HEADQUARTERS ARMY OF NORTHERN VIRGINIA,
October 3, 1864.

Lieutenant General U. S. GRANT,

Commanding Armies of the United States:

GENERAL: In my proposition of the 1st instant to exchange the prisoners of war belonging to the armies operating in Virginia I intended to include all captured soldiers of the United States of whatever nation and color under my control. Deserters from our service and negroes belonging to our citizens are not considered subjects of exchange and were not included in my proposition. If there are any such among those stated by you to have been captured around Richmond they cannot be returned.

Very respectfully, your obedient servant,

R. E. LEE,

General.

HEADQUARTERS ARMIES OF THE UNITED STATES,
October 3, 1864.

General R. E. LEE, Commanding Army of Northern Virginia:

GENERAL: Your letter of this date is received. I answer I have to state that the Government is bound to secure to all persons received into her armies the rights due to soldiers. This being denied by you in the persons of such men as have escaped from Southern masters induces me to decline making the exchanges you ask. The whole matter, however, will be referred to the proper authority for their decision, and whatever it may be will be adhered to.

Very respectfully, your obedient servant,

U. S. GRANT,

Lieutenant-General.

[Indorsement.]

HEADQUARTERS, October 4, 1864.

Respectfully submitted to the Honorable Secretary of War.

This, with the letters previously transmitted, embraces the whole correspondence on the subject.

R. E. LEE,
General.

WASHINGTON CITY, D. C., October 3, 1864.

Honorable EDWIN M. STANTON, Secretary of War:

SIR: I have the honor to report that in my recent visit to Johnson's Island, on Lake Erie, I was informed by Colonel Hill, commanding, that among the statements made by one Captain Cole, then in arrest as an emissary from the Canada side of the lake in behalf of Jacob Thompson and his rebel associates in Canada, connected with the late seizure of two steamers on the lake, the said colonel had stated that preparations were going forward in Canada, under the auspices of Thompson, to commit extensive depredations on Lake Ontario, which it was expected would be attempted during the present moth of October. He further stated that the rebels engaged in this enterprise were expecting to have at their disposal two Clyde steamers, to be received through the river St. Lawrence, and this statement is the one more particularly to which I would respectfully ask your attention.

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

E. A. HITCHCOCK,

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