R.D., thanks for the information. You are probably right about the inside joke between James and Lizzie, as it was most likely coal or earrings made with coal.
James was killed shortly after the correspondence. In case you have not read the book, it is letters from 4 brothers, that served in the Third Alabama, to their sister back home at Union Springs. Most of the letters was from James. Before each letter is shown in the book, the author describes a little about the dates, where the reg. was, etc., but certain things like the "confederate diamonds" he did not have a clue. Three of the four brothers were killed in Va. the fourth was wounded early in the war and was unable to "perform soldier duties" but was kept in the army for non combat jobs. Really a good book. Thanks again, and tell your wife her "confederate diamonds" must be of some value, cause she has them in a safe deposit box, lol
Tom