6. The rebels now began demanding that the prisoners on both sides be
exchanged--man for man--as far as they went, and the remainder paroled.
Our Government offered to exchange man for man, but declined--on account
of the previous bad faith of the Rebels--to release the balance on
parole. The Rebels also refused to make any concessions in regard to the
treatment of officers and men of colored regiments.

7. At this juncture General B. F. Butler was appointed to the command of
the Department of the Blackwater, which made him an ex-officio
Commissioner of Exchange. The Rebels instantly refused to treat with
him, on the ground that he was outlawed by the proclamation of Jefferson
Davis. General Butler very pertinently replied that this only placed him
nearer their level, as Jefferson Davis and all associated with him in the
Rebel Government had been outlawed by the proclamation of President
Lincoln. The Rebels scorned to notice this home thrust by the Union
General.

8. On February 12, 1864, General Butler addressed a letter to the Rebel
Commissioner Ould, in which be asked, for the sake of humanity, that the
questions interrupting the exchange be left temporarily in abeyance while
an informal exchange was put in operation. He would send five hundred
prisoners to City Point; let them be met by a similar number of Union
prisoners. This could go on from day to day until all in each other's
hands should be transferred to their respective flags.

The five hundred sent with the General's letter were received, and five
hundred Union prisoners returned for them. Another five hundred, sent
the next day, were refused, and so this reasonable and humane proposition
ended in nothing.