not have been tolerated by the law without giving to the United States a ground for complaint, and which, though not so tolerated and furnished with the utmost secrecy, brought the United States and England to the verge of war. It appeared by despatches of the Confederate Government, which were intercepted near the beginning of the year, that it had contracted for six ironclad steamers, combining the capacities of freighting and fighting ships, to be constructed in England, and to be paid for with cotton.

On the 5th of June, President Davis addressed a letter to the British consul, Moore, at Richmond, revoking his exequatur. The reason given for this was, that Moore "assumed to act as consul for a place other than the city of Richmond, and a State other than the State of Virginia, and was thereupon, on the 20th day of February, 1863, requested by the Secretary of State to submit to the Department of State his consular commission, as well as any other authority he may have received to act in behalf of the Government of her Britannic Majesty before further correspondence could be held with him as her Majesty's consul at the port of Richmond; and whereas the said George Moore has lately, without acceding to said request, entered into correspondence, as her Majesty's consul, with the Secretary of War of these Confederate States, thereby disregarding the legitimate authority of this Government."

Subsequently, Mr. Fullerton, the British consul at Savannah, was dismissed, and all the other British consuls. In a letter to Mr. Fullerton, Mr. Benjamin, Secretary of State, thus explains the ground for the action of the Government:

It thus appears that the Consular Agents of the British Government have been instructed not to confine themselves to an appeal for redress, either to courts of justice or to this Government, whenever they may conceive that grounds exist for complaint against the Confederate authorities in their treatment of British subjects (an appeal which has in no case been made without receiving just consideration), but that they assume the power of determining for themselves whether enlisted soldiers of the Confederacy are properly bound to its service; that they even arrogate the right to interfere directly with the execution of the Confederate laws, and to advise soldiers of the Confederate armies to throw down their arms in the face of the

enemy.

This assumption of jurisdiction by foreign officials within the territory of the Confederacy, and this encroachment on its sovereignty, cannot be tolerated for a moment; and the President has no hesitation in directing that all Consuls and Consular Agents of the British Government be notified that they can no longer be permitted to exercise their functions, or even to reside with the limits of the Confederacy.

It was deemed proper to explain this proceeding to the Emperor of France, and in a letter to Mr. Slidell, October 8th, Mr. Benjamin

says:

The exercise of the droit de renvoi is too harsh, however, to be resorted to without justifiable cause, and it is proper that you should have it in your power to explain the grounds on which the President has been compelled to enforce it. Lest also the Government of his Imperial Majesty should be misled into the

error of supposing that the rights of French citizens are in any manner involved in the action of the President, which has been rendered necessary by the repre

hensible conduct of the British Consular Agents, you are requested to take an early occasion for giving such explanation to M. Drouyn de l'Huys as will obviate all risk of misapprehension.

In August, Mr. Mason received instructions to withdraw from England. He had been sent to that country to endeavor to obtain the recognition of the Confederacy by Great Britain, and to act as minister upon such recognition. In the order of recall to him, Mr. Benjamin said:

The President believes that the Government of her

Majesty has determined to decline the overtures made through you for establishing, by treaty, friendly relations between the two Governments, and entertains no intention of receiving you as the accredited minister these circumstances, your continued residence in London is neither conducive to the interest, nor consistent with the dignity, of this Government.

of this Government near the British court. Under

He retired to France, but subsequently returned to England as a private citizen. In a letter to Mr. Lamar, commissioner to St. Petersburg, June 15th, Mr. Benjamin says:

It has been suggested to this Government, from a source of unquestionable authenticity, that, after the recognition of our independence by the European Powers, an expectation is generally entertained by them that in our treaties of amity and commerce a clause will be intrade. It is even thought that neutral Powers may be troduced making stipulations against the African slave inclined to insist upon the insertion of such a clause as a sine qua non.

He then proceeds to state the principles upon which the Confederacy is organized, and says:

Moreover, any attempt on the part of the treaty-making power of this Government to prohibit the African slave trade, in addition to insuperable objections above suggested, would leave open the implication that the same power has the authority to permit such introduction. No such implication can be sanctioned by us. its possession of any power whatever over the subThis Government unequivocally and absolutely denies ject, and cannot entertain any proposition in relation

to it.

