an abundance of excellent pine building timber as we go up the
stream towards the base of the Blue mountains.

From the Touchet to the month of the Pelouse— '22 miles — ^it it
a high rolling prairie of grass, bnt destitute of timber. The ascenta
and descents of the bills are easily made by winding along the slopes.
The crossing of the Snake at the month of the Pelonse is difficult; it
has to be made with boat«, and the animals swim; it is 150 yards
across, deep, rongb, and rapid. The Snake has no valley here, and
high hills on both sides come quite down to the water's edge. A
rope scow-ferry could easily be arranged here. The valley of the
Peloose ia well wooded, except for the first 10 miles above its month.
The immediate vaUey and adjacent country u-e good for grasing.
Should ctronmataDces require it, this valley will afford a good militaij
position.

From the month of the Peloose — 95 miles over the Great Plun to
the Spokane — ^tbere is no timber. The plateau is generally high and
rolling, of light soil, unfit for productive cultivation; grass is fonnd
on the least sandy parts. About 60 miles north of the Pelouse is a
basaltic formation 24 miles wide, ninning east and west, which ia the
highest part of the plateau, much broken, and furoiahed with numy

DEPABTMENT OF THE PACIFIC. 75

little freeb water lakes. Further north some willows and cottoQwood
fringe the etreama in small patches. Over the Great Plain on this
route wagons can be passed without much difficulty from the lat pf
June to the 15th of November. A. good stopping place can be had
at Lake Sil-kat-ku.

The district of country embracing the lower part of the Spokane
has plenty of timber, and excellent grazing and good water exist
within accessible distauces for animals sufficient for a large command.
The mouth of this river is a great centre of Indian trails from all
points of the compass, and there is an important fishery near by on
the Columbia. The lower portion of this river will afford a good
position for a military post when the proper time will arrive for its
nse. The stream is fordable where uiis ronte crosses it, except in
very high stages.

From the Spokane to Port Colville the scene changes materially
from that presented to the south. After passing through a scattering
wood for five miles we ascend the Che-ma-kane river to its head
waters in a low mountain range; crossing this divide the trail de-
scends the valley of the Slawn-te-faus river. This valley is thirty-
five miles long by one or two in width; the soil is generally quite
good, and there are some settlements in it; the banks are subject to
overflow; the stream is fordable in summer. The dividing ndge is
timbered, and no difficulty is in the way of making a good wagon
road along these two streams and across this divide. At present,
from the Spokane 60 miles to Fort Colville, pack trains only can pass,
and even these should not attempt to pass before the 1st of June.

Fort Colville would be a first rate point to occupy with troops in
reference to British Indians to the north. Owing to the existence
of gold, which attracts so many to this place, and who seem to be
increasing every season in numbers, the War Department should not
be surprised soou to find it necessary to send a command into this
region, more for the purpose of preventing outrages upon the Indians
than from them. The mountain trails from various parte centering
at the fort are practicable for pack animal trains in summer.

DiOanoea on B. and other routea.

Krom-

To—

ISOm.

Toodkoirivn

Ri.mmltnrm».,ntth.T

>oolc

76 TOPOQBAPmCAL MEUOIB OF THH

Navigabiliiy (^ the Cdumtna, bettoeen Forts Walla- WaRa and Colv3k.

As I have referred to the fact of there being good sites, id case of
a necessity for their use, for military posts on the Felonse and the
Spokane, the question naturally arises as to the advantage that can
be taken of the Columbia for the purposes of transportation. This
puts me to the task of giving some reliable information on the navi-
gability of the upper Columbia.

Between Forta Walla-Walla and Oolville three serious obstacleB occur,
viz: Priest's rapids, appro zimatively located 60 miles above Port Walla-
Walla; Buckland's rapids, 66 miles higher up; and Kettle falls, 296
miles still higher np, which are just below Port Colville. Around
all three portages would have to be made. These natural barriers,
as in other rivers, serve to divide the stream into pools or reaches,
which are navigable for light draught boats and canoes. Bat in
regard to the sand bars, shoals, deposits, snags, sawyers, sunken
rocks, and swift places, wbicb might be hindrances, nothing is known
from which we can form an estimate of any reliability. George
Suckley, eF>q. , late assistant sui^oon United States army, descended the
Columbia from Port Colville in a canoe, (four persons,) leaving No-
vember 17 and arriving at Fort Walla-Walla December 1, 1853. He
is of the opinion, derived from his own observations during this de-
scent, that in these reaches or pools a steamer drawing from 20 to 30
inches conld navigate in low stages of the river. The average speed
of hia canoe was 3f miles per hour. This does not indicate a very
swift current. He does not report having encountered snow or ice.

Between Fort Walla- Walla and the mouth of the Spokane only two
of the named obstructions occur. Ross and Thompson's rapids
(located from Wilkes' map) are regarded by Dr. Suckley as afforaing
no material obstacle to steam navijcation. There is no timber what-
ever growing on the banks of the Golambia between a point 34 miles
below the mouth of the Spokane and Fort Dalles, which is 115 miles
below Port Walla- Walla. Above Port Colville Lieutenant Arnold,
3d artillery, made an examination to a point 3| miles above the mouth
of Clark's Fork in the first part of November, 1863. He reports the
current swift, and numerous small rapids; his canoes were four days
ascending 25 miles. Clark's Pork enters at a point very near the
49th parallel, which is the boundary between us and the British, if
not exactly on it. This fork debouches through a mountain gorge,
which is a short distance above its month, where there is a fall of 3
feet, and directly at the mouth there is a fall of IS feet. .These pre-
clude the idea of ascending the lower part of this stream by boats. I
submit the following table of diatances, prepared from the best data
obtainable until actual surveys shall be made of the upper Colambia,
con6ning my table to the portion within our own possessions — that is,
from its mouth to the 49th parallel of north latitude:

n,g:,.ndtyC00glc

DSPABTUENT OF THE PACIFIC.
NtmigniHe reachea <f ike CiAumbict.

Fran—

To—

W\m.

The aggregate of all the portages would be about 25 miloB in
length. Hence the total approximate length of this river within
our own poBaessiona is 818 milea. The first two named reaches are
now successfully navigated with steamers. A portion of the reach —
from Des Chatee np to Walla- Walla, 100 miles — is bow being used for
tranfiporting Bupplies in oar-boats for the post on Mill creek. The
reaults of this experiment have not yet been given BuflGciently in de-
tail to determine the saving of this mode of overland transportation
between Fort Dalles and that post.

I by no means regard the problem of the navigability of' the Co-
lombia above Fort Dalles, for military purposes, as having yet been
solved. What I have here given in a condensed form embodies all
that we know pertinent to this interesting question; nor can the
problem be solved except by results from proper surveys Qf the pools,
portages, rapids, Ac, under a competent officer, with ample funds
for the purpose. The sam of $25,000, with orders for the troops to
afford protection, would be required for the accomplishment of the
object.

BOimo.

From the WaHa-WoiUa, via Cceur cP Aleve, tkeiux to Fort Beniott, on the

J^issoun river, in Neln'oaka.

Prom the treaty ground to Snake river, 61 miles, it is a rolling
prairie, witb Cottonwood on the banks of the streams; there are plen-
tiful supplies of water and grass for any number, of animals; the
streams are easily crossed, and it is a. good district for dragoons or
infantry to operate in. The Snake has to be crossed by boats. It is
here that we come to the Nez Percys Indian country, and this is
known as "Red Wolf Crossing." The banks of the river are low.
The creeks in the vicinity are well wooded,

From the Snake to the Felouse river, 39 miles, it is a prairie easy
of passage; it grows the camas, indicating a moist, rich soil. The
valley of the Pelouse is well filled with good pine timber, and the
stream is fordable in summer.

From the Peloose, 50 miles to the Ccenr d' Alene river, the passage
generally is easy, the country well wooded, and water and grass are
met in abundance. There is, however, a range of hills to cross where

iX.ooqIc

78 TOPOGBiPmCAL HEUOIB OF THE

it would be difficult for a wagon to pass withoat labor, just south of
Nedlehualk creek; and a mountain to croea before reaching St. Joseph
river, requiring considerable work to make the road good for loaded
wagons. After this, there ia a lake that would have to be bridged.
There is plenty of timber on the spot to bridge wherever reqnired
in this reach. The Gceur d'AJene ia easily bridged. Any nnmber
of animals may be grazed all the way from the starting point on this
route for 123 miles, to near the monntain just mentioned.

From the crossing of the Gcear d'AJene river, via the Miaeion, to
the foot of the Cceur d'AIene mountain pass, it is 60 miles, following
the north trail seen on the map as ws cross the mountun. In this
long reach there is much timber, through which, however, a good
wagon road could be made with little difficulty, except for six or seven
miles, where the trail is seen to bend away from the river before
reaching the entrance of the pans. This pass is only 4} miles throagh
from stream to etrearo. In it there is a steep hill to go over; it is
heavily timbered, requiring much labor in cutting fallen timber and
iu side-hill digging, to make a tolerable road through it, and probably
some rock blasting would be required,

From the east extremity of said pass to Hell Gate it ia 106 miles,
in which there are two difficult places to make a road through : one,
marked o, between where the trail leaves the St. Regia Borgia and
the Bitter Root river, 13 miles in extent; the other, marked 6, 20
miles long, in which blasting would be necessary in several places.
Possibly a better route for a road could be found through the tim-
bered bottom on the south side of the atream.

From Hell Gate to the west foot of Cadott's Pass, in the Bocky
mountains, it is 89 miles, and there would be no serious difBcnlty in
making a wagon road. In the valleys of the Hell Gate and St. Mary's
rivers any number of animals could be grazed all summer. There is
a great deal of prairie as well as timber land in these, also in that of
the Blackfoot Fork. Through Cadott's Pass, for 26 miles, I estimate
that two companies of troops could open a good wagon road in 10
days; the ridge is very steep and much work would be required.

We have now come to the boundary between Washington and Ne-
braska, and from the west extremity of the pass it is 133 mOes to
Fort Benton; between the foot of the pass on the east side to the
fort, there is ve.ry little in the way of the passage of a wagon train.

I have mentioned the difficulties in the way of moving a wagon
train over the whole route: In the present condition of the t*ail
starting by the 15th June, with one or two companies of dragoons,
and plenty of pack animals, the whole march from the treaty ground
in the valley of the Walla-Walla (543 miles) to Fort Benton could be
performed in 32 days, and from the treaty ground (250 miles) to the
Bitter Root river in 22 days. Grass would be found sufficient for the
subsistence of mulea and Indian horses. But if American horses be
used, they should be accustomed for two seasons to live on the grass
before starting. The only streams to he ferried or swam would be
the Snake, Pown lake, Cceur d'AIene river. Bitter Root, and the Hell
Gate — all the others would be found fordable. Powd lake coold be

ity Google

DEPABTUEHT OF THE FACHFIC. 79

avoided by divei^ing, so as to cross the Coeur d'Alene river belo\r
CcBur d'Alene lake, bnt it wonid iocreaee the distance 36 miles.

Returning the same year from Port Benton to the Walla-Walla
valley with the same command, the circamstances would be different.
On this point we have the data of Governor Stevens' return trip in
the fall of 1855. LeaviDg Fort Beuton 6th November, hia travelling
time continued to 20th December, but his party were under march
only 36 days. It was a very cold seaBon, buows bad commenced to
fall at Fort Benton on the day of starting, and it was found in Cadott's
Pass, on the Cteur d'Alene mountains, at the Clear Water river, and
in the Walla- Walla valley, where the party arrived 20th December.
The Columbia had frozen over that same season, and there were deep
snows on the trails in the Yakama country in November. The ani*
mals of the party were worn down and much distressed for the want
of sufficient grass, mauy were exchanged for others on the route in
trade with the Indians.

I regard the route C the best, all circumstances considered, for
opening a wagon road upon, between our military post in the valley
of the Walla- Walla and Fort Benton. It combines more advantages
than any other route; the total distance is 643 miles. After arriving
at the Pelouse, for the whole of the remaining distance this route is
common with that designated by the late Secretary of War, Jefferson
Davis, for the 4th regiment of infantry to open a wagon road npon
during an overland march from Walla- Walla to Fort Benton. It is
quite certain the road, if opened, would seldom, if ever, be used by
emigrBnts to the Pacific; its principal ose would be for military pur-
poses, and in this point of view it would bo of some importance in
affording communication between the departments of the west and
Pacific, if the road were well opened and afterwards kept in repair.
It would also serve the desirable end of connecting, as it were, the
▼alleys of the Walla- Walla, Coeur d'Alene, and St. Mary's, each of
which, being well adapted to the growing of stock and agricultural pro-
ducts, and possessing good climate and an abundance of good water,
may, Id time, be coveted for settlement by the whites. These valleys,
however, afford no more than is needed by the Indians, who occupy
them. To construct the road by the labor of a regiment of troops,
as contemplated in the orders of the late honorable Secretary, would
require two to three years in the field, and it would cost vastly more
thu) to do it by contract, under a special appropriation. The proper
use of troops, in connexion with such an undertaking, would be to

Eerform escort duty, and to protect the laboring parties against the
idians.

With such aid from the troops, and an appropriation of $350,000,
the road could probably be opened all the way, and the necessary
bridges constructed, and the whole line put in such condition that a
team could haul a reasonable load over it at the usual rate of teaming
on a pretty fair country road. But, after being put in this condition,
annual repairs must be made upon it, or else in two years it would be
found impassable in many places.

n,g:,.-ndtyC00glc

TOPOORAPmCiXi UEUOIB OF THE
Dieianaes on route C.

Prom-

To—

MU.

MllltwT po«t. Woll»-W«ll« nll«7

Umurj pwt. Mill cnwk, W>11a-W>11«.

Yin. Indian treaties and their ^ects in Washington Territory.

ABCending the Colnmbia for about 75 miles above Fort Dalles (map
20) we reach the mouth of the ITmiitilla, which, comii^ from the
east, drains a valley occopied by the Umatilla tribe.

Higher np, at a distance of about 120 milea above the fort, is the
mouth of the Walla- Walla river, which drains a district east of the
Columbia and south of the Snake river, (Lewis's Fork of the Colom-
bia.) ThiB district is the home of the Walla- Walla tribe. It also
contains that of the Caynses, who, however, occupy the portion
towards the Blue moantains, while the former occupy that nearer the
Columbia and the Snake.

Ascending the Columbia still higher, for about twenty miles above
the mouth of the Walla- Walla, we come to the mouth of the Yakama
river, which, with its tributaries, drains a large district to the north
and west of the Columbia, belonging to the Yakama tribe, (maps IT,
20.)

The Snake river enters the Columbia hetween the months of the
Walla- Walla and the Yakama about ten miles below the latter. The
localities are readily comprehended by observing, at a few miles below
the entrance of the Walla- Walla, the Columbia makes a right angle
in its coarse; down to this elbow it cornea from the north, and below
its coarse is westerly to the Pacific.

Ascending the Snake river 130 miles above its month, we come to
the Koo9-koo8-ky river, (map 21.) To the south of this and to the
east of the Snake is the Noz Perc€ Indian coantry.

On the 29th May, 1655, the superintendeots of Indian affairs (Ste-
vens and Palmer) for Washington and Oregon, as commissioDera on

DBPABTUENT OF TOE PACIFIC. 81

the part of the United States, met the assembled tribes above oamed,
and others of lesser note, for a council, at the treaty (ground already
mentioned, on Mill creek, in the valley of the Walla-Walla. About
eight tribes, with their chiefs and headmen, were present. The
whole number was about 5,000 ; at the sittings of the conncil, how>
ever, there were present only about 1,000.

The taHt enwrnUe of each tribe, on this occasion, was magnificeoce
in the extreme; while that of the whites, on the contrary, was meagre
and insignificant. It was humiliating to witness the contrast, so un-
favorable to the BuccesB so earnestly hoped for. The Indians, as they
advanced in bodies of from three to twelve hundred warriors from
their distant homes, were all mounted upon fine horses, having their
equipments, though of Indian taste, most richly and gorgeously orna-
mented. The riders strode their steeds with grace and skill. Not
BO with the whites ; the retinae of the commissioners was shabby,
diminutive, and mean in appointments generally, and deficient in all
those points of show, in particular, that are eo well calculated to
strike the fancy or command the respect of an Indian. The pitiful
escort of the commissioners of only thirty to forty United States in-
fantry soldiers, mounted on lame, gaunt horses and mules, literally
fed on nothing, furnished by the quartermaster at the Dalles the
previous winter, and having no show in equipments, nor riders pos-
sessing skill in horsemanship — this escort, we say, contrasted most
unfortunately with the splendid array presented by 1,200 Nez Perc€
horsemen. In short, there was not a tribe that did not outnumber,
outshine, and outdo the whites in all those points so well calculated,
end which should never be disregarded, te produce a favorable effect
on the savage mind when assembled in council. To argue the oppo-
site of this would be tantamount to confessing ignorance of the Indian
character.

