or army commander deserving such punishment as the infliction of Rosecrans upon them. His name could well go on the list I sent up a few days ago.

U. S. GRANT,

Lieutenant-General.

U. S. NAVAL HEADQUARTERS, No. 148 Canal Street, New Orleans, La., December 2, 1864.

Major General E. R. S. CANBY,

Commanding Military Division of West Mississippi:

GENERAL: I have the honor to inform you that Rear-Admiral Farragut sailed with the Hartford for New York on the 30th ultimo, and that Commodore Palmer now commands the West Gulf Blockading Squadron.

By order of Commodore Palmer:

Very respectfully, your obedient servant,

S. R. FRANKLIN,

Fleet Captain.

HDQRS. MILITARY DIVISION OF WEST MISSISSIPPI, New Orleans, La., December 2, 1864.

Rear-Admiral S. P. LEE,
Commanding Mississippi Squadron, Mound City, Ill.:

SIR: Your letter of the 5th ultimo has been the subject of the commanding general's constant and careful consideration, and he trusts that he will soon be able to meet you in person and confer with you upon the important subject referred to therein. In the meantime, he directs me to say, that in view of present and prospective operations in this and General Sherman's division, he has found it absolutely necessary to forbid all communication with the enemy, of whatsoever nature, and that he has revoked all permits, given by military authorities, which are not in strict accordance with existing orders. The act of July 2, 1864, fully defines this prohibition of intercourse, both as to persons and property. Under that law and the trade regulations, published July 29, 1864, the only shipments that can be made are those authorized by the thirty-eighth and fifty-fifth articles of the latter. The thirty-eighth article is sufficiently clear and definite, but the fifty-fifth is so incomprehensible and indefinite as to bring to designing minds almost all products inside of the rebel lines within its scope. It is abundantly proved that large quantities of cotton belonging to the rebel Government have been shipped under that construction to their agents within our lines, and that in return army supplies and foreign exchange has been furnished. To meet this difficulty General Orders, No. 51, was issued, directing that all such property be seized and turned over to the Treasury Department as captured property,and has, with one single recent exception, caused by a misconstruction of the new cotton permits, but which has already been remedied, been strictly enforced so far as the military authorities are concerned.

I have the honor to submit herewith inclosed copies of General Orders, Nos.31, 33, 51, and 72,* from these headquarters,and respectfully to suggest, in order to make their operations more complete, that orders to the same effect be issued by the naval authorities. The inclosed collection

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*See Part II, pp.465, 533, Part III, p.264, and p.695, ante.

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