(See PUBLIC DOCUMENTS, MESSAGES TO CONFEDERATE CONGRESS.)

The Proclamation of Emancipation to all persons held as slaves in certain States and Districts, issued by President Lincoln, on January 1st, 1863, caused great excitement in the Southern States. It stated that "the Executive Government of the United States, including the military and naval authorities thereof, will recognize and maintain the freedom of such persons; "also, "such persons will be received into the armed service of the United States," &c. Its immediate effect was expected to arise under these clauses. The Confederate Congress took action at once on the subject. It was at first contemplated to make slaves of all free negroes found with arms in their hands; to kill all slaves found armed, and to hand over to the State authorities all their officers, to be dealt with according to the laws of the States relative to persons exciting insurrection. Severe measures were proposed in the Confederate

Congress. These, however, were not adopted, and the subject was referred to the discretion of the President. Whether any extreme measures were inflicted upon these soldiers or their officers during the year, is not officially known. It was finally considered that, under the law of nations, a belligerent could employ against his antagonist any persons whom he could obtain, and, therefore, free negroes captured as Federal soldiers were entitled to be treated as prisoners of war. On the 23d of April an Address to Christians throughout the World" was issued at Richmond, signed by ninety-six clergymen of all denominations. After asserting that "the Union cannot be restored," and that "the Confederate Government is a fixed fact, the address proceeds to say:

The recent Proclamation of the President of the United States, seeking the emancipation of the slaves of the South, is, in our judgment, a suitable occasion for solemn protest on the part of the people of God throughout the world.

The address charges President Lincoln with intending to produce a general insurrection of the slaves, and such an insurrection "would make it absolutely necessary for the public safety that the slaves be slaughtered, and he who would write the history of that event -would record the darkest chapter of human woe yet written." The Proclamation, however, liberated no slaves except such as could come within the lines of the Federal armies. The political aspect of the Proclamation was discussed at some length in the Message to the Confederate Congress in January. (See PUBLIO DOCUMENTS.)

The difficulties which had arisen relative to the exchange of prisoners (see PRISONERS), and the threats of retaliation for some occurrences on each side, which were regarded by the other as unjustifiable acts of cruelty, was made the ostensible occasion for a mission by VicePresident Stephens to Washington. The following correspondence embraces all the details on the subject:

RICHMOND, July 2d, 1863.

Hon. A. H. Stephens, Richmond, Va.:

SIR: Having accepted your patriotic offer to proceed as a military commissioner, under flag of truce, to Washington, you will receive herewith your letter of authority to the commander-in-chief of the army and navy of the United States.

This letter is signed by me, as commander-in-chief of the Confederate land and navy forces.

You will perceive from the terms of the letter that it is so worded as to avoid any political difficulties in its reception. Intended exclusively as one of those communications between belligerents which public law recognizes as necessary and proper between hostile forces, care has been taken to give no pretext for refusing to receive it on the ground that it would involve a tacit recognition of the independence of the Confed

that I am not recognized to be President of the Confederacy. In this event, you will decline any further attempt to confer on the subject of your mission, as such conference is admissible only on the footing of perfect equality.

My recent interviews with you have put you so fully in possession of my views that it is scarcely necessary to give you any detailed instructions, even were I, at this moment, well enough to attempt it. My whole purpose is, in one word, to place this war on the footing of such as are waged by civilized people in modern times; and to divest it of the savage character which has been impressed on it by our enemies, in spite of all our efforts and protests. War is full enough of unavoidable horrors, under all its aspects, to justify, and even to demand of, any Christian rulers who may be unhappily engaged in carrying it on, to seek to restrict its calamities, and to divest it of all unthe cartel for the exchange of prisoners on such a basis necessary severities. You will endeavor to establish as to avoid the constant difficulties and complaints which arise, and to prevent, for the future, what we deem the unfair conduct of our enemies in evading the delivery of the prisoners who fall into their hands; in retarding it by sending them on circuitous routes, and by detaining them, sometimes for months, in camps and in prisons, and in persisting in taking captives noncombatants.

