Newspaper of The New York Herald, January 17, 1862, Page 2

Newspaper of The New York Herald dated January 17, 1862 Page 2
Text content (automatically generated)

V, NEWS FROM THE SOUTH. | Tmim6m Opposed to the Beconstnictioo of the Inioa. LEGISLATIVE PROCEEDINGS. Rebel View of the War Policy of the North. Jeft Davis' Military Dictation of lie Rebels. THE LOUISIANA SUGAR CROP I Ao, Ac., Ac. We give bslow some interesting extracts from rebel newspapers, showing the progress and condition of matters in the rebellious jutes. TENNE8SEE LEGISLATURE. NO KKOONSTKl CTION OF TUB UNION, she following resolutions were introduced in th? Senate on the 10th ult. by Mr. Cardwoll, anil were referred to the Committee on Confederate R- 1st ions:? A seem utipm axnuwrivk or THX opinion or tux uwuslaturn op tbnnkspsk 1* bkgard to ocr kl'ttrk policy and dktrrhikatt )n to maintain Of s dbclabation op inpbpf.nlbni.n or tub old t* iknmknt or nm cmtbo status. Resolved, by the General Asst.mbly of the State of TcnDeeeee, as Its unanimous sense, that any and nil propositions of the Congress of the (so culled) United States of America to reconstruct a Union which they have prostituted to the base purposes of annihilating the liberties, trampling upon the rights, destroying tin lives and plundering the people of the Confederate Slates, thus driving them to the assertion of their independence and ihe for matiun of a new confederacy, for the maintcnanc' of their inalienable rights and the preservation of their sovereignty, u but another form "inior which our et emics would subjugate the South and reduce us to the desnot ism of their degraded doctrines, and that wo cannot view any such proposition o. reconstruction in sny other light than as a crowning insult to our and manhood to thus approach us after the acts of rapine, murder and barbarity which haw marked their inhuman invasion of our territory; and that, any such proposition should be met promptly and unhesitatingly with our indignant rejection. Reso'ved, That the secret sympathizers of Id tlie South, if any tliero bo, who may favor any such insulting approach oi' nur enemy, deserve to bo branded as traitors to thu So :th anil enemies of their country. Resolved, Thn' any commi si vers appointed byth-Iin eoln Ckmi.rrft at W'jihinfftrm to the government rif the Confederate. Sates, hwinn frnr the otrjert of their mission a recuiiStruct h/n of the oid Utnon.ikoutd he at once pr.emf Uyrjec'ei by the govei-mnent of th' Can/e-lercte States. Resolved. '1 hat tho Confederate States aud their people ardently desire a peaceful solution of cxia'ing difficulties with the Noi thorn States, aud tlist ?u honorable pen., guaranteeing our independence, would be huiied by our paople with joy and satisfaction; but that, having taken up arms to achieve our independence ot a government which has cruelty persecute: and oppressed us, and which has shown a determination to overturn every guaranty of our constitutional tights, by a long train < !' aboaos and usurpations, the people of Itounesace cannot, with honor and safety to themselves and with security to their posterity, consent to any treaty whi. h shall not recognise their entire independence of any political c-nneclton with the govornmcut of the (so-cailed) United States. Resolved, That the Governor bo requested to forward a copy of these resolutions to each of our representatives in Congress, and also a copy to each of the Governois of the Confederate States, with a request that they be laid before their respective Stale I.ocisluturos. OPPOSED TO PROPOSITIONS FOR PEACE, [From the Memphis Avalanche, Pec. 1 ?.] The preamble and resolutions oilernd by r-aulsbury, of Delaware, in tho federal Senate, proposing the appointment of commissioners to c infer with cominiasirners from the seceded Stales, in relation to ll.e seitieni it < f the difficulties between tbe North and South, are indt. a live of a ceairo for peaco en the part of the federalists. The offering of such res 'lHtn riB at thi? time, ami the reception of them ly the Seuate. show that our enemies rtnetiAir <?f nrni. rVhe t h" Iinn hv !'. .r<- It Id ft .-iiinill cant fact thai theTEiutiual uu<1 cowardly .Sumner wxs the only Senator who oflbrod icy op|wcitk-n to the resolutions. Even the obstreperous IJaie only tuiggcvted the addition Of Buchanan to the commissi,!! rs named, while the other rampant ab-ilitionists remained silent. It is, also. ?suggestive Tact that the resolutions were informs ly passed over without being tabled. We cannot but regard this movi m?nt as an evi.laccn (hat light is breaking upon the neru ;htc<1 onderstai dtngsof the Northern people, that reaaoii it resuming her throne, and that (he frenzy of Northern fanatic tarn is bating. It is a ray of i*-ace thrown ujkjd the murky gloom of wee. It is true that the preamble to tho res lotions reiterates the absurd declaration or I.incoln that tbo In ion must lw preserved. with the important qnallhcatiou. however, that *k ii.d and fraternal feeling between the people ol all the Slates i indispensable to the maintenance of a happy and proep' ous Union," which the mover must have known to be hopoless. after ail the treachery, atrocity fend deadly wrongs of which'ho North has b#cn guilty. Bat even, with this preamble, the re-mluti ns prove. ?o Sar as they seem to be favored by the Senate, that the Uncolnitiw dei-pair of bringing back the soutn by military force, and are now willing to resort to negotiation ad persuasion. Hat the North had better understand at one - no proposition for a reconstruction of the Union which can be made, will ever be accepted by the .South, thrt die is analtorahly determined to maintain her hide- onrience, already achieved hy the valor <r her ?oue. She will never listen xgain to the syren voice of compromise. With one indignaut voice she w ill rej.-ct all overtures for the re nctuhliahmont ot the haled (hspoli^iu or ih.North oyer her territory under any Union device which can be c uliivwl. She has ii id enough of that, baving gained her freodom will malutaiu it, though at the coat of perpotuul war. On the appoint incut of the commissioners hy both parties, it is prop s <1 that active h"Ktiitttus -ha 1 cease. But it will be in vain that such a pr p- situ a may be made, un.ess is be tor the pun* se < I concluding a ; car* ? n the baris of tho nt|uali!ie 1 rcc< gniiion of > utheru mdopetidence anil the relinquishment ol every for t?-t slave >e i itory.leaving it to tba tree choice of the people of every Slave Mate to determi ne its future political relation.-'. Tic South las teen forsed into the war, ami will not c n* nt to lay down h?r arms, nor ease active hi-ell ities for one m mnnt, until peace is ottered on the basis ? guest d. Sbc is n 'W gathering all her enr-gks and resources for a final and glorious sflbrtt < expei ihe invaders from her soil, and will not pause in bor victorious caieer until the work shall be accomplished. The North n<-ed not expect a moment s rest fin in the conflict until she tiuooudtttona'ly surrer d. r her assumed right to rule ape-t ie who const '.ur themselves able nnd entitled to govern ! themselves. PRESII>KNT LINCOLN'S TROULLEH. ' rFrom the Itomocrat, Llitio lli ck, Ark., Dec. J8.] There I* a plea-ant i.erniau .dory of a in .gleien who oouid endow In .nimate tbieg* with life and make them his elavos, by the use of cei a n word* ui.d restore l!i?m In their formor shapes by re|>e,u i g certain other wor !?. One day bis apprentice ta-ur! him order ths bror ni to bring a btirkot of wator ami wrote down the Words. Soon after, in Ins muster a slisouco, he reiwated thorn, and the obedient liiooni eoin me need b.tng'Dg water. Backet ful. after bucket full we brought and poured out till the bona waa flooded, but the (tend . ..nlim ed t-> lab r in ptte of comniamia end entreaties, for the apprentice knew not the r Tin of word* necessary to restore bun to bis former .-dale. In his de*|>erattou he seized a hatchet and cut the bronrn in two, wh o, to hi* horror, each piacs bocomo a water bearing flend and tbe water came doubly as rast. It doe* md require much ability to ret an alemcnt at work, for a child tiiay Itindlo a Are that a thousanu men cannot put out. Tue great strength lies in controlling the daiu irouH power* oometirno* called into play. To roach but prunaot position. Lincoln ban called the abolition fanaticism into activity. To sustain h in the* ha haa fad it wi h bio *1 an 1 treasure. He knew tha form of word* to **t It to work, but not those to make It quiet In hi* cgony be lie* cut it in twain and now each piers Is at work and wtil drown bun in the Hood. Neither Lncoln,or 9e?arl, or Mcilellsn is king now. itle-Vv *<?*? u iKe lord pjniweaf. In the Outsat, the object of tha war waa state,! in be a rc?inr*tt?n of tha (fn.on. Now, It t# the abolition of African slavery. At tha ooSDmencenieut of the present dlflirulttas the federal rulers bitta-ly denied that they Intended to meddle with tbe Inntiiulloaa of the dtgment Met'* nr attempt to charge tbo rclaliva p- sitioa* of the white and black rones. Tha |ieople of the border slave States were assured In mnm.ige*, spseobs* and :eft?r*, and by declaration* in ttea moat solemn form, that their negro proi?ity sMeild be respected and tbnlr Ataie lews on the subject should rninsia untouched. But tbe Maud was at work all over 4 Km Vfiblh at* A bflbr hb hml #1 ?Vi? W,.. #t . ... ?_ i?