MORTON, August 21, 1863.

Major General S. D. LEE,

Canton:

Your dispatch suggesting change of troops at Grenada received. What arrangement do you propose? I judge from recent events that a change had been made there of which I was not informed. The force seems to have been very small. If Mr. Frost will repair the road, promise him protection and impressment of negro labor.

J. E. JOHNSTON.

HEADQUARTERS CAVALRY BRIGADE,
In the Field, August 20, 1863. (Via Okolona, 21st.)

General RUGGLES:

General Chalmers at Bellefontaine with 700 men. I move to-night to Houston. Will unite with Chalmers tomorrow. Enemy, 2,500 strong, are still at Grenada. Have burned cars and rolling-stock.

S. W. FERGUSON,

Brigadier-General.

HEADQUARTERS CAVALRY IN MISSISSIPPI,
Canton, August 21, 1863.

Brigadier-General CHALMERS,

Commanding at Grenada:

GENERAL: I sent you an order yesterday morning to unite Ferguson's and Whitfield's commands with your own to oppose the enemy. believing him to be in force.

I learned last night that the enemy had evacuated Grenada on Wednesday morning, after burning most of the rolling-stock, and retreated toward Memphis and La Grange. You had better now occupy your original line, unless the presence of the enemy should indicate a different course.

Please inform General Ferguson of this change, he returning to his line also. General Whitfield has been notified of the change. I propose visiting Grenada in a few days, when I will endeavor to effect change in your force so as to render your lines more secure. See that telegraphic communication between this place and Grenada is open as soon as possible.

Yours, respectfully,

S. D. LEE,

Major-General, Commanding.

RICHMOND, August 21, 1863.

General B. BRAGG,

Chattanooga, Tenn.:

Would it not be well to renew the Department of East Tennessee to enable its commander to discharge its administrative duties, which he cannot otherwise do. This would not interfere with your command of the whole Department of Tennessee. The President had this in view in giving you the command of both departments. I would prefer you should suggest this change than that the President should now order it.

S. COOPER,

Adjutant and Inspector General.