of the service, viz: At Fort Rice, 4 companies of infantry and 30 horses; Fort Pierre, 3 companies of infantry and 30 horses; Fort Randall, 3 companies of infantry and 30 horses. The cavalry to be posted as circumstances may require.

I have the honor to be, very respectfully, Your obedient servant,

JOHN T. SPRAGUE,

Colonel and Chief of Staff.

NEW ORLEANS, LA., August 18, 1865-1. 30 p. m.

(Received 2 p. m. 19th.)

Lieutenant General U. S. GRANT,

Commanding Armies of the United States:

GENERAL: Scouts and an agent from Cortina have arrived here from the Rio Grande. There is no great change in the condition of affairs there since my last telegram. The Franco-Mexico rebels hold Matamoras and Monterey, the Liberals all the balance of the country. The imperialists are getting shaky about their connection with the rebels. Juarez is stupid. He does not know what he has in his hands. I will be obliged to go to San Antonio next week to fix up the cavalry columns and move some to Laredo and Fort Duncan if possible. I will go as far as Fort Duncan and will possibly see Juarez. The Colonel Terry whom I reported in a previous dispatch as having crossed the Rio Grande and being disarmed was Judge Terry, of California notoriety.

P. H. SHERIDAN,

Major-General, Commanding.

NEW ORLEANS, LA., August 18, 1865-2 p. m.

(Received 1. 45 p. m. 19th.)

Lieutenant General U. S. GRANT,

Commanding Armies of the United States:

GENERAL: It is more than probable that E. Kirby Smith came to this city on last Thursday, sub rosa. On Friday afternoon I learned of his arrival. On Saturday morning I found Beauregard came up nearly sub rosa. Sunday night there was assembled a few individuals at Beauregard's house. Monday night I had his house searched, but did not find Smith. There has been quite a collection of rebel generals here in the last two weeks, some sub rosa, some by authority. I feel quite certain that the burden of their mission here was the Mexican colonizations scheme. There appears to be a freemasonry among all rebels in New Orleans. An offer of 10,000 men was made not long ago to Maximilian through Mejia. There is but little doubt of this, but Mejia is getting shaky, and it is said rejected the offer. The Maximilian Government in Mexico is a farce. He holds only a few cities and towns, and cannot collect revenue except on the line from Vera Cruz to the City of Mexico. If our Government does not watch these rebels closely there will be a Franco-Mexico rebel league. If France means to support Maximilian, she will do it with rebels if possible.

P. H. SHERIDAN,

Major-General, Commanding.