Question 3.-Will you now turn to my despatch No. 29, and read it to the court?

Answer. It is here, and I read it as follows:

[No. 29.]

FLAG SHIP OHIO,

La Paz, August 21, 1848.

SIR: I have the honor to transmit herewith Hugh W. Greene's ac. count-current of receipts and expenditures in the collection of military. contributions at the custom house of Mazatlan, during its occupation by the forces of the United States.

Very respectfully, your obedient servant,

THOS. AP C. JONES, Commander in chief U. S. Naval Forces, Pacific Ocean.

Hon. JOHN Y. MASON,

Secretary of the Navy.

Question 4.-Turn to my despatch No. 55, and read it to the court. Answer-I have it here; it is as follows:

[No. 55.]

FLAG SHIP OHIO,

Sansalito, Bay of San Francisco, April 27, 1849. SIR: I have the honor to acknowledge the receipt of your letter of the 28th of August, 1848, enclosing a copy of a communication addressed by the Minister of Foreign Affairs of Mexico, to the Hon. Mr. Clifford, envoy, &c., &c., at the court of Mexico, complaining of the manner of restoring the custom-house at Mazatlan, and its archives, to the Mexican authorities appointed to receive them under the 3d article of the treaty of peace.

In the way of explanation, I respectfully refer you to my letter No. 19, June 19, to the department, and one of the same date addressed by me to the Hon. Mr. Clifford, at Mexico. On our part, the custom house was given up with all formality and the most rigid observance of the 3d article of the treaty. A full and certified account of the duties collected, and the expenses thereon, was handed to the Mexican officer, with all other documents and papers required by the treaty, excepting only bonds, notes, or other evidences of debt due the custom-house. Of these there were

The duties being paid in cash at the time of entry, there could be no evidence of that which did not exist, to transfer. A certified copy of the account above referred to was sent with my letter of June 19, 1848, to Mr. Clifford at Mexico, as well as to the Navy Department. Very respectfully, your obedient servant,

Hon. JOHN Y. MASON,

THOS. AP C. JONES, Commander-in-chief Pacific Squadron.

Secretary of the Navy.

Question 5.-Will you turn to my despatch No. 43, and read it to the court?

Answer. This is it; it is as follows:

[No. 43.]

FLAG SHIP OHIO,

Bay of San Francisco, November 27, 1848.

SIR: Before I left Washington I expressed a desire to have an oppor tunity to make an effort to open commercial intercourse between the United States and Japan, and to return home via the East Indies.

That desire was expressed under the supposition that the Mexican war might be terminated before I reached this station; and that, consequent ly, there would be but little for me to do on my old beaten track on this sea, and that this ship might be spared from the American coast long ere this date.

These expectations have not been realized; and, as the Ohio must be on her way home by this time next year, I cannot now receive your orders in time to undertake such a mission without keeping the Ohio's crew greatly beyond their term of enlistment.

In my letter No. 24, July 28, from La Paz, thinking it probable that, with a view to a reduction of naval expenses in time of peace, the Ohio might be recalled before the term of service by which her crew are held would require it, I expressed a wish to remain out here to make up a full cruise of three years; satisfied now that no commander of a squadron, under the present organization of the navy, nor so long as we have sloops-of-war commanded by grandfathers, lieutenants from not less than twenty-five to sixty years of age, an inordinate number of passed midshipmen with every prospect of passing the prime of life in that anoma lous station, can arrest the rapid decline of discipline in the naval service, or can command with credit to himself or satisfaction to his country. The present state of things, too, in all California, being such as to preclude the employment of our officers and men in making surveys of the ports, bays, or harbors on this coast, which as yet are but little known, together with some considerations of a personal character, I beg leave to revoke my previous application upon this subject, and to be at liberty to return home in the Ohio, if she is not prematurely recalled, and if she is to return via Panama, in November or December, 1849, as I may then decide.

