HEADQUARTERS LEE'S CAVALRY DEPARTMENT,
Canton, Miss., April 5, 1864.

Lieutenant Colonel THOMAS M. JACK,

Assistant Adjutant-General:

COLONEL: I have the honor to report that in obedience to the orders of the lieutenant-general commanding Ferguson's brigade left yesterday for Macon, and that Jackson's division is now on the march for Grenada, to which place I will also go to-morrow by rail. I am inclined to think and sincerely hope that this move on my part will be a permanent one, and without knowing the exact object of it trust that matters may be so arranged that Ferguson's brigade may soon be united to the remainder of the force under my immediate command, and that I may be ordered to some other field of operations. With this view I have placed General Adams in command of this line, including General Taylor's district, with orders to report any important movement directly to you as well as to me. One brigade will be left here with him, and it is my settled conviction that this force will be amply sufficient for all purposes on this line, the principal and, in fact, very nearly the only duties being those of picketing and breaking up the illegal trade between citizens and the enemy. I hope that the lieutenant-general commanding agrees with me in this view of the case, and that dispositions may be made accordingly.

I have directed General Adams not to permit any cotton to pass out of our lines upon any contracts for the supply of our army until the equivalent in goods has been actually delivered, and request that you will give him special instructions to that effect.

He has orders also to break up the private trading with the enemy and to prevent by all means in his power any intercourse with them.

I am, general, very respectfully,

S. D. LEE,

Major-General.

MACON, April 5, 1864.

General LEE:

The following dispatch received from Colonel Jackson at Russellville, Ala.:

I have just learned that the enemy have landed five transports with 7,000 troops at Waterloo, also are moving up the river; they have also crossed a large cavalry force 6 miles above Savannah, which force is moving in the direction of Memphis - their cavalry force supposed to be 5,000.

L. POLK,

Lieutenant-General.

WHITESBURG, April 5, 1864.

Governor T. H. WATTS:

DEAR GOVERNOR: The enemy are shelling me at this place from across the river, but without effect thus far, as my pickets are protected by rifle-pits. I send you a Nashville paper, in which the "arch traitor" Jere. Clemens figures; also that crazy man known as Humphreys. The people of Guntersville, this place, and all along this river of good sense and any respectability before the war are true.

Forage is very scarce. If I had my brigade all together here I could accomplish something handsome by crossing the river, but I