HEADQUARTERS DEPARTMENT OR THE SOUTH,
Hilton Head, S. C., February 25, 1865.

Lieutenant General U. S. GRANT,

Commanding Armies of the United States, City Point, Va.:

GENERAL: I have the honor to acknowledge the receipt of your letter of the 5th instant addressed to Major-General Foster, giving authority to exchange all prisoners of war held by men in this department. In consequence of the evacuation of Charleston and the adjacent country, the exchange at this point will undoubtedly be accompanied by many difficulties. I have sent two letters to the officer commanding the Confederate forces near this department, through the commanding officers at Savannah and Charleston, respectively, but as yet have received no reply. I will iform you of the result as soon as I hear from the Confederate authorities.

Very respectfully, your obedient servant,

Q. A. GILLMORE,

Major-General, Commanding.

[FEBRUARY 25, 1865. - For Breckinridge to Lee, relative to prisoners and deserters, see Series I, Vol. XLVI, Part II, p. 1257.]

RICHMOND, February 25, 1865.

Honorable J. C. BRECKINRIDGE, Secretary of War:

SIR: The Wilmington (Delaware) Journal of the 21st announces that Lieutenant S. B. Davis passed through that place on the 20th on his way to Fort Delaware, from which it is presumed that his sentence of death was not changed to imprisonment at hard labor, as at first stated by General Grant.

I have the honor to be, sir, most respectfully, your obedient servant,

J. W. PALMER.

GOLDSBOROUGH, February 25, 1865.

General BRAXTON BRAGG:

Have made arrangements for delivery of the Federal prisoners at the rate of 2,000 per day. Will start the first train to-morrow morning.

W. H. HATCH,

Assistant Agent of Exchange.

CITY POINT, VA., February 26, 1865.

Brigadier General W. HOFFMAN, Commissary-General of Prisoners:

Send no more rebel prisoners for exchange, except those who have been in close confinement, until further orders. I do not want to get ahead in the delivery.

U. S. GRANT,

Lieutenant-General.

VARINA, February 26, 1865.

Lieutenant-General GRANT:

Exchange is progressing slowly; no deliveries made to-day. The reason why no delivery of our men was made yesterday was because