In the instructions from Washington to General Kearny, in 1846, for his guidance in California, the establishment of port regulations on this coast was assigned to the commander of the _Pacific squadron_, while it was said "the appointment of temporary collectors at the several ports appertains to the civil governor of the province." It was also directed that the duties at the custom-houses be used for the support of the necessary officers of the civil government. This division of duties, and this disposition of the proceeds of the customs were continued during the whole war. On the receipt of the Treasury Department regulations respecting the collection of military contributions in Mexico, officers of the army and navy were made collectors at some of the ports, but at others the civil collectors appointed by the Governor of California were retained. At the close of the war, Governor Mason, for reasons already communicated, determined to continue the collection of revenue in the country, on the authority which had previously been given to him, until Congress should act in the matter, or orders to the contrary be received from Washington. He, therefore, as governor of California, again appointed civil collectors in the ports where military officers had temporarily performed those duties, and collected the customs on all foreign goods, in accordance with the provisions of the tariff of 1846, while the commander of the Pacific squadron continued the direction of all matters relating to port regulations. A double necessity impelled the governor to this course. The country was in pressing need of these foreign goods, and Congress had established no port of entry on this coast. The want of a more complete organization of the existing civil government was daily increasing, and, as Congress had made no provisions for supporting a government in this country, it was absolutely necessary to create a fund for that purpose from the duties collected on these foreign goods. It is true that there were no laws authorizing the collection of these duties; but at the same time the laws forbade the landing of the goods till the duties _were_ paid. Governor Mason, therefore, had no alternative but to pursue the course which he adopted. He immediately communicated to Washington his action in the case; and as the receipt of his despatch was acknowledged without any dissent being expressed, it must be presumed that his course met the approbation of the government. When I assumed command in this country as civil governor, I was directed to receive these communications and instructions from Governor Mason, for my guidance in the administration of the civil affairs of this Territory. I have accordingly continued the collection of the revenue, and added the proceeds to the "civil fund," using that fund for the necessary expenses of the civil government. The expenses of employing civil officers in this country are very great; and as I have no