I fully approve your course so far. Be mild but firm, and do not by any means yield your position on the currency question. This policy, if adopted in all the place we occupy in which the Confederate money has obtained circulation by forcing its immense volume within narrow limits, will finally cause the bubble to burst and help to open the eyes of the reflective people of the South to see not only the hopelessness but also the wickedness of their cause.

The insubordination of Colonel Fitch has become too marked and is too clearly intention to be longer tolerated without serious injury to the service, and it must be instantly checked and punished with even more severity than it would be necessary to show were he a private soldier instead of holding the commission and exercising the functions of the colonel of a regiment. You will if possible send an order of arrest after Colonel Fitch, but if that be not advisable or practicable you will place him in arrest immediately on his return from the expedition undertaken by him in direct violation of your orders.

I am, colonel, very respectfully, your obedient servant,

I. F. QUINBY,

Brigadier-General Volunteers, Commanding District.

[JUNE 17, 1862.-For Johnson to Halleck, see Series I, Vol. XVI, Part II, p. 36.]

CORINTH, June 18, 1862.

General W. S. ROSECRANS:

General Nelson seems to be very apprehensive of an attack by Price and Van Dorn from Fulton. Post yourself as to roads and be ready to operate on their flank if they should advance toward Iuka or Tuscumbia. General C. S. H. has been ordered to report to you.

H. W. HALLECK,

Major-General.

HEADQUARTERS ARMY OF THE MISSISSIPPI,
June 18, 1862.

Major-General HALLECK, Corinth, Miss.:

Your dispatch received and directions will be attended to.

A guide named Austin left here for Corinth, who knows that country. Please ask Colonel Thom or Major Key to have inquiries made for him there. Please also send down by C. S. H. the positions of your troops east of us. We have information that the rebel rear is covered by all his cavalry massed under Chalmers, base at Tupelo, and hovering around Baldwyn and in the Tippah Hills, west of Blackland. General Elliott knows the Fulton and Iuka road. He says there is a creek 15 miles south of Iuka which is a very strong line of defense.

W. S. ROSECRANS,

Brigadier-General, Commanding.

HEADQUARTERS THIRD DIVISION, RESERVE,
Memphis, Tenn., June 18, 1862.

Captain HOTCHKISS, Acting Assistant Adjutant-General:

SIR: On the 16th instant I dispatched my cavalry, scouting from Union Depot toward Germantown, a village 13 miles distant from that