Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1864-05-23
AN ExTRAoaDINauY STATEMENT.
THE UNITED STATES GOVERNMENT CONTRACTS WITH
KIRBY SMITH FOR THE SURRENDER OF THE
TRANS MISSISSIPPI coUNTRY-PRoCEEDINGs OF
COTTON PLUSDERERs BREAKING UP THE AR
RANGEMEsTs.

From the Missouri Democrat administration paper)
Information of a peculiar and grave character,
intimately involving the welfare of the country,
comes to US from a highly responsible source,
and is of such a nature that we should not be
justified in Withholding it from the public. Per-
sonally knowing nothing of the facts alleged, we
give the statement in the language in which il is
made to us. 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, commanding the rebel forces
west of the Mississippi river, Casey and Butler
being the agents of both parties 10 making the
terms of agreement. Casey is from Chicago and
Butler was formerly State Treasurer of Illinois;
both are in the confidence of the Administra-
ton:
1.-The information is derived directly from Ca
sey himself.
1.-The terms OF the contract were as follows:
KIRBY Smith agreed to retire from the coun
try with his army aud then disband it; he would
destroy no property, but on the contrary. sur
render all Confederate cotton to the United States
Government.
I'm order TO increase the amount TO be thus
given up, he WAS largely engaged in its purchase
from private parties. paying for the same double
the amount offered by the agents of the rebel
Government, and then branding il &C. S. A"
that there might be no difficulty in the way of
conhscation and seizure toy the United States.
I'm return the United States Government
agreed to guarantee a sale exit from the country
to Kirby Smith aud his officers, aud pay for all
cotton surrendered twenty cents per pound in for
eign exchange; with which money Smith & Co.
were to retire to Europe The Government also
agreed to respect private property and TO prevent
devastation aud plumber by the troops in 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 tar with the Government.
"Brigadier General EileJ, commanding the
Marine Brigade. knew he TACT OF this arrange
ment, but it is notcertain whether Major General
Banks was aware OF it or not.
lit appears that General Banks aud Admiral
Porter had colluded in n gigantic cotton specu-
laLion and swindle. They have been Selling all
the cotton they could lay their hands upon, aud
if it belonged To private parties they would brand
it &C. ). A aud then conhscate il; they were
also pluudering the c0untry-in both acts grossly
violating the terms OF the agreement between
the United States Government and Kirby
Smith
Kirby Smith, seeing his hopes of a retire.
ment in ease and wealth thus dashed, and the
cotton be had bought with his private means,
together with his prospective riches. thus snatched
from his grasp. was driven to madness and des
p%eraton; instead, therefore. OF retiring from the
country. he was making as much resistance as
lay IN his power. aud was burning the cotton he
would otherwise have gladly delivered to the
United States Government.
major General B inks may have been ignorant
OF the contract aforesaid; but it appears that he
had abandoned his duties as commander of an
army, and neglected the real points of his cam
paign for the pun pose OF lining his pockets with
cottOn-thus sacrificing the efficiency and safety
OF his army aud the success of the cause to his
own personal profit. Had he been successful. he
could have deted the anger Of the Administra-
ton. which his interference With their plans will
excite. and have thrown himself upon the popu
lace. who ever Judge OF n mans actions by the
degree of success which attends them, and not
by the intentions 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 Presi-
dency."