[First indorsement.]

HEADQUARTERS, Vicksburg, October 24, 1863.

Respectfully forwarded to Major-General Grant for his action in the matter.

J. B. McPHERSON,
Major-General.

[Second indorsement.]

HADQRS. MILITARY DIVISION OF THE MISSISSIPPI,

In the Field, Chattanooga, November 2, 1863.

Respectfully returned.

In the exchange of prisoners of war you will be governed only by such regulations as are authorized from Washington.

By order of Major-General Grant:

ELY S. PARKER,

Assistant Adjutant-General.

HEADQUARTERS OF THE ARMY,
Washington, October 26, 1863.

Major-General BANKS, New Orleans:

GENERAL: Your dispatches of October 16 and 17 are received.

In regard to our prisoners of war held by the enemy, I submit the following brief explanation of the difficulties in effecting any exchanges on account of the utter disregard of the cartel by the rebel authorities.

The enemy commenced the violation of this solemn agreement by refusing to deliver and exchange certain classes of office and men, and as soon as they had in their possession a large number of their own, paroled by General Grant at Vicksburg and yourself at Port Hudson, they entirely ceased delivering ours as required by the cartel, but placed them in close confinement. They then proceeded to declare all of their own paroled prisoners "duly exchanged" without any equivalents delivered to us. In this way they have been able to return to duty in the field a much larger number of men than if they had made regular exchanges. This was a most shameless violation of the cartel and the general laws of war.

To now exchange the rebel prisoners in our hands for ours in the possession of the rebels would be to admit the legal exchange of the rebel prisoners already returned to duty.

General Hitchock and Meredith have been doing their best to arrange this difficulty and to renew the system of exchanges established by the cartel, but it is almost useless to except any justice or honesty from a rebel, who is described by Shakespeare "upon whom do swarm the multiplying villainies of nature. "

Very respectfully, your obedient servant,

H. W. HALLECK,

General-in-Chief.

HEADQUARTERS U. S. FORCES,
Columbus, Ohio, October 26, 1863.

Colonel WILLIAM HOFFMAN,

Commissary-General if Prisoners, Washington, D. C.:

SIR: In reply to your letter of the 21st instant, requesting information as to the treatment of General Morgan and his officers on their arrival at Columbus, I have the honor to inform you that the first, consisting of General Morgan and party, arrived from Cincinnati on the