* ?. _ idling it sjainet the south and given Lincoln the men gad Bua<-v bo demanded, It e-ntinued to Inbcr. Frogeont wan lie agent enil Lincoln became alarmed. The hatchet .ell. but the eervanl became two and tbe deluge Inr eaeed. Cameras and Sherman became the retuo eeataiiree of Ibis pnlicy, and, going etIII further, srofese to arm the slit so an I lead them to m irder their former pioiectore. Hallerk, In Mleeourt, and lane, m Kaneae. enunclaie tbe same terrible docti Tbe fede ral ' ongreee hee before it plana for the abnliabment of bl ok slavery In I bo District of Columbia end ihe*witbern tut< a. Now they propone to indemnify the lory owner! if a levee for thoee taken from I hem, but before long that idea will be aco'ited by th > red male. If tbia policy li adopted, what little conservatism la left at the North will be turned egnleat tbe npe who la, et .ire, the lyrant and the tool. Mt ?mri, Kintxuky, Wrntem Vt'g'nia. Afurylond, arul pvknft, Dtlawart, are U>H pi die yortk/irrtver. The traitor* in thoee Stelae who enld their country for Northern gold, and who tried to purehaa* peace and protoeiion to their properly with the honor of their country, atand aghast at the prospect befor# them. Even i'reniice,the tb' ice arouraed, and H tr ney, the double reneged# cry out againat It. The toviee IB Mleaourl weep unavailing tear- and gnash their tooth In uneleaa soger. To persist in carrying out tbe doe trho-e laid down in hta late tneaaage will ton* Lincoln al the contested ground for which he Is fighting. To ge back aad endeavor to retraoa bis itapa i would be te call down on hi* head tb* i vengeance of tb# abolition fiend* he ban called mm |tf# HI* *!, nay, bin life, woald not he held week after | hta reflmel to yield to the demand* of the ftbolitlontat* Be weald he dethroned end Fremont or asm* other monster would be installed, tb ge os in le lost all hit the t * extreme North, and to forfeit tho reflect of nation* Bel ore him la a sea of Pre and blooi. in which ha must wiiu or drown. Ho began the war by a course of ooidblooded treacbory and by euduaroriii^ to lainforou Kurt Suintur at a time wbon ha dec .trad he waa preparing to bare it tracrutcd. lio plunged the country into a civil war and called the abolii.on lknd to hoi aid. The fiend has become his muster, and now ha dares not make peaoa, even if it was within his power The North is airoady ruined, and in its madness would desolate the South, and let the once proud republic perish in tire and blood and all sink together. But neither Lincoln, or Kremout.or any other embodiment of abolitionism, la a Samson, and if they were, though they twine their arms erer so strongly aro nd tha pillars of Southern liberty, they are too tlrrnly built and tha grand edtfioe too strong tor them to pull p. down. VIRGINIA. [Spaoial correspondence uf the New Orleans Delta.] Ckstksvuxb, Va., Lee. 30, lbol. Condition if the Roads in Virginia?Hrba Opinion of Gen. McCUtliin i Dt vjn*?TV Union Army Oonstiertd an Armed Mtib?tfftcunry of the HrUU?Gen. Beauregard a Oetni God?JmJunond RuUt tkr Army, <fc. All signs tail in wet weather?so It is said. War tiinea are very much like wet wea her. The must suggestive signs of conflict between the two armies so lung eocuni|>ad ou the banks of the Potomac have utterly tailed. Winter has oouio, the season thought to be propitious for field o|>erutions has passed away; the rouda are in a shocking condition; alternations of frost, thaw, rain and sunshine have thoroughly deprived theui of auy pretensions to fulfil the uses for which they were designed; wagons and cannon attempting to traverse them would find themselves swumi od in profound morasses, ana might even Uisuppoar from view, in short the roaus are in that situation, in military language, called impracticable. Hence, if the movements of tbis war were regu lated ia accordance with those principles which are genera'ly supposed to direct military movements and adairs; U' one could inter what is to come from the portents of what is, I shall be justified in saying i hat thu cam; aign on the frontier bus come to an end; that it bus been killed by the nipping frosts of December; to at it is exploded, played out, gone up; that it cannot be resuscitated until thu vernal breezes unchain the ice bound streams, and dry up the wet aud heavy roads. Hut, as 1 have said, all signs iail ns now We have learned not to place faith In the best accredited reports, and not to hazard a prognosis from the most pronounced symptoms, if 1 were, even now, to hazard the con.ecture that the campaign is over, 1 might, within thirty six hours, be called on to report an attempt by Mcfelolflui to advance against us over tho frozen ground. Ilut 1 will State that I do not anticipate any such movement. 1 have almost come to the conclusion that tho Northern Geueralirshno has had, ail along, far other thoughts than those f risking his imaginary reputation, his o\alt> d position, and tho fate of nig army, on a battle with our forc. s in front of him. If we could estimate his conduct from tho point of view ITom which wo regard the acts of a military leader governed by no other motive than that of making war un his adversary, we would tiavo a right to say that McClotlnn should have attempted to foice our lines and to dissipate the army so long assembled In front of Washington. Hut it is now beginning lo be whispered that the Northern chieftain has othor designs ; that ho contemplates securing his own position, consolidating his own power, before attempting in earnest the appal ling task of subjugating the South. A hundred thousand arm d men, fully organized, disciplined ai>l drilled, aud riovotod to his will, could bo made far moro effective for e'.ovnting their leader to a military dictatorship, than for conquering an immense country peopled by a numerous ai d warlike race. At this time HcCleilan a array is not 01 for either one enterprise or the other. The new volunteer .nlautrj regiments are uothing better than an armed mob, and tho cavalry regiments arc a burlesque on the oqKistrian arm of the servico. last wclc n party of Kansi m's cavalry, about foity in number, attacked two companies of the enemy's horse, aud put them to immediate flight, killing several and capturing twenty -seven. Our troopers actually rode over the enemy. It was, in truth, a ludicrous ailatr. The federalists were totally unable to manage their horses, and about a d izon of th m fell otT during the pursuit, and were taken while lying on the ground. 1 am la l to say that we hive no such cant -.fctH/ j lo report In our army. The efficiency of our troops, though not as great us that of regulars, far supusses that of the Northern army. 1 he discipline of our forces is go-si? their dull aii that could bo ex; ectod from volunteer troops doing arduous duty in tho Hold. One circi which may have interfered with the action of our army?which, doubtless, has prevented the execut.on of any brilliant purposes?is the sui t of dual or triple command lo v,hich it li-a been subjected, tlen" Henuregard's nan.o has tieen, from the c iiirnencomect, so intima oly associated with this army, that no other couimai dor is identified with It in th'- popular mind. He is the idol of the army; he excites the enthusiasm of the soldiery whenever lie appears among the in; the troops 1 ave unbounded couhdenco in his ability aud his valor; yet Gen. Beauregard has no power to carry out any idea be may form; no o>t>ort unity to devoiope the plan ot a campaign: no right even to execute a single movement. generm, directt and flam, Jar 'it any plant h tie inHurncttl the campaign. Jiirhitwrnl dictatrt not only the yv-iicv "f tkr tear, but it' mrtkod, while in thu public uiiml exjiectutiuu is directed to thu Generals, and high hopes uro formed from their enterprise and skill. In sedition to ail this. Get-. John-don is in ch ef command?a soldier amply capable of conducting our array to victory, out *?? admitted skill and acptiru mt-nls would be fr.r mere useful to the country in a separata a:id independent thoatre of action. Tae truth is, that the pn of both Gen licauregard and tieti. John st"D iu tbis army, so far from being needed, is a means of paralysing the usefulness of both, and of distracting tha minds and the conddenceof the suldu-rs. KENTUCKY. REIMKOItCIMF.MS SUNT TO BOWLING GRKKN. Tha Bowling Croon correspondent ui the Nashville Jlamier reports the arrival of large reiulorcozu uts at th ' rahoi cainn, showing tha enemy ia concentrating a strong force in Kentucky.? Vast ruiuforcuuieuia are pouring in at a rata more rapid than Anything that has yet lioen witnessed. Their instructions aie to Ire ready fur any emergency, a lew days since the Korty-ftrst Tonne*#, a?a full, bravo and splendid looking regiment?reached here. Just aitor tnem came three ad iitn nat Mississippi ragiraurits. Yeslet day the enure torre fr< nt Camp Beauregard arrived. General Bowers' entire division, 7,< 00 strocg,aro coming; two of the regiments arrived here to day. They were the Twenty sec aid Mis-isatppi, f'olopel lienham, and the Twenty seventh Tonnessee. Tli? others will follow to-morrow. General HcCulloch, the world renowned I ten. is on ins way hero, with his redoubtable tro-j-s, ar.d Grig Jloydsnd his tore. ?. However, it ts stated thai evening that he had arrived at Gallatin, wh. ncc he would take up his lute of march for Scutlsviile, Ky. Cavalry, artillery and h .ivy batteries are aiso daily coiuiug in large ipuiutitlee. COMMERCIAL AFFAIRS IN* NEW 0HLE4X8. [Krotn the Now Orleans Li ascent, Iiec 14 J The ; respects l?r a good yield of sugar are Haltering. During the uoxt month many p,enters ? ill Blush griu'ling, and vdacthtng in tbe way of a grmi I total of hogabwil4 ti') Iw ipproxitnaled. There will bv u much lar ger proportion of moi*-#. s than in former year*. 