Schedule of drafts sent to meet this account:

Citizens" Bank draft, 5 days" sight, on Bank of America,

New York, dated June 19, 1862.............................215,820.89

Jacob Barker's check on Park Bank, New York, dated

June 19, 1862............................................ 2,500.00

Navy bill on Gideon Welles, Secretary, by William H. Higbee,

paymaster, dated June 19, 1862........................... 12,000.00

Draft of the assistant quartermaster on assistant

treasurer of the United States, New York, dated

June 19, 1862............................................ 15,439.21

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245,760.10

[Inclosure No. 2.] CITIZENS" BANK OF LOUISIANA, New Orleans, June 11, 1862.

Major General B. F. BUTLER,

Commanding, New Orleans:

GENERAL: In obedience to your General Orders, No. 40.* I beg to inform you that on the 1st of May last there was to the credit of the Treasurer of the Confederate States in this bank the sum of $219,090.94, and also in special account a further sum of $12,465, and this bank holding a much larger amount in the notes of the Confederate Treasury, an equivalent amount in said Treasury notes has been set aside and is now held by the bank to offset the above-stated amounts, and which notes I will return as the property of the Confederate States under your order. Also one small tin box, marked C. S.district court.

The following-named parties have also to their credit on deposit these sums:

J. M. Huger, Confederate receiver.....................$106,812.60

G. W. Ward, Confederate receiver...................... 72,084.90

J. C. Manning, Confederate receiver................... 1,120.00

Major M. L. Smith, Confederate receiver................. 16,026.52

Major Maclin........................................ 6,814.57

Major Reichard...................................... 497.30

As the deposits by the receivers were made in this bank by virtue of an order of the Confederate court in accordance with the act of the Congress, they were to that extent compulsory on the receivers as well as on the bank; to have refused to comply with the mandate of the court might have brought both parties in conflict with the constituted authorities for the time being. All of the above-mentioned deposits were made in the currency of the Confederate Government by its appointed officers.

Had the bank resumed payment or become bankrupt in the meantime these depositors would have had no claims to the coin or to a pro rata distribution of the other assets of the bank; they could only have claimed the currency deposited by them, and hence may be classed in reality special deposits of Confederate funds, payable in same in accordance with the contracts and understanding at the time. Under these circumstances the bank appeals to General Butler's sense of equity and justice to allow these deposits to be paid, to whom it may concern, in the same currency in which they were received.

Some time during the month of November last an order of sequestration was issued to the marshal of the Confederate States to take charge of the assets of the Bank of Kentucky, then held by this bank in the usual course of business. These assets have never been removed from the bank, yet still are nominally beyond its control. I therefore respectfully request of the commanding general an order to respond

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*See Series I, Vol. XV, p.463.

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