in my office an estimate for funds for the command of Lieutenant-Colonel Holmes, signed by Captain J. D. Adams, who is not a bonded officer, asking to have sent him $24,585,000 for four-mouths' service in Arkansas. This estimate was by me deemed so extravagant and believed to exceed the demands of the service so far that I declined to issue on it, and so indorsed, and submitted my objections to the Secretary of War. Previous to the reception of this estimate Major Carr, the chief quartermaster to the Trans-Mississippi District, had received and left for his post with $4,888,567 for the service of the quartermaster's department. A portion of this sum he was directed to advance to the commands of several regiments en route to Little Rock, to replace which requisitions were made in his favor, and the funds have since been sent to his credit at Little Rock. With a view to prevent the possibility of a want of funds in that department and in anticipation of estimates the further sum of $2,500,000 was remitted him, and these funds left here on October 16 last in charge of a special agent, thus making a total of $7,388,567 supplied to that department since July 10 last. At the date of Lieutenant-General Holmes' letter the last remittances had not reached Major Carr; but should the amount thus placed at this disposal prove to be insufficient there is no doubt he will adopt prompt measures to remedy the deficit by sending forward his estimates for such sums as he may need. It is proper to observe that the sums above stated as sent to Major Carr do not include the sum of $1,132,393 lately sent to Major Quesenbury for the command of General Pike, also in Arkansas. I feel it my duty to remark that in no instance has the reasonable estimate of any bond quartermaster been received and not acted on the same day it reached my office. It can scarcely be possible that the outstanding debts due by the quartermaster's department in Arkansas amount to $13,000,000. The letter of General Holmes refers to his taking from the sum in Major Carr's hands funds for the commissary department. It may be that the outstanding debts referred to by him included those due for subsistence. If so, application should be made to the Commissary-General, who I doubt not will upon application make all needful arrangements to meet them.

I am, sir, very respectfully, your obedient servant,

A. C. MYERS,

Quartermaster-General.

BONHAM, TEX., November 21, 1862.

(Received December 23, 1862.)

Honorable GEORGE W. RANDOLPH,

Secretary of War:

SIR: Notwithstanding your doubts as to the possibility of the facts, it is true that General Holmes, after Mr. Johnson, the agent bringing out the moneys sent in September to Major Quesenbury, had loaned his quartermaster at Little Rock $350,000, did compel Major Quesenbury, by an order that reached Fort Smith three hours in advance of Mr. Johnson, to turn over the whole residue of the moneys to Major Pearce, and that it has been used for general army purposes in Arkansas. It is also true that Mr. Johnson, at Little Rock, informed General Homes of the order from the Adjutant and Inspector-General's Office prohibiting the diverting of supplies from their legitimate destination, and that in open contempt of the order he seized the moneys. It is also