the subject of exchange, however, I differ from General Hitchcock. It is hard on our men held in Southern prisons not to exchange them, but it is humanity to those left in the ranks to fight our battles. Every man we hold, when released on parole or otherwise, becomes as active soldier

against us at once either directly or indirectly. If we commence a system of exchange which liberates all prisoners taken, we will have to fight on until the whole South is exterminated. If we hold those caught they amount to no more than dead men. At this particular time to release all rebel prisoners North would insure Sherman's defeat and would compromise our safety here.

U. S. GRANT,

Lieutenant - General.

HDQRS. DEPT. OF VIRGINIA AND NORTH CAROLINA,
AUGUST 18, 1864.

Lieutenant - General GRANT,

Commanding Armies of the United States, City Point:

GENERAL: I have the honor to inclose to you a few of the applications and orders about special exchanges, to which I wish to call your attention; * also a copy of a letter written this morning to Major - General Hitchcock, commissioner of exchange at Washington, upon the subject of his indorsement "that an exchange would be very desirable,"+ and also a direction from the Secretary of War upon the necessity of making some arrangement about the treating of our prisoners in cases of supposed

retaliation.

As these papers are original may I ask you the favor that they shall be returned?

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

BENJ. F. BUTLER,

Major - General and Commissioner for Exchange.

HEADQUARTERS OF THE ARMY,
Washington, D. C., August 18, 1864.

Major - General FOSTER, Department of the South:

GENERAL: The Secretary of War directs me to call your attention to the accompanying extract from the Richmond Examiner, stating that the rebel officers sent to you were never placed under fire. You will report whether this statement is true; if so, why the order was not executed.

Very respectfully, your obedient servant,

H. W. HALLECK,

Major - General and Chief of Staff.

[Inclosure.]

MOBILE.

(From the Richmond Examiner, August 9.)

Admiral Buchman's wound was doing well on the 8th. He, together with other prisoners and the Federal wounded, have been sent to Pensacola. Fort Morgan holds out yet. Fort Gaines is occupied by

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* Inclosure not found and not otherwise identified.

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+ See second, ante.