good faith require 145 prisoners to be discharged for those sent and received by us. I permitted Mr. Wood to take his copy of the papers signed by him and myself. These papers were not to take effect until ratified by the Secretaries of War of the respective Governments. The copies are marked C and D. Of course these papers not having been ratified are not of any validity. I returned, marked E, a list of the 79 prisoners brought here from Salisbury and suggestions of prisoners to be taken from that list and one to be added to it.

S. S. BAXTER.

[Inclosure Numbers 1.]

WAR DEPARTMENT, October 7, 1862.

S. S. BAXTER, Esq.

SIR: I understand that a considerable number of political prisoners have been sent here by the Federal Government for exchange. We do not acknowledge the right of exchange and cannot recognize it, but as we are engaged in examining the cases of our political prisoners with a view to their release and desire that such release shall benefit our own unfortunate citizens in the hands of the enemy as much as possible, I must request that you will forthwith recommend for discharge all who may properly be discharged. They may be delivered to the agent of the enemy for the exchange of prisoners, if they prefer returning in that way to their homes, or if their stay is considered dangerous, or such of them as prefer it, may be discharged here, if it is compatible with the public safety. You may furnish a list of the discharged prisoners to the agent of the enemy. You will as heretofore confine your discharges to persons arrested for political offenses and retain those charged with violations of municipal laws or with being spies.

Very respectfully, your obedient servant,

GEO. W. RANDOLPH,

Secretary of War.

[Inclosure C.]

Memorandum of agreement between William P. Wood, an agent appointed by Edwin M. Stanton, Secretary of War of the Government of the United States, and Sydney S. Baxter, an agent appointed by George W. Randolph, Secretary of War of the Government of the Confederate States, in reference to citizens who, if taken, would be imprisoned in the jurisdiction assigned by the United States Government to General Wadsworth and by the Confederate States Government to general Winder.

1. Persons taken in arms who belong to companies authorized either by the State of Virginia or the Government of the United States or the Government of the Confederate States are hereafter to be treated as prisoners of war and exchanged as such.

2. No citizen peacefully pursuing his ordinary avocation is to be molested by either army for his political opinions or as a hostage for other citizens. But this exemption shall not be extended to protect citizens in riotous or seditious conduct or in acting as spies, nor shall it be so extended as to prevent officers commanding armies from removing temporarily (but not confining in prison) any persons they may deem necessary from the theater of immediate operations, nor shall it be construed so as to prevent the arrest of any person against whom civil or criminal process has been lawfully issued, and if such person be arrested by the military authority he shall be immediately