The wooden plow, the sickle, the thrashing stockade, and the winnowing fork are being discarded, and in their places are coming the improved machinery that has made a successful science of American agriculture. Once ventured, these people are quick to see the disadvantages of their old ways and the avantages of the new, to enable them to successfully compete with the new-comers.

Our agricultural-implement establishments are thoroughly equipped with the latest improvements in that class of machinery, and it is a most welcome fact that they find ready and extensive sale.

It is the testimony of dealers that more farming machinery has been sold in this Territory since the 1st of January last than during any five previous years. While this is due in part to the improved methods of cultivation, it also as clearly indicates the incoming of a large farming population comprehending the utility and accustomed to the use of the scientific appliances of systematic and successful agriculture. Rural people, singly, in caravans, and in colonies, are now a not uncommon spectacle coming over the eastern borders of the Territory. They move leisurely westward, as have hundreds of thousands of the Western people, until they reach a section of country that suits them, and then locate and begin in earnest the labor of creating new homes. They come with the gathered experience of similar ventures in their former homes, and at once become invaluable auxiliaries in the regeneration of this New West, and the organization of social, economic, and political forces, and in the creation and upbuilding of the new and prosperous State that is soon to be.

Contrary to the popular impression in the East, a very large propor tion of the lands of New Mexico are good agricultural lands, which will average well with those of any of the States East or West. A fair computation would put the mountainous portions at some 30,000,000 acres, the river valleys at 8,000,000, and the mesas at 40,000,000. On the mesas there are, of course, considerable areas that are impossible of cultivation, possibly 10,000,000 acres, while on the other hand there are in the mountainous districts many valleys and hill slopes at altitudes of 4,000 to 8,000 feet above sea-level, comprising some millions of acres, which are susceptible of successful cultivation, especially of all the small grains, all the common classes of vegetables, and of the hardier fruits. These valleys abound in the vicinity of the mining camps, which must always constitute for them a profitable market, while those valleys in turn by their vegetable products will materially contribute to the successful prosecution of mining by cheapening the cost of living and thus the cost of mining. So that at least one-half the area of New Mexico is susceptible of a high state of cultivation and successful farming. The river valleys especially are rarely equaled anywhere in productive energy.

When viewed in the light of the fact that in large portions of the Territory these lands are interspersed with forests of timber, vast deposits of coal, and quarries of excellent building stone, mines of all the precious and valuable metals, and a climate unequaled in salubrity and healthfulness, it will be apparent that New Mexico possesses rare attractions for the ambitious, energetic, industrious farmer and homeseeker.

STOCK RAISING.

The condition of the cattle industry has in some respects declined since my last report. While cattle are in better condition than last year, prices are lower, and there has been comparatively little move

ment-owners holding for better prices. This has produced a condition of stagnation which reaches beyond that industry itself, and to a degree affects the general condition of trade, cattle raising being one of the most important industries of the Territory. The number of cattle returned on the last year's (1886) assessment rolls is 916,940, and the average assessed value for taxation is $12 per head, aggregating $11,003,280. The wool,clip for the year, so far as ascertainable, is about 14,000,000 pounds, and the average price per pound 15 cents. The number of sheep returned at the last year's assessment is 1,702,287. Cattle and sheep constitute mainly the stock industry of the Territory. There are, in addition to sheep and cattle, 91,173 other domestic animals, assessed at $1,278,147.

The cattle industry of this Territory is assuming radically changed conditions from those that have heretofore characterized it. The incoming of agriculturists, and the devotion of an increasing area year by year to agricultural product, is gradually restricting the cattle range, and stockmen are finding themselves forced to the adoption of different methods, more in keeping with the self-sustaining varied industries of civilized communities. The system of great ranches is gradually giving way to that of small farms, and thus people, illustrating the organizing forces of schools, churches, and the higher forms of civilized life, are taking the place of nomadism peculiar to the cattle range of the frontier. Very many of those engaged in the cattle industry recognize the inevitable change of conditions, and are modifying their plans accordingly. Better grades of stock are being introduced, grasses and grains are being cultivated for feed, and the result will be that a far less area will be required to mature the same amount of cattle for market, and a larger profit will be realized through the increase in weight and improvement in quality of the meat. The prosecution of this industry will thus be rendered less vexatious in many ways, and more profitable not only to those engaged in it, but to the entire community. What is taking place here in relation to cattle raising is also true of sheep raising and all other branches of the animal industry, and New Mexico is gradually approaching, and in due time will be found upon, a plane in this respect equal to the most advanced States of the Union.

