Lieutenant-General U. S. GRANT, or Major-General HALLECK, Washington, D. C.

GENERAL: I inclose herewith a copy of an agreement made this day between General Joseph E. Johnston and myself, which, if approved by the President of the United States, will produce peace from the Potomac to the Rio Grande. Mr. Breckenridge was present at our conference, in the capacity of major-general, and satisfied me of the ability of General Johnston to carry out to their full extent the terms of this agreement; and if you will get the President to simply indorse the copy, and commission me to carry out the terms, I will follow them to the conclusion.

You will observe that it is an absolute submission of the enemy to the lawful authority of the United States, and disperses his armies absolutely; and the point to which I attach most importance is, that the dispersion and disbandment of these armies is done in such a manner as to prevent their breaking up into guerrilla bands. On the other hand, we can retain just as much of an army as we please. I agreed to the mode and manner of the surrender of arms set forth, as it gives the States the means of repressing guerrillas, which we could not expect them to do if we stripped them of all arms.

Both Generals Johnston and Breckenridge admitted that slavery was dead, and I could not insist on embracing it in such a paper, because it can be made with the States in detail. I know that all the men of substance South sincerely want peace, and I do not believe they will resort to war again during this century. I have no doubt that they will in the future be perfectly subordinate to the laws of the United States. The moment my action in this matter is approved, I can spare five corps, and will ask for orders to leave General Schofield here with the Tenth Corps, and to march myself with the Fourteenth, Fifteenth, Seventeenth, Twentieth, and Twenty-third Corps via Burkesville and Gordonsville to Frederick or Hagerstown, Maryland, there to be paid and mustered out.

The question of finance is now the chief one, and every soldier and officer not needed should be got home at work. I would like to be able to begin the march north by May 1st.

I urge, on the part of the President, speedy action, as it is important to get the Confederate armies to their homes as well as our own.

I am, with great respect, your obedient servant,

W. T. SHERMAN, Major-General commanding.

Memorandum, or Basis of agreement, made this 18th day of April, A. D. 1865, near Durham's Station, in the State of North Carolina, by and between General Joseph E. JOHNSTON, commanding the Confederate Army, and Major-General William T. SHERMAN, commanding the army of the United States in North Carolina, both present:

1. The contending armies now in the field to maintain the statu quo until notice is given by the commanding general of any one to its opponent, and reasonable time--say, forty-eight hours--allowed.

2. The Confederate armies now in existence to be disbanded and conducted to their several State capitals, there to deposit their arms and public property in the State a.r.s.enal; and each officer and man to execute and file an agreement to cease from acts of war, and to abide the action of the State and Federal authority. The number of arms and munitions of war to be reported to the Chief of Ordnance at Washington City, subject to the future action of the Congress of the United States, and, in the mean time, to be needed solely to maintain peace and order within the borders of the States respectively.

3. The recognition, by the Executive of the United States, of the several State governments, on their officers and Legislatures taking the oaths prescribed by the Const.i.tution of the United States, and, where conflicting State governments have resulted from the war, the legitimacy of all shall be submitted to the Supreme Court of the United States.

4. The reestablishment of all the Federal Courts in the several States, with powers as defined by the Const.i.tution of the United States and of the States respectively.

5. The people and inhabitants of all the States to be guaranteed, so far as the Executive can, their political rights and franchises, as well as their rights of person sad property, as defined by the Const.i.tution of the United States and of the States respectively.

6. The Executive authority of the Government of the United States not to disturb any of the people by reason of the late war, so long as they live in peace and quiet, abstain from acts of armed hostility, and obey the laws in existence at the place of their residence.

7. In general terms--the war to cease; a general amnesty, so far as the Executive of the United States can command, on condition of the disbandment of the Confederate armies, the distribution of the arms, and the resumption of peaceful pursuits by the officers and men hitherto composing said armies.

Not being fully empowered by our respective princ.i.p.als to fulfill these terms, we individually and officially pledge ourselves to promptly obtain the necessary authority, and to carry out the above programme.

W. T. SHERMAN, Major-General, Commanding Army of the United States in North Carolina.

J. E. JOHNSTON, General, Commanding Confederate States Army in North Carolina.

Major Hitchc.o.c.k got off on the morning of the 20th, and I reckoned that it would take him four or five days to go to Washington and back. During that time the repairs on all the railroads and telegraph-lines were pushed with energy, and we also got possession of the railroad and telegraph from Raleigh to Weldon, in the direction of Norfolk. Meantime the troops remained statu quo, our cavalry occupying Durham's Station and Chapel Hill. General Sloc.u.m's head of column was at Aven's Ferry on Cape Fear River, and General Howard's was strung along the railroad toward Hillsboro'; the rest of the army was in and about Raleigh.