1'rli c* rule low, jntl net return* to the cultivator* will cot in tl:? end exceed of icary season*. Toe usuuicr* tti Ala etna, Georgia and Carolina, the very low price? will bo ??t off iu tbc advanced costs of traiieporutk n. TUere la a d nre 10 move in coin a The picking is ati 11 rotter on an I m< < h will be lef' in the tlelde to rot. It would bo well for ttcem connect <! with th i grc it cutton trad ' to writ r their correspondents in K'lrojw that if the great lower* of Ku.uUr.d anu France intend to lake any measures about for< mg tho blockade, it would l?e well for the movement to be mailo forthwith, so the question tor identic it for u neither crop, or crop tor l*d2. may be taken into consideration. After the 1 <t of Ajril U Mill he he, hrte; 10 ux rerntnmeml Mr. hull rn-l Mr. Crapeau to nay vh U they tu'-nd to do n.s tiein as pjfiiUe, that ia, If they think tin ir manufacturers will require any more onltou alter April next. Talking nb ut cotton, brought up the high price of backing and ro[*. it ia gratifying that every planter ha. a substitute on Inn p antvtion for both. At No. 123 Com m m atrvel .at the off ce of Mt-Ulnre ft Painfare, is a bale or cotton cioe- y packeil in basket matting of oak and hickory atrli . and enciri led with h'0|w of the Mine, just as drm!y 'c?d as 'bough hogging mi l rope were the protective*. It ie sc.den. that a bale of cotton oomes to market In belter couditlou or more closely parked than tho bale which Las ceiled forth this talk. BONO LANI) OF KINO COTTON. T JO. AL'OrSTINK VIOMAIHO. (Air?tied, While and Blue.) Oh! Dixie the land of King Cotton, The home of the brave and tbe free; A nation by Fr-cdom begotton, The terror of despots to ho: Whcrcever thy banner is sti earning, Base tyranny quails at thy leel, And Liberty's siin-ligbl is beaming, In splendar of majesty ewuet. Cnonrs?Three chrore for our army so true, Three cheers for Price, Johnston and Lee, Beauregard and our lievla forever: The pride of the breve and the rrcel When Liberty sounds her war rattle, Iiemanding her right and her due, The first land who rallies to battle la Pixie, the shrine of the true , Thick es leaves of tbe forest In summer, tier brave sons will rise on each plain; And then strike, until each vandal r ener un <) aa n tue eou mi would sum. Cioin?Throe cheers for our army, Ac. May the names of the do??l that wo cherish rill memory's cup to the brim, the laurels they've woo never perish, Nor "alar of tlielr glory grow dim;" May the fltaieaof the South never sever, Hut champions of freedom e'er lie; May they floursh. Con red* rate forever, The boost of the brave aud the free. Ceonra?Three cheera for our army, Ac. THE REDF.L FI-AG. [From the Little Rock (Ark.) Newa, Dec. IF.] It apiwara to be ailtnitted that the present Hag of the confederacy has failed, in some rospecta, to answer the purpose. It is not distinct enough, and Is a half Imitation of the old Stars and Stripon. The Confederate (b-nerale in Virginia hare Invented a battle Hag which, it waa intimated, might become the ling of the confederacy. It Is a number of start In the shape of a croat, Intended to represent tho Southern constellation of that name. A writer in tho Richmond fHb pat< h ahows that the Southern cn?e la not to bo icon In our sky, and it is, therefore, inappropriate. It would do very well for e traneequatorlel nation, but not for on, a. Besides, the writer may bare added, that it resembloa the coat of arms of Switzerland, winch is a cross In the centre. The writer In Urn VOpatrk, In a fine piece of word painting, glvan us another flag, the prnmllent feature of whteh la a aun In tha centra, on a bar or band of blua, on each elda of which there M a trip# of white and tha upper left hand and lower right hand tan a era aro formed of a triangle of red. The Richmond Mkimmimw dlepoaaa of this by showing that the blue band or her Id a her sinister. Thte, in heraldry, 1"EW YORK HERALD, FR1 denotes butirdv, and s mwhirg not honestly or directly obtained. We might treat these old heraldic devices and symbols with disdain, but wears to auks a flag not only for ourselves, but to ho seen in foreign countri s where these things are noted. respected and commented upon. The Saamintr propones the old flag of France, the four de lit or lUies of the Bourbons, llut object.ous will be made to this, not the least being that it was the symbol of a race of tyrants and its want of originality. In the gelling up of a bag we must aim at originality. The old Stars and Stripes was almost a literal copy of a flag of one of the South American States. Wa want it distinct, emblematical and expressive. So far, none of those proposed seem to meet with general favor. The "iuu Hag" of the Richmond DitptUck Oils the requirements ut several respects, but there are objections even to that. THE COHIUCT OF THE IAVT. Tlit Reply of the Secretary of the Navy to the Senate# What Has Been Dane by That Department, to, to, to. Navy DBfABTMBfT, Jan IB, 1863. To thi Prbmhutt or nut Rerun:? Sik?I have the honor to acknowledge tl o receipt of tbo following resolution of tho Senate:? Resolved, That the Secretary of the Navy he dlrocted to report to the Senate tho facts in regard to the employment of (leorge 1). Morgan, of New York, to purchase vessels for the iu>e of the government, and to report the amount of compensation paid him. Thanking the Senate for the opportunity thus afforded me to lay before your honorable body, and through you before the country, further and the fullest po.sri.blo information touching a matter which, from its inception in April last, down to tho present time, has not ceased to engage my careful utttcntion, and which has, 1 perceive, elicited no inconsiderable comment in both houses of Congress, I hasten to make a full respensu to the resolution which you have dune me the honor to transmit. I deein it proper and necessary to include in my observations some reference to that portion of tho report recently submitted to the ilouso of Representatives by a committee of that honorable body, and by the ordor of the House printod, touching upon the same subject, by reason uot only of the consideration duo to a document emanating from such a source, but also became I loarn from the debate resulting in tho adoption by the sienate of tho resolution before me that it has attracted the attentiou of sovoral Senators. I may add that such reference by me to that report appears to me the more proper by reason of the conviction which i entertain that some of the facts bearing upuu tho matter now beforo mo, as set forth or alluacd to or commented upon in that document, are liablo to matorial misapprehension. In the annual report of this department to tho President, on the 4th of December last, to be then laid before Coiigross with the annual message, I made upon the whole matter now under consideration the follow l g Statement:? ') he public vessels find tho public yards, in their capa city' f construction uud repair, were, however, totally inadequate to tho demands that are new pressing on this D.'unrn of tho government, and the departm lit was compelled to resort to tiic celnmetciai murine to make good the deficiency. Vessels of ovory crass and description weic promptly tendered by selior.s and their agents, who, in in.iuy instances, became dissatisfied when their odors were nut oucopted. 'lh = new uecessiiv of the government, involving a large , expenditure and the purchase oi suitabiu vessels, im,iunod an important respousibiipy; end the task oi making suitable arrangements to insure the prompt mid systematic \ purchase, on the best and most reasonable terms for the , g"Vuiuinetil,of a laige number of vessels most suitab.o ( ior its use, was attended by peculiar dimcuities and re ceivetl mature consideration. Tho piirchasa m.ght be , made diiocily liy tlio dcpartmi tit or by boards of ullicors under its control at the principal i?rU> where the v sseis , w* o to be bought, and espec iaily at the g oat central pot >1 of supply for such a demand?tbo port of New Yoi k. hut to both thesu methods of procedure tno b. io.csi , trial discia-od serious objections. It was manifest iiotn , (he first thai the department, charged suddeni.r with tho orgHUlxalion and superintendence oi new and urtiuocs na- , val operations on a large ucale in add.tioa to its current j business,could not possibly itself dovoto to ilis ni.ruo- | rouB delaPs oi each case oi purchase the time and at.i in | ttou needful fully to protect tho interests oi the govern , nieut. II was eoualiv clear tliat boards of oilic us. actum in a ut.o o turcautilo capacity, low to tbcin, au.i for ! which they had neither becu practically trn.ii.oi: nor pro. fcasnualiy commissioned. would bo sub.o.lctto g.. at embarrassment and tiisa.; in their dealing* with sudor* of ships Hud proiessioiial ship broke:* lu a wuiuei suddenly pressed by a h-?\j and pe eaiptory demand. Yet tho department could rely, and did rely, with the i'ullost couuduucu u|ion the professional Judgment and ability of iU oivuauco < Ulcers, ue\al couairucto:a ami onginee.K, all actiug under the responsibility of their uowml nil nil, to taVMNplt ai.d det.rin ne the wh?e <i ostiou of the adaptation, in ail respects, of each ship injured, and of ite capacity to be by alteration fully adapted to perform tho partio soivico required by the government. This work, with tho corresponding authority of selection and ro.ectmn o, ah vcer-ma, was ihcrefuiuexciush ely committed to boards consisting each of au 'experienced imal construct) r and ougimor and an ordnance officer, convened and stationed for the purpose at New York, nud the other priucipal c.ti??. Tin-mere in ucantile part of the business? tho tusking of the best bargains pors.blu for the goTcrr.mcnt in euch case, with tho care ol averting nil intervention 01 thud parlies, which might embarrass ilia attainment of ihut result?was considered liy the government to be placed most property in tho habile ot a mercantile agency ol a high ana established character for integrity. exjierioncii and capacity. Obvious reasons, Including the ei BsiJcruuon that it is individual responsibility wi icii is alvays fe.t mn-i ke -nly, and thai several agents, nil acting separately f r the guvornmont at the fame pieces, would necc.