ructa on Sunday last, the 12th instant, who returned on Tuesday evening, the 14th, reporting not to have found him. With this date a requisition for the arrest of Palmer and Bryant has been issued to the authorities of San Luis Potosi, Queretaro, the City of Mexico, &c., with instructions to send the aforesaid parties to this city in case their arrest is made. Palmer's wife and daughters are still at Paschal's hotel. They have been ordered by the authorities not to leave the city. Mr. F. L. Paschal, formerly of San Antonio, had some funds in his possession said to have been left with him by Judge Palmer. He was brought before General Lopez, and being threatened with arrest, he produced a draft in favor of Palmer for $1,600, drawn by William Stone, of Eagle Pass, payable by Louis Coindreau, a merchant of this city. Also a draft for $3,120. 75, drawn by Sappington & Owings at Eagle Pass on P. Milmo of this city, payable to said Palmer. This draft is dated January 18, 1865, and accepted by said P. Milmo, who now refuses to pay it, on the ground that it is not indorsed by Palmer. Mr. Coindreau paid yesterday his draft for $1,600, and said sum is deposited with the political prefect. Mr. Palmer's wife who is accompanied by one Mr. Fisher (formerly a clerk of Sappington & Owings), has employed a lawyer in order to get possession of said money and draft. She was, no doubt, advised by Paschal, whom I suspect of being more friendly to thieves than to his native country. Mr. Sappington is here. He claims to be a warm friend of the Confederacy, yet he has not shown much interest in recovering the money said to be owed to Palmer. Most of the Americans now in this city are men who, after having left the Confederacy not to render military service, seem to be keeping their arms to the elbow in the most disgraceful transactions. Speculation in cotton has quite demoralized our people on this frontier. I have hopes that Palmer may yet be arrested. You may depend, general, that everything in my power will faithful be done to bring Palmer to justice. The miscreants who sympathize with him in this place, and will no doubt turn to be my enemies, can at no time intimidate me in the discharge of my duties.

I have the honor to be, your obedient servant,

J. A. QUINTERRO.

C. S. TREASURY AGENCY, TRANS-MISSISSIPPI,

Marshall, Tex., February 24, 1865.

General E. KIRBY SMITH,

Department Headquarters, Shreveport, La.:

GENERAL: Your letter, with inclosure, of the 11th was only received on the 20th instant. I am fully aware of our alarming and calamitous condition. It is faithfully described by you, and must now overwhelm us unless the Government provide relief. After the best reflection I can bestow I despair of being able to devise any means by which our vast expenditures (numerically at least) can be sustained for even a limited period. The temporary expedients which you suggest I might resort to for the purpose of restoring the lost credit of the Government are outside of my authority, but I should regard it as patriotic in such an emergency to assume responsibility could I thereby accomplish so desirable an object; but if I assume the power to borrow money, from what source could I obtain even a temporary loan? Were I to declare the certificates of indebtedness receivable in payment of taxes it might be attended with seeming benefit, but it should be a substantial one to