to this department for the purpose of their exchange. To this application it was at first answered that all of these officers, except one who had died, had escaped from custody, and that the men had been exchanged at City Point. It has, however, been since ascertained at Washington that this statement was not correct in respect to ten of the officers in question. They are still prisoners at Johnson's Island, Ohio, and good faith demands their speedy exchange. It is understood that all the others of the officers of this capture did escape and that all the enlisted men have been exchanged.

Under the cartel of July 28, 1864, between yourself and General E. Kirby Smith, C. S. Army, there yet remain to be exchanged on our part-

First. The prisoners captured by the forces of Major-General Steele, commanding Department of Arkansas, from the forces of General E. Kirby Smith prior to July 28, 1864, as provided by Article II of the cartel.

I have received from Major-General Steele lists of the prisoners of war held by him in the Department of Arkansas on the 28th of July. they amount to about 300 privates. Besides these, Colonel W. Hoffman, Commissary-General of Prisoners, in his letter of September 8, 1864, advises you that "there are, reduced to privates, 584 rebel prisoners in Northern stations who were captured in Arkansas by General Steele's forces, and whose exchange seems to have been contemplated under Article II of the cartel," and whom he will forward to you for exchange, if "you are under obligations to deliver them. "

Second. The prisoners of war captured from the C. S. forces at Helena, Ark., July 4, 1864, as provided by Article III of the cartel.

This article is not in itself a positive agreement. It is contingent upon the result of your application to the War Department for the return of the prisoners referred to in it.

But such application, having been made, was answered in a letter from Major General E. A. Hitchcock, the general commissioner of exchange, under date of August 20, 1864, in the following language:

The prisoners of war referred to in the second and third articles of said cartel will be placed at your disposal by colonel Hoffman, Commissary-General of Prisoners, as soon as practicable, of which he will advise you.

Regarding this assurance as fully meeting the condition upon which alone the execution of Article III depended, I immediately notified the confederate agent that such assurance was waived, and by that notification I suppose that Article III became as absolute and binding as any provision of the cartel.

I observe that Colonel Hoffman, in his letter above referred to, speaks of the exchange under this article as prohibited by the late order of Lieutenant-General Grant, but this I think he must do under a misapprehension of the facts in the case. My letter to Major Szymanski, informing him of General Hitchcock's assent to the exchange of the Helena prisoners, was written September 3, while the order of Lieutenant-General Grant prohibiting further exchanges was not received here until the 9th day of the same month.

On the 23rd day of August, 1864, by your authority, I entered into an agreement with Lieutenant Colonel N. G. Watts, assistant agent of exchange for the Confederate States east of the Mississippi river, for the exchange of the naval prisoners captured in Mobile Bay and the garrison of Fort Gaines for their equivalents, to be delivered to us from the army and navy prisoners now in Texas. This agreement has ben assented to by Major Szymansski upon the approval of Judge Ould, the general C. S. agent of exchange.