This accept proposition was subsequently modified by the Secretary of War on December 26, as follows:

The acceptance of the within proposition of A. Aw. Belknap was made under the belief that the price offered was $2.50 per gun. That was the price which I distinctly understood was to be paid, as it is the least I will consent to sell the muskets for. This decision on the proposition will supersede the indorsement of November 22, 1860, which was signed under an erroneous impression as to the proposition then before me.

All further action in relation to this sale has, however, been arrested by your approval of my proposition of the 8th instant, to the effect that no more arms be disposed of under the orders given and that "no more muskets be sold."

Very respectfully, &c.,

H. K. CRAIG,

Colonel of Ordnance.

[Sub-inclosure.]

Statement of arms distributed by sale, by order of the Secretary of War, from January 1, 1860, to January 1, 1861, showing to whom, how, the number, kind, price, and date when sold, and place of delivery.

To whom How Number Kind Price Date Place of

sold. sold of each delivery.

arms.

1860.

J. W. Privat 4,000 Musket $2.50 Feb. Saint Louis

Zachari e sale s 3 Arsenal, Mo.

e & Co. altere

d to

percus

sion

J. T. ..do.. 1,000 ..do.. 2.50 Mar. New York,

Ames 14 Arsenal, N.

Y.

Captain ..do.. 80 ..do.. 2.50 June Saint Louis

G. 11 Arsenal, Mo.

Barry

W. C. ..do.. 400 ..do.. 2.50 Aug. Springfield

N. 31 Amory, Mass.

Swift

Do ..do.. 80 ..do.. 2.50 Nov. Do.

13

State ..do.. 1,000 ..do.. 2.50 Sept. Baton Rouge

of 27 Arsenal, La.

Alabama

Do ..do.. 2,500 ..do.. 2.50 Nov. Do.

14

State ..do.. 5,000 ..do.. 2.50 Nov. Washington

Virgini 6 Arsenal, D.

a C.

Phillip ..do.. 50 ..do.. 2.50 Nov. Saint Louis

s 16 Arsenal, Mo.

County

(ark.)

Volunte

ers

G. B. ..do.. 10,000 ..do.. 2.50 Nov. Watervliet

Lamer 24 Arsenal, N.

Y.

Stat of ..do.. 5,000 ..do.. 2.50 Decem Baton Rouge

Mississ ber Arsenal, La.

ippi 4

State ..do.. 5,000 ..do.. 2.50 Decem Do.

of ber

Louisia 15

na a

aOf these the State of Louisiana took and paid for 2,500 only.

H. K. CRAIG,

Colonel of Ordnance.

ORDNANCE OFFICE, January 31, 1861.

OFFICE OF SUPERINTENDENT OF POLICE, New York, January 23, 1861.

Honorable JOSEPH HOLT,

Secretary of War:

SIR: On yesterday afternoon I was informed of the shipment of a number of boxes, which had the usual appearance of those in which muskets, &c., were packed. I directed a portion of my force to take possession of any such packages as had the appearance of containing arms when on boards of, or about to be placed on board of, any vessel destined for a port in any of the seceded States. In conformity with this order, thirty-eight cases of muskets were taken in charge at Pier Numbers 12, North River, a part of which were found on board of, and the remainder were on the wharf in the process of being placed on board of, t he steamer Moticello, bound to Savannah, Ga. The cases were directed to Montgomery, Ala., by railroad from Savannah. After taking these arms in charge I had them placed for safety in the New York State Arsenal, at the coner of Seventh avenue and Thirty-fifth street, in this city, where they remain at the disposal of the U. S. authorities.