wants of the population, until another crop is produced. Potatoes are selling at two cents per pound, and, together with other root crops, are in great abundance. The yield of potatoes has been so great, that I believe fully one million bushels could be exported, and still leave enough for home consumption.

The wheat raised in Gallatin valley is carefully estimated at 8,000 acres; and other small grains, such as oats, barley, rye, &c., are placed at 6,000 acres. From that already threshed, the yield will be at least an average of thirty bushels to the acre, making, as a low calculation of all the grain in that valley, 420,000 bushels. Several of the other valleys have large crops this season, but I have no data of them.

Through the kindness of J. H. Ming, esq., territorial auditor, I have been furnished with a partial list of the returns received at his office up to this time. The list shows 166,140 acres of land under cultivation, and the total valuation of property assessed $5,708,118. Although the returns are not full, some idea can be had of the immense resources of Montana.

There are a number of flouring mills in the agricultural portions of the country, all doing a good business. There are three large ones in the Gallatin valley, and more are being erected in other places. From this time, no profitable shipments of flour can be expected into Montana.

GRAZING LANDS.

The grazing lands are of great extent, and of the best quality; there can be none finer in the world. The most nutritious grasses cover all the valleys, hills, and mountains, except on the very highest ranges. Cattle and stock of all kinds can be kept in good condition all winter on these lands, generally without even hay.

Beeves are taken from among the different herds at all seasons of the year, and found to be of the fattest and sweetest, making delicious food. The nutritious grasses make them more tender and of finer quality than the grain-fed stock of the States. Many large herds of cattle are now being grazed in the Territory, their number being estimated at 40,000. There are also numerous bands of horses and mules herded throughout the country, which, together with the oxen, are largely used for the transportation of goods between the different commercial points.

POPULATION.

The population is not definitely known. The vote at the recent election was near 12,000. On account of the fewness of precincts, a full vote was not polled. I may be safe in estimating the entire number of people at 40,000, and it is confidently believed that it will reach 60,000 in 1868, should there be no Indian troubles along the overland routes.

IMMIGRATION.

Owing to the Indian troubles on the plains this season, the great thoroughfares to this Territory were partially cut off, except the Missouri river, which was the only route free from molestation. Many availed themselves of this route, and a large number of boats landed at Fort Benton, loaded with freight and many passengers. The overland coach carried quite a number of immigrants through, but the dangers were so great that but few emigrant trains would encounter them. The northern overland route from Minnesota has been traversed, with interruptions by the Indians in some cases, and the mails are sometimes obstructed. The class of citizens who are generally coming into the Territory are those who intend making their homes here. Hence many families are coming and settling up the different valleys. The farming population is fast increasing, and a great number of miners find it profitable to devote their time to agriculture.

TIMBER.

Timber is generally found on the mountains and foot-hills and along the water-courses. Pine, fir, and cedar predominate. Pine differs in size, according to its locality; on the slopes of the mountains, especially on the Pacific side, it is large; on the highest points it is short and scant. Firs (the balsam and spruce) abound on the northern slopes and colder regions of the mountains, often attaining great size. Cedar is usually stunted and scrubby, growing on rocky, sterile soil, and used only for firewood. Timber for building, fencing, and fuel, as well as for mining purposes, is found in abundance to supply the wants of the settlers, and there is but little land that may be said to be without these necessary materials close at hand.

Numerous saw-mills are running constantly, to supply the demand for lumber, which sells readily at from $30 to $50 per thousand feet.

Thoughtless and malicious persons frequently set fire to the timber, and during the past two years the destruction has been very great. I therefore respectfully and earnestly recommend that the timber lands adjacent to the valleys and mines be surveyed as soon as practicable, to insure their protection, as they will be readily purchased by the settlers, and measures taken for their preservation.

BUILDING MATERIALS.

Building-stone of granite, limestone, and slate is found in all portions of the country, together with the materials for brick, slate for roofing, &c. Superior fire clay has also recently been discovered in great abundance, the want of which has been felt heretofore in building furnaces. Many fire-proof business buildings have been erected in Virginia City, Helena, and Sterling.

MOUNTAIN PASSES.

There are several passes over the mountains, some of which are doubtless feasible for the construction of railroads. The lowest of those now known are the Deer Lodge and Mullan's passes, requiring no tunnels, the former 5,000 feet and the latter 6,000 feet above the level of the sea.

HOT SPRINGS.

These are numerous in the Territory. There is one near Helena which is quite a place of resort; another in the Deer Lodge valley, first visited and discovered by Lieutenant Mullan. These hot springs are found in almost every valley and along the large rivers. The greatest number is on the head-waters of the Madison river, on the southeast branch, on or near the confines of the Territory. This stream, on account of the great number of hot springs, was called the "Fire Hole" river. On one branch there are several hundred springs, some of which are geysers, or spouting springs. These springs are of a very high temperature, some of them probably adapted to medicinal purposes. On the head of the Stinking Water is a large spring of sulphuretted hydrogen, from which that stream derives its name.

