War of the Rebellion: Serial 128 Page 0236 CORRESPONDENCE, ETC.

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CONFEDERATE STATES OF AMERICA, WAR DEPARTMENT, Richmond, Va., December 13, 1862.

Major J. C. JOHNSTON,

Athens, Ten.:

MAJOR: You are hereby instructed to report to General J. E. Johnston, and under his directions select a suitable location for a camp of instruction for Kentucky recruits. You are to receive and muster into the Confederate service such Kentuckians as wish to join it, to afford them shelter and instruction, and otherwise properly provide for them for a reasonable time, giving each of them the selection of the Kentucky regiment to which he will attach himself, and transportation to it when the selection is made. In case they prefer it, when enough recruits are assembled to form a company they shall be organized into a company under the conscript act by the election of their officers, and the company attached to whatever Kentucky battalion of the line they may elect not having ten companies.

You are directed to observe a conciliatory course toward recruits, and to induce as large numbers as possible to avail themselves of the benefit of your camp. The camp should be located as near the Kentucky line and in as plentiful a region as is safe.

Report any case of difficulty immediately to this Department. Except as above directed, you are instructed to observe General Orders, No. 82, herewith inclosed. *

Very respectfully, your obedient servant,

JAMES A. SEDDON,

Secretary of War.

CONFEDERATE STATES OF AMERICA, TREASURY DEPT., Richmond, December 15,1 862.

Hon. JAMES A. SEDDON,

Secretary of War:

SIR: I have received to-day copy of Colonel Gorgas' letter of 5th December, sent me in yours of the 12th instant, in relation to money required to meet purchases of arms in Europe. As far back as 28th May last I notified your Department that the absence of commerce had cut off the supplies of sterling exchange, and that some arrangement had better be made between the War and Navy Departments for the appropriation of the limited amount which could be purchased. No such arrangement was made, and the requisitions of the Navy Department absorbed what was then on hand. Since that time I have purchased all the exchange which could be had, paying as high as $3 for $1. Bonds were then sent over to Europe to raise funds for the use of both Departments, of which no account has yet been received; and to pay for the purchases ordered by the Quartermaster-General a letter of credit in advance of funds was sent to our bankers in favor of Major Ferguson for $500,000. This credit will probably exhaust all the funds which will be at our credit from bills of exchange upon Major Ferguson's arrival in Europe. Since that time we have continued to purchase all the exchange which has been offered, and have added an authority to our agent to make use of the $2,500,000 of coin of the Bank of Louisiana, which was seized for the use of the Government. You will perceive, therefore, that although without any knowledge of the wants of Colonel Gorgas or his contrasts, this Department has used every exertion to place funds in Europe. Permit

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*See p. 160.

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