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‘ [700] south by Jeff Davis and his partisans is very large, including not only the plunder of the Richmond banks, but previous accumulations. They hope, it is said, to make terms with General Sherman, or some other commander, by which they will be permitted, with their effects, including this gold plunder, to go to Mexico or Europe. Johnston's negotiations look to this end.’

After the cabinet meeting last night, General Grant started for North Carolina, to direct operations against Johnston's army.

Edwin M. Stanton, Secretary of War.

At the same time with the publication of the above, the following reasons for the rejection of Sherman's memorandum were set forth, unofficially, but by authority:

1st. It was an exercise of authority not vested in General Sherman, and, on its face, shows that both he and Johnston knew that General Sherman had no authority to enter into any such arrangements.

2nd. It was a practical acknowledgment of the rebel government.

3rd. It undertook to re-establish rebel state governments, that had been overthrown at the sacrifice of many thousand loyal lives and immense treasure, and placed arms and munitions of war in the hands of rebels at their respective capitals, which might be used, as soon as the armies of the United States were disbanded, and used to conquer and subdue loyal states.

4th. By the restoration of rebel authority in these respective states, they would be enabled to re-establish slavery.

5th. It might furnish a ground of responsibility on the part of the Federal government to pay the rebel debt; and certainly subjects loyal citizens of rebel states to debts contracted by rebels in the name of the state.

6th. It puts in dispute the existence of loyal state governments, and the new state of West Virginia, which had been recognized by every department of the United States government.

7th. It practically abolished confiscation laws, and released rebels of every degree, who had slaughtered our people, from all pains and penalties for their crimes.

8th. It gave terms that had been deliberately, repeatedly, and solemnly rejected by President Lincoln, and better terms than the rebels had ever asked in their most prosperous condition,

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