Appendix K.

On the 13th of April, 1849, Colonel Mason at his own request, was relieved from the post of Governor of California, and Brigadier-General Riley took his place. The despatch of that officer, dated 30th of June, following his assuming the duties of his post, is important, as containing an account of the state of feeling in California, upon the subject of the laws at that time in force, and the difficulties with various assemblies elected in the northern part of the territories.

Executive Department of California,

Monterey, June 30, 1849.

General: I have the honor to transmit herewith copies of all civil correspondence and papers since the 13th of April last, at which time I relieved Colonel Mason from his duties as Governor of California.

It was (with the advice of Colonel Mason) my intention, on assuming the direction of civil affairs in this country, to complete the organization of the existing government; at the same time to call a convention for forming a State Constitution, or plan of territorial government, to be submitted to Congress for its approval. But on further consultation it was deemed best to postpone all action on this subject, until I could ascertain what had been done in Congress. On the first instant I received reliable information by the steamer "Edith" that that body had adjourned without organizing any territorial government for this country; and accordingly, on the 3d instant I issued my proclamation to the people of California, defining what was understood to be the legal position of affairs here, and pointing out the course it was deemed advisable to pursue in order to procure a new political organization better adapted to the character and present condition of the country. The course indicated in my proclamation will be adopted by the people, almost unanimously, and there is now little or no doubt that the convention will meet on the first of September next and form a State Constitution, to be submitted to Congress in the early part of the coming session.

A few prefer a territorial organization, but I think a majority will be in favor of a State government, so as to avoid all further difficulties respecting the question of slavery. This question will probably be submitted, together with the Constitution, to a direct vote of the people, in order that the wishes of the people of California may be clearly and fully expressed. Of course, the Constitution or plan of territorial government formed by this convention can have no legal force till approved by Congress.

On the receipt of the treaty of peace with Mexico, doubt was entertained by a portion of the people here respecting what constituted the legal government and laws of the country. A few contended that all government and all laws in California were at an end, and that therefore the people, in their sovereign capacity, might make such government and laws as they should deem proper. Accordingly, in two of the northern districts, local legislative assemblies were organized, and laws enacted for the government of the people of these districts. The members of the Sonoma assembly, however, soon became convinced of their error, and that body was dissolved. But in San Francisco the assembly continued its sessions, making laws, creating and filling offices, imposing and collecting taxes, without the authority and in violation of law, and finally went so far as to abolish the office of alcalde, whose records and papers were seized and forcibly removed from his custody. On receiving official information of these facts, I issued my proclamation of the 4th instant. Since then I have made a personal visit to San Francisco, and find that the more respectable members of the so-called district assembly are convinced of the impropriety of the course pursued by that body, and in a very short time I think all the difficulties will be amicably arranged. These difficulties arose in part from a misapprehension as to what constituted the legal government of the country, and in part from the unpopularity of the first alcalde of that district, against whom serious charges had been made. Unfortunately, there was at the time no legal tribunal for investigating these charges; and, there being no other magistrate in that district, I could not, with propriety, remove him from office. A new election, however, will soon be held to supply his place; and on the organization of the "superior court," the charges against him can be properly investigated.

The publication of a portion of the instructions received from Washington respecting the government of this country, and the disposition manifested by the authorities here to enforce the existing laws, have done much to remove the erroneous opinions which were for a time entertained by a portion of the people of California. The civil government of this country has been, and will continue to be, administered on the principle laid down by the Supreme Court of the United States, viz: on the transfer of the ceded territory, it has never been held that the relations of the inhabitants with each other undergo any change. Their relations with their former sovereign are dissolved, and new relations are created between them and the government which has acquired their territory. The mere act which transfers their country transfers the allegiance of those who remain in it; and the law which may be denominated political is necessarily changed, although that which regulates the intercourse and general conduct of individuals remains in force until altered by the newly-created power of the State.

The treaty is the law of the land, and admits the inhabitants of [California] to the enjoyment of the privileges, rights, and immunities of citizens of the United States. It is unnecessary to inquire whether this is not their condition, independent of stipulation. They do not, however, participate in political power; they do not share in the government till [California] shall become a State. In the mean time, [California] continues to be a territory of the United States, governed by virtue of that clause of the constitution which empowers Congress to make all needful rules and regulations respecting the territory and other property belonging to the United States.

When we take into consideration the great mass of floating population of the United States and of other countries—people of all nations, kindreds and tongues—which has been suddenly thrown into this country, it must be acknowledged that every thing has, thus far, remained remarkably quiet, and that the amount of crime has been much less than might, under the circumstances, have reasonably been expected. It is to be feared, however, that during the coming winter, when large numbers of the miners collect in the towns, public order may be occasionally disturbed. But it is believed that in the mean time a more complete organization of the existing government will be effected, so as to enable the authorities to enforce the laws with greater regularity and efficiency.

