BALTIMORE, MD., July 6, 1864.

Major-General WALLACE,

Monocacy Junction:

GENERAL: I have the honor to report that matters are progressing favorably here. The Union Leagues are forming companies, and as fast as the companies are reported I send the captain a copy of the circular herewith inclosed, so as to prepare them for a call. They seem pleased with it. I think they will raise twelve of fifteen full companies. They prefer battalion organizations, of four companies, to select their own field officers, and say there will be no great objection to your appointing the officers, but upon the whole prefer to elect their own. I have issued a special order to-night to arrest all officers in this city without authority. Copy of the special order* is inclosed for your information. It said there are a great many such officers in town.

Upon receipt of the order of the Secretary of War this p. m. to relieve Mr. Reid, I was inclined to reply to the Secretary that the report was sent on the 28th June to Colonel Townsend, and ask for a suspension of the order for a few hours until he had read it (the report), but upon carefully studying the order I was convinced that the Secretary intended the release to be made and the report afterward. While I was considering the matter a dispatch was received from the Secretary to a Mr. Warfield, informing him that he had ordered the release of Mr. Reid, so I saw that it was no use to delay the execution of the order, and so directed Colonel Woodley, who at once issued the orders. The current business of the office is about as usual, all the office almost constantly, and can keep up I think. The Union League asked permission this a. m. to organize a cavalry company. I told them to go ahead and report when they were ready. Then if you approve I will seize horses from the rebels here and mount them - that is, if necessary. The list of persons who own horses has been furnished by the police. The cavalry company prepared by the Union League will be mainly composed by those who have had experience in the cavalry service. I think it a good idea. Captain leib with his cavalry marched this afternoon.

Respectfully, your obedient servant,

SAML. B. LAWRENCE,

Assistant Adjutant-General.

JULY 6, 1864.

Major-General WALLACE,

Monocacy Junction, Baltimore and Ohio Railroad:

There are over 300 skulkers from General Sigel's army at Annapolis. They are without arms. can you send them on or shall they be armed and sent to you for service?

SAML. B. LAWRENCE,

Assistant Adjutant-General.

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* Omitted.

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