Financial History of Oregon 405 be had. On October 20, 1864, Governor Gibbs was called upon by Major General Irwin McDowell, — commanding the Depart- ment of the Pacific, and acting under the authority of the War Department, — for a regiment of infantry, to be mustered into the service for three years, unless sooner discharged. This meant a draft with the alternative of raising the quota by enlistment. A state bounty as an inducement to secure enlistments had been suggested to Governor Gibbs by Brigadier General Al- vord, commanding the District of Oregon. The legislature was in session, though just about to adjourn. The Governor immediately on receiving the telegram from General McDow- ell sent in a special message announcing this call for a new regiment of infantry and suggested the passage of an act for the payment of a bounty for enlistment. There was no hesi- tation on the part of the legislature. A bounty of $150 to each volunteer enlisting for a term of three years was provided. This sum was to be paid in three installments of $50 each ; the first at the time of enlistment; the second at the end of the first year of service ; and the third at the expiration of service. The payment of each installment was in the form of a state bond issued to the claimant, due in twenty years and bearing interest at seven per cent, payable semi-annually. The principal and interest were to be paid in coin. A state tax of one mill was to be levied annually for securing funds to pay interest and principal. Whenever a surplus of $10,000 was thus accu- mulated from this tax it was to be used in redeeming bonds offered at rates not exceeding par value. 1 iThe following are the quotations from the letter of General Alvord used by the Governor in his special message of Oct. 20, 1864, asking for the passage of a bounty law : "For the defense of the frontier against Indians, it is necessary that the present military force in the district of Oregon should be maintained. I have been compelled to reduce Forts Colville and Lapwai to one company each, which is too small a force. The 1st Oregon Cavalry has performed the past summer efficient and admirable service in that part of Oregon south of the Columbia river and east of the Cascade Mountains. Traversed in every direction by thousands of miners the last summer, the presence and activity of the troops has been of the utmost importance, in protecting that region against the Snake Indians. I feel that it is very important for the public service, as I have continually repre- sented to you for a long time, that the legislature of Oregon should pass a law giving bounty to volunteers. Every state has passed such laws." Judge M. P. Deady, the Oregon correspondent to the San Francisco Bulletin, in his letter of October 22, made the following comment on this matter: "A few days since the Governor of this state received a telegram from Gen. McDowell calling for 1,000 men to take the place of the Oregon Cavalry, now about being mustered out of service. In other words, the draft was ordered in Oregon with the alternative of raising the quota by enlistment. The Governor at once sent a special message to the Assembly recommending the passage of a law for paying bounties for enlistment. The military committees went to work, and by midnight of the next day an act was passed appropriating $200,000 and offering a bounty of $150 to the man." See text of this act, "Acts and Resolutions, 1866, Appendix, "Unpublished Laws of 1864," pp. 98-104.
