[Indorsements.]

HEADQUARTERS DEPARTMENT OF THE GULF,
New Orleans, January 21, 1864.

Respectfully referred to chief quartermaster, Department of the Gulf.

By command:

CHAS. P. STONE,

Brigadier-General, Chief of Staff.

OFFICE CHIEF QUARTERMASTER, DEPT. OF THE GULF,

New Orleans, January 21, 1864.

I have the honor to again report that I can get no forage, and that I am out. General Lee is still, buying horses without reference to what I report. Our supply by the river is mostly intercepted. Grain is sent from his city to Matamoras and there bought by or troops for god at twice its value. The Crescent will return and subsistence can be sent by her if ordered. General Herron's quartermaster demands, mules, although he has no forage to feed them. No effort to get supplies has been spared, but my authority is extremely limited. Captain Mack has but 130 sacks of grain on hand this morning. There is a painful absence of information on the part of some of the officers and want of unity in many things. If achene can run a separate establishment who commands a post or division, the cavalry or the artillery, I beg to be relieved my present responsibility. I am willing to assume all that properly attaches to my position, but would lie some ground to stand upon.

S. B. HOLABIRD,

Colonel, Chief Quartermaster.

HEADQUARTERS OF THE ARMY,
Washington, January 7, 1864.

Major General F. STEELE,

Little Rock, Ark.:

GENERAL: Orders were issued yesterday, by direction of the President placing you in command of the new Department of Arkansas and constituting you command the Seventh Army Corps. That clause which places you under the orders of General Grant is not intended to affect in any way your powers and authority as the commander of a military department. You will therefore make your returns and reports to the Adjutant-General of the Army, and communicate as usual with these headquarters. You will also communicate with General Grant in regard to all military movements, in order that there may be a complete understanding and co-operation of all the forces in the Mississippi Valley. It is quite possible that a combined movement of your corps and the troops under Major-General Sherman may be determined on, and, if so, it is deemed proper that General Grant should direct it.

In regard to civil matters in your department, the President has prepared some instructions which will be sent to you through General Kimball. I have just seen your letter of December 12 to General Schofield in regard to an advance toward Red River.* It was