Immediately upon my seizure of the money of the Citizens" Bank I had an interview with the representation of all the banks of New Orleans. On the approach of the fleet these organizations had sent away and concealed their specie. The letters marked K will explain hat has been done. they are now very anxious to get their money back again, are straining every nerve to do so in the best of faith, and area skying me to actively aid them, which I am doing. I thought it much better that ten or twelve millions of specie should be brought within our lines, under our protection and control, than to be left in the Confederate States as a military chest for the rebels. My fear is that a large portion of the money is lost, as it may never be allowed to return.

You will observe than in the letter to the banks, marked K, I have not pledged myself not to "retake" from them the property of the United States. I refer to the specie originally stolen from the mint and treasury here and paid into banks by the secession authorities. I would desire to know these amounts from the bureaus at Washington. I propose the banks shall pay back the amounts so received. When I have traced stolen property to the receiver I have done my duty. The sureties of the several U. S. officers who made these defalcations then are still here, and by prompt action their property may be seized and their indebtment secured.

Will copies of the bonds be sent?*

* * * *

I have the honor to be, very respectfully, your obedient servant,

BENJ. F. BUTLER,

Major-General, Commanding.

[Sub-inclosure.]

A.

NEW ORLEANS, May 11, 1862.

Major-General BUTLER, U. S. Army,

Commanding Department of the Gulf:

SIR: I take the liberty respectfully to submit to you the following facts:

On the 1st of April last I presented for record in the books of the consul of the Pays-Bas, Am. Counturie, esq., the following resolutions of the Citizens" Bank of Louisiana, bearing date 25th of February last, placing in my hands for the purposes therein stipulated the sum of $800,000 in Mexican dollars, as agent of Messrs. Hope & Co., of Amsterdam:

James D. Denerge, president; Eugene Rousseau, cashier.

CITIZENS" BANK OF LOUISIANA,

New Orleans, February 25, 1862.

Extract from the journal of proceedings of the board of directors of the Citizens" Bank of Louisiana at their sitting of 24th of February, 1862.

"Whereas the present rate of exchange on Europe would entail a ruinous loss on this bank for such sums as ar due semi-annually in Amsterdam for the interest on the State bonds:

"Be it therefore resoled, That the president be, and he is hereby, authorized to make a special deposit of $800,000 in Mexican dollars in the hands of Messrs. Hope & Co., of Amsterdam, Holland, agents of the bondholders in Europe, though their authorized agent, Edmun J. Orstall, exq., for the purpose of providing for the interest on said bonds.

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*Portion of letter here omitted relates more particularly to military operations, and is printed in Series I, Vol. XV, pp. 422-424.

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