Thos. L. Bayne to Tieutenant- Colonel, March 22, 1864
Richmond, March 22, 1864.
Secretary of War:
StR: On September 15 last Mr. McRae wrote that the whole amount advanced to Major Huse and others for account of War Department out of the Erlanger loan was £544,976. Mr. McRae asked that warrants to cover this advance be at once sent to him in order that he might adjust the accounts of the loan between the War and Treasury Departments. Warrants to the extent of £311,000 were accordingly sent to him and he was advised (November 30, 1863) that no more could be done just then, as the appropriations on this side could not stand any further draft upon them without embarrassing the operations of the bureaus. Other warrants were promised him as soon as our appropriations should be made by Congress, then so soon to assemble. This, however, has not been done.
In addition to the above advance of £544,976 it was understood (see your letter of September 26 to Mr. McRae) that £262,500 were yet to accrue to the War Department out of the Erlanger loan. After consultation with the chief of the several bureaus this amount was apportioned out by you (see your letter of October, 1863, to Mr. McRae) as follows:
@Qaanternmastener Department == === eae ae eee mere are o Seen taes Rate ee £85, 000 OrdnanceyPepartmentss: 3= asses heya erent a (RR 55, 500 CommissapyeDenart mente pr. osama seer ee oe ae eh pees 40, 000 Medicalibepartimeont sae. 23. =e ee Ree atte oie See ae Papen sets 380, 000 Niter and Mining Department–._._-____- SAAS SERCO Oem ae 40, 000 HmeineersD epanhimien treme tanae ee ae ee ree eee Oe nee eee 12,
Fino bel SMA Ae ene 55 eee a ee ee er ee eee 262,
It would now seem, however, that these £262,500 were predicated upon the further negotiation of bonds by Messrs. Erlanger & Co. Said negotiation having failed, the funds are not in the hands of Mr. McRae to meet the warrants sent forward by the various bureaus under the apportionment.
As, however, a deficit of £233,000 of the advance of £544,976 was yet uncovered by warrants, the actual overdraft of the War Department on its proportion of the Erlanger loan is something less than £29,000. But it is to be considered that while the amount actually advanced for the War Department is covered by drafts, such drafts are in favor of bureaus not properly chargeable with the money expended.
It appears, further, that under authority from the QuartermasterGeneral, approved by you, Major Waller, quartermaster at Nassau, has drawn on Mr. McRae for £20,000 at sixty and ninety. Mr. McRae has no funds in hand, but has accepted the drafts, hoping that he may be placed in funds before their maturity with which to duly protect them. These drafts are held by outside parties, but the warrants in favor of bureaus (above referred to) are in the hands of officers and agents of the Government.
Since my assignment to general duty, in charge of shipment of cotton for the War Department, in August last, the shipments have been as follows:
Collie & . Ordnance Thor- rivate », Department. stores. burn’s stores, Total. stores, 2, 160 960 638 3, 758 TCO Re ee eeattets ects ote cictare nie eta eels eniesicials ole slefeineimeicica ein i Oonesicsons PARNER Pore Peel Wes ALi ceed ths “129 2,213) 2,074 4,416 PCEPIO TIE ssolanbe banaue qundasacs peconuoLreUOOonENO bends os 58 759 1, 558 2,375 Commissary I GHOR AG Udhbt ctyoc Cer de Con OC Q EU Rb AOU Bia POGnORGELCEeecde ood DOO Sea tees ois 361 651 Medica: } In phyere Hyatel WENT odo qenceré oot onune coc osaHOge agceeue so sdgnoe oseese sees T52 855 2, 007 Engineer……–.—-.–2220 2-2 e cree ee eee eee eet eee ec feeec tere selene eee ee 151 151 4S ON oe Se rie sok Ra OACU ODO UU RHE OOUED done Cote SO neta bOL 2, 637 5, 084 5,637 18,358
16 R R—SERIES IV, VOL III
The credits accruing to the various bureaus from the shipments of cotton have been more than anticipated and expended (as shown by recent letters from Messrs. Fraser, Trenholm & Co. to the chiefs of bureaus) by the agents of said bureaus. The Medical Department alone has a small credit, and this is more apparent than real, as I am informed that orders more than sufficient to absorb the whole amount were long since sent out.
Your letter of September 26, 1863, gave Mr. McRae power to transfer from one bureau to another any surplus credits for which it may not have immediate need, but I do not suppose that it is your intention to withhold payment from the creditors of one department to satisfy the claims of those of another. (This is basis of objection made to transfer by F., T. & Co.)
I have thought it my duty to inform you of the foregoing facts before preparing for your signature the instructions called for by your indorsement on a late letter of Mr. McRae, which I have the honor herewith to return.
Very respectfully, your obedient servant,
Tieutenant- Colonel.
P. S.—If the cotton now on hand belonging to the War and Navy
Departments is transferred, as recommended by me, to the Treasury
Department, the disposition of proceeds will, under the new regulations, be under the control of the Treasury Department and agent of
Treasury now abroad. If Mr. Mallory declines to transfer the cotton
of his Department, the War Department will, I suppose, be compelled
to ship as formerly.