2. You will promptly arrest all men who endeavor to or do discourage recruiting, either for the United States or State service, and send them hereto with charges.

3. You will use all means to inform yourself of the movements of the rebels.

I am, captain, very respectfully,

[H. L. McCONNEL,]

Assistant Provost-Marshal-General.

[AUGUST 17, 1862. -For correspondence between Brigadier General John C. Breckinridge, C. S. Army, and Colonel Halbert E. Paine, U. S. Army, concerning the destruction of private property, the imprisonment of citizens, &c., near Baton Rouge, La., see Series I, Vol. XV, p. 550 et seq.]

FORT HAMILTON, N. Y. Harbor, August 17, 1862.

General L. THOMAS,

Adjutant-General U. S. Army, Hdqrs. Army, Washington, D. C.

SIR: In obedience to your orders I have examined the allegation made against Lieutenant Wood. You will see by the testimony of Marshal Smith and Lieutenant Penney that the allegations made by the captain of schooner Mersey are entirely erroneous. Inclosed you will please find a list of the amount of gold turned over by Lieutenant Wood to Lieutenant Casey with Lieutenant Casey's receipt for the same. Also please find inclosed Lieutenant Wood's letter of explanation to me with vouchers which I think cover all the other case. I would respectfully call your attention to the fact that Lieutenant Wood states that he did not turn over any Delaware money to Lieutenant Casey and that Captain Gibson paid B. W. Sanders off in money of that kind. It appears that B. W. Sanders and A. O. Stone received paper money when they were entitled to gold; therefore some one must have been paid in gold who was not entitled to it.

Please find inclosed my order issued to Lieutenant Wood of the 15th of August. Lieutenant Wood states to me that he gave to Lieutenant Casey a list of all the prisoners with three columns, showing the kind of money, kind of watch and number of watch. The department can judge of the honesty of the custodian of the prisoners who has had upward of $20,000 pass through his hands belonging to prisoners and this is the first difficulty that has ever occurred to my knowledge.

I am, very respectfully, your obedient servant,

MARTIN BURKE,

Lieutenant-Colonel Third Artillery.

[Inclosure No. 1.]

ORDERS.] FORT HAMILTON, N. Y. Harbor, August 15, 1862.

I. Whenever prisoners arrive at Fort Lafayette it will be the duty of First Lieutenant C. O. Wood, in charge of that post, when taking from them according to the rules of the post their money, arms, &c., to enter the same in a book in presence of the prisoners and a witness, and to have the entry in the book witnessed.

II. When the prisoner is released he will receipt for the articles so turned over, and with regard to money he will have such money returned to him as he delivered to the officer, whether coin or paper.