ton office created by me, and redeem the obligations issued by it. You are doubtless aware that I found this department in a great measure barren of military stores, with but limited means of creating them in the absence of arsenals, machine shops, foundries, and factories.

The cotton interests, from a combination of causes were in a very chaotic and unsatisfactory condition. The currency was unavailable in foreign markets, and greatly depreciated at home. Cotton appeared the chief resource for the procurement of many supplies, and the acquisition of cotton without money, or a resort, to impressment, seemed difficult.

The propriety of impressment was questioned, and funds to purchase were not provided. The previous lack of system and efficiency had impaired the credit of the Government and produced distress in the army. The erection of a cotton office was deemed a public necessity. It was commended by the Secretary of the Treasury and approved by the Secretary of War. It was designed to constitute a guarantee against previous irregularities, check abuses, and furnish the various departments of the army with supplies by the use of cotton purchased with Confederate money. The men selected in Texas to discharge the functions and efficiency full confidence was reposed. Their plans were formed under an impression that the policy adopted would receive the sanction of law, and the office a clear legal status, given during the subsequent session of Congress. A bill was introduced for this purpose by the Honorable P. W. Gray, but from some cause failed to pass. The enemies of the office have recently made an effort to discredit it, the object being, doubtless, to take advantage of the interregnum between the abolishment of the office and the enforcement of the late law regulating exports to get large quantities of cotton exported without restriction.

The certificates given by Colonel Hutchins for cotton are mere promises to pay, based upon the possible, but uncertain, legislation of Congress. Your attention is respectfully called to the exhibit made by him of his transactions in print, as also to the other papers inclosed for your information on this subject, an examination of which will doubtless convince you of the utility of the office and the necessity of something of this kind for the acquisition of supplies. It is purely commercial in its practical workings when the means are supplied it to conduct the business, and as intimated in a recent letter, I should prefer it placed under the immediate in a recent letter, I should prefer it placed under the immediate control of the Treasury Department, but the ratification of its acts and the redemption of its obligations appears indispensable, not only for the preservation of good faith, but as an act of justice to the gentleman who have transacted the business.

Respectfully and faithfully, your obedient servant,

E. KIRBY SMITH,

General.

[Inclosure.]

HEADQUARTERS TEXAS COTTON OFFICE,
Houston, Tex., April 18, 1864.

General E. KIRBY SMITH,

Commanding Trans-Mississippi Department, Shreveport, La.:

GENERAL: I have looked forward with much solicitude to the publication of the laws of the recent Congress and the arrival of the