occupy that city. I now send it to you.

I avail myself of the opportunity also to inclose you copies of all
my official orders touching trade and intercourse with the people
of Georgia, as well as for the establishment of the negro
settlements.

Delegations of the people of Georgia continue to come in, and I am
satisfied that, by judicious handling and by a little respect shown
to their prejudices, we can create a schism in Jeff. Davis's
dominions. All that I have conversed with realize the truth that
slavery as an institution is defunct, and the only questions that
remain are what disposition shall be made of the negroes
themselves. I confess myself unable to offer a complete solution
for these questions, and prefer to leave it to the slower
operations of time. We have given the initiative, and can afford
to await the working of the experiment.

As to trade-matters, I also think it is to our interest to keep the
Southern people somewhat dependent on the articles of commerce to
which they have hitherto been accustomed. General Grover is now
here, and will, I think, be able to handle this matter judiciously,
and may gradually relax, and invite cotton to come in in large
quantities. But at first we should manifest no undue anxiety on
that score; for the rebels would at once make use of it as a power
against us. We should assume, a tone of perfect contempt for
cotton and every thing else in comparison with the great object of
the war--the restoration of the Union, with all its rights and
power. It the rebels burn cotton as a war measure, they simply
play into our hands by taking away the only product of value they
have to exchange in foreign ports for war-ships and munitions. By
such a course, also, they alienate the feelings of a large class of
small farmers who look to their little parcels of cotton to
exchange for food and clothing for their families. I hope the
Government will not manifest too much anxiety to obtain cotton in
large quantities, and especially that the President will not
indorse the contracts for the purchase of large quantities of
cotton. Several contracts, involving from six to ten thousand
bales, indorsed by Mr. Lincoln, have been shown me, but were not in
such a form as to amount to an order to compel me to facilitate
their execution.

As to Treasury agents, and agents to take charge of confiscated and
abandoned property, whose salaries depend on their fees, I can only
say that, as