EDWIN M. STANTON, Secretary of War.

HEADQUARTERS ARMIES OF THE UNITED STATES WASHINGTON, D.C. April 21, 1865.

Major-General W. T. SHERMAN, commanding Military Division of the Mississippi.

GENERAL: The basis of agreement entered into between yourself and General J. E. Johnston, for the disbandment of the Southern army, and the extension of the authority of the General Government over all the territory belonging to it, sent for the approval of the President, is received.

I read it carefully myself before submitting it to the President and Secretary of War, and felt satisfied that it could not possibly be approved. My reason for these views I will give you at another time, in a more extended letter.

Your agreement touches upon questions of such vital importance that, as soon as read, I addressed a note to the Secretary of War, notifying him of their receipt, and the importance of immediate action by the President; and suggested, in view of their importance, that the entire Cabinet be called together, that all might give an expression of their opinions upon the matter. The result was a disapproval by the President of the basis laid down; a disapproval of the negotiations altogether except for the surrender of the army commanded by General Johnston, and directions to me to notify you of this decision. I cannot do no better than by sending you the inclosed copy of a dispatch (penned by the late President, though signed by the Secretary of War) in answer to me, on sending a letter received from General Lee, proposing to meet me for the purpose of submitting the question of peace to a convention of officers.

Please notify General Johnston, immediately on receipt of this, of the termination of the truce, and resume hostilities against his army at the earliest moment you can, acting in good faith.

Very respectfully your obedient servant,

U. S. GRANT, Lieutenant-General.

HEADQUARTERS MILITARY DIVISION OF THE MISSISSIPPI IN THE FIELD, RALEIGH, NORTH CAROLINA, April 25, 1865.

Lieutenant-General U. S. GRANT, present.

GENERAL: I had the honor to receive your letter of April 21st, with inclosures, yesterday, and was well pleased that you came along, as you must have observed that I held the military control so as to adapt it to any phase the case might a.s.sume.

It is but just I should record the fact that I made my terms with General Johnston under the influence of the liberal terms you extended to the army of General Lee at Appomattox Court-House on the 9th, and the seeming policy of our Government, as evinced by the call of the Virginia Legislature and Governor back to Richmond, under yours and President Lincoln's very eyes.

It now appears this last act was done without any consultation with you or any knowledge of Mr. Lincoln, but rather in opposition to a previous policy well considered.

I have not the least desire to interfere in the civil policy of our Government, but would shun it as something not to my liking; but occasions do arise when a prompt seizure of results is forced on military commanders not in immediate communication with the proper authority. It is probable that the terms signed by General Johnston and myself were not clear enough on the point, well understood between us, that our negotiations did not apply to any parties outside the officers and men of the Confederate armies, which could easily have been remedied.

No surrender of any army not actually at the mercy of an antagonist was ever made without "terms," and these always define the military status of the surrendered. Thus you stipulated that the officers and men of Lee's army should not be molested at their homes so long as they obeyed the laws at the place of their residence.

I do not wish to discuss these points involved in our recognition of the State governments in actual existence, but will merely state my conclusions, to await the solution of the future.

Such action on our part in no manner recognizes for a moment the so-called Confederate Government, or makes us liable for its debts or acts.

The laws and acts done by the several States during the period of rebellion are void, because done without the oath prescribed by our Const.i.tution of the United States, which is a "condition precedent."

We have a right to, use any sort of machinery to produce military results; and it is the commonest thing for military commanders to use the civil governments in actual existence as a means to an end. I do believe we could and can use the present State governments lawfully, const.i.tutionally, and as the very best possible means to produce the object desired, viz., entire and complete submission to the lawful authority of the United States.

As to punishment for past crimes, that is for the judiciary, and can in no manner of way be disturbed by our acts; and, so far as I can, I will use my influence that rebels shall suffer all the personal punishment prescribed by law, as also the civil liabilities arising from their past acts.

