HEADQUARTERS DEPARTMENT OF MISSISSIPPI,
Memphis, Tenn., January 12, 1865.

Major General N. B. FORREST, C. S. Army,

Commanding Forrest's Cavalry Corps, in the Field:

GENERAL: I have the honor to acknowledge the receipt of your communication of 6th instant under flag by Major J. P. Strange, assistant adjutant-general, with copies of your correspondence with Major General L. H. Rousseau; also the arrival of Lieutenant-Colonel Grass, of the Sixty-first Illinois Volunteers, on parole. As regards the exchange of prisoners, I cannot see under existing orders and regulations that I am authorized to negotiate, but will immediately forward the document received from you to may chief, for his orders in te premises, and will communicate with you on receipt of instructions. Much as I regret it, I cannot continue the agreement stated as existing between yourself and Major-General Washburn until I have the authority. Such exchanges are forbidden, and I have not been advised that Major-General Washburn applied for or received any orders on the subject. I reciprocate your expression of a desire to mitigate the sufferings and lessen the privations of the prisoners of war, and no effort shall be spared on my part to effect arrangement for exchanges on this part of the field. Lieutenant-Colonel Grass will be sent forward on his parole to effect his own exchange, at the earliest date possible, for Colonel E. W. Rucker, of your command.

Thanking you for the kindness shown to Lieutenant-Colonel Grass and, as the assures me, to other prisoners in you hands, I am, general, very respectfully, your obedient servant,

N. J. T. DANA,

Major-General.

DEPARTMENT OF THE INTERIOR,

Washington, D. C., January 12, 1865.

Lieutenant General U. S. GRANT,

City Point, Va.:

GENERAL: I transmit to you herewith a copy of a letter that I have this day addressed to the honorable the Secretary of War, which contains the views of this Department upon the subject to which it relates. A copy of my last annual reports is also transmitted, to pages 7 and 8 of which your attention is respectfully invited.

Very respectfully, your obedient servant,

J. P. USHER,

Secretary.

[Inclosure.]

DEPARTMENT OF THE INTERIOR,

Washington, D. C., January 12, 1865.

Honorable E. M. STANTON,

Secretary of War:

SIR: I have the honor to call your attention to the necessity that exist for the removal of the Indians who inhabit the country along the valleys of the Platte and Republican Rivers, along one of which the route of the Union Pacific Railroad will pass, in order that the engineers upon that road may prosecute their labors in security, and that the work may progress without danger of interruption as heretofore from the attacks upon the parties engaged, to which they are now and