I have heretofore recommended the donation of swamp and overflowed lands to actual settlers, in fixed quantities, upon the same terms that the State receives them from the General Government, and would still favor that plan, if it were possible, by individual enterprise, to secure compliance with the act of Congress, and by the construction of levees and drains, effect their reclamation.

But consultation with persons now located upon the overflowed lands, as well as more careful examination and reflection, have satisfied me, that, in order to secure fully the accomplishment of the object of their donation, it will be necessary to establish a fixed price per acre, not exceeding one dollar, and authorize warrants to be issued, for fixed quantities, as was done in the case of the School Lands.

In this manner, I am induced to believe, sales to the amount of more than half a million of dollars, can be made during the next year.

The fund thus realized, the Legislature could either set apart to be applied in the reclamation of these lands, or use it for other purposes, as is now the principal derived from the sale of the School Lands; and set apart the interest, not exceeding five per cent. per annum, as a fund, to be known as the "Reclamation Fund." This mode of disposing of these lands, it is believed, would, in a comparatively short period of time, enable the State to carry into effect some well devised and economical plan of operations, by means of drains and levees, which would effectually reclaim and secure against overflow, more than one-half, and, perhaps, as much as two-thirds of the amount, which the State will obtain under the act of September, 1850.

Early action on your part, is deemed important, not only on account of the realization of a large fund from the sale of these lands, and the opening to the enterprize and industry of our citizens, of a vast amount of the richest and most fertile soil within the State, but their reclamation and settlement would also add greatly to the substantial wealth of California, and be a continuous and ever increasing source of revenue for the support of Government.

In, providing, however, for the disposition of these lands, in the manner proposed, permit me to suggest the propriety of exempting from location by warrant under the law, all such lands, whatever, within one mile of the corporate limits of either of the cities of San Francisco, Sacramento, Stockton, or Marysville.

This character of lands situated in the immediate vicinity of the cities named, is believed to be more valuable, and the entire proceeds of its sale, at a fair price, should accrue to the State, and the amount derived applied in the same manner as the funds realized from the sale of overflowed land warrants.

I would further suggest the necessity of stringent restrictions so as to guard against speculation, and secure these lands, as far as possible, to actual settlers

PUBLIC LANDS IN CALIFORNIA.

A careful examination of the subject has fully satisfied me, as it must all who will give it consideration, that the interests of both State and Nation will be best subserved by a cession to the State of all the public lands in California.

The policy of making the public lands a source of revenue to the General Goverment, has, for the last quarter of a century, been opposed by many of our wisest statesmen, as contrary, not only to the true interests of the people, but of the Government itself.

The plan of disposing of them at a cost barely sufficient to defray the necessary expenses of the land office, of survey, etc., thus placing a homestead within the reach of every man at a mere nominal price, has not only been regarded with favor by the people, but has shaped and moulded the character of our laws in relation to the public domain.

But even if this were not true, it can easily be shown that, as a question of economy on the part of the General Government, and without reference to the vast

benefits which would accrue directly to California, and indirectly to the whole Union, the cession of the public lands deserves the favorable consideration of Congress.

The completion of the surveys, necessary to enable the agents of Government to separate from the public domain the lands claimed under Spanish and Mexican grants, and the lands heretofore donated to the State, by Congress, for various objects, including those subject to overflow, all of which must be separated, and by distinct lines set apart from the public domain, will, it is believed, cost the General Government a sum of money greater than can, or ever will be, realized from the sale of the remainder.

If, then, it be true, as is believed, that but little, if any revenue will be secured to the United States by the retention of these lands, there certainly exists no good reason why Congress should refuse to cede all of them to the State.

Indeed, if any considerable amount of revenue were expected or desired to be derived from the sale of these lands, to be shared in by the people of other portions of the Union, or to be expended for the general good, there might, perhaps, be some reasonable ground for a refusal to cede to the State, and California herself would not murmur at the sacrifice of her interest, should it be required to advance the prosperity of her sister States.

As no such sacrifice, however, is deemed necessary, and as it is believed no well founded objection can be urged, I doubt not the General Government can be induced to accede to our wishes in this respect, if proper representations be made through our delegation in Congress.

Not only is it quite certain that revenue will never be derived from the sale of these lands, over and above expenses incurred in survey and sale, but the right of the General Government to dispose of them without the assent of the State, is doubted by many.

Without, however, pretending in this communication to advance an unqualified claim on the part of the State to the public lands within her limits, it may not be improper, in this connection, to advert briefly to facts connected with the organization of her government and admission into the Union.

The people of California, after the acquisition of the territory from Mexico, in the absence of that protection to which they were entitled at the hands of the General Government, and which their necessities so imperiously demanded, regularly organized a State Government without the consent, and for aught they knew, in opposition to the wishes of Congress.

In the year 1849, delegates, chosen by the people, assembled in convention and framed a constitution, which on the thirteenth day of November, of the same year, was adopted by the people.

In the month of December, 1849, the Legislature, chosen on the day the Constitution was adopted, assembled in the city of San Jose, and all the enactments necessary to secure the rights of persons and property, and promote the general welfare were passed.

