sent to you truly the necessities which control our action. It has been deemed advisable that you should be placed in possession of the facts as soon as possible, and he leaves for that purpose this afternoon.

Major-General McClernand, with the larger part of the force recently at Matagorda Bay, arrived here on the evening of the 27th. The balance of the force will reach here as soon as the material at Pass Cavallo can be disposed of. I have reduced the garrisons upon the river to the lowest strength consistent with safety. Nothing has been left undone which would strengthen the force engaged in the movement upon the Red River. In view of the great efforts made by the enemy to concentrate a force sufficient to destroy this army, and to capture the fleet of gun-boats and transports, it is advisable that our force should be increased by 5,000 or 10,000 men if possible. It will make certain the destruction of the organized army of the enemy west of the Mississippi, the whole of which is here, and will, in that event, enable us to move against the enemy east of the Mississippi in such direction as you shall direct. It is nearly certain that the whole of this force would have been directed against New Orleans if we had become inextricably involved in operations, east of the Mississippi; or in the event of our remaining at New Orleans, it is certain that the invasion of Arkansas and Missouri by this force would have occurred. Both of these dangers have been avoided by the campaign which we have made, and except for the delay in co-operating with other forces in other parts of the country, I do not know that anything has occurred which should be a cause of serious regret to the Government, except the accidental loss which occurred on the morning of the 8th of April by the incautious advance of our cavalry upon the enemy, in full force, with the unprotected trains and artillery of our advanced guard. Except the loss sustained on this occasion, we have not lost a wagon, or a gun, or any material of the army, and have not suffered unduly in killed and wounded in the several severe conflicts through which we have passed. Our loss in killed, wounded, and captured, including all missing men, is less than 3,500; that of the enemy exceeds 5,000.

I inclose copy of dispatch received from Major-General Steele by Captain Dunham, an officer of my staff, which is the first communication I have been able to effect with General Steele since the campaign commenced. You will observe that his language is nearly identical with my former dispatch - that the line upon which he was moving was too far distant, and rendered impossible the co-operation of the two armies.

N. P. BANKS,

Major-General, Commanding.

Lieutenant General U. S. GRANT.

ALEXANDRIA, May 8, 1864.

(Via Memphis 19th and Cairo 21st. Received 12.30 p. m., 21st.)

The dam will be completed to-morrow, 9th instant, and the gun-boats relieved; we shall then move immediately for the Mississippi.

N. P. BANKS,

Major-General, Commanding.

Lieutenant General U. S. GRANT,

Washington.