supercargoes, and if the goods can meet with a better market shippers by our vessel may avail themselves of the said contract or not; but in the latter case there will be no certainty of getting cotton back, as the wagon traffic cannot be properly carried out without the aid of Government support in shape of teamsters to attend to cattle, and which the Confederate Government will supply from the army to facilitate the inland transportation of goods and bringing back of cotton for the contract. In the event of peace or cessation of hostilities the Confederate Government, by the c contract, binds itself to receive goods that are shipped but not delivered, and for any orders not shipped, but in course of same, at 10 per cent. profit upon invoice cost and charges.

Any further information you may require we shall be happy to give our best efforts to obtain from the respective parties interested.

We remain, dear sir, yours, truly,

---- ----.

DEPARTMENT OF STATE,

Washington, December 16, 1862.

Honorable EDWIN M. STANTON,

Secretary of War:

SIR: I have the honor to inclose herewith a copy of a dispatch, dated 29th of October last, from M. M. Kimmey, U. S. vice-consul at Monterey, Mexico, giving such information in regard to the magnitude of the trade now carried on between Mexico and Texas as strongly illustrates the importance of occupying the line of the Rio Grande and of cutting off the large supplies which the rebels are receiving from that quarter.

I have the honor to be, sir, your obedient servant,

WILLIAM H. SEWARD.

[Inclosure.]

U. S. CONSULATE AT MONTEREY,

October 29, 1862.

Honorable WILLIAM H. SEWARD,

Secretary of State, Washington, D. C.:

The quarterly returns for this office, ending the first of this present month, will be forwarded to you by C. B. H. Blood, consul for this place, who is now in the United States.

The Government cannot, from not having made an attempt to stop the trade between this country and Texas, be aware of the great amounts of goods sent from here across the Rio Grande. For more than one year a few goods and ammunition have been constantly sent in small quantities from this State to Texas, but within the past three or four months the trade has grown to be of great magnitude, and as it is increasing every day it is difficult to say to what extent it may be carried of what proportions it may assume if the Government does not interfere in the most prompt and energetic manner.

Enormous quantities of cotton, belonging to the Confederate Government and in charge of agents, are constantly arriving here and finds a ready cash market for all that is or can be brought. In return for the cotton goods suitable for the Army are sent back, and from the great amounts it would seem that enough goods go from and through this place to supply the whole rebel army.