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e as still a slave； only that the labor of the slave belonged to his owner； if faithful to the Union； or to the United States； if the master had taken up arms against the Government； or adhered to the fortunes of the rebellion。 Therefore； in Memphis； we received all fugitives； put them to work on the fortifications； supplied them with food and clothing； and reserved the question of payment of wages for future decision。 No force was allowed to be used to restore a fugitive slave to his master in any event； but if the master proved his loyalty； he was usually permitted to see his slave； and； if he could persuade him to return home； it was permitted。 Cotton； also； was a fruitful subject of controversy。 The Secretary of the Treasury； Mr。 Chase； was extremely anxious at that particular time to promote the purchase of cotton； because each bale was worth； in gold； about three hundred dollars； and answered the purpose of coin in our foreign exchanges。 He therefore encouraged the trade； so that hundreds of greedy speculators flocked down the Mississippi； and resorted to all sorts of measures to obtain cotton from the interior； often purchasing it from negroes who did not own it； but who knew where it was concealed。 This whole business was taken from the jurisdiction of the military； and committed to Treasury agents appointed by Mr。 Chase。
Other questions absorbed the attention of military commanders； and by way of illustration I here insert a few letters from my 〃letter…book；〃 which contains hundreds on similar subjects：
HEADQUARTERS FIFTH DIVISION Memphis； Tennessee； August 11； 1862
Hon。 S。 P。 CHASE； Secretary of the Treasury。
Sir： Your letter of August 2d； just received； invites my discussion of the cotton question。
I will write plainly and slowly； because I know you have no time to listen to trifles。 This is no trifle； when one nation is at war with another； all the people of the one are enemies of the other： then the rules are plain and easy of understanding。 Most unfortunately； the war in which we are now engaged has been complicated with the belief on the one hand that all on the other are not enemies。 It would have been better if； at the outset； this mistake had not been made； and it is wrong longer to be misled by it。 The Government of the United States may now safely proceed on the proper rule that all in the South are enemies of all in the North； and not only are they unfriendly； but all who can procure arms now bear them as organized regiments； or as guerrillas。 There is not a garrison in Tennessee where a man can go beyond the sight of the flag…staff without being shot or captured。 It so happened that these people had cotton； and； whenever they apprehended our large armies would move； they destroyed the cotton in the belief that； of course； we world seize it； and convert it to our use。 They did not and could not dream that we would pay money for it。 It had been condemned to destruction by their own acknowledged government； and was therefore lost to their people； and could have been； without injustice； taken by us； and sent away； either as absolute prize of war； or for future compensation。 But the commercial enterprise of the Jews soon discovered that ten cents would buy a pound of cotton behind our army； that four cents would take it to Boston； where they could receive thirty cents in gold。 The bait was too tempting； and it spread like fire； when here they discovered that salt； bacon； powder； fire…arms； percussion…caps； etc。； etc。； were worth as much as gold； and； strange to say； this traffic was not only permitted； but encouraged。 Before we in the interior could know it； hundreds； yea thousands of barrels of salt and millions of dollars had been disbursed； and I have no doubt that Bragg's army at Tupelo； and Van Dorn's at Vicksburg； received enough salt to make bacon； without which they could not have moved their armies in mass； and that from ten to twenty thousand fresh arms； and a due supply of cartridges； have also been got； I am equally satisfied。 As soon as I got to Memphis； having seen the effect in the interior； I ordered （only as to my own command） that gold； silver； and Treasury notes； were contraband of war； and should not go into the interior； where all were hostile。 It is idle to talk about Union men here： many want peace； and fear war and its results； but all prefer a Southern； independent government； and are fighting or working for it。 Every gold dollar that was spent for cotton； was sent to the seaboard； to be exchanged for bank…notes and Confederate scrip； which will buy goods here； and are taken in ordinary transactions。 I therefore required cotton to be paid for in such notes； by an obligation to pay at the end of the war； or by a deposit of the price in the hands of a trustee； viz。； the United States Quartermaster。 Under these rules cotton is being obtained about as fast as by any other process； and yet the enemy receives no 〃aid or comfort。〃 Under the 〃gold〃 rule； the country people who had concealed their cotton from the burners； and who openly scorned our greenbacks； were willing enough to take Tennessee money； which will buy their groceries； but now that the trade is to be encouraged； and gold paid out； I admit that cotton will be sent in by our open enemies； who can make better use of gold than they can of their hidden bales of cotton。
I may not appreciate the foreign aspect of the question； but my views on this may be ventured。 If England ever threatens war because we don't furnish her cotton； tell her plainly if she can't employ and feed her own people； to send them here； where they cannot only earn an honest living； but soon secure independence by moderate labor。 We are not bound to furnish her cotton。 She has more reason to fight the South for burning that cotton； than us for not shipping it。 To aid the South on this ground would be hypocrisy which the world would detect at once。 Let her make her ultimatum； and there are enough generous minds in Europe that will counteract her in the balance。 Of course her motive is to cripple a power that rivals her in commerce and manufactures； that threatenes even to usurp her history。 In twenty more years of prosperity； it will require a close calculation to determine whether England； her laws and history； claim for a home the Continent of America or the Isle of Britain。 Therefore； finding us in a death…struggle for existence； she seems to seek a quarrel to destroy both parts in detail。
Southern people know this full well； and will only accept the alliance of England in order to get arms and manufactures in exchange for their cotton。 The Southern Confederacy will accept no other mediation； because she knows full well that in Old England her slaves and slavery will receive no more encouragement than in New England。
France certainly does not need our cotton enough to disturb her equilibrium； and her mediation would be entitled to a more respect consideration than on the part of her present ally。 But I feel assured the French will not encourage rebellion and secession anywhere as a political doctrine。 Certainly all the German states must be our ardent friends； and； in case of European intervention； they could no