rations, which are now, and have been for a long time, issued in half and quarter rations. Beef and pork only are issued in full rations. Nearly all the breadstuffs have been drawn from the surrounding country, and all the forage for the animals. This has necessarily exhausted the country to a great extent, which exhaustion has been increased largely by the depredations of Longstreet's army.

The problem of supplying the army here this winter is very difficult, but I think it can be solved if I am allowed to draw from General Grant's depots, at Chattanooga, by way of the river. To effect this, two small steamers, the Chattanooga and Paint Rock, are now available. The hull of another small steamer has been floated down to Chattanooga from Kingston to receive machinery. I have ordered three more hulls to be built at once, and the machinery for them to be sent from Cincinnati. I have also ordered the railroad bridges at Loudon and the Hiwassee to be rebuilt, but this work will occupy six weeks' time.

I have ordered the roads from Camp Nelson to Cumberland Gap, and from the former to Knoxville, via Somerset, Mouth of Big South Fork, Chitwood's, Wheeler's Gap, &c., to be made good military roads, and this work is now commenced, but as the season is late, it is doubtful whether they can be made good enough for the passage of wagons after the winter rains set in. Anticipating this, I have ordered Captain Dickerson to provide pack-saddles and panniers, so that as soon as the roads become impassable for wagons all the draught animals may be employed in carrying packs, and thus keep up something like supply trains. I have also ordered the road to Carthage to be repaired, and a depot of provisions to be established at that place, and also at the mouth of the Big South Fork of the Cumberland.

The people of this country, from the presence of hostile armies in their midst since the opening of the war, are rendered nearly destitute. These armies have rarely paid for what has been taken by foraging parties. Over &100,000 in claims are now here for settlement, and more than this is outstanding. To remedy this evil and relieve the people, at the same time to insure the bringing in of what supplies are yet in the country, I have ordered the quartermasters and commissaries to pay money for their purchases, and to make the necessary requisitions on their departments. I have ordered the broken telegraph lines to be restored, and a new line direct from Somerset to this place to be put up. The railroad bridges at Strawberry Plains and Mossy Creek are also to be rebuilt. I trust my action in the above premises will meet with your approval.

With regard to the military situation I cannot speak definitely. I have known for several days that Longstreet had halted near Rogersville, and to-day I am notified that an advance is made to drive back our pursuit. Should this be made in force I have directed General Parke to fall back until I can join him with General Granger's divisions. The rains of the past three days have made the roads so nearly impassable that it will be impossible to make a campaign toward the northeastern part of the State in the present destitute and weakened condition of the men and animals. I prefer, therefore, to wait until I can get them in effective condition. With regard to the kinds of troops here, I find that the mounted force is in this broken and extended country the most in demand for all operations