COAL

Has been found on the Big Hole river, about sixty miles from Bannock City; in Jackass gulch, on the east side of the Madison river; and at Summit district, near Virginia City. These are all bituminous, and the seams do not exceed three or four feet in width, as far as known. Coal also exists on the head of the Yellowstone river. Brown coal, or lignite, is found in great quantities on the banks of the Missouri and Yellowstone rivers, valuable as common fuel, but of no great value for manufacturing purposes. It is also found on the head-waters of the Teton and Marias rivers, branches of the Missouri.

IRON.

A deposit of iron ore has been discovered on Jackass creek, a tributary of the Madison river, but its extent is unknown. It is supposed to be valuable.

COPPER.

There is a group of copper leads along the Muscleshell river, believed to be valuable. The lodes generally run east and west, and assayers have detected gold, in small quantities, in specimens examined. The width of vein is

from three to four feet. As yet no arrangements have been made for working these mines, nor have any shipments of ore been made to any place for that purpose, so far as known. Some recent discoveries of placer copper have been made on Beaver creek, near Jefferson City, which show some splendid specimens. But freights are so high that nothing can be made at copper mining until the rates are reduced.

SILVER MINES.

The first discovery of silver mines in the Territory was made by Professor Eaton, of New York, on Rattlesnake creek, opposite the town of Argenta. The mineral was argentiferous galena. About the same time silver was discovered on the head of Prickly Pear creek, above Beavertown. Subsequently lodes containing both gold and silver were discovered at and near Virginia City, in the Madison range of mountains, on the Jefferson, Prickly Pear, Ten Mile, and Boulder creeks, and also in the vicinity of Helena. The most recent discovery is on Flint creek, a branch of Hell Gate river. On the head of this stream a district has been found abounding in silver lodes, the assays of which have been of astonishing richness. Great activity is exhibited there at present in prospecting, developing the lodes and building mills and furnaces. Many furnaces are being put up in different parts of the Territory. The best results obtained have been at Argenta, where, under the superintendence of gentlemen of skill and experience, the smelting works have been very successful, and several shipments of silver have been made this season.

PLACER MINES.

The first placer mines worked in this Territory were found on the Hell Gate river in 1862. In the fall the mines at Bannock were discovered. In May, 1863, the mines on Alder gulch, where Virginia City now stands, were discovered and an immense impetus given to prospecting, and about $20,000,000 have been taken from there since that time. About a year afterwards mines were discovered on Prickly Pear, where Helena now stands.

Valuable mines were discovered on the eastern side of the Missouri, and immense sums have been taken from Confederate gulch and Montana bar. Diggings were struck on the Big Blackfoot in 1865, which have produced largely.

All the gulches are on the head-waters of the Missouri, Columbia, and Yellowstone rivers, and are generally contained within the parallels of 450 and 47° 30′ and the meridians 1100 and 114° west longitude. The number amounts to hundreds, and almost every day increases it.

At the present time there is great excitement in the western portion of the Territory about mines said to exist on the Big Bend of the Kootenay, which are probably within the limits of the Territory.

Gulch mining is attended with many difficulties in this country.

The season

is short, and the gold generally found on the bed rock, often fifty or sixty feet from the surface. When provisions and labor become cheaper many gulches will be worked that at present are untouched. They are known to contain gold, but prices at present are too high to yield a profit on them.

Large amounts of money have been expended, this season, in ditches and preparations for gulch mining next year, and fully fifty per cent. more gold will be taken out than has been the present season. I estimate this year's work at $20,000,000. To conclude, not a tenth part of the Territory has been prospected.

GOLD-BEARING LODES.

The first gold-bearing lode of this Territory was discovered at Bannock in 1862, and called the Dakota. The surface indications were extraordinarily good, and gave a stimulus to prospecting which resulted in the discovery of many valuable leads in that part of the country. The results from these leads proving satisfactory, several mills were erected, and are now at work upon rock taken from them. Some of the largest and finest lodes of this section have been discovered this season, and the hope is entertained that quartz mining may prove successful in this the pioneer mining camp of Montana.

Several thousand lodes have been discovered in Madison county, many of which are in the vicinity of Virginia City.

There are a large number of mills in this county, either in successful operation or in process of erection, and the results thus far have been generally satisfactory. Much capital has been embarked in mining enterprises, and the work has been prosecuted with an energy that attests the confidence of the operators and gives assurance of success. At Summit City, eight miles above Virginia City, near the head of Alder gulch, gold quartz mining is extensively carried

on.

