investigation the fact of the deposit, in the hands of the consul of France, of about $750,000 in silver coin about the same time under the following described state of facts: At daybreak on Sunday, April 21 [20], or near that time, this large bulk of coin was transferred from the Citizens" Bank to the vaults of the French consul.

This, together with that sent into the Belgian consul's shop, was the entire silver coin of the bank, so bully that it could not be easily otherwise secreted.

Upon investigation it appeared that the commercial house of Dupasseur & Co., of this city, claimed this specie as having purchased it by bills, valued on Paris at 5 francs the dollar for that amount, of about that date, drawn in favor of the Citizens" Bank. The senior member of the firm stated to me that he bought this silver for the speculation; that he expected to make $30,000 by exporting it to Paris after the blockade was raised; that he did not take it to his own house, and did remove it to the French consul's at this unusual time of a Sabbath morning, from fear of the mob if he moved it in business hours, and that he desired to place it under the French flag for protection because of the excited state of the city. I need not remind you, so well trained in judicial investigations, of the improbability of such a transaction, involving three-quarters of a million, in such dangerous times, with such hope of profit, and the entire uncertainty of even being able to ship the specie to meet the bills, with our cannot at that moment thundering at the forts, and the city in fear daily of a bombardment.

It will be useful to compare dates of both these transactions, because if the object of the Citizens" Bank was to really pay Hope & Co. their interest, why not have sent forward these bills of Dupasseur instead of transporting the silver at par in Mexican dollars, which commands premium, to the Belgian consul. The amounts are nearly equal, but by the two hours" actions the bank got away every dollar of its silver. I should be glad to be present at the investigation of this case if public duties will permit.

Very respectfully, your friend and servant,

BENJ. F. BUTLER.

HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, La., July 17, 1862.

Honorable REVERDY JOHNSON:

DEAR SIR: I would respectfully solicit your advice upon the questions presented by the Mechanics" and Traders" Bank. I inclose copy of my note to the Secretary of the Treasury transmitting the funds in the hands of the banks to the credit of the Confederate States receivers.* There will not be enough of these funds to pay all the claims upon them for confiscated Northern property.

Very respectfully, your obedient servant,

BENJ. F. BUTLER.

NEW ORLEANS, July 17, 1862.

Major-General BUTLER:

DEAR SIR: The question presented by the Mechanics" and Traders" Bank, relative to accrued dividends on stock belonging to citizens of loyal States, sequester by the action of the Confederate Government,

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*See June 19, p. 165.

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