quently exchanging shots, did not succeed in killing any, they being entirely concealed below the steep banks of Lake Bingham. The whole party of Indians committing the depredations consisted of seven or eight, seven having been seen in the neighborhood of the raid, and or eight, seven having been seen in the neighborhood of the raid, and Captain Smith having counted from six to eighth. They broke out suddenly under cover of the night and left some plunder and two horses behind, taking eight horses along. Under the circumstances I saw the impossibility of overtaking the rascals, as Captain Smith was unable to track them, and returned to Watonwan, from whence I have dispatched scouting parties in all directions, but am satisfied that there are no more Indians in the country at this movement. Coming to Camp Wilkin at noon I was informed that new depredations had been committed on the Watonwan, between Madelia and Garden City, and coming down here I find it all rumors but no facts. Small detachments of cavalry will scour this whole country to reassure the settlers, who are greatly alarmed. Some militia companies are also out scouring the country, but will return, as I have assured them that there is no need of their co-operation at present. Hoping that the excitement will not be as great as I anticipate from what I have heard so far, I shall be happy to do all in my power to prevent the repetition of such raids.

Very respectfully, your obedient servant,

WILLIAM PFAENDER.

CITY POINT, VA., August 15, 1864-12.30 p. m.

Major-General HALLECK,

Chief of Staff:

If E. K. Smith succeeds in crossing his troops to the east side of the Mississippi, as he evidently is trying to do, Canby can spare a larger force to operate against Mobile. Instruct him to put as large a force there as he can. He must be able to spare 5,000 to 8,000 colored troops to go to Mobile. I am afraid he is unfortunate in his commanders of colored troops, and I do not think Granger was a good selection for the command at Mobile. I hope, however, that he may prove better than I give him credit for being.

U. S. GRANT,

Lieutenant-General.

HDQRS. MILITARY DIVISION OF WEST MISSISSIPPI, New Orleans, La., August 15, 1864.

Honorable B. F. FLANDERS,
Supervising Special Agent, Treasure Dept., New Orleans, La.:

SIR: Your communication relating to the process of sequestration issued by the U. S. district court in the case of the captured cotton recently turned over to you has been received. The cotton will remain in the possession of the agent of the Treasury Department and will be disposed of in accordance with the regulations of the War and Treasury Departments. If sold, the proceeds should be held subject to any decree of the court affecting its title or status at the time of its capture.

Very respectfully, your obedient servant,

E. R. S. CANBY,

Major-General, Commanding.