To which General Grant replied,—

“City Point, Virginia,
“March 4, 1865.

“General R. E. Lee,
Commanding Confederate States Armies:

“Your two letters of the 2d instant were received yesterday. In regard to any apprehended misunderstanding in reference to the exchange of political prisoners, I think there need be none. General Ord and General Longstreet have probably misunderstood what I said to the former on the subject, or I may have failed to make myself understood possibly. A few days before the interview between Generals Longstreet and Ord I had received a despatch from General Hoffman, Commissary-General of Prisoners, stating in substance that all prisoners of war who were or had been in close confinement or irons, whether under charges or sentence, had been ordered to City Point for exchange. I forwarded the substance of that despatch to Lieutenant-Colonel Mulford, Assistant Agent of Exchange, and presumed it probable that he had communicated it to Colonel Robert Ould. A day or two after, an officer who was neither a prisoner of war nor a political prisoner, was executed, after a fair and impartial trial, and in accordance with the laws of war and the usage of civilized nations. It was in explanation of this class of cases I told General Ord to speak to General Longstreet. Reference to my letter of February 16 will show my understanding on the subject of releasing political or citizen prisoners.

“In regard to meeting you on the 6th instant, I would state that I have no authority to accede to your proposition for a conference on the subject proposed. Such authority is vested in the President of the United States alone. General Ord could only have meant that I would not refuse an interview on any subject on which I have a right to act, which, of course, would be such as are purely of a military character, and on the subject of exchanges which has been intrusted to me.

(Signed) “U. S. Grant,
Lieutenant-General.”

Under the impression that General Lee would construe the act of Congress in its broad sense and proceed to handle the Confederate armies and affairs under his own good judgment, I wrote, begging that he would call General Joseph E. Johnston back to service and command, and presently suggested and then wrote that I was credibly informed that there was plenty of produce in the country which the farmers would cheerfully deliver at Richmond or Petersburg if liberal prices in gold could be paid them; that the authority given to impress bread and meat stuffs should be applied as including gold; that right or wrong the emergency called for it, and that I would undertake to secure the gold upon his authority. I suggested that as Grant’s combinations were looking to concentration against the Army of Northern Virginia and Richmond, we should use the railways for collecting and drawing detachments from southern points, calling cavalry by the dirt roads, while the farmers were bringing their produce by private conveyance. Furthermore, I cited the fact that there were eight or ten thousand non-combatants in Richmond who could be put in my trenches as conscripts, and officered by the officers of the department on duty there, and twelve hundred in Lynchburg that could be made similarly available; and argued that using them in the trenches would enable him to draw the First Corps out for a movable force to meet flanking efforts of his adversary, and keep open his lines of communication. In that way, I continued, he could collect a hundred thousand men at Richmond, with a good supply of rations, while General Grant was drawing his two hundred thousand together to attack us; that when concentrated Grant would find himself obliged to give speedy battle, as he could not long supply his large force; that our interior lines would enable us to repel and break up the attack and relieve Richmond.

The times were heavy of events, Executive authority intended to be suspended, and it seemed possible that the use of a little gold would so manifest its power as to induce our people to let cotton and tobacco go for foreign exchange which might put us on a gold basis for a twelvemonth. This was the expedient that offered light and hope for the future, and the times called either for heroic methods or the giving over of the forms of war.

General Lee agreed that the provisions were in the country and would be delivered for gold, but did not think the gold could be found. He made his orders assuming command of the armies, but instead of exercising authority on a scale commensurate with the views of Congress and the call of the crisis, applied to the Richmond authorities for instructions under the new assignment, and wrote that he would call General Johnston to command if he could be ordered to report to him for duty.

General Johnston was so ordered, and was assigned to command of such fragments of troops as he could collect in the Carolinas. General Wade Hampton was relieved of duty as chief of cavalry in the Army of Northern Virginia and ordered to join General Johnston. After collecting such detachments as he could gather, General Johnston threw them from time to time along the flank of Sherman’s march from Georgia for Virginia, and had some spirited affairs with that army, which was gathering strength along the seaboard as it marched.