this time, in particular cases be unknown, yet the almost absolute certainty that it exists generally in the Territory should induce Congress to except the right to the. mineral in the confirmation of these claims. I assume it to be the policy of the gov ernment to encourage the development of the mineral resources of the country, and to reap some benefit from the same in the increased consideration charged for lands of this character, as well as the indirect benefit derived by reason of the addition of the net products of the mines to the substantial wealth of the country. If the right to the mineral is vested in the grant claimants, the adventurous prospector through whom these discoveries are usually made has no incentive to prospect thereon, and the existence of rich mineral deposits may remain undiscovered and unknown.

The appointment of a commission to adjust these claims would involve some additional expense over the present method, but I believe on the whole it would be far more satisfactory, and certainly the magnitude of the interest involved, both to claimants and the government, would amply justify Congress in adopting this method for the settlement of private land claims in New Mexico, where such a considerable number yet remain to be adjudicated; and I hope that Congress will take early action in the premises.

POPULATION.

The population of New Mexico, as given by the census returns of 1880, was 118,000, and the estimated addition to the same the past year is from 20,000 to 30,000. I consider it a safe estimate to place the present population of New Mexico at 135,000 people, exclusive of Indians.

MINING.

The mining interests of the Territory have made wonderful strides in development, and new discoveries are being made almost daily of silver, gold, copper, iron, and coal. The developments made in the old districts are such as to encourage the owners and attract both home and foreign capital for their development. A serious impediment is met with by the miners and prospectors in searching for mineral upon unconfirmed grants. The last clause of the eth section of the act of Congress provides that the lands embraced within the limits of a grant shall not be disposed of in any manner until final action by Congress upon the question of the validity or invalidity of the claim.

The right to the mineral was not embraced in the grants, they being agricultural and pastural grants, yet there is no provision permitting the miner to acquire any right to what he may discover upon a tract covered by an agricultural grant, and I suggest that some action be had by Congress which will enable the prospector to secure the benefits of his mineral discoveries upon tracts covered by unconfirmed grants.

The mining interests of Southern New Mexico have been seriously interfered with by the depredations of hostile Indians under Victoria and Naña, and but little prospecting could be safely engaged in, yet the adventurous miners have made many new and valuable discoveries in the limited area that they have been able to prospect. The northwest portion of the Mescalero Apache Indian Reservation is known to be rich in mineral; and, as it is of no practical use to the In lians, I suggest that it would be advisable to restore to market townships 9, 10, 11, 12, and 13 south, of range 11 east, and townships 9 and 10 south, of range 12 east, and, if necessary, add to the reservation an equivalent of land on the south, where Indians will be equally as well provided for. In fact, this reservation ought to be abolished entirely and the Indians disarmed and removed to the Indian Territory or the Eastern States, where they can be surrounded by civilization, and, if the object is to civilize and to Christianize them, they should be placed where it can be done quickly, and where they will not be subject to the temptations incident to the border.

This suggestion would apply with equal force to all of the wild tribes. The Mescalero Reservation, lying so close to the Mexican border, enables the Indians to commit depredations and seek refuge in Old Mexico, or to plunder the citizens of Mexico and return to the reservation, where they are safe from pursuit. The restoration to market of this reservation, which is known to be very rich in gold, silver, and copper, would result in opening up one of the finest mineral sections of New Mexico. To the northward of the reservation and but a few miles distant is the district of the White Oaks, which contains several hundred miners and is a very prosperous camp. To the west and southwest, in Doña Ana County, rich discoveries of mineral have recently been made in what is known as the San Augustin District, lying east and northeast of the towns of Mesilla and Las Cruces, in the Organ range of mountains. Several of the mines in this district were worked many years ago, and the old mines, together with the new discoveries which are now being worked, show considerable bodies of fine ore. More new and valuable discoveries of mineral have been made the past year in this Territory than in all the years preceding, and there is no industry that will pay as well if properly and intelligently managed. Labor is comparatively cheap, and the seasons are favorable for the prosecution of work every day in the year, and, with

