War of the Rebellion: Serial 042 Page 0254 W. FLA., S. ALA., S. MISS., LA., TEX. N. MEX. Chapter XXXVIII.

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the information of Lieutenant-General Smith. Since the date of that letter, other information which I deem reliable has been communicated to me, which forces the conviction upon my mind that the species of traffic alluded to has been, and may continue to be, carried on through the enemy's lines, which, if not put a stop to, will lead to disastrous results.

You will pardon me for making this private communication; my motives, I am sure, you will properly appreciate, and I remain, Your Excellency's most obedient servant,

S. HART.

[Sub-Inclosure.]

SAN ANTONIO, TEX., September 15, 1863.

Dr. J. M. HADEN,

(Surgeon-General, Trans-Mississippi Dept.), Shreveport, La.:

MY DEAR SIR; I am informed by General T. A. Washington, of this city, that a letter was received here by Mr. McCarthy (of firm of Duff & McCarthy) from Lieutenant-Colonel Broadwell, to the effect that if Major Washington would make out certified accounts of certain stores, either contracted for or needed by him (in which, I suppose, Mr. McCarthy was concerned), he, Lieutenant-Colonel Broadwell, would authorize Mr. McCarthy to export the cotton, through some foreign party, by way of the Mississippi River, under condition that the cotton should not be sold at New Orleans. I am further informed by a young man of intelligence in the employment of Major Bloomfield, chief quartermaster of this district, that coffee has recently been procured by the same sort of commerce from within the lines of the enemy, and that the cotton to pay for it was actually sent to and sold at Saint Louis. The details of these matters may not have reached me correctly, but I am compelled to believe that some system of commercial intercourse is being inaugurated with parties inside of the enemy's lines, which implies some sort of understanding with their authorities. Major Washington, but on inquiry he learned it had been forwarded to Mr. McCarthy, at Brownsville,b ut he saw the letter when here himself.

At first I thought I would write to General Smith, who may not be aware of these matters; but, as it is a matter in no way connected with my duties, it occurred to me that he might not regard it as proper for me to do so.

When I was in Richmond last fall, it happened to come within my personal knowledge that propositions of a similar character looking toward a commerce in cotton and supplies, to be carried on by consent or connivance on the part of the authorities of both Governments, were made tot eh Departments at Richmond, and were strongly urged by some of the heads of the supply departments. They were, however, referred to the President himself, and he at once and without hesitation put a peremptory stop to all such negotiations, condemning all intercourse of the kind in the most decided manner.

it has occurred to me that it might be well for this to be brought to General Smith's knowledge; in fact, it might save him from difficulties hereafter, and, if you think so, I now make the statement in order that you may communicate it.

I do not desire, however, that this information should be used where it could do injury to Colonel Broadwell, or any one else, whose motives, I am aware, may be entirely above suspicion. Several high officials, as