When Mr Waterhouse was here a week ago, he measured the main streets, and ascertained the relative distances from the South Building and the center of the village to the spring below the Presbyterian Church; and the two springs in the rear of the Campus, and at the close of the examinations he & Mr. Percival manifested a very decided preference for the spring in the Botanical Garden. I enclose a copy of the report.

The Trustees determined on Saturday by a vote of 5 to four to subscribe the $100.000 rescued stock in the Bank. Gov. Manly was very decided in his opposition to the measure, deprecates very seriously the course pursued by the Board in the construction of new edifices, and still more the expenditure for Gas. I have not merely great respect but great affection for Manly and voted in opposition to his views with great reluctance. The vote was Barringer Bryan Holden , Moore & Swain for —Bragg , Courts, Hinton & Manly against subscription the Gov. having the casting vote. The Bank has agreed to make a permanent loan of $100.000 to the University to pay for the new stock at 6 per cent. If our dividends thereafter shall average 6 per cent, we cannot lose. We have all made poor investments, if with freedom from taxation, they shall fall below. If the Governor's plan of carting over funds in individual loans had produced we could by no possibility make 6per cent. Absolute punctuality cannot be secured in the payment of interest and the risk of loss in individual loans, is not less than the danger of defalcation in the management of the Bank. We cannot make six per cent nett, on individual loans, we may reasonably expect dividends to a larger amount. We could have sold our stock at 3 per cent immediately after the subscription.

Barringer unites with Manly in regretting the course pursued about building &c, &c. I made many enquiries about Gas and found some diversity of opinion. Mr Bryan apprehends danger to the eyes from its use. He says the expense in winter is about equal to Candle light & less in summer. Prof. Exillegible says it is the first experiment he supposes in the U.S. to introduce it into college buildingsbut argues very favorable results. K P. Battle and Mr Holden , who have it in their houses, think it will pay well both in the village and the college.

Percival went with me into the Gas Factory, and entered into various [conferences]. He is anxious to proceed at once and have the old buildings lighted up by the beginning of next session. I told him that in the first place, Mr Waterhouse must regard his contract, as subject to confirmation or rejection when presented to the Committee, and secondly that I did not think it would be proper to proceed by piece meal; that I desire to see minute specifications, and have full opportunity to examine them, before submitting them to the villagers, and that I did not think it advisable to light up the old buildings until the new were ready for occupancy. Judge Battle concurs with me in these views, desires that they may be communicated to you & Mr Cameron, & if approved that notice may be given to Mr. Percival.