BEALETON, January 3, 1864.

Captain PARSONS,

Acting Assistant Adjutant-General:

What duty is the Third Indiana Cavalry, First Division, to perform? The regiment is simply encamped, not picketing. The pickets of the Pennsylvania, near Morrisville, should be relieved. Signal officer at Watery Mountain having heard guns towards Manassas Gap this p. m. ; only two guns.

D. McM. GREGG,

Brigadier-General.

WATERY MOUNTAIN, January 3, 1864 - 2 p. m.

Captain WEIR,

Assistant Adjutant-General:

Have heard two guns this p. m. Sound appeared to come from direction and beyond Chester Gap. Could see no smoke from the guns. Some camp smokes have sprung up in the direction of Manassas Gap, and just beyond the Big Cobbler Mountain. A black smoke, as if from a burning house, seen near Thoroughfare Gap.

F. WILSON,

Captain and Signal Officer.

WATERY MOUNTAIN, January 3, 1864 - 3. 15 p. m.

Captain WEIR,

Assistant Adjutant-General:

I think this smokes reported are near Markham Station. The guns heard are beyond or in Manassas Gap. Can see no troops and everything is quite now.

WILSON,

Captain, Signal Officer.

CUMBERLAND, MD., January 3, 1864 -10 a. m.

(Received 12. 10 p. m.)

Brigadier-General CULLUM,

Chief of Staff:

I send you, for the information of the General-in-Chief, copy of General Sullivan's dispatch. If the enemy comes toward Romney or Moorefield I will be ready for him, and will certainly prevent his safe return.

B. F. KELLEY,

Brigadier-General, Commanding.

HARPER'S FERRY, W. VA.,

January 3, 1864.

The following just received:

CHARLESTOWN, W. VA., January 2, 1864.

I have the honor to report the return of Captain Stearns. He went by way of Bunker Hill. There he met Major Gibson, of General Averell's command. They had not sent any party toward Winchester. To-day Captain Stearns went within 3 miles of Winchester, met 3 deserters, and returned. He conversed with some citizens, who said Fitz. Lee and Rosser had gone toward Moorefield yesterday; that