HEADQUARTERS MILITARY DIVISION OF THE WEST,
Montgomery, Ala., December 2, 1864.

General S. COOPER,

Adjutant and Inspector General, Richmond, Va.:

GENERAL: I have been informed that Major L. Mims, chief quartermaster of the State of Mississippi, has been authorized by the honorable Secretary of War to superintend the exchange of Government cotton for army supplies. No official communication of such authority has ever been received by me, nor has any information of such authority has ever been received be me, nor has any information reached Major Mims or myself as to the extent of his powers, nor any instructions given as to the extent of his powers, nor any instructions given as to the mode and manner of carrying out this power. The subject is a delicate one and of grave importance. Our armies in this military division are sadly in need of every description of military supplies-horses and mules for artillery and other transportation, blankets, clothing, bacon, &c., are needed. This section has been drained of these supplies. Any further drafts on its resources will materially impair, if not destroy, the productive powers of its laboring population. Even if the supplies wee at hand, they cannot be obtained for want of funds. Money is needed, not only for the purchase of quartermaster and commissary stores, but it is also required for the payment of the troops. a portion of the Army of Tennessee has not been paid since the 31st of December last, i. e., Stewart's corps; Cheatham's and Lee's corps, since the 30th of April last; and the cavalry, since the 29th of February last. Funds have been recently sent to pay off these arrearage in part. To meet the immediate and pressing wants of the army the subject of cotton exchange becomes of serious import. Government cotton is here, badly put up, exposed to weather, to depredation, and at times liable to capture and destruction by the enemy. This, I believe, with proper management and under proper regulation, can be used to procure from the enemy's lines all needful army supplies. the interruption of communication with the seat of Government precludes us of all hope at present of looking to that quarter as a source of supply, and another must be sought. The one above suggested presents itself as the most feasible. Lieutenant-General Taylor, who was authorized to act in this matter, has, under instructions from the Government at Richmond, ceased to exercise any further authority over this subject. It is, therefore, important that some one should be intrusted with this authority, whose powers should be ample, and whose instructions should be full and clear. As it is now probably our sole source of supply I respectfully request and urge the department to take such steps as will enable us to exchange the cotton now lying useless here for such supplies and material of war as we may need. I herewith inclose a communication of Major Willis, my chief quartermaster, to the honorable Secretary of the Treasury, in connection with this subject. It meets with my approval. I have no desire myself to have any connection with the supervision of contracts for exchange, but will cheerfully afford all such facilities and aid in my power to the agent selected by the Government to effect this object. My present solicitude is that some one shall be designated for that purpose, full and ample powers conferred upon him, and such clear and definite instructions given me as will best carry out the intentions of the Government, protect it against frond and peculation, and supply the great and pressing wants of our army in the field.

I have the honor to be, general, respectfully, your obedient servant,

G. T. BEAUREGARD,

General.