NEW ORLEANS, LA., October 19, 1865.

(Received 1 p. m. 21st.)

Bvt. Major General J. A. RAWLINS:

Since the receipt of the telegram of the lieutenant-general of October 13, I have ordered the muster out of all the regiments of the provisional divisions of the Fourth Army Corps except three; also three regiments of cavalry; also 1,000 men of the strength present for duty from the command of Major-General Mower, in the Eastern District of Texas. I will continue the muster out gradually and in accordance with our ability to transport the troops back.

P. H. SHERIDAN,

Major-General.

NEW ORLEANS, LA., October 21, 1865.

(Received 9. 10 p. m. 23rd.)

Lieutenant-General GRANT:

The difficulty of sending colored troops from Texas to New Mexico would be very great-almost an impossibility-in the winter season. I am not well acquainted with the line from Leavenworth, but my judgment is against the movement. I think colored troops if well officered would do well in New Mexico.

P. H. SHERIDAN.

WASHINGTON, October 22, 1865.

Major General P. H. SHERIDAN,

Commanding Military Division of the Gulf:

You are probably aware that I have been absent from Washington for eleven weeks. During that time Your dispatches touching Mexican affairs were received at the office, but some none of them forwarded to me. I only read them two days ago for the first time. This will answer a seeming negligence in my not replying to You. Immediately on my return from my Western four I had a long conversation with the President on Mexican affairs. On that subject he feels just as I do; in fact, as the whole country does, irrespective of parties. Before I left Washington I procured a leave of absence for Schofield for the purpose of allowing him to go to Mexico to take service there. I think Mr. Seward has been the stumbling block in the way of-his starting. Some correspondence, it is said, is going on with the French Government in relation to the withdrawal of French troops from Mexico, which is necessary to get a reply to before action. The President, however, told me that arrangements were made to supply the Liberal Government with arms without regard to their having means to pay for them. There is also, I believe, a project on foot to supply Schofield, or whoever goes there, with emigrants who will enlist after they reach Mexican soil. Of this, however, the Government knows nothing, and I only learned it from the fact that inquiries have been made of me how far emigration will be prevented. I have no hesitation in saying that I would like to see any amount of assistance given to the Liberals, and if I had my way I would use U. S. forces to give to them the Rio Grande country as a base to start from; that is, I would clear out the south bank for them. This, however, is not permitted. I believe, as is indicated in some of Your dispatches, that the Mexicans have no great leader capable of using the great resources at their disposal. It will