[Inclosure.]

MONTEREY, February 1, 1863.

J. A. QUINTON, Esq. Matamoras:

MY ESTEEMED FRIEND: I inclose copy of extract of a letter I have received from Mexico. You can use of the same confidentially.

I shall probably leave here the day after to-morrow and hope to meet you in that city.

Truly, your friend,

L. OLIVIER.

[Sub-inclosure.]

The principal object of this is to give you some information that may be interesting. The American legation here have learned that large quantities of cloth, blankets, &c., are being sent to Texas across the Rio Grande. They have applied to the Government in order that all such articles may be confiscated.

JANUARY 17,

I have just learned that an order addressed to the American consul at Matamoras to prevent the exportation of goods across the Rio Grande has been issued and will be sent to-morrow.

HDQRS. DIST. OF TEXAS, NEW MEXICO, AND ARIZONA,
Houston, February 11, 1863.

His Excellency F. R. LUBBOCK,

Governor of the State of Texas:

SIR: I have the honor to acknowledge the receipt of your letter on the-instant. It give me great pleasure to be able announce to you, as I now do, that the coast of Texas is occupied and free for the occupation of our troops from Sabine to the Rio Grande; that the enemy has no longer a foothold on the soil of Texas, and that his blockading squadron are his best ships, which keep at a respectful distance from our shores; that the Rio Grande, that frontier so vital to us, is strongly held by men and guns, and that I now entertain great hopes that I shall be able to fortify it so as to render it very difficult if not impossible for the enemy to take it from us. I hope ere long to have a fleet of war vessel on that river, which will insure great security in that direction. To the heroic Captain Leon Smith, skillfully and bravely supported by Captains Lubbock and Sangster, of the Bayou City and Neptune, and to the gallant Texans, under their devoted leaders Colonels Green and Bagby and Captains Wier, Martin, Synder, and Harby, we are indebted for the glorious initiation so handsomely followed up by the Sabine expedition under the command of that most able and daring officer Major O. M. Watkins, supported gallantly by Captain Fowler and Johnson, of the steamers Belle and Uncle Ben, and by Captains-,-, of the land forces, and by the soldiers and crews, each of whom deserves to be gratefully remembered by the country and especially by the State of Texas. I communicate to you officially the names of the ranking officers as an encouragement to them and others to still greater exertions.

I am glad to be able to inform you that order and a better state of feeling are reported as existing in the disaffected regions. I have confined the declaration of martial law to the three counties of Colorado