means from our spoliation without cost to himself and at enormous profit, and to which all of his energies are bent, so in a corresponding degree should our efforts and exertions be directed at all hazards to prevent.

Upon the first, but little time need be consumed. With him gold, steady at a premium of 50 per cent., and with a heavy foreign debt, which he is totally unable from domestic resources to meet-for the abundant grain crops of Eruope precludes any demand upon him, and nearly all other articles, both being manufacturing nations are rivals in their marketable commodities-it follows undoubtedly that as he possesses no other foreign resources, we must be compelled, if in his power so to do.

Under the second, he is endeavoring to carry out an old and successful financial operation of mine, viz, issuing his notes in exchange for gold in Europe, which I will explain, viz (and here I must remarks that as you have heard of me chiefly upon military affairs, and might regard my views only as theories which might or might not prove correct, I will state that after relinquishing my naval and military career I betook to finance and commerce, in which I have been engaged for twenty-five years, which certainly should entitle me to be considered a practical man), the most successful of which was my project urged upon Mr. Biddle in 1837 during the convulsion, to purchase cotton and ship to Euroep, as by so doing his notes issued in payment would be held in circulation for many months, while the cotton, speedily shipped and drawn upon, would be equal to specie in a few weeks, thus affording instant relief as well as the chance of appreciation of value of the articles, then below the cost of production. The success was full and sufficient, besides making a profit of nearly 100 per cent. Our enemy seeks the same operaton, as his notes with which he purchases costs only the outlay of paper and ink, for their redemption is a mater of no concern to him, and to procure specie in Europe for worthless paper issued in our country is a profitable operation.

Under the third, as he pays $250 a bale on the Mississippi River, and sells it in Liverpool for $500, which at the present rate of exchange in New York would bring $750, the profit becomes immense.

I think, therefore, that I have clearly shown that our enemy can only be saved from bunkruptcy by spoliation from us without cost to himself and with numerous profits. So long as this is suffered, so long will our enemy strive and labor to continue the war, urged on by all the passions of native fanaticism, envy, and cupidity.

As your time is fully occupied, I will close by suggesting that all cotton liable to fall into the hands of the enemy should be promptly burned, and a proclamation issued directing all selling or trading with the enemy as treasonable and obnoxious to our cause.

I am, with high regard, Mr. President, your obedient servant,

C. G. DAHLGREN.

[Inclosure.]

ATLANTA, GA., December 2, 1863.

General J. E. JOHNSTON,

Headquarters, Meridian, Miss.:

GENERAL: I have been requested by His Excellency the President of the Confederate States to confer with you in regard to cotton falling into the hands of the enemy, on or near the Mississippi River, especially in the vicinity of Natchez. It may not be necessary to investigate the cause of this injury to the confederate cause further than that it had its origin partly with foreigners owing no fealty to our country,