at any port of the blockaded country. New Orleans is the only port open for general traffic within the limits of the Western Gulf Blockading Squadron.

You will not regard what are called "permits" from any officer except the Secretary of the Treasury, War, or Navy, as authorizing the ingress or egress of any vessel in violation of the blockade.

There must be no favoritism or license given to any one or more of our countrymen to traffic within the blockaded region or to import or export merchandise. That would be justly considered as evasive of the blockade and in bad faith.

No officer of the Army or Navy is authorized to grant permits, and you will seize all vessels engaged in illegal traffic.

Such vessels as, under the authority of the War or Navy Department, may be engaged to carry supplies to the Army or Navy will take no return cargo.

The blockade is intended to interdict all trade whatever with the country blockaded during its continuance and should be rigidly enforced.

I am, respectfully, your obedient servant,

GIDEON WELLES,

Secretary of the Navy.

[Inclosure No. 2.]

HEADQUARTERS DEPARTMENT OF THE GULF, New Orleans, September 24, 1862.

OFFICERS OF THE BLOCKADING SQUADRON:

The West Florida (schooner) has been loaded with her present cargo and cleared for Matamoras for the purpose of bringing out cotton from Texas. She proposes to make the Sabine Pass, exchange her cargo for cotton, and then make a port in Cuba or New Orleans, as may be best.

The owner, a loyal citizen, has property here to insure his good faith. You will therefore aid what I understand to be the policy of my Government in getting cotton to foreign ports by passing this vessel. This course of trade should be secret of course to be successful.

You will not therefore allow any information of this pass of this vessel to be made public, but will report the matter, with a copy of this letter, to Admiral Farragut or your superior officer.

Respectfully,
BENJ. F. BUTLER,

Major-General, Commanding.

HEADQUARTERS DEPARTMENT OF THE GULF, New Orleans, October 26, 1862.

Brigadier General NEAL DOW,

Commanding at Pensacola:

GENERAL: I was very much surprised and grieved and the public service was considerably interfered with by your detention of the Saint Mary's. Indeed it would have been better for the service to have lost the Creole than to have suffered the delay. The steamer was sent to Pensacola for special service, with written orders, under my own hand, for the utmost dispatch, and in such case the boat must never be interfered with. It has been informally reported to me that your expedition was sent for furniture up the Blackwater. If that was neces-