II. Trade stored will be permitted at Beaufort, Hilton Head, Savannah, Fernandina, Saint Augustine, and Jacksonville, in all articles of clothing and food, groceries, ladies' and children's goods generally, and articles not contraband of war.

III. To trade is a privilege, and no person will be allowed to buy and sell for profit unless he be a citizen of the United States, and subscribe to any legal oath or obligation that is or may be prescribed by law, and at points threatened by an enemy the officer commanding may further exact as a condition that the trader shall himself engage to serve in some military capacity to aid in defense of the place.

VI. Persons desiring to trade will apply to the commanding officer of the post and obtain his written consent, specifying the kind, nature, and extend of the trade, and when he requires importations from Northern cities he will in like manner apply for his permit. The commanding officer of the post may appoint some good officer to supervise these matters, who will frequently inspect the stores, and when there is not sufficient competition will fix the prices of sale. These stores will in like manner be subject to the supervision of the commanding general of the Department of the South by himself or an inspector-general.

V. In order that purchases may be made with economy the commanding officer of each post will make reports of his action in regard to trade, with the names of traders, amounts of goods desired for sale, &c., to the commanding general of the department, who will in like manner make full report to the Secretary of the U. S. Treasury, to the end that he may instruct the collectors of ports from which shipments are expected as to the necessary permits and clearances. It being utterly impracticable that a general commanding military operations should give his personal attention to such matters, it is desirable that as much power as possible should be delegated to post commanders, and they should be held to the strictest account that no trade is permitted injurious to the military interests of the United States.

VI. Sales of cotton will be restricted absolutely to the U. S. Treasury agents, and no title in cotton or bill of sale will be respected until after the cotton is sold at New York. Country people having small lots of cotton are permitted to bring the same in to be exchanged for food and clothing for their families. The quartermaster will set aside a store or warehouse to which each wagon bearing cotton will, after entering the military lines, proceed direct, where an agent of the Treasury Department will receive and weigh the same and pay for it the price fixed in the eighth section of the act of Congress, approved July 2. 1864, viz:

Three-fourths the value of cotton as quoted in the New York market; and the Secretary of the Treasury is hereby requested to make appointments of agents to carry out the provisions of said act at the posts of Hilton Head, Savannah, Fernandina, and Jacksonville.

VII. In order that the duties hereby imposed on commanding officers of posts may not be neglected or slighted by the changes incident to rank and charges of troops, the commanding general of the Department of the South will appoint a special officer to command at each of said posts, with a small garrison, not to be charged without his order; and when other troops, commanded by a senior are added or arrive the command of the post will not charge, but the additional troops will be encamped near by and act according to special instructions.

By order of Major General W. T. Sherman:

L. M. DAYTON,

Assistant Adjutant-General.