HDQRS. MILITARY DIVISION OF THE MISSISSIPPI, Nashville, April 3, 1864.

Major General F. STEELE, Louisiana:

DEAR GENERAL: Since this important command has been devolved on me, I have been busily engaged in inspecting my front line on the Tennessee. It is not my wish or purpose to circumscribe you with orders; you are far better acquainted with your sphere of action and your troops than I am. I am clear of opinion that all Arkansas can be better defended in a military sense on the line of Red River than any other, and therefore I approve highly the joint movement on Shreveport. General Banks has 17,000 troops engaged in that plan, and I understand you have 7,000, besides the garrisons needed at Little Rock and Fort Smith. I am compelled to withdraw A. J. Smith's command of 10,000 that I loaned to General Banks for thirty days, which thirty days are out on the 10th instant. After these are withdrawn from Red River I leave you in concert with General Banks to do what is right and proper.

If you need more men, I doubt not General Grant would re-enforce you from the points whence re-enforcements should come, viz, Kansas and Missouri. General A. J. Smith will have to march across the State of Mississippi and join me at some point of our line of operations. Forrest has availed himself of this chance to push up between the Tennessee and Mississippi and attacked Paducah, but was repulsed. What ulterior plans he has are not yet developed, but I will try and see if we cannot circumvent him. Blair is to have the Seventeenth Corps, Logan retaining the Fifteenth; other changes are discussed but not agreed on. I beg you to write often, and keep me advised of all things essential, but I will not undertake to control your movements at this distance. I cannot expedite the return of veteran volunteers; these are controlled from Washington; but I doubt not the design is for all to return to the commands they formerly belonged to. My movements are much embarrassed by the absence of a large proportion of my several armies.

With great respect,
W. T. SHERMAN,

General, Commanding.

HEADQUARTERS DEPARTMENT OF ARKANSAS, &C., Little Rock, April 3, 1864.

Major General F. STEELE, Commanding Department of Arkansas:

GENERAL: Supposing that my efforts to communicate with you since the 27th ultimo have failed, and having received nothing from you since the escort of Lieutenant Litherland left you, on consultation with General Kimball I send Mr. Colvin, whom Captain Carr recommends as a reliable scout and one who will go through to you.

The following dispatch was received at 12 m. to-day:

WASHINGTON, April 1, 1864-11 a. m.

Major-General STEELE:

Lieutenant General U. S. Grant directs me to telegraph to you that when your forces reach Red River you will, in conjunction with the naval forces, occupy and hold the line of that river, so as to cover the Indian Territory, Arkansas, and Northern Louisiana.

H. W. HALLECK,

Chief of Staff.