EXECUTIVE DEPARTMENT, Raleigh, N. C., July 27, 1861.

Honorable L. P. WALKER, Secretary of War.

SIR: I have the honor to inclose you the report of Colonel Johnston, who was sent by me agreeably to your request to examine the Salisbory factory as a suitable depot for the prisoners of war and the terms on which it could be had. You can rent it by the year of purchase it. In either event an expenditure will be required to fit it for the purpose-such as bars to the windows, ja protecting inclosure of high palings around all or a part of the grounds.

I shall meet with great difficulty in providing a suitable guard, as volunteers for the war entertain the greatest repugnance to such a confinement themselves, and it would be very difficult to enlist persons for the specific duty, and if other arrangements could be made it would relieve me of an unpleasant because a very difficult duty. I regret there should be any difficulty in effecting exchanges which would prove mutually beneficial.

I must respectfully ask that no more prisoners be sent here unless I am notified in advance, that preparation can be made. The prisoners brought here by Lieutenant Todd are most inconvieniently situated to me having no suitable place for them and being unapprised of their coming till they were present.

Most respectfully,

HENRY T. CLARK.

[Inclosure.]

RALEIGH, July 25, 1861.

His Excellency Governor CLARK:

DEAR SIR: By your directions I proceeded to Salisbury to obtain the necessary information in relation to the Chambers factory and appurtenances proposed to be purchased for the use of the Confederate States as a prisoners' depot. The lot comprises sixteen acres within and contiguous tothe corporate limits of the town of Salisbury, and contains the principal factory building, about ninety by fifty feet, three stories high, with an engine house at one end about sixteen by eighty feet, contructed of good brick; also six brick tenements with four rooms each, and a larger superintendent's house of framed materials, with smith shop and two or three inferior buildings. The property was originally used as a cotton manufacturing establishment and was devised by Maxwell Chambers to A. D. Davis, excutor, to be sold for the benefit of three several parties, all of whom have authorized the executor to sell the entire property at $15,000. Mr. Davis believes that all the parties will take the bonds of the Confederate States in payment. This fact he hopes to communicate in a few days, as soon as they can be seen. Without making any accurate calculations as to the cost of repairs for the purposes intended I should think $2,000 would be amply sufficient. Personall property, principally of manufacturing machinery, supposed to be worth $500, is included in the $15,000, the proceeds of which would partially pay for the repairs.

The location of the property is very eligibel, shaded by a beautiful grove of oaks and well supplied with good water. The buildings and ground probably cost origin the price now asked. Mr. Davis porposed alslo to lease the property to the Government at $1,000 per annum, or longer at same rate, the lessee paying for all repairs. The Government is authorized to occupy the building immediately as