has cut the Atlanta and August and Atlanta and Montgomery Railroads, rendering th latter road inoperative for more than a month. Every available men in General Hood's department has been sent to the front, including the operatives in the Government shops. Still more troops are urgently needed. By the withdrawal of our army across the Chattahoochee River all the territory west of that stream, including the whole State of Alabama,is left open to the inroads of the enemy. There is no force for its protection. In North Mississippi the enemy has retired, but his intentions are not yet developed. If he is re- enforced, as it is now supposed he will be, by troops from Arkansas he will be enabled to move forward and defeat our cavalry in is front; or he amy send re- enforcements around to Sherman. Either event would tend greatly to increase the difficulties of our situation. General Johnson was relieved about the 17th of July and Hood promoted and put in command. Lieutenant General S. D. Lee has been assigned to the command of Hood's corps. On the 22nd of July General Hood fought the enemy near Atlanta, capturing 2,000 prisoners and 22 pieces artillery. Major General W. H. T. Walker of our army was killed. The Federal General McPherson reported killed. There was no decisive engagement. I will await here an acknowledgment of the receipt of this,a nd will promptly attend to any communication you may send for General Bragg.

I am, general, very respectfully, your obedient servant,

THOMAS BUTLER,

Captain and Aide- de- Camp.

[Inclosure Numbers 1.]

TUPELO, July 16, 1864.

General E. K. SMITH, or

Major General WALKER,

Trans- Mississippi;

(Care Commanding Officer, Clinton, La.)

The President instructs me to say the enemy is reported to have withdrawn his main force from Louisiana, to attack Mobile and operate east of Mississippi River. That under such circumstances it was expected of you that you would promptly aid by sending troops to defeat the plans of the enemy as soon as discovered. Three is no doubt the enemy is moving against Mobile or some point east of the Mississippi.

S. D. LEE,

Lieutenant-General, Commanding.

[Inclosure Numbers 2.]

MONTGOMERY, July 22, 1864.

Brigadier- General LIDDELL:

Send following dispatch across the Mississippi by a reliable officer, with instructions to deliver it either to Generals Smith, Taylor, Walker, or Polignac:

COLUMBUS, GA., July 22, 1864.

Lieutenant General S. D. LEE:

Inform General E. K. Smith that the President orders a prompt movement of Lieutenant-General Taylor and the infantry of his corps to cross the Mississippi. Such other infantry as can be spared by General Smith will follow as soon as possible. General Taylor on reaching this side of the Mississippi will assume command of the department.

BRAXTON BRAGG.

S. D. LEE,

Lieutenant-General.