War of the Rebellion: Serial 118 Page 0842 PRISONERS OF WAR AND STATE, ETC.

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WAR DEPARTMENT, Richmond, Va., March-, 1863.

All matters relating to the exchange of prisoners and flag-of-truce boats will be under the direction and control of Robert Ould, agent for the exchange of prisoners, subject only to the orders of the Secretary of War.

JAS. A. SEDDON,

Secretary of War.

BROWNSVILLE, TEX., March 1, 1863.

Honorable J. P. BENJAMIN, Richmond.

SIR: On the 20th ultimo I learned that one Henry Safford, formerly of Galveston, Tex., and lately from New York, had arrived at Matamoras with $50,000 in counterfeit Confederate money. I immediately notified General Bee of it and spoke with the Mexican authorities to have said Safford arrested. On the 26th a Spaniard named Manuel Lluro visited Brownsville and endeavored to negotiate the sum of $2,000 in paper which upon examination was found to be counterfeited. The bearer was arrested and in his voluntary statement asserted that he had received said paper from Safford. On the same day I visited Matamoras and succeeded in obtaining from the proper authorities an order for the arrest and delivery of Safford. Both he and Lluro are now at Fort Brown to be tried.

The Mexican Government is to receive (at the mouth of the Rio Grande) 40,000 stand of arms from New York which have been contracted for by J. Bustamente, an agent of said Government. As the arms are to be paid for on delivery and the Mexican authorities cannot dispose of the full sum needed I at the request of General Bee have spoken with the custom-house inspector (Mr. Zambrano) who has agreed to let us have part of said arms. The consignee who resides at Matamoras is also willing to contract with us. As soon as our object is accomplished it will not be amiss to forward the proper information to the C. S. agent at Havana that the French Government may be apprised of the neutrality of the United States. I shall leave here to-morrow for Monterey.

I have the honor to be, your obedient servant,

J. A. QUINTERO.

COLUMBUS, March 3, 1863.

Lieutenant General J. C. PEMBERTON:

Twelve Federal prisoners sent to Okolona to go North. Shall they pass? I have endeavored to stop this indiscriminate passing of paroled prisoners acting as spies.

DAN'L RUGGLES,

Brigadier-General.

VICKSBURG, March 4, 1863.

Colonel WADDY:

Colored prisoners from Indianola sent over to-day by 12 o'clock train. Ninety-four in all.

M. L. SMITH,

Major-General.