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The intercepted dispatches.

We give to-day the remainder of the intercepted dispatches captured on the person of Major Sanders, who sailed from the port of Charleston a few days since on a schooner.--The attempted explanations and conjectures are from the National Intelligencer. The vessel fell into the enemy's hands, of course, but why the correspondence was not thrown overboard we are at a loss to imagines.


Mr. Mallory to Mr. Mason.
[Duplicate.]

Confederate States of America, Navy Department, Richmond, October 26, 1862.
Sir
--Your letter of the 18th ultimo reached me a few days ago. Without your advice and effectual assistance the enterprise for which Lieut. Sinclair has been selected must have been indefinitely deferred, and you have my cordial thanks for your action therein. Your stipulations in behalf of this department are fully endorsed, and will be promptly fulfilled.

The Treasury has under consideration your suggestions as to cotton bonds, and Mr. Benjamin will advise you of the modifications of the form transmitted by you which Mr. Memminger seems necessary.

The speedy completion and departure of Mr. Sinclair's worked regard of so much importance that I must invoke your further aid, should he require it, to enable him to raise funds for the purpose which I have advised him, and the repetition of which here I deem inexpedient.

The courier who brought your dispatches found a means of communication whose safety justifies their further use, and Mr. Benjamin will probably advise you thereof. The completion of the contract of this gentleman will place a peculiar class of ships, never before constructed, upon the sea in our service, and I shall regret if the Treasury Department shall fall to make such arrangements as will enable him to accomplish this important enterprise.

I have the honor to be, very respectfully, your obedient servant,

S. R. Mallory,
Secretary of the Navy.

Hon. James M. Mason, Commissioner, &c., No. 54 Devonshire street, Portland Place, London.

It seems that previous to the departure of Mr. George N. Sanders for Europe, certain legislation of the Confederate Congress which had been proposed in the matter of contracting for the construction of iron-clad ships in Europe encountered the opposition of that gentleman. The following memorandum from him on this subject is found among the intercepted papers. Addressed to "Reld Sanders," it was probably placed by the latter in the hands of Mr. Memminger or Mr. Mallory, respectively, the Secretaries of the Confederate Treasury and Navy:

Richmond, Aug. 5, 1862.
--Any legislation in regard to the construction of iron-clad steamers until time is given me to get mine under way will be very unjust. My detention here was necessary to the perfection of the contracts, which took much time and reflection. The final instructions of the Navy Department have been issued but a few days Bunglers entering the European market might endanger the entire scheme. Great skill and diplomacy must be exercised to avoid the interference of European Governments.

No one is entitled to my suggestions until full time is given me to carry them out.


to Raid Sanders.

to this is added by Sanders the following list of names, consisting of persons connected with the Confederate Administration and Congress. Several of the names, it will be seen, have a cross prefixed to them, intimating, probably, that they already favored his views, or needed to be still further approached on the subject. The list is as follows, in G. N. Sanders's hand writing:

The following unsigned letter is also found among the captured papers:

The Hon. S. R. Mallory, Secretary of the Navy:
Sir
--As I contemplate leaving here, without loss of time, for Europe, for the purpose of rendering important and valuable service to the Confederacy, I deem it proper to recommend to you the necessity of my having the co-operation of Commodore Forrest in the plans which have been suggested to you. He is an official of experience, and well qualified to lend important assistance, which may result in the complete realization of my hopes and expectations. Indeed, if Commander Sinclair could also accompany me, or be sent out to give his attention to matters connected with the plans I have in contemplation, I am satisfied that, with the professional knowledge of these gentlemen, we cannot fail to subserve our interests and render high and important service to our cause, both in superintending and constructing the vessels built to cut up the enemy's commerce.

I have the honor.

The following memorandum appears to be in the same handwriting with the above letter, though much disguised or very carelessly written:

Galbraith & Co., of Scotland, and W. S. Lindsay & Co., of London, are the houses with whom I had the negotiation about the steamers. I request Captain Sinclair, of the Confederate Navy, to make all preliminary arrangements for the contract by my return. See him first. He will meet you in London.

Geo. Thompson & Co., Glasgow, will make proposals for the construction of at least one steamer. They have the drawing and estimates complete.

Lindsay & Co. will negotiate the naval store bonds.