I have the honor to be, very respectfully, your obedient servant,

THOS. AP C. JONES,

Commander-in-chief U. S. Naval Forces, Pacific Ocean. Hon. JOHN Y. MASON,

Secretary of the Navy.

Question 6.-Will you turn to confidential despatch from the Secretary of the Navy to the commander of the Pacific squadron, dated November 5, 1846, and read the paragraphs I now call your attention to?

Answer. It is here. It is addressed to Commodore R. F. Stockton, commanding United States naval forces on the west coast of Mexico. The passages indicated are as follows:

"The great distance at which your command is placed, and the improbability of maintaining a frequent or regular communication with you, necessarily induce the department to leave much of the details of your operations to your discretion."

"On being relieved in the command of the squadron, you will hand your instructions to the officer relieving you.

"I am, very respectfully, your obedient servant,

"Commodore R. F. STOCKTON,

"J. Y. MASON.

"Commanding U. S. Naval Forces on the west coast of Mexico."

The despatch from which these extracts are read is annexed to the record, marked "January 25-B."

Question 7.-Look at the paper now shown you, and say in whose hand writing it is signed?

Answer. It is the signature of Mr. Dayton, the Fourth Auditor of the Treasury, and appears to be genuine. The letter, I think, is in the handwriting of Mr. Thomas, formerly a clerk in his office.

The paper is read in evidence for the accused, as follows:

TREASURY DEPARTMENT,

Fourth Auditor's Office, June 19, 1849.

SIR: Yours of the 24th April has been received, enclosing the follow

ing receipts for money:

No. 1.-J. F. Mott, for travelling expenses of acting Lieu.

tenant E. F. Beale.....

No. 2.-E. F. Beale.

No. 3.-E. F. Beale...

No. 4.-John Rudenstein.

$740 00

122 20

500 00

1,200 00

No. 5.-J. Crowninshield.

600 00

3,162 20

Making five receipts, amounting to thirty-one hundred and sixty-two f dollars, instead of six receipts, amounting to $3,762, as stated in your letter.

Very respectfully, your obedient servant,

To Commodore T. AP C. JONES,

A. O. DAYTON.

U. S. Navy, ship Ohio, Pacific Squadron.

Question 8.-Look at the paper now shown you, and say in whose handwriting it is signed?

--

Answer. It appears to be a genuine letter from the Fourth Auditor, sigued by him.

The paper is read in evidence for the accused, as follows:

TREASURY DEPARTMENT,

Fourth Auditor's Office, December 10, 1849.

SIR: Your letter of October 30 has been received, with vouchers 6, 7, and 8, which have been filed in this office.

I am, sir, very respectfully, your obedient servant,

To Commodore T. AP C. JONES,

A. O. DAYTON.

Commanding Pacific Squadron.

Question 9.-Look at the paper now shown you, and say in whose handwriting it is signed?

Answer. I have ho hesitation in saying that the signature of Mr. Dayton, appended to this letter, is genuine.

The paper is read in evidence for the accused, as follows:

TREASURY DEPARTMENT,

Fourth Auditor's Office, January 18, 1850.

SIR: I have received your letter of the 30th October, 1849, with R. M. Price's (purser) receipt for eighteen thousand dollars.

I am, sir, very respectfully, your obedient servant,

To Commodore T. AP C. JONES, U. S. N.,

A. O. DAYTON.

Commanding Pacific Squadron, San Francisco, California.

The testimony of the witness, as recorded, is read over to him, and is acknowledged to be correctly recorded, and he is discharged.

The accused states that he has no other testimony to offer; and thereupon, there being no business before the court, it is adjourned until Monday morning next at 11 o'clock.

JANUARY 27, 1851-11 o'clock a. m.

The court met pursuant to adjournment.

