we have defeated that expectation, and hold their full strength for the defense of their position, relieving entirely Missouri and Arkansas. Third. The co-operation of Steele, upon the line on which he is moving, renders us no assistance whatever. We should have but one column and one line, and with his forces there would be no obstacle to our progress. Fourth. The low stage of water in Red River deprives us substantially of the assistance of the gun-boats, leaving us to depend entirely upon the strength of our land forces, with very little aid even of water transportation above the point now occupied.

These considerations together show that the campaign is of greater importance than was generally anticipated at its commencement, and also that immediate success, with a concentration of our forces, is within our reach. I have drawn from my department all the men that can be spared, which gives me, at the outside, 20,000 bayonets. The junction of General Steele's forces would give me all the strength I need. Governor Hall, of Missouri, who is here, and who accepts the idea I have presented, that this campaign is a defense of Missouri, represents that there is a large unoccupied force in Missouri and Kansas, from which 10,000 men could be spared without detriment to the public service. I earnestly represent the increased importance of this campaign; the impossibility of withdrawing from it without the sacrifice of the navy, in the present state of navigation; the fact that it has changed the operations of the enemy from an offensive to a purely defensive attitude; that it is a protection to Missouri and Arkansas, as well as Louisiana, and the certainty of its immediate and successful termination, as reasons why the forces west of the Mississippi should be concentrated as far as possible upon this line and with this column. If the rebel army under Smith is destroyed no other can be organized, and the defense of these States can be safely left, in a great measure, to the people themselves, the whole of the available force of the Union army being turned, in the course of the season, to the assistance of the troops east of the Mississippi.

Unless this army can be destroyed or dispersed it will require all our forces, and more, to protect these States. I regard it of the highest importance, in the changed aspect of affairs, that this concentration should be made.

I inclose herewith a statement of the garrisons in my department, with the numbers of men at each, and suggest that the forces are not too large for the defense of the posts which they hold. The river is steadily falling; is scarcely navigable above this point. But our expedition does not depend upon the river. We only want the men necessary to overcome the enemy, who is in full force between us and Steele, moving alternately against one and the other, neither column being in sufficient force to effect his position. If we leave the Red River in possession of the unbroken forces of the enemy it will require constant vigilance and large forces to protect the navigation of the Mississippi or any of the trans-Mississippi States from invasion during the year.

I have the honor to be, with much respect, your obedient servant,

N. P. BANKS,

Major-General, Commanding.

Lieutenant General U. S. GRANT,

Commanding Armies of the U. S., Washington, D. C.