- nrlly cnni[?tc with each other to ii < disadvantage in the market, indicated that this agency should ho tendered to a lug o, properly uu.iilied individual, ujsui tlie distinct understanding iliat ho should I'ev te ids whole lime. utU:.ttou and ability to tiio work: that he should in no case uiagn any charge against the government for his service, he should do b alway.-, directly and oxen aivoly with th? owners of tho vissels purchased, thus permitting no brokerage feus, or agents* ooiiun.ssions, hetwccu hiin- Uf and the own- rs: and that, llually, li s own coinmissu.n, payable always by the seller, should in 110 case exceed the regular meicantile per rentage U.tcd by tiio (lumber of t'oininerco of New York, an I establirhed by ihec s Pun of merchants in that city as the rigntfiii and kv,al rate of remuneration for sticli so vices rendered by ony person acting between the sellers and purcbas rs ol veasels. The a.lent thu3 selected was a merchant, who had been connected with one of the most successful and extensive ? niiuerciitl llrms in this country?a genii m in of grunt b siu'-ss capacity, aud cf the nnest scrupulous anu nnquestioned iu.egrtty. Relinquishing all private engagements, snd withdrawing from all business connoutioti:- of every description, libs gentleman lias devoted his wbolo time and energies, with untiring fidelity, to the service of tho department and the country. By the : y stem thus adopted the very bast vessels iu the commercial marine have been secured lor the natal service at moderate rates, and to the great advantage of (tie government. Ihe cou:so pursued in these purchases j has extomiHii iztwl a navy at less cost to the government, , it is believed, than tlist requnod for the construction of the iitnu or equally rervicoable \escla, aud a quoniiun which, st tho commencenv nt, was one of embarrassment and difficulty, has been disposed of, and in no particular has th c ?untry been belter served. Subjoined is a statement from the purchasing sgentat New York, with a rchcdulo giving tho name, tonnage, price demanded, and cost actually paid of every vessel that h.ts boen bought by him, anil also of all added to the n.ivy since the rnang" ot administration id March laat. There la abundant reason to congratulate ourselves that, ou such a demand, lu euch a crisis, we were enabled u> tasks no speedy and so large an acquisition 'n the n 'Val service, and on terms so economical to the govttniiioul. In thia portion of my annual reiwrt, including the report of Mr. (ieu. L>. Morgan, under the date of 29th November, with the schedule of all vessels purchase I by him to that date, under my direction, with the prices demanded and the prices p il l (copies o, which letter and schedule 1 now enclose in thin com mu Die at ion to tbe wennto}, i inienueu to ia> ueiorn \ oogrcr.a o tact informs (ion or the action of the department In the purchase of resets required by tbe urgent necessities of tbo public service, of the (rounds upon which that action has boon taken and of its results. I was well awars that the presentation of such a statement to Congress before it had boon asked for was not in conformity with the established usage In similar rises of the executive departments; but according to my Ideas of public duty, and tny Inclination In Its performance, the earliest proper moment was not too soon Tor a mil and spontaneous exposition to Congress ami the country, by the Secretary of the Navy, or his views and proceedings in such a matter; and if my statement, In consequence of the promptness with which I proffered It, shall be found to hays received In any quarter from Congress, under the pressure of other business, less rarelul consideration In all Its details than might partial* have been granted to It, If It had In on withhold until regularly railed for, I now reproduce It with ptriset relianoe that by the Justice and wisdom of the Senate such misfortune on my |*rt will be fully retrieved. ths policy or tub nirjurmxsT. The Senate will percelrs that the policy of the department in tbo purchase of vessels, as above sst forth, embraced four cardinal points ? rirrt?The previous thorough exsminstlon snd lest of the i vessels by experts, professionally educated snd commissioned. ami specially detailed fur thai duty. .Serosrf?The negotiation of purchases of the vessels thns 1 examined and approved at Ibe >aetSH>*slble rust to the grp i vsrnment, and with tbe least posalnle expense or rhnrge upon the sellers rtfrd?The em ploy mr at, to this and, of a marcantlle agency la the negotiation of tbe 'purchases, solely charged and peclally qualified to perform, by dealing directly with cell- 1 era, thla difficult and meet responsible duty, and regulated I In IM perf or manse and cempenMOw by thnt grant fin- I DAY, JANUARY 17. 1862 Uiorttj In any auch transaction?tl.e custom at merchants; nil. > n,r?A?T!m continuous nnJ oon?taut supervision and eouirol In the laat resort by thu department of ail prooredlags bad, includiug the price i>uid In each caae ul purchase. lie lore touching the merit* or demerit* of thl* syctem of procedure, adopted by uie upon mature redaction and alter trial, with unsatisfactory reaulu oi other method* or purchase, 1 ought to slate that I believe that all who have examined and understood the practical wo; king of tbe system admit that it is proved by It* result* to hare worked well. The government being compelled In a great emergency to invest promptly a large amount in the purchase of ships has, without doubt or denial in any quarter, received In the ships purchased under this system tbe full value of tbe money which it has paid. It lias under this system obtained its ships at a price less, by ona-quorter, than the prices (lersistently demanded tor them by their owners. Yet I hear from the owners and sellers no complaint that they, by the operation of this system of purchase, have boon oppressed or aggrieved. On the contrary, I understand them to say, almost if not entirely with one voice, that this large amount of business has been well and regularly done according to the mode of procedure wisely estab lished by themselves for thotr common advantage as sellers and Buyers 01 snips. law uos not oeen violated by tho establishment aud operation of the syslam, as it unquestii nably would bavo been if I had appointed a mercantile agent to do this work at n tlxed salary oral a per centage. however moderate, payable by the government. And finally?and I state this fact with, I trust, pro|?r sensibility?1 do not learn that either the uprightness or the honesty of my own motives, or the iutegrity, impartiality, fidelity und capacity of tbo purchasing agent most largely employed und most relied upon by mo in this delicate and difficult trust, has been,even by tboso who censure my action, in any quarter or in any manner impugned. TBS BUG ENClJtH OF TUB BBRVICB. Certainly these facts art weighty. With the greatest deference, 1 submit that before l ho wisdom and Justice of the beuate tboy may, when taken together, well have even a very controlling ellect. When a cocrotary of the Navy is forced into the open market to make sudden and prompt purchases ou a large sculo of merchant sliipa for the public service, ii with uprightness ot uv live and conduct tu himseli and hisagent, without violation of law or gi ievuiico to individuals, he, by strict coulorinity to the tlxed custom of merchants, obtains for the government, in the face of all the difficulties of the case, tho lull murkot vuluo ol the money paid, may he not fairly claim to liavo faithfully and successfully (>erforuied that public duty ? Alter mature consideration, 1 find myself unable to perceive how such motive, such action and such result combined can bo justly regarded as a ' forfeiture of public confidence," us be,ng " highly reprehensible," or as constituting a " gigantic mistake." It Is due, however, to the Senate and to myself that I should come yet closer to the subject, and set forth precisely