By allowing themselves to go into conncil under anob circumstancea
the commissioners, at the outset, jeopardized the very object of th&
nogottation. Even the Cayuees, the smallest in numbers, manifested
utter contempt for the military escort, and their young braves even
dared to turn the cold shoulder to the yoong officer commanding^
the paltiy troop of infantry. On such an occasion, when so much waa
pending, there should have been four full companies of dragoons at
least, well mounted and fully uniformed and equipped. The prudence
of the officer at the critical moment is to be commended; his cool
personal daring saved him; had he attempted t« rely on his handful
of soldiers to avenge the insult, probably every white man of the
embassy would have been made to bite the dust. Your escort at a
gruid council of assembled tribes should be able to outdo the Indians
if yoD expect them to be impressed with a sense of your superiority;
otherwise the moral effect is all against you. If the United States
troops at the Dalles and Vancouver bad not so early as May "emerged
from the lethargy ol winter quarters," or were too few or deficient
in kind to afford a suitable escort, surely, in virtue of his gubernap
torial power, one of the commisnioners could have commanded the
attendance of four companies of Washington mounted volunteerB; or
H.E1.D0C.IU 6 .C.OOglc

82 TOPOOBAPHICiX MEMOm OP THE

perchance the paacitj- of nnmbers in that Territory not famishing that
force, then his brother governor, of the adjacentTerritory, wonldnn-
qnestion ably have eccommodated him withabattalion of Oregon Tolan-
teers. Be this as it may, it ia difficult to reBJst the conclusion that, in
military preparations, there was an oversight little to have been
expected in the chief of the erabaBsy, considering his military antece-
dents. We are willing, however, to believe that he was not alone to
blame, and that an obstacle was interposed by the Secretary of War
declining to authorize a sufficient military escort from the United
States troops, on the ground of a deficiency of nombers then in the
department. There may have been another reafion for denying a
flnitable escort, which may be attributed to that nnfortanate jealonsly.
or something worse, existing between the Indian Bureau and War
Department, the fruits of which are most pernicious. To the effects of
this want of nnity I shall more particularly refer in another place.

The object principally designed in asaembling these tribes in a
grand council was, to engage them to abandon the lands upon which
they had been born, and grazed their herds of cattle and horses, and
lived and hunted; to quit forever the streams on which their canoes
had been paddled by their squaws and children, and in which they
had fished for the salmon from a period long antecedent to the descent
of Lewis and Clark; and to exchange all their possesBory rights to the
soil of extensive tracts over which they had roamed for many a gener-
ation in undisputed dominion for other more circomscribed lends
called "Indian reservation," which were to be designated and agreed
upon in council.

It cani|f)t be denied that the object of the whites in holding this
treaty was one of grave import, involving the future destiny of no
less than Gre tribes of intelligent, warlike, well armed, and well ap-
pointed savages, all of which tribes, except one, (the Cayuaes,) had
been on friendly terms with the whites up to the meeting of this
council; and one of them, the Walla- Walla, headed by their distin-
guished chief, the late Pee-pee-roox-mox, had done good service in
battle in aid of the conquest of California — a service not readily for-
gotten by those engaged in that enterprise.

Neither is it to be denied that the Indians may have had some
general ideas of the objects of assembling them, though previonsly to
the opening of the council it is not to bo doubted their ideas of the
principal object in view were exceedingly vague and indefinite. The
tribes were undoubtedly stimulated with the prospect that the com-
missioners would come loaded with numerous fine Indian goods and
much money to distribute among them. It was more horn a desire
to become the recipients of these as gifts than from any other influ-
ence that they allowed themselves to be assembled. Very far was it from
the intention of their chiefs to relinquish or exchange one square rod
of their lands upon any consideration whatever.

Proceedings ^ the council. — The sessions commenced May 29 and
terminated Jnne 11, occasionally adjourning over one day to allow
time to digest what had been said previously.

Unmistakable repugnance to the treaty was evinced tbronghont,

IKBPABTllBin OF THE TiXJOK. 88

not only by the chiefs, bnt by the indiTiduals composing the tribes,
almost to a man. Lawyer, the head chief of the Nez Pero^e, was the
first to apparently give in to the views of the commissionerB, bat not
until the tenth day of the sesnions; and then he had the boldness to
conple his sanction with expressing his want of confidence in the ful-
filment of the brilliant promises held ap to bis people by the commis-
sioners, twitting them with a breach on the part of the whites in
Don-complying with a former treaty.

The Caytise chiefs were strongly opposed to the terms pressed,
alleging they had no right to sell the ground Qod had given for the
support of the Indians, except tor good reasons, and that they conld
not clearly see the things promised on the part of the whites as com-
pensation.

Pee-pee-mo3t-mox and Five Crows, chiefs of the Walla-Wallas, op-
posed the treaty. The former nrged strongly upon the commissioners
the bad effect of bringing a treaty like this to a hasty conclusion; be
plead for more time for his people to consider it, and ofi^ered to meet
the commissioners in another council, if their Great Father (the Pres-
ident) should desire it after knowing the sentiments of his red sabjects
against removing from their lands; and be would give the oommis-
eioners one day to consider his proposition.

Kameakin and Schloom, chiefi) of the Yakamas, were so indignant
at the object proposed that they would not speak in council when in-
vited, except to say "we have nothing to -say."

Ow-hi, for the Umatillas, acknowledged his obl^ation to the G-reat
Spirit, and to no one else, for the right of the Indians to the soil they
occupied, and refused to steal it away from his people by selling it,
as the commissioners proposed, to the whites.

Up to the tenth session all the chiefs, except Lawyer, strongly and
openly opposed the treaty; and one knowing this crafty old chief
could easily perceive he was playing a game dip](»Datique, and what-
ever his hand might do in the making of his mark on a piac« of paper,
bis heart was opposed to its contents. So strong was the c^posiUon
of the chiefs in council, of those outside, and of the tribes collectively
and individually, that on the eleventh session the commisHioaers re-
ceded in araae measure from their first demands and essentially modi-
fied the treaty. To this, modification thsy guned, apftarently, the
reluctant assent of all the chiefs then present m council, except those
of the Takama tribe; and, with this exception, all seemed geing on
well until, just before adjournment on this same day, Looking- Gloss,
the great war chief of the Nez Pere^ (who op to this time had not
been present,) made his appearance on the grouad — first sending a
runner to herald his approach — escorted by a well mounted war band,
and, before dismounting, denounced to the superintendent for Wash-
ington the selling of the Nez Pcrc£ country to the whites. It is to be
observed this chief, though second in rank to Lawyer, has much in-
fluence with the people of this tribe.

The next day the senior commissioner opened the proceedings in a
speech, in which he labored most assiduously to convinco Looking-
Glass, who was now seated in council, of the edvaQtages to his people

84 TOPOORAPniCAIi UEUOTB OF TUB

&ud to himself held out in the treaty, in which it was demanded that
there were "to be three reeervations, one opon which the CayuscB,
the Walla- Wallae, and the TJmatillas were to go; one apon which the
Nez Perc€e were to be placed, and one upon which the Yakamaa were
to he confined; and that they were to be removed from their preBent
poseeesions to these reaervationa in the coarse of two or three yean."

To this, Looking-Glaae immediately rose, and, in a well set speech,
replied against the policy of the treaty, and with such an effect that
all the chiefs. Lawyer inclusive, refused to anbinit to it. Both com-
missioners rejoined at length, UT^ng bim to change his decision; coo-
vinc^d that, nnlese Looking-Glass were gained over, all would be lost;
but their arguments in council were in vain, and it was in this state
of the proceedings when the council was adjourned over Sunday (that
being a religiona day with tfae Nez Percys) to meet again on Monday.

On Monday, June 11, the senior commissioner opened the council
with a brief address, at the close of which, on invitation from his ex-
cellency, all the chiefs came forward and signed the treaty, apparently
without opposition. After which, the presents were distributed tt>
the chiefs, and the council was dissolved; the superintendent far
"Washington leaving, with an e»cort only of Nez Percys, for Fort Benton,
£43 miles distant, to hold another treaty; the superintendent for Ore-
gon leaving for Port Orford, to hold the treaty spoken of in chapter VI,
on Rogue river ; the mounted troop of forty infantry returning to
Fort Dalles, their further services as escort being ended, and the
tribes were dismiased to their several homes.

The (iiieations naturally arise, how and by what means, during that
adjournment over Sunday, were the chiefs operated upon to indace
them to sign a treaty to which the commissioners knew all, except
Lawyer, were so violently opposed ? What potential consideration
was brought to bear with such talismaaic effect as to canse bo wonde^
ful a change in the dispositions of the chiefs? What was it that had
more iuflaence on the savage mind, daring that adjournment, than all
the speeches the commissioners had made daring the eleven previous
days? Let the commissioners answer. We go od to adduce some of
the effects of their diplomacy.

There is little doubt that Lawyer and Looking-Ojasa had a previom
understanding that the former was to cajole the commissioners to
believe him favorably disposed to their views; and. in the nick of
time, Looking-Glass was to appear, as he did, suddenly on the ground,
and oppose the negotiation ; this for the double purpose of making tho
whites believe in tlie friendliness of the Nez Percys, and at ^e same
time to throw obstacles in the way to prevent a clutch upon their
lands from being realized. In these respects, events have shown that
the crafty Lawyer was the ablest diplomatist at the coancil; for the
friendship of his tribe has remained, and no hold upon their lands bu
jet inu^ to the whites.

No disinterested witness to the proceedings believed that a single
chief signed that treaty with the slightest possible intention of
abiding it. They all regarded it as & paper to which tbey affixed
their marks without their hearts being with their hands : and the

X.ocwfc

mPABTUBNT CHf THE PACIFIC. 85

oommisBioners, in their cool and rational momente, ought to have
known there was do intention on the part of the tribes to folfil itB
etipolations ; and they kIbo ought to have known that all the tribes
{except, perhaps, the Nez Perc£) left the cooncil ground with feelings
much less friendly than they entertained before being Bummoned to
this council. Were these commissioners bo heated by the anxious-
desire of fame in the diplomatique field as to have been blinded to
the fact that it was a question among the tribes whether they would
not then rise in arms upon the commissioners' party and seize all the
goods they had brought, and that the scheme was not execated wag
owing to the policy of old Lawyer?

The etfocts of the Walla-Walla treaty are summed up as follows :

1. The ineagTe escort and shabby appearance of the commission
created in the minds of the warriors an idea of military weakness on
the part of the whites; and this was helped to be confirmed in their
tninds by the fact that a band of Gaynees, eight years previous, had
gained a decided victory in an open field fight over a battalion of
mounted Oregonians, in equal numbers to the Indiana, but quadruple
the infantry escort at the council.

2. The refusal to allow time, as urged by Pee-pee-mox-mox, for
individuals of the tribes to consider the proposition of moving from
their father lands to new homes, convinced the Indians that they were
to go or not to go, to be or not to be, at the pleasure of the whites,
aad that the wishes, conveniences, or welfare of the Indians were hut
as dust in the balance.

3. The small number, small size, and allotment of the reservations,
viz : one for the Nez Percys, one for the Yakamas, and <mly one upon
which all the other tribes and fractions were to be condensed, created
« perception of the want of fairness and liberality on*the part of the
commissioners. It is not to be supposed six tribes of Indians could
have been contented within the limits of one reservation, without
Just apprehension of serious collision among themselves, which even
they would have good reason to dread.

4. The manner in which the head chiefs were ultimately bronght
over to sign the treaty was calculated to caase discontent in the
minds of all less favored in the tribes — necessarily begetting dissatis-
faction, engendering opposition, and determination to disregard what
the favored chiefs had signed.

5. The hot haste and grasping disposition evinced by the senior
commissioner in his speeches in council, and, as shown by the terms
■of the treaty, requiring in so short a time the relinquishment of so
mnch country of their birthright, and the threatening argument that,
if they did not leave their lands, the whites would come and take
them, must necessarily have produced bitter feelings, akin to despair,
-or a resolution to defend those rights to the last.

6. The marked preference shown in the selection of the body of
tho Nes Percys for an escort to Fort Benton was calculated to produce
envy in the minds of the other leas favored tribes; and yet, if Indians
were to be employed for military service, it will be conceded by all

uy Google

86 TOPOCffiAPHICAL HEHOIB OF IBX

acqnainted wHh the Kez Percys that & better band could Dot have,
been chosfflifor a bddy^ gnard on thiB occasion.

7. The recoUectioD, atili operating in the minds of some of the
tribes at this council, of a brotich of faith on the part of the whites,
in reference to a treaty negotiated on a former occastoo, waa sofficient
to teach that if a treaty was broken by the whites, with equal fair-
ness one could be disregarded by thelniiaBs; and hence their opinion
that the mere act of signing a treaty was not necessarily to be regarded
as binding tlieniaelTes to execute it; and when afterwards informed
that a failure to comply with its conditions would bring the armed
vengeance of the whites upon them, it is not surprising that they re-
garded this an additional bittemeBS poured into their cup, already full
to overflowing.

We sow perceive bow it was that the hearts and minda of these
tribes were wrought up to » pitch of desperate determination to resist,
being, as they thought, driven or cheated into tbe scheme of despolia-
tion of their lands. And here we perceive the chief if not tbe primary
cause of all these tribes, except tbe Nea Ferc&, jraning in a war
commenced in the Takama country only three months after the
dissolution of this council.

Quitting tbe council gronnd, aa stated, for Fort Benton, the euper-
intendent for Washington left in his rear a vast extent of Indiao
country, in which tbe proceedings of the council hod stirred up little
else than strong dissatisfaction in the Indian heart; advancing so far
into an Indian country, leaving the country behind upon the point of
blaciag into open hostilities, and pursuing his way without an adequate
escort of United States troops seems surprisiog; it certainly was ao
act which, though a bold one, cannot be too strongly condemned.
Whet effect cenid it have but that of an exhibition of military weak-,
ness on the part <:^ the whites ?

Gold- had been discovered by some "half-breeds" in the neighbor*
bood of Fort Colville, high up on tbe Columbia, and the announcement
of it was made about the time of holding this council. As is asnal
on snch events, hundreds of whites went flocking to the auriferous
district The rush c<Hnmenced soon after the close of the ooanoil.
The routes thither led directly through the Walla- Walla and Yi^iama
countries, and as the whites passed, some of them committed excess^,
and outrages of the grossest kinds upon the hitherto unoffending
Indians of the very tribes the proceedings of the council had so much
and so recently disturbed. The bare recital of some of the crimes
committed by these Anglo-Saxon devils, in human shape, is sufficient
to cause the blood of every virtuous man, whether of red or white skin,
to boil with deep indignation. They were not satisfied with stealing
the horses and cattle of the Indians, bat they claimed ^e privilege
of taking and ravishing Indian women and maidens ad l^riiwm.
What wonder, then, that the Indians who had been so grossly outraged
should have retaliated, as they did, by killing s<Hne half dosen of
these miscreants?

Sub-Indian Agent Bolon, yetewelling with the importance be bad
acquired by tbe part be bad played at the recent council, threatened

DBPABTHENT OF THE PACIFIC. 87

the Indians who had retaliated, as described, with the vengeance of
the Uoited States government, and actually started on liis way, and
told the Indians he was going to Fort Oalleu to fetch the troops against
them. Whether this was a mere threat, meant to frighten the Indians,
is not known. Be this as it may, they believed him in earnest. Three
of their number followed, and overtaking Iiim, demanded to know if
he intended to send the United States troops against them ? On
answering in the affirmative, as the Indians say, they killed him, and
afterwards, as reported, some miners on their way to Colville.

However much we miiy regret tlie death of Mr. Bolon by the savage
hand, it cannot be denied his own gross imprudence, in threatening
the Indians with a hostile visit of the United States troops, waa more
the cause of bis death than any prejudice or ill will against him. It
was an act committed, probably, to save themselves from chastise-
ment at the hands of the troops. These views on the subject under
consideration were formed in the month of November, 18SS, two.
months after the occurroQce, while engaged in a reconnaissance in
that portion of the country. They are the results of my own invoa-
tigation at that time into the first causes of the hostilities commenced
there in October. I have not officially reported these views until
now, having preferred to wait for such additional evidence as naturally
would be sabsequently developed calculated either to confirm or
refute them. From all lights I have since, from time to time, been
able to obtain, I am more and more convinced of their coriectness.

Colonel Wright, dth infantry, in command, reports from his c^mp
on the Nachess river, Yakama conatry, (mf^ IT.) May 30, 1856,
and says: "I believe most of these chiefs desire peace, but some of
them hold back in fear of the demands that may be made upon them
for their murders and thefts. They seem to think and say that they
had strong and good reasons for the murders they have committed,
both of the miners and Indian agent, (Bolon;) the outrages of the
former and the injudicious and intemperate threats of the latter, if
true, as they say, I doubt not maddened the Indians to murder them."

I have given what I regard as the causes of and acts immediately
preceding the Indian war in Oregon and Washington in 1855-'56.
It was at the time clearly shown to my own mind, by my own investi-
gations of facts, that the principal cause is to be found in what I
have stated in reference to the Walla- Walla council and the treaty
there made.

