producers, always ready when emergency arises to take up their arms in defense of the cause they espouse. That their leaders will espouse the cause of the empire purely out of hostility to this Government, I feel there is no doubt. There is a hope that the rank and file may take the opposite side if any influence is allowed to work upon their reason; but if a neutrality is to be observed which allowed armed rebels to go to Mexico and which keeps out all other immigrants, and which also denies to the Liberals of Mexico belligerent rights-the right to buy arms and munitions in foreign markets and to transport them through friendly territory to their homes-I see no change for such influence to be brought to bear. What I would propose would be a solemn protect against the establishment of a monarchical government in Mexico by the aid of foreign bayonets. If the French have a just claim against Mexico I would regard them as having triumphed and would guarantee them suitable award for their grievances. Mexico would not doubt admit their claim if it did not affect their territory or rights as a free people. The United States could take such pledges as would secure her against loss. How all this could be done without bringing on an armed conflict others who have studied such matters could tell better than I. If this course cannot be agreed upon then I would recognize equal belligerent rights to both parties. I would interpose no obstacle to the passage into Mexico of emigrants to that country. I would allow their party to buy arms or anything we have to sell, and interpose no obstacle t their transit. These views have been hastily drawn up and contain but little of what might be said on the subject treated of. If, however, the serve to bring the matter under discussion they will have accomplished all that is desired.

U. S. GRANT,

Lieutenant-General.

WASHINGTON, June 19, 1865.

Honorable E. M. STANTON,

Secretary of War:

I would respectfully recommend that the same freedom of trade be extended west of the Mississippi River as is authorized east of it. If the 25 per cent. tax has not yet been removed from cotton shipped from the Southern States I would suggest whether it would not be advisable to remove it.

U. S. GRANT,

Lieutenant-General.

NEW ORLEANS, LA., June 19, 1865. (Received 20th.)

Brevet Major-General RAWLINS,

Chief of Staff:

I will leave here to-morrow, the 20th, to make a quick trip along the coast of Texas. The information which I may gain my enable me to determine the best place to put the Fourth Army Corps. Galveston, Indianola, and Corpus Christi are, or ought to be, occupied by this time. Gordon Granger, being the senior officer, is in command of all the troops in Texas. I have had many delays I shipping troops from the delay of the Twenty-fifth Army Corps, which has come in this direction at a snail's pace. The transports occupied by it will make me all right, and