HISTORY OF CALIFOUfflA. 485 



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 cus- 

 tom-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 govern- 

 ment, 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 pur- 

 sued 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 collec- 

 tion of duties, large amounts of dutiable goods would 

 have been placed in depot on this coast, to the mani- 

 fest 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 

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