Innis N. Palmer to Norfolk, August 12, 1863

Lieut. Col. SouTHARD HoFFMAN, Assistant Adjutant-General .

CoLoNnEL: I have the honor toinclose the communication in reference to the property stolen from Washington by various officers. The letter from Lieutenant-Colonel McChesney throws some light on the matter. Some of the things not enumerated by Colonel McChesney were doubtless taken without authority, but the precise amount cannot beascertained. I inclose, also, copies of orders issued here since General Foster left this corps. With regard to the funds captured on the late raid, and placed in the hands of Lieutenant Cardner, I can only say that the whole matter was conducted in a very irregular manner. You inform me that this money ($2,600) had been turned over by Lieutenant Cardner to Colonel Lewis, who was to turn it over to General Potter. Why, then, did not Colonel Lewis do so? He was here for several days with General Potter, and as soon as General Potter left, he (Colonel he ee lied for and received a leave of absence to go direct to New York, taking the money with him. Besides, I think that the $2,600 was only a small

ortion of the amount of money captured. I think I can show that

ieutenant Cardner sold a considerable sum of money, either North Carolina State or Confederate money—as much as $1,100 to one person—all of which was money captured on that raid. The matter is in the hands of the provost-marshal, who will, I hope, be able to throw more light on this matter.

The order concerning horses was issued for the reason that there are hundreds upon hundreds of horses kept by citizens, traders, soldiers, &c., all of which are fed by the Government, while they are in no way in the service of the Government. No forage is brought here except such as is brought by the Government, and of course the

uartermaster’s department must feed all these animals. I wish to nd out who are the owners, or pretended owners, of the animals, and where they get their forage.

A flag of truce came in yesterday, down the river, in charge of Major Whitford. The steamer Southfield received it, and, much to my surprise, permitted the officers with it to come to me. I sent them immediately back to the Southfield, and as soon as I could, I sent a steamer alongside of her to receive the officers and men who came with Whitford, and to return with them up the river this morning.

The dispatch brought was from General Martin, and unimportant, as it was only concerning some of Whitford’s men, who are prisoners here, and who General Martin says were reported to be in irons.

Some women and children came in, too, to remain here, and one to go North. I never knew of their being here until they made their eppestanee before me. I should have felt obliged to refuse two of them admittance. One of them is a Northern woman from Massachusetts.

The canal I presume is fairly opened. About 200 men are stationed at Currituck Bridge. A small hold swank is in process of construction, laid out by Lieutenant King, and there are two guns for the work, one a field piece and one a carronade. Weare much in need of a boat to run through the canal. I heer that you have some suitable for that purpose at Norfolk or Fort Monroe. I go to-day to Hatteras to see how matters are there, and to regulate some diffi culties that have arisen between the commanding officer, the quartermaster, and the surgeon of the post. Admiral Lee has been here, but he is now inspecting his force in the sounds. He will return in afew days. I shall send with this a supply of the latest Richmond

very respectfully, your obedient servant,