and Colonel Sherburne concur with me. This number taken out 4,500 effective mounted men, exclusive of the Second Maine Cavalry, which is for special service, remain as a reserve force. This reserve force should, I believe, be concentrated at one or two points for discipline, drill, improvement, and rest. For this, I understood you to say, the proper orders would be issued as soon as circumstances required. Such of the force reporting to the defenses as becomes broken down from service can be replaced from time to time from the reserve, and thus given an opportunity to be ready for the coming campaign. The main point of this note is to recommend about how much cavalry should be "on the go" in the defenses, inasmuch as the matter of the reserve was assented to a day or so ago. Under no other plan than this will I be able always to answer the questions, "Is the cavalry in hand?" "What is its condition?"

J. W. DAVIDSON,

Brigadier-General and Chief of Cavalry.

NOTICE.] INSPECTOR'S OFFICE,

Lafayette Square, July 29, 1864.

All persons who have paid sums of money to any officer of the Government, or to any party purporting to represent the Government, for rent, assessments, commissions, passports, privileges, blackmail, or release from required duty, or any other, without consideration, will please hand to the undersigned, at his office, a concise statement of date of payment, property represented, time for which payment was made, amount, to whom paid, and any other information necessary to establish the amounts collected in this city and in the Department of the Gulf.

JAS. H. STOKES,

Inspector.

NEW ORLEANS, July 29, 1864.

General LAWLER:

What is the state of affairs with you this morning?

J. J. REYNOLDS,

Major-General.

MORGANZA, July 29, 1864.

(Received 10 a. m.)

Major-General REYNOLDS:

GENERAL: From sources which I think are reliable I have learned that a movement on this place by the rebels had commenced on the 14th instant, but has since been abandoned, and that the enemy are now moving toward Black River to obtain subsistence. A portion of them have also gone to Arkansas. This information I deem entitled to credit. I sent out an expedition yesterday, under General Ullmann, on the Morgan's Ferry road. Met the enemy about 200 strong, had a skirmish and scattered them, killing 5, capturing 2, and wounding others. Lost 2 men killed, a few wounded, among the latter Colonel Chrysler, rather severely in the neck. Our force pushed on the Atchafalaya. The enemy had three guns in position on the opposite side, and a camp apparently of 150 cavalry. Could do nothing with our artillery on account of the high ground and sharpshooting. In a day or two I shall organize a force to break up their effectually, if possible.

M. K. LAWLER.