exchange, extending to rebel prisoners on parole in the South, all of them without conference or agreement with our agent. As I considered this proceedings entirely without warrant from the cartel, and wholly unprecedented in the history of war, I advised, as the commissioner of exchange, that we should not follow Mr. Ould's example; and though greatly to our disadvantage, in the hope of a return to former principles, no declaration was made by us, except the first and only one made by General Meredith while he remained the agent of exchange, so that when he was relieved we had a good and valid claim against the rebels for a large number of men, I feel very sure, amounting to over 20,000; stated by Colonel Hoffman, from his official papers, at 23,213 (vide page 2, statement).

Independently of this claim, we have another arising from the difference between 19,814 rebel troops on parole and 8,223 Federal troops on parole, being a claim to 11,591 (vide page 2, statement), which number, in fact, should be added to the 23,213 to show the total indebtedness of the rebels to us.

In a recently written letter from Mr. Ould addressed to myself, dated Richmond, Va., January 27, 1864, which fell into the hands of General Butler, but which was never communicated to me, though acted upon by General B. without my knowledge, Mr. Ould assumes to dismiss this whole matter in a single sentence, as if all his business with General Meredith had been conducted with due regard to propriety and without being [sic] by General Meredith, upon which he does not propose but declares "that on the 1st of February Is hall declare all officers and soldiers who have been delivered at City Point at any time prior to January 1, 1864, exchanged. You can make a similar notice as to those who have been delivered to you. " This extraordinary letter appears (and this is more extraordinary than the letter itself) to have been accepted by General Butler as a sufficient explanation of past differences of opinion, and declaration of ex by General Butler and Mr. Ould, although they were not then in official communication with each other.

The declaration, however, which was made by General Butler was suspended by order of the Secretary of War immediately on its receipt. I did not advise or suggest this suspension and knew nothing of it until after it was done, although had I been consulted I should have advised it, as it seemed to me to ignore entirely our just claims upon the rebels for more Federal prisoners than all they then held in Southern prisons.

If to insist upon our just claims in this matter has seemed to operate unfavorably upon our officers and men in Southern prisons by subjecting them to cruel hardship, the imposition of which is a disgrace to the rebel authorities, it should be considered on the other hand that to allow the rebel agent undisputed license in his proceedings not only puts in jeopardy all hopes of just action from him in the future but has thrown into the rebel ranks 20,000, if not 25,000, men, who ought to be on parole, to fight Federal troops whose lives are thus exposed individually, while the public cause is also endangered; points which are undoubtedly entitled to the protection of the Government.

I can make no objection to a surrender of this claim on our part if my superiors deem it proper, but as the commissioner for the exchange of prisoners I deem it my duty to express my convictions as to the matters of fact and principles involved in this business.

I have the honor to be, very respectfully, your obedient servant,

E. A. HITCHCOCK,

Major General of Vols. and Commissioner for Exchange of Prisoners.