[Indorsement.]

I fully concur with Major-General Sherman as to the impolicy of permitting specie to be used in the purchase of Southern staples in the hands of Southern owners.

I. F. QUINBY,

Brigadier-General.

HEADQUARTERS FIFTH DIVISION,
Memphis, Tenn., August 11, 1862.

ADJUTANT-GENERAL OF THE ARMY,

Washington, D. C.:

Have just received an order to encourage trade in cotton.* Gold, silver, and money are as much contraband of war as powder, lead, and guns, because they are convertible terms. Cotton is now procured by Tennessee and Southern bank notes which are inconvertible. If the policy of the Government demands cotton order us to seize and procure it by the usual operations of war, but the spending of gold and money will enable our enemy to arm the horde of people that now swarm the entire South. This cotton order is worse too u s than a defeat. The country will swarm with dishonest Jews who will smuggle powder, pistols, percussion-caps, &c., in spite of all the guards and precautions we can give. Honest men can buy all the cotton accessible to us with Tennessee bank notes.

W. T. SHERMAN,

Major-General, Commanding.

(Copy to General Grant.)

HEADQUARTERS FIFTH DIVISION,
August 11, 1862.

General GRANT,

Corinth:

Cotton order of Headquarters of the Army encouraging trade in cotton is received and must be respected. But I will move heaven and earth for its repeal, as I believe it will be fatal to our success. If we provide our enemies with money we enable them to buy all they stand in need of. Money is as much contraband of war as powder. All well here.

W. T. SHERMAN,

Major-General.

WAR DEPARTMENT,

Washington, D. C., August 11, 1862.

Brigadier-General WADSWORTH:

Ordered, That Brigadier-General Wadsworth be, and he is hereby, authorized to raise and organize one or more infantry regiments of volunteers in the District of Columbia, to serve for three years or during the war, under the rules and regulations of the War Department.

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*See Halleck to Grant, August 2, Series I, Vol. XVII, Part II, p. 150.

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