him that I have no quartermaster that I can send to get the funds, which he says are ready, and though estimates were sent before my quartermaster came down. I was exceedingly anxious about this money, as I expected that a payment would be the means of collecting the men of that command and give me an opportunity to clear the rolls by dropping those not present or absent with proper leave. It appears to me that it is not necessary to know the exact amount required in a case of emergency like this, as the officer who comes can very easily take back any surplus of funds.

One of the difficulties in the way of the reorganization of that command is the fact that the enemy has issued a circular denying that the Port Hudson paroled prisoners are exchanged. I send you a copy of the Yankee circular, and I intend to communicate with General Cooke on the subject. Of course this is merely an excuse on the part of the men, who must all have seen or heard the order on exchange. The resources of this country in the way of subsistence for cavalry are considerable. I think 4,000 cavalry could be kept here till May or June, but I fear that the Yankees will not permit us to do so. My impression is-indeed, I am quite sure-they will advance on Clinton and Woodville from the river and lake shore. The Federal force in East Louisiana is about 14,000 white and 7,000 black troops, and there is nothing to keep them from occupying Clinton and Jackson, and using the railroad to Port Hudson. This, I think, they will attempt to do, in order to get the vote of the State for reconstruction, as indicated in the proclamation of Lincoln. I shall endeavor to burn all cotton that is likely to fall into their hands, but cannot, of course, burn it all. I shall submit, accompanying this, a paper for your consideration and approbation on the subject of cotton, on which I hope you will agree with me.

This communication has assumed a more lengthy form than I expected, and has embraced perhaps a greater number of subjects than properly belongs to one letter, but I could not well have explained the condition of my command and said less. I am glad that this district has been place under you command, as it requires that prompt and close attention that could hardly be given it by the commander of such and extensive command as that of General Polk's; and I am glad, too, that in sending me here a command of geographical limits was given me, as the people seem evidently more disposed to respect such a command than one merely composed of troops, in which latter case they seem to have an idea that you have no right to command or interfere with citizens.

Hoping to see or hear from you soon, I am, very truly and respectfully, yours,

EDWARD DILLON,

Colonel, Commanding.

HOUSON, TEX., January 29, 1864.

Brigadier General H. E. McCULLOCH,

Commanding Northern Sub-District, Bonham:

MY DEAR GENERAL: I have received your letter of January 23, with inclosures, in which you ask again for more means to accomplish the necessary end-the good of the country. If our means were adequate to the accomplishment of our end in war, it would be