The Constitution which had been framed at Topeka without the color of law, had been submitted to Congress and rejected. Those who advocated it had, however, affected to organize a State government, and a body of men calling themselves the Legislature of the State of Kansas, had met at Topeka, and were dispersed by Col. Sumner under the orders of Wilson Shannon, then Governor of the Territory. They assembled again during the administration of Gov. Walker, when he succeeded in dispersing them partly by persuasion and partly by threats. Their whole conduct was revolutionary, and in defiance of the regularly constituted authorities. These were the men with whom Gen. Denver now had to deal. They had succeeded in carrying the Territorial Legislature, and many of them declared their intention now to be to supplant the Territorial government and put their Topeka scheme into operation.

This state of affairs caused the acting governor great solicitude. To pursue the course adopted by his predecessors, and disperse them by force, would still further inflame the public mind; in all probability precipitate their action, and effect the very object he most desired to avoid. After mature reflection he determined quietly to await further developments, and take no step in the premises until some overt act should be committed which would justify him in proceeding to extremities; but at the same time hoping that a just sense of their official obligations might induce them to forego their resolution and abandon such treasonable intentions. The result showed the correctness of his conclusions. Meeting with no resistance, the "Topeka Legislature," after maintaining a vagrant existence for a short time, dissolved, and the very name became a reproach and a byword. Thus was this most dangerous difficulty avoided.

Upon the resignation of Gov. Walker Gen. Denver was nominated and confirmed as Governor of the Territory.

The members of the Legislative Assembly were almost totally without experience in legislation. They were, for the most part, men of strong passions and bitter prejudices. Nearly all of them had been in arms, at some time or other, against the regularly constituted authorities. Very few of them but had denounced the acts of former legislatures as "bogus," and they now sought to retaliate on their political opponents the wrongs which they conceived themselves to have suffered. Speculation, too, was rife; and all sorts of charters were granted for banks, town companies, ferries, bridges, &c. &c. His desire to protect the public interests, and to prevent legislation from exceeding the limits prescribed by the Constitution of the United States and the laws of Congress, induced the acting Governor to interpose the executive veto much oftener than he would have desired.

In the exercise of the veto power so often, he exhibited that firmness for which he is so noted. Every scheme of plunder or unconstitutionality received his disapproval. Many of them, owing to the utter recklessness of the Legislature, passed, notwithstanding his disapproval.

The following Message, vetoing the bank bill, cannot fail to command the admiration of every friend to a sound constitutional currency. It is alike worthy the man and the important subject of which he treats:

TO THE COUNCIL-GENTLEMEN: Herewith I return without approval a bill entitled "An act establishing certain Banks in Kansas Territory."

In the investigation of the subject it may be as well first to inquire whether the legislature of this Territory has the power to charter banks and authorize them to issue notes or bills of credit for a circulating medium. After a struggle of more than forty years, Congress finally decided that they had not the power to establish a national bank, and there are very few at this day who do not endorse the wisdom of that decision. The power of Congress to legislate for the people of the Territories is not expressly given by any provision in the Constitution, but it springs from that obligation imposed on every government to afford protection to her own citizens. In order to carry out this obligation, Congress has the right, anywhere within the boundaries of the American Union, and not within the limits of an organized State, to make such rules and regulations as may be necessary for the government of the people residing there, not inconsistent with the provisions of the federal Constitution. In the exercise of these powers, Congress delegated, with some reservations, their authority over such subjects to the legislative power of the Territory. The language of the organic act, section 24, is very explicit, and reads as follows:

"The legislative power of the Territory shall extend to all rightful subjects of legislation consistent with the Constitution of the United States and the provisions of this act."

The Constitution gives to Congress the right "to exercise exclusive legislation in all cases whatsoever" over the District of Columbia, but even there it was limited by the deed of cession. The other places to which such right extends are "forts, magazines, arsenals, dock-yards, and other needful buildings." In all else, the powers of Congress are expressly defined or grow out of some absolute necessity, and it has been determined that the power to charter a bank is neither a necessary nor incidental power.

Did Congress, then, intend by the organic act to confer authority on the legislative power of this Territory which she did not herself possess? No one will pretend for a moment that such was the intention, for it is expressly declared otherwise. If this power cannot be found to have been conferred on Congress by the Constitution, nor on the legislative power of this Territory by the Constitution and organic act, under what authority is it proposed to pass the bill before me?

The Constitution further declares that no state shall "coin money, emit bills of credit, make anything but gold or silver a tender in payment of debts;" and can it be presumed that, when the States were debarred the right to exercise such powers, the Territories would be allowed to do so? If there can be a doubt about it, a reference to the tenth article of the amendments to the Constitution would set that doubt at rest. It reads as follows:

"The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively or to the people."