Present: Captain Charles Stewart, U. S. N., president; Captain Lewis Warrington, U. S. N., Captain John Downes, U. S. N., Captain Henry E. Ballard, U. S. N., Captain William B. Shubrick, U. S. N., Captain Lawrence Kearny, U. S. N., Captain John D. Sloat, U. S. N., Captain Matthew C. Perry, U. S. N.; and J. M. Carlisle, esq., judge advocate. The record of the proceedings on yesterday is read and approved.

The accused appears in court, and states that he has just received from Walter Jones, esq., his counsel, a letter, which obliges him to ask further time (until noon to-morrow) for the preparation of his defence. He asks that the letter be read; which is accordingly done by the judge advocate, as follows:

MONDAY MORNING, January 27, 1851.

MY DEAR SIR: I find it is impossible for me to complete the draught of your defence, and have it revised by you, in time for the court to day. I will not trouble you or the court with any detail of the causes that have inevitably, and rather unexpectedly, delayed the performance of the task. So it is. I have not been able to put [it] in a state by the time assigned, but promise, with one day's longer indulgence, to be ready at the same hour to-morrow as was fixed for to-day.

Yours, very sincerely,

[Mem.]

Received at 11 o'clock this day.

W. JONES.

THOS. AP C. JONES.

No objection being made to the indulgence asked by the accused, it is

ordered by the court that it be granted, and that the court will receive the defence to-morrow at noon.

And there being no business before the court, it is adjourned until tomorrow morning at 11 o'clock.

JANUARY 28, 1851-11 o'clock a. m.

The court met pursuant to adjournment.

Present: Captain Charles Stewart, U. S. N., president; Captain Lewis Warrington, U. S. N., Captain John Downes, U. S. N., Captain Henry E. Ballard, U. S. N., Captain William B. Shubrick, U. S. N., Captain Lawrence Kearny, U. S. N., Captain John D. Sloat, U. S. N., Captain Matthew C. Perry, U. S. N.; and J. M. Carlisle, esq., judge advocate.

The record of the proceedings on yesterday is read and approved. At 12 o'clock m. the accused appears in court. He states that Walter Jones, esq., his counsel, has been prevented by bodily sickness from completing the written defence which was to have been read to-day; but that he, the accused, having undertaken to be ready at this hour, is here now to sub. mit such written notes as he has prepared himself, and he requests that the judge advocate may read to the court the said written notes; which is accordingly done, as follows:

The first charge is, "fraud against the United States."

This, as well as charge second, and their several specifications, together with first specification to third charge, is founded, if a term so positive may be applied to a thing without substance, on alleged fraudulent use of public money.

Although the charge of fraud stands foremost in this extraordinary bill of indictment, it was not so considered by the original complainants, nor would it now appear as the head and front of my offending, but for the dilemma in which certain insubordinate, cavilling lieutenants found themselves, who, to matters of individual grief, have in their desperation superadded these charges, which under different circumstances would have been passed over by them without unkind, certainly without criminating, comment. But of the origin, the motive, and conduct of the prosecution, I shall say no more in this place, conscious as I am that time-certain unraveller of all mysteries-will eventually prove my entire innocence of any criminal intent or selfish purpose in the exercise of a strongly-implied power, imperiously demanded by every dictate of humanity-nay, even of charity and duty.

It is in evidence before the court that the Pacific squadron, commanded by the accused, anchored in the bay of Monterey early in the month of October, 1848. The extraordinary events which occurred on shore and afloat during my sojourn of about three weeks in that port, are fully recorded and before you, as they were indeed known to the world long before this court commenced its session.

The strongest of all the strange realities which succeeded the dis covery of the real "El Dorado," (in May, 1848,) was the depreciated value of that precious metal, gold. Even at San Francisco, the great commercial emporium of the North Pacific coast, as late as November, 1848, fine gold, which yielded $18 per ounce at the mint, was bought at $10 per ounce, and in the smaller towns for half that price, and in the mines ounce for ounce was sometimes exchanged for silver dollars.