War of the Rebellion: Serial 128 Page 0600 CORRESPONDENCE, ETC.

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Major Huse, I have endeavored to give you such facilities as I could readily afford. I have regretted the embarrassments which have grown up in the relations of Major Huse and yourself, and that distrust on you part and jealously, or perhaps a desire to engross the whole business of the Department on his side, have taken the place of the cordiality and co-operation I had hoped. You will recollect that you yourself advised decidedly to have only one financial agent of the Department abroad, and that as far as practicable general supervision of purchases and expenditures should be exercised by one mind. The selection of Major Huse for this purpose was naturally induced by the position he already held, and the fact that the chief purchases of the Department abroad had therefore been made by him. I am naturally very averse to entertain suspicions against a regular officer of the Army, whose professional training and sentiment should assure honor and integrity, and must, in common justice, require very satisfactory proof before taking steps which might cost him both his commission and character.

This statements which, in one form or another, have come to me in respect to his connection with the house of Isaac, Campbell & Co., and some of his dealings therewith, have caused me to direct an honorable, competent, and reliable gentleman, Mr. McRae, now abroad on an official mission, to make thorough examination and settlement of his accounts, and if there has been anything irregular or censurable in his past conduct of affairs it will doubtless be inclosed or detected and reported.

I have certainly left some surprise and annoyance that in his relations with you - instead of acting in the spirit of co-operation I had urged, and using the increased powers I had instructed him with, to advance the plainly expressed wishes of the Departments in respect to your contract and expected operations - he has exhibited a dispositions to thwart and a refusal of all aid.

I am indebted to Mr. Mason for the confidence and liberality with which he carried out my views, and think Major Huse might well have referred to his constructions of my declared wishes without undertaking, n casual expressions in letters from the Ordnance Bureau, to make me change my avowed purposes and annul engagements I had authorized. I am, too, especially surprised that, with the information he had received of the wants of the Commissary Department for commissary stores, he should failed promptly to pay, or, if he had not funds, to arrange (as it appears he could have done) to discharge the draft which Colonel Gorgas had drawn upon him in favor of Mr. Bosher. In regard to these matters I have caused instructions to be sent him, and shall endeavor to write him personally, and I trust the draft at least has been already, or soon will be, paid.

The relations between Major Huse and yourself satisfy me if I retain (as for the present, and until the results of the investigation ordered, I feel bound to do) that officer in his position I must dissociate you from him in the further conduct of your operations under your contract. As the interests under that contract are not purely governmental, but complicated with private interests, it is, perhaps, better in any view they should be dissociated and kept distinct. I expect to do this, as far as practicable, in the future. My leading motive, still continuing with its original force to the contract with you, was to secure the superior vigilance and judgment of a capable merchant, personally interested in the conduct of the exporting and