Since that war commenced, I know it has been said by those
holdiDg high positions that it was one determined upon, a long tim^
previous to the council, in a secret combination of tribes resolved upon
exterminating the whites; but upon examination of this opinion,
whenever and by whomsoever expressed, I find it to rest on ipse dixits,
mere sayings without proof. In the annual report of the Secretary
of War, December 1, 1856, it is said: "A combination embracing
most of the tribes inhabiting those Territories (Washingt^m and Ore-
gon) was entered ^n^^jnd the extermination of the whites seemed
to be their purpos^'r" ^bia is a most comprehensive charge against
the very many tnb9^occi4>yi''S those Territories, lUid it comes from

. ' iX'-ooglc

88 TOPOOBAPHICAL HEHOIE OF THE

high anthority. Bnt I have hooted in vain for credible evidence to
aobetantiate it to the extent of its declaration. I think the Hon.
Secretary may have forgotten the number of tribes in those Territories.

On the 11th June, 185G, Colooel Wrij^ht reports from his camp on
the Nachess: "The chiefs all sent the moat friendly messages. I
answered, they mnst como and see me. Otv-hi and Te-vi-as came,
and we had a long talk about the war, its origin, Ac. Ow-hi related
the whole history of the Walla- Walla treaty, and concluded by saying
that the war commenced from that moment— that the treaty was the
cause of all the deaths by fighting since that time. Ow-hi is a very
intelligent man. He speaks with great energy, is well acqoainted
with his subject, and hia words carry conviction of troth to his
hearers." Ow-hi, though a Yakama chief, it will be remembered.
spoke at that coancil for the Umatillas; his speech not only conveyed
the sentiments of his tribe, bnt it was Ukewise an index to the mindB
of hia own people.

It is not to be doubted that during the council some of the chiefs
were secretly plotting. The occasion afforded them too good an
opportonity to be lost for talking over their grievances and concoctiiig
plans. In this sense, it may be, there was a combination of some
of the eight banda asaembled.

Is it to be presumed the commissionerB were oot aware of the
temper in which they letl those Indians ? Is it to be believed they were
cajoled into the idea that the chiefs meant to comply with the stipula-
tions? Ii would be passing bnt a poor compliment apon the discern-
ment of the President's ambassadors to answer tiiose interrogations
affirmatively.

Was it not, then, the doty of these genUemen to immediately inform
the military commander of the department of the bad temper existing
among them? Instead of which, on the contrary, one of the com-
missioners, soon after coming from the cooncil, sent a message to
General Wool, asBoring him all was quiet there; that the Indiaas
attending the council were all friendly disposed, and that happy
results were anticipated immediately to flow in consequence of uie
treaty. This message was commanicated to the general at his head-
quarters about the 1st September, and it was the only communication
to him, direct or indirect, after the holding of the cooncil, from
either commissioner on the subject until the war commenced.

The commanding general of the department had returned from
his inspection of the posts on the Columbia in the preceding June,
after organizing and sending a command from Fort Dalles into the
Fort Boisfi district, under Brevet Uajor Haller, 4th infantry, as ex-
plained under the head of "Eastern Oregon," and had then left all
Beaceful in the whole of Washington Territory, as well as in Or^on.
[ajor HalleWs command returned to Fort Dalles about the last of
September with his animals much worn down after so long a march.

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DEPABTMEST OF THE PACIFIC.

IX. MHilary t^peratioM during the Indian war ^ 1855-56, m
WaakingUm and Northern Oregon,

In chapter Till the cause of this war has been given. Id this
chapter I eliall record ttte procedings and operations of the troops,
regulars and volnnteers, as briefly aa consistent with a clear narra-
tive of the principal circumstances.

Up to the time of the mnrder of Sub-Indian Agent Bolon, in Sep-
tember, 1855, there were only three military posts in all this conntry,
viz: Fort Steilacoom, garrisoned with two companies 4tb infuitvy;
Tort Vancouver, with two companies 4th infantry and on ecompanr
3d artillery; Port Dalles, with two companies 4th infantry and a sHtail
detachment of dragoons; the troops at the latter post having, m
before stated, quite recently returned from the Snake River expedition,
were under the immediate command of Captain (Brevet Major) Holler.
Major Gr. J. Aains, then commanding the 4th regiment infantry, was
the senior ofiScer in all these districts, with his headquarters at Fort
Vancouver.

On being informed of the murder of Sub-Agent Bolon, and on n
call upon him for troops by the then acting Governor Kaaon, of
Washington, Major Rains reports, 3d of October, 1856: "We have
sent 40 men with two officers from Fort Steilacoom, and 102 men with
five officers from Fort Dalles, into the Yakama country, and shall follow,
if necessary, with all our force."

Here it will be seen that the call from the acting governor (in the
absence of Governor Stevens, who was then on the Missouri, about
1,000 miles distant from Olympia) upon the army for troops was
most promptly met by Major Bains.

At this time General Wool, commanding the department of the
Pacific, was at his headquarters, Benicia, California, more than 1,000
miles distant from the scene of threatened hostilities. It is here to
be observed that tho only direct means of communicating from Fort
Vancouver to his headquarters was by the semi-monthly sea steamer,
whose trips were so regulated that she arrived at San Francisco on or
about the 4th and 19th of every month; and as in good weather she
required five to six days to make tho run, she would leave Portland,
bringing despatches from the Columbia river, abont the 29th of one
month and the 13th of the following month. These despatches could
only reach the general on the nights of the 5tb or 6th and 19tb or
20th of each month. And in transmitting despatchen from his head-
quarters, they had to leave Benicia not later than the 4th and 19th
to reach the Columbia river and Puget's Sound posts. I have put in
this explanation to show how it was that information of Major Rains'
action, Octobers, calling for volunteers, did not reach General Wool
until the 19th of the same month.

The little force under Lieutenant Slaughter, from Fort Steilacoom,
was to proceed through the Nachess Pass, (maps 16 and 17,) and tb&t
from Fort Dalles, under Mnjor Haller, by the rente seen on map 19,
into the Yakama country. The former started and was far. on ItB.way

X.ocwic

90 TOPOOEAPBICAL UEHOIE OF THE

when, learning of the Indian force in front, it jndiciouslj retamed to
White river. On the afternoon of October 6 Uajor Haller' s command
fell in with the Indians, and commeDC«d an actioa with them in the
hrush on the Pieco river, and, after fighting some time, drove them at
the point of the bayonet, and took poBseaaion of a hill; he was sur*
rounded by Indians, and called for a reinforcement. This call reached
Major Raina on the 9th, and the next day Lieutenant Day, 4th artillery,
started from Fort Dalles with 45 men and a mountain howitzer to
reinforce Uajor Haller.

Major Bains reports the same day, October 9, to the governor of
Oregon, and says: "As com muiding officer, I have ordered all the
United States disposable force in this district into the field im-
mediately, and shall take command. As this force is questionable to
subdue ihese Indiana — the Yakamaa, Elikatats, and may be some other
smaller banda— I have the honor to call upon you for four companies of
volunteera, composed according to our prasent organization. This is
just enough for a Major's command, and would authorise that officer
alao. They can be mustered here, (at Fort Yanconver)."

Such was the call for Oregon volunteers, made by Major Bains, by
what authority it doth not appear, except perhaps from what he
derived in virtue of having assumed, being "commanding officer;"
it will he perceived there were only four companies called for, and they
were intended by Major Bains to be mustered into the United IStatea
service at Fort Vancouver.

Whether there was any real necessity for such an additional force
to Major Bains' command I will not pretend to decide, but that the
call for these volunteers proved an embarrassment to him there can
be no doubt. After events must have convinced him that his call
was turned to a very different end from what he contemplated.

On the 10th October Major Heller's command, aftec much hard
fighting, succeeded in retreating to Fort Dalles, with severe lose in
kUled and wounded, in pack animals and one howitzer. The field is
marked on maps 17-19. It was a brave fight, in retreat gallantly
covered by Captain Bussell'a company.

Major Baina says in his remarkable official address (13th Novem-
ber, 1855) to the Yakama Indians: "I sent this handful of soldiers
into your country to inquire into the facts of the murder of Indian
Agent Bolon ; it was not expected that they should fight you.' ' From
this it would seem that M^or Haller attacked the Yakamas without
authority of his commanding officer.

The effect of this defeat — for such it must be considered — was to
embolden the Indians on the immediate east of the Cascade range;
and the news of it spreading like wild-fire, extended through the passes
to the Indians west of it, even to the Fuget's Sound dietrict; to the
east it went with equal celerity across the Columbia to the Walla-
Wallas, Spokanes, &c.

As before said, and for the reasons assigned, the commanding gen-
eral of the department did not receive until the Idth October in-
formation of events that had occurred in the order related up to the
13tb October, The action of the governor of OregOQ upon Miyor

X.ocwic

DEFABTUENT OF THE FACITia 91:

BaiDs' call for volunteers was not made kuown until after Uie stdnuter
left Portland.

On the 19th October the general ordered two detachments — one
from Benicia, the other from Presidio,, composed of 1 captain, (Ord,)
2 lieutenants, and 70 rank and Sle, 3d artillery — to proceed in the next.
Bteamer (2lBt October) to reinforce Major Baina. Thia force reached
itn deatinatioD and joined in time to take an active part in the cam-
paign.

Action cf ihi jpwenior vf Oregon. — Major Rains' call of the 9th Oc-
tober for volnnteera was answered on the 16th. Although within a
very few hoars' reach of each other, eight days elapsed before- the.
governor answered; and then he says to Uajor Bains, developments
after the date of hia requisition for four oompaniea of Oregon volun*
teers to be mustered into the service of the United States had deter-
mined him (the governor) ' 'to call into the field a regiment of mounted
volunteers, under tJie ccmuaand of J. W. Neamith. brigadier general
of Oregon militia. It ie wholly impracticable to induce the citiseos
of Oregon to enrol for service in the suppression of ayy Indian hoa-
tilitiea under the organization prescribed by the rulea and regolationa
of the United States army. I am therefore conatradned to preserve
a distinct military orgaaisation, under the authority of the territorial
government, of the force in the field in pursuance of my proclama-
tion."

The proclamation referred to calls for eight compaoiea, and assigOB
as a reason that ^'the chief in command of the military force of the
United States in this district having made a requisition upon the
executive of Oregon for a volunteer force to aid in suppressing the
attacks of hoatile Indiana." In assigning this reason the governor
leaves one to infer that the number of companies called out in bis
proclamation is in accordance with the call of Uajor Baina; whilst,
in fact, Uajor B. only called for half the number the generous exec-
utive organizes into an independent northern Oregon volunteer
army.

The volunteers from Washington, and their acting governor, were
less fastidious. Two companies of these promptly came forward at
the call of their executive, and enrolled themselves in the United
States service under the banner of Major Baina. In reference to
their aervices Qeneral Wool says: "These truly patriotic o£Scers,
(Captain Newell and Captain Strong, ) with their companies, have
rendered important services in restraining the Klikatata from joining
in the war with the Yakamos."

Major Baina left Fort Dalles on the 30th October, with about 350
regulars, for a campaign into the Yokama conntry, with twenty days'
provisions. On the 4th November, when about twenty-five miles
from the Dalles, (map 19,) he broke up some large caches of Indian
provisions, taking away about ten mule loads and destroying twenty
more, having captured a spy who revealed tbeae oachea. Acting
Qovemor Mason visited him at Oamp Yakoma, opposite Fort Dalles,
and conferred on him the rank of brigadier general of Washington
Territory, and retomed to his capital.

n,g:,.-,.dtyC00glc

92 TOPOOBAFHICAX. UEMOIR OP THE

SimnltaneoiiBly with the moTement of these regnlare, six companies
of the independeDt northern army of Oregon volnnteera, nnder Colonel
Xesmith, moved into the Yakama country; and a battalion of this
army, under Major Chin, filed off from Fort Dalles, taking the direc-
tion of Port Walla-Walla, (map 20.)

On the return of Lieutenant Slaughter* % little force to his position on
White river, after the defeat of Major Haller, Captain Haloney. 4th
infantry, took command, having increased the force in the field of the
Puget's Sound district so as to number about 100 regnlars, and one
company of mounted Waebington velanteers, under Captain Hayes,
and started to cross the Cascade range, through the Nachess Pass, for
the purpose of forming a junction with Major Bains, who, it was ex-
pected, would have simultaneously left Fort Dalles. As some delay
necessarily occurred in the time of the starting of the latter, Captain
Maloney was advised, and accordingly retamed to White river 2d
November. This proved a fortunate movement for the scattered
population of the Pi^et' s Sound district. After the departure of the
regulars from this district for the Yakama country, the Indians on the
west slope of the Cascade range, being in free communication with
the victorioos Yakamas on the east, through the Klikatat, Cowlitz,
and Yakama (Snoqualme) Passes, had risen in arms — stimulated, no
doubt, by the success of their brother Yakamas in their fight with
Major Haller — and compelled a detachment of citizen rangers to resort
to a house for defence. Captain Maloney sent a party with an express
to Fort Steilacoom, which was attacked, and some of the persona
killed by the Indians within one day's journey of the fort.

On the 3d a party of 50 regulars and 50 volunteers, under Lieutenant
Slaughter, 4th infantry, detached for the pnrpose, attacked a large
body, numbering, it was said, 150 or 200, and killed 30 Indians. On
the 3d November, Gteneral Wool reports to the headquarters of the
army as follows : "Inaddition to Captain Ord'e company, which went
by the last steamer, I have ordered to the scene of hostilities, in
Washington, Captain Ee} es' company at the Presidio, also a company
from Fort Humboldt, and Captain Fitzgerald'scompany Istdragoons,
at Fort Lane, Oregon, to pnsh on as fast as possible for Fort Dalles.
Ample stores and ammunition have been forwarded, and I shall leave
in the steamer of the 6th instant for the scene of war, where I will be
able to explain more clearly the position of affairs. It will not be
safe to move any more of the troops from their present positions, but
I shall endeavor to avoid the necessity of recognizing volunteers in
the United States service. We require more troops in this depart-
ment, at least one regiment." On the 3d December the 9th regiment
of infantry was ordered to reinforce the department of the Pacific.

Genertd Wool started with his staff ae soon »s possible, after re-
ceiving (19th October) Major Rains' report, and having made all
necessary arrangements vrith regard to forwarding supplies, &c., id
the steamer California, taking Captain Keyes' company along, which
left San Francisco 6th November, 1855, having on board —
^ Major General Wool, commanding department Pacific

Major Townsend, assistant adjutant general.

ii,Cooglc

BEFABTHUNT OF THE PACIFIC. 93

Major Cross, chief qnartermaster.

Major Lee, chief commisBary.

Cuptaiti Cram, chiuf topographical engineer.

Lieutenant Bonnycastle, aid.

Lienteaant Arnold, aid.

Captain Kejes, 3d artillery.

Lieutenant McKeever, 3d artillery.

Brevet Major Reynolds, 3d artillery, (intending to land at Fort
Orford, to take command of his company at that post.)

Mr. Fei^uBon and Mr. R, Lee, clerks to Major Cross fuid Major Lee.

It was the intention of the general to have the boat atop in at Fort
Humboldt and take one company, and with two companies proceed
as fast as possible to Fort Vancouver, the military centre of opera-
tions then going on in the Fuget's Sound and Yakama districts.

On the evening of leaving San Francisco a storm commenced, the
first one of the rainy season. This was a severe storm for the Pacific
coast. It was impossible to land at Humboldt, or even to enter the
bay. After boating off and on 24 to 3S hours, and the storm in-
creasing, it was decided to proceed without the company of the 4th
infantry. The neict day it was found equally impossible to land at
Fort Orford, owing to the same cause, and Major Reynolds was obliged
to continue on board.

The steamer was then put towards the Columbia river, and nothing
disastrous occurred until we reached the offing at the mouth of that
river; tho storm continuing with unabated fury, it was found impossi-
ble, without nxtreme ritk, to cross the bar. Accordingly the boat
was kept steaming off and on, all anxiously waiting for a favorable
condition to allow on attempt to be made by the pilot to put her aoross
the bar. While in this state of things one of the boilers burst and
the boat took fire.

The scene was awful in the extreme. There we were in the very
midst of the tremendous breakers of the mouth of the Columbia^ that
can only be appreciated by being seen, in a raging storm, with a boat
in flames. The elements were all against us. The cool, collected
conduct of Captain Dall, commander of the boat, wid the cheerful
obedience of his officers and crew, aaved us, under Providence, from
wreck and from fire. He wderad the pilot to put the boat directly
for crossing the bar, and all steam to be crowded that could be gene-
rated in the other boiler, himself taking the helm from the pilot after
the latter had aunouaoed to Dall that the boat and all on board must
be lost. For one half hour in that awfiil state of suspense, Dall
calmly, with a cheerful smile on his countenance, issued his orders
for extinguishing the fire, directed his officers how to act, and himself
the while steered the boat.

Captain Keyes' company of soldiers and their officers were very
instrumental in extinguishing the fire. There was alsrge quantity of
gunpowder on board; that nearest the part of the boat in fiames was
thrown overboard, lest the fire should reach it and blow us up.

