War of the Rebellion: Serial 128 Page 0602 CORRESPONDENCE, ETC.

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In one small particular I observe a departure in the contract made by Mr. Mason from the terms of my letter. It is in regard to the commission on the sale of the vessels, should such sales be made. I had supposed all sales would be made at 2 1/2 per cent. commission; indeed, I had not exactly contemplated any commission on the vessels, as to either purchase or sale, but think they come within the terms of the letter, and should be regulated by the same rule. I mentioned this to your brother James, and asked him simply to mention it to you, as I did not doubt it could be readily arranged on your examination of my letter, or, if you differed from me, determined in some equitable manner.

I am pleased you are associated with Messers. Collie & Co. In the sale of the Giraffe they acted in a spirit of liberality and friendliness to our Government, which is gratefully appreciated. It will be a source of gratification if in their further connection with the Department they shall find a liberal compensation to themselves, as well as the opportunity of further manifesting their kindly interest in our cause.

Very truly, yours,

JAMES A. SEDDON,

Secretary of War.

GENERAL ORDERS,

ADJT. AND INSP. GENERAL'S OFFICE, No. 86.

Richmond, June 22,, 1863.

Whereas, there have been a number of applications to this Department for authority to raise companies for local defense and special service, and for instructions as to the method by which such organizations may be made and the privileges they may claim, the Department has adopted the following regulations on the subject:

I. Companies, battalions, and regiments composed of persons not within the age of conscription (eighteen and forty) will be accepted as volunteers throughout the Confederacy, under the act of August 21, 1861 (No. 229), for local defense and special service.

II. The organization of corps for local defense must conform to that prescribed for companies, battalions, and regiments of the Provisional Army. The minimum number for a company of infantry is sixty-four rank and file, and for cavalry sixty. Battalions must consist of not less than five companies, and regiments of ten. Artillery is not desirable. Members of cavalry companies must furnish their own horses, but will receive 40 cents per day for their use while in actual service.

III. The muster-roll of all such organizations shall specify that the said organizations are raised under this act, and subject to these regulations, and contain a description of the volunteer as to age, residence, and date of enlistment, and the term of enlistment for the war.

IV. Such organizations will not be considered as in actual service, for the purpose of receiving pay or subsistence, except when called for by the President.

V. They will not be called for until a necessity arises for service. They shall not be required to go beyond the limits of the State to which they belong.

VI. They are expected to serve, when called out, only so long as the emergency exists, and then to return to their ordinary pursuits until again called.