Governor Ramsey could make no other suggestion to the legislature of 1862, and that body conferred the desired authority. In 1862 wild lands were a drug in the market. “Pine” would not go at four dollars an acre. The regents reported to the legislature of 1863 that the creditors were not disposed to accept “equitable terms.” That legislature did not formally dissolve the corporation, but ordered the regents to turn over to the state auditor, as state land commissioner, all the lands, buildings, and appurtenances. This was accordingly done, and the University of Minnesota existed only in supposition. After the midsummer of 1863 matters were looking up in Minnesota. The victories of Vicksburg and Gettysburg gave hope of an early return of peace. Money was plentiful and prices were rising. Notwithstanding the homestead law, there was a market for well-situated public land. John S. Pillsbury of St. Anthony had been appointed to a vacancy in the board of regents in November of that year, and immediately applied his remarkable business talent to the university affairs. His conclusions were embodied in a bill introduced into the state senate of 1864, of which he was a member. Enacted into law March 4, the bill created a special board of three regents: John S. Pillsbury, Orlando C. Merriman, a lawyer of St. Anthony, and John Nicols, a merchant of St. Paul, also a state senator. This board was authorized to sell land to the amount of twelve thousand acres and use the proceeds in “extricating” the institution. Taking advantage of a time of general liquidation and scaling down, they bought in claims of many creditors at thirty-three per cent. of their face. The bondholders, satisfied at length that they had no recourse upon the state, moderated their demands and consented to “equitable terms” of adjustment. In this way a “great state” redeemed the bonds it had authorized by law, and canceled a body of debts pronounced by the regents of 1860 to be “honestly due.” It took two years to accomplish this “extrication,” so that the legislature of 1867 was ready to make a small appropriation to renovate the building and open “a grammar and normal department.” It was not until October 7 of that year that the doors were opened, and thirty-one boys and girls were enrolled in the first term. The school being of academy grade, no objection was made to the admission of girls, but there was no intention to settle then the question of coeducation in the university. It was, however, thus settled.