My proposition, therefore, as indorsed by Generals Meade and Howard, is, that the command of the Shenandoah Valley, as General Milroy had it, be given to me, and that my old division march from its present camping place to Front Royal and Strasburg, to accomplish the objects above indicated, and to form permanently part of my command.

I am, general, most respectfully, your obedient servant.

C. SCHURZ.

CIRCULAR] HEADQUARTERS ARMY OF THE POTOMAC,

Warrenton, Va., July 31, 1863.

The following movements of troops are ordered, and will take place with as little delay as possible:

1. The Sixth Corps will be stationed as follows: One division to hold the Waterloo crossing, and picket the river from Waterloo to Sulphur Springs. One division will be stationed at Warrenton and New Baltimore, and will furnish the necessary guards for the depot at Warrenton. The patrols and pickets of the corps at Greenwich, and will extend to the river.

2. The Third Corps will hold and picket the river from Sulphur Springs to the forks of the river, connecting with the pickets of the Sixth Corps above and those of the First Corps below.

3. The Fifth Corps will be massed in the vicinity of Fayetteville, prepared to move in any direction. Its supplies may be drawn from Waterloo Junction or Bealeton Station, upon giving due notice to the chief quartermaster and commissary of this army.

4. The First Corps will hold and picket the river from the forks near Beverly Ford, and one division at or near Rappahannock Station. The division at Bealeton Station will remain there, taking charge of the railroad from Warrenton Junction to the river. The pickets of this corps will connect with those of the Third Corps above and those of the Twelfth Corps below.

5. One division of the Second Corps will be posted at Elkton, with one of its brigades thrown out to Bristersburg, whose pickets and patrols will connect with those of the detachment of the Eleventh Corps which will be sent to Cedar Run some 4 or 5 miles from the railroad. The patrols and pickets of the corps should also connect with those of the Twelfth Corps.

6. The Eleventh Corps will occupy Greenwich, Brisoe Station, Brentsville, and a point on Cedar Run 4 or 5 miles from the railroad with sufficient force to patrol and picket the rear of the army, connecting with the patrol and picket of the detachment of the Sixth Corps at New Baltimore and those of the Second Corps at Bristersburg.

7. The Reserve Artillery will be parked near Warrenton Junction.

8. The Twelfth Corps will hold and picket the river from Wheatley's Ford to Ellis' Ford, headquarters in the vicinity of Kelly's Ford.

9. The cavalry will picket the flanks of the infantry corps, and will receive special instructions.

10. Corps commanders will cause the cavalry pickets now stationed in the localities they are directed to hold, to be relieved as soon as practicable.