MEMPHIS, TENN. September 6, 1864.

Major-General HALLECK,

Chief of Staff:

Reports to-day from two sources are to the effect that Price & Co. were at Jacksonport one week ago yesterday. I do not vouch for it, but think it highly probable. He was said to have a force of 15,000 mounted men.

C. C. WASHBURN,

Major-General

LITTLE ROCK, ARK., September 6, 1864.

Major General C. C. WASHBURN,

Memphis, Tenn.;

GENERAL: The rebel cavalry under Fagan, reported from 3,000 to 4,000 with a large train is moving up the Arkansas for the purpose of joining Shelby on the east side and to take possession of the railroad . Price is moving up on the west side with a large force, which it is said is followed by Magruder's command from Texas. It is said that they propose to attack this place in front while Fagan operates in rear. This is the most reasonable explanation of their movements. Rebel deserters and others say that the cavalry under Fagan and Shelby intend making a raid into Missouri, and that price is going to hold my command here until they can get across White River. They always report something that they are not going to do; besides they cannot subsist so large a cavalry force in Missouri by any route that I can hear of. I am satisfied that this is their objective point. I can defend this place against Price, but would be very likely with my small force to lose the railroad and depot at Devall's Bluff. If you can send the 8,000 mentioned in your dispatch to General Andrews I hope you will do so at once. My situation is a critical one. To watch the movements of the enemy I am obliged to keep the principal part of my cavalry out in detachments all the time, which is being frittered away without any apparent results in mere skirmishes. I see that General Curtis has seized the First Nebraska, one of my veteran regiments. The Forty-third Indiana is also detained. Several regiments that were ordered to me stopped at Memphis, and one, I am told, went to Vicksburg . Two 100-days' regiments at Helena are discharged by expiration of service, and I am constantly discharging those who did not re-enlist. Part of the Third Missouri have served out their time, but have agreed to stay a short time longer. The non-veterans of several other regiments will soon be entitled to go home for discharge.

Very respectfully,

F. STEELE,

Major-General.

(Copy furnished for information of General Canby.)

HEADQUARTERS DEPARTMENT OF THE MISSOURI,

Saint Louis, September 6, 1864

Major General C. C. WASHBURN,

Memphis, Tenn.:

GENERAL: Accept my thanks for your telegram and letter of the 2nd instant, which were duly received. That of the 5th instant in cipher is