Your attention is also called to the unheard-of con

duct of Federal officers in driving from their homes entire communities of women and children, as well as of men, whom they find in districts occupied by their troops, for no other reason than because these unfortunates are faithful to the allegiance due to their States and refuse to take an oath of fidelity to their enemies. The putting to death of unarmed prisoners has been a ground of just complaint in more than one instance, and the recent executions of officers of our army in Kentucky, for the sole cause that they were engaged in recruiting service in a State which is claimed as still one of the United States, but is also claimed by us one of the Confederate States, must be repressed by retaliation if not unconditionally abandoned, because it would justify the like execution in every other State of the Confederacy, and the practice is barbarous, uselessly cruel, and can only lead to the slaughter of prisoners on both sides a result too horrible to contemplate without making every effort to avoid it.

On these and all kindred subjects you will consider your authority full and ample to make such arrangements as will temper the present cruel character of the contest, and full confidence is placed in your judgment, patriotism, and discretion, that while carrying out the objects of your mission, you will take care that the equal rights of the Confederacy be always preserved. Very respectfully, (Signed)

JEFFERSON DAVIS. RICHMOND, Sth July, 1863.

His Excellency, Jefferson Davis:

SIR: Under the authority and instructions of your letter to me of the 2d instant, I proceeded on the mission therein assigned, without delay. The steamer Torpedo, commanded by Lieut. Hunter Davidson, of the navy, was put in readiness as soon as possible, by order of the Secretary of the Navy, and tendered for the service. At noon, on the 3d, she started down James river, hoisting and bearing a flag of truce after passing City Point. The next day (the 4th) at about one o'clock P.M., when within a few miles of Newport News, we were met by a small boat of the enemy, carrying two guns, which also raised a white flag before approaching us. The officer in command informed Lieut. Davidson that he had orders from Admiral Lee, on board the United States flagship Minnesota, lying below, and then in view, not to allow any boat or vessel to pass the point near which he was stationed without his permission. By this officer I sent to Admiral Lee a note stating my objects and wishes, a copy of which is hereto annexed, marked A.

I also sent to the admiral, to be forwarded, another

aspect was presented until the crisis came at once and paralyzed the military strength in the field. The disaster at Gettysburg, the loss of Vicksburg and Port Hudson, the falling back of Gen. Bragg, and the success of Gen. Gillmore at Charleston, demonstrated that the military power in the field was broken. Unless new armies could be created or the reduced ranks refilled, an ultimate failure was certain. The views relative to the capture of Vicksburg were thus expressed:

If it be fated that, in spite of all human valor and devotion can do, Vicksburg and its defenders should become the prey of the enemy, then, indeed, will come the tug of war. Then also will come the political crisis. Whatever of imbecility and faint-heartedness and downright latent toryism and treason exists in the Confederacy will at once receive a new accession of weakness; many will again begin to cry out for an "honorable peace," as they call it, by means of submission.

Thus, Vicksburg is at this moment a point not only of strategic but also of political importance. While our flag flies defiant over the great river, no party of compromise can venture to raise its head; no man will dare to breathe one word of "reconstruction," in whole or in part. All will be good Confederates. The cause which is supposed to be failing and sinking is the one which is likely to be abandoned by the cowards and betrayed by the traitors. To the cause that prospers we are always as true as steel.

In a speech before the Mississippi Legislature President Davis said: "Vicksburg and Port Hudson are the real points of attack. Every effort will be made to capture these places, with the object of forcing the navigation of the Mississippi, of cutting off our communications with the trans-Mississippi Department, and of severing the western from the eastern portion of the Confederacy. Let, then, all who have at heart the safety of the country go without delay to Vicksburg and Port Hudson."