and plainly the ground of existing fact upon which I resolved not only to secure the aid of a trustworthy mo. cantilo agent In the purchase of vessels, but also to piorn his remuneration for his services upon the basis of the sottlod usage of merchants both in its rate and iu its form uf payment by sollors. In aseriosol CJ6es, s me of which I shall presently detail, uud which constituted, in my judgment, a sc.flier. int trial, the purcbs>e of vessels by otliccrs of the navy hud failed and fairly broken down upon my hands. In truth tirs mode of procedure never hail the toll concurrence of my judgment, for It was to those i fficeis a lino of business new ar.d wholly unprofessional, and a b irden which it was neither just nor judi clous to impose upon thorn. Then:) gallant aud patriotic men had their own conspicuous uud iudis peububle placo in the business as judges of the vf s.-cls. Just there thctr proper duly stopj ed, and that duty they faithfully per for mod. Hut bargaining 111 the market was not their lino. In then casting nlnct to see what 1 co .Id do iu the mailer 1 found myself confronted by tbo fixed usage of merchants, which these vigilant uud tliarp sighted men liad works.; out to guard tlio lights of ail p irtics aua hud made tlic practical law regulating the business and the market. I'llw usage 1 had not rnado, nor could 2 unmake It, nor thrust it out of the market, i or ah i li ,ts o ! ration nor its roles. I was forced, th< n, to ltyh iidoi it, tout id,and bo to speak, to harness it into t .-o ol th' g ivirnmont. 'Ihis was tny task?Uciicale, ditticult, emb.i. i assing enotit h, but yot to be ; erfo. me.t without e.ay. and, if possible, amid all its risks, without mistake. I rejected at once tbo easy for making my action more popular und shiolUii g myself from censure liy employing several purchasing ag i.ts iu the samo port, being sure that my responsibili ty, already .onerous and painful enough, would be multiplied, und thuir responsibility to mo would bo wcaketuid by division and the public interest gieatly prejudiced by their inevitable :< input lib u wilb eacli other in the game market No'.ldrg,J li .| In ,.,WI el,.la u ??l . I,., rlaln juaiillcatii n* to oari y Into effect, i< r tlio bcLOf.i of tlio government, tbo tixc! mo-raut.lo usa>.e upon the li. st Hfib'.e conditions, both fur tlio go, o ilment an.1 I lie ?o.iers, compatible with tlio unavoidable rouloitiiity 10 the Mag* ItMtf. But tbtt Ml Hi all. lh* .uso was too grave and exceptiiual to h ave nything to my i ii k or cuanc w hich c by possibility be avoided. [I was et-BOulial lit it I should have, I. ) i rrtble, lull nud hrotigh itersuuel kuowiouge ot my agent,ot his rapa; ty, and, above ali, of lain integrity. whit!: no tiinplii. ii.i c..uld sw li ve n hair's breadth front tlic lii.o of rectitude. More oven than this. I must, if possible, have the strongest pot serial held upon bia capacity, dnt orco an 1 honesty, and must, if pct.eil.lo, have h m to feci must keenly tluit my character end h n<-r weic indlmtoliilily l>o.,nii up with his own, and staked tore Iter upon every itep l e should take lu oath and every one of tho Iriiusctions cotil! cd to him and m tbo general result of them tli. With all il.csn constdorai ions fully bo'ore tno I choso tho man tor tr.y wot? lie h.vpimncd to be the hrotheriii law of ono who. in the puvato ioluti< t.s if life, is icnrt st t-> tue. J know that envy and ravil would seize ipon ibis accidental feci and brandish it against me. and mat oveu fair and honest criticism lor th - tuomat consider it inauspicious and perplexing, and so leg. el it. Bet was 1 therefore to lunch ft out toy de.ibe ate convictions of official duty? Was I therofo.e to well hold frt-m tli? government in its emergency oue liuglu guarantee, public er personal, which 1 could n-sib!y give of tho |?rfect Arte: ty of my agent In his whom m< st cilhcull bunities,;' Not so. Pained n I was to foresco that 1 might tor a time and intil the whole truth should be known be doubted or iriticiscd, of even unjust y atluckcd on this account, 1 rut permit myauif tu say that lu tho conscious rectitude f uiy intention* 1 found tb; strength anil the Uriun- ss to ,-ampin nil sir It merely selfish considerations under my 'est. Willi thousands of good men before me from whom o select I chose tlio best man whom I personally know to lu my work, and tti So choosing 1 did my duty, and no ncru nor loss than tny duty. And row upon the fitness d' my choice, as demolish mod in the manner in which the vork h s b ?n doi.o ur.d in its riaiiits. eminently successul in snito of all its, I take my stand and ask or judgment. It <mI1 be borne in mind,of course, that when I was jound to make purchases f the required vessels iu open market there was neither lime uor oppoi tuniiy, no adili'-rity of luvv to wait for or luvit proposals fur U>e tttlo slit; s. even if fiom the nature of the case a.cb a prore.luro had been possible. Ihoduuaud for vessels, and ,'or particular classes if vestals, for special service was c.ddcii. and often cauio when it wus not uulicipairti liy h < government or by myself,ann when,still I rg c .uld iho extent of tlia demand be foro.-uen. Tho ship* had to be sought for and bnugbtat once when thc> wo: wonted, snd ss i hey were wanted. Thi s I was wli lly cot o(I' In ail thig t ran si' lion, by the rory nature of the case, from that plan or by jnaled proposals end contracts with tho lowest hi-iter*, which, f'?r years | a; t, tho gov#' ntnoul ha* deemed (8 mnrtol to I'i protect): n, even in (ho lur he* difficult mat Lei* of I ho purchaso of supplies for all tie artioenis of tho public service by Ha oll.ciai nguitg. Tho whole tlioury toil practice of our law ha* been for joais, auil still is, that th'*e otttcial ag.-nt* of tho government shall not g. rto tho open market and purchase stu b supplies, but I hat each department of the government ihaii. ou tiio sontrary. adopt the system 01 contracts upon separn'u naled proposals from bidder*. Tho object uf llna is, i f Burw, to protect the government frrm the rislca whi< h it runs of suffering loss and .in; ositlon in tho open marnet, i'ven when iia perchasra there are in it* bent oflicial lunula. iieing debarred in tho purchase of ship* from ail tlila protection, I was forced to secure what protection I could for the government by the oni| icyment of a autiie agent acting under that comnuiciM usage which meridian is have di-vised for their own protection against ?airiftto or unduo imposition in the purchase ami atleof veaaela. I mnltu tiicso obserratioua, not only Iftjuatiticatinn of my action, but because I see it hag heeu suggested that, having employed a mercantile export to buy gliipe in ne esnary oottfoimliy wHh commercial usage, in tba open tnarUat, I migiit think it right to employ in tlie same way a niercantllo agency to make contract* for the ecnatructlon of rhl]*, tn regard to which there is no aurh cmmercial usage, and, of oourne, no necessity of conformity to It, nor possibility of boing embarrassed by it. I can aeo not the slightest analogy between ih" two case*, end I repel the idea that any thing done by me gives the shadow of foundation tn any infeionce that i could, under any circumstances, count# oarcs or tolerate lor a moment the purpose of employing any mercantile agent npen a jier rentage, or in any other form of compensation, to negotiate contracts for the construction of ships In sny esse where ths execution of sucli a duly should devolve upon tho department. My pr>eition is, that when left to my own discretion 1 adopted the very best possible way of buying rhips, and that the result of the purchasos proves It, ami I deny that thig fact furnishes any ground to infer that If left to my own discretion I should adopt the very worst possible mode of making contracts for the construction of rhips. Hie fncts in regard ta the employment of Mr. Morgan date back to thicommenccm nt of the insurrection and the interruption of communication at ttaitimore. At that time, when extraordinary pow. rs were conferred on O in mudore iiiteto, in command of the Navy Yard, at Ilrnok lyn. be wan Jlrootod to consult wt:h certain gentlemen, end among others with Mr. Mu- run, lint no direct prrcharcs were authorized to bo maue by ttlm or by any ouo but experienced naval officers. ]f I mistake not, Commodoro I'reoee availed himself of the business talent of Mr. Morgan in th* pup has# of (be steaming Ki oeb'TB, for whith he had contracted to pay $3.r>,000, on whirb c> ntrart Mr. Morgan obtained a reduction of $2,?00 fr> m the owners, lie was so>'n after requested by tne to procure e change or modi. Oration of the charter of the stoamci Quaker City, which had been first engaged by the I'nloo Defence Committee at $1,WX? I*' *'*y- I WM diseatislleil with that ai rangematit, believing it unjust to the government. Mr. Morgan succeeded In procuring s modification of tho charter so that tho government paid-thereafter but $64)0 per day, being a 'tally reduction of $400 for that steamer. He was about the same period authorized by me, in consultation with Commodore llrorse, to purebnau two whale ships, but tho agency In this ease, without the knowledge of the deportment, wss by Commodore Drees* given to another gentleman, and reanlted to the In.iury of the government In the purchase of the Roman and Badger, aa will ba mora fully exhibited hereafter. In the month of Juno Mr. Morgan, In consultatloa with fomtnodore I'aubllng, and sometimes also with Commodore Breeee, made aoveral purchases of steamers end sailing veeaels that were Mtlsfecforv. The examination i>f vessn's In some Instances not being as thorough and efficient as was daalrsd, I early In Julr dlrsct/l that the naval constructor at Brooklyn, Mr. Delano, should per sonally superintend all sush examinations. But It was 100a obvious that the constructor at Brooklyn sou id ant K" s hla time to tho oxamlnatlono and do lustice to Ik* tmiM Mi lllftllKn Nil h tfeg I Wavy Yard to wbiuh he'wu attached; and the necea stty of a rapid augmentation of the nivy pressing d earnestly on the department, 1 on the 16th of July ? ordered Naval Constructor 1'oc k to repair to New York, and give tin exclusive attention to lite ex- p animation of vessels tbat weie in the market. Willi him 5 was associated Com maud or Cell, an ordnance officer, and d Chief Kngineer Kimball, the three constituting a board to ! exumiuo and decide on the capabilities ol each and every vessel ottered, and its adaptation to naval service. 