The powers now sought to be exercised are prohibited to the States, and Congress has decided that they have not been delegated to the United States. Under and by what authority, then, can the Territory assume such powers?

Passing by this question of power, I now proceed to examine the bill itself.

It authorizes the banks proposed to be created " to purchase, possess, use, and sell any property the same as individuals." (See section 1.)

It authorizes them, and declares that "they shall have power to use as specie all sight drafts or certificates of deposits made by responsible speciepaying banking-houses in this Territory, or in St. Louis, Chicago, Cincinnati, Philadelphia, Boston, or New York. (See section 18.)

Section 19 provides that "no bank shall at any time suspend or refuse the payment in specie of any of its notes," &c.

3d. It would be a bad policy to give any moneyed institution the power to interfere in the every-day affairs of the people, and flood the country with paper currency which they could "use as specie," but which the people at large could not.

With these objections, the bill is herewith returned to the house in which it originated. J. W. DENVER, Governor.

The Legislature, within three days of their adjournment, passed a bill calling a convention to form a new Constitution. The Governor had three days, under the organic act, to consider all bills. As there was not that time between its reception by him and its adoption, he pocketed the bill. The Legislature became furious, and sent a committee to him to get him to veto it, in order that they might pass it over his head: this he declined doing. Thus was a call of a convention defeated, and a precipitation of the Kansas question again upon Congress at the late session avoided. The Legislature, however, passed an order before the adjournment, that the bill was a law any way. Under it the notorious Leavenworth convention met and adopted what is known as the Leavenworth Constitution. So conclusive, however, was it that the act of the Legislature calling it was not law, as was afterwards decided by the Attorney General of the United States, that the bantling of the Leavenworth Convention excited no consideration, and it fell even into more utter contempt, if such a thing could be, than its Topeka precedent. So contemptible was it, that even the Kansas shriekers in Congress could not make it the pretext for the least agitation, for they have never made an effort to admit Kansas under it.

Immediately after the adjournment of the Legislature, Governor Denver, having refused to commission the officers of the militia provided for in the bill passed over his veto, on the ground that it was in violation of the Constitution of the United States, as it proposed to make the civil subordinate to the military power, General James H. Lane attempted to carry the act into effect any how, and proceeded to enrol the militia. One of his captains came into the executive department to enrol the gentlemen there engaged. Governor Denver asked him for his authority; he produced a paper purporting to be instructions to enrolling officers, signed by Lane. The Governor then asked him if that was all he had. He said No, and produced another paper, purporting to be a commission, also signed by Lane. After examining them, the Governor told him it would be necessary for him (the Governor) to retain the papers. He remarked that if there was anything wrong about the papers, he did not want them. The Governor replied they were wrong; that no person had a right to issue commissions but the Governor, and if Lane was attempting such a thing, these papers might be necessary to prove it on him. He then went away, and being laughed at by his companions outside, as a great captain to permit the Governor to keep his papers, he returned and asked the latter to give them back to him. He said, if the Governor merely wanted to arrest him, and would give him his papers, he would go on the street and enrol somebody there, in order that evidence might be procured against him. This was declined by the Governor, who told him he was not after him, as he was a mere instrument in the hands of others. Lane's captain then retired, and the Governor, upon these papers, issued a proclamation warning the people against Lane's proceedings, which effectually broke them up. This so exasperated Lane that he made a violent assault, through the papers, on Governor Denver, which his friend Redpath said was intended to force the Governor to challenge him, in the event of which it was intended that the Governor should be assassinated before the meeting. At that time Lane and Redpath were bosom friends; but afterwards quarrelled, and hence the developement of the cowardly and murderous purpose of the gallant Lane.

The difficulties in Southern Kansas were of the most perplexing character. The settlement of these forms the most striking incident in Governor Denver's executive career. They had been of comparatively short and rapid growth, originating about Land Claims, but were seized upon by designing nen for the purpose of making political capital. Some of the incidents are as follows: In the latter part of August, '57, James Curry, a Free State man, shot Lubbsman, a Pro-Slavery man, in a difficulty growing out of the latter's refusal to answer whether he was a Free or Pro-Slavery man.

About the 10th of Dec. '57, a squatter's court convened at Little Osage, presided over by a Rev. Jno E. Stewart, aided amongst others by the notorious Jas. Montgomery and a band of about thirty young men composing the latter's company of marauders, who arrested several Pro-Slavery settlers, amongst them a preacher, a post-master, and the preacher's son and his daughter, the latter being compelled to cook for the court. They were fined by the Court, and disseized of their crops, hogs, horses, cattle, and claims. The notes of those whose property would not cover the fines were taken, and they banished from the Territory. Many of them, for fear of their lives, went. Some of them made sworn complaints to the proper legal authorities, and the deputy Marshal went to arrest these extra-judicial usurpers. He was told by them that the laws were all repealed by the extra Legislative session called together by Acting Gov.