On the 20th I reviewed the Tenth Corps, and was much pleased at the appearance of General Paines's division of black troops, the first I had ever seen as a part of an organized army; and on the 21st I reviewed the Twenty-third Corps, which had been with me to Atlanta, but had returned to Nashville had formed an essential part of the army which fought at Franklin, and with which General Thomas had defeated General Hood in Tennessee. It had then been transferred rapidly by rail to Baltimore and Washington by General Grant's orders, and thence by sea to North Carolina. Nothing of interest happened at Raleigh till the evening of April 23d, when Major Hitchc.o.c.k reported by telegraph his return to Morehead City, and that he would come up by rail during the night. He arrived at 6 a.m., April 24th, accompanied by General Grant and one or two officers of his staff, who had not telegraphed the fact of their being on the train, for prudential reasons. Of course, I was both surprised and pleased to see the general, soon learned that my terms with Johnston had been disapproved, was instructed by him to give the forty-eight hours' notice required by the terms of the truce, and afterward to proceed to attack or follow him. I immediately telegraphed to General Kilpatrick, at Durham's, to have a mounted courier ready to carry the following message, then on its way up by rail, to the rebel lines:

HEADQUARTERS MILITARY DIVISION OF THE MISSISSIPPI IN THE FIELD, RALEIGH, NORTH CAROLINA, April 24, 1865 6 A.M.

General JOHNSTON, commanding Confederate Army, Greensboro':

You will take notice that the truce or suspension of hostilities agreed to between us will cease in forty-eight hours after this is received at your lines, under the first of the articles of agreement.

W. T. SHERMAN, Major-General.

At the same time I wrote another short note to General Johnston, of the same date:

I have replies from Washington to my communications of April 18th. I am instructed to limit my operations to your immediate command, and not to attempt civil negotiations. I therefore demand the surrender of your army on the same terms as were given to General Lee at Appomattox, April 9th instant, purely and simply.

Of course, both these papers were shown to General Grant at the time, before they were sent, and he approved of them.

At the same time orders were sent to all parts of the army to be ready to resume the pursuit of the enemy on the expiration of the forty-eight hours' truce, and messages were sent to General Gillmore (at Hilton Head) to the same effect, with instructions to get a similar message through to General Wilson, at Macon, by some means.

General Grant had brought with him, from Washington, written answers from the Secretary of War, and of himself, to my communications of the 18th, which I still possess, and here give the originals. They embrace the copy of a dispatch made by Mr. Stanton to General Grant, when he was pressing Lee at Appomattox, which dispatch, if sent me at the same time (as should have been done), would have saved a world of trouble. I did not understand that General Grant had come down to supersede me in command, nor did he intimate it, nor did I receive these communications as a serious reproof, but promptly acted on them, as is already shown; and in this connection I give my answer made to General Grant, at Raleigh, before I had received any answer from General Johnston to the demand for the surrender of his own army, as well as my answer to Mr. Stanton's letter, of the same date, both written on the supposition that I might have to start suddenly in pursuit of Johnston, and have no other chance to explain.

WAR DEPARTMENT, WASHINGTON CITY, April 21, 1865.

Lieutenant-General GRANT.

GENERAL: The memorandum or basis agreed upon between General Sherman and General Johnston having been submitted to the President, they are disapproved. You will give notice of the disapproval to General Sherman, and direct him to resume hostilities at the earliest moment.

The instructions given to you by the late President, Abraham Lincoln, on the 3d of March, by my telegraph of that date, addressed to you, express substantially the views of President Andrew Johnson, and will be observed by General Sherman. A copy is herewith appended.

The President desires that you proceed immediately to the headquarters of Major-General Sherman, and direct operations against the enemy.

Yours truly,

EDWIN M. STANTON, Secretary of War.

The following telegram was received 2 p.m., City Point, March 4, 1865 (from Washington, 12 M., March 3, 1865)

[CIPHER]

OFFICE UNITED STATES MILITARY TELEGRAPH, HEADQUARTERS ARMIES OF THE UNITED STATES

Lieutenant-General GRANT:

The President directs me to say to you that he wishes you to have no conference with General Lee, unless it be for the capitulation of Lee's army or on solely minor and purely military matters.

He instructs me to say that you are not to decide, discuss, or confer upon any political question; such questions the President holds in his own hands, and will submit them to no military conferences or conventions.

Meantime you are to press to the utmost your military advantages.