War of the Rebellion: Serial 128 Page 0543 CONFEDERATE AUTHORITIES.

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the sum referred to from the Messers. Erlanger in advance of the proceeds of the loan. The letters you have shown me from the Secretary of War, dated subsequently to the new orders referring you for guidance, & c., to Major Huse, fully show that the Secretary still anxiously relies on the complete execution of the arrangements entered into with you; nor do I see any reason whatever why those arrangements cannot be fully carried out and in concert between you and the officer to whom you were referred, provided each frankly desires to do so. In my conversations with you I have certainly seen nothing of any other desire on your part. Since the receipt of your letter Major Huse also called on me on the subject to which it refers. The chief difficulty on his part seemed to be about furnishing the money, as nothing, according to his impressions (and I think them correct), can be looked for further from the loan earlier than June, if then. But the general tenor of his conversation showed that he considered the new orders to him from the War Department superseded, or in some way would overrule, the separate duties intrusted to you, and I should entertain, therefore, equally with you an apprehension that without further and explanatory orders from the Department there is not likely to be that concert which the Department had certainly full right to anticipate. Still, I cannot undertake to cancel your contract with the Department. Were I to do so I should run great risk of disappointing expectations from it on which the Secretary manifestly and greatly relies, and I so told Major Huse. As to further advances of money on the part of the Department I regret, so far as I am concerned, I can say no more than so far as anything may rest with me I shall, until otherwise advised by the Secretary, hold that the engagements entered into with you are entirely to be ranked as one of the primary events of the Government.

Yours, very respectfully, & c.,

J. 22A AUSTIN FRIARS, LONDON, May 5, 1863.

[Hon. JAMES A. SEDDON,

Secretary of War:]

MY DEAR SIR: Having written an official letter to you as Secretary of War by this conveyance, it may surprise you that I should send this in addition. I have, however, conferred very freely with the Hon. J. M. Mason, and it is at his suggestion that I have in that letter confined myself to a mere statement of facts and omitted to draw any inferences whatever. He further advises that he cannot see that it would be the least out of place for me to write you privately my views as to the management of the Government business here, and suggests such action as it seems to me would best subserve the public interests. I should feel if I failed to do so that I had omitted to do my duty. You will of course attach tot them only as much importance as they may seem to deserve, and I flatter myself (as I have done nothing since my arrival here to lessen your confidence in me) that you will at least give me credit for integrity of purpose in what I say, and not attribute it to personal interest. Since my meeting with Major Huse I have been very much embarrassed as to the course I ought to pursue, especially after Mr. Mason's refusal to advise me to cancel the contract with the Government. At one time I concluded that I would, after investing the $ 55,000 advanced me by him in the