NEAR SPOTSYLVANIA COURT-HOUSE, VA.,

May 16, 1864-5 p. m. (Received 2.30 a. m., 17th.)

Major-General HALLECK:

Private letters and official statements from the Department of the Gulf show such a state of affairs there as to demand, in my opinion, the immediate removal of General Banks. The army has undoubtedly lost confidence in him. I would suggest the appointment of Franklin to the command of the Nineteenth Corps, and Reynolds or Hunter to the command of the department. This is send in the supposition that Canby had gone in command of the military division of the Trans-Mississippi. If Cany has simply relieved Banks in command of the department, then the change will be satisfactory.

U. S. GRANT,

Lieutenant-General.

SPECIAL ORDERS,
HDQRS. MIL. DIV. OF WEST MISSISSIPPI, Numbers 16.
Mouth of Red River, La., May 16, 1864.

1. The commanding general Department of the Gulf will report, as soon as possible, the number, condition, and equipment of the troops under his command, the points at which they are located, the reason and necessity for their occupation, the minimum garrisons necessary for defensive purposes, the additional defensive works that may be required to secure this object, the location of the principal depots, the quantity of supplies, the amount of water transportation under control or that can be secured, the land transportation under control or that can be secured, the land transportation in the hands of the troops or in depots. This information is required immediately, and the first report will be such an approximate estimate as can be furnished at once, the detailed report to be made as soon as the data can be obtained.

2. All troops that can be safely spared at Natchez and Vicksburg will be ordered to proceed without delay to the mouth of Red River, and report to the major-general commanding.

3. All officers now at Vicksburg, Miss., under orders to report to Major-General Canby, will report without delay at the mouth of Red River.

By order of Major General E. R. S. Canby:

C. T. CHRISTENSEN,
Major and Assistant Adjutant-General.

NEW ORLEANS, LA., May 16, 1864.

Major General N. P. BANKS,

Commanding Department of the Gulf:

GENERAL: On arriving here from Fort Jackson on the 5th instant, I found that the communications with your headquarters were cut off, and that no transports were ascending the Red River. After two or three days I went up to Port Hudson to await an opportunity to report to your. After remaining there some days, the conclusion arrived at was that no boats would grew through to Alexandria, and that I could only meet you at Simsport at an uncertain time, when the object for which I was ordered up no longer existed.

This, in connection with my condition as described in my letter to the assistant adjutant-general of May 4, prompted me to return to