of the Government in taking out and sending back absentees from infantry, together with the removal of the command to Alabama, has no doubt caused many to absent themselves, and the lax discipline and management of the officers, who are, no doubt, in the same dissatisfied condition, has served to deplete the command. If the state of affairs will permit their return, I will take the Seventh Tennessee and my old regiment and place with Neely's command, and give the command of the brigade thus formed to Rucker, and return the Eighteenth MISSISSIPPI and First MISSISSIPPI Chalmers his DIVISION with competent brigade commanders, and will, I believe, result in the restoration of nearly all the absentees.

I am, major, very respectfully, yours,

N. B. FORREST,

Major-General.

TANGIPAHOA, July 5, 1864.

Major General S. D. LEE,

Commanding Dept. of Mississippi, Alabama, and East Louisiana:

GENERAL: I arrived here a few days ago on my way to Clinton, and have stopped in order to recruit my horses. Agreeable to my promise, I write in order to communicate some items of importance for your department. The whole country WEST of Pascagoula River seems to be in a state of demoralization, judging from what I heard and saw. In every house almost the men seem to have forgotten their obligations to their country, and some having deserted the army, others having evaded the conscript officer, are quietly engaged either in trading with the enemy or in tending their crops. In one house in particular at Rankin's Ferry not less than four young men who had never been conscripted were quietly engaged in fishing, and I am informed declared their unwillingness to join the army. The jayhawkers who for a moment had disappeared are again at work. The people complained to me of their exactions and growing impudence. A young soldier on furlough, son of old Widow Rankin, on the Louisiana side of the Pearl River, has been murdered by them for having given information against them to Colonel Wingfield. No patrol is seen anywhere, the whole country between the Pascagoula River and Franklinton, La., being pretty nearly under their control. At Franklinton, La., having sent one of my men to buy some provisions, he was refused unless we could pay in the enemy's greenbacks. In point of fact many country people, being engaged in unlawful trading at the mouth of the pearl, at Madison, Pass Manchac, Baton Rouge, need this sort of notes in order to buy from their stores such articles as they are in need of for business; hence a depreciation in our Government with a party named Pollard, to supply us with clothing, medicine, &c., to be exchanged for cotton. This party has without authority appointed everywhere a host of sub-agents, who are now engaged in blockade running. The effects of this cannot be but detrimental to the interests of the Confederacy. I am informed by Mr. Hatch, Confederate depositary at this post, that several persons authorized by you to bring in goods in exchange for Government cotton have done so, and have not paid the import duty on their goods, nor the export duty on the cotton, according to law. He their goods, nor the export duty on the cotton, according to law. He suggests that the best way to remedy this is to couple with their permit an obligation to pay the tax. I have forwarded you a New Orleans