0 Mr. Morgan was employed to negotiate and make pur- ei chases after the boai d hod derided on the qualities of the * vessel. His rurcbascs weroOrst resti icted to New York, ? but subsequently lucluded the ports of Connecticut. This ? briefly is a statement of the tacts connected with the lirst f, empli y ment of Mr. Morgan, and ol the progress. develops- a ment and adoption of that system, under which almost e. ail the purchases that in a short period aided in creating ? a navy have since been made. H constituted a part of his duty also to investigate and certify the titles, " and to guard the public interest in - that particular, p and to take charge also of all the furniture and tl property transferred with the vessels be purchased. He d was also employed to disembarrass and relieve the do- " partment from some unfortunate arrangements made by !' the distinguished naval officer who was first authorized , to procure vosaeis for the navy. In a single transaction, ? origiually made with a largo shij owner by Commodore I Breese, for Ave valuable steamers, 1 felt that the govern- t ment was unfortunately involved, and Mr. Morgan was employed to relieve the department. Under many and ? great i ifflcultlcs he succeeded in saving to the govern- J mem, by his action in that transaction alone, one hundred n and twenty-four thousand dollars. It is not necessary t that I should recapitulate in this referenco each of the [ many details or similar successful operations for the , government. But I may add that not a vessel bought by !' him has turned out badly, nor has one of them, though j. severely tested, been lost. Our naval off.oors speak of l them in terms of high commendation. e Of course the more purchases that were made the 1 greater the aggregate of commissions, whether the com- ' missions were received by ono or more agents. But the ? brokerage U an incident to the transact ions, not the trans- o actions themselves. Each caso of purchase is indepeu- s dont of the other, and tlio question is. has the government v got a fair equivalent for its money in ovory instance. I am ? satisfied that such is the fact in every iuManco whore Mr. * Morgan bus been permitted to exercise hisown judgment; that all of his purchases have beeu judiciously and econo- s nncaiiy made; that his compensation in no ruse lias exceeded the rate established by tho Chamber of G.mmorco; that it has always been paid by tho seller, constituting a part of the bargain in almost every caso; that in many instances such arrangements ato inudo with thesolkr that full brokerage was not paid, and finally that not a single do.lar has ever been paid from tho Treasury to Mr. Morgan for bis services, he having always given to the government the full value In ship.; of the money paid 1.11 his purchases. While preparing, in ths midst of my current untie-, this response to to* resolution of the Senate, I h ive received from Mr. Morgan, In New York, a copy or it loiter addressed by him to the Hon. C. B. Sedgwick, chairmen of the Committee on Naval Affairs, under date o; 4th inst., in reply to a letter of inquiry upen this same subject addressed to him by that distinguished gent! n an. Upon looking ovor this letter of Mr. Morgan, written without any consultation with me upon the subject, I adopt its statements in regard to my own action in the case us outirely correct. I never entered into any arrangements e with hiru to b? my permanent purchasing agent, nor did o I inform him of my purpose to employ him or any other w person permanently in that capacity. On the contrary, I hold myself perfectly free to employ any othor person when iu my judgment the public service niluht require tne to do so. I imposed upon hint, whenever employed, the conditions which ho states. 1 paid him no salary and no commissions, and I limited him to tho rate of brokerage from sellers fixed by tho Chamber of Commerce. Thus if required to report " the amount of compensation paid to hint'' by me from tho Treasury, I must answer " not a dollar;" but if required to ro;>ort what t amour.t of compensation he has received in the form of commissions from tlio sollcrs of ships ] urcharcd by him, I answor that I fully believe it to be as stated by him in the following letter, w hich I moke n part of this my repert to the S'nato, it being as I personally know an authentic and correct statement of the facts in regard to " t m ploy men t of Goorge 1). Morgan, of New York, to tessels," and also to the best of my kuowledgo and belief as to "the amount of compensation paid to him;" and upon this latter joint and upon any otb?r point in this letter requiring, in tho judgment of tho gennto, further elucidation, 1 concur in ashing the fullest examination in tho most solemn and stringent form:? UhOBUK D. MUR.AS TO TUX CI1AJH1AX OS Tt!g OOUSS COMMl ITU New Yoke, Jan. 4, 1SC2. Ilo*. On a it*.rs B. Ssnr.wiCK, Chaikmam or tuk Committee OS TUX House ON N'A At. AtrAlKS.? Sin? Inn ply to your letter ot the 18th ultimo, requesting me lo f urtiisa you, us promptly as poseihle, an ari iiuiit of my procredln: * id the jiurehane of vessels made I y nu* for senium, anil under Instruct''" of, the Navy In partnient, I hnve new the honor io suhn . to yon the following facts:? I ret; cell idly, but most turm stly, ssk jour old, In any m von may sec lit to give It, in procuring the ,. m ,at tin rough and nenitintiong i xaimiiuth n into ??eh and , nil of tl ero tn.otuntlons, to the end that the CotmnilKe en " N.ival Anr.irs, the n <tubers of Congte.-s sr.d the country u i _ linve ? i. piete hut wlt-dgr of the whole aubji ci, A whol y nilalaki-napprrhrn-ii n s cms In have prevailed j: t>i son.i (,1-in icr.s n rtt,< id to th" manm r In which I en te red u] on the duty ol p irc-hasing v> as- la lor the government. , No eusaiseiiirul or nrranaemcnt ol any character whatever, li.u-.lnc I > my employment a* the purinaintut agent ot tlie N ivy li | artntcnt lor the purchase of tea- ela hi ever betn a run red lino by me, and of course no attth engagement or ar- r rangeme it exfata. Karly In May I r. reived dlrec tiona from the Kary Department to m barter our Viatel, w hich wna then In the em- * I oy infill of Lite government. uucer churler ot fl.lMO per b il iv. I jri mptly lecharlered In r lor SO 0 pi r day. g I (Hi nothing more lor account o: the government during p li..- nam af day. 0 1 una next ritricted, on the 4th June, to purchase two old w hating .-hi| a at a price in t exci Cdlng six in seven thonaund C h.llain each, in consultation with Commodore Breese; but a* u 1 thru lu:pp< ned t>. be ifl sent Horn 11.o city, the two slops, o the Roman and the i'.adgcr, were purchased under the urdt r* p ol Con modore Bri cec, through the ageiu y ol other parties aelected tie him, and without any participation l.y me lu the , transaction. On the liHIi June I wa* requested by the Nasy Depart nu n*. to ascertain on v. hat term -1 could < barter or purchase r two sirr.mahlpa, suitable to be employed aa deipateb hoatg ], for the biuckuuittg squadron. and to n port the aaine to I'om- a tnouore Paulding, who bad then art tved In tiilaelty for the purpose of making due in-pectlon of the ehlpa belore any . charter or purchase ai.ouid he completed. 11 1i-b'aitird the reiutal, ul a rued j rice, of two steamships, n the t'ounerthut aud ti e Rhode lalaad. They were then ea- o aitnm-d by Commodore Paulding, who cave nie hit written ( approval and rcronimendution ol their purriwisc, and i-ug- , grat a a further Ineprctti n by a navi I mitis'ru, tur. ' wneso Inip mod by Naval Coiialrueior IP-latin and Chief n Kmlm er Can In, and alter tr.elr tavorabie rcj.nrt, und the t npproval of the department, they were purchased at a price t pri-vloi.ely made known by me to the department. (J I'p.ntlie rechait r n a.le by mo n.rly In May, ea be- M fore Mated, end upon the pi.nht.a.- ol theae two aieam- . shtpe last mentioned, I cliatgid and received lrom the ' wllera for niy nervine, wilh the c- iimoi of the de|?irt- I' mi ni, 'he usual mercantile brokerage of two and a I ?lf d tier cent, being the only ountinu" u paid up u that transaction, a In my judgment, then-charter and two pun have were . fn*J ; ai ..lire, and 1 UllaTI It to he |UMrally admlited that, ' n both the: e irsn-actloii*. all toe interests of the govern- j; mi ni w eie by me rli.cicntly protected. IOn the l&'h June the N?vy Department requ?ated me to u purchase, oonferettee with Commodores Bn - and n i'auldin >, and ai ter the approval of the Naval Conairuator, . live sailing visariaof about one ih'oi-and tons em h, to l e used us coal vi.-ae.a, and also for blm killing pur- ' pme.-. In purHUun e of this order I i urehaeed four v i f the live ve*.i Is, Iho litth being obtained in Hint. h ton ihromth oilier a.-eney, in whlrh I did not |-art!i I- j| pai?. The same roioi.cs'inn i t two anil one-bit li per cent p lu paid to me on ihiee of tin so vesiH la purchased. The . fourin vessel wna Ihe Ni?lit n ,a r, a , ondcnincd slaver, will, h waa Bold at public aurtti.n. 1 f-it It would not be expe- 0 dient for me, arting tor llie goveriimelit, to bid at that public t aitctl' n, and therefore 1 proem ml ihe wi vices ol another C anlul Ic pel eon, nol known as a larte porches r of abiips, to u attend tin- sale and to bid as lor hi- own private atcmint, re- a ]:!ii|ul-hlnc to him the whole amount of thi regular I unions- . aim up u that purchase, .iiid n aKIng no claim foranypart , Krnn,mid aftrrlhisdnir, thel.Vli June, T transacted noothcr K s* b r ihe gov< rnn cut curing a film! of more then w oh- month; 11 nil lit tliln 11'11I fully supposed ilmt my sgem y j| forth': Luviinn.etit In aurh transaction* had lin.i lly But, on the ICr.h of, J received a lotto r tinm the {' department stating that Naval t'uiiatiiivlor I'ook ImU burn " oi dried tj N-w Yolk to examine euil anl ate am v easel*, <1 with a view to thi-lr pur l.??e tor tho purport a of tli guv?