During the struf^e between the power of the engine and of tlie
opposing waves and breakers, a tremendous reacting wave from the

II, Google

'94 TOPOOSAPHICAL MEHOIB OF THE

Bea atnick the boat in her stem; this, with the force of the steam,
carried us'over the bar into comparatively safe water; now redonbled
energy was applied to estiognish the flames, and in a few minutes
more it was announced ' ' the fire is under. ' '

For one hoar and more all reasonable men on board expected we
must be bnrot to death, blown np by an explosion of gnnpowder, or
wrecked among the breakers. All three causes threatening simul-
taneously to destroy all on board. Besides the military, there were
many passengers; all those intending to land at several places
having been brought by, from the impossibility of entering the ports.
By night, however, the steamer had gained a position inside of the
bar, where anchor was cast, her disabled condition not allowing her
to stem the tide now against us, and we retired to rest as we thongbt
in sufficient saffety to allow us to hope seeing the light of another day.
But during the night the wind, blowing strong down the river, caused
our anchor to drag, and the current swept us back within half aboaf s
length of the dreadful breakers, into which if we had gone nothing
within the power of man could have saved us; but before actually
reaching the jaws of this danger, again the courage and decision of
Captain Dall were brought into requisition. He ordered hogsheads
of bacon, which were on board, to be broached; and this fatty sub-
stance used for fuel raised steam so qnickly that headway was given
to the boat, and we escaped the devouring breakers and steamed 10
miles up the river to Astoria. Here we remained 24 hours for the
engineers to patch the boiler, then started for Fort Vancouver; but,
as bad hick seemed yet determined to attend the California, she got
aground, and we were 24 hours getting off; after that we reached
Fort Vancouver on the ITth November, having been 12 days making
the ran from San Frttncisco; a run, under ordinarily l^vorable circum-
stances, that would have been accomplished in five or six days.

Immediately on the arrival of the general, he reports: "Findinga
reinforcement more necessary at Steilacoom than in any other section,
I have ordered Captain Keyes there with his company. Finding it
impossible to cross the bar at Humboldt, I did not bring mth me a
company from that place; I shall order it to Crescent City, to guard
and escort the supplies to Forts Lane and Jones."

It is to be observed that the commanding gerieral of the depart-
ment of the Pacific at this time had much on hand demanding his
attention. There were four fields in which active operations were
going on, viz: the Rt^ue River country, of which the operations have
been described in chapter VI; the Puget's Sound district, in which
Captain Keyes had now to take the immediate charge: the Yakama
district, in which Major Rains was operating with the regulars, and
Colonel Nesmith with the volunteers; and the country from Port
Dalles, towards the Walla-Walla valley, in which another body of the
independent northern Oregon volunteer army were acting under
Major Chin. To these may be added a fifth field, in which it was
expected hostilities would be immediately commenced, the southeast
part of the State of California. Indeed, the difficulties there threatened
to be of such a nature that the act of leaving his headqnarterB for

DEPABTUENT OF TBI! PACIFIC. 95

the Colntnbia river couDtry, in the minds of Bome, wae of questionable
propriety in a strictly military point of view, irrespective of per-
sonal COD Bide rations of soldierly zeal.

The general commanding the department, however, was now at a
point where be was enabled better to judge for himself of the wants
of the service, and of the plans to be purened in this portion of his
command, than if he had remained at Benicia.

In our chronicle of events Qp to 30th October, we left Rains and
Xesmith penetrating the Yakama country, the former with 350
regulars and two companies of Washington volouteers, who mustered
into service under his command, and the latter with six companies of
the northern Oregon army, who would not muster into the United
States service, and for this reason the former had no anthority over
the latter; the Oregon volunteers, however, would go where went the
regnlars, and their presence greatly embarrassed the cfunpaign; one
of the exploits of this volunteer force consisted in burning the
Catholic mission on the A-tah-nam, (map 19.)

So lai^e a force as the regnlara and volunteers in the Yakama field
at the same time was calculated to frighten the Indians, and the con-
sequence was, no battle could be had; some skirmishes occurred,
amounting to nothing decisive.

In reporting apon this campaign General Wool says : " I regret the
destruction of this mission by the volunteers who followed under the
command of Colonel Nesmith, and ordered into the field at an enor-
mous expense by Governor Curry, where they were not reqaired,
without my sanction or that of Major Rains."

Major Rains in his march, 300 miles, going and retamtng, drove the
Indians beyond his reach, over mountains covered with snow; they
6cd to the northern part of their country, but did not in any consid-
erable numbers cross the Columbia into the Nez PercS or Spokane
country. This was in reality a winter campaign for the regulars; the
Snow bad fallen to a considerable depth, and the troops were severely
frozen in the feet; in seveml places the snow was waded through five
feet deep, the animals were worn out, the men had become reduced
in clothing, particularly in shoes and stockings; and those troops were
'destitnte of ^1 the necessary means to make another winter cam-
paign.

The volunteers under Colonel Nesmith returned to Fort Dalles,
from the Yakama country, 19th November.

General Wool reports, "Major Rains coald ftrflow the Indians no
further on account of snow, then rapidly falling, being several feet
deep; the intervening mountains covered with snow from two to
three feet deep. He left the greater part of his regulars about 25
miles from Fort Dalles on the 20th to build a block-house, and arrived
himself at Fort Vancouver on the 24th November."

After receivit^ the report of Major Rains, the general directed
that the regulars of the Yakama campaign should be assembled at
Fort Dalles for subsequent operations.

Three officers of bis staff. Major Cross, Major Townaend, and Cap*
tain Gram, were directed to proceed to Fort Dalles, and llajor Lee,

iX.oogIc

96 lOPOOBAFHlCAL HEUOIR OF THE

with Captain Keyes, to Fort Steilacoom, each with iDBtrnctiona to
inspect in reference to bis appropriate department, and report npon
the condition of the troops, the means of making another expedition
that Beaeon, and the nature of the country into which the expedition
should penetrate, the best to accomplish objects in a manner to be
productive of eomo practical benefit.

It was apparent that little had been done, except to lireak down
the command, in Major Ruina' expedition, in company with volnn-
teers. It was alBO apparent to the general, as well as to every intelli-
gent army officer who had aeen the operations of this independeDt
organization of vulunteere, that as long as they were permitted to
remain in the field, very little, if anything, could be accompliBhed
towards an effectual closing of troubles in that qoarter.

General Wool alao reports: "Unknown to Major Rains or myself,
it would seem that the governor of Oregon, when he authorized or
ordered Colonel Nesmith to follow Major Rains in his expedition to
the Yakama country, lie ordered four companies in the direction of
Walla-Walla. These companiee, under Major Chin, left Fort Dalles
November 10, marched to the TTmatilla, where tliey built a block-
house and there waited reinforcements. After the return of Colonel
Nesmith from the Yakama field, he ordered several companies (170
men) to reinforce Major Chin. During this period of more than two
weeks, although tlie volunteers reported mpre than 1, 000 Indians at
or near Fort Walla- Walla, they were not attacked or molested by the
Indians."

The superintendent of Indian affairs of Oregon writes to General
Wool. November 21, 1856, as follows:

"The strong desire of a portion of our citizens to involve the tribes
(Walla-Wallas, Cajuaes, and Umatillas) with those (the Yakamas and
Klikatats) now unfortunately engaged in hostilities against ua, leada
them to circulate exaggerated reports of the intentions and actions,
well calculated to exasperate our people to acts of violence, with a
view of provoking retaliation, which may afford an excuse for makin)^
war upon them. My confidence in the chief, Feepee-mox-mox, bead
chief of the Walla- Wallas, is such that I am unwilling to believe that
he will engage in hostilities against us, unless driven and provoked to
do so by overt acts of aggression on the part of our citizens. I am
also satisfied that the Cayuses as a tribe are desirous of maintaining
peace, and that there must be, on the part of the whites, a departure
from the principles of justice, and a violation of the rights secured
to this tribe by the treaty, before they will become a hostile ptirty in
tliis war. This is also true of the Nez Perc^st. Their uniform good
conduct and friendship for our citizens render all intention on their
part to make war on us as quite imprqbable. The reported coiubioa-
tion of all those tribes with intent to wage a war of extermination
against the whites is, I apprehend, but a phantom conjured up in the
brains of alarmists, unsupported by one substantial reason."

On the same date (November 21) as the foregoing, Colonel Neemitb,
of the independent northern Oregon volunteer army, made a reqntsi-

n,g:,.ndtyC00glc

DEFARTUENT OP THE PACIFIC. ' 97

tioD on the commsoding general of the department of the Pacific, aa
follows:

" It IB reported tliat Pee-pee-mox>inox, with hia 1,000 warrJorB,
had taken a strong position. To dislodge him it is desirable to have
the service of artillery. I have therefore to request you will famish
me with two or three howitzers, or other equivalent artillery, with
officers and men requisite to manage the same, for that purpose."

To which the general replied, November 24, " I have not the power
to give you the assistance you aak for."

The careful reader will here observe that the responsible officer,
viz: the superintendent of Indian affairs, presents a very different
view of the case to the respousible general commanding the depart-
ment from that presented at identically the same time by the irre-
sponsible officer of the volunteers, in relation to the very grave
question of carrying the sword into the Umatilla country. The
responsible officer makes no requisition upon General Wool, while the
commander of the governor's independent northern army seeks to
induce the general to embark the regnlars in the enterprise.

Now, what was the real condition of the settlers in the Walla-Walla
end Umatilla valleys at this time 7 A few whites had been permitted
to go there on sufferance by the Indian agent, for, be it observed,
none of that countiy as yet had had the Indian title extinguished;
but in granting this permission to the whites to enter it, it was well
understood by them that they were to depart at any time at the bid-
ding of the agent.

All the whites had left those regions and come into places of safety
nearly a month before Chin's command started thither from Fort
Dalles, and this, too, on warning of Indian Agent Olney, immediately
after learning of Haller's defeat. The half-breeds, however, of whom
there wore a few families, having nothing to fear, remained. There
were two houses belonging to the whites that had been thus deserted,
also the Hudson Bay Company store at the month of the Walla- Walla.
There is proof to show that it was not Pee-pee-mox-moz, but Tel-
low Serpent, who pillaged the store, and that it was a Xez Perc^ at
the instigation of the Yakamas, who burnt the houses.

It was well known to General Wo<^ that the report of Chin being
threatened with 1,000 warriors was an exaggerated fabrication, for
the warriors of the Walla-Wallas, the Umatillas, and Cayusea, all
together could not exceed 300.

The governor of Oregon had called out volunteers to send to the
Walla-Walla conotry before the pillaging of the fort and the burn-
ing of the deserted houses, and that the Indians there had nothing
favorable to hope at the hands of these volunteers was the common
belief in all that country.

The bouses had been plundered and burnt and the stock driven off
before Chin's command left Port Dalles, but not until after the war had
been carried into the Yakama country by Major Haller, contrary to the
expectations of his commanding officerwhosentbim, andnotuntil after
Chin had received orders to march through the Umatilla and Walla-
Walla countries. His orders were (as he informed the, writer), to

H.E1.D0C. IH 7 „,L.oo^<lc

98 TOPOOBAPHICAL UEUOIR OF THE

march to the Walla-Walla, thence to the Saake river, to the aaeistance
of Governor Stevens; and if he met Indians hostile to treat them as
such, but to treat friendly Indians with favor.

When a governor, who is not the superintendent of Indian affairs
in his Territory, sends an armed force of volunteers into a fertile valley
in which t)ie Indians are known to have fine, fat beeves and excellent
horses in herds of great abundance, it will be readily inferred that
with such very general orders, so loouely given as were those to Major
Chin, it would bo a very easy matter, upon the smallest pretext, to
draw or provoke the Indians into a fight, and afterwards justify the
act, particularly as in such cases there is only one side whoso story is
seldom, if ever, told to the world. \ow, I do not mean to say that
these volunteers were sent into the valley of the Walla-Walla for the
purpose of plundering those Indians of their beeves and horses, but
it is fair to conclude that they never would have gon* with the almost
certain prospect of being obliged to winter there, but from the fact,
well known among them, that there would bo plenty found there to
BobsiBt themselves during the winter, to refit themselves with horses,
and to make themselves comfortable and warm.

If the governor's independent northern Oregon volunteer army
were really desirous of making another winter campaign gainst
Indians kno\m to be hostile, they had only to follow the Yakamas into
their winter retreats, and then they would have received some credit
for disinterestedness.

Major Chin having been reinforced, as stated, Lieutenant Colonel
Kelly took command, and started from the Umatilla, where they had
named their block-house Fort Henrietta, on the night of the 2d De-
cember, and encamped on the Walla-Walla, three miles above its
month, and scouting parties were sent out.

Here is a point for inquiry, Was it the Indians or volunteers who
fired the first shot? Lieutenant Colonel Eelly has never answered
this ; but Indian Agent Olney, who vraa all the while with this expe-
dition, reports "that soon after they arrived here a party of Indians
were seen on the hills, when a detachment of volunteers commenced
afire upon them."

On the 5th, Lieutenant Colonel Kelly divided his force, sending
Major Chin with 125 men to escort his bt^age and pack-trains to the
mouth of the Touchet, (map 20,) and himself started with the re-
mainder for a point fifteen miles above, on the same stream, where
Pee-pee-roox-mox, chief cf the Walla- Wallas, and his warriors were
encamped. Lieutenant Colonel Kelly himself says : "When within
three miles of the hostile village, that chieftain, with about seventy
or eighty armed warriors, made his appearance, approaching towards
us. An order was at once given to attack them; but as we moved
rapidly up I observed six or seven Indians, a short distance in advance
of their main body, bearing a white fiag. Halting my command, I
went where they were with Agent Olney, an interpreter, and three
or four others. One of these Indians was the chief, Pee-pee-mox-mox,
who asked why we had come armed into his country, and was told tee
came to chastise him and his people for the wrongs they had done to

Xiocwic

DEPABTHENT OF THE PACIFIC. 99

the whites. He said he deeired peace ; that lie did not -meh to fight,
and that he had dooe ns no wrong. I recapitulated the wrongs, the
pillaging and deBtruction of Fort Walla- Walla, and appropriating the
goods, the burning of the houses, and the driving off the cattle. At
first he denied having done these, but afterwards said they we'e done
by bis young men, and that he could not restrain them. He said be
would make his people restore the goods taken by them so far as they
coald be restored, and pay for the balance. I stated to bim that this
would not be Bufficient ; that, in addition, he should make his people
surrender their arms and ammnnitioo, give ns cattle for beef, and
horses to remount my command. To these terms he consented, and
aaid he would come on the morrow and comply with them. I told
him that we came to wage war against him, and that he could not go
without exposing his villages to immediate attack ; I told him be
might go away under his flag of truce, but that if he did so we would
without delay commence an attack on his villages ; that if he and
his six followers would consent to remain and fulfil the terma his
tribe would not be molested."

Lieutenant Colonel Kelly held the chief and his companions prisonerB,
and, while holding their chief as prisoner, tried to induce the people
to comply with his demauds; but finding bis negotiations to compel them
to despoil tbemselveB of arms, ammunition, beeves, and horses, and
seeing no hope of coming to terma, he marched down to the monUi of
the Touchet, taking bis prisoners along, and tied them on the night
of the KLb, one having attempted, but unsuccessfully, to escape. It
is also in the evidence of two captains of these volunteers, that "on
the morning of the 7th a party of Indians appeared on the hills in
front of our camp. Here Lieutenant Colonel Kelly sent another
messenger asking them to come in and give up their arms. They again
refused, but demanded of us their chief, and ordered us to pass no
further up the river, or they would fight us."

Disregarding this warning, the volunteers started about 6 o'clock
the same^orning to march up the Walla-Walla river, and had gone
about three-fourths of a mile "when the Indians fired at two men
"wbo were driving up some loose beef cattle." It is not reported
whether these beeves belonged of right to the volunteers or the
Indians ; but the report goes on to say "the fire was returned aad a
general fight ensued."

Lieutenant Colonel Kelly accuses the Indians with firing first this
morning, but Ur. Olney reports : " I am forced to believe the firing
was first commenced by the volunteers, as it was evident the Indians
did not meditate an attack, for tbey were at the same time preparing
the morning met^l ; in several places the volunteers dismounted and
partook of the roast boef found at the fires where the Indians were
encamped."

The Indians were driven ten miles np the Walla-Walla, to La Rogue's
bouse, (now called Fort Bennet,) when they were reinforced and made a
stand. The prisoners, Pee-pee-mox-mox and his companions, were
brought up by the guard. Kelly says : "On the sergeant of the
guard saying to me they were greatly excited while the battle wai

X.ocwic

100 TOPOORAPIUCAL IfEHOIR OF THE

raging, antl that he feared they wonld escape, I told him to tie them
all; aod if they resisted or attempted to escape, to kill them."

After giving this order, the commanding officer says he ' ' rode on,
and when ahoiit 200 yards distant, heard the report of fire-arms at
the place where the prisoners were, and was shortly informed that
when my order to tie them was about being carried into effect, they
resisted, one having drawn a concealed knifu from his coat sleeve,
mth which he wounded Sergeant Miller in the arm. Fee-pee-mox-
moz attempted to wrest a gun from the hands of one of our men,
when he was knocked down with the butt of a rifle, and put to death,
as were also all the other prisoners, except a Nez Percl youth, who
made no resistance at being tied."