The lodes are numerous and rich; several mills are in operation and others being built. From this point there is a succession of auriferous lodes to the foot of Alder gulch, a distance of ten or twelve miles. Fine ledges are also found on the west side of the Madison range, in Ramshorn, California, and Beran's gulches, while Mill creek and Wisconsin gulches afford good prospects. Some of the gold-bearing lodes of this region contain large quantities of argentiferous galena.

There is a valuable quartz district between Hot Springs creek and Meadow creek, on the east side of the Madison range, and still another to the north of it, on Norwegian gulch. At the Sterling mining district, in this section, there are many valuable lodes, and five mills in operation. In some other of these places mills are at work, generally with fine success.

There are also mining districts on the waters of the Jefferson river, known as the Silver Star, Highland, and Rochester, in which lodes have been found of immense value, some of which, in their present undeveloped state, have sold for large sums. One, the Green Campbell, was bought by a New York company for $80,000.

There are several districts on the Boulder, Prickly Pear, and Flint creeks and Deer Lodge river, which have shown fine indications and are being worked to a considerable extent. One lode, the Atlantic Cable, situated on Little Moose creek, a tributary of the Deer Lodge, gives extraordinary promise Though little work has been done upon it, the sum of $180,000 has been offered for it and refused.

The Bailey lode, in the Dead Wood district, on the headwaters of the Little Blackfoot, also deserves particular mention. Parties who have been prospecting for it for the two past years claim to have recently struck the vein or crevice, and are taking out rock of remarkable richness.

To the east of the Missouri river, near Diamond City, is a large and promising quartz region, which is attracting much attention. Two mills are already in operation, and several companies have been organized, one of them with a capital of $1,000,000 and a working capital of $300,000, for the purpose of developing and working some of the leading mines. Large quantities of machin

ery, and all the necessary appliances for the successful working of the leads and extracting the precious metals, bave been ordered from the east, and large results are expected next season.

The district of gold mining now receiving a considerable portion of publie attention is that around Helena, a great many of the lodes being situated on the Oro Firio and Grizzly gulches, to the southwest of the city, stretching along to the northward toward Ten Mile, connecting with that district and Blue Cloud. The Union Lode, No. 2, is situated near Grizzly gulch, in the Owyhee Park district, and is partly owned by James W. Whittutch, being considered one of the richest and best developed in the Territory. It is being worked in several places, and promises all that could be wished. Recent crushings of ore have yielded seventy-two dollars to the ton. Another, the Park lode, is also doing well, while on the neighboring gulches there are many fine lodes which only need labor and capital to make them rival anything yet found in any mining country.

On Ten Mile creek, a stream that flows from a source near the summit of the Rocky mountains, in a northeasterly direction, there is a fine lot of lodes, some of which have assayed a large percentage of gold, while there is an intermingling of silver. Careful assays prove these lodes to contain from $25 to $300 per ton of ore, and by the "working test" made in St. Louis, $240 per ton has been obtained from rock taken from within seven feet of the surface. The veins are generally firm and solid within a few feet of the surface; the ledges from five to thirty feet high.

Blue Cloud, a new district, about ten miles from Helena, on Ten Mile, is opening out well. Machinery is being erected, and developments rapidly made.

In addition to the many mills, there are scattered over the different portions of the country, wherever there are any promising lodes, a large number of arastras. They are a rude mill, constructed for the purpose of working quartz, and generally driven by water-power. Most of them do well, and yield handsonie wages to their owners. mines, rather than going to the expense of bringing machinery on to the premSome are erected for the purpose of developing ises too early, deeming it best to prove the value of one good lode rather than own many with no knowledge of their intrinsic wealth. The owners of lodes are generally anxious to procure government patents for their claims, and already there have been several applications filed. doubt but a large proportion of the owners of quartz will take advantage of Next season, I have no the mineral law to get titles to their mines.

There have been more valuable discoveries of leads this season than ever before, and capital is being carefully used in developing them. By the use of an arastra, and a small amount of money, each lead can be tested economically and sufficiently. Five hundred thousand dollars judiciously expended this season would open out enough mines to insure the success of one thousand mills next year. This seems to be the general theory on which miners are working, and can consequently offer inducements to capitalists in another season.

The leads in Montana are generally better defined than in any other mining country in the world, and the singular freaks sometimes taken by them in other regions are less frequent here. The simplicity of the ores is a theme of general remark, and although sulphurets are often found, they are taken as an indication of richness, and their appearance looked upon as a promise of ultimate

success.

On the whole, the gold lodes of Montana look in every way encouraging; in every quarter the highest hopes are expressed, and all look forward to great wealth for the Territory from this source.