James A. Seddon to Robert E. Lee, March 23, 1864

General R. E. LEE, Commanding, &e.:

GENERAL: The act of the last Congress to impose regulations upon the foreign commerce of the Confederate States provides for an embargo upon the exportation of cotton, tobacco, sugar, rice, molasses, and military and naval stores from the Confederacy, except under the regulations of the President. The regulations for export by sea and overland to Mexico have been published. There is another branch of the same trade that the public necessity alone justifies, and which cannot be specially regulated, except by communication with the general commanding the lines on the frontier. The act prohibits exportation into any portion of the Confederate States occupied by the enemy, and authorizes the forfeiture of the articles exported, and the vehicles, teams, and slaves employed in the business. It authorizes the collectors of the districts, and such other officers as may be designated by the President, to take into their custody any of the articles subject to forfeiture, when there is reason to believe they are intended for exportation, or when in vessels, carts, or wagons, or any other carriage or vehicle whatsoever, or in any manner apparently on their way toward the territories of a foreign nation, or toward the territories of the Confederate States in the occupation of the United States, and not to permit the same to be removed until bond shall be given, with satisfactory sureties, that no violation of this act and the regulations under the same is intended.

The third section of the act provides that these articles may be laden under a special permission, and upon taking a bond to secure the delivery of the articles at their destination.

It is necessary that this Department shall authorize a trade in these articles with the border counties, and even Maryland, for ordnance supplies, and to obtain subsistence from Northern Virginia, and the Department has placed the subject, so far as regards subsistence and other supplies, except ordnance stores, under the charge of Maj. B. P. Noland. He contracts for articles, takes the bond, and receives those that may be imported in return; that is, he superintends the operations. The permissions will all be issued from this Department, and none will be granted except for this object, except in a few cases, for the supply of soldiers’ families outside of our lines. A contraband trade in the prohibited articles cannot be permitted for individual advantage, and the duty of the commander is to prevent the same.

The fifth, sixth, and seventh articles of the regulations in respect to the overland trade with Mexico are applicable to persons engaged in the trade elsewhere, and contain directions as to the proper course to be pursued by the commander in all such cases.

With this statement of the act, the rules of the Department respecting it, and by reference to the regulations in respect to the overland trade with Mexico, so far as applicable to your lines, will enable you to give instructions suitable to the case. The act does not contemplate any action in respect to imports by the military authorities; but if any illicit trade in prohibited articles is discovered notice should be given. A copy of the Treasury regulations as to such articles is forwarded with this letter.*

Very respectfully, your obedient servant,