Up to the period of the organization of the State Government, we were a community, or rather a collection of persons, without law, and therefore, not possessed of that sovereignty which is only acquired by a State, either at the origin of the civil society of which it is composed, or when it separates itself from the community of which-it previously formed a part, and on which it was dependent.

This separation, for all purposes of sovereignty, independence or jurisdiction, was fully consummated in the organization of the State Government, and a revolution accomplished, peaceful, it is true, yet as complete and entire as though it had been the result of a protracted, fierce and bloody conflict.

Thus did California-a mere appendage of the General Government pass to the proud position of an Independent State; and endowed with all the attributes of

sovereignty sought admission into the Federal Union, but was not received until the ninth day of September, A. D., 1850.

California as a State de facto, it will scarcely be denied, was competent to exercise all the functions of an independent State, and as such, she possessed, at the time of her admission into the Union, the right of jurisdiction and eminent domain as fully, and to the same extent, as Texas, or any of the original thirteen States of this great Confederacy. And that California, as a State de facto, from the date of her organization as such, until her admission into the Union, did exercise all the powers of an Independent State, including jurisdiction over all the domain within her limits as prescribed in the Constitution, is matter of record, which cannot, and it is presumed, will not be denied.

This being admitted, the remaining question to be decided is, whether she has since, or in any manner, divested herself of the power she possessed over the public domain within her limits at the time of her admission.

It is true that the act of admission declares it to be upon the express condition that "she shall never interfere with the primary disposal of the public lands within her limits;" but it is contended, and I would here remark, with more than mere plausibility, that inasmuch as California has never in any express or authorized form assented to this condition, as demanded by Congress, she has not in any manner relinquished her right to the public lands, having come into the Union with a republican form of government, as required by the Constitution, and on an equal footing with the original States.

If it be true that the eminent as well as the useful domain is an attribute and muniment of sovereignty, and that the existence of a State, de facto, establishes its Sovereignty de jure, it would seem to be clear that the assent of the State must be given by her Legislature, to render obligatory upon her the condition in relation to the public lands contained in the Act of Congress admitting her into the Union.

While, however, it is true that the State, through her Legislature, has never in express terms assented to a condition divesting her of substantial and important rights, Congress, on the other hand, without question, admitted her Senators and Representatives, with a full knowledge that the State had not assented to the condition; thus, to some extent, tacitly yielding the right of the General Government to insist on the acquiescence of the State.

I would remark, however, in conclusion, that the claim of the State is here presented, not so much for the purpose of asserting what may be her just rights, as of establishing the fact, that California, although possessed, as believed by many, of a valid claim to the public lands within her limits, has, heretofore, silently acquiesced in what seemed to be the policy of the General Government, rather than assert claims, however well founded, which might possibly result in an unfortunate clashing of interests between the National and State authorities.

It is presumed that these considerations, and others suggestive therefrom, will be sufficient to induce you to memorialize Congress to relinquish to California any claim the General Government may assert to title to the unsold public lands within her limits, with such restrictions as may be deemed necessary for the protection of persons now in possession of the quantity allowed by law, and to prevent, as far as possible, these lands from passing into the hands of speculators, instead of becoming the property of actual settlers, who should, at all times, be secured in their homesteads.

PROTECTION TO ACTUAL SETTLERS.

Judicious legislation for the protection of actual settlers on the public domain, is a subject of deep interest to a large and enterprising portion of our fellow citiIt is demanded by the wants of the people-and by the present unsettled condition of land titles is rendered actually necessary to the permanent welfare of the State.

zeus.

More perfect security in the homestead is required to insure the complete development of the agricultural resources of the State, and secure the prosperity and happiness of her citizens.

To inspire confidence among the people-that their labor, capital and enterprise in making useful and necessary improvements are not expended in vain, and that their just rights will be guaranteed them-timely and judicious legislation on your part would seem to be absolutely necessary.

Most of the States of the Confederacy-it is proper in this connection to remark-have extended protection to the actual settler, as you will discern by reference to the Revised Statutes of Illinois, page 211; Hutchinson's Mississippi Code, page 856; Revised Statutes of Texas, pages 969 and 970; Clay's Digest of the Laws of Alabama, pages 320 and 321; Thompson's Digest of the Laws of Florida, page 187; Revised Statutes of Ohio, pages 606 and 696; Revised Statutes of Indiana, page 800; Pennsylvania Digest, by Dunlap, page 969; Revised Statutes of Missouri, page 444 and 445.

As I have, heretofore, in Annual and Special Messages, urged upon your predecessors the great importance of favorable action on this subject, it is now deemed unnecessary to do more than to refer you to recommendations, by me heretofore made, and commend them to your serious and early consideration.

COMMON SCHOOL EDUCATION.

The great and growing importance of an efficient system of Common School Education, embracing in its benevolent and comprehensive design the whole people, irrespective of condition in life, I rejoice to be enabled to assure you, is properly appreciated by the citizens of this young State-as the progress made during the past year in its organization abundantly demonstrates.

