Unknown to J. A. Seddon, March 18, 1864

Hon. J. A. SEDDON, Secretary of War Confederate States of America:

Sir: There can be little doubt but that the want of organized transportation and the inability of the railroads to effect the domestic commerce of the country enters largely into the problem of market price, and must to that extent affect the operation of the new currency act. The obstacles to internal commerce are:

connections, such as those of the Danville and Central, in Virginia; the connection by rail to Richmond, Petersburg from Yorkville, across to Augusta, &c.

Second. The deficiency of rolling-stock, especially of locomotives. The several roads now running in Virginia have not one-fourth, in some cases not one-eighth, of the motive power proper for their regular trade. The Central road reported only eight locomotives in working order. The ratio of engines to length of road run would give the road fifty or sixty. The Virginia and Tennessee road is short of motive power, and the South Side read in every respect inadequate to its business. The rails of all these roads are reported in bad condition, varying of course with grades and tonnage,. but all requiring repair. The reduction of train speed has its effect upon the internal intercourse of the country.

ears of other roads to run over their rail, thereby involving unnecessary transshipments, and throwing the through freights into the hands of an express company, heretofore unlimited in its exactions. These are, in my opinion, the main causes of the great difference in prices between the different portions of the Confederacy and between the metropolis and the interior.

During the last session of the Virginia Legislature it became my duty, as chairman of the Committee on Roads and Interior Navigation (I state this to authenticate the condition and defects of the Virginia roads), to examine into the subject of internal transportation, and to recommend measures for its improvement. The lower House passed a bill requiring roads to pass the freight-cars of other roads of the same gauge over their own road. Railroads were required to establish an express department. These provisions were lost in the Senate. Express companies were placed under stringent regulations. They are now restricted to double the freight allowed the railroad.

A bill was also reported making a State subscription to a joint-stock locomotive factory and rolling-mill. It was regarded favorably, but not reached. The remedies proposed are:

through freights and close connections.

Second. The organization of locomotive factories with a detail of skilled workmen, and the importation or manufacture of boiler plates, tubular boilers, chilled wheels, chilled tire, &c., the manufacture of freight-cars, the erection of rolling-mills, whenever necessary for the repair of extensive lines of roads. Iam aware this plan involves labor and responsibility, but it is submitted in the belief that it will effect much to facilitate the military operations and the internal commerce of the country. It will indirectly operate upon the currency, for if the supplies continue irregular or deficient the Government will be driven to a reissue of currency. You will please excuse this communication, dictated by an interest in the public welfare.

Respectfully, yours, These suggestious are worthy of attentive consideration.