"III. The recognition by the Executive of the United States of the several State Governments on their officers and Legislatures taking the oath prescribed by the Constitution of the United States; and where conflicting State governments have resulted from the war, the legitimacy of all shall be submitted to the Supreme Court of the United States.

"IV. The re-establishment of all Federal courts in the several States, with powers as defined by the Constitution and laws of Congress.

"V. The people and inhabitants of all States to be guaranteed, so far as the Executive can, their political rights and franchise, as well their rights of person and property, as defined by the Constitution of the United States and of the States respectively.

"VI. The executive authority or government of the United States not to disturb any of the people by reason of the late war, so long as they live in peace and quiet and abstain from acts of armed hostility, and obey the laws in existence at the place of their residence.

"VII. In general terms, it is announced that the war is to cease; a general amnesty, so far as the Executive of the United States can command, on condition of the disbandment of the Confederate armies, the distribution of arms, and the resumption of peaceful pursuits by officers and men hitherto composing said armies.

"Not being fully empowered by our respective principals to fulfill these terms, we individually and officially pledge ourselves to promptly obtain authority, and will endeavor to carry out the above programme."

This Sherman sent to Grant, inclosed with the following letter:

"General:—I inclose herewith a copy of an agreement made this day between General Joseph E. Johnston and myself, which, if approved by the President of the United States, will produce peace from the Potomac to the Rio Grande. Mr. Breckinridge was present at the interview, in the capacity of a major-general, and satisfied me of the ability of General Johnston to carry out to the full extent the terms of this agreement; and, if you will get the President to simply indorse the copy, and commission me to carry out the terms, I will follow them to the conclusion. You will observe that it is an absolute submission of the enemy to the lawful authorities of the United States, and disperses his armies absolutely; and the point to which I attach most importance is, that the disposition and dispersement of the armies is done in such a manner as to prevent their breaking up into guerrilla bands. On the other hand, we can retain just as much of an army as we please. I agree to the mode and manner of the surrender of the armies set forth, as it gives the States the means of suppressing guerrillas, which we could not expect them to do if we strip them of all arms.

"Both Generals Johnston and Breckinridge admitted that slavery was dead, and I could not insist on embracing it in such a paper, because it can be made with the States in detail. I know that all the men of substance South sincerely want peace, and I do not believe they will resort to war again during this century. I have no doubt but that they will, in the future, be perfectly subordinate to the laws of the United States. The moment my action in this matter is approved, I can spare five corps, and will ask for orders to leave General Schofield here with the 10th Corps, and go myself with the 14th, 15th, 17th, 20th, and 23d Corps, via Burkesville and Gordonsville to Frederick or Hagerstown, there to be paid and mustered out.

"The question of finance is now the chief one, and every soldier and officer not needed ought to go home at once. I would like to be able to begin the march North by May 1st.

"I urge, on the part of the President, speedy action, as it is important to get the Confederate armies home, as well as our own. I am, with great respect, your obedient servant,

"W. T. Sherman, Major-General Commanding."

Grant's reply to Sherman was as follows:

"General:—The basis of agreement entered into between yourself and General J. E. Johnston for the disbandment of the Southern army, and the extension of the authority of the General Government over all the territory belonging to it, sent for approval of the President, is received.

"I read it carefully myself before submitting it to the President and Secretary of War, and felt satisfied that it could not possibly be approved. My reasons for these views I will give you at another time in a more extended letter.

"Your agreement touches upon questions of such vital importance that, as I read, I addressed a note to the Secretary of War, notifying him of its receipt, and the importance of immediate action by the President, and suggested, in view of its importance, that the entire Cabinet be called together, that all might give an expression of their opinions upon the matter. The result was a disapproval by the President of the basis laid down; a disapproval of the negotiations altogether, except for the surrender of the army commanded by Johnston, and directions to me to notify you of the decision. I cannot do so better than by sending you the inclosed copy of a dispatch penned by the late President, though signed by the Secretary of War, in answer to me on sending a letter received from General Lee proposing to meet me for the purpose of submitting the question of peace to a convention of officers.

"Please notify General Johnston, immediately on receipt of this, of the termination of the truce, and resume hostilities against his army at the earliest moment you can, acting in good faith. Very respectfully, your obedient servant,

"U. S. Grant, Lieutenant-General."