The increase in the number of Schools organized and children in attendance exhibit a state of things truly gratifying to the friends of popular education, and evidences the fact that our people are fully alive to the importance of early education, and not unmindful of the many real blessings of which alone it is the source.

The education of the youth of the State is with me a subject of much solicitude, and is regarded as the only sure foundation on which is to be reared and upheld the fabric of our free institutions. The intelligence and virtue of the people, nearly allied as they are, may be justly esteemed the main stay of our republican government, and the perennial spring whence issue the streams of enduring prosperity and happiness.

If the masses, whose will alone directs and controls the action of their representatives, be not properly educated and well informed, our whole system of gov ernment-devised as it is, for the happiness of the people and the prosperity of the nation-must totter to its fall, leaving only the broken fragments of a glorious Union, as the relic of a once mighty people. Liberty and intelligence are so indissolubly united, that the want of the oue is the inevitable prelude to the downfall of the other. In vain may we boast of the living principles of eternal liberty as em bodied in our constitutions; in vain point to the brilliant and heroic deeds of our forefathers, or to the greatness, glory and prosperity of this Republic, if our citi zens appreciate not those principles and those examples, as can only the minds of an intelligent and virtuous people.

In view, then, of the vast and manifold results dependent on a well devised and general system for the dissemination of useful and necessary knowledge, it is hoped that you will not only adopt such measures as will secure to the State all the means legitimately within her reach and applicable to the cause of education, but by judicious legislation provide for the establishment of a system, amply sufficient for the present wants and future growth of this young State.

To the beneficence of the General Government, and the wise provisions of our

State Constitution, we are much indebted for the possession of the most ample means, applicable alone to the support and mainter.ance of an extended system of common school education.

As a means for the dissemination of useful knowledge and the education of the entire people, it is, perhaps, needless to remark, that the system of Common Schools stands in the first rank, and is superior to any other, as yet devised, for the distri bution of the bounty of the State, for which she is so fully compensated in the increased intelligence and virtue of her citizens.

California, happily, is possessed of means amply sufficient to sustain a system of popular education greatly superior, in many respects, to that enjoyed by any of her sister States a system entirely adequate to extend the blessings and bounties of knowledge to every family within her limits.

In the wisdom of benign Providence, the air we breathe is pure, and free to all; the rain and the dew-drop fall alike on the rich and the poor; the flower of the field and the lily of the valley, with their beauty and fragrance, cheer and gladden the hearts of the high and the lowly,-even as the blessings of high Heaven are shed upon us, should we dispense the bounties committed to our care, and unseal the fountains of knowledge, that all, from the least to the greatest, may drink freely from its bright waters, and "without money and without price," partake of the rich blessings of universal, unrestricted education.

In our highly favored land, education should be no monopoly to be enjoyed only by the favored few, while the many, the great heart and strength of the nation, are permitted to remain in unblessed ignorance; but its bounties should, with an unsparing hand, be dispensed freely to all.

It is your duty, with the means at your command, to adopt and mature that system which will the more effectually carry out the beneficent designs of government and the will of the people. I, therefore, feel called upon in this connection to invite your attention to the great importance of immediate legislative action, in order to secure to the State all the lands donated for educational purposes-the rich heritage bequeathed to her children.

Under an Act of Congress, approved September 4, 1841, the State is entitled to five hundred thousand acres; and the amount to which she is entitled under the Act of March 3, 1853, as estimated in the Report of the Commissioner of the General Land Office for the year 1853, is six million seven hundred and sixty-five thousand five hundred and four (6,765,504) acres (vide Presidential Message and Documents, 1853-4, part 1, page 108); from which is to be deducted forty-six thousand and eighty (46,080) acres, donated for a Seminary of Learning, and six thousand four hundred (6,400) acres granted for Public Buildings; leaving a balance of six million seven hundred and twelve thousand nine hundred and twenty-four (6.712,924) acres, and making a total of seven million two hundred and twelve thousand nine hundred and twenty-four (7,212,924) acres, appropriated for the benefit of Common Schools.

Of the five hundred thousand acres donated by the Act of 1841, two hundred and thirty-one thousand six hundred and eighty (231.680) acres have been sold at two dollars per acre, leaving the balance of the five hundred thousand acres, and the sixteenth and thirty-sixth sections to be selected and set apart for the benefit of the State, to be applied in the future to the maintenance of our Common Schools.

The unsold lands, if disposed of at one dollar and twenty-five cents per acre, will yield to the School Fund the sum of eight million seven hundred and twenty-six thousand five hundred and fifty-five (8,726,555) dollars. At seven per cent., this sum would yield an annual interest of six hundred and ten thousand eight hundred and fifty-eight dollars and eighty-five cents ($610,858 85). To which add thirtytwo thousand four hundred and eighty-six dollars and thirty-seven cents (32,486 37,) accruing on the amount derived from sales of land heretofore made, and we have a grand total of six hundred and forty-three thousand, three hundred and forty-five