The facts are these: I gave a Mr. Farrington, an undoubted Union citizen of Memphis, permission to ship $7,000 worth of liquor to Memphis, subject to Treasury restrictions. Finding that these stores could not be got out of Saint Louis approved, Farrington asked Colonel Pride, who has never been more than a volunteer aide on my staff, to introduce him. From this has sprung the report. I would respectfully suggest that my permits be good for all articles coming into this departments, subject only to Treasury regulations and orders of those above me.

I am now holding New Madrid with detachments from troops of this command, which General Curtis has assumed control over, and coolly informs me that he cannot spare them.

I would respectfully suggest that both banks of the river be under one command.

U. S. GRANT,

Major-General.

HEADQUARTERS,
Jackson, October 26, 1862.

Major General J. B. McPHERSON, Bolivar:

Watch the secession families in Bolivar closely. They will have notice of any attack on the town. If you find them anxious to get out of town redouble your vigilance and report. Watch especially Neely, Fentress, Bills, and Miller and McNeal. Push strong reconnaissance out to front and heavy cavalry patrol on each flank.

[S. A. HURLBUT,]

Major-General.

GENERAL ORDERS,
HDQRS. DEPARTMENT OF THE MISSISSIPPI,

Numbers 2.
Jackson, Tenn., October 26, 1862.

I. The geographical divisions designated in General Orders, Numbers 83, from Headquarters District of West Tennessee, of date September 24, 1862, will hereafter be known as districts. The first division will constitute the District of Memphis, Major General W. T. Sherman commanding; the second division, the District of Jackson, commanded by Major General S. A. Hurlbut; the third division, the District of Corinth, Brigadier General C. S. Hamilton commanding; the fourth division, the District of Columbus, commanded by Brigadier General T. A. Davies.

II. The army heretofore known as the Army of the Mississippi, being now divided and in different departments, will be discontinued as a separate army.

III. Until army corps are formed there will be no distinctions known except those of department, district, divisions, posts, brigades, regiments, and companies.

By command of Major General U. S. Grant:

JNO. A. RAWLINS,

Assistant Adjutant-General.

GENERAL ORDERS,
HDQRS. ARMY OF THE MISSISSIPPI,

THIRD DIV., DIST. OF WEST TENNESSEE,

Numbers 151.
Corinth, October 26, 1862.

By order of the department commander, Brigadier-General Hamilton will assume command of the troops heretofore commanded by Major-General Rosecrans.