RICHMOND, September 12, 1864.

Major JOHN E. MULFORD,

Assistant Agent of Exchange:

SIR: Your communication of the 10th instant, accepting a proposition made by me some time ago, that all "prisoners of war on each side be released from confinement (close) or irons, as the case may be, and either placed in the condition of other prisoners or sent to their respective homes for their equivalents," has been received.

You do not state whether those parties are to be mutually surrendered or to be held as prisoners of war. I would prefer that they shall all be delivered, the party having the excess to receive proper equivalents. Please inform me what is the understanding in this respect.

You are very much mistaken in supposing that there are only three persons held by the Federal authorities in close confinement or irons. Besides those named by you there are George P. Simms, W. S. Burgess, John Marr, and Thomas M. Campbell, at Johnson's Island, and Captain Gordon, at Fort Delaware. I was also notified on the 18th of July last "that the commanding officer at Fort Delaware had been ordered by the Secretary of War to place Captain James P. Brown, Company K, Tennessee cavalry; First Lieutenant R. J. Brailsford, Company E, First Texas Legion; First Lieutenant R. H. C. Bailey, Company A, Forter's cavalry, and First Lieutenant A. W. Dozier, Company F, Sixth South Carolina Cavalry, in close confinement (in cells). " I am quite confident also that there is a number of our officers and soldiers in close confinement, in irons, or at hard labor at Alton. I think some will also be found at Saint Louis, and in other prisons East and West.

Since the receipt of your communication I have received one from General Butler in relation to the same subject-matter. He proposes to except from the operation of the agreement "those under charges or regularly convicted before some competent tribunal of officers known to municipal laws, the laws of nations or of war. " This offer I cannot accept.

Have you one Confederate soldier in close confinement or in irons who is not under charges or has not been regularly convicted? Is there any probability that we will ever agree as to the true interpretation of the "laws of nations or of war?" We have not yet, and never will. I have no objection to the proposition as far as it relates to "municipal laws," for the Confederate Government has always held that soldiers are responsible to the proper authorities for crimes committed by them, either before or after capture.

I sincerely hope that in this matter we will have no misunderstanding. It is my desire that all on both sides who are in close confinement or in irons shall be immediately released and put in the condition of other prisoners of war. I make no exception save where the officer or soldier has offended against municipal laws. I will thank you to communicate the proposition contained in this letter to General Hitchcock, and let me know at an early date whether it is accepted by your Government.

Respectfully, your obedient servant,

RO. OULD,

Agent of Exchange.