>tn- si mi nt, atiil reytii-siliig mi- to conault nrltu him unit give him R, tnlurn iiiinii of such suitable ve**ela an nil^ht be obtain- t( ul If, anil with li.a ?p| roval, i ud altar thorough examination and rpprovu! by the Chlrf Engineer and by an 11 pui it n < d t nini ne* officer, 'o putvhaae ti n barka t< ol from iH.tlt'i & i) tun a, atiltable to carry guns; ten propeller* I or ai'aini raof light draft; fii e ferry leal* like the Urouklvn |i ferry boats, and two fast able-wheel ati amahlpa of not over u, I.OtW'o IJyn lour enrh. The trn liarka w le bought within a 'T moolb after ilia date of the order, and In pursuance of it* terma, but It wit* exceedingly dill), nit to bnd the required " number of propeller* suitable for Ihe ser.ioe named, and tl ihMg'i my beat efT'rie were given to thla object, tbls a' poitb-n of the order could not bo completed uutll Bi-ptember. The pun-base of the five ferry boat* ? xvaa postponed by order of Ihe department, and two V. ab.e wheel steamship* were purchased niter careful , examination, and tbelr qualities for naval purpurea harlog, at ter personal Inspection by Axount Secretary Kox and " Comn.o lori'I'aiildtni, been highly uj proved, I wax ordered J ' to mal.e further purchuiesof similar vi ssela, and this order " ear roniplli'd with by me, acting In each case In puranrn-e w of inrtructluna of tbc Nary Department, or In consultation with Its chief officers, wlio came to the city for that purpose. ?' After Ihe order of Ibe 16th of July I received spncinl dl- 111 rnrttons, In several letter* irom the ib |iartment, and also *' bv telegraph. In make f urther purchase* of vessels of vaiiona 0 charncipia, within prescribed limits aa to number and grade, and sometime* with dir. rt aprclfieallona of tho particular *| vesacls desired by the department. w To all tbla buaineaa, Including that embraced In the order of the 16lli of July, 1 pave my heat n. as the sopsiale orilera rceehi d me, and upon tl. > aume terms. Thla la the general history oi my action, under tho direr, lion "f ihe department. It exclude*, you will perceive, all Idea that I was, in any ai nc, the permanent purchasing agent of the department B nmli r any flxt d arrangement wbaii vt r, anve that whenever ci I ale.old be employed to make any pnrwiase my broke:age ashould elude all other brokerage m the tiaossrtlon, And ahoold not exceed tl at tixed by tlie Chamber af Commerce, B and (hat during the time of aii h sgtmcy my undivided di exclualve attention aliuuld be gtien to the Iranaacilon. under oi the itlrccllnr- of Ihe Nutt I)#f ftrtmri.l. of the business thus ill cnldcd t<i mr. di I v>aa employed Just as any oil er agent would have he<-n m employ 'I, tioin lime 10 time, when particular n sminn arnao |r demanding such aervtcea. so torg, and ?< long, us my hi dim-hill, e ?f duly ehotild be dimmed hy the government anna- ri facmryTn all reapeota and conducive to the public internata. My l.r-t krouli-i'g" that the < mpluy meitl or a nieicantll' \V agency for the purehaea of khlpa In aid of the pruleaaianal m atpcria, who "hntild hnv# previously eiamtiied them, had tu i n th-tcrmln- d upon by the government It* per. lo niHiu-ut p iltry and ayatem of procedure, nil derived Irom the oilli lal 'report of the rtecn teiT ?f the Nuvy .. to the President, of the 4th of December la?t. I did not ad- " vis. the adoption of eitrli a ay atein. Hi.II h-aa did 1 aoliclt to Hi be seterted to earty It Into aierntlcn; but I any npi a tny pi character and re -p< natbillty, aa a merchant and a man of jo buelneaa, narln;'liad not a amall eipeileiu-e In the course of bualneaa In thla city andelaewhrre, that I regard It aaa wlae avatern, and, If faithfully and well carried nut, highly cun- , din Ive at Ihia lime to the public interests. And, In support rtl of thla opinion, I confidently invoke the moat enlightened fe and Intluenllal mercantile Judgments lobe round in this cum- 111 munlty and throughout the land. The primary purpoee of my employment was, I auppoae, to .. secure for the gnrernmint well uualillrd and evperlenccd mercantile eld in making lit bargain", and the ordinary rule end uaage In regard to the mte of my commission was. I m preatime, adopted In order, on the one hand, to protect aell- tl era from making ."aeritlies hj paying acv. ral brokera In each m tianaacllnn, who. In the absence of a< me such established Bl end t natumsry mode of doing the bualneaa, would here In * trrveaeil between thrm and the government; end, on the K other hand, to protest the poTi run enl from the high prlcee Dl for tblpa which would here been the natural reanfi of euch 01 Intervention. M Be this as It may, I know Ikat In all purchases made hy me y for account of the government 1 wae directed to permit no ol euch Intervention or Iklrd parties, and I compiled eeduloualy with that direction. < 0 That there wee eome otllity In the employment by tho go- P jHvrnm ef wteh memntUn Hd In Me pugetnepeld npftpt. U ition that no man familiar with such business will think of isputing. It has. houevrr, received confirmation In tha eiaila at some tisnsactions which it la right thai 1 should ring to your attention. Before I took part lu procuring vessels for the Mary Deat tiaoai, either by purchase or ( barter, an experienced and istlaguisbed (lie er of the highest tank in the navy had useitaken, by direction of the department, to negotiate with n eminent shipowner of this city the charter or purchase ir the use of the government of live large and valuable Leumahipa. The negotiation resulted lu charter parties with oulingenl stipulation of purchase, which seemed to me to Dutsln terms onerous to tha governmeul. and wbtah wars o regarded by the department. At Its request, In tha month f August, I interposed in that transaction, and under social dlQiculiirs, growing out of previous action in regard to ths easels. I procured an abatement of the amount to be paid ir their charter and purchaae of the aura of about one bunred and tw enty-four thousand dollars. As this was a special aso, and not strictly purchasedgby me, I charged and revived from the seller one per cent commission upon ths mailer sum payable for ths steamer undur the uaw contract rhlcb I made. In the c ase of two other steamers chartered also In Apc? tat in a similar way and by the same agency on the part of he government, I, upon being subsequently requested-by ths epartment to intervene in that transaction, suocseded In obtiuing a deduction both iu the charter and in tha prtee slipustud for the purchase, amounting in the two vessels to about wcuty-three thousand dollars. The sellers in this laltar ase?well known merchants of thia city?paid to the brokers cdng lor them lu the original charter and purchase, in whish had no part whatever, a commission of ten per oent upon lie amount of the charter. Reti'ieuce baa been made to the purchaae of the propeller ilara and striper. That vessel, when I bought her, waa new nd In all reapecta so admirably titled tor government aervioo . a to make her purchaie, In the judgment of distinguished inval officers who had examined her, almost lui|ieistive on be department in the then existing exigency. Uniortunately or me, aa a purchaser, she waa tnen under charter to IM far Department for glit.UOO per month, and for an Indeitiite time. She had been built at a time w hen shipbulldug waa paraly xcd, and whatever her coat might then isve been, I became fully satisfied that ahe could not iow be built under tbU.OU). I bought her for $56,0UU, and, onsideriug the niouey she waa then earning from the War lepartuient, I know that I made an excellent bargain for the iuvy Department. At any rote. I brought my beat efforts to far upon the transaction, and the price paid by me for the Itarsand Stripes, while thus chartered, and earning for her wners a large amount monthly, waa giO.OOO less than the inn which a distinguished naval oillcer had been a few reeks he lore compelled to pay fur ibe purchase, at this port, f two vessels in all respects to the glass and Stripes, xceut that they were two ycara older end not under charter it all. I mention these cases as conspicuous examples of the rout ts to the guvcrnmeut of the exertions which I toll it my utjr to make whenever I waa employed in purchasing veaels for Its account and use. Other examples of similar roults of iny action have not been uufrequeut, and can at any ime be brought In detail to your attention. It is, I trust, needless Tor uie to assure you that all my latements in regard to all these transactions can easily be erifled by me by thu meat direct and indisputable proof. I hall gladly avail myself of any opportunity which may be resented io me to oiler such proof. Something has been said of the necessity of an uxamlna>011 of the vessels prior to their purchase, by mon pro[Hsionuily eduuited in naval construction and aerice; and it has been Intimated that to auch experts he whole business might have been must wisely tondud. Tins, in my Judgment, ia an erroneous view of he subject. Examination by experts is, of course, Inispensable; and because it is indispensable, it ought, think, in every case, to take place without any uibarraiument or bias arising In the mind of the xaininrr, from tbc fact that he is to be ohargud afterwards rltli the additional tliitlcully and responsibility of going into he market concluding a satisfactory bargain. The truth t, that the two Hues of action are wholly different from each ther, each requiring for ila proper performance a special xpeil. nce and qualification, an I therefore the union f the two lines of businers in the same hands ion id not have he n, in my opinion, wise. Some of ho facts above referred to may he considered in proof f the correctness of this view. It derives also additional nd iuiuoriuiit contirmatirn from the tact to wbloh I draw our attrutlun, that the government has also luvoked and LCiueJ the aid of eminent mercantile and business men, In ('[.otluilng the purchase or charters of the numerous vessels nqulred for the si rvice of the War Dcjutrtmeni, upon terms 1 commission and brokerage not low or, as 1 understand, iaii those to which I have been limiteJ In my purchases for lie Nary Department, i'rom the commencement of my purchases of vessels fer lie government in May last up to the 4th of December last, lie ante 01 the Secretary's report, tbe total amount stipulated j be paid for iny purchases, is about three luilllous live htwred thousand dollars. I believe It is generally admitted, and know that it can be easily proved, that tbe government has -reived, in the ships purchased by me, the lull value of this 1 vf sum of money. Mv report of my purchases, made .1.. v.... r> .,..1 ,?