HEADQUARTERS FIRST CAVALRY DIVISION, Maryville, November 2, 1863.

Maj. Gen. JOHN G. PARKE:

GENERAL: Your communication received. I only proposed to move to Morganton in case the fords and ferries were to be picketed. It is 18 miles from here to the nearest point of the river. I am satisfied that some 1,200 or more rebel cavalry were on this side the Little Tennessee last Friday, but went back, probably from fear of high water; and I do not think there is any force this side now. I have not received reports from my scouts yet, but the reports of the home guards and others are that they, the rebels, have all recrossed. I directed the party that went by the way of Unitia to report to General Potter, and both parties to go as far as the river, unless they met with too great a force.

Colonel Wolford has purchased several horses, and thinks the prospects favorable for getting a number.

Captain Wolford has just returned from Morganton, bringing in 12 prisoners with their arms, horses, &c. They were taken at the river. A party of about 100 had been on this side. He reports considerable force on the other side; saw about a regiment on foot. He also captured the rebel guide, a man who has taken the oath. The river is fordable at Morganton. The prisoners say their force intends crossing in the morning. Heard of a force in the direction of Unitia, but thinks it the same party that were crossing when he came on their rear.

The party on Nine-Mile Creek road is also in, but did not find any rebels.

I will send the prisoners on in the morning.

Respectfully,
W. P. SANDERS,

Brigadier-General of Volunteers.

P. S.-Mr. Kennedy, sr., especially desires that I shall give his information, which he says came through one of the most influential rebels, and was only given to him under strict promise of secrecy. It is to the effect that the rebel plan is to cross the Little Tennessee at various places with a force of some 40,000 men, occupy Blount and Sevier Counties, and then get around Knoxville, and drive us from the State or destroy our line of connections. They were to have been here to-day but for the high water.

W. P. SANDERS,

Brigadier-General of Volunteers.

HENDERSON, November 2, 1863.

General BURNSIDE:

GENERAL: Your dispatch received. I thank you for your kindness. I have here not exceeding 1,800 well-mounted men. I could march 2,400 men on serviceable horses that are classed as unserviceable. Including the batteries, I have here over 3,000 fighting men.

I would suggest that the horses belonging to the Eighth Tennessee Regiment, about 250, be turned over to one of the brigades; and that the regiment or that part of it that is left [for want of field officers a large number have deserted and absented themselves from the regiment and the balance are demoralized and inefficient] be sent to