War of the Rebellion: Serial 021 Page 0475 Chapter XXVII. CORRESPONDENCE, ETC.-UNION.

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for an answer or no answer. I think the paper frivolous and designed to make an investigation into our plans and an observance of our force.

Respectfully,

T. WILLIAMS,

Brigadier-General of Volunteers.

[Inclosure.]

UNITED STATES STEAMER WINONA, Off Rodney, Miss., June 5, 1862.

AUTHORITIES OF THE TOWN OF RODNEY:

You are doubtless aware that the town of Grand Gulf was fired upon a short time since by some of the vessels of the United States Government as a punishment for permitting a battery to fire upon some of our transport steamers while passing down. I deem it my duty to inform you that should any battery or artillery fire upon any of our vessels while passing up or down from or near the town of Rodney the punishment for the offense will be visited on the town. We are not here to war upon unarmed or peaceable persons, and we would deprecate any event compelling us to fire upon the property of inoffensive people.

Very respectfully, your obedient servant,

ED. T. NICHOLS,

Lieutenant Commanding and Senior Officer Present.

HEADQUARTERS DEPARTMENT OF THE GULF, New Orleans, June 13, 1862.

The return of the Citizens' Bank to General Orders, No. 40, has been carefully examined, and the various claims set up by the bank to the funds in its hands weighed.

The report finds that there is to the credit of the Confederate States $129,090.94. This of course is due in praesenti from the bank. The bank claims; one or two are sufficient:

Confederate States Treasury notes are not due till six months after the conclusion of a treaty of peace between the Confederate States and the United States. When that time comes it will be in season to set off such claims. Again, the United States being entitled to the credits due the Confederate States in the bank, that amount must be paid in money or valuable property. I cannot recognize the Confederate notes as either money or property. The bank having done so by receiving them, issuing them, banking upon them, loaning upon them,, thus giving them credit to the injury of the United States, is estopped to deny their value.

The "tin box" belonging two an officer of the supposed Confederate States were received in the usual course of business; were doubtless some of them, perhaps largely, received in Confederate notes; but for the reason above states can only be paid to the United States in its own constitutional currency.