ground along the banks of this creek is well adapted for camping, being high and rolling, with plenty of good water.

I have inclodes a sketch showing the relative positions of my troops and the routes by which they can march to the positions designated. Colonel Leggett's brigade is now encamped on the south side of the Yockna, the advance being within 3 miles of Water Valley. Lee's and Mizner's cavalry are encamped near this creek. Lee's headquarters being about 1 mile west of Water Valley, and Mizner's a short distance east of that place, I can move forward with Logan's division to-morrow to the Otuckalofa, leaving Denver's and Lauman's divisions to come up the next day, or I can move them all forward to-morrow, in either case leaving a regiment temporarily to guard the bridges across the Yockna.

Since writing this your dispatch in relation to train loaded with provisions has just been handed me. The first train load better be left at the Yockna Station and the remainder sent forward to Spring Dale or Water Valley, if the whole of my command moves forward to-morrow and the day following.

Very respectfully, your obedient servant,

JAS. B. McPHERSON,

Major-General.

JACKSON, December 18, 1862 - 2 a. m.

Major General U. S. GRANT:

The following was received from our cavalry scouts sent out yesterday:

Captain O'Hara. who went out at daylight yesterday, reports that the enemy are crossing the Tennessee at Wright's Island in considerable force. At noon yesterday 3,000 infantry, 800 cavalry, and six pieces had crossed and were still crossing. O'Hara had 70 men; fell back to where I now am, at Buck River, 5 miles southeast of Lexington.

When first seen the enemy were 10 miles from the Tennessee. Their pickets are now within 6 miles of me. I have sent out two companies of Colonel Hawkins' to reconnoiter. I will keep you as well informed as possible. Intended to push on in the morning. I believe they are going on the Bolivar and Clifton road.

I have now 450 men. Our pickets are now in slight of the enemy's.

R. G. INGERSOLL,

Colonel Eleventh Illinois Cavalry.

JER. C. SULLIVAN,

Brigadier-General.

OXFORD, December 18, 1862.

General SULLIVAN:

Get the Position of the troops that have crossed the Tennessee and collect your forces, all that can be spared from the railroad, and attack them.

You can take one regiment and the Tennessee cavalry from Bolivar and get one regiment from Davies and probably two from Dodge. Let me know your plans. Telegraph through General Davies to General Lowe at Fort Henry movements of the enemy.

U. S. GRANT,

Major-General.