Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1864-05-07

! The Cotton Contract with Kirby
Smith So % LOyaIists" md Rebels
Anording Each Other Aid and
Comfort.
The st. Louis Democrat, an Administra-
ton organ of the truly loyal" radical
stripe, publishes, in its issue of the Sd inst,
the following information, which it says
comes from highly responsible source,
and is Of such nature that it does not feel
justified in Withholding it from the public.
The CASEY spoken of is SAMUEL CASEY, of
Caseyville, Kentucky, who is brother-in-
law to Lieutenant General GRANT, and the
BUTLER mentioned is WILLIAM BUTLER, of
Springfield, Illinois, late Treasurer of that
State. The Democrat gives the statement
in the language furnished it as follows:
A contract for the surrender of the trans
Mississippi country to the United States
was made between the Government of the
United States and Kirby Smith, command
ing the rebel forces West of the Mississippi
river, Casey and Butler being the agents of
both parties in making the terms of agree
ment. Casey is from Chicago, and Butler
was formerly State Treasurer of Illinois;
both are in the confidence of the Admins
tration.
The information is derived direct from
Casey himself.
The terms of the contract were as fol-
lows:
Kirby Smith agreed to retire from the
country with his army and then disband it;
he would destroy no property, but on the
contrary, surrender all Confederate cot
ton to the United States Government.
In order to increase the amount Of cotton
to be thus given up, he was largely engaged
in its purchase from private parties, pay
ing for the same double the amount offered
by the agents of the rebel Governments and
then branding it &C. S. A." that there
might be no difficulties in the way of con-
tiscation and seizure by the United States.
In return, the United States Government
agreed to guarantee safe exit from the
country to Kirby Smith and his officers, and
pay for all cotton surrendered twenty cents
per pound In foreign exchange; with which
money Smith & Co. were to retire to Europe.
The Government also agreed to respect pri-
vate property and to prevent devastation
and plumber by the troops iD their march
into the interior.
Casey was asked whether private parties
might not engage in the business of buying
Smiths cotton, and replied that the matter
had gone too far with the Government.
Brigadier General Elicit, commanding
Marine Brigade, knew the fact of this ar
rangement, but 1t Is not certain whether
Major General Banks was aware Of 1t or
not.
When General Banks started on his expe-
dition up Red river, Casey expressed a fear
that Banks would do some act that would
interfere with the fulfillment Of the con-
tract.
1t appears that General Banks and Ad-
miral Porter had colluded in gigantic cot
ton speculation and swindle. They have
been seizing all the cotton they could lay
their hands upon, and II 1t belonged to pri-
vate parties they would brand 1t &c. s. A."
and then confiscate 1t; they were also plum
dering the country--in both acts grossly
violating the terms of the agreement be-
tween the United States Government and
Kirby Smith.
Kirby Smith seeing his hopes of retire
ment in ease and wealth thus dashed, and
the cotton he had bought with his private
means, together with his prospective riches
thus snatched from his grasp, was driven to
madness and desperation; instead, therefore,
| of retiring from the countay, he was max
ing as much resistance as lay in his power,
and was burning the cotton n, would other
wise have gladly delivered to the United
States Government.
Major General Banks may have been ig-
norant of the contract aforesaid /; but 1t ap-
pears that he had abandoned his duties as
| commander of an army and neglected the
| real points OF his campaign for the purpose
of lining his pockets with cottor-thus sac
rificing the efficiency and safety Of his ar
1 my and the success of the cause to his own
personal profit. Had he been successful,
he could have defied the anger of the Adj
ministration which his interference with
their plans will excite, and have thrown
himself upon the populace, who ever judge
of a mans actions by the degree of success
which attends them, and not by the inten-
tions with which they were entered upon
whereas his failure will cause, If no more
disastrous result, his immediate removal
from command, and blast his hopes for the
Presidency, .bsnasiN saG
THE MONTH OF MARY.-The present