bonds have not been accepted. Another difficulty that we labor under is that some of the orders issued at Richmond appear to be intended exclusively for use of the troops on the east side of the Mississippi River, and are not applicable to this side. Of that class is the order forbidding the arrest of a disbursing officer until his case is referred to the War Department. Such is the state of affairs here. If the Southern Cherokees, who are to hold a council in a few days, take any steps to make their peace with the Northern Government, it will have its effect upon the other Indians, and may result in transferring the men to a point much nearer Texas, if not within her borders; in which case the whole Confederacy would lose the beef and this department its supply of flour. The depreciation of the currency is enormous here; perhaps not larger than with you; but unless something is done to arrest the downward tendency of our currency, it will soon be worth nothing. It appears to me that heavy taxation would be a remedy. Take $10 out of every $100, and what is left would buy more than the hundred. Excuse the liberty in giving my views on subjects which, no doubt, you have given much more consideration than I have.

I remain, your obedient servant,

WM. STEELE,

Brigadier- General.

[Inclosure.]

WEBBER'S FALLS, C. N., April 12, 1863.

[Colonel W. P. ADAIR:]

COLONEL: I arrived to-day at this place, and found that the excitement growing out of the approach of the enemy had somewhat subsided. Captains Foreman's and Holt's companies are encamped on the river at the Falls, and Captains Brown and Vann on the prairie, within 2 miles. The river is picketed up to the mouth of Grand River at all times; but the smallness of the forces under Captain Foreman does not give the protection that our people should have, and it is greatly to be feared that the enemy will return, especially if they know (as, doubtless, they do) of the meeting of the convention. Captain Foreman, who is, as you are aware, president of the convention, desired me this evening to suggest to you the sending up of at least 200 more men (if General Steele will not order the whole of the Cherokee force up), and of that number we ought to have, at least, 50 cavalry. General Phillips is at Tahlequah beyond a doubt. Report says he has 3,000 men. Jack Cookston, a prisoner captured by Captain Holt at White Oak Springs, near Tahlequah, says that they (the Pins) intend issuing a circular inviting us back again. From his account, it was already prepared and being printed, and it will not surprise me if it does not cause considerable disaffection in our forces, not to say desertions, when the alternative of remaining in peace at home, well clothed, well fed, and with their families, or of nakedness, starvation, and, from what they or I can see, the unpleasant prospect of walking to Red River, is presented to them. The simple truth is, we have been very badly treated by the officers of the Confederate States in withholding our pay as soldiers, our clothing, and in flooding the country with thousands of dollars of duplicate accounts that to-day are not worth fifty cents on the dollar, even in Confederate money, to say nothing of the utter failure of the Confederate States to give the protection promised in the treaty, and that at a time when their military pantomime, General Pike, had force enough to defend us. We have been reduced from opulence to penury,