All officers of the civil government of California will be paid out of the "civil fund" arising from the customs, the salaries fixed by law, and I would recommend that those officers of the army and navy who have been employed as collectors and receivers of customs in California, both during and since the war, be allowed a fair per centage on the money which they have collected and disbursed. Two and a half per cent. on the amount collected, with the restriction contained in section 2 of the Act of March 3, 1849, is deemed a fair allowance for collecting these customs, and two and a half per cent. on the amount actually expended is deemed ample compensation for keeping and accounting for the same. It would be more just and proper to make the allowance for the _actual expenditures_ than for receiving and keeping these moneys; because, if the reversed rule were established, officers who have received large sums, and within a few days transferred them to others, with no other trouble than merely passing receipts, would be entitled to a higher pay than those who have had all the trouble of expending this money in small sums, and in keeping and rendering accounts of these expenditures. [Illustration] As soon as these "civil funds" can be collected from the officers now holding them, it is proposed to place them in the hands of some officer, or other responsible person, who will act as treasurer for the civil government, with a fixed compensation for his services. On the arrival of the regular collector and deputies, appointed according to law, a full statement will be made of all the moneys which have been collected in California, and the papers and accounts connected with the expenditure of this civil fund will be sent to Washington, as heretofore, in order that all officers who shall receive or expend the same may be held to a strict accountability. I am, sir, very respectfully, your obedient servant, B. RILEY, _Brevet Brig. Gen. U.S.A., and Governor of California_. Major-General R. JONES, _Adjutant General of the Army, Washington, D.C._ APPENDIX L. Governor Riley took occasion to make an excursion through the gold regions, soon after his affairs with the assemblies were disposed of. A reconnoisance of the valleys of the Sacramento and San Joaquin was made, and particular care given to the matter of establishing military posts for defending the miners and others from the attacks of the Indians. After his return to Monterey, the following despatch was sent to the headquarters of the United States army. The subject of the Indian troubles receives especial consideration. HEADQUARTERS TENTH MILITARY DEPARTMENT, _Monterey, California, August 30, 1849_.