for Vancouver's island, within the possessions of Great Britain; from thence she went to Puget's sound in Oregon, within our waters and the jurisdiction of this collection district, took on board a quantity of lumber, the product of the United States, and left that port without a clearance, and proceeded to Fort Victoria, Vancouver's island, taking on board the product of the British possessions to complete her cargo, and from thence sailed for this port, where she arrived a few days since.

She brings with her a clearance from Fort Victoria, purporting to be signed by Mr. Douglass as factor for the Hudson's Bay Company. The papers are without seal, though purporting to be attested. I have assumed that the Hudson's Bay Company, through their agent or otherwise, have not the power to receive or collect duties, grant clearances, or to do any other act relative to the revenue laws of Great Britain; that the power to collect duties, &c., is an act of sovereignty, and cannot be delegated to a corporation; and that if it be true, as is claimed, that the factor of that company is in fact the collector, commissioned by his government, he must act in that capacity, and not as factor of the Hudson's Bay Company. Taking this view of it, I determined that this vessel was engaged in the coasting trade contrary to law; that she sailed from an American port with the product of the United States, and entered an American port with that cargo. I have treated the papers purporting to be signed by Mr. Douglass, as factor of that corporation, as nugatory, and decided that the voyage from Oregon to this port was a continuous voyage. I beg leave to call your attention to this case, and ask that I may be fully instructed as to the position and powers of the Hudson's Bay Company in that particular. They assume high powers, and have had heretofore almost the entire control of everything in this distant region. The rapidly increasing business of Oregon, especially in the lumber trade, (lumber being worth this day in this city $450 per thousand) requires full instructions upon this and like cases. May I ask, as in a former letter, for instructions also as to the course to be pursued to bring this case, as well as other cases of seizure, before the court in Oregon or Louisiana.

I have been called upon to decide another question which seems to have caused the Californians some trouble. Prior to the ratification of the treaty of peace with Mexico, and while California was within her dominion, vessels had been built, and were engaged in the coasting trade, &c. During cur military occupation, vessels were also built for like purposes. It is claimed that by the provisions of the treaty these vessels have become natura ized, and are to be regarded as American, and entitled to all the privileges of American ships. I have decided otherwise, and regarded California as a foreign territory until the ratification of the treaty. If I am correct, then there will be an immediate necessity for the action of Congress, as in the case of Louisiana and Florida. In looking to the future, it is hardly possible to anticipate the destiny of California. There is something so peculiar in her present position, that I cannot refrain from offering you my views and opinions; and in doing so, I trust they will be taken with all allowances, and as the opinion of one whose views are based in a great degree upon first impressions. Her position is peculiar in the first place from the fact that here, labor controls capital. In other words, the mechanic and artisan fixes his own price, and the capitalist is compelled from necessity to submit to that price, whatever it may be. The pressing wants of the thousands now in the country, and the anticipated wants of

those on their way hither, (and their name is legion,) require the immediate construction and erection of buildings to shelter them. Hence the carpenter charges and receives from $12 to $17 per day, and other mechanics in the same ratio. Rents are consequently at such rates as startle a sober, sedate man; and this state of things must continue for long time to come. Her position is peculiar in another respect. California now is, and for all time to come must be, essentially commercial. There is gold in California. She is rich in mineral wealth: that is a "fixed fact." The extent of her resources is not known, it is true, and time and science can only ascertain the value of the precious metals in her mountains and valleys. So long as the search for gold shall continue, just so long will agriculture be neglected. It will not pay, for the obvious reason that labor will command higher prices than can be paid for growing grain. For these and for various other reasons her commercial interest will be the great interest of the State. Owing to the many advantages which San Francisco possesses over all other ports on the Pacific, it must become to the nation what New York is to the Atlantic. This very fact will keep up the present high prices for labor and building materials. It is impossible to estimate the extent to which her commerce may reach. It is now large, and it will be constantly on the increase. These facts are stated for the double purpose of putting you in possession of what may be anticipated from duties, and of impressing upon Congress the necessity of doing something-doing much for California, and that without delay. The responsibilities that rest upon the collector, in the absence of any legal tribunal, any legal adviser, to which he might resort for redress or advice, weigh heavily upon me. My decision may almost be regarded as final, owing to the absence of a tribunal to which resort might be had for revision. In another respect, also, are the responsibilities of a graver character. It becomes a matter of absolute necessity on the part of the collector to appoint subordinates, and to place them immediately upon duty, without waiting for the approval of the Secretary, as required by law. Men resort to the custom-house for temporary employment, and for that only. They will continue ouly just so long as is necessary to seek something more profitable. An instance has occurred this morning to illustrate this. I have a clerk acting as cashier, to whom I was compelled to pay (what you might regard as a high salary) $3,000 per annum. He was offered from a banking-house $5,000, with the promise of a future interest, and has consequently given notice that he should leave the office.

