risk the loss of $50,000 for the certain receipt of that amount in case of success, as it would cost us that sum to get a credit of $200,000 in France. On the return we take risk of $50,000 on the ship and $200,000 on the cargo; but the prices, if delivered, are so arranged that in case of success we should save more than $300,000 on present prices of arms and powder.

7th. I had no knowledge of the arrangement with Mr. Summer about the bounds, and therefore got the draft for $120,000 cashed here. No bonds to me, nothing but two drafts; one for $7,500, on the Assistant Treasurer here, the other for $120,000, on the Tennessee at Richmond. There must have been a mistake on his part in carrying out your views.

Respectfully, your obedient servant,

M. LOVELL,

Major-General, Commanding.

WAR DEPARTMENT C. S. A.,

Richmond, February 8, 1862.

Major General MANSFIELD LOVELL,

New Orleans:

SIR: The President desires that as soon possible on receipt of this letter you dispatch 5,000 men to Columbus to re-enforce that point, sorely threatened by largely superior forces. The menacing aspect of affairs in Kentucky has induced the withdrawal from points, not in immediate danger, of every man that can be spared to prevent the enemy from penetrating into Tennessee or passing Columbus. A draft has been made on General Bragg; four regiments have been ordered from Virginia, together with several batteries, and with the number now required from your command we hope to stem the tide till the new levies called out from the State shall be in condition to take the field.

New Orleans is to be defended from above by defeating the enemy at Columbus; the forces now withdrawn from you are for the defenses of your own command, and the exigencies of the public defense allow us no alternative.

Your obedient servant,

J. P. BENJAMIN,

Secretary of War.

WAR DEPARTMENT C. S. A,

Richmond, Va., February 8, 1862.

Major General BRAXTON BRAGG,

Mobile, Ala.:

SIR: The President desires that you will as soon as possible send to Knoxville all the troops you can spare from your command without immediate danger, and he hopes that the number will be at least four regiments. The condition of affairs in Kentucky and Tennessee demands from us the most vigorous effort for defense, and General A. S. Johnston is so heavily outnumbered, that it is scarcely possible for him to maintain his whole line without large additional re-enforcements. We have ordered to his aid four regiments from Virginia and 5,000 men from New Orleans, and by thus subtracting something from other points, where the pressure is not so great, we hope to enable him to defend his lines until the view levies ordered from all the States shall be in condition to take the field.