COMMERCIAL INTERCOURSE. 



199 



the quantity of supplies allowed to be furnished for 

 money. 



It is impossible at once to arrive at the best possible 

 ways of accomplishing the great objects which Con- 

 gress had in view in the several acts relating to com- 

 mercial intercourse ; but if these objects themselves be 

 kept steadily in view, namely, (1st) non-intercourse 

 between loyal States or districts, and States or dis- 

 tricts controlled by insurgents; and (2d) modified in- 

 tercourse between the loyal States or districts, and 

 States or districts partially regained to the Union, the 

 best modes of accomplishing them will gradually dis- 

 close themselves. You wifl diligently observe the 

 course of events, and hear attentively all suggestions 

 made by respectable and loyal citizens, and report to 

 me whatever pay seem to you proper for considera- 

 tion in establishing or modifying the Regulations of 

 the Department. 



Nothing occurs to me as needing to be now added, 

 except that hereafter the Supervising Special Agents 

 may establish, in conjunction with, or obedience to, 

 the Generals commanding Departments, lines within 

 which trade, more or less limited, may be carried on 

 without awaiting my sanction, taking care, however, 

 to give as general notice as practicable, through the 

 press and otherwise, of the establishment or modifica- 

 tion of such lines. All action under this authority 

 must be immediately and specifically reported to the 

 Department. With great respect, 



S. P. CHASE, Secretary of the Treasury. 



The following letter from Gen. Arrant was 

 written in relation to the above instructions of 

 the Secretary: 



HEADQUARTERS DEPAETMENT OP THE TENNESSEE, ) 

 VICKSBITRG, Miss., July 2lst, 1863. $ 

 Hon. S. P. Chase, Secretary of the Treasury : 



SIR : Your letter of the 4th instant to me, enclosing 

 copy of a letter of same date to Mr. Mellen, special 

 agent of the Treasury, is just received. My Assistant 

 Adjutant-General, by whom I shall send this letter, is 

 about starting for Washington ; hence I shall be very 

 short in my reply. 



My experience in West Tennessee has convinced me 

 that any trade whatever with the rebellious States is 

 weakening to us at least thirty-three per cent, of our 

 force. No matter what the restrictions thrown around 

 trade, if any whatever is allowed it will be made the 

 means of supplying to the enemy what they want. 

 Restrictions, if lived up to, make trade unprofitable, 

 and hence none but dishonest men go into it. I will 

 venture to say that no honest man has made money in 

 West Tennessee in the last year, while many fortunes 

 have been made there during the time. 



The people in the Mississippi Valley are now nearly 

 subjugated. Keep trade out for a few months, and I 

 doubt not but that the work of subjugation will be so 

 complete, that trade can be opened freely with the 

 States of Arkansas, Louisiana, and Mississippi ; that 

 the people of these States will be more anxious for the 

 enforcement and protection of ourla\ys than the people 

 of the loyal States. They have experienced the misfor- 

 tune of being without them, and are now in a most 

 happy condition to appreciate their blessings. 



No theory of my own will ever stand in the way of 

 my executing, in good faith, any order I may receive 

 from those in authority over me; but my position has 



fiven me an opportunity of seeing what would not be 

 nown by persons away from the scene of war, and I 

 venture, therefore, to suggest great caution in opening 

 trade with rebels. 



I am, sir, very respectfully, your obedient servant, 

 U. S. GRANT, Maj.-Gen. 



On the llth of September, the Secretary of 

 the Treasury issued Revised Regulations for the 

 government of the limited commercial inter- 

 course, licensed by the President, with the in- 

 habitants of States and parts of States declared 

 to be in insurrection. The Revised Regula- 



tions were as follows : The same districts and 

 agents were appointed as for collecting aban- 

 doned property. Supervising special agents 

 were to make local rules, to be carried out by 

 assistant special agents, local and special agents, 

 and agency aids. Permits, certificates, and 

 clearances were required for the transportation 

 of all goods to or from insurrectionary States; 

 collectors and surveyors could grant permits ; 

 all intercourse beyond the line of military oc- 

 cupation was prohibited ; no clearance or per- 

 mit allowed to blockaded ports; supervising 

 special agents were authorized to designate the 

 trade districts, also supply districts, without 

 the limits of trade districts, on the approval of 

 the commanding genera], the manner of mak- 

 ing applications for the permits prescribed ; 

 provisions for the establishment of trade stores 

 in trade districts ; authorized traders forbidden 

 to wholesale, exfiept at Memphis and Nash- 

 ville ; supplies for families permitted on evi- 

 dence of their necessity, not exceeding one 

 month ; supplies might be purchased by all loyal 

 persons ; every person applying for permits to 

 purchase or sell cotton, tobacco, or other mer- 

 chandise, was required to make affidavit that he 

 "is in all respects loyal and true to the Govern- 

 ment of the United States ; that he will faith- 

 fully conform to the Proclamations and orders of 

 the President of the United States, and of the 

 military governors and generals exercising au- 

 thority under him, and to Department Regula- 

 tions authorized by law ; and that he will at all 

 times, by his conduct and conversation, and by 

 every other means he can properly use, aid in 

 suppressing the rebellion, and restoring obedi- 

 ence to the Constitution and laws of the United 

 States." 



No payment can be made in gold, bullion, or 

 foreign bills. Permits and certificates were to 

 be renewed every thirty days ; every vessel or 

 vehicle must have a permit, and boats on "West- 

 ern waters a manifest and clearance ; agency 

 assistants were to be appointed on cars and 

 boats. The following fees were prescribed : 



Fees for administering oath and certifying affidavit 10 cents. 



Fees for each authority from agent 8 dolls. 



Fees for certificate of Local Special Agent 10 cents. 



Fees for each permit for purposes of trade 20 cents 



Fees for each permit to purchase cotton in any in- 

 surrectionary district, and to transport the same 

 to any loyal State, per pound 4 cents. 



Fees for permit so to purchase and transport to- 

 bacco, per hhd 2 dolls. 



Fees for permit so to purchase or sell and transport 

 to or from such district other products, goods, 

 wares, or merchandise, five per centum on the 

 sworn invoice value thereof at the place of ship- 

 ment. 



Fees for each permit for individual, family, or plan- 

 tation supplies, on every purchase over $20 and 

 not over $50 5 cents. 



Fees on every purchase over $50, and not overflOO, 10 cents. 

 " " " $100 15centa. 



For permits for individual, family, or plan- 

 tation supplies, not over twenty dollars in 

 amount, no charge is allowed, except for rev- 

 enue stamps on affidavits and certificates in 

 districts under restriction ; and no charge, ex- 

 cept five cents for permit and five cents for 

 each revenue stamp on affidavit and certificate, 



