occurred, and 25,000 or 30,000 men will join you at once. I have taken eleven cities and town very heavy army stores.

JOHN H. MORGAN,

Colonel, Commanding Brigade.

If this report be true General Morgan will be compelled to detach a portion of his command. When he does so it will present the most favorable opportunity of pushing forward your operations, and probably enable you to enter Kentucky. The inclosed papers are forwarded for your information. The general directs that yo return them after examination.

H. L. CLAY,

Assistant Adjutant-General.

(Substance of Colonel Morgan's dispatch telegraphed also to the Adjutant and Inspector General, Richmond, Va., and to General Bragg, Tupelo, Miss.)

HEADQUARTERS DEPARTMENT OF EAST TENNESSEE,
Knoxville, Tenn., July 24, 1862.

General BRAXTON BRAGG,

Commanding Army of the Mississippi:

GENERAL: Buell's movements and preparations indicate a speedy attack on this department. The completion of his arrangements was delayed by the expedition under Colonel Forrest. the expedition was sent with the expectation that it would retard the enemy and give time for your advance. Your telegrams of 20th and 21st instant inform me that re-enforcements have been sent to this department and of the impossibility of entering Middle Tennessee from your present position. The enemy will, I think, attempt no invasion of Mississippi or Alabama this summer. The character of the country, the climate, and the necessity for concentration east are insurmountable obstacles; he will confine his efforts to securing his present conquests and to obtaining possession of East Tennessee, making it a base for fall and winter operations.

Can you not leave a portion of your forces in observation in Mississippi, and, shifting the main body to this department, take command in person? There is yet time for a brilliant summer campaign; you will have a good and secure base, abundant supplies, the Tennessee can be crossed at any point by the aid of steam and ferry boats, and the campaign opened with every prospect of regaining possession of Middle Tennessee and possibly Kentucky. I will not only co-operate with you, but will cheerfully place my command in this department consists of three divisions. General Stevenson commands the First Division, composed of one cavalry and four infantry brigades. His command (9,000 effective) is well organized and mobilized and in good condition for active service. He is opposed by General Morgan, occupying a strong position near Cumberland Gap, with four brigades, estimated at 10,000 effective. General Heth commands the Seconds Division, comprising a legion, one brigade of cavalry, and three of infantry - about 6,000 effective. General McCown reports 3,000 effective men in his division. I have placed him in command of the District of Chattanooga. With General Heth, his command numbers some 8,000 or 9,000 effective. This department was organized independent of the Army of the West and by orders reports