The division of the Confederacy produced by the loss of the Mississippi river, is shown by the following figures of the area on the west and east sides:

sis President Davis ordered a day of fasting, humiliation, and prayer to Almighty God to be observed At the same time the North failed to push these advantages vigorously, and the campaigns closed for a time both east and west. The response of the Confederacy to the levy of all between eighteen and forty-five years of age was now watched with great interest. Meanwhile troops were sent from Virginia to Gen. Bragg, in Tennessee, and also from Gen. Meade, on the Federal side, and the result of the operations was another severe blow to the Confederacy in the loss of East Tennessee. Its effect was thus described:

By the falling back of Gen. Bragg to the Georgia line, we lost the use of all the extensive mines and iron works of Tennessee and Northern Georgia, which left us but the almost untried ore fields of Alabama and North Carolina; the Western Virginia works being lost to us early in the war. Alabama, though rich in minerals of all kinds, had lacked the necessary energy and enterprise to develop its vast wealth. In the selection of W. R. Hunt to take control of those important interests, the Department at Richmond was fortunate in securing the services of one of the most intelligent and energetic officers in our service. By his energy and perseverance, Alabama and Georgia mines had been made to meet all the demands of our armies and fortifications, including Charleston. In fact, it is said and believed by many that the city of Charleston would have been in the hands of the Yankees long since, but for the untiring labors of Major Hunt in furnishing the founderies and arsenals with ample material.

The lack of military supplies created great embarrassment to the operation of the armies. This was increased whenever the blockade was most stringent. Immense numbers of Southern soldiers were clothed in the Federal uniforms which had been captured. At the close of the year there were three thousand barefooted men in Gen. Longstreet's corps. Blankets and clothing were asked for with piteous appeals from Gen. Johnston's army, which had been commanded by Gen. Bragg until December. The army of Gen. Lee was likewise destitute of blankets. It was said: "Day by day the clothes made for the soldiers exhibit less wool and more cotton." Supplies could no longer be counted upon from abroad. The prospect for obtaining the raw materials was

what remains.

Alabama...
Georgia..

Mississippi..

South Carolina..

North Carolina (four fifths).

Virginia (two thirds)..

Tennessee (one half)..

Florida (two thirds)..

In this extremity of the Government, a levy en masse of the fighting population was ordered. It was plain that, unless this order was complied with, the Confederacy would not be able to contend much longer in the field, except in Virginia and Charleston, with the forces and material of the North. In this cri

Any one who buys beef has discovered that the quarters and sides are rapidly diminishing in size. Younger cattle are being slaughtered every year. It is now thought that we will have to fall back upon milch cows. As cattle diminish, mutton must be substituted, and hence the sources both of leather and wool may be expected to decrease every month. Thus the prospect at home does not encourage the belief that we will be able to clothe armies larger than those which are now shivering in nakedness.

The prospect for the subsistence of the army was thus represented:

Very little bacon is left, beef is going, and mutton will hardly feed great armies, even if the supply were double what it is. It is said that Gen. Lee, during his late visit to this city, exclaimed that the citizens had no right to indulge themselves while the soldiers were

living on a quarter of a pound of meat per day. The hue and cry against the starvation of Yankee prison

ers had scarcely subsided, and the excuse that three of our largest hospitals were forced to do without meat for a day or two at a time had not been forgotten.

East Tennessee, on which we relied mainly for supplies, has fallen into the hands of the enemy. The clamor about impressments and the stoppage of supplies on their way to market, still rings in the ears of the Government. The standing crops in entire counties have been impressed at one fell swoop, under the plea that in no other manner could a sufficient supply for the army be certainly secured. Under this system, and because of a real scarcity as well, flour of a low grade is selling this day in the Confederate capital at $120 a barrel. It appears, therefore, that the prospect of feeding the army already in the field, much less one twice or thrice its size, is not encouraging.

The deficiency of labor was such as to endanger the supply of provisions. The slave required the supervision of the white man at all times, and especially when an unusual amount of work was demanded of him. Women, lads, and old men cannot make him work effectually. Whereas the fears of an insurrection, arising from the absence of the greater portion of the white able-bodied men, produced a leniency and indulgence among the farmers, which encouraged the idleness of the slave, and resulted in a yearly decrease of the crops. The scarcity of horses and forage was such that the Government seized both.

Enormous losses of muskets and cannon took place at Vicksburg, at Chattanooga, and Gettysburg, so that there was left a bare sufficiency to supply the wants, and to make good the annual wear and destruction, without furnishing any to new troops. The supply of ammunition often fell short during the year, and when Gen. Lee was in Pennsylvania, Richmond was so bare that cartridges had to be taken from a portion of the city troops and sent to him.

