3. In the complications which resulted in the seating of Governor Hayes as President of the United States, there was such a change effected that the Federal army was no longer employed to uphold the reconstructed officials in Louisiana and South Carolina, and the people of those States, at last, were left to the management of their own affairs. With this consummation, so long and devoutly wished, came that peace and contentment to all sections which had been unknown since 1861. 4. The enormous increase in the amount and quality of cotton grown in North Carolina since the late war has been dependent upon the use of various fertilizers and other appliances of a better cultivation of the soil. The old habit of educated men, in committing their plantations and slaves to the management of overseers, has been almost wholly abandoned. Many individuals of the largest culture are now devoting their time and skill to the discovery of improved methods in agriculture, and North Carolina is reaping a golden harvest thereby. 1878. 5. No employment, except agriculture, exceeds in importance that of the merchant. North Carolina is shut off from foreign commerce by the sand barriers on the coast, Only at Beaufort, on Old Topsail Inlet, can be found such an entrance to internal waters as promises safety to the mariner who would approach with his deep-laden vessel. But, while this has precluded the possibility of great commercial activity in North Carolina, there has not been a lack of men, at any period of our history, to illustrate the dignity and importance of legitimate traffic. Cornelius Harnett and Joseph Hewes were as conspicuous for financial success as they were for patriotism during the Revolution. 6. With the return of peace to the belligerent States, North Carolina was commercially prostrate. The merchants and the banks were almost all ruined in the general impoverishment of their debtors. The supply of cotton which remained on hand at the cessation of hostilities was about all that had been left, in the general wreck, upon which trade could be again commenced with parties at a distance. 7. Raleigh had never been recognized as a trade centre. A few stores on Fayetteville street, between the State House and where the Federal building now stands, were the representatives of their class in the city. Cotton was very little grown in that region of the State, and no market for its sale had even existed nearer than Norfolk and Petersburg.