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Oregon improved rapidly. Numerous ships discharged and loaded cargoes in the harbors, gold was discovered in several southwestern counties, and roads and bridges were constructed. More than a score of academies and two universities came into existence. A fire destroyed the state house at Salem on December 30, 1855, and the seat of government was moved to Corvallis; but the legislature, meeting in the latter city in 1856, decided to transfer the capital back to Salem, where it has since remained.

The slavery controversy retarded the movement toward statehood, presenting the main obstacle to unity at the constitutional convention in 1857. Finally a determination of the issue was left to a popular vote to be taken concurrently with the vote on the constitution itself. At a special election on November 9, 1857, the people ratified the document and defeated by a large majority the proposal to permit slave-holding. The largest majority of all, however, was given to an article prohibiting the admission of free negroes into Oregon. Though this provision was a dead letter for many years, only in 1926 was it taken out of the constitution.

The bill granting statehood to Oregon was signed by President Buchanan on February 14, 1859, but the news did not reach Portland until March 15. By noon of the next day the announcement found its way to Oregon City, where it aroused little excitement. "A few persons talked about it with languid interest," said Harvey Scott, "and wondered when the government of the state would be set in motion." But Stephen Senter of Oregon City, feeling the news ought to be speeded to Salem, undertook to act as messenger, and like Paul Revere rode over miry roads and through swollen streams, spreading the tidings that Oregon was a State. The legislature was convoked and the organization of the state government completed on May 16, 1859.

The brilliant and ambitious Edward Dickinson Baker came up from California to stump the State for his old friend Lincoln and for himself as United States Senator. Eloquent beyond most Pacific coast public men of his time or since, he caused the congregated pioneers to wonder that such glorious speech could come from mortal mouth. He was elected, but soon joined the Army and made a final dramatic appearance before the Senate in a colonel's uniform. He was killed in the early months of the Civil War while leading a charge at Ball's Bluff. Little Willie Lincoln at the White House commemorated him in a poem, and the city of Baker and Baker County were named for him.

In general, Oregon's part in the Civil War was confined in the main