>,1?|, u ?? i?;,i i,i,r??. rinn. reus will" the oflicial report of iho Secretary of the aw, shows thai the price# demanded for the vessels pur,a?\d by me umouuted to about tour millions and four midrcd thousand dollars, bring about tweaty-llve percent tore than the prices uclually p ild. Upon tho total amount aid for my purchases, belug, as I have aaid, about $3,i00,IX), ray commissions have been, la the aggregate, about ivcuty-hve thousand dollars legs than the at which, I erceivp, the y have been ofllcially estimated before Congress. The l'avt that the Secretary of the Navy and myself married lto the family, bus been, to my surprise, alluded to as r-u on why I should not have been selected to purchase easels for the governm int. The truth is, however, that I id the work wT.i. h the Secretary assigned to me quite an llicicntly, and with quite as much zeal, both for ills honor mi my ow n, in curb transaction, as I should have exhibited I I had received the employment from the hands of an enire stranger. In making this statement I ennnot but think hat 1 take a view of the subject to DSturat as to readily cur to almost any uian's unbiassed Judgment. Though I have never had a bnsfm as transaction with the ecretsry of the Navy in any shape or form whatever, or Ml uy iuiefit or purpose whatever, be is still my highly respect, d friend, anil In this fact I have found .111 additional peronal motive to perform witn my best abHily and ell'orl the ubUcduty which the government through him conhded to ae. With the highest respect, I have the honor to lie your obelent serruut, OfcO. D. MORGAN. In the report mode to tho IIouso of Representatives, :.d published by it, which lod to the aJoption of thn eaoiutiou of tho Senate, the course of the department ia figured, because it availed itself of the best mercantile bility in its purchases, and did not confine itself to thn est talent and experience of the n.tvy. 1 h ivo already luted that I brought into requisition the professional stent of tho navy in regard to the suitableness of vessels Cored, while I employed commercial skill to ranks the urchnres. The report alluded to specittos two cases rhicb it iwenis objectlettable, and which are cited to ontlrm its positions and reiivct on the oction of the doKtiliiicm. Tbo lirst of tho two cases presented br the committee * perhaps as fair an ex|*>sillon as could be cited as to ho |Millcy of the departraent on the one side and thstr ecoinniendaiion ou the other. Without copying at math the statement of the committee, or tho letters nd decisions of tho department, the reels are th :ae :? The Nary Department, In the month of May, adrcssed a letter to Commodore Breese, then In com and of the Nary Yard at Brooklyn, directing him, In injunction with Mr. George D. Morgan, to purchase wo or three whaling ship*, to bo used as coal hulka for he blockading squadron. The vessels were purchased, ot by Mr. Morgan, but by a naval oltic r. The commiteo tay ll at Couiniodore Brcose, "on the roc< mmondaion ol a highly patriotic citizen of New York, Mr. VVm. I. Aspinwall, who, as well i s the Commodore, acted nth entire good faith in tho matter, sent a New York Hiker, W. 11. Starbuck, to New Bedford, to purchase for be government two while ships for the purpose lnIcated. lie was furnished with fundi by Mr. Aspinwall to the iiioiuit of $15,010, and instructed not to exceed that sum it the prico paid lor both ships. He proceeded to New ludfoid and purchased, of Mr. Goo. W. Barker, the ship Ionian lot $4,000. Mr. Barker testillos?(sou his tesliinoy, page 545;?that he sold Mr. Marbuck tho Roman, at is own t ? table, in New Bedford, for $4.(<00 cash, ev>r haviug seen or known any other ponton it the transaction. The next morning Mr. Barker irote a bill of silo to Mr. Starb'ick, who requested Im to Insert, Inst' ad of h;s own name, that of a rend, Mr. Henry J. Thomas, who then, for the ri t turn, appeared in connection with the Roman, his wa-> done, and the name of Mr. Thomas thus appear d as that of purchaser, and his checks were given for be pny. The t>bip William iadgor? (see testimony of eorge B. Kinhnu ml, pag< U43)?was purchased Tor $2,400. i a aiinilar manner, byStarheck. in tho presence of liomos. who arcomiMir.iod hint in this Instanoe; but the ill of sale wua made oet to Thomas, at the request of Inrbuck, end Thomas gave his checks tor the'amounl. r<>iii the testimony of the cashier of the bank Oh rliich these cli cks were drawn?Mr. R. William Hviy, see page 349?it appears that Slarbuok lacd to the credit of Thomas, in the earns unk, sums corresponding to the checks thus rawn by 1 homes in payment for the vessels, on the me day the'ehoeks were drawn; indeed,Thomas him nil miurianiiy conn-am a <>oi?ro mo i miiiniiiou?(Sreuia mtimony, pages 351, 361)?that Starbnck paid all the toney for those ship*. and that ha hod himself no Insrest in them. His language war, " 1 gut all my money; am neither out nor In In tba bualneaa." He Immoilatartranalerred)ho ships Hi blank- yet both n h imut and urbtirk made affidavit, at the Nary Department, thai homae "fold toStarbuck lhe ehip Roman for $T,400, and lie ebtp William Dadger for $7,160, and that Thomas waa >io teiM Jple owner of said ships." Those remarkable fl'.darlts are as rollows:? I certify that on the 18th day of May, 1861,1 sold W. H. Urbuck, of the firm of Tnppan ? 81-irbitck, the ahls .. num. lor the sum of seven thousand four hundred r> liars, and the ship Wm. Badger for the sum of sere* loioumd one hundred and flfly dollars, and I wan the Inn iff owner of both the mid ahlps, bavins purchased them dieisintlod and fitted them up with rigging, sails, boat*, do., lib n> own money. The above tuine were paid to ma In nonformily with re IptH given at the time; gave htm an agreement to allow itn a commissi'*! of seven aad one halt per oent on the mount of the sole of the nhi| a; and to pay all the espeuaee I titling the ships here and getting Iht-m to Ni-w York. I further certify ihat the said w. H. Slaiburk acted only a broker for thessleof said ships, end had no interest haierer In tho bueiness beyond the commissions. . . . ? , HENRY F. THOMAS. Commonwealth of Massachusetts, Rriitol, so. Cirr or New Baorosb, July 23,1861, Subscribed aud sworn to before me, Wa, W. Cairo, Notary Public. Thia I* to certify that under authority from C'immodol* rcrae to purchase two or three whaling rowlt, intended fa* nl hulks, I went cvpresatv on that business, and examined vrral; rrle< led the tint ( lection aa being bored. I purchased of lieu re f. Thomas tha William miser for tha (tint of aeven thouaand ona huared and lifljr dollars. and tha Roman for tha aura seven thousand four hundred dollara: had no talercat reel or Indirect In the vessela, and hara derived no benefit, Irert or Indirect, on the transaction beyond the uaual comilaalon uf five per cent on the aale to cover my expenses and ouble, In addition to which n cnmmlaalon of two and onoiir per cent waa paid for advancing the money, aa the own demanded caah on delivery of btfla of aale. I had the above ahlpa thoroughly examined and borad by '. L. Edtvarda, well Known In Now Bedford aa a comix-tent aater carpenter. W. H. STAKBUCK. Subscribed and sworn to before me, this 2Sd day of July, ?>l. Akdbbw B. Utavaa, Notary Public I pon thoaa affidavits the goTernniout paid Htarbuok 14,400 for theae two ships,for which, while noting aa is government agent, ha paid only $0,600. He waa tld In addition live per oent oom mine Ion upon $14,608 r hie own services, end the additional commission of ro and one half per oent upon the same Bum for adtnclng tha money. The committee would ask e com pa on of theee antdavlta with the teetlinony before rerred to. found on pages 841 to 341, and especially with at of Tnomaa himself (page 364), and confidently Inks the condemnation of the House upon the whola aneactlon. This la the statement of facta aa preeented by the coinit tee. A palpable and groaa feaud waa perpetrated In lie purchase, and money wea obtained from the governicnt by falae swearing. The committee conveys the imreaelon that the dapartment and Ita mercantile agent era eulpaMa for this great wrong. Rat the department id nothing ta do with Mr. Btarbuok, the broker, r Mr. Asplnwall, who, with Commodore Praise, ilea tod him. and advancad tha money and adteed tha pnrcbaae. Had tha naval officer followed tha dare that warn given him these frauds would r>t have been perpetrated. But Commodore Prases emloyed Mr. Asptnwall's broker, and not Mr. Morgan, aad MlffiNW ww$8|nt$ (irtM Hi fvHp ( )h m

Other newspapers of the same day