MINING.

Since my last report the mining industry of the Territory has taken on new and much improved conditions. There is less speculative activity, but more substantial development; less capitalization and stocking, and more attention paid to putting the mines into a condition for active production; less of hawking prospect holes on the market as mines, but, instead, going down on those prospect holes and making of them mines in fact by developing their wealth.

The cessation of the annual Indian raids, by the capture and deportation of the refractory Indians last year, by General Miles, has contributed largely to this change for the better in the condition of the mining industry. Another cause is in the increasing cultivation of the mountain valleys in the vicinity of the mining camps, whereby the cost of subsistence is materially reduced, and thus, in turn, a reduction in the cost of mining.

The average output of gold and silver for 1886, according to the estimates of gentlemen well informed in mining affairs of the Territory, was $3,850,000, divided between gold and silver in the proportion of one to five.

There have been many triumphs for the mining industry in this Territory during the year. Among the important discoveries was that of a true vertical contact vein in the Lady Franklin mine at Kingston, in Sierra County. Many had claimed, and with some apparent reason, that the best ore bodies there were those in line, which might come and ⚫ go at any time. But at 300 feet depth in this mine, which is centrally located with respect to a very large and important mining district, there has been found a large and uniformly mineralized vein of better average ore than has been found at any part of the irregular ore bodies. This development establishes beyond question the future importance and value of this camp. Public sampling works are now in operation at Kingston.

New and important discoveries have been made on both the North and South Percha.

The gold mines at Hillsborough, in that county, for a long time idle, are again being worked, and the output of bullion from the mill at that place is very respectable.

The Lake Valley mines and mill are again in active and successful operation with a constant and profitable output, with good promise of retrieving the once high repute of that camp.

In Socorro County, two large reduction establishments, the Billing Smelter and the Graphic Mill, are running day and night, mainly on ores from mines in the vicinity, and lixiviation works are in successful operation at Chloride.

There are several well-developed and producing mines in this county in the Magdalena and Water Cañon districts and in the immediate vicinity of the city of Socorro, which, with the very extensive and costly reduction plants now in successful operation there and the inexhaustible deposits of ore in sight, are destined to make that city the principal reduction center of the southwest.

In Southern Santa Fé County the great Cañon del Agua copper mine is again in operation after four years of idleness, and, with several gold and silver producers at Golden and other points in the vicinity, is adding new life and activity to the general mining industry of the Territory.

In Grant County, at Pinos Altos, Carlisle, Telegraph, the Peerless, Cook's Peak, Pyramid, and at Silver City, with its new custom silver mill, mining has taken on new activity and renewed prosperity, with every prospect of continuance and increase. Stein's Pass and Camp Vallines are two of the very important developments of the year in that county.

In Lincoln County, White Oaks has come rapidly ahead as a goldproducing camp, and the large companies interested there are increas ing their investments both in machinery and in the purchase of new mining properties in the vicinity. Nogal has also a new discovery, which is said to be of enormous wealth in gold, and a considerable city is already growing up in the vicinity.

In other counties, as Colfax, Rio Arriba, Bernalillo, and Doña Aña, there are also evident indications of renewed activity and prosperous development in the mining industry.

FORESTS AND THE PRODUCT OF LUMBER.

The forests of New Mexico are almost exclusively of pine, largely in the west and northwest, and confined generally to the mountainous regions. It is estimated that there are some ten thousand square miles

of pine forest land in the Territory, much of it of superior quality and all of it fairly good. The product of lumber from these forests is sold on the market, where accessible to transportation, at not much above the cost of eastern pine lumber, and is generally used for all ordinary building and economic purposes, railroad ties, timbering mines, &c.

The destruction of these forests by fires and for the general uses of lumber is very great, and demands the active intervention of the Government, if not for their preservation, at least for replacement by planting. This lumber is essential to the development of the country in various ways, especially in railroad building, bridge building, and mining. But the wholesale destruction now going on cannot but bring widespread disaster to climatic conditions, unless some regulation shall be established whereby they may be replaced by replanting with some varieties of timber that shall take the place of the trees destroyed.

EDUCATION.