the great abundance of fine bituminous and anthracite coal, fuel for smelting and refining purposes can be obtained at a mere nominal cost. The past year has witnessed the introduction of considerable capital, which has been applied in mining operations, yet much more is required, and is sure to follow the completion of the lines of railway now in process of construction through the Territory. While a large portion of New Mexico is arable and produces excellent crops of corn, wheat, &c., yet it is eminently a mineral-producing country, and the time is not far distant when it will take rank among the first of the mineral-producing sections of America.

MILITARY RESERVATIONS.

There are several military reservations that have been abandoned for many years that should be vacated and the lands embraced therein restored to settlement.

The military reserve in township 18 north, of range 20 east, has never been used by the military.

The Fort Butler reservation, embracing 76,800 acres, on the Canadian fork of Red River, in townships 12 and 13 north, of ranges 27, 28, and 29 east, has never been used by the military.

The Fort Thorn and Fort McRae military reservations, on the Rio Grande, have not been used by the military for a number of years, and should be restored to settlement, as they are no longer used.

RAILROADS.

Since my last report the Atchison, Topeka and Santa Fé and Southern Pacific roads have been completed to El Paso, Tex., and also form a junction at Deming, in township 23 south, of range 9 west, and since some time in May last through trains have been running from Kansas City to San Francisco. During the year the Atlantic and Pacific have constructed some two hundred miles of road west from Albuquerque, on the Rio Grande, and are pushing westward rapidly with San Francisco as the objective point.

These roads are without exception admirably and substantially constructed, and are first class, both in construction, equipment, and management.

FORESTS.

The beneficial results of the action taken by the department in the effort to prevent the unnecessary waste of timber will be fully appreciated in years to come if not by the present generation. New Mexico has ample timber for necessary home requirements if preserved from waste, and the beneficial results of the work of your special agents in preventing wholesale depredations upon timber far exceeds the value of collections made for timber cut. The large extent of country to be looked after has rendered the duties of your special agents quite arduous and dangerous, and I can bear testimony to their zeal and energy in the discharge of their duties.

For statement of special deposits for surveys by settlers, expenditure for salaries, and incidentals, the condition of the several appropriations for this district for the fiscal year ending June 30, 1881, and estimates for the fiscal year ending June 30, 1883, and expenditures for sundries from appropriation for survey of private land claims, I refer to Exhibits G, H, I, K, L, and M, respectively.

ACCOMPANYING EXHIBITS.

A.-Statement of public surveys executed under Congressional appropriation. B.-Statement of public surveys under sections 2401 and 2402, Revised Statutes, and their cost.

C.-List of surveyed townships and their contents in acres.

D.-List of private land claims in New Mexico which have been under contract for survey the past year.

E. List of mining claims surveyed.

F.-List of mineral deputy surveyors.

G.-Statement of special deposits for surveys.

H.-Statement of expenditures on account of salaries.

I.-Statement of expenditures for incidental purposes.

K.-Statement showing the condition of the several appropriations for the fiscal year ending June 30, 1881.

L.-Estimates for the ensuing fiscal year.

M.-Statement of expenditures from the apportionment of $2,179.25 from the appropriation for private land claim surveys for office expenses, &c.

1.-Private land claims surveyed, being a completion of Exhibit D of last year. Very respectfully, your obedient servant,

Hon. N. C. MCFARLAND,

Commissioner General Land Office.

HENRY M. ATKINSON,

Surveyor General.

A.-Statement of public surveys made out of the regular appropriation for that purpose in the district of New Mexico, during the fiscal year ending June 30, 1881.

No.

Sept. 10, 1880....do
107 Sept. 10, 1880
107 Sept. 10, 1880

A.-Statement of public surveys made out of the regular appropriation for that purpose in the district of New Mexico, &c.-Continued.