B. Rice & Co. may undertake enough to load one vessel (Nova Scotia) with shoes and clothing under the North Carolina contract.--Turpen 100 should bring per gallon $2; rosin should bring $5.

C. S. Navy Department,
Richmond, Oct. 27th, 1862.
Hon. C. G. Memminger, Secretary of the Treasury:
Sir
--I have the honor to call your attention to the copy of the secret joint resolution of Congress, which was sent you on Saturday, and to so much of my recommendation to Congress upon the subject of the act as shows the basis upon which it was passed, a copy of which was also sent you on Saturday.

Under this authority, contracts have been made with Mr. Geo. N. Sanders, by this Department, for six ships to be paid for in cotton, a copy of which contract is herewith enclosed.

Mr. Sanders informs me that if the Government will fix the price of the cotton to be delivered, he can execute his contract, and not otherwise, and deeming the ships important to the public interest, I suggest to your consideration the expediency of stating the price, and of pursuing, with reference to payment in cotton for these ships, the course you have adopted with regard to the cotton bonds.

I am, respectfully, your obedient servant.

S. R. Mallory, Sec'y of the Navy.

Mr. Memminger to Mr. Mallory.

Confederate States of America,Treasury Department,Richmond, Oct. 30, 1862.
Sir
--I approve the suggestion made by you of making your contract for building iron clad vessels in Europe conform to the arrangements of the cotton certificates sent to the Hon. J. M. Mason. I enclose a form of each of these certificates. Upon the meeting of Congress an appropriation must be made to meet your contracts, and the terms can then be altered so as to conform the mode of payment to the cotton certificates, fixing a price for the cotton, and providing for the delivery at any port upon adding the charges of transportation.--The only limit of these combined operations will be the quantity of cotton which the Government can purchase, which I hope will be found ample.

Respectfully, your obedient servant,

C. G. Memminger,
Secretary of the Treasury.

Mr. Mallory to Mr. Mason.

Confederate States of America,Navy Department,Richmond, Oct. 30, 1862.
Hon. James M. Mason, Commissioner of the Confederate States to Great Britain, London. Sir
--Mr. Sanders has, as you are aware, contracted with this Department for the construction in England of six iron-clad steamers, combining the capacities of the freighting and fighting ships in a manner which will enable them to force the blockade of our ports.

The interest of the country will be much benefitted by the prompt construction of these vessels; and I beg leave to invoke your interest not only in behalf of our enterprises already in progress, but in behalf of this also.

The Secretary of the Treasury has this day addressed to me a note upon the subject of the cotton to be delivered in liquidation of these contracts, and I enclose herewith a copy.

I have the honor to be, very respectfully, your obd't serv't.

S. R. Mallory,
Secretary of the Navy.

[Duplicate.]

Treasury Department, C. S. A.,Richmond, Oct. 21, 1862.
Messrs. Fraser, Trenholm & Co., Liverpool, Great Britain: Gentlemen
--The enclosed letter to Mr. Jas. Spence is sent to you for your guidance and consideration.

Resp'y, your obd't serv't,

C. G. Memminger,
Secretary of the Treasury.

Mr. Memminger to Mr. Spence.
[Duplicate.]

Confederate States of America,Treasury Department,Richmond, October 21st, 1862.
James Spence, Esq., Liverpool, G. B:
Sir
--As you have been appointed financial agent for the Confederate States, and Messrs. Fraser, Trenholm & Co. are its depositaries under our law, I desire that you would confer together on the matter submitted by this letter.

I have on hand gold and silver coin, (chiefly the former,) two and a half millions of which I desire to apply in payment of articles purchased in England by our agents for the use of the Confederate Government. We find it impossible to purchase a sufficient amount of exchange for these purposes, and the small amount to be had is at such high rates that it would be desirable to furnish a substitute. I propose to make payment for purchases by a transfer to the creditor of so much of this coin as may be requisite. I presume that when the coin thus becomes bona fide the property of a British subject, that the British Government would, at his instance, permit any of its vessels to bring over the same for him. If this expectation be realized the coin here would be as valuable as exchange, and in England would probably realize its mint value, less freight and insurance.

To enable you to carry out any arrangements you may deem advisable, Messrs. Fraser, Trenholm & Co. are authorized to make an absolute transfer of the coin, or to draw bills for the same on E. C. Elmore, Esq., Treasurer, payable here, and a copy of this letter is sent to each of you, that you may act in concert, and give us the benefit of your united council.

