Department sends the funds across and arranges the distribution of the funds on Major Blair's order.

Very respectfully, your obedient servant,

L. B. NORTHROP.

Commissary-General of Subsistence.

CONFEDERATE STATES OF AMERICA, WAR DEPARTMENT,

Richmond, Va., December 29, 1864.

Hon. G. A. TRENHOLM,

Secretary of the Treasury:

SiR; I have examined the paper of General E. Kirby Smith, referred by you the 23d instant, in which the indebtedness of the Trans-Mississippi Department is approximately stated for the year ending September 30, 1864, at $60,333,099. He includes under the title of amounts due $20,277,465, and from estimate $44,055,634. To this amount is to be added the debts contracted since that date. A portion of this sum has been remitted, but it is supposed that the debt is quite as large now or larger than it was September 30, ultimo.

The requisition of the Quartermaster-General, unanswered,

now amounts to the sum of . . . . . . . . . . . . . . . . . . . . . . . . . . $128,360,584. 87

Those of the Commissary-General. . . . . . . . . . . . . . . . . . . . . 34,002,684. 65

The Ordnance service is in arrears. . . . . . . . . . . . . . . . . . 5,640,388. 00

The Medical service is in arrears. . . . . . . . . . . . . . . . . . . 3,090,333. 00

The Engineer services is in arrears, exclusive

of trans-Mississippi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000. 00

The Niter and Minning service. . . . . . . . . . . . . . . . . . . . . . . . 5,600,000. 00

The Department is constantly importuned for the payment of money due for necessary supplies which have already been furnished, and is constantly advised that supplies cannot be obtained for the want of the requisite funds. Its whole service is in a fair way to perish from inanition.

I am satisfied that the discredit of the Government has arisen, in a measure, from the delay that has been made in the liquidation of these pressing, urgent, and meritorious claims. I am aware of the many strong consideration that induce a restriction of issue as far as practicable; but I venture to suggest that the currency itself probably suffers more discredit from the failure to meet the engagements of the Government than could result from inflation by the issued necessary to redeem them.

You can scarcely realize to what extent the inability or failure to meet the obligations of the Departments has been profilic of mischief. It has been the occasion or execute for desertion, marauding, sale of clothing and equipments among soldiers; it has prevented the accumulation of supplies; it has affected the efficiency of transportation; it has produced carelessness or indifference among contractors; officers are resentful, and soldiers reckless, discontented, and suffering. Most seriously apprehensive that unless the indebtedness of this Department now existing can be provided for without delay, that its operations cannot, with daily increasing obstructions, embarrassments, and antagonisms among the people themselves be carried on, I am constrained to invoke your earnest attention to the subject, and to urge the immediate application of all practicable measures of relief.

Very truly, yours,

JAMES A. SEDDON,

Secretary of War.