After the foregoing evidence from his own month, it may he perti-
nent to ask if Lieutenant Colonel Kelly will again accuse, to the governor
of Oregon, "an officerof the United States army at Fort Vancover" of
patting in circulation untrue reporfa concerning the capture and death
of the late chief of the Walla- Wallas ?

"After coming to a stand at La Bogne'e, the Indians fought the
volunteers desperately until dark on the 7 th; on the 8th the battle
was renewed, and the fight continued until night, when both parties
again withdrew; on the 9th the Indians again made their appearance,
when they were attacked by our party. This day's fighting was not
so hard as the former. Early on the morning of the 10th the Indians
had got possession of onr trenches; a party was sent out to attack
them; a hot fire was kept up five or six hours, when the Indiana were
routed, and all were driven far above their camping ground, left the
field, and were ceen no more. On the field, our loss was 16 wounded
uid Skilled. The loss of the enemy was not definitely ascertained."

The Indians during this fight were removing their effects across the
Snake river, and after the battle the warriors who had so bravely
covered the retreat also crossed it. The northern army of Oregon
volunteers went into winter quarters, and there rested upon their
laurels, regaling themselves upon the beeves of the luxuriant valley
of the Walla- Walla.

The Cayuse chief, Howlish Wampum, the very friend and identical
man whom Lieutenant Colonel Kelly brought forward to sustain his ac-
cusation against Pue-pee-mox-mox. says : "We had thousands of horsea
and cattle; the hills aud valleys were covered with them; where are
they now? Not an animal is to be seen over this wide expanse.
Between the hostile Indians and the (volunteers) we are stripped of
everything."

In regard to the optration$ in the Puget's Sound district, — On the
4th October the United States sloop-of-war "Decatur," Commander
J. S. Sterrett, anchored off the little town of Seattle.

On November 22 the Decatur was at Steilacoom.

On November 24 Captain Keyes, with hie company, arrived at Port
Steilacoom, havingbeendespatchedby Gteneral Wool, as before stated,
from Fort Vancouver.

Onthe25tb, Lieutenant Slaughter's camp, on the Puyallup, 21 miles

n,g:,.ndtyC00glc

UGPAETHENT OF THE PACIFIC. lOt

fro:a the fort, was surrounded, his sentinels fired on, and in the night
32 animals were stolen.

On the receipt of this, Captain Kejes took the Seld, leaving Cap-
tain Maloney, with 100 men, in command of the fort. The hostile
Indians in this district were principally located in a densely wooded
country admirably adapted to ambuscade, and full of trails crossings
in every direction. Pack animals had to be used for transportation.
The Captain says, "as onr pack animals are small in number, and
nearly broken down by hard work, and as there is a lack of feed ia
the places where the troops have to operate, we may be reduced
shortly to the necessity of acting entirely on the defensive, and must
wait for summer and alarger force before we can subdue the Indians."

On December 1 the Decatur again anchored at Seattle, where her
commander received a request from the citizens for protection against
the northern Indiana.

Commander Sterrett reports, December 5: "After several inter-
views with these Indians, I have the satisfaction to state that they
have consented to depart, and have promised not to return during the
Indian troubles."

For the opportune arrival of the Decatur in these waters, and the
timely assistance rendered by her to the citizens, the Hon. Secretary
of War tendered his acknowledgments to Commander Sterrett.

On the evening of 5th December, while encamped near the junc-
tion of Oreen and White rivers, (map 16,) Lieutenant Slaughter was
picked off by Indians, who crawled up nnar his camp, guided by the
light of a fire he bad imprudently allowed to be kindled. In reporting
hia death, also that of two corporals, and the wounding of six privates
on that occasion, the commanding general says: "Lieutenant Slaugh-
ter waa a gallant and enterprising officer, and had rendered import-
ant services in the defence of the inhabitants of the Fugefa Sound
■district."

Captain (Brevet Major) Fitzgerald's company Ist dragoons arrived
at Fort Vancouver about the Ist December, havin.' made the march
from Port Lane. 278 milew, with their wagon train, in 21 days, under
the most unfavorable condition of the roads.

Ou the 13th December the commanding general reports: "The
Indians will not engage in a field fight with any considerable number
of regulars. Their mode is one of ambush and surprise. Their
country, both in Oregon and Washington, except near Pnget's Soaod,
being mountainous, is well calculated for this mode of warfare.
.Under these circumstances it would bo exceedingly difficult, with
my present limited force, however well prepared, which is not the
ease, to either conquer or bring these Indiana to terms in this regioa
hy chasing them — all being well mounted — through the mountains;
and certainly not at the present moment, the mountains being gen-
erally covered with snow several feet deep. They can only be con-
quered or brought to terms by occupying their country in such
positions as to command their fisheries and the valleys where their
cattle and horses are grazed. This I propose to do; and I am now,
-with my stafT, actually preparing an expedition for thU.parpQBe.

102 TOPOOEAPHICAL MEMOIB OP THE

This, however, after a critical inspection of troops, supplies, and
means, I find cannot be accomplished as soon as I could wish, owing
to the want of troops, means of transportation and clothing for the
4th infantry. The several expeditions — viz: to Fort Bois^, returned
the last of September; the recent one of Major Haller to the Yakama
country; and the more recent one of Major Rains into the same
country — have reduced the greater part of the horses and mules of
the command, including those of Major Fitzgerald's company, just
arrived from Fort Lane, to a condition which renders them for the
time being un6t for service. Ae soon as the animala are fit for
service my present force will be ready to take the field ; and if I
should receive, in the meantime, an additional force of one regiment,
which would supersede the necessity of employing so expensive
a force as volnnteers, I have no doubt I will be able in a short time
to conquer the Indians in Oregon and Washington, or compel them
to sue for peace or abandon their country. I have in no instance
received or authorized the raising of volunteers. I have adhered to
this rule because I applied to the Secretary of War for the authority,
which wafi not granted.

"When this war was sprung upon us the regular force under my
command, in order to give equal protection to the inhabitants, was
dispersed in small commands from the northern to the sonthem
extremity of the department, extending over more than 1,600 miles;
but not a sufficient force at any one point to overcome a combined
attack of several tribes of Indians. If the Indians in the southeast
portion of the department should make war on the people in that
section, I could send no relief besides the troops at Fort Tuma and
San Diego, which would not exceed 250 rank and file, except hy
■withdrawing troops from the Yakama field, the Puget's Sound field, or
the Rogue river field. This could not be done at the present time
without endangering the settlements in Washington, Oregon, and
northern Cahfornta.

"In conclusion, it is justly due to make known that the sudden,
unexpected, and arduous duties which the officers of the lino, as well
as of the staff, have been called on to discharge, were zealously,
promptly, and efficiently executed. All deserve high commendation,"

On the 18th December the United States Coast Survey steamer
Active, Commander Alden, having volunteered for the service of the
war, appeared in the Puget's Sound waters. At this time operations
in this district had for thfe most part ceased for the winter, owing to-
the small force which could be brought into the field and the condi-
tion of the country, which, from incessant rains, had become almost
impassable. The regulars and volunteers had been drawn in around
the towns to act on the defensive, making occasional demonstrations
against the Indians.

On the 25th December the general reports: "Since my communi-
cation of the 13th instant winter has fairly set in, the ground is
covered with snow, and the Columbia river is frozen over as low
down as the month of the Willamette, six miles below this place,
[Fort Vancouver.] This cuts ofi" all communication with Fort Dalle*

DEPIBTMENT OP THE PACIFIC. 103

and the whole couDtiy abovo until the river is clear of ice. Owing
to the high water io the streams it has been impracticable to send
reinforcements by land to Fort Steilacoom. I intended to have sent
Captain Ord's company, 3d artillery, but have failed in my efforts
to procure transportation until the ice breaks up. I can send no
reinforcement to Captain Keyes."

With the two vesselB-of-war in the Puget's Sound waters, and the
regulars and the volunteers in that district, the general was satisfied
the inhabitants could be defended until he would be able to send
a reinforcement; but be did not expect the troops would be able to
take the offensive, until Captain Keyes could be reinforced.

The general says: "In my communication to the headquarters
of the army, 13th December, I mentioned that I was actively engaged
in preparing an expedition for the Indian country. I soon found it
would be impracticable to execute my intentions as soon as I desired.
I could neither obtain in this country the means of transportation nor
forage without paying enormously for them, which the state of the
war in this region did not call for. This state of things has been
caused by the extraordinary course pursued by the governor of
Oregon, who is making war against the Indians on his own account,
and without the slightest reference to myself, not having received
any communication whatever from him on the subject. The quantity
of supplies required for his volunteers and the enormous prices paid
in scrip by his agents have rendered it necessary for me to resort to
Benicia for horses and mules, aijd to San Francisco for forage."

The governor of Oregon says: ' ' On my return from southern Oregon
I learned from those representing me, who had made General Wool
an official visit in my absence, of the inauguration of a plan utterly at
variance with my own, which obviated the necessity of a personal
interview. The wisdom of my plans it remains only, in part, for time
to vindicate."

The governor was very much in error in supposing any official
communication, by any one claiming to represent him, was made to
General Wool, or to any officer of his stafT.

It is true, that as soon as the war commenced, then, indeed, were
the general and his troops vociferously called for in Washington and
Oregon, but not by the governor of the latter Territory. Their
papers, teemed with articles, as if to convince the readers that the
only duty of this veteran soldier, whose head had become hoar in the
service of his country, now consisted in standing, in person, at every
man's door, in both Territories, with his drawn sword to defend its
inmates from the ruthless savage ! And when the general promptly re-
paired with the vigor of youth to the very military centre of the scene,
and dared to issue his commands and express his opinions, as it well
became an officer clothed with responsible trusts of honor and aa-
thority, and ready to exert that authority without the aid of the army
of volunteers whom the governor of Oregon had called out and thrust
into the field, then it was that these papers in Oregon were lavish
with abuse of the general and the regular army; and the legislature
of that Territory, as an everlasting monument to its members, passed

Cocwic

104 TOPOOEAPHIOAL UEUOIB OF THE

a memorial requesting the President to recall General Wool from the
commaud; and this, too, while be was personally superintending, and
in the very act of devising those judicious means which wilt be shown
in the sequel did give defence to the frontier uettlements and termi-
nated hostilities.

The governor of Oregon forwarded this memorial to the President;
but finding that no action was taken upon it, the governor afterwards
sent hie approval of the memorial, and requested again the recall of
the genera], but with as little effect as before. I venture to say a
more unjust document never emanated from a legislative body. I
will not pollute this paper with its contents, except to quote one
passage, which runs, "we [the memorialists] are compelled to say
that General Wool has hitherto remained inactive, and has refused to
send the United States troops to the relief of the volunteers, or to
supply them with arms and ammunition in time of need."

The first point of this accusation is totally refuted by what I have
already detailed in relation to the action of GeneraJ Wool and the
troops under hia command.

The second point gives us the key to the policy of the governor's
plan; it leaves one to infer that it consisted in using the regulars as
"hewers of wood and drawers of water;" in short, to play second to
the volunteers who would not serve under United States officers, but
would have these and the soldiers serve under the volunteers; in other
words, for carrying on the war, the plan of the governor of a Territory
contemplated making the President' s military commander of a depart-
ment and his troops subservient to territorial executive inBnence.

In relation to the third point, "refusing to supply the volunteers
with arms and ammunition," the answer is, that the volunteers had
been supplied with arms and ammunition from the United States depot
at Fort Vancouver by the storekeeper, who, by so doing, acted con-
trary to law made and provided; and it was to this law that the
general had reference when he declined to send artillery to Colonel
Nesmith.

In this remarkable legislative memorial we have the best possible
evidence to show that the commanding general's measures for restoring
peace and suppressing hostilities were very much in the way of what
has been alleged of the designs which animated the zeal of some of
the officers and of the advocates of the governor's northern volunteer
army, whose origin, organization, and acts, in some measure, have
been explained.

The country and the War Department have reason to congratulate
themselves on having one in command of the department capable and
bold enough, while performing his military duties, to prevent them
from being perverted at so critical a juncture of affairs in that quarter
to other than the legitimate objects of the honor and trust confided
in him.

The President did not see fit to recall his general, and leave the
military operations of the United States army in the handa of the
executive of Oregon ; and General Wool continued to pursue the even

n,g:,.ndtyC00glc

DEPASTHEHT OF THE PACIFIC. 105

tenor of his way, quite undisturbed by the petulancy of the Oregon
legislature, of the members of whom it may be said truly that in this
memorial they exhibit themselves as an apt illustration of the fact
that the people of a colony, after all, are but children of the home
government.

In his report of the 3d December, 1855, the Hon, Secretary of
War, in alluding to these volunteers, says: "And it is hoped that
their continuance in the military service, to the great interruption of
their ordinary pursuits, will be limited to the shortest possible dura-
tion by the arrival of reinforcements, which have been ordered to
the regular troops of that department."

"In regard to what volunteer reinforcements to the regular troops
may be necessary, this is a matter which must be necessarily left to the
military commander in the department of the Pacific, who has repaired
to the theatre of hostilities."

After the foregoing gentle hints to his excellency of Oregon, it
might have been supposed his northern army of volunteers would
have been disbanded; not so, however. The governor still kept them
in their winter quarters in the Walla-Walla valley, and, instead of
limiting their time to the "shortest possible," found it more con-
sistent with his own plan to extend their services to the longest possi-
ble duration.

On the 21st December T. B. Cornelius w&s made colonel of the
volunteers, after which, in February, his command was increased by
four companies, making it now one regiment, numbering about 650
persons.

The governor of Oregon took up his headquarters at Fort Dalles
on the 15th February, whence he issued his commands. Whether ho
consulted on the present occasion that ' ' vigilant officer of the efficient
4th infantry," by whose information the governor professes to have
been influenced on a former occasion, I will not pretend to say. It
seems to have been here that he planned a spring campaign for his
volunteers, and directed Colonel Cornelius to follow it. The sapient
governor presumed to know that the "main body of the Indians
were between the Snake and Felouse rivers, on the south side of the
Columbia, and it was there that they might he drawn into a pitched
battle," (map 21.)

The ambition of Colonel Cornelius was stimulated by being urged
to open the campaign and conquer the Indians before the United
States troops could take the field, which the governor says, "I antici-
pate will be about the middle of April, and confidently expect, before
that time, the volunteers will have achieved the purpose for which
they were called out."

His excellency refers to his admirable organization of the staflF, who
would furnish the colonel with ample supplies, &c.

The new colonel, obedient to the governor's orders, begins to shell
bis volunteers out of their comfortable winter quarters as early as
the 9th of March, determined to anticipate the regulars. I have
carefully studied the colonel's report of this campaign, and find that

ii,Cooc^lc

106 TOPoaaAPHicAL ueuois of the

from the 9th of March to the 2d of April they went groping along'
the lower parts of the Snake, Pelonse, and Yakama rivers, occasion-
ally killing a straggling Indian, but without finding the "main body
of Indians" which the governor had said were there. Colonel
Cornelias reports that there were no " manifestations that the country
had been occupied during the past winter by any large body of
Indians."

Daring this campaign the volunteers were reduced to the strait of
living on horse fieah, the governor's boasted comminaariat having
failed to supply them, and, alas, discontent aroae among the volun-
teers. Indeed, they were so much reduced in means of living and
in horses, that on the 30th of March the colonel ordered part of hie
command to Port Dallea, via the south side of the Columbia, and him-
Belf, with the other portion, proceeded through the Yakama country,
via the north side, towards the fort, intending, as he said, to scour the
Klikatat valley. And thua this campaign ended in perfect nullity;
and all will agree with the governor in his asaertion that "the wisdom
of his plana it remains for time to vindicate."

On the 1 1th of January, 1856, the mail ateamer brought to Gleneral
Wool, then at Fort Vancouver, important despatches in reference to
the threatened Indian hoetilities (already referred to) in the southeast
part of California, and the pleaaing information of the arrival of the
9th regiment of infantry at San Prascisco to reinforce his department.
Orders had been issued previously for the disposition of this regiment.
The despatches were of auch a nature as to make it necessary for him
to return to Benicia to give his personal attention to the wanta of the
southern portion of his command, not only in California, but in
southern Oregon likewise. Accordingly the general left Fort Van-
couver the same night, (11th January, ) ami on his way passed the
colonel's (Wright' a) portion of the 9th infantry going up to take post
temporarily at Fort Vancouver, and met the other portion, under
Lieutenant Colonel Casey, which was to operate in Puget's Sound.
A personal interview was bad by the general, on the Pacific ocean,
■with the lieutenant colonel, to whom orders were given.

The last report from Captain Keyes had informed the general that,
"in the region of Puget'a Sound, there were not to exceed 200 war-
riors in arms against the whites."

The general reports, headquarters Benicia, January 19, 1856 :

" Yoa will perceive that I have returned, after being ice-bound
three weeka. The severity of the season haa cut off all communica-
tion with Fort Dalles. Owing to the snow on the Cascade moantaina
there is no route during the winter to that post other than by the
Columbia; and that, for several weeks past, has been frozen over as
low down as St. Helen's; it is, however, now open to Fort Vancouver.
The 9th infantry has passed on to Port Vancouver and Paget'a Sound;
the colonel with eight companies to the former, and the lieutenant
colonel with two companies to the latter. Captain Ord' a company 3d
artillery is ordered to return, to be sent, if necessary, to the Colorado,
where on Indian war is threatened. I shall also order Captain Keyea'

ii,Cooc^lc

DGPABTHENT OP TEE PACIFIC. 107

company to return from the Puget's Sound district, for the same desti-
nation, if it should become necessary.

