for man, according to the equivalents of assimilated rank set forth in the cartel, the excess to be made up in officers and men on either part from the army.

In making this proposition I repose with confidence upon your statement to Major Mulford that you would exchange all the naval prisoners so taken without distinction. I have these men at City Point, ready for delivery, and will deliver them at Cox's Ferry at such time after five hours' notice as you may designate.

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

BENJ. F. BUTLER,

Major-General, Commanding.

[Inclosure No. 2.]

HDQRS. DEPT. OF VIRGINIA AND NORTH CAROLINA, ARMY OF THE JAMES, In the Field, October 12, 1864.

Hon. Robert OULD, Agent of Exchange, Richmond, VA.:

SIR: I inclose a copy of an advertisement cut from a Richmond paper, where a military officer commanding a camp near Richmond calls upon their masters to come forward and make claim to the services and labor of certain colored men therein described. Some of these are believed to be soldiers of the U. S. Army in arms. If I am mistaken in this belief I desire to be promptly corrected.

I have ordered to such manual labor as I deem most fitting to meet the exigency an equal number of the prisoners of war held by us, and I shall continue to order to labor captives in war to an equal number of all the soldiers of the United States I have reason to believe are held to labor and service by the forces you represent until I am notified that this practice on your part has ceased. Much as I regret the necessity imposed upon me to do this, yet I am compelled by the sternest convictions of duty thus to inaugurate a system of retaliation, which will be firmly carried out.

I have the honor to be, very respectfully, your obedient servant,
BENJ. F. BUTLER,

Major-General, Commanding.

[Indorsement.]

HEADQUARTERS ARMIES OF THE UNITED STATES, City Point, Va., October 12, 1864.

Respectfully forwarded to the Secretary of War.

I have notified General Butler of my approval of the steps taken to effect the exchanges heretofore agreed upon by the Secretary of the Navy.

U. S. GRANT,
Lieutenant-General.

[Sub-inclosure.]

(From the Richmond Examiner of Tuesday, October 11, 1864.)

HEADQUARTERS CAMP OF INSTRUCTION, Richmond, October 8, 1864.

NOTICE.

In accordance with the provisions of General Orders, No. 25, Adjutant and Inspector General's Office, last series, the owners of the following negroes will call at the camp and prove their claims, as required