4. From Pancoast's examination I am satisfied the license procured would have been of great value if the speculation had been carried out. From General Cooper's letter I am satisfied this license was supposed by the officers of the United States Government to be of great value, and I infer it was inconsistent with licenses granted to other persons for pay. What consideration was promised the Government of the United States for this license does not appear. The necessary inference is that it was injurious to our Government.

I cannot avoid the belief that Mr. Pancoast in violation of his parole was engaged in secret communications with the enemy, which until explained places him in the condition of spy who for interest was ready to betray his country. I recommend for the present he be held as a prisoner who has violated his parole and engaged in improper and secret communications with the enemy.

S. S. BAXTER,

Commissioner.

[Inclosure No. 1.]

I was born and raised in New Jersey and came from there into my present residence in Hampshire County, Va., nearly fifteen years ago and engaged in the manufacture of iron, which I carried on until a few years since, when in the fall of the price of iron I broke up, not paying my debts, and by so doing made some bitter enemies who are relentlessly pursuing me at this time. I was brought up an orthodox Quaker and took not much part in politics; hardly ever in my life voted a solid party ticket and in the late elections for convection and secession I did not vote at all either for or against, and being poor and nothing to do at home and my neighborhood suffering much for salt, clothing, &c. ; and having been arrested and brought before General Carson on the broad charge of disloyalty, who kept me five days a prisoner; and no charges or witnesses being brought before him after signing the oath of allegiance to Virginia was discharged, and before leaving his office asked him, General Carson, if I would be doing wrong to go into Maryland to get salt, groceries, &c., for our neighborhood. He replied, "We must wink at such things," which I accepted as assent, and went on a few days after to Maryland, and found at Hagerstown, where I expected to purchase, that General Cooper's command which were then stationed at Williamsport had stopped and unloaded some salt a few days before and refused to let any ago west under my circumstances. I then started to Washington, entirely unknown and unnoticed without any introduction or letter of any kind, to see Lincoln. I waited in Washington two days; the third morning I went before breakfast, wrote on a small card "S. A. Pancoast of Virginia, wants five minutes' conversation with the President. " He sent for me to come up at once. I did so and asked him if he intended in his last proclamation to strike out of Western Virginia our counties; that we were suffering for salt, groceries, &c., and many families looking altogether to the Baltimore and Ohio Ray of going elsewhere to get them. He said he sympathized with us, but you will feed the rebel families. I replied "yes; " did he want to make war on old them, women and children? I had divided all I had with them as long as I had. He said, "no," that was right, and would write to General Scott to do something for me. I went to Scott; he asked me questions but said Cameron ought to do that, and sent an aide with me to Cameron. I heard no part of the conversation, only, "tell General Scott he is the one," which the aide did, and at once General Scott,

97 R R-SERIES II-VOL II