Rumors have reached me that there is no very amicable feeling existing between the Americans and foreigners in the gold regions, and that the former are disposed to forcibly expel the latter from the placer districts. I shall soon visit the valleys of the Sacramento and San Joaquin, and hope to be able to report upon the true state of affairs there by the August steamer. As Congress has declined passing any laws restricting the working of the placers, I shall not deem myself authorized to interfere in this matter, any further than may be necessary to preserve the public tranquillity. Indeed there is much reason to believe that Congress has pursued the best policy, under the circumstances, in leaving the placers open to all; for it would be exceedingly difficult to enforce any regulations not absolutely required by the necessity of the case, and it is more than probable that any attempt at this time to rent out the mineral lands, or to tax their products, would involve a great expense, and it is quite possible that such an attempt would lead to very serious difficulties. Of the large numbers who have been attracted to this country by the flattering prospect of sudden wealth, and with the intention of returning to their former homes to enjoy their gains, many foreigners as well as Americans are becoming established in business, and will make California their permanent place of residence. It is therefore well worthy of serious consideration whether the present system may not prove equally beneficial with that of a more exclusive policy. It certainly conduces much towards developing the resources of the country, extending its commerce, and rapidly augmenting its wealth and population. As soon as I have made a personal examination of the gold regions, I shall be prepared to express my views on this subject; but I cannot omit the present occasion to urge upon the government the importance of establishing a mint in California, with the least possible delay.

Information, not official, has been received, that the revenue laws of the United States have been extended over this country, and that a collector and deputies may soon be expected to take charge of the collection of revenue in this district. On their arrival, all custom-houses and custom-house property will be turned over to them, and the temporary collectors employed by my predecessor and by myself will be discharged. The moneys collected during and since the war, under the direction of the governor of California, and not required for defraying the expenses of the civil government, will be kept as a separate and distinct fund, subject to the disposition of Congress. The grounds upon which this revenue has been collected since the declaration of peace, are fully stated in a letter to the collector of San Francisco, dated the 24th of February last. It may be proper to add, that the course pursued by my predecessor was rendered absolutely necessary by the peculiar circumstances of the case. The wants of the country rendered it imperative upon him to permit the landing of foreign goods in this territory; and had this been done without the collection of duties, large amounts of dutiable goods would have been placed in depot on this coast, to the manifest injury of the revenue and prejudice to our own merchants. The importers have sold their goods at such prices as to cover the duties paid, and still leave them enormous profits; and to now return these duties to the importers would be a virtual gift, without in any way benefitting the people of California. But, to expend this money in objects of public utility in the country, would confer a lasting benefit upon all. I would therefore recommend that such portions of these moneys as may be left, after defraying the expenses of the existing civil government, be given to California as a "school fund," to be exclusively devoted to purposes of education. No difficulty has been experienced in enforcing the tariff of 1846, and the revenue has been collected at a very moderate expense, considering the peculiar circumstances of the times.

All officers of the civil government of California will be paid out of the "civil fund" arising from the customs, the salaries fixed by law, and I would recommend that those officers of the army and navy who have been employed as collectors and receivers of customs in California, both during and since the war, be allowed a fair per centage on the money which they have collected and disbursed. Two and a half per cent. on the amount collected, with the restriction contained in section 2 of the Act of March 3, 1849, is deemed a fair allowance for collecting these customs, and two and a half per cent. on the amount actually expended is deemed ample compensation for keeping and accounting for the same. It would be more just and proper to make the allowance for the actual expenditures than for receiving and keeping these moneys; because, if the reversed rule were established, officers who have received large sums, and within a few days transferred them to others, with no other trouble than merely passing receipts, would be entitled to a higher pay than those who have had all the trouble of expending this money in small sums, and in keeping and rendering accounts of these expenditures.

As soon as these "civil funds" can be collected from the officers now holding them, it is proposed to place them in the hands of some officer, or other responsible person, who will act as treasurer for the civil government, with a fixed compensation for his services. On the arrival of the regular collector and deputies, appointed according to law, a full statement will be made of all the moneys which have been collected in California, and the papers and accounts connected with the expenditure of this civil fund will be sent to Washington, as heretofore, in order that all officers who shall receive or expend the same may be held to a strict accountability.

I am, sir, very respectfully, your obedient servant,

B. RILEY,
Brevet Brig. Gen. U.S.A., and Governor of California.

Major-General R. Jones,
Adjutant General of the Army, Washington, D.C.