The town of San Francisco is no way fitted for military or commercial purposes; there is no harbor, a bad landing-place, bad water, no supplies of provisions, an inclement climate, and it is cut off from the rest of the country, except by a long circuit around the southern extremity of the bay. In time of war, enemies' troops could be landed for many miles south of the entrance of the bay on the sea beach, and thus cut it off by a short line across the peninsula on which it stands. There are points on the bay, more inland, having good harbors and landings, good water, and open to the whole country in rear, and accessible without difficulty to ships of the largest class. One of these should be the point at which the future depots should be established; and I propose to go to-morrow in the Edith, in company with Commodore Jones and other officers of the army and navy, to examine the straits of Karquinez, said to combine most advantages. I hope to return and report the result of our examination before the next mail boat leaves, (on Monday, 9th,) but at any rate by the succeeding boat, a few days afterwards. I hope that in fixing the port of entry, capital, or other public places, the law will leave to the President the selection; otherwise, private interests already involved in speculation here, will, by misrepresentation, lead to a very bad choice. If Congress has not provided by law for the government of this Territory, or its admission as a State, I would be very glad that the government would officially promulgate its views as to the civil authority now exercised here. Some important questions of law, involving both life and property, are now depending; and judges and jurors, without experience in these difficult questions, are called upon to act under great responsibility. It appears to be the opinion of merchants in many of the ports of the Pacific--and they allege in support of it the advice of some of our consuls--that in virtue of the circular of the Secretary of the Treasury of October 30, as the Treasury Department could not collect duties on imports in California, their goods, though dutiable, could be imported without paying duty. I have held that this was not the construction proper to be given to the circular, but only that the law had not provided the means of collecting duties here, that law being still in force which prohibits certain goods being introduced into the United States, unless they pay duties as prescribed; that consequently no dutiable goods can be landed in California unless they shall have paid their duties elsewhere--the effect of which would be, that they could not be admitted at all from foreign ports.