Southern Historical Society Papers, Volume 9.
Reverend J. William Jones, Ed.

Establishing his headquarters at Lexington, General Smith addressed himself vigorously to the discharge of the many duties incumbent upon him. Orders were issued for the collection of large amounts of supplies of every description. Corn could be bought at $1.50 per barrel, and wheat at $1.00 per bushel; bacon was abundant at seven cents per pound in Federal currency, but rose rapidly. All purchasable quartermaster's stores in Lexington were bought up, and large contracts made with the woollen factories for cloth. Confederate treasury notes were our only currency, and it was necessary to force the people to take them to an extent adequate to the purchase of indispensable supplies. In general, articles were immediately enhanced in price more than enough to make up the difference between the Federal and Confederate currencies. In the North gold was at 22 pr. c. premium, in the South at 75 pr. c. An order was issued compelling the merchants to open their stores and accept Confederate money for such things as the soldiers might desire to purchase. This was forcing the currency beyond what was absolutely necessary, and doubtless, operated to depreciate it. At all events, it did not seem to gain much upon the confidence of the people. If the government had furnished General Smith with a few hundred thousand dollars in gold it could have been used advantageously, and with great benefit to the cause. Parties were sent in all directions to collect United States Government property, principally horses and mules, which had been left in all quarters. There was not at this time sufficient fixed ammunition in reserve to supply one battery. Major Brown, Chief of Ordinance, set to work energetically to supply this deficiency. Authority was issued to various persons to raise companies, battalions and regiments. It was unfortunate that depots of supplies were not established, at once, at Richmond, and at Danville, and as soon as Morgan evacuated Cumberland Gap, at Loudon. Orders were sent to this effect by General Bragg some time after he entered the State, but too late to accomplish anything at all adequate to what proved to be our necessities. Military commissions were established, and discipline vigorously maintained.

It was to be decided in what manner the Union men in Kentucky, who had persecuted those who sympathised with the Confederate cause, were to be treated. At their instigation Federal commanders had taken the property of secessionists, and seized and imprisoned their persons, or driven them into exile. The helpless families of those who had joined the Southern armies were constantly insulted, and often seriously injured.