During the year no signs of yielding up were exhibited by the Confederate Government, or by the Governments of any of the seceded States. On the question of submission to the Federal Government, no organized body manifested any assent, but on the contrary the most determined opposition. Here and there some views were uttered in favor of peace. The following letter from Mr. T. Butler King, formerly in the Federal Congress from Georgia, dated June 26th, appeared; but its authenticity is disputed.

But war must end in peace; and sooner or later both parties must agree to terms upon which they will lay aside their arms. The events of the past two years should be sufficient to convince every reasonable man, both North and South, that it is impossible for the Federal Government to subjugate our people; and statesmen of the South cannot fail to perceive that the Federal Government cannot abandon the war, except on a restoration of the Union, without danger of the further dismemberment of the nation.

Then, unless both parties can be influenced by the spirit of compromise and concession, "when," in the language of one of our distinguished senators, "is this struggle to end?" No man can answer as to the years; but he may safely answer, "Not until both parties are exhausted and ruined-not until the North is reduced to a condition worse than it would have been if she had quietly acquiesced in our separation, and not until

the South is worse off than she would have been by remaining in the Union under an abolition administration of the Government."

These considerations would lead me to favor any terms of peace that the South could, with a proper regard for her interests and honor, accept.

The energy, skill, and blood of our fathers helped to achieve and establish the independence of the United States, and our own enterprise, treasure, and statesmen have helped to make the nation one of the greatest and most powerful on the globe. We have the same right to enjoy the power and grandeur of that nation as the people of the North. Our States cut the Gordian knot, retired from the Union, and formed a new Government, because, and only because, our rights in the Union, and under the Constitution we have helped to establish, were denied us. If the people of the North would now concede our rights, and the Federal Government secure them to us, the danger with which we were threatened by remaining in the Union, and the objection we had to it, would be removed, and we might with honor and advantage return to it. The Federal Government has proceeded so far with the war that these are the only terms of peace to which we could reasonably expect it to agree; and I regret to say that I have no expectation that such terms will be proposed, or would be accepted by that Government while the Presidential chair is occupied by the present abolition incumbent. But if, fortunately, during his administration, or within a reasonable time afterward, such terms should be offered, I am free to say the continuance of the war, which must result in the that I should prefer their acceptance by our people to desolation of our country, and the ruin of both North and South. A peace on such terms would be eminently honorable to both parties-neither could claim hibited would command the respect and admiration of the victory-while the strength and valor each has exthe other.

To this extent I am a "reconstructionist." But it must not be understood that I would prefer reconstruc

tion and peace on the terms indicated to a speedy sible; nor must it be understood that I doubt our abilpeace recognizing our independence-if that were posity to achieve our independence if the conflict is continued. But I believe it would be better for ourselves, for our posterity, and for mankind, that we should accept peace with our rights secured within the Union, than to continue the war many years, giving oceans of blood, millions of treasure, and ruining our country, for independence.

On the 31st of July, a writer of distinction in North Carolina, reviewing in the public press the whole subject of the war, closed as follows:

the State is peace-peace upon any terms that will not The one great demand of the people of this part of enslave and degrade us. They may perhaps prefer that the independence of the South should be acknowledged, but this they believe cannot now be obtained; nor, in viewing the situation of affairs, do they see much hope of it in the future. They naturally ask, "If, with no means of recruiting to any extent, we cannot hold our own against the armies which the Yankees now have in the field, how can we meet them with their three hundred thousand new levies which will soon be in readiness, while they can keep their army recruited to a great extent, if not up to its maximum number, from adventurers who are constantly arriving in their ports from every country in Europe?" But, if independence cannot be obtained, then they are for any terms that are honorable-any terms that do not degrade us. They would be willing to compromise upon the amendment to the Constitution proposed by Mr. Corwin, from the Committee of Twenty-six, perpetuating slavery in the States to which I have before alluded. But in what precise way overtures shall be made, or the movement inaugurated, I leave to wiser men and abler statesmen than myself to propose.