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Office Supt Indian Affairs
San Francisco Cala.
May 19 1859

Hon Wm M. Gwin

Sir:
In answer to your inquiries of this morning referring to the letters of Sub Agent Lewis and Eugene Kelly & Co., I have to say that the appropriation for Indian Service in Cala. for the fiscal year ending 30th June next, is $202, 000— no part of which has yet been permitted for expenditure.

The service has been conducted upon credit based upon the good character for promptfulness which the Department has hitherto bourn in Cala., and the individual credit of the agents.

In addition to this I have made some purchases myself, for which I have been compelled to give my individual note. (see letter of Eugene Kelly & Co.) It was expected that Mr McDuffie the newly appointed Superintendent would on his arrival here (have