War of the Rebellion: Serial 127 Page 0418 CORRESPONDENCE, ETC.

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these inquiries is, that although these works may be constructed in from six weeks to two months, yet, in view of the difficulty at this time of procuring either men or materials for such a work, the companies concerned could not bind themselves to complete the work in less than three months from the day when the arrangement with the Government shall be made. Second. To the second inquiry I reply that $60,000 in money or in the bonds of the Confederate States would greatly facilitate the early construction of these works, but even $50,000 of the same funds would enable them to construct them within the three months specified. Third. This amount, if so advanced by the Government, the railroad companies could refund in annual installments of 10 per cent., payable in tolls and fares for transportation done for the Government so far as the same shall be due at the date when each installment shall be due, and in money or C. S. securities to the extent that the said tolls and fares shall fall short of any installment at the date when it shall be payable, the whole balance of the amount so advanced by the Government, with legal interest thereon from the date or dates of such advancement, to be repaid to the Government at the expiration of three years after the termination of the existing war.

Asking the favor of a reply as early as may be convenient to you,

I am, with much respect, your obedient servant,

P. V. DANIEL, Jr.,

President Richmond, Fredericksburg and Potomac R. C. Co.

(In behalf of the companies concerned.)

NEAR GAINESVILLE POST-OFFICE,

Prince William County, Va., July 2, 1861.

Hon. L. P. WALKER,

Secretary of War:

SIR: At the hands of Mr. G. B. Lamar I am just in receipt of your letter of yesterday's date, and note the association and trusts therein confided to me. * I accept both. Although the concluding paragraph of your letter is comprehensive in application, it does not cover the latitude I asked for-I. e., that you would empower me to fit up any vessel I might secure for the conveyance of arms for the State of Georgia with military stores for the Confederate states, to wit, leather, tin, copper, shoes, woolen stockings, flannel, coarse cloth, buttons, surgeons' stores, &c. This privilege would enable be to control an entire vessel and make superior arrangements for her descent upon the coast, and the division of the freight money could be equitably made. My plan would be to ship the cargo as British property, under a British flag, with a clearance for the free port of Saint Thomas or to Matagorda, where the cargo could be deposited in default of an open Southern port, to which the ship-master would by driven for correction of chronometer or for water until warned off. It will greatly facilitate our common interests if you will grant me this authority. The surveillance at all points of our frontier is so great that it will not be safe to carry your letter with me. I therefore shall destroy, after committing its contents to cipher, and rely upon my fiend Mr. Anderson for recognition by Mr. Huse. It will be well, however, in the event of the former being absent, that you give me some password or the date and

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*See Series II, VOL. III, p. 687.

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