I am remitting, by opportunities as they occur, the bonds of the Confederate States, the proceeds of which, when sold, are intended to be applied to the contracts of which you have been advised.

Respectfully, your obedient servant,

C. G. Memminger,
Secretary of the Treasury.

Mr. Memminger to Messrs. Fraser, Trenholm & Co.
[Duplicate.]

Treasury Department, C. S. A.,Richmond, Oct. 24, 1862.
Messrs. Fraser, Trenholm & Co., Liverpool, G. B: Dear Sirs
--Your letter of July 21st is just received, advising sales per Economist, and balances to the credit of the Confederate States of £7,121 19s. 11d., and £322 8s. 9d. All these credits, with all other remittances from this Department, you will place to the credit of the Treasurer of the Confederate States, subject to his draft. The course of business at the Treasury is to draw on the depositaries in favor of third parties. When these parties are creditors, the payment of them being vouched, ends the matter. When the third party is merely a disbursing officer of the Government, the effect of the Treasurer's draft on the depositary is to transfer the amount to the credit of the disbursing officer, on which he may check at pleasure, he having to account at the Treasury for the whole amount.

So, too, when bills of exchange, or any other remittances, are forwarded to you by the Secretary of the Navy or of War, they are not to be credited to the Treasurer, but to the officers directed to such Secretaries, and your account must be rendered to them, and not to this Department.

At the suggestion of our Minister in England I propose to issue cotton certificates, of which I send you a specimen. When counter-signed by him he will deliver them to you to receive the money to be paid for them. You will take care that the date in the endorsement corresponds with the date of receiving the money. The proceeds will be deposited to the credit of the Treasurer, and it is important that I should be advised of any sales as promptly as possible.

In regard to the payment of the £60,000 mentioned in your letter of July 21st, to Captain Caleb Huse, I am unable to speak definitely until I can get sundry details, of which I will advise you in another letter.

Respectfully, your ob't serv't,

C. G. Memminger,
Secretary of the Treasury.

Mr. Memminger to Messrs. Fraser, Trenholm & Co.

Treasury Department, C. S. A.,Richmond, Oct. 21, 1862.
Messrs. Fraser, Trenholm & Co., Liverpool, G. B: Dear Sirs
--You will please extend a credit to Major J. B. Ferguson to the extent of five hundred thousand dollars, and give him any assistance in your power to make his purchases for the Confederate States.

I have already informed you and Mr. Spence that I have on hand two and a half millions of dollars in coin, upon which drafts can be made, or which you are authorized to transfer to any parties who may furnish the means to make our purchases. This fund, or any amounts which may be realized upon our bonds, will, I trust, enable you to meet the credit herein extended to Major Ferguson, in addition to that heretofore given.

Respectfully, your obd't serv't,

C. G. Memminger,
Secretary of the Treasury.

Mr. St. John to Mr. Smith.

Confederate States of America,War Dep't, Nitre and Mining Bureau,Richmond, Oct. 28, 1862.
Sir
--The undersigned, for and on behalf of the Confederate States of America, will receive from you shipments of nitre, to be delivered within the limits of the said Confederate States, and not to exceed one thousand tone, upon the following terms and rates of payment:

  1. 1st. For nitre delivered at any Confederate port east of the Mississippi river seventy-five (75) cents per pound of ninety per cent. purity, if delivered on or before March the 1st, 1863.
  2. 2d. For nitre delivered as above, but after March the 1st, 1863, sixty cents per pound, of ninety per cent, purity.
  3. 3d. For all nitre delivered as above at Confederate ports between the Mississippi and Rio Grande rivers, fifty cents per pound, of ninety per cent. purity.
It is to be distinctly understood, in connection with the above stipulation, that all payments thus due are to be made and received in the Treasury notes of the Confederate States, or, if preferred, in their bonds; and that the inspection of a duly accredited officer from this Bureau shall be fin as the quality of the nitre received, and that inferior qualities under ninety per cent. purity shall be paid for at a pro rata valuation.

J. M. St. John,
Major and Sup. C. S. Nitre and Mining Bureau.
Approved: J. Gorgas,
Colonel and Chief Ordnance.
Mr. Wm. K. Smith, London, England.
[With the above letter were enclosed clippings from the Richmond papers, relating to the war.]

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