The situation of the bay, there being no wharves, renders it necessary for vessels to anchor some distance from the shore, and goods are landed by lighters and small boats, employed for that purpose. This, together with the fact that the high price of storage, three dollars per month per barrel, and the price of drayage, three or four dollars per load, either induces or compels the owners or consignees to keep their cargoes on board, (the same being bonded,) and consequently an officer must remain for sometimes weeks, perhaps months, on board;-this will account for the large number of inspectors. Nor can this be avoided until the departinent authorize the leasing of warehouses. Under these circumstances, is it too

much to ask that the collector of this district be vested with discretionary power, not only as to salaries, but as to the appointment of subordinate officers? There must be some law or authority of this sort, or the collector will be involved in difficulty. Upon the subject of salaries, I need

not say that no man can afford to hold office at the present rate. The deputy ought to receive at least six thousand dollars per annum. No competent man can be found who will with integrity discharge its duties for a less sum. Upon this subject, however, I refer to the members of the Senate and House from this State. They are well advised as to the state of affairs here

Will you permit me to again urge upon your consideration the subject of warehouses, and the power to rent a sufficient number, and authorizing the construction of cast iron, as stipulated in the contract heretofore made for the one, and with the persons contracted with. They are, I think, entitled to the preference. The interest of the government will be, I think, amply protected by this arrangement, and it will be a source of revenue. But I must again say, so far as California is concerned, you must give the collector a large discretion. If you impose too many restrictions, or re quire him to postpone his appointments, or to await the approval of the department, the business of this office will be greatly embarrassed. I ask this for myself and for those who will come after me.

I have written, as usual, in great haste, and in the midst of constant interruption. My time, from early in the morning until midnight, has been occupied in the business of the office, and in the examination of various and important questions I have been called upon to investigate and determine.

Since writing the foregoing, I have felt constrained to trouble you still further, and to call your attention to another subject, which the growing importance of our commercial affairs in this quarter seems to require should be investigated by the government of the United States. We have with Chili a treaty of reciprocity, by the provisions of which I am to be governed, as it is the law between the two nations, and binding upon both. As collector of customs, I cannot take notice of any infractions of that treaty on the part of the government of Chili, that being the subject-matter of discussion and adjustment between the two powers; and yet I am advised by the United States consul, Mr. Moorhead, resident at Valparaiso, that little or no regard is paid to it by the government of Chili. It is notorious that such is the fact here; and the merchants having knowledge that such is the fact, have inquired whether this office will still regard it (the treaty) as in full force. My answer has been in the affirmative, until otherwise directed. I am convinced that great injustice is being practised upon our commerce by the government of Chili in this particular. I submit the subject to your consideration. You will receive herewith a copy of a letter from Mr. Moorhead addressed to a former collector, marked C.

In relation to the brandy and other spirits which I have taken possession of, I desire to say that, under the peculiar circumstances of the case, and from the fact that this practice had obtained the approval of the military government, I have refrained from interfering with the vessel and the balance of the cargo, with the conviction that it would operate as a fraud upon the importer, were I to seize the ship and cargo. The im porter, though he knew the law and was bound to know it, had knowledge also that the law was disregarded by the authorities here. I have, therefore, required that the spirits imported contrary to law should be placed in the custody of the collector. And it is stipulated that, should the Secretary decide that brandy and other spirits not entered for exportation, and

in casks of less capacity than is provided for by law, are subject to forfeiture, that then they shall be sold as forfeited, and no further litigation is to follow. Your opinion, therefore, will be conclusive upon all the parties.