" With the 9th and 4th infantry I have no donbt of being able, in
a short time after we can take the field, to terminate the war in the
north and in soathern Oregon, unless the crusade of the governor of
Oregon against Indians inhabiting Washington Territory should pre-
vent. By sending his volunteers against the Walla-Wallas, who had
not made open war against the whites, he has added several tribes to
the ranks of the enemy."

It will be perceived that Colonel George Wright and Lieutenant
Colonel Silas Casey, of the 9th infantry, were now in command, the
former in the Columbia River district, and the latter in the Puget's
Sound district.

On the return of Governor Stevens to his capital, Olympia, January
19, he says : "In obedience to my own convictions of duty, and in
response to the sentiments of this entire community, I issued my
proclamation calling for six companies of volunteers for the defence
of the Sound, and three companies to operate east of the Cascades,
Ac, * * Since my arrival the town of Seattle has been attacked,"
&c. * *

Previously to Casey's taking the command, the Indians suddenly
appeared in the woods immediately back of and fired upon that town.
There were guarding it at the time one company of volunteers and
the sloop-of-war Decatur. There were probably as many whites in
the village as there were attacking Indians. It was reported that by
the Decatur's guns 36 Indians were killed and 35 wounded, and
that the hostiles numbered all the way from 300 up to 1, 500. Sab-
sequent investigations, however, showed that they only numbered
70 to 75, and that there was no proof of one being killed. The
Indians had secreted themselves behind trees and logs before firing,
and, as they were not charged, there they remained till the sport
became stale, and then deliberately walked awa}'.

At this time the inhabitants of Puget's Sound were in a straitened .
condition indeed; the whole country from Green river south to within
five miles of Fort Steilacoom, had been conquered, and was occupied
by hostile Indians.

Lieutenant Colonel Casey at once commenced his work, by opening
a communication from the fort to Mnckleshoot prairie, where he es-
tablished a block -house.

On or about the 27th February the principal chief, Eanasket, of the
hostiles was shot by a sentinel (Private Kehl, D company, 9th in-
fantry,) while endeavoring, in the night, with four others, to steal
into Lieutenant Colonel Casey's camp. He was the most savage of
all the chiefs.

~ On the morning of Ist March s detachment under Lieutenant
Kautz, at the crossing of White river, about two miles above Uuckle-
shoot prairie, (map 16,) found himself cut off from camp byabodyof
Indians in his rear. The lieutenant determined to hold his position,
and despatched a note to camp, to apprise the commanding ofBcer,
and put hia men for safety behind drift wood. About (_rVd9ck ft

108 TOPOGRAPHICAL MEMOIR OF THE

party of IndiaQs, from the other aide of the river, fired into Kautz's
party and wounded two of his men. At 2 o'clock, Captain Kejea'
command appeared on the left bank, and found Kautz's party, under
cover of dritl wood, engaged with the Indiaoe on both banka.

Eeyes drove the Indiana who were od the left bank, then returned
to a point above, crossed his command over the river by fording, and
then charged the main body from their position behind logs and trees,
on Eaatz's side of the river, and completely routed them; then wheel-
ing his company to the left, deployed as skirmishers, and charged on
through tbo woods, sending orders to Kautz, as soon as they ahoold
arrive opposite bis poBition, to leave his drift and join, which be did;
and the two bodies of troops all moved forward rapidly, and drove
the Indians from the point of woods they occupied below. The In-
dians continued to retreat and the troops to pursue for two miles, till
they reached the bluff which borders the river bottom, at the top of
which they made a stand.

The bluff is 150 feet high, with a slope of about 45°, and free from
underbrush, with but few trees. As tlio troops advanced the Indians
taunted and defied them to come on, with many vile epithets. The
troops rushed forward, routed, and completely dispersed the enemy.
Here the action terminated at dark, after five hours' duration.

Keyes' loss was one killed, nine wounded, including Lieutenant
£autz. The loss on the part of the Indians could not be ascertained.
The number of Indians engaged was about 200, and the troopa num-
bered 116, officers included.

This was an important action; it broke the spirits of the Indians;
it was the opinion that all the hostile warriors, except their sentinek
who were guarding trails, were present. Captain Keyes, in his re-
port, says : "We have now the good fortune of having completely
routed the Indians; our next difficulty will be to find them."

On 5th March Captain Keyes was sent, with 120 men, to attack

their main camp, which was found to be from Muckleshoot about six

. miles towardB Porter's prairie, iu the middle of a swamp, defended

by a breastwork of logs with loop holes, but the Indians had tied the

night before.

After their defeat by Keyes, the Indians in Puget's Sound district
began to scatter in small parties, taking to their hiding places.

On the 2l8t February the general notified Lieutenant Colonel
Casey of his intention to reinforce him with two companies.

We must now leave the Puget' 8 Sound district for a while, and pass
to the Columbia river operations.

On the 29th January, 1856, the general commanding the depart-
meut directed Colonel Wright, 9th infantry, as follows:

"As soon as the season will permit, preparatory to operations iu
the Indian country eaet and north of the Cascade mountains, yoa
will establish the headquarters of your regiment at Fort Dalles,
where all the troops intended for said country will be concentrated.

"The points which I intend as the base of operations are the
Selah fishery, on the Yakama river, (map 19,) and some point in
the neighborhood of Fort Walla- Walla, (map 20.) It ifl-mj intention

DGPARTUENT OF THE PACIFIC. 109

to establish a pennanent post in this region at the most eligible point
for controlling the surrounding Indian tribes.

"Between Fort Dallea and Selah fishery an intermediate post
with one company may be necessary to prevent the Yakamaa from
taking fish on the tributaries of the Yakama and Columbia. Here-
with you will receive a memoir and sketches (17, 18, 19, 20, 21,) by
Captain Cram, chief of the Topographical Engineers, of the country
in which your command will be required to operate. I would recom-
mend it to your attentive perusal. From this you will perceive it is
100 miles from Fort Dalles to Selah fishery, and 70 from the Fort to
the At-ah-nam mission. This latter position may be important as
tbe intermediate post between the Dalles and the fishery.

"From Fort Dalles to Fort Walla- Walla it is 142 miles, and from
the latter place to Selah fishery it is 95 miles by the road to Fort
Steilacoom. With boats to cross the Columbia, your forces at either
point could be in a few days concentrated.

"Expeditions sbonld be prepared at the earliest moment, that is,
as soon as grass can be obtained for the animals for Walla- Walla and
the Selah fishery. As the snow will not probably allow the expe-
dition to the latter so early by three or four weeks, the one to the
former will be undertaken as soon as the season will permit with four
or five companies and three howitzers; it is desirable this expedition
should be conducted with reference to selecting a proper position for
a post, and to ascertain the feelings and dispositions of the several
tribes in that section of country; I do not believe they will continue
the war a great while. The occupation of the country between the
Walla- Walla, Touchet, and Snake rivers, and the opposite side of the
Columbia, (map 21,} will very soon bring those tribes to terms. The
occupation at tbe proper time of the Yakama country, (map 17,) from
the At-ab-nsm mission, and that on the Yakama river above and
below the Selah fishery, will compel the Yakamas, I think, to sue for
peace or abandon their country. ,

" By the memoir of Captain Cram, herewith sent, yon will perceive
that obstacles on the routes to both the Fishery and Walla- Walla
will require your attention. On fitting out your expeditions pioneer
parties should be organized."

Such, in substance, were the instructions despatched to Colonel
Wright, 20th January, for his guidance in the coming operations,
which were to be commenced as soon as the Colombia should be open
to Fort Dalles.

In the topographical memoir of Captain Cram particular mention
had been made of the importance in military operations of the Cas-
cades, 45 miles above Fort Vancouver, (map 18.) Major Rains had
erected s block-house here and garrisoned it with one sergeant and
ten men in the preceding autumn.

On the 6th February the general received a requisition from the
superintendent of Indian afi'airs in Oregon for one company of
regulars, to be stationed in the Cayuse Indian country, to protect the
friendly Caynses from the volunteers, accompanying the requisition
with a representation from high authority as follows; ^ • r

110 TOFOGKAFEICAL UEUOIB OF TEE

"JamiarylS, th« voIunteerB, without diBciplioe, withoat order, and
eimilar to the madmen of the revolution, menace us with death every
day; they have already despoiled of their provisions the inhabitants
of this country and the Indiana who have so nobly followed the advice
to remain faithful friends of the Americana.

' ' To-day these eame volunteers are not yet satisfied with rapine and
injustice, and wish to take away the email remnant of aniinals and
provisions left. Every day they run off the horses of the friendly
Indians," * * * Ac.

The Cayuse reservation is on the Umatilla at the point marked
"Agency," map 20.

On the 7th February the general directed Colonel Wright as fol-
lows: "At the earliest moment practicable, agreeably to previous
instructions, you will send four companies to the Walla- Walla country.
Should, you however, find, on the arrival of the troops in the Cayuse
country, that a company is necessary to give protection to the Cayuse
Indians from the volunteers, you will leave a company there with a
howitzer and ammunition."

On the 6th of March the Jndians on the north aide of the CoJambiB^
probably a foraging party of half- starved Klikatats, made a descent on
Joeelyn's farm, at the mouth of the White Salmon, about halfway
between the Cascades and Fort Dalles, and robbed it of half the stock.
On the receipt of this information Colonel Wright despatched Liea-
tenant Colonel Steptoe with two companies to that point, from Fort
Vancouver, and followed on the 7th and 8th with all the troops des-
tined for aervice in the Indian country above Fort Vancouver, and
himself arrived at Fort Dalles 11th March.

The colonel posted a company temporarily at the head of the Cas-
cadra.

After giving the final instmctions at Crescent City and PortOrford
in relation to the operations described in chapter YI, in the Rt^ne
river field of war, the general then proceeded to Columbia Kiver dis-
trict with the following members of his staff : Lieutenants Bonnycastle
and Arnold, aide-de-camp; Captain Cram and Lieutenant Mendel),
Topographical Engineera, and Assistant Surgeon Milhau, and arrived
at Fort Vancouver on the night of 10th March.

Here, remaining long enough to receive reports and to give the
necessary instructions to Colonel Wright, who was now on his way to
Fort Dalles, the general decided to take two companies of the 9th
infantry, (Fletcher's and Dent's,) which he placed under Major Gar-
nett, of the same regiment, to reinforce the troops in the Puget'a Sound
district, and himself to proceed to Fort Steilacoom.

These were left to be under the immediate orders of Colonel Wright :
one company 4th infantry at Port Vancouver, and one company and
part of another of dragoons; one company 3d artillery, eight compa-
nies infantry, at the Cascades, and above at Fort Dalles; when the
general departed with Oarnett's reinforcement.

On the 14th March thia reinforcement arrived at Fort Steilacoom,
and immediately entered the field. The general remained here to
have an interview with Lieutenant Colonel Casey, inspect, and issiie

iX.ooqIc

DEPABTMEHT OF TOE Pi.CIFIC. Ill

all needfal ordore for future operationa, aaBigning Lieutenant MendoH
as the topographical engineer in this field, and directing Captain
Cram to make a reconnaissance along the waters of the Straits of Fuca,
the Cape Flattery Indian coast, and return with despatches for the
Rogue river field, thence to Benicia. Aaaistant Surgeon Milhauwas
sent down to Crescent City for duty in this field.

At this time, in the Puget' s Sound field, Lieutenant Colonel Casey had
six companies infantry and one company artillery of regulars under
tia command. In this field also were thirteen to seventeen compa-
nies, or skeletons of companies, of Washington volunteers, under the
orders of the executive, stationed at certain points, but over these the
United States army officer commanding the district had no control
whatever, they not having been called out by him, but by the
governor.

On the 15th March the commanding officer of the district called
npon the executive of Washington for two companies of volunteers to
be mustered into the United States service to serve on foot. The
authority for the call was derived from the official report from the
Hon. Secretarj- of War, wherein he says the number of volunteers
to be called in to reinforce the regulars must be left to the judgment
of the military commander of the department Lieutenant Colonel
Casey informed the governor that with his present force of regulars
and the two companies of volunteers now called for, "I am of the
opinion that I should have a sufficient force to protect this frontier
without the aid of those volunteers now in this Territory,"

To this requisition his excellency replied the next day: "I will
state that the reqnisition will not be complied with. I do not consider
it expedient to change the plan of campaign nor the organization of
the troops so far as the volunteers are concerned."

On the 16th March the general, having given all necessary personal
attention to the Puget's Sound district, left Fort Steilacoom to return
to the scene of the Rogue river operations, and thence to Benicia,
where he arrived about the 22d March.

With his regulars Lieutenant Colonel Casey took such active steps,
after the departure of the general, that rapid progress was soon made
iu hunting out the hiding places of the parties into which the main
body of hostiles was dispersed, however difficult of approach.

To Stuck prairie he sent an expedition, March 18, which attacked an
Indian village and captured several Indians; sent another expedition
with orders to attack a body supposed to be on BoiBt; creek ; organized
an expedition against the Indians on Dwamieh lake, and requested
Captain Swartwout, of the steamer Massachusetts, to co-operate with
his boats, but be declined; after that these Indians came in.

The companies of Dent, Pickett, and Fletcher, under Major Gar-
nett, made an expedition to Meridian prairie May 13, and afterwards
scouted the country along Green and Cedar rivera. These scouts
were very active in hunting for parties of Indians.

On the 19th May Lieutenant Colonel Casey reported the war west
of the Cascade range of mountains at an end; and, on the 2lBt May,
Major Garnett's command of two companies of the 9th were ordered

Xiocwic

112 TOPOOBAPmCAL UEHOIR OF THE

to join Colonel Wright, who was operating in the Colombia River
district, on the east side of the Cascade range, to which field we shall
now turn our attention.

On the 26th of March last Colonel Wright, in command, left Fort
DaJIea for the Walla-Walla country, having withdrawn from the Cas-
cades all the defence except the Borgeant and nine men, in charge of
the block-house, and encamped five miles beyond Fort Dalles. He
was now fifty miles to the east of the Cascades, (map 19.)

On the aame day (March 26, 1866,} the Indians attacked the Cas-
cades and took the place, all but the block>house, which was gal-
lantly defended by Sergeant Kelly with eight men, who had one
killed and two wounded.

On the same night an express reached Colonel Wright, who imme-
diately countermarched; also one reached Fort Yancourer, from which
Lieutenant Sheridan, 4th infantry, with a detachment, was sent up,
which reached the foot of the Cascades 9 o'clock the morning of the
2Ttli and engaged the Indians; bat, finding them too strong, drew off
and sent to Fort Vancouver for a reinforcement.

On the morning of the * 8th Colonel Wright, with a force of 250
rank and file, landed under the fire from the Indians at the head of
the Cascades and drove them. Then a detachment advanced under
Brevet Lieutenant Colonel Steptoe, major 9th infantry, and drove the
Indians, relieved the block-house, and was joined bv Lieutenant
Sheridan's detachment, and goon retook the whole line (about 4^
miles) of the Cascades. They lost three killed and had three wounded,
in course of the 26th, 27th, and 28th, in this affair. Besides these,
the Indians killed thirteen white men, women, and children, in their
attack on the Cascades the first day. Several Indians were killed by
the troops on this occasion.

It appeared in evidence that the chief, Chimoneth, and eight of
his men, supposed to be friendly, of the band who iived there, were
guilty of co-operating in this attack on the Cascades; these were
executed. It subsequently appeared that the Klikatats were the
principal actors in this attack, which was instigated by Karaiakin,
chief of the Yakamas, whose plan was to take the Cascades, destroy
the steamers above and below, and sweep the Columbia of every
white inhabitant.

Colonel Wright built two block-houses — one at the foot and one at
the head of the Cascades — which, witb the small garrison left in them,
afforded ample protection afterwards.

About the 6th of April Oeneral Wool, accompanied by bis aid.
Lieutenant Arnold, Lieutenants Colonel Nauman and Ripley, left Be-
nicia for the Colombia River district, and the genera! ascended to Fort
Dalles, arriving there in time to give Colonel Wright further ini'truc-
tiona in reference to operations in the Yakama country, which con-
eisted in moving promptly an expedition of five companies into that
field from Fort Dalles, (map 17.)

On the 28th of April this command had crossed the Columbia from
Fort Dalles. Previous to starting, Colonel Wright addressed tho
governor of Oregon as follows:

n,g:,.ndtyC00glc

DEPABTMEarr OF TEE! PACITIC. 113

"I am muoh embarraased by these wanton attacks of the Oregon
volunteers on the friendly Indians. Under these circamst&nces, and
preaaming that you still retain authority over the Oregon volunteers,
although at present beyond yonr territorial jurisdiction, I have to
request that thdy may be withdrawn from the country on the north
side of the Columbia river."

Frequent official letters had been received from the Indian agents
in charge of these friendly Indians, as also of those towards the
Walla- Walla, complaining of the outrf^ee committed by the volan-
teers, (Nesmith'a command,) and asking for regular troops to be sta-
tioned in certain places to protect them against the volunteers.

