affairs east of the Mississippi River and in prospect west. I am just in receipt of a letter from Major E. C. Boudinot, in which he says the Confederate States has passed an act to pay the annuities to the Indians in cotton. Under the existing circumstances I would respectfully suggest that the negotiations with the Indians of the plains be confined to merely securing friendly relations with them. The contemplated raid into Kansas will be deferred until I can hear from General Smith, of whom I have asked instructions relative to it, and hope they will be received before the council adjourns. The governors of Texas, Louisiana, Arkansas, and Missouri, the commanding general of the department, and other military officers of high rank are now in council at Marshall, to whom it is supposed propositions for the surrender of this department by General Grant have been referred, General Smith having refused to accede to the demand for the surrender of this department, and is making active preparations for its defense. "His best to wait for the word. No news yet from Gibson. Captain Fields has gone upon a scout to see what is going on. I have also sent a scout from Bryan's battalion under Captain Owens. In case You withdraw Your troops from the western frontier, do it quietly and leave a sufficient guard to protect the council and see the Indians off to their ranges. I have directed the Indian division to be assembled on Little Boggy. Bryan and Piercey are here, and will be used according to circumstances.

Your friend,

D. H. COOPER,

Brigadier-General.

HOUSTON, May 16, 1865.

General E. KIRBY SMITH,

Commanding Trans-Mississippi Department, Shreveport:

GENERAL: On the night of the 14th instant, from most reliable information that can be obtained, some 400 of the troops attempted to desert the post of Galveston with arms in their hands. Colonel Smith, by prompt action, supported by Colonel Timmons' and Colonel Hobby's regiments, arrested their advance and restored quiet. I learn from Major-General Maxey, that, notwithstanding all his efforts, he cannot produce such a state of feeling in hid division as will justify him in depending upon their resisting. I have seen letters from intelligent officers in Walker's infantry division who state that those troops will fight no longer. I have sent for General Walker and he will be here to-day; will add what he may say after I see him. The officers and men insist upon dividing the property before the surrender, and I think it ought to be done as I have telegraphed You. I have exerted myself more than I ever did to in still a spirit of resistance into the men, but in vain. I but make myself antagonistic to the army and an object of their displeasure. Nothing more can be done except to satisfy the soldiers, to induce them to preserve their organization, and to send them in regiments, &c., to their homes, with as little damage to the community as possible. For God's sake act or let me act.

J. B. MAGRUDER,

Major-General, Commanding.

P. S. -I entirely concur in the foregoing. I will say in addition that my observation convinces me that the troops of this district cannot be relied upon. They consider the contest a hopeless one, and will lay