A case has this day occurred, which I beg leave also to submit. There is between the United States and the Hanseatic republic of Lubec, Bremen, and Hamburg, a reciprocal treaty of commerce and navigation, under which the ships of those cities claim an exemption from tonnage duties; and they are no doubt exempt, provided the vessels of the United States are not in their ports charged with like duties. But the act of Congress of the 31st of May, 1830, declares that the President of the United States must be satisfied that foreign nations do not require our ships to pay tonnage duties before the ships of such foreign nation can claim this exemption. I am unadvised as to what nation this law applies. It may include the ones referred to, and also others from whom the fees are exacted. Will you have the goodness to advise me. You will pardon the infliction of this long epistle. I am a young beginner, but desire to learn my duty. I send you herewith a monthly summary, commencing on the 12th instant, the day I assumed the duties of this office. Very respectfully, your obedient servant,

Hen. W. M. MEREDITH,

Secretary of the Treasury.

J. COLLIER, Collector.

SAN FRANCISCO, November 14, 1849.

SIR: We propose to furnish the revenue cutter C. W. Lawrence with provisions for the rations as enumerated in your schedule, and subject to your approval, at the following prices for one year:

Beef, per barrel, fifteen dollars.

Pork, per barrel, fifty dollars.

Flour, per barrel, thirty-five dollars.

Rice, per pound, twelve and one-half cents.

Raisins, per box, four dollars.

Dried apples or peaches, thirty-five cents per pound.

Pickles, per dozen, twenty dollars.

Cranberries, none in market.

Biscuit, per pound, twelve and one-half cents.

Sugar, per pound, twenty cents.

Tea, per pound, fifty cents.

Coffee, per pound, ten cents.

Cocoa, none.

Butter, per pound, one dollar.

Cheese, per pound, twenty-five cents.

Beans, per barrel, five dollars.

Molasses, per gallon, seventy-five cents.

Vinegar, per gallon, fifty cents.

J. COLLIER, Esq.,

Your obedient servants,

Collector of the port, San Francisco.

BURGOYNE & CO.

A.

FLAG-SHIP SAVANNAH,

Bay of San Francisco, November 12, 1849. SIR: Permit me to congratulate you on your safe arrival at your post, an event which I have anxiously looked for, both officially and individually, and to add, that at all times it will afford me pleasure to co-operate with you, should the naval authority be needed to aid you in the arduous duties of the office upon which you have just entered.

Mr. Harrison, your predecessor, will doubtless make you fully acquainted with all that has been done by the naval and military commanders on this station for the collection of duties, and for the relief of the suffering community, whose wants and necessities were of that urgent nature as to compel the ruling authorities to adopt their measures to meet the urgent wants of the in-pouring emigrants, rather than strict obedience to legislative enactment; this course has been fully approved by both the late and ⚫ present administrations at Washington.

By the enclosed extract No. 1, you will perceive upon what grounds foreign-built boats and crafts were allowed to participate in the inland trade within the bay of San Francisco. From the daily applications, all of which are refused since June, and the still exorbitant high freights on the rivers, I cannot too earnestly recommend to you, as I have done to the Executive, to continue the licenses now in force, until Congress, by the passage of a law, shall legalize such licenses. Were the craft in question suddenly thrown out of the trade, not only would the owners thereof be great losers, but the now ill-supplied emigrants, and the population of the great valleys of the Sacramento and San Joaquin, would be subjected to the greatest extortion for all the necessaries of life, already frightfully deficient in the mining district.

I also enclose an extract from another of my letters to the honorable Secretary of the Navy, in reference to the non-payment of duties, encouraged by the transshipping of foreign goods from sea-going vessels to river craft in the port of San Francisco. I have reason now to believe that the frauds thus practised on the revenue can only be prevented by manifesting and clearing each and every craft, and by the appointment of deputy collectors at each of the ports of Benicia, Sacramento city, and Stockton, where alone vessels should be allowed to discharge, except launches and small steamers plying between those towns and headwaters of the Sacramento aud San Joaquin rivers.

The accompanying extract No. 3, from one of the Secretary of the Navy's letters to me, will show in what light the Executive, at Washington, regards the interest and protection of the countless emigrants pouring into California by every avenue of approach.

I have the honor to be, &c., &c.&c., very respectfully,

THOS. AP C. JONES, Commander-in-Chief U. S. naval forces, Pacific ocean.

Col. COLLIER,

Collector of Customs, San Francisco.