The expenditures of that Department for the year ending-

June 30, 1862............................... $394,368,407.36

June 30, 1863............................... 599,298,600.83

Estimate for year 1864...................... 738,829,144.80

Six months of 1864, till December 31........ 369,414,573.40

-----------------

Total....................................... 2,101,910,728.39

When it is considered that the currency of the Confederate States has been inferior to that of the United States during the whole term of the war, and all of the material of supply has been obtained with difficulty and at excessive prices in the Confederacy, the comparison is not out of place.

The estimated arrearage, beyond the amount of the requisition, is $200,000,000, and this estimate is under, rather than over, the deficiency.

The army pay is in arrear for several months-this is an excuse for desertion, the sale of clothing, equipments, and munitions by the soldiers; the operatives in the workshops are suffering and many have deserted; the railroad service is reduced to the lowest point of depression from the same cause; the soldiers in hospitals and who have been furloughed or returned are deprived of many necessaries. Throughout the whole country discontent and discredit have raised from the failure to pay for supplies of food and animals that have been impressed.

It is plainly impracticable for this Department to carry on any of its operations under such a condition of things.

Very respectfully, your obedient servant,

JOHN N. BRECKINRIDGE,

Secretary of War.

SPECIAL ORDERS,
ADJT. AND INSP. GENERAL'S OFFICE, Numbers 41.
Richmond, February 18, 1865.

* * * * *

XV. Major R. W. Hunter, assistant adjutant-general, is relieved from further service with Major General J. B. Gordon's division, and is assigned to duty at headquarters Second Corps, Army of the Northern Virginia.

* * * * *

XXIII. In addition to his present duties, Lieutenant Colonel R. W. Martin, of the Invalid Corps, is assigned to duty as provost-marshal of that portion of Virginia lying north of the York River. He will report to the provost-marshal at Richmond, Va.

* * * * *

By command of the Secretary of War.

JNO. WITHERS,
Assistant Adjutant-General.

CIRCULAR.] HDQRS. ARMY OF THE NORTHERN VIRGINIA,

February 18, 1865.

GENERAL: All leaves of absence and furloughs to go south of North Carolina are suspended, and you are desired not to forward any applications for such leaves or furloughs until further orders.

By command of General R. E. Lee:

W. H. TAYLOR,

Assistant Adjutant-General.