upon examination appears to be the amount and the same taken from me at the time of my arrest at Chicago, Ill., by John C. Miller, esq., an agent of the Government of the United States.

WM. W. HEDRICK.

Case of William T. Smithson.

William T. Smithson, a banker of Washington City, was arrested on the 8th day of January, 1862, by order of the Secretary of State issued on application from the office of the provost-marshal. This person's treason was detected in the following manner: On the 19th of December, 1861, the Navy Department transmitted to the provost-marshal's office a quantity ofcontraband correspondence taken from the schooner Lucretia by the U. S. brig Perrynear Alexandria, in which were found two letters addressed in some kind of cipher or character, and signed Charles R. Cables. One of these letters contained the following:

We can learn littleor nothing about the intended movements of McClellan's army across the river. I believe the fellow is a coward, and will never attack you without he is forced to do it. I would like to see yourush down upon him, if you think it safe or best to do so. I think you could drive them back to thei forts with ease, and with great advantage to the cause you are fighting for. Butyou know what is best. I have an important fact for you and it is important that you should look to it promptly. Johnson, of Tennessee, is here and he hasa devil in him as large as an ox. He is entering into an arrangement with the President and Cabinet to furnish him with large sums of money to be used in the employment of men to go to Tennessee and Kentucky to burn bridges and mills and machine shops, and such like. These devils here aredetermined to destroy any vestige of property and to take the life of every citizen in Tennessee ratehr than not succeed with their fiendish purpose. Two meaner and viler devils neverlived than Johnson and Etheridge. They are concoctng all sorts of plans to get hold of Tennessee. Watch these devils out their plans. I send you a pamphlet touching up McClellan. Read it; it is rich. Itwill give you some "incite" also to matters and things as they are viewed by such men as the author, Ellet. Shall I continue to look after and supply our friends in B.? Expense falls heavily upon me in my present embarrassed condition. Everything I have after paying my debts is at the command of those you represent. If you should fail to succeed I don't wish to live any longer. I have given one fiend in B. the money to buy the books you wrote for. My God, how I would rejoice to see you and your y soon. Come ahead. I believe you can get here. Etheridge has gone to Kentucky to employ men to engage in bridge-burning on a large scale. Look to this matter all over the South, particularly in Tennessee, Kentucky and Virginia. * * * I suppose you receive our papers regularly. Troops continue to come in, and how strange it is, no inducement in the world but the small pay they receive. With the officers it is different. They go in for plunder, &c. What a set of rogues they are. Watch all the time.

CHARLES R. CABLES.

The other letter, dated December 14, 1862, says:

I have just received your letter of the 7th instnat. Glad to hear from you. Handed the letter inclosing the $20 to our friend in B. * * * I send along with this a number of letters. Please forward them. Troops are still going over the river. Three thousand cavalry went over yesterday. Be sure to look fter bridge burners in Tennessee, Kentucky and Virginia. Etheridge, of Tennessee, is gone to Kentucky to arrange for burning bridges, mills, machine shops, &c. Large sums of money will be expended by this Government ins uch work. What are you all doing touching such work? Something ought to be done in this direction at once. We have no news of interest here to-day. The weather is very fine. We have some mean men here who havelarge possession in the South whose namesI will give you by and by. I write in such haste to be in time for the messenger. My love to you all. I have something nice for your chief which I will send soon, and for General Beauregard.

Truly,

CHARLES R. CABLES.