suitable agreements as to the observance of their paroles and recognition thereof by Major-General Banks. Accordingly, this proposition was accepted by General Franklin, and he appointed Colonel Molineux, inspector-general on his staff, to meet Major Levy, inspector-general on my staff, and these officers, meeting at a point near New Iberia, agreed upon a cartel, of which the following is a substance:

All the officers held respectively by General Franklin and myself have been exchanged, officer for officer of like grades, and the excess of officers on the basis established in the old cartel agreed upon between Commissioners Hill and Dix in 1862. Under this agreement an aggregate of 257 Federal prisoners are exchanged and 314 C. S. prisoners. The excess in my hands, numbering about 450 are to be delivered to General Franklin with the district understanding that their paroles are to be held binding, and that in the event of their not being recognized by the United States Government the prisoners are to be returned to me; this excess thus delivered not to be included in any general exchange without my consent. The approval of General Banks has been given to the arrangement and agreements, and all the prisoners are now en route to the point of delivery. General Banks has also agreed to appoint a commissioner to meet one of my appointment to agree upon the terms of a cartel, which shall embrace the exchange and delivery of the prisoners who have been heretofore captured from our respective commands, and also those who may hereafter be captured. I have already submitted to General Banks the basis on which I am willing to enter into that cartel.

I desire to be informed if the lieutenant-general commanding wishes me to include in the cartel the exchange and delivery of all prisoners who may have been or may be captured from Major-General Magruder's command, as we have a large excess in our favor, and General Banks is operating in General Magruder's district as well as mine. I have no doubt the arrangement to include captures from his command will be made.

I am, general, very respectfully, your obedient servant,

R. TAYLOR,

Major-General, Commanding.

Brigadier General S. A. Meredith, U. S. agent of exchange, denies that he has complained to his Government of the non-delivery of clothing as intimated in a letter from General Winder to Lieutenant-Colonel Boyd, U. S. prisoner of war.

[Indorsement.]

DECEMBER 19, 1863.

Respectfully referred to Brigadier-General Winder. I will thank General Winder to return this paper to me when he is done with it.

RO. OULD,

Agent of Exchange.

HEADQUARTERS FORT DELAWARE, DEL., December 20, 1863.

Colonel WILLIAM HOFFMAN,

Commissary-General of Prisoners, Washington, D. C.:

COLONEL: In reply to your communication of 14th instant, ordering a full report in regard to the necessity of erecting a contagious hospital on the Jersey shore, I have the honor to inclose surgeon's report,