the moment they left, the people resumed their allegiance to the Mexican authorities.

Governor Serna, the civil governor of the State of Tamaulipas, who was elected two years since by a vote of the people, but had been unable in consequence of political disturbances to take his seat, and who was restored by the revolution headed by Cortinas, arrived at matamoras on the 22nd of November. All parties appeared to acquiesce cordially in his government, and a spirit of earnest friendship for the Government of the United States prevailed in that city.

I have the honor to be, with much respect, your obedient servant,

N. P. BANKS,

Major-General, Commanding.

HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, December 11, 1863.

Major General H. W. HALLECK, General-in-Chief, U. S. Army:

GENERAL: Upon the occupation of Brownsville by the troops of the United States, it was found that large quantities of cotton had been transported across the river to the city of Matamoras. Representations were made by prominent citizens of Texas that a very large portion of this property was owned by the rebel Government, and was to be used for purposes hostile to the United States; that other portions of the property were owned by prominent rebel officers, many of whom were in Matamoras supervising its disposition for their individual benefit; also that a large part of the property so held by the rebels had been stolen from the citizens of Texas. I felt it my duty to call the attention of the American consul at Matamoras to this subject, and to request him to bring it to the attention of the representatives of the Mexican Government, and ask that the property so taken from the United States should be returned to the persons from whom it was taken, or

that it should be held by the Mexican authorities until proper investigation could be made of the facts connected with it and satisfactory assurances given that it was not to be used to aid the rebellion against the United States.

A large number of rebel officers were known to be in Mexico engaged in movements hostile to the United States. I requested him to present these facts to the Government, with such proofs as were in his possession, and to ask that such officers should be required to suspend all acts of hostility to this Government, or than they might be surrendered to this Government. My communication to the consul is inclosed herewith; it bears date of the day of my departure from Brownsville. I have no communication from him upon this subject. At aransas pass, however, I received information from General Dana stating that much excitement had occurred in matamoras among the cotton traders; that it was understood that foreigners had been interdicted the privilege of trade by the Mexican authorities, and that in consequence the price of cotton in Matamoras had fallen to 25 or 28 cents a pound, and great efforts were being made at that time to transfer it from the owners to the citizens of Mexico. An extract from General Dana's letter is herewith inclosed.* The rebels probably felt its effect.

I have the honor to be, with much respect, your obedient servant,

N. P. BANKS,

Major-General, Commanding.

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*Not found.

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