NEW YORK, July 16, 1863.

SIR: The situation is evidently improve. Cars and omnibuses are running. The Hudson River Railroad has been relaid, and trains have come in and gone out without molestation. Laborers have resumed work at various points, and the lower part of the city presents its usual appearance. The fighting last night was quite severe. At one time the mob had the best of it, and possession of our dead and wounded, including 2 officers of the Duryea Zouaves, killed, and Colonel [Edward] Jardine, severely wounded. General Brown sent all the force at his disposal. He retook the position, and brought off the dead and wounded. There were killed in this contest about 15 of our men and about 25 of the rioters. The mob were armed, organized, and fired at the word of command. General Brown has now, including the Seventh Regiment, about 1, 4000 men under his command. He thinks the force for his special purposes should be increased to 3, 000. It is impossible to ascertain how many troops there are here, owing to the conflict of authority under which each officer will report those belonging to himself and all the others. Yesterday one officer received, at nearly the same time, five conflicting orders from as many commanders-in-chief. There is no danger of getting too many troops here of the right kind. The indications, to my mind, are that the rioters are resting and organizing. They have got arms to a considerable extent, and use them pretty well. The agrarian mania has taken a strong hold of a certain class, and the cry of contrast between rich and poor is loudly raised. Every city and town that we hear from is effervescing. Philadelphia seems the most quiet, but, if once started, will be the most dangerous. I have taken care that all press dispatches which went out this morning conveyed the right impression. The strong hand tightly grasped here will be felt all over the Union. When you have given us a leader, and he has 10, 000 men at his command, the country will be safe. Respectfully,

E. S. SANFORD.

Honorable E. M. STANTON,

Secretary of War.

NEW YORK, July 16, 1863. (Received 7. 10 p. m.)

SIR: There has been no fighting to-day of any consequence. The gatherings of excited people are confined at present to a small section of the upper part of the city. I anticipate a renewal of trouble to-night, both here and in Brooklyn. Advises from all quarters indicate that resistance to the draft will be made the pretext for rioting in nearly every large town in the country. Respectfully,

E. S. SANFORD.

Honorable E. M. STANTON,

Secretary of War.