to be established by the "regulations" than the separate traffic of North Carolina and infinitely less useful. The trade capable of being based on these bonds alone would exceed the entire exportation of cotton through the blockade so far. As, therefore, the "regulatins" (perhaps without so intending) permit exportation under two distinct systems by individuals, the State of North Carolina proposes to enlarge the traffic and increase the supplies of the country by another, less at war with either of the Confederate systems than they are with each other, and which is cumulative and not competitive. I beg leave in this connection to ask you to cause your Quartermaster-General to institute a comparison both as to quality and price of the articles furnished the Confederate Government by this State and those furnished by speculators and contractors. It might, perhaps, be proper in conceding the right to North Carolina to continue the trade in connection with individuals upon the system mentioned, to require her to abstain from contracting hereafter with any vessel now trading to our ports and subject to the duties imposed by the "regulations," but to add to the fleet, the commerce, and the supplies by obtaining such new vessels from abroad and as additions to the present exporting and importing capacity in the trade. There is supply of cotton ample enough to support the enterprise of both Confederate and State governments and a want broader than both can supply, and although the Confederate Government may contemplate increased traffic, in which I trust they may be successful, it cannot be yet pretended that the limited interference, accomplished or contemplated, of this State is in the way. I deem it hardly necessary to add that the "regulations" if persisted in will destroy the trade absolutely, excpt it may be under the tenth section as alluded to. A few weeks' trial will, I am sure, convince you of this. The vessels in which North Carolina is interested cannot and will not operate under those terms. Money would be lost by each trip, and of course the State cannot incur losses for the benefit of the whole which are not to be shared by the whole. I could add much more to these reasons and could give you many particulars of my own experience, but forbear. Earnestly hoping that these views may meet your favor and that I shall hear from you soon, as my ships are idle at the wharf, I beg to assure you of the great respect, &c., of

Your obedient servant,

Z. B. VANCE.

[33.]

NORTH GARDEN DEPOT, March 20, 1864.

[General BEAUREGARD:]

MY DEAR GENERAL: I recollect in the autumn of 1861, when with the Army of the Potomac at Camp Wigfall, near Manassas, to have heard that it was proposed by you, General Johnston, and G. W. Smith, or by one of you with the concurrence of the others, that the war should be carried into the enemy's country if the army were increased to 60,000 men; that this proposition was made to the President, and that he declined to acceded to the proposition. I am under the impression that the proposition was made in writing and that I saw or heard it read. Will you be kind enough to communicate to me the facts confidentially if you do not choose to have your name mentioned in connection with the matter. If the proposition was made in writing, can you furninsh me with a copy and of the President's answer if that was also in wirting? My impression is, that it was handed to him during one of his visits to the army, and that he declined the proposition on the ground that he had no troops to furnish, and that he did not put reasons