Diary of Gideon Welles: Monday, October 3, 1864

Had an interview with Seward, agreeable to the wishes of the President, concerning the order to A. J. Hamilton for bringing out cotton. I perceived that S. was prepared for me, and had expected an earlier call. He said that the scheme was one by which certain important persons in the Rebel cause were to be converted. Had himself not much faith that it would amount to anything, and yet it might. The President believed there would be results; but had been very confidential and secret in all that was done. He (S.) had drawn up the order carefully by special request of the President, but had never communicated to any one but Stanton what had been done. Some time since Stanton had got some inkling of the subject and had directly applied to him for information, and when this was done he did not feel at liberty to withhold from a colleague intelligence sought. But he at once informed the President that he had told Stanton. Nothing had yet been done, and nothing farther said, until I had brought up the subject. I remarked that the subject was of a character which seemed to deserve general consultation in the Cabinet, for three of the members besides himself were concerned in its executions; that I was especially so, it being my special duty to prevent intercourse with the Rebels and enforce the blockade. But this order conflicted with that duty, was not in good faith, I apprehended, with others of our people, or with foreign powers. I told him I had made inquiries of Fessenden, for the order expressly referred to the Treasury agents, and they would of course report to him. Seward said there was no interference with the blockade. He had prepared the order with great care and sent one copy to General Canby, and one to Admiral Farragut, and proposed to send and get it for my perusal, give me a copy if I wished. I told him I already had a copy, which seemed to surprise him. He appeared not to be aware that it was the duty of a naval officer to communicate his official acts to the Navy Department; that all the three Departments must come into possession of this confidential circular, and not unlikely it would go into the courts. He is not yet dispossessed of his early error that the government can be carried on by executive order regardless of Department or laws.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 167-8