near Santa Barbara on the 4th instant. Two companies of the Third U. S. Cavalry from Fort Craig reached the same point on the 6th instant.

The Confederate forces under Colonel Steele, variously represented at from 500 to 800 men, commenced their retreat on the 6th as soon as advised of the near approach of the United States troops. The Rio Grande is still so high that our troops were unable to cross, and consequently any attempt to pursue was impracticable. The latest accounts from the Mesilla Valley represent that the Confederate troops left in great destitution, and that more than 100 of their men were left at different points on the road from the want of transportation to move them. The American part of the population that had taken part with the rebels left the country with them.

I have not information yet as to the orders under which General Carleton is acting, but presume that his force will be available for the reoccupation of Arizona, and have given orders accordingly. The presence of these troops will render a portion of the force now in this department available for service elsewhere if they should be needed, and I propose as General Carleton's troops come into position to withdraw the First Regiment Colorado Volunteers from the southern part of the Territory and order them to report to the commander of the Department of Kansas for service on the route from Fort Leavenworth to Fort Union, on which, in my judgment, there should be at least 1,000 men.

I inclose herewith a copy of General Carleton's proclamation* and of a letter from Colonel Steele, of the Confederate Army.

Very respectfully, sir, your obedient servant,

ED. R. S. CANBY,

Brigadier-General, Commanding Department.

[Inclosure.]

FORT FILLMORE, July 5, 1862.

COMMANDING OFFICER UNITED STATES FORCES:

SIR: As I am about to leave this Territory under circumstances which have caused ill-feeling between white men and Mexicans and as I have many Americans, some with their families, in some degree at the mercy of the Mexican population, I have entered into a covenant with the principal Mexicans of Mesilla, who have bound themselves to protect the Americans remaining in the country,the consideration being the release of one Domingo Cebeno, who is my prisoner under Domingo Cebeno, who is my prisoner under circumstances which would ordinarily cost him his life. The citizens are those remaining here as having taken no part in the struggle now going on between the Confederate and United States of America. All those who have by holding office or otherwise compromised themselves with your side of the question having already withdrawn, I trust that,for the sake of humanity, you will inquire into the manner in which the agreement has been kept.

Your obedient servant,

WM. STEELE,

Colonel First Texas Mounted Volunteers,

Commanding in Arizona.

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*For the proclamation see p.561.

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