War of the Rebellion: Serial 127 Page 0774 CORRESPONDENCE, ETC.

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governments. This we have the right to assert, and this, with the blessing of God, whose favor we implore, we shall ultimately obtain.

JOHN GILL SHORTER.

CONFEDERATE STATES OF AMERICA WAR DEPARTMENT,

Richmond, December 2, 1861.

Hon. C. G. MEMMINGER,

Secretary of the Treasury:

SIR: This Department has employed Mr. G. H. Giddings as agent to purchase arms and munitions of war, and he has made arrangements for their purchase in Matamoras. To provide funds for that purpose it is deemed best to remit cotton to that place to be sold by Mr. Giddings or by Mr. Charles Stillman. If, therefore, you can authorize Mr. Giddings to purchase for account of the Treasury 10,000 bales of cotton under the recent authority vested in you by Congress, for remittance to Matamoras, the proceeds of the cotton there sold would furnish the money required for paying for the arms. Mr. Giddings has also made an arrangement with Messrs. A. Uhde & Colonel, a commercial firm in Matamoras of which the English consul is partner, for advances on cotton to the amount of 10 cents per pound if it is found more advisable to ship than sell the cotton; and authority will be required from you to make this disposal when found by Mr. Giddings more advantageous than sale in Matamoras. The purchase of cotton by Mr. Giddings to be made for bonds to the extent of three-fourths of the price, and Treasury notes for the remainder, is said by him to be entirely practicable at rates which will place the cotton in Matamoras, all charges included, at a cost of not more than 12 cents per pound. I will in the course of a day or two make requisition on your for the amount requisite to meet the immediate payments falling due for arms and lead that must already have reached Matamoras.

I am, your obedient servant,

J. P. BENJAMIN,

Secretary of War.

CONFEDERATE STATES OF AMERICA WAR DEPARTMENT,

Richmond, December 2, 1861.

His Excellency FRANCIS R. LUBBOCK,

Governor of Texas:

SIR: The Ordnance Bureau of this Department has employed Mr. G. H. Giddings, of your State, as its agent for the purchase of arms. Mr. Giddings has made arrangements for such purchases in Matamoras, payment to be made in the U. S. bonds now held by your State, which, as he thinks, can be used for that purpose, if you consent. The object of this letter is to inform you that if you will make use of the U. S. bonds in your possession in the purchase of arms to be approved of by Mr. Giddings, and at prices satisfactory to him, this Government will receive the arms from you at cost and charges, and pay for them in its own 8 per cent. bonds. By this arrangement you will succeed in exchanging your U. S. bonds, now useless, and bearing only 6 per cent., for the bonds of the Confederate States bearing interest at 8 per cent., and receive the interest regularly and punctually. I hope Your Excellency may deem it consistent with your sense