enough for the interest to amount to much more than the principal; and during all this period the States were deprived of the right and benefit of taxation. The lands donated for the construction of these improvements, and those thus entered, must of necessity be cultivated, to enable the holders to pay the taxes, and from this legitimate source of revenue great pecuniary benefit will be derived by the States. This cultivation, as a matter of course, will increase the amount of grain and stock in the country; and with these increased facilities for sending those products to market, will reduce the price of living, and thus benefit the whole community. They will also reduce the price of transportation for the manufactures and imports of the seaboard, and so reduce the price of those articles to the settler, and proportionally increase the quantity used, and of course the profit to the manufacturer and importer. The mail facilities furnished by these lines of intercommunication will be of great advantage to the government and the entire community; and in case of war, if hostilities were brought to our own borders, the advantages furnished by them for transporting men and military stores are almost inappreciable. Another and very great benefit derived from these improvements, is the amount of capital and labor carried into the hearts of the several States by their construction. Hundreds of thousands of laborers can find constant employment on them, and each, by a very small amount of labor, can secure the blessings of a "homestead," without feeling degraded by having it conferred on him as a gratuity, even if it were constitutional thus to benefit a few at the expense of the many, or compatible with the pledges heretofore given in relation to the public lands.

It is not my purpose at this time to discuss the principles of the "homestead" measure, my views on that subject having been fully presented in a communication of the 18th June, 1852, to the chairman of the Committee on Public Lands of the Senate, in answer to a call from him; but it must be obvious that the friends of that measure can in this way accomplish all that is desired by it, without any of its objectionable features.

To grants of this character for railroads, canals, &c., not one tangible or substantial objection can be presented. The increased value given to the lands enables the government to get double price, and a ready sale for those retained, and hence the grant costs them nothing. The same reason removes all difficulty in relation to the pledge given by the United States, at the cession of these lands, that they should be considered a common fund, for the use and benefit of all the States, and renders them more available towards meeting the obligation imposed on them by the act of 28th January, 1847, that the proceeds should be set apart for the payment of the public debt created by that act. Let these railroads and canals be completed, and the husbandman will no longer have reason to complain that his grain remains ungarnered from year to year because there is no mode of sending it to market; it will all be eagerly sought after, and with his surplus stock will be sent abroad over the land, to feed thousands of his less fortunate fellowbeings, while he will thus be made to rejoice in the prosperity secured by his honest toil and industry, saying nothing of the advantages to the business and finance of the country.

Moreover, these means of intercommunication, like iron bands, will unite the whole country together by a community of interest and feeling, and, like the arteries of the human system, will disseminate to every part the benefits of home production, and of the Eastern, Pacific, and Atlantic trade, when the great California railroad shall have been completed.

The recommendation heretofore made is therefore renewed, that liberal grants for all such objects be made, under suitable restrictions.

From the annexed statement E, which exhibits the present condition of the public lands, it will be seen that many millions of acres are now subject to entry, presenting to the settler every variety of soil and climate, rich in inexhaustible fertility and the valuable timber it bears, and in many sections containing mines of the precious metals, and of copper, iron, and coal.

As a matter that may be interesting, I have appended a table, marked F, prepared in 1850, with great care and from the most reliable data, giving the cost of the public domain, of extinguishing the Indian title, and of surveying, selling, and managing the lands, with the average actual cost of each per acre.

Respectfully submitted, by your obedient servant,

Hon. ROBERT MCCLELLAND,

JOHN WILSON, Commissioner.

Secretary Department of the Interior.

SCHEDULE OF ACCOMPANYING DOCUMENTS.

A. Statement of public lands sold, of cash, &c., received therefor, of incidental expenses thereon, in the first half of the fiscal year ending June 30, 1853.

B. Similar statement for last of the fiscal year, as above.

C. Exhibit of the public lands advertised in the year 1853; the quantities the plats of survey of which have been returned to the General Land Office; the quantities prepared for market not yet advertised, and the probable quantities which will be prepared in 1854. D. Synopsis of public lands advertised for sale since November 29, 1852, (date of last report,) showing the quantity under proclamation, exclusive of school lands.

E. Statement of the areas of the several land States and Territories, showing the amount un disposed of, &c., on June 30, 1853.

F. Statement showing the cost, &c., of the public domain.

G. Estimate of appropriations required for the General Land Office for fiscal year ending June 30, 1855.

H. Estimate of appropriations required for the offices of the several surveyors general for fiscal year ending June 30, 1855.

I. Estimates of appropriations required for surveying the public lands in the several States and Territories during the fiscal year ending June 30, 1853.

K. Reports of the several surveyors general of public lands, excepting California and Oregon.

A.