HEADQUARTERS DEPARTMENT NO.1,
New Orleans, La., February 1, 1862.

Honorable J. P. BENJAMIN,

Secretary of War:

SIR: I received a telegram from you yesterday stating that $195,000 was now on the way here for me to pay for powder. The fact that this is the exact amount placed to my credit already, in answer to my request for money to carry out the arrangement with the steamer Tennessee for arms and powder, induces me to write and say that I have already entered into the arrangement with the Tennessee, and that this sum is not available to pay for the powder by the Vanderbilt. It may be that the coincidence is accidental; but I think it safest to advise you. I will send on a copy of my agreement with the owners of the Tennessee in a few days, by which you will see that we got $200,000 in Havre by depositing $100,000 here and insuring half of the ship ($50,000) in case of capture. On the return cargo we take the risk of first cost and half the value of the ship in case of capture, the powder to be delivered at 100 per cent. and the arms at 50 per cent. above invoice price. As a money transaction I have calculated that it results in our favor largely more than in risk.

Respectfully, your obedient servant,

M. LOVELL,

Major-General, Commanding.

HDQRS. DEPARTMENT ALABAMA AND WEST FLORIDA,
New Pensacola, Fla., February 1, 1862.

ADJUTANT-GENERAL C. S. ARMY,

Richmond, Va.:

SIR: As you will perceive by my orders [February 27], on the arrival of Brigadier-General Jones, delayed some days on the route by sickness, the immediate command of the troops here was transferred to him. This will enable me to devote more time to other parts of my command, which, I regret to say, sadly need supervision. From General Jones' high character as an officer and his experience as an artillerist there is every reason to hope for entire success in haw new command, which is in fine order, though somewhat disorganized at present by re-enlistments and furloughs.

Brigadier-General Anderson having been relieved, another to command his brigade is necessary here. My previous recommendations of Cols. J. E. Slaughter, and J. B. Villepigue, P. A., and J. Patton Anderson, First Regiment Florida Volunteers, are brought to your notice. The promotion of Colonel S. A. M. Wood, Seventh Regiment Alabama Volunteers, over Colonel Anderson, his senior, and much his superior as a soldier, has been very mortifying to the latter. Colonel Wood, for his opportunities, is a very good soldier, and no doubt made a very favorable impression in Kentucky with his well-drilled and well-equipped regiments; but Colonel Anderson was more deserving of the honor. To enable me to progress at all in my labors at Mobile it was necessary to dispose of Brigadier-General Walker, whose rank rendered him an incumbrance. You will see he want sent to Montgomery, to command the unarmed men concentrated near that place. I have no idea he will be of any service; but he can do less harm there. To command his important brigade at Mobile Brigadier-General Gladden was ordered to report to General Withers. From his energy, zeal, great efficiency as a