War of the Rebellion: Serial 127 Page 0326 CORRESPONDENCE, etc.

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Federal Government collect duties before breaking bulk. No definite instructions sent to British cruisers, as so much depended on circumstances. Blockade only recognized when effective. Regarding letters of marque, government is of opinion Southern Confederacy must be recognized as belligerents. Cotton advanced one-eighth to one-fourth of a cent. California gold being diverted from New York to London. Faulkner and Dallas arrived in New York.

D. G. DUNCAN.

AN ACT to increase the military establishment of the Confederate States and to amend the "Act for the establishment and organization of the Army of the Confederate States of America. "

The Congress of the Confederate States of America do enact, That the President shall be authorized to raise and organize, in addition to the present military establishment, one regiment of cavalry and two regiments of infantry, whenever in his judgment the public service may require such an increase, to be organized in accordance with existing laws for the organization of cavalry and infantry regiments, and to be entitled to the same pay and allowances provided for the same respectively.

SEC. 2. That the five general officers provided by existing laws for the Confederate States shall have the rank and denomination of "general," instead of "brigadier-general," which shall be the highest military grade known to the Confederate States. They shall be assigned to such commands and duties as the President may specially direct, and shall be entitled to the same pay and allowances as are provided for brigadier-generals, and to two aides-de-camp, to be selected as now provided by law. Appointments to the rank of general, after the Army is organized, shall be made by selection from the Army.

SEC. 3. That the President be authorized, whenever in his judgment the public service may require the increase, to add to the Corps of Engineers one lieutenant-colonel, who shall receive the pay and allowances of a lieutenant-colonel of cavalry, and as many captains, not exceeding five, as may be necessary.

SEC. 4. That there be added to the Quartermaster-General's Department one assistant quartermaster-general, with the rank of lieutenant-colonel, and two quartermasters, with the rank of major; and to the Commissary-General's Department one assistant commissary, with the rank of major, and one assistant commissary, with the rank of captain; and to the Medical Department, six surgeons and fourteen assistant surgeons.

SEC. 5. That the President be authorized to appoint as many military store-keepers, with the pay and allowances of a first lieutenant of infantry, as the safe-keeping of the public property may require, not to exceed in all six stores-keepers.

SEC. 6. That there be added to the military establishment one quartermaster-sergeant for each regiment of cavalry and infantry, and one ordnance-sergeant for each military post, each to receive the pay and allowances of a sergeant-major according to existing laws.

SEC. 7. That there may be enlisted for the Medical Department of the Army, for the term already provided by law for other enlisted men, as many hospital stewards as the service may require, to be