Colonel Wright had advanced into the Takama country, and was
encamped on t£e Natchess river 18th May, (map 17.) At that time
tJie river wae so high that it was impassable. Qn the opposite (north)
side the main body of the Yakama Indians were collected in very
considerable numbers, expressing a desire for peace. To this end
the talks were held.

The chiefs, Ow-hi and Te-i-as, had promised on the 11th June to
come in with their people in five days. Since that time, up to the
18th June, no Indians, however, had come in, and Colonel Wright
bad no information of their whereabouts, all having left the north
side of the river.

A bridge having been completed on the morning of the 18th June,
Colonel Wright crossed the Natchess with eight companies — ISO*
rank and file — and marched north over a broken country and en-
camped on the Wenass river. Lieutenant Colonel Steptoe was left,
with three companies, to occupy Fort Natchess. On 20th June
Colonel Wright was encamped in the Kittetas valley without having
found the Indians. He says: "I do not despair of ultimately reducing
these Indians to sue for peace. I believe they really desire it, and
I must find out what outside influence is operating to keep them from
coming in."

The governor of Washington had organized a battalion of volun-
teers, under Lieutenant Colonel B. F. Shaw, which left Camp Kont-
gomery (map 16) 12th June, passed through Natchess Pass, and
encamped 20th June on the Wenass, (map 17.) It will be perceived
that this battalion of volunteers entered the TakaUa conntryin the
rear of Colonel Wright's command, just after they had left the Wenass
for the north.

Colonel Wright had, before Shaw started, declined all co-operation
with these volunteers, and informed him (Shaw) that he had en ample
force of regulars for operations in the Yakama country.

The probability is, that the knowledge of the approach of Shaw's
battalion had caused the Indians to disperse and deterred them
from coming in as they had agreed. Colonel Wright saysr "I have
not overlooked, from the first, the evident determination of the vol-
unteers to co-operate with the regular forces to bring this war to
a close, and I have steadily resisted all advances. My efforts have
been retarded but not defeated by what was done."

On the 18th July, 1856, Colonel Wright reports, " that^ notwith-
H.E:i.Doc:il4— 8 rT.OOglc

114 TOPOQBAPHICAL UEMOIS OF TOE

etandin^ the numerous dlfficultlGs and embarrasBmente I have encoun-
tered, the war in this country is closed. Wa have penetrated the
most remote hiding-places of the enemy and forced him to ask for
mercy. Deserted by their chiefs, Kamoakin and Ow-hi; and perse-
veringly pursued by our troops, the Indians have no other course left
them but to surrender. So long as troops simply moved throi^h
their country and retired it had little effect; the Indians were gen-
erally the gainers by it. But a steady advance over their whole
country, rendering it necessary to move their stock and families, had
a different cfTect, understanding, as they do, that the country is to be
permanently occupied."

From the 16th to the 30th June the governor of Washington was
at Fort Dalles, giving his orders for the operation of the volunteers.
He ordered Shaw, 20th June, to move his battalion from the Winass
and "push on to Walla-Walla, unite his force with that moving from
the DEdles, and take the command of the whole." The force at the
Dalles moved June 25. Both columns contained 360 enlisted men
and about 100 employes. These volunteers arrived at Mill Creek,
Walla-Walla valley, on 8th July.

On the 2d Augunt the general commanding the department of the
Pacific issued the following order to Colonel Wright: "The general
congratulates you on your successful termination of the war with the
Yakamas and Klikitats. * • * The general desires yon, \vith the
least possible delay, to conduct an expedition into the Wella-Walla
country. Having arranged all difficulties with those tribes, t^en
Establish the post, as before directed, in tho Walla-Walla country.
No emigrants or other whites, except the Hudson Bay Company, or
persons having ceded rights from the Indians, will be permitted
to settle or remain in the Indian country or on land not ceded by
treaty, confirmed by the Senate, ftnd approved by the Preaideot of
the United States, excepting the miners at the Colville mines. These
will be notified, however, that if they interfere with the Indians or
their squaws they will be punished and sent out of the country. It
appears that Colonel Shaw, from Puget's Sound, with his volunteers,
has gone to the Walla-W^la country. Colonel Wright will order
them out of the country by way of Fort Dalles. If they do not go
immediately they will be arrested, disarmed, and sent out."

Lieutenant Colonel Steptoe, with four companies, started from Fort
Dalles 20th August I'or the Walla- Walla valley, end reached there
about the last of the month. Governor Stevens had preceded faim.

On the 14th August the governor reportfl to the Secretary of War:
"I expressed the opinion that the indecisive and procrastinatiDg
course pursuing and pursued in the Yakama country had brought or
nearly brought about a general combination of tribes eastward. That
combination I hoped to break up. The Walla- Walla expedition had
been completely successful. Colonel Shaw learning there was a large
force of hostiles in the Grand Bond, determined to attack tfaem.
Moving in the night of 14th July he struck them on the 17th, and
after a running fight of 15 miles he entirely defeated tfaem, captured
a large number of animals, destroyed nearly all of their provisions.

DEPikBTUEin OF THE PACIFIC. ll^

and also got posBeBsion of about 100 pounds of their ammunitioD. Th©
I0B8 of the enemy was at least 40 killed on the field of battle.

"I push forward in person to Walla- Walla to-morrow to meet the
Indians and establish relations of friendship with the tribes generally,
and especially those struck by Lieut. Col. Shaw."

Now, by comparing the dates of tbe operations of Col. Wright in
the Takama country, it will be perceived how unjust is tbe reflection
made upon him by the executive of Washington Territory, for Col.
Wright's force? had advanced into and had the occupancy of that
conntry six weeks at least before the governor's volunteers started
for the same. With regard to the boasted strike of Col. Shaw upon
the Indians at Grand Rond, which his excellency seems to take
pleasure in reporting to the Secretary of War, let us here record what
"Howlish Wampum," the Caynse chief, eays about it. He says:
"When Col. Shaw arrived in this valley I went to see him. Col.
Shaw said to me that he had come to make peace ; that he had thrown
his arms behind him. I told him niy heart was made happy. Soon
after Col. Shaw marched for the Grand Rond. The Cayuses were
encamped there — that is, the women, old men, and children, with a
few of the young men. The chiefs were absent when Col. Shaw
approached. We sent Captain 'John,' a friendly Nez Percfi, to
talk with the Caynsee. No persons authorized to talk were in the
Cayuse camp. The women and children became alarmed at the
advance of the volunteers, and commenced packing up. The volun-
teers then charged tbe camp and killed several old men, women and
children."

With regard to the credibility of this chief I have only to say, he
is the man the Oregon volunteers produced as their witness in justiB-
cation of their acts in the Walla- Walla valley.

In reference to the part of his report where the governor says,
"he goes forward to the Walla^Walla to meet the Indians and estab-
lish relations of friendship with the tribes generally," we shall see
that his mission was anything but successful, and it was not his plan
of military operations after all that closed the war in that valley.

This plan was promulgated to the Secretary of War, dated May 23,
1856, in which it is said: "I cannot too strongly urge the policy of
accumulating supplies in the Yakama country and in the Walla- Walla,
in readiness to wage a winter campaign. With proper preparation a
winter campaign can be waged and the war ended."

A small pack train despatched by George Stevens for Walla- Walla,
in advance of Steptoe's command, was captured by Indians, said to
have been of the tribes attacked by Shaw at the Grand Rond, in July.
The governor, as superintendent of Indian affairs, was tuking up a
supply of provisions and presents for the Indians, with whom he ex-
pected to hold a council about the time of the arrival of Steptoe's
command.

On the 15th September this superintendent of Indian affairs was
holding a council in tbe immediate neighborhood of Col. Steptoe's
camp, on mill creek. There were some four thousand present, em^
bracing the Nez Percys, Caynses, Walla-Wallas, and thebands of

118 TOPOGBAPHICAL HBUOIB OF THE

Kamiakin, Schloom, aad Ow-hi Yakamas. The Indians viaited CoL
Steptoe is pereon, and lie was quite succeBsful in restoring their cod-
fidence in the white people, which was much shaken hf the recent
conduct of the volunteers, who now had been disbanded and were ea
route for Fort Dalles.

On the 18th September, Steptoe reports: "I attended the couscil
yesterday, and was satisfied Governor Stevens had effected no good
bj assembling the tribes. The governor admitted to me to-day he
bad failed to accomplish what he had hoped, but he charged his failure
to want of support from the regnlar army."

"I cannot help feeling gratified that the treaty of Walla- Walla has
not yet been ratified, because it is plain to me that an attempt to
execute it now would be attended by resistance at once on the part
of most of the Nez Percys, and ultimately by combined resistance
among the eurroanding tribes. I must confess that, in my judgment,
it is unfortunate that Gtovernor Stevens should have appointed tins
as the time for holding his council," &c.

After the council had broken np, 19th September, the Nez Percea
had most of them started for their homes, and the governor's party
for Fort Dalles. By the time the latter had gone three miles fronL
Steptoe's camp, his party was attacked, and he sent back a note to
Steptoe for aid, saying "he had 250 Indians in front." This note
was received by Steptoe at sunset, 19th. The colonel su^ested to
the governor to fall back with his party to his camp, and they would
tiien go to the Umatilla, to which he would move his camp, aod where
he could give protection. To this the governor replied in another
note; "It is impossible for me to move back withoat assistance. We
have around us 300 Indians. Send yoar drago<me and a portion of
Fletcher's company as soon as possible, and I will go back to your
camp." This was received by Steptoe at 11 o'clock that night, and
be immediately sent a force with orders "to attack the Indians sor-
rounding the governor's party, and bring it to camp." This duty
was handsomely performed by the regulars. The party was rescued
and safely brought to camp by 4 o'clock the next morning. On the
return they were assailed, but the IndiaiiS were promptly driven by
the regulars without sustaining any loss. The rescuing party vaa
officered by Lieuta. Davidson and Wickliffe.

A block house was erected at Mill creek, and the remainder of the
command moved to the Umatilla, where grass could be obtained for
the animals, that about the creek having been burnt by the Indians.

On the 19th October the general directed Gol. Wright to proceed
in person to the Walla-Walla as soon as possible, to attend to the
establishment of the post, as before directed, in that vicinity, and
sent Captain (Brevet Major) Wyse's company, 3d artillery, to rein-
force his command, which took post at the Cascades.

"It is also of the highest importance that you, the senior officer,
(the chief man,) should see and talk with all the tribes in that region,
in order to ascertain their wants, feelings and disposition towards the
whites. Warned by what has occurred, the general trusts you will
be on your guard against the whites, and adopt the moat prompt and

Xiocwic

DlEPABTMEirr OF THE PACIFIO. IIT

vigorodB measares to crash the enemy before they have time to com-
bine for resietance, check the war, and prevent further trouble by
Jceeping the whites out of the Indian country."

On the 30th and Slst October Colonel Wright reports from the
Walla- Walla valley as follows: " I have selected this position on Kill
creek, 6 miles above its junction with the Walla- Walla river, for the
■post"

After the council of Governor Stevens (in September) the Indians
dispersed, and it has been a work of great difficulty to communicate
with them. Many are so remote that it ia impossible to communicate
"with them. I have, however, in my camp, about 40. I have had
several talks with them; all very satisfactory. From appearances I
-apprehend no serious difficulties with any of these Indians. The
council of Governor Stevens was unfortunate; the Indians, many of
them, are hostile to him. They are opposed to the Walla-Walla
treaty of 1855, which be made with them, and wilt never be contented
-nntil it is restored to them. I am folly satisfied it should not be con-
firmed.

' ' On assembling in council yesterday, I stated to them, that I wished
to have a fuU and frank expression of their feelings and dispositions
iowards the whites; the causes which brought on the war, &c. There
were present the chiefs Bed Wolf, Eagle from the Light, Howlish
Wampum, Tinton Metey, Stickees, two sonsof Looking-Glass, besidea
several sub-chiefs and headmen of Xez Forces and Gayuse nations."

The chiefs said, ' ' it was Laywer and his people who sold the country
«t the Walla- Walla treaty of 1855, our hearts have been crying ever
-since, we did not wish to sell our lands. The hearts of the Indians
were bad from that time. The first drop of blood that was shed was
-caused by that treaty."

"The speeches of all the chiefs amounted to the same as this. They
all denounced the treaty; both the Caynses and Nez Perc^ were very
«evere on Lawyer and his party, whom they accuse of having been
brought over."

Eagle of the Light was sent by Looking Glass, the war chief of the
Sez Percys, as his representative, whose views in relation to the treaty
were the same as the other chiefs, and he attributed to it the first
shedding of blood. He said, "he understood that Colonel Wright
•came here to straighten out things, and wished to know whether the
bloody cloth was to be washed and made white, and all that is past
'forgotten, or whether the war was to be continued between the whites
and red men. For his part he was for peace. He desired to see the
igood talk of the white chiefs and the Indian planted in good soil and
grow up tf^ether. He desired to live in peace and harmony with the
white people."

Colonel Wright replied : ' 'That the bloody cloth should be washed,
•not a spot should be left upon it. That the Great Spirit had created
'both the white and red men, and commanded us to 'love one another,'
that all past differences must be thrown behind ns, that the hatchet
must be buried, and that for the future perpetual friendship must
exist between us; that the good talk we had this day listened to should

118 TOFOOBAPMICAL UEUOIB OF THE

be planted and grow up in our hearts and drive away all bad feelings,
and preserve peace and friendabip between U8 forever. I told them
to put what I eaid in their hearts, and when they returned to their
homes to repeat it to all their friends."

Oolooel Wright reported the foregoing to the general, and adds:
"I am fally satisfied with all that has been said, peace and quiet can
easy be maintained. The Indians are perfectly satisfied with the
establiehmeot of a military post here. All they want is quiet and
protection. I muat express my decided opposition to the treaty of
Walla- Walla, and pray it may never be confirmed. All the chiefs in
this and the Yakama country whom I have seen are violently opposed
to it. Give them back those treaties and no cause of war exists.
They proclaim that unfair means were used, whether so or not they
will not be contented until these treaties are restored."

On hearing of what had been done by Colonel WrigLt, the suporin-
tendent of Indian affairs for Washington says to the Secretary of War.
"I now make the direct issue with Colonel Wright that he has made
a concession to the Indians which he had no right to make, that by so
doing he has done nothing but to get the semblance of a peace, and
that by his acts he has in a measure weakened the influence of the
department having the authority to make treaties and having the
charge of the friendly Indians. He ha?, in my judgment, abandoned
his own duty, which was to reduce the Indians to submission, and has
trenched upon and usurped a portion of mine."

The United States Steamer Massasuchetts, Captain Swartwout, at
the request of Lieutenant Colonel Casey, pursued a band of northern
Indians of about IIT In number, who had come down in their war
canoes, and depredated at various points. They were fonnd November
20, encamped at Fort Gamble, and after giving them battle they were
received on board and transported to Victoria, under a promise that
they would never return again. About 27 of the Indiana were killed
and atl their canoes and property destroyed before they would sur-
render.

This descent of the northern Indians was more for the purpose of
plundering the Paget' s Sound Indians than the whites. There was
no intention on their part U> war upon the whites. They bad before
been driven away from Steilacoom by the troops there, and bad been
worsted In a fight with some Indians on one of the reservations in the
Bound.

On the 18tb of December, 1856, the commanding general of the
department of the Pacific reported: "The mail has arrived from
Oregon, bringing the gratifying intelligence from Colonel Wright and
Lieat. Colonel Casey that all is peace and quiet in the two Territories,
Oregon and Washington.

"Under present arrangements, I don't believe that the war can be
renewed by the whites. The poets are well arranged to preserve
peace and to protect the inhabitants from any hostility on the part of
the Indians residing in the Territories."

n,g:,.ndtyC00glc

DEPARTHElfT OP THE PACIFIC.

X. — Military considerations in reference to the Calif ornia portion of the
D^xirtment (f the Pacific.

In the preceding chapter, IX, it has been said that while the troops
were actively engaged in sappreesing hostilities in the northern
portions of the department an Indian war was threatened in certain
portions of California.

The canses which led to this state of things, and the measnres taken
to meet the exigency, will be briefly narrated in the present chapter.

On the Colorado river, a bitter feud existed between the people of
two tribes which was constantly likely to break out into overt acta.
Brevet Lieut. Colonel Nanman, 3d artillery, was dispatched to Fort
Yuma in January, 1856, for the purpose of inquiring into the troublea
there apprehended. His mission was productive of good results; be
satisfied himself that there was no combination between these tribes
and those further north. The report of Lieutenant Colonel Naumon
gives some practical suggestions of importance in reference to the
appointment of an Indian agent to reside permanently at Fort Yuma,
for the purpose of controlling these Indians.

In the month of January, 1856, Captain Burton, 3d artillery, com-
manding at San Diego, was instructed to visit the tribes in the
neighborhood with a command from his post, with a view of restoring
quiet among them, and ascertaining the causes of the difficulties,
(map 7.)

