I am prepared to carry out General Sherman's orders, either to occupy Savannah, or, if the 5. 000 men expected from Baltimore arrive, to place them in Savannah, as a garrison, and to use General Hatch's division as a moving column on the coast, with which to make diversions, or, if opportunity offers, to attack and capture any weak point. This division will also cover the flotilla bearing supplies for General Sherman's Army, to be delivered by any of the rivers that General Sherman may derest.

Ii am already making preparations to vigorously carry out your order for the organization of the new colored regiments. I have already filled up the old colored regiments to the minimum and added two companies have started the origination of the first regiment and have several hundred men. I expect to raise at last four regiments, and resentfully ask that the Adjutant-General may send me the numbers for them.

The health of the department is good and the spirits of the troops excellent.

Very respectfully, your obedient servant,

J. G. FOSTER,

Major-General, Commanding.

Major General H. W. HALLECK,

Chief of Staff, Armies of the United States, Washington, D. C.

HEADQUARTERS DEPARTMENT OF THE SOUTH,

Hilton Head, S. C., January 25, 1865

GENERAL: I have the honor to inform you that the severe rains of the last four days have materially interfered with the movements of General Sherman's Army, which will not be fairly started for a few days in consequence of this unexpected delay. General Sherman himself has gone to the front at Pocotaligo, whence he intends to demonstrate with General Howard's army toward Charleston. As soon as The Left Wing can get through the mud as far as Sister's Ferry and across the river at that point, the real movement will commence. This will probably be four or five days from this time, I have selected Pocotaligo as the position for the intrenched camp ordered by General Grant ad General Sherman. This is a good position, covering the road leading to Beaufort and to the upper Broad River, and is a diverging point to the roads leading up into the country. With a Little work it can be made tenable for a garrison of 1. 000 men, while the adjacent ground is such as to afford facilities for placing 5. 000 additional men in position should it ever become necessary to use so many at that point. My information from the Northern District leads to the belief that the enemy may evacuate Charleston, If this supposition prove to be correct, the present arrangements will probably enable me to push in and secure much valuable property before it is destroyed. General Grover's division of the Nineteenth Corps has arrived and been placed by me in Davanach to garrison that city and its dependencies. I have given all the necessary orders to encourage the recruiting of the able-bodied negroes within this department, in accordance with General Sherman's order upon this subject. Effect has also been given to General Sherman's order in regard to the settlements of negroes which have