The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-07-29
THE SECRETS OF THE WAR.
THE REVELATIONS FOR WHICH
GRANT PAID S75, 900.

Jacob Thompson's Report to Judah p.
Bentamin-rhe Plots TO Burn North.
ern Cities and Release Confederate
PrIsoners-Attempt to Capture q War
VesseI-The Sons OF Liberty.
The sensation of the hour at the North, Just
now, Is a letter of Jacob Thompson to J. T.
BENJAMIN, secretary OF State OF the Southern
Confederacy, found among the Confederate
archives which have recently been purchased
by the United States Government from one
Pickett, for the sum of seventy-fVe thousand
dollars. The letter bears date, Toronto, C.
w.. December Sd, 1865, and the endorsement
said to be in ]. P Benjamin's handwriting,
"Recelved 18th February, 1865, J. P. B." In
his letter Thompson says he had no difficulty
In obtaining all the necessary information
iu regard to the organization known
as the "Sons of Liberty" which
organization was essentially military,
having ts commanders of divisions, brigades,
regiments, &C., and whose object was to secure
the independence of the Confederacy. In
June, 1867, he says: ''The belief was enter
tanned and freely expressed that by bold,
vigorous and concerted movement the three
great Northwestern States of Illinois, Indiana
and Ohio could be seized and held. This
peing done, the States of Kentucky aud Mis-
souri, could easily be lifted from their PROSTATE
condition and placed on their feet, and this In
sixty DAYS would end the war" The 18th Of
August was fixed upon for general uprising
throughout the North and West, but just pre-
vious, says Thompson, "a large lot OF arms
were purchased and sent to Indianapolis,
which was discovered, and some OF the lead
Ing men were charged with the design to arm
the members of the order for reasonable pur.
poses. Treachery showed itself at Louisville.
Judge Bullltt aud DR.. Kalfus were arrested
and sent to Memphis" This project, itseems,
would have been carried out had 1t not
been for Mr.. Mcdonald, Democratic candidate
for Governor of Indiana, who believed it would
mar his prospects for election, and threatened
to expose the plot If the leaders did not deslst.
Soon after, the ''Sons" became demorallzed by
the surveillance exercised by the government
and virtually dlsbanded as an organization.
Thompson next tells the story Of the attempt
made to capture the Unted States steamer
Michigan and the reasons of Its failure, and
tells how the Island Queen was sunk near
Johnson's Island. The capture of the Michi-
gan was 10 be followed by shot through the
officers quarters at Johnson's Island as Sig.
/ nal for the release of the Confederate prison.
ers. Thompson aext gave his attention 10 the
Federal currency. The remainder of his let
ter touching upon this last and other topics, Is
so interesting that we print 1t In full
BULLINa TIE GOLD MARKET.
In obedience to your suggestion, as far as 1t
was practicable, soon after my arrival here
urged the people in the North 10 convert their
paper money into gold and withdraw 1t from
the market. am satisfied this policy was
adopted and carried Into effect 10 some ex-
tent, but how extensively | am unable to
state. What effect1t had on the gold market
IL Is Impossible to estimate. but certain 1t Is
that gold continued TO appreciate until 1t went
to 29O. The high price may have tempted
many to change their policy, because after.
ward gold fell in the market TO $50. When 1t
was about $50, and expectation OF god was 30
small that there appeared to be little or no de-
mand for 1t, Mr.. John Porterfeld, formerly 8
banker of Nashville, but now resident OF
Montreal was furnished with sl00, 900, and ln-
structed 10 proceed to New York 10 carry out
financial policy Of his own conception,
which consisted In the purchase Of gold, and
exporting the same, selling 1t for sterling bills
of exchange, .and then again converting his
exchange Into gold. This process involved
certain loss, the cost Of transhlpment.
EXPORTING GOLD.
He was instructed by Mr.. Clay and myself
to 60 on with his policy until he had eXpend-
ed S25, 900, with which he supposed he would
ship directly S., 900, 900, and induce others to
shin much more; and then, If the effect upon
the gold market was not very perceptlble, he
was to deslst and return to Canada and restore
the money unexpended. BY his last report
he had caused the shipment OF more than
80 600, 600, at an expense OF less than 10000;
| but it seems that q Mr.. Lyons, who had been
former partner of Mr.. Porterfeld, was arrest
ed by General Buler on the ground that he
was exporting gold, and although Nit. Lyons
had no connection with Mr.. Porteraela IN nls
transactions, yet he thought 1t prudent to re-
lurn 10 Canada, and while he retains the un-
expended balance of the 5000 to carry out
his instructions, he has restored S75,0C0.
must confess that the first shipment had 9
marked effect on the market. ! am inclined
to the opinion this theory Will work great
damage and distrust In the Federal finances II
vigorously followed up, and If no untoWard
circumstance should Interfere with the opera
| ton.
BURNING MISSISSIPPI STEAMBOATS,.
Soon after | reached Canada Mr.. Minor
| Major visited me, and represented himself as
an accredited agent from the Confederate
States to destroy steamboats, on the Mississippi
River, and that his operations were suspended
| tor want OF means. advanced to him $500
| 10 Federal currency, and soon after several
boats we're burned In St. Louis, involving an
immense loss of property 10 The enemy. He
became suspected, as he represented to me,
OF beiug the author of this burning, and from
that time both he and his men have been
hiding, and consequently have done nothing:
Money has been advanced 10 Mr.. Churchill, OF
Cincinnati, to organize corps for the pur-
pose OF incendiarism In that city. l consider
| him true man, and although as yet he has
effected but little. am In constant expecta-
tlon of hearing OF effective work In that quar-
ter.
| NO HOPE OF RELEASING PRISONERS.
Previous to the arrival of Lieutenant Colo.
mel Martin, Lieutenant Headly brought an un-