nished by me, and General Steele for shoes received by him. I send General McCulloch's estimates and copies of his letters. I shall ask of Mr. Sorley to loan these staff departments the funds required, but I respectfully suggest that the lieutenant-general commanding will request Mr. sorley to turn over such funds as may be required by the chief disbursing officers of the district to meet these liabilities. I am informed that the Confederate notes received by him in exchange for bonds, and which were to have been canceled, are retained by him for reissue, in accordance with instructions of the lieutenant-general commanding, and I am of opinion that the time has arrived for such reissue of these notes to the disbursing officer of the army if he have exhausted the other funds he had on hand. I beg leave to ask the attention of the commanding general to these papers of Brigadier-General McCulloch, and such action in relation to funds as he may deem proper.

It will be perceived that I have ordered Brigadier-General Bankhead's brigade, and such armed mounted troops, excepting two companies, as may be collected in Bonham and vicinity, to Millican, via the eastern route - that is, though Palestine. this was done with the view of meeting the enemy, who is now at Vermillionville, should he march to Niblett's Bluff, or diverting our troops to Nacogdoches, should the enemy proceed toward Alexandria. Luckily, we have now a heavy rain storm, and the roads will be bad for weeks, so that his progress will be slow in whatever direction he may go. The storm here has been severe, slow in whatever direction he may go. The storm here has been severe, and is not yet over. the four blockading steamers were obliged to go far to sea, and their coal ship was driven ashore, and surrendered to our men to-day. I sent down Commodore Leon Smith to dismantle her, and to secure her cargo, which is done. Her crew are prisoners in our hands, and have just come in.

I respectfully suggest for the consideration of the lieutenant-general commanding the propriety of attaching the Indian Territory to the command of Brigadier-General McCulloch. It will simplify the administration, I think, and will be conductive to the public interest.

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

J. BANKHEAD MAGRUDER,

Major-General, Commanding.

HEADQUARTERS,
Velasco, Tex., September 29, 1863.

Captain A. N. MILLS,

Assistant Adjutant-General:

SIR: The brigadier-general commanding this military sub-district will observe from the last weekly report forwarded from my headquarters that I had only 284 men for duty, including all commissioned officers and enlisted men. I have only 35 cavalry (State troops) to scout and guard a distance along the coast of some 70 or 80 miles, when there ought to be at least three companies.

I have, by a communication dated September 19, called the attention of the commanding general to the fact that my four companies of cavalry had been detained in Louisiana, contrary to a promise made by Brigadier-General Mouton; nor, indeed, have I ever received any information or intimation as to when these four companies might be expected; but hoping that they would soon be permitted to rejoin my regiment, I have hitherto refrained from urging upon the earnest attention of the commanding general the want of additional troops for the better defense of the country, to say nothing of the injustice to my command. I