river, march by land, and take the transports for Vicksburg in the river above Port Hudson, and thus unite with Grant's forces. I am not sufficiently familiar with the navigation and nature of the country to judge of the practicability of this suggestion. It is desirable, however, that your movements and Grant's should be directed to the same object as far as possible.

The continued inactivity of the Army of the Potomac is exceedingly embarrassing to the Government, and we must now look mainly to the South and West to relieve the country from the gloom resulting from want of success here.

Your correspondence with the foreign consults in regard to trade, &c., has been give to the Secretary of War, and will probably be laid before the President and Cabinet. As soon as I receive the Secretary's directions I will write you on that matter.

Very respectfully, your obedient servant,

H. W. HALLECK,

General-in-Chief.

WAR DEPARTMENT,

Washington City, January 19, 1863.

Major General N. P. BANKS,

Commanding Department of the Gulf, New Orleans, La.:

GENERAL: I inclose herewith a copy of a letter of the 14th instant, this day received from the Department of State, touching the treatment of questions growing out of claims and complaints of French subjects in the department under your command.

In your transactions with the subjects of France you will please conform to the instructions of the President, as recited in the letter of the Secretary of State.

Very respectfully, your obedient servant,

EDWIN M. STANTON,

Secretary of War.

[Inclosure.]

DEPARTMENT OF STATE,

Washington, January 14, 1863.

Hon. E. M. STANTON,

Secretary of War:

SIR: I have the honor to communicate herewith an extract from a dispatch which has just been received from the United States minister at Paris in relation to irritations which have recently arisen at New Orleans out of claims and complaints of French subjects. It is contained in the following words:

He (Mr. de Lhuys) either said that he already had given or that he would give instructions to their agent there (at New Orleans) to conduct matters with prudence and moderation, avoiding occasions for unnecessary difficulty, without abandoning of course the protection of French subjects in their just rights, and if the United States Government would give like instructions to their new agent there he thought further difficulties at that point might be avoided.

I am authorized by the President to request that this information may be given to Major-General Banks, and that he may be instructed to reciprocate in his transactions with subjects of the Emperor of France the just and liberal spirit thus manifested by the French Government

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