COLUMBUS, KY.,

January 6, 1864.

Major-General HALLECK,

General-in-Chief:

Package relating to complaint of the interruption of stores en route for General Banks is received, and shall receive my immediate attention. You know General McPherson well enough to agree with me that he would not do such a thing without some good reason, or in consequence of some mistake. I will assure General Banks that, instead, of taking his provision, we stand prepared at all times to share our own with him.

W. T. SHERMAN,

Major-General.

WAR DEPARTMENT,

Washington City, January 8, 1864.

SECRETARY OF STATE,

Washington, D. C.:

SIR: The Secretary of War instructs me to transmit for your information the inclosed copy of a letter of the 26th ultimo from Major-General Banks, commanding Department of the Gulf, on the subject of your dispatch to him of the 12th ultimo, with the approval of this Department thereon indorsed, giving him the control over all intercourse arising out of the war with the insurgents in Texas or with the Government of Mexico, or any of its citizens.

I have the honor to be, your obedient servant,

ED. R. S. CANBY,

Brigadier-General, and Assistant Adjutant-General.

[Inclosure.]

HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, December 16, 1864.

Honorable E. M. STANTON,

secretary of War, Washington, D. C.:

SIR: A dispatch from Secretary of State, with your indorsement thereon, directing that a copy of the instructions upon the subject of our relations with Mexico be sent to Brigadier-General Hamilton, was this day received. The papers have been forwarded as directed.

Major-General Herron assumes command on the Rio Grande, in place of Major-General Dana, having left the city yesterday for this purpose. A copy of the dispatch was given him. He is an officer of rank, of excellent capacity and address, and will make every exertion to maintain undisturbed the present relations existing between all parties in interest in Mexico and this country. Major-General Dana will assume command of the Thirteenth Army Corps as soon as he is relieved by General Herron.

It gives me pleasure to say that my relations with General Hamilton are entirely satisfactory, and I have no doubt we shall be able to discharge the duties assigned to us without any unpleasant results.

I have the honor to be, with much respect, your obedient servant,

N. P. BANKS,

Major-General, Commanding.