NEW ORLEANS, LA., September 22, 1864.

Major-General HALLECK, Chief of Staff:

Farragut has been ordered to Port Royal. His health is so much impaired that the contemplated asking to be relieved; but, on being advised of contemplated operations, and that Sherman might possibly come in at some point on the Gulf, at once relinquished the idea and determined to remain. He feels himself that he is not at present physically equal to the task of organizing any new operations of magnitude, and that while he can be of service here he would break down in the new assignment. This is my own belief, although I have a strong personal wish that he should remain, I believe that I am not selfish in asking that the case may be considered under this view of it. Will you please submit it to the proper authorities?

ED. R. S. CANBY,

Major-General.

WASHINGTON, September 23, 1864-8 p. m.

Major-General SHERMAN:

Sheridan has again beaten Early. He fought him yesterday from 4 p. m. till dark, driving him from Fisher's Hill, near Strasburg, a position thought to be almost impregnable. Nothing saved Early's army from total destruction but the cover of night. They fell up the Valley in the greatest confusion. We took many prisoners, 2,000 of whom have arrived at Winchester. No details yet received. Gold fell to 209.

E. M. STANTON,

Secretary of War.

HDQRS. MILITARY DIVISION OF THE MISSISSIPPI,
In the Field, Atlanta, Ga., September 23, 1864.

General GRANT, City Point:

I do want very much a good cavalry officer to command, and have been maneuvering three months to get Mower here, but Canby has sent him up White River. My present cavalry need infantry guards and pickets, and it is hard to get them within ten miles of the front. If you think Ayres will do, I would like him. Romeyn B. Ayres is, or was, as bad a growler as Granger. I would prefer Gregg or Wilson; still, anybody with proper rank will be better than Garrard. Kilpatrick is well enough for small scouts, but I do want a man of sense and courage to manage my cavalry, and will take any one that you have tried.

W. T. SHERMAN,

Major-General, Commanding.

HDQRS. MILITARY DIVISION OF THE MISSISSIPPI,
Atlanta, Ga., September 23, 1864.

General WEBSTER, Nashville:

I will send some troops back to Chattanooga and Bridgeport. Telegraph to General Burbridge, if he has not started, to move to Nashville and be prepared to move against Forrest; also, hold McCook's DIVISION of cavalry, which must be about Nashville. Look out for Decherd and the tunnel.

W. T. SHERMAN,

Major-General, Commanding.