What we now want is the new form of law by which common men may regain the positions of industry, so long disturbed by the war.

I now apprehend that the rebel armies will disperse; and, instead of dealing with six or seven States, we will have to deal with numberless bands of desperadoes, headed by such men as Mosby, Forrest, Red Jackson, and others, who know not and care not for danger and its consequences.

I am, with great respect, your obedient servant,

W. T. SHERMAN, Major-General commanding.

HEADQUARTERS MILITARY DIVISION OF THE MISSISSIPPI IN THE FIELD, RALEIGH, NORTH CAROLINA, April 25, 1865.

Hon. E. M. STANTON, Secretary of War, Washington.

DEAR SIR: I have been furnished a copy of your letter of April 21st to General Grant, signifying your disapproval of the terms on which General Johnston proposed to disarm and disperse the insurgents, on condition of amnesty, etc. I admit my folly in embracing in a military convention any civil matters; but, unfortunately, such is the nature of our situation that they seem inextricably united, and I understood from you at Savannah that the financial state of the country demanded military success, and would warrant a little bending to policy.

When I had my conference with General Johnston I had the public examples before me of General Grant's terms to Lee's army, and General Weitzel's invitation to the Virginia Legislature to a.s.semble at Richmond.

I still believe the General Government of the United States has made a mistake; but that is none of my business--mine is a different task; and I had flattered myself that, by four years of patient, unremitting, and successful labor, I deserved no reminder such as is contained in the last paragraph of your letter to General Grant. You may a.s.sure the President that I heed his suggestion. I am truly, etc.,

W. T. SHERMAN, Major-General commanding.

On the same day, but later, I received an answer from General Johnston, agreeing to meet me again at Bennett's house the next day, April 26th, at noon. He did not even know that General Grant was in Raleigh.

General Grant advised me to meet him, and to accept his surrender on the same terms as his with General Lee; and on the 26th I again went up to Durham's Station by rail, and rode out to Bennett's house, where we again met, and General Johnston, without hesitation, agreed to, and we executed, the following final terms:

Terms of a Military Convention, entered into this 26th day of April, 1865, at Bennett's House, near Durham's Station., North Carolina, between General JOSEPH E. JOHNSTON, commanding the Confederate Army, and Major-General W. T. SHERMAN, commanding the United States Army in North Carolina:

1. All acts of war on the part of the troops under General Johnston's command to cease from this date.

2. All arms and public property to be deposited at Greensboro', and delivered to an ordnance-officer of the United States Army.

3. Rolls of all the officers and men to be made in duplicate; one copy to be retained by the commander of the troops, and the other to be given to an officer to be designated by General Sherman. Each officer and man to give his individual obligation in writing not to take up arms against the Government of the United States, until properly released from this obligation.

4. The side-arms of officers, and their private horses and baggage, to be retained by them.

5. This being done, all the officers and men will be permitted to return to their homes, not to be disturbed by the United States authorities, so long as they observe their obligation and the laws in force where they may reside.

W. T. SHERMAN, Major-General, Commanding United States Forces in North Carolina.

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

Approved:

U. S. GRANT, Lieutenant-General.

I returned to Raleigh the same evening, and, at my request, General Grant wrote on these terms his approval, and then I thought the matter was surely at an end. He took the original copy, on the 27th returned to Newbern, and thence went back to Washington.

I immediately made all the orders necessary to carry into effect the terms of this convention, devolving on General Schofield the details of granting the parole and making the muster-rolls of prisoners, inventories of property, etc., of General Johnston's army at and about Greensboro', North Carolina, and on General Wilson the same duties in Georgia; but, thus far, I had been compelled to communicate with the latter through rebel sources, and General Wilson was necessarily confused by the conflict of orders and information. I deemed it of the utmost importance to establish for him a more reliable base of information and supply, and accordingly resolved to go in person to Savannah for that purpose. But, before starting, I received a New York Times, of April 24th, containing the following extraordinary communications: