to prevent intereference with your military operations and the giving of supplies to the enemy. Much dissatisfaction was felt by many of our really loyal citizens that under the rule adopted prohibiting them from going to such places as you should indicate throughout your department to purchase cotton or other products, the profits of such trade would be thrown into the hands of speculators residing within those States. I think there is force in the complaint. Inclosed herewith I send you a copy of the regulations of the Secretary of the Treasury,* and call your attention to Regulation IX. Under this the "trade district" in your department, if I understand your letter correctly, will embrace all that country within your lines as indicated to me in our interview. No trade in selling will be authorized, except as provided in Regulations XIV and XV, and none for buying except under XX and XXI.

In granting authority for trade stores, or for purchasing products within your department, I will not authorize a store nor the purchasing of products at any place therein except such as you shall indicate as unobjectionable for that purpose.

I shall in all cases be as careful as possible that all parties to whom I give authority to buy or sell are men of unquestioned loyalty, and of good standing as merchants, and shall require bonds in heavy penalty that they observe the terms of permits and of all military orders. Beyond this I cannot of course discriminate; that is to say, I cannot grant one and refuse another individual of the same class; nor can I discriminate between residents. But if you will order that none but American citizens by birth or naturalization be permitted to come to your department south of Memphis, it will keep out a great many men who have heretofore been mischievous, and I will then make that a test qualification. This it seems to me would be just, and would be acquiesced in che American people. A man who claims exemption from service to the country ought not to claim the privilege of those who are liable to such service. But our treaties prevent the civil authorities from making such distinction.

I will have a local special agent at every place indicated by you as a place for trade, to perform the duties under Regulations XVI and XVII.

Regulation XVIII will become useless unless there may be some case in which you particularly desire a store established under it.

Regulation XIX will authorize the persons therein named to bring their products either to any place where trade is authorized as above, or to any other market, and dispose of it for their own account.

My instructions to all local special agents will require that all permits for family supplies under Regulation XVI be given subject to being countersigned by the commander of the post or by such other party as he shall designate.

I will not grant any more authorities to trade than those named by you in our interview until I receive your reply to this. I hope, therefore, as the traders are very impatient of delay, you will answer as soon as you can, and name all such places within your department as you wish to be regarded as places of trade.

I understand from your letter that the number of traders at any place should not be restricted. If I am mistaken please correct me. Under the rules the aggregate amount of goods cannot exceed $2 per

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*Omitted.

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