CITY POINT, VA., August 18, 1864.

Major - General BUTLER, Commanding, &c.:

I am opposed to exchanges being made until the whole matter is put on a footing giving equal advantages to us with those given to the enemy. In the meantime I direct that no flags of truce be sent to the enemy nor any arrangements or agreements entered in to with him without my first being fully advised of what is being done and yielding my consent to it.

The steamer New York will not be permitted to proceed to Aiken's Landing until I receive are port of the full object of the mission and the load she now has on board.

U. S. GRANT,

Lieutenant - General.

BUTLER'S HEADQUARTERS, August 18, 1864. - 7 p. m.

Lieutenant - General GRANT:

Telegram received. No exchange has or will be made which will give the enemy any advantage. To show that my views and the lieutenant -general's are in exact accordance, I will send letter written to General Hitchcock today upon this subject with the indorsement referred to.

I have exchanged no body but wounded men since the 1st of May, except surgeons, non - combatants, and a few cases of special exchange. A full report will be made to the lieutenant - general of all that was intended to be done in the matter.

BENJ. F. BUTLER,

Major - General, Commissioner of Exchange.

[Inclosure.]

HDQRS. DEPT. OF VIRGINIA AND NORTH CAROLINA,
In the Field, Va., August 18, 1864.

Major - General HITCHCOCK,

Commissioner of Prisoners, Washington, D. C.:

GENERAL: I have received one or two indorsement from you which say in substance that "it is desirable to have all our prisoners exchanged. " I agree [to] that if all means all. But do the Government intend to abandon the colored troops? That is the only question now pending. All others can be settled. From my conversation with the lieutenant - general he does not deem it desirable to move from the position taken on that question. I will again call the subject to the attention of Mr. Ould and obtain an interview with him if possible.

I have the honor to be, very respectfully, your obedient servant,

BENJ. F. BUTLER,

Major - General and Commissioner of Exchange.

CITY POINT, VA., August 18, 1864.

Major - General BUTLER, Commanding, &c.:

I am satisfied that the object of your interview had the proper sanction and therefore meets with my entire approval. I have seen from Southern papers that a system or retaliations going on in the South which they keep from us and which we should stop in some way. On