There has been a marked improvement in the educational affairs of the Territory during the past year. There is a growing appreciation among the native people of the necessity and advantages of acquiring an education in the English language and in the American methods of thought and of business and general affairs.

A compulsory school law was enacted by the last legislative assembly, which, though crude, is a step in the right direction, and its general effects will be good. The number of public schools has been largely increased throughout the Territory, and the attendance improved correspondingly, as has also the general morale of the system. The publicschool system is assuming a condition of coherency which has not characterized it heretofore. The superintendents are generally intelligent, educated gentlemen, with good capacity for organization and devoted to their work, and the good results of that work are manifest in the reasonably rapid improvement, often under adverse circumstances, which is observable.

The good influence of this system is supplemented by the churches in their support of denominational schools in which all the branches of a good English education are taught.

The Catholic Church supports fifteen such schools in different parts of the Territory, as follows: Saint Michael's College, at Santa Fé, for boys; Las Vegas College, at Las Vegas, for boys; Mora Academy, at Mora, for boys; Academy of Our Lady of Light, at Santa Fé, for girls; Convent of the Immaculate Conception, at Las Vegas, for girls; Convent of the Annunciation, at Mora, for girls; Convent of Our Lady of the Sacred Heart, at Bernalillo, for girls; Convent of the Sacred Heart, at Albuquerque, for girls; Convent of Mount Carmel, at Socorro, for girls; Convent of the Visitation, at Las Cruces, for girls; Convent of Sisters of Mercy, at Los Alamos, for girls and boys; Convent of Sisters of Mercy, at La Mesilla, for girls; Academy of Sisters of Mercy, at Silver City, for girls and boys; Convent of Saint Joseph, at Taos, for girls and boys.

The capacity of these schools ranges from 40 to 300 pupils, and they are generally well patronized and successful.

In addition to these are three institutions distinctly for the education of Indian children-one at Santa Fé, under the auspices of the Catholic Church, and two at Albuquerque, one under the auspices of the Presbyterian Church, and the other supported by the General Government.

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The Congregational Church has under its auspices the University of New Mexico, at Santa Fé, with an Indian school attached; the Las Vegas Academy, at Las Vegas; the Albuquerque Academy, at Albuquerque, and the Congregational Mission, at Isleta.

The Presbyterian Church has an academy at Santa Fé, with an Indian mission school attached, and a denominational school at Taos.

The Methodist Church has the Methodist College at Albuquerque and the Methodist College at Las Vegas.

All these institutions are well patronized and in reasonably prosperous condition.

There are also a considerable number of excellent private schools throughout the Territory.

SCHOOL LANDS.

The usual provision for school lands applies to this Territory, as to all others. But they being in no sense the property of the Territory, or under its jurisdiction, no steps have been taken or can be taken for their utilization. Ordinarily the Territory, on admission into the Union, would be entitled to 4,305,920 acres for school purposes, but this amount will of course be materially diminished by the appropriation of some millions of acres to the satisfaction of grants made by the Spanish and Mexican Governments prior to the acquisition of the country by the United States. There will still be left, however, over 3,000,000 acres to the school fund of the State, sufficient for the very handsome endowment of schools, even after discarding from the estimate the worthless and inaccessible lands lying in mountain ranges, if the trust shall be honestly and properly administered.

LABOR SUPPLY.

The labor question has not reached New Mexico as in any sense a disturbing issue, and is not likely to for many years to come. The opportunities for engaging, in proprietary ways, in mining, agriculture, trade, and the professions are so general that there is no superabundance of labor seeking employment. It is hoped that the legislation of the Territory and the State will be such as to offer a liberal inducement in the form of exemptions of rural homestead property from taxation and distraint, and thus encourage the establishment of a strong and thoroughly self-sustaining rural population, and correspondingly discourage the concentration of people without capital in the cities. This suggestion is based on the self-evident proposition that one man cultivating a farm in the country and producing something to eat and to sell is worth to the State a score of men in the city producing nothing, but dependent on the mutations of trade for daily employment and wages; and on the other equally self-evident proposition that a community is never so free from public turmoil, from strikes and labor isrues, as when a large proportion of its members are engaged in agriculture on their own lands.

CONDITION OF THE INDIANS.

Since the subjugation and deportation of the Chiricauhua band of the Apaches by General Miles, a year ago, there have been no Indian disturbances in this Territory.