to furnish the people of Mexico with a larger supply than she is now receiving and at prices less than one-half now paid in other foreign markets. By this policy Mexico finds herself enjoying, despite of herself, almost a monopoly in the first article of commerce.

As Governor Vidaurri has no interest beyond the advancement of his State and his people, I think if these views were placed before him in some special manner, calculated to impress him with the good faith of our Government, that he would coincide in their general correctness and give a favorable direction to public opinion in the adjoining Mexican States.

I have the honor to be, captain, very respectfully, your obedient servant,

SMITH P. BANKHEAD,

Colonel of Artillery, Commanding Post.

[Inclosure.]

MONTEREY, MEXICO, ----, 24, 1863.

General MAGRUDER,

Commander-in-Chief of the Confederate Forces:

The citizen Evaristo Madero has appeared before this Government for himself, and representing several merchants who trade through Piedras Negras, in the pass of the Aguila, showing that by virtue of an order from you they are prohibited from carrying their cotton on this side of the Rio Bravo, they have with them and on the way several trains for that point, and their commercial operations have been injured in exporting them from Texas through Piedras Negras.

If by that measure I did not see anything prejudicial in any way, not only to these merchants but to this State, which was heretofore held and still entertains kind and friendly relations with Texas, I would say absolutely nothing about it, and I should regret this unfortunate correspondence of a people who have not only never restricted their neutrality on the North American question, but have in a certain way lent their aid to Texas, smoothing the difficulties which have presented themselves in the exchange of every kind of articles.

I do not pretend that the measure of which I speak should be absolutely abolished, but that a least a plan may be given by which the merchants may save their bonds, and not find themselves suddenly ruined by the paralyzing of trade and the excessive expense which they are under to be able to give circulation to their bills of exchange.

May it please you, general, to consider this manifestation as the result of my feelings for the good of our neighboring people, and accept the assurances of my highest appreciation.

God and Liberty.

SANTIAGO VIDAURRI.