munitions of war to be reported to the Chief of Ordnance at Washington City, subject to the future action of the Congress of the United States, and in the meantime to be used solely to maintain peace and order within the borders of the States, respectively.

Third. The recognition by the Executive of the United States of the several State govenments on their officers and legislatures taking the oaths prescribed by the Constitution of the United States, and where conflicting State governments have resulted from the war the legitimacy of all shall be submitted to the Supreme Court of the United States.

Fourth. The re-establishment of all the Federal courts in the several States, with powers as defined by the Constitution and alws of Congress.

Fifth. The people and inhabitants of all the States to be guaranteed, so far as the Executive can, their political rights and franchises, as well as their rights of person and property, as defined by the Constitution of the United States and of the States, respectively.

Sixth. The Executive authority of the Government of the United States not to disturb any of the people by reason of the late war so long as they live in peace and quiet, abstain from acts of armed hostility, and obey the laws in existence at the place of their residence.

Seventh. In general terms, the war to cease, a general amnesty, os far as the Executive of the United States can command, on condition of the disbandment of the Confederate armies, the distribution of the arms, and the resumption of peaceful pursuits by the officers and men hitherto composing said armies.

Not being fully empowered by our respective principals to fulfill these terms, we individually and officially pledge ourselves to promptly obtain the necessary authority and to carry out the above programme.

W. T. SHERMAN,

Major-General, Commanding Army United States in North Carolina.

J. E. JOHNSTON,

General, Commanding C. S. Army in North Carolina.

[Inclosure Numbers 2.]

As the avowed motive of the Government of the United States for the prosecution of the existing war with the Confederate states is to secure a reunion of all the States under one common government, and as wisdom and sound policy alike require that a common government should rest on the consent and be supported by the affestions of all the people who compose it: Now, in order to ascertain whether it be practicable to put an end to the existing war and to the consequent destruction of life and property, having in view the correspondence and conversation which has recently taken place between Major General W. T. Sherman and myself, I propose thefollowing points as a basis of pacification:

First. The disbanding of the military forces of the Confederacy; and,

Second. The recognition of the Constitution and authotiry of the Government of the United States on the following conditions:

Third. The preservation and continuance of the State governments.

Fourth. The preservation to the people of all the political rights and right of person and property secured to them by the Constitution of the United States and of their several States.

Fifth. Freedom from future presecution or penalties for their participation in the present war.

Sixth. Agreement to a general suspension of hostilities pending these negotiations.