This expedition resulted favorably, and it appeared that the en-
croachment of the whites upon the lands set apart by treaty for the
Indians, the neglect of the Indian agents to supply them with the
articles stipulated in the treaty, and the stealing of the cattle of the
whites, by some of the Indians, were the principal sources of the
apprehended outbreaks. Captain Burton became satisfied that the
principal chief of the Carvitla Indians had endeavored to form a com-
bination with the Mohaves and Yumas, for the purpose of attacking
the white settlements in this neighborhood, during the preceding
antamn, but failed; and the captain attributed the failure to the
prompt movement of the troops in the preceding November.

The Carvilla Indians occupy the country from San Gorgonia Pass
to the Arroyo Blanco, (map C.) Captain Burton proceeded to that
district in April, 1 856, and ascertained that the whites were in the
habit of encroaching on the grounds set apart for these people, and
that this, and the thefts of those Indians who were without food, were
the causes of the apprehended outbreaks; and he obtained evidence
of two leading Mormons of San Bernardino having, in the autumn of
1855, sent the following message to these Indians: "The Mormons
and Indians are friends; the Americans are the enemies of the
Mormons and Indians, and had hitherto driven both from the great
waters of the east."

It is also in evidence that Nathan C. Einney, bishop of the Mormon
church in San Bernardino, in the month of May, 1856, visited these
Indians and called them together and admonished them a»foltoin:

''' ' o

120 TOFOGBAFHICAIi UEHOIB OF THE

"The Americans are a bad people, were cot ChriBtiaos, and were
the enemies of the MormooB, and not to he rehed on or believed in
nowise, for the Americans are fools and devila; and that the Mormona
were Uie rulers of the country and not the Americans, and that be
(Bishop Kinney) proposed to gather the Indiana into the Mormon
settlement of San Bernardino, and there to maintain them; and that
the Mormons were not Ameiicana, but a different people; and that
he came to baptize the Indiana into the Mormon church."

There is other evidence to show that this aame bishop instmcted
the Indians to kill the whites who were not Mormons, and that he
would reward them with the cattle and horses of the whites.

To the judiciouB action of Captain Burton, under the ordera he
received from the general commanding the department, we are in a
great measure indebted for the peace we were afterwards permitted
to enjoy in that quarter.

Reports had been brought to the commanding general of the
department that the United States land aurveying parties in the
Mohave river district (map 6) had been attacked and several killed
by the Indians, and he was called upon to send a military force there
to protect the surveying parties.

On the 8th April, 1856, instmctions were issued to the command-
ing officer at Fort Tejon to send a company of dragoons from that
post into the Mohave river country; but when it was on the point
of starting a threatened outbreak, reported by the Indian agent of
the Tejon (St. Sebastian) reservation, (map 5,) made it expedient to
postpone the expedition and aend the troopa to the reaervation. In
the mean time it was ascertained that the United States land surveyors
who had been at work in the Mohave country were safe and the
Indians there were quiet.

On the Ist May, 1856, the commanding officer at Fort Miller re-
ported that in the Tulare valley, in thelatter part of April, "some
Indians had killed a cow belonging to a white man; some of the
citizens (about two-tbtrds) wished to demand the aggressors of the
chiefs, but the minority portion insisted npon punishing all the
Indians collectively, and for this purpose had organized themselTes
and gone in pursuit, but returned soon after with the report that
£00 warriors had made a stand. The next day these whites attacked
A friendly party of Indiana, who had remained neutral, and killed
«ix, wounded sever^, and the others dispersed. Another party of
friendly Indians shared a similar fate. From these facts, that officer
says: "The number of hostile Indians, therefore, encamped at the
head of the Tulare valley (map 5) may not be overrated."

It is due to the citizens to say that the ' ' war party of whites' ' was
'Only about one-third of the whole population; bntthe "war|)arty"
called upon the governor for aid, and he called on the comnubding
^officer of the department. In the mean time a detachment of regulars
from Fort Miller, under Lieutenant Livingston, 3d artillery, and one
from Fort Tejon, under Lieutenant Alston, 1st dragoons, had been
sent into the field of those disturbances.

The general caused the following reply to he sent to the governor:

I, Cookie

DEPASTHENT OF THE PACIFIO. 121

' ' DetachmeDta from both Fort Miller and Fort Tejon are now in the
field, aod do doubt would be able to preserve peace, were it not from
the determination of a few deeigniDg white men, as it wonld appear,
to wage a war of extermination against the Indiana. " No addition^
force of regulars can be sent to the Tulare at this time, nearly all
being now in the field c^ainst hostile Indians in Oregon and Washing-
ton, and in the northern part of California. • * » We have yet to
leam that the Indiana have strnck a blow against the whites in the
Tulare except in self defence; and the general is of the opinion that
the regular force in the sontheastern part of the State is sufficient to
protect th.6 aettlere from Indian aggressions, provided the frequent
murders and agressions on the part of the whites against the
Indians are checked before the latter are driven to combine in a
general war against the forroer."

The war party, however, obtained arms, and organized themselves
into companies ^f volunteers, and in two engagements were repolaed
by the Indiana, who had fortified themselves in a strong position.

On the 13tb May, 1S56, Lieutenant Livingston, having been
furnished with a howitzer, went with 20 regulars and about 30 volun-
teers to reconnoitre tbe position, and while so doing the lieutenant
became satisfied that an immediate attack would prove successful.
He accordingly turned their position, attacked them in fiank, and
drove them before him, killing many and destroying their camp and
provieions. This was near the "Four Greeks." After this tiie
Indians fled and dispersed in the recesses of the Sierra Nevada moun-
tains. The volunteers, the "war party" of the whites, soon became
tired and returned to their homes.

The activity of the regulars under Lieutenants Livingston and
Alston, put the inhabitants of the Tulare valley out of any further
danger.

The governor of California, much to his credit, in furnishing these
volunteers with the arms sent him by General Wool for their own
defence, directed them to incur no expense except for the transpor-
tation of the arms, and explicitly prohibited them from proceeding
against the Indians, bat to come to terms as soon as possible.

XL — Superiniendenta (/Indian affairs; Indian siA-agenta; military com-
mandera </ poeta in Indian countries; Indian reservattona,

Tbe commanders of military posts in the Indian countries have
been stripped of all functions pertaining to Indian agencies, to the
«nd of assigning these to civilians, whose chief aim in accepting
them can only be to make profit of the appointmento; in many cases,
it is feared, regardless of justice to the Indian or to the government.

To such Indian sub-agencies the troops have been humbled to the
condition, too often, of "hewers of wood and drawers of water," or
of acting only as a police "posse."

It is a glaring fact that army detachments on the frontiers aroifre-

123 TOPOOBAPHIOAL UEMOIB OF THE

quently called upon to quell Indian hostilities either originated by
designing agents themselves, or caused throi^h ignorance, indiffer-
ence, or complicity, to be fomented by bad citizens into actual war.

So long as the present policy obtains of dividing the administration
of the practical operations, in reference to the tribes, between a
Commissioner of Indian Affairs and a Secretary of War, without sub-
jecting the former to the authority of the latter, jast so long will
inefficiency pervade the system.

The present practice of separating all control over the sub-agents
from the commanding ofGcers of posts, and lodging it in the hands of
superintendents of Indian affairs, who are under the direction of a
civil bureau, inefficient in the matter, because of its want of military
organization and military authority, can never be otherwise than in-
jurious, on the whole, to the Indian service.

As good may come of evil, so, undoubtedly, there are a few cases
under the present role that may work well. But these cases are the
exceptions to the rule.

Under the existing policy there is seldom any cordial co-operation
between the agents of the War Department and those of the Depart-
ment of the Interior upon Indian matters when in the act of exe-
cuting orders in the field. The Indian bureau should never have been
severed from the War Department, and the sooner it is restored by
act of Congress to its former and most natural parent the better will
it be for those truly interested in the rightful ends of government.

Colonel Wright, 9th infantry, while in the Walla- Walla country
reported his views upon this subject, which accord so entirely with
my own observations that I here quote them :

"Durii^ a long service I have had much to do with Indians, and
the opinion which I have ever entertained has been that their
entire management should be in the hands of tbe War Department.
The interest of the Indians, alike with that of the government, de-
mauds it. The Indian department cannot control the Indians without
the aid of the military. The Indians will be much better satisfied.
They will not be embarrassed by conflicting counsels. They will
know what to rely npon. If we expect the Indians to put faith in
as we must have a unity and singleness of purpose. This can only
be accomplished under the jurisdiction of one white chief."

Indian ware on our frontiers will never cease to be brought on by
bad white people until commanding officers of posts are clothed with
authority to arrest and bring to trial white depredators in the Indian
countries, and on the Indian reserves, before proper tribunals.

Practically, under the existing system, if a white man murder an
Indian the murderer ie entitled to trial by jury before being bnog,
and all his family are not necessarily included iu his doom. But if
an Indian commit the venial offence of stealing a white man's pig, to
keep himself from starving, the case is quite different; "itisyonr
bull that has gored my OX}" and forthwith a war of extermination
is declared and vigorously prosecuted against the whole band to
which the Indian belongs, and wo be unto the popularity of a oom-

n,g:,.ndtyC00glc

DBPIBTHERT OF THE PACIFia 125

manding officer who Bhonld preSTime to TEiise his voice agaiast the in-
discriminate ttlanghter.

The provisions of the existing laws of Congress ("Act to regulate
trade and interconrse with Indian tribes, Ac, passed 23d Congress,
let session, approved Jnne 30, 1834, and its amendatory act, 29th
Congress, 2d session, approved March 3, 1847,") are severe enongb.
Bnt are they executed ? No. This is a dead letter in practice, in-
operativo in the hands of civil agents, and it is over-ridden hysnact
of the Oregon legislature 1 The statute of this Territory sets at
nought and declares the statute of Congress s nullity in reference to
this intercourse. And while an officer is compelled to execute a law
of Congress he makes himself amenable to the law of Oregon. And
here we have the reason why the hostile Indians are found so well
armed and appointed for war. The in moving whites sell their rifles,
revolvers, and ammunition to the Indians, because they get large
prices; and the traffic is unrestrained, because said law of Congress i»
null, in virtue of the Oregon law, which is such as to remove oil
chance of proof against the culprit. At the battle of Big Meadows,
on Bogne river, the Indians were armed with the best of Sharp's
rifles and Colt's revolvers, sold to them by the whites; and it was on
account of the inferiority of the anna, which his men had to ase by
an absurd regulation, that Captain Smith came so near losing that
battle.

The system of colonizing the Indians within the limits of a State or
Territory upon reservations ie, perhaps, under all circamstuices,
the most humane, economical, and practicable that can be adopted.
Bat to render this eSective two things are essentially necessary, but
which are too often neglected by the Indian department :

1. It is essential to survey the reservation and mark it out on the
ground by metes and bounds so that the Indian and the white may
know its exact limits. It is too commonly the case that the reserva-
tion is bat a mere paper reservation; no survey having been made,
no boands or monuments set to mark its existence, or to show where
jurisdiction begins or ends.

2. There shonld be a competent military force stationed on the re-
servation. It has become quite too much the practice to leave these
reservations unguarded by any military force, and to wait until diffi-
culties occur between the Indians on them and the encroaching
whites, and then, after the troubles begin, to send for the military to
suppress the outbreak, whereas the practice should be to have a soffi-
cient force at all times immediately on the spot to prevent encroach*
ments and to enforce obedience.

All of which, general, is most respectfully submitted by year very
obedient servant,

THO. JEFFERSON CBAM,

Captain U. S. T. E.
Major General John E. Wool,

United Staiea Army.

n,g:,.-ndtyC00glc

TOPOOBAPHIOAL IIEUOIB OF TBI

Headqoabtebs Dbfabthent of the Eabt,

Troy, N. K, Jemvary 2, 1858.

Snt: Herewith I have the honor to transmit, through the headquar-
tera of the army, a very able, intereBting, and truthful memoir and
report, with maps, hy Captain T. J. Cram, of the Topographical En-
^neera, of the topography and military operationa of the department
of the Pacific whilst under my command in 1854, 1855, 1856, and
1857.

In preaenting the memoir and report I would respectfully call
Attention to the following anhjects, viz :

First. Chapters one and two, which conttun a general desciiption
of the department of the Pacific, including the ocean front.

Second. Chapter three, pages 36 to 43, refers to an arsenal of con-
fltruction and depot for quartermaster and commissary supplies at
Benicia, California. The BUggestions of Captain Cram I think ought
to be adopted.

Third. Chapters four and five refer to roads, routes, and distances.
The route from New York and New Orleans, via Panama, San Fran-
cisco, and Sacramento, to Utah, or Salt Lake City, may be considered
of sufficient importance to claim special notice. I would simply add
that a military expedition from Sacramento, on account of snow in the
mountain passes, would be impracticable in the wintor season. — (See
pages 91 to 113.)

Fourth. Chapter six is interesting, having reference to the wars
between the whites and Indians in Oregon, by a perusal of which it
will be seen that the'whites have generally been the a^ressors. In
the same chapter will be discovered the diabolical character of Ben
Wright, Indian sub-agent, who has been represented in Congrees as
the friend of the Indians.- — (See pages 141 to 155.)

F^h. The Indian war in Rogue River valley in 1855 and 1856. —
^ee pages 166 to 190, in which will be discovered the immediate
causes of the war, its resnlts, and the gallant and efficient mannsr by
which the war was brought to a close by the regular troops, under
the command of Lieutenant Colonel Buchanan. )

Sixth. Pages 197 to 228 give an accurate description of the coun-
try, its roads, rivers, and distances, embraced in western, northern,
and eastern Oregon.

Seventh. In chapter seven, pages 229 to 281, will be found an in-
teresting description of Washington Territory, and -particularly of
Puget's Sound. The military posts, roads, and improvements re-
commended for this Territory I deem no less necessary to secure the
Seace of the country than for the defence and protection of the in-
abitents. A steamer of the speed of at least tea to twelve miles
the hour is required in Puget's Sound for the protection of the whites
and Indians against the marauding Indians of the English and Rus-
sian possessions.

Eighth. Chapter eight relates to Indian treaties. Id pages 252 to

n,g:,.ndtyC00glc

DBPABTHENT OF THE PACmO. 125

315 will be discovered the causes of the war and its coctinuaace ia
WashingtoQ Territory. The truthful history of Governor Stevens'
efforts to form treaties with the Indian tribes in his Territory, wbicb
were not at the time called for, I would recommend as worthy of the
perusal of the Secretary of War.

Ninth. Chapter nine, paj^es 316 to 433, iurnishes an interesting
history of the several expeditions against the Yakamas, of the war in
Puget'e Sound, and of Governor Curry's most wanton, illegal, and
uncalled for expedition against the -Walla- Wallas, and the similar
expedition of Colonel Shaw against the Cayuses. The expedition
against the WdUa- Walla Indians was an eSbrt on the part of Gov-
ernor Curry to bring on a war that would be of long continuance, in
the expectation of a large drain from the treasury^: of the United
States. Although the war did not continae as long sA the governor
anticipated, he, no doubt, will present an account that will, if ap-
proved by Congress, take from the treasury of the United States
several millions of dollars. Congress, however, may hesitate to ap*
propriate to the fall amount claimed, from the fact that the expenses
incurred were paid in territorial scrip, much of ^^hich has been sold
for less than twenty-five cents on tlie dollar.

On a careful examination of the conduct of Governor Curry and
others in carrying on the war it will be, I think, discovered that it
was not so much to protect and defend the inhabitants from Indian
barbarities as it was to promote ambitious and speculating schemes.
One thing is certain, that powers greater than belong to the Prea>
ident were exerted to carry on the war, by fitting out expeditions
against the Walla- Wallas and the Cayuses, which were wholly unne-
cessary and under no circumstances called for, the expenses of which,
no doubt, will swell the claim against the United States one or two
millions, perhaps more. If Congress should foot the bill, which, it
is said, will amount to more than six millions, I would not be sur-
prised if the next territorial Indian war should cost ten or twelve
millions. I do not know how this question of governors of Territo-
ries making war on their own account, and beyond their own juris-
diction, will be considered. If countenanced by the government, I
would not be surprised if the example should, when least expected,
and that time may have already arrived, lead to embarrussing results,
at least in regard to the finances of the government. It appears to
me that governors of Territories should not he permitted to make
war on their own account and beyond their own jurisdiction.

Tenth, Chapter eleven, page 445, relates to superintendents of
Indian affairs, which is especially recommended to the attention of
the Secretary of War. The affairs of the Indian department as hith-
erto conducted in the department of the Pacific have been of very
slight, if any, advantage to the Indians; whilst for their benefit large
amounts have been drawn from the treasury of the United Slates.
The superintendency of the Indians should, beyond all question, be
under the control of the War Department.

Having thus called attention to some of the most important sub*

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126 TOPOaSAFEIClL HEUOIK OF DEFAXTKENT OF PACIFIC.

jects coDtained in Captain Cram's memoir and report, I would add
that it ia due to him to say that he has on all occaaioDS whilst under
my command exhihited talents, zeal, ability, and eSSciency worthy of
the highest commendation.

I have the honor to be, very respectfully, your obedient servant,
JOHN B. WOOL.

Major Gmeral,
Hon. John B. Flotd,

Seartaryi^ War.

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