The policy of the Mexican government has been to encourage in certain localities the erection of pueblos, or towns, and for this purpose they have made grants of land to the local authorities, or municipalities, within certain defined limits, to be regranted upon application, in lots of fifty or one hundred varass, as the case may be, to persons declaring their intention to settle and to do business in the town. For these grants to individuals a certain sum of money is paid, which goes into the treasury of the municipality. The magistrates, however, without special permission, have no power to grant lots of land within a certain number of feet of or below high-water mark. The power is reserved to be exercised by the governor of the province. It being necessary for the convenient landing of ships, and for the discharging and receiving of their cargoes, that the beach in front of the town of San Francisco should be improved with wharfs, etc., etc., and that titles should be granted to individuals who otherwise would make no durable improvements. As magistrate of the town, in compliance with the request of numerous citizens, I solicited from General Kearny, the acting governor, a relinquishment, on the part of the general government, of the beach lands in front of the town in favour of the municipality, under certain conditions. This was granted by the Governor, who issued a decree dated 10th March, permitting the sales by auction of all such grounds adjacent to the water-side as might be found adapted to commercial purposes, with the exception of such lots as might be selected for the use of the United States government, by its proper officers. The sales accordingly took place, the lots were eagerly purchased, and the port has already become a place of considerable commercial activity.