You know the sanction of the legislature to our borrowing $60,000 on the pledge of our annuity of $15,000. The Literary Board offered us $40,000 on that pledge, to be repaid at five instalments, commencing at the end of the third year from the date of the loan, and interest to be regularly paid in the meantime. We endeavored to obtain permission to draw for only $15,000 at first, and for $2,000 monthly afterwards, to avoid the payment of dead interest. This they declined, as bound themselves to keep the whole of their capital always in a course of fructification. We then requested a postponement of the instalments to the fourth instead of the third year, with an additional loan of the further sum of $20,000, authorized by the law. To the postponement they acceded, and we are assured they will to the further loan. To explain to them the urgency of this additional year's postponement, a paper was laid before them of which I enclose you a copy, and on which you are now acting. Should the legislature not help us to the $93,600 there noted, the result will be that at the end of the next year all the buildings will be completed, (the library excepted,) and will then remain unoccupied five years longer, until our funds shall be free for the engagements of professors. Should they, on the other hand, give this aid, our funds will be free, at the beginning of the next year, and will enable us to take measures for procuring professors in the course of that summer, and to open the University. We were all of opinion that we ought to complete the buildings for the ten professors contemplated, as well as accommodations for the students, before opening the institution; for were we to stop at any point short of the full establishment, and open partially, as our funds would thenceforward be absorbed by the professors' salaries, we should never be able to advance a step further, nor to cover the whole field of science contemplated by the law, and made the object of our care and duty. We thought it better, therefore, to risk a delay of eight years for a perfect establishment, than to begin earlier and go on forever with a defective one; and we suppose it impossible that either the legislature, or their constituents, should not consider an immediate commencement as worth the sum necessary to procure it. You will observe that in the estimate enclosed, no account is taken of our subscription monies. They are, in fact, too uncertain in their collection to found any necessary contracts; and we thought it better therefore to reserve them as a contingent fund, and a resource to cover miscalculations and accidents.