Confederate States of America,
                                                                                                                                                                        War Department, 
                                                                                                                                                                       Ordnance Bureau,
                                                                                                                                                          Richmond, 3 March 1864

Hon. W. Porcher Miles

                 Sir,

                       In reply to your inquires on the subject, I have the honor to state that, pending the
regulations now in preparation by the President, under the recent legislation of Congress, the
Secty. War has placed the States in the same relation to private tonnage as the Confederate Govt. 
He has authorized the Agent at Wilmington to exempt from the requirements of carrying out a
 proportion of cargo for the Confederate Govmt., any steamer carrying a like proportion on same
terms, for any State.  He has gone further even, authorizing the Agt. to give credit on the Govt.
requirement, for any proportion, however small, carried out by a steamer, for a state, on same
terms as given by Confederate Govt.  The ‘Don’ & ‘Harrison’ carrying ¼ cargo for a/c of State of
N.C. and 1/12 for a/c of Confederate Govmt., the sum of the 1/3, the minimum amount required by
 the Govmt.  It is necessary that the terms should be the same, else a competition, equally ruinous
to both, would at once spring up between the individual States and the Confederate States.

            This has been the uniform rule authorized, and carried out, as far as I am advised.

            The ‘City of Petersburg’ carried out a full cargo furnished by the State of Va., half to belong
 to the vessel, on delivery of the other half to the State Agt. at the islands.  These terms, you are
aware, are identical with those offered by the C.S. Govmt.

            The ship ‘A. D. Vance’, it has always been understood, is the exclusive property of the State
of N.C.; and as such, she has been entirely exempted from the operation of the 1/3 requirement.

            It is hardly necessary for me to report that no discrimination has been made, or will be
made, in favor of any State.  The States and the Confederate Govmt., until the President’s
regulations are put in operation, have the same relation to private tonnage.  In other words,
private vessels are required to give up a proportion of their room out, on certain terms, and they
have the option of making the concession to the Confederate Govmt., or to either of the States, or
 to both jointly.

                                                                        Very Respectfully

                                                                                    Your Obt. Servt.

                                                                                                Thos. L. Bayne

                                                                                                                        Major

 

Richmond Mar. 4th/64

                              Respectfully forwarded to his Excellency Gov. Bonham for his information.  I have
diligently examined into the matter as did the Honorable A. P. Aldridge and cannot find that there
 has been any discrimination made against South Carolina in the matter of exporting cotton nor
can I imagine any motives or probable reason for any discrimination.  It was unfortunate that
when Majors Furman & Porter were in Richmond and none of us knew that the Navy Dept. had a
 joint interest and control in the matter of cotton exportation.  Secretary of War promised to do
what was in his power and supposed we only asked for our state as share in the cargoes the War
Dept. controlled it is to be regretted that he did not inform us that the Sec of the Navy was entitled
 by agreement to certain cargoes or trips (Regulated by Mr. Seifas & Mr. Peters at Wilmington). 
 But I cannot think that the Sec. of War has intentionally deceived us or deliberately broken faith
 with us or that he has shown any disposition to discrimination in favor of N.C. or Va. or against S.C.                                                                                               
                                        Very Respectfully,

                            W. Porcher Miles

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