[Inclosure.]

HEADQUARTERS DISTRICT OF INDIAN TERRITORY,
Fort Towson, May 11, 1864.

The following information was received to-day from Mr. John Toothman, residing at Fort Smith:

FORT SMITH, May 3, 1864.

Brigadier General S. B. MAXEY,

Commanding:

SIR: I will give a correct statement of the number of troops at Fort Smith up to the above date; they are as follows, viz:

9th Kansas Cavalry, commanded by Colonel Lynde ......... 1,000

1st Arkansas Cavalry, commanded by Colonel Bishop ...... 400

13th Kansas Cavalry, commanded by Lieutenant-

Colonel Judson .................................... 300

Negroes and Pin Indians and six pieces artillery ....... 400

________

2,100

The above statement in regard to numbers is correct. Four transports came into Fort Smith. The river in good boating order. It is reported that the First Arkansas is dismounted. Ninth Kansas very well mounted; their horses in good condition. The best information I could get, they called in all the troops on the river, either at Fort Smith or Little Rock. Colonel Bishop commanding post. General Blunt not at Fort Smith, so reported.

They are still fortifying as fast as they can. They have organized three commands of home guards at or near Fort Smith, amounting to about 100 men in all. They are scouting and killing every old man and boy that won't join them. That is the only information that I can give you.

HEADQUARTERS TRANS-MISSISSIPPI DEPARTMENT,
Shreveport, May 12, 1864.

His Excellency JEFFERSON DAVIS,

President Confederate States:

SIR: I would respectfully ask the attention of Your Excellency to the letter written Major Bryan by Judge Gray. The embarrassments of Judge Gray and the financial wants of the department will never be met until he is clothed with the full powers the law authorizes him to be invested with by the Secretary of the Treasury. to prevent dissatisfaction and to insure success in this department, it must be remembered that the physical obstacles closing communication with Richmond virtually make the administrations east and west of the Mississippi separate and distinct. In all legislation the isolated condition of this department must be borne in mind, and as far as is consistent with safety in delegating great powers, it should be made independent and self-sustaining. Judge Gray should not be allowed to resign the trusts confided to him. With his character for integrity and his recognized capacity, he will soon grapple with the difficulties surrounding him. He should have the support of the Secretary of the Treasury and full powers delegated to him. The question of army supplies in this department is involved in difficulties; there is no channel, except the devious one through Mexico, by which they can be introduced. There is no medium by which they can be obtained but cotton.

The failure to legislate in this matter has seriously embarrassed the department, and the cotton office established in Texas threatens to fail because its existence and acts have not been legalized.