CAMP SECOND BATTALION, NINTH IOWA CAVALRY, Ten miles south of Searcy, Ark., June 16, 1864-6 a. m. (Via Brownsville.)

Captain C. H. DYER,

Assistant Adjutant-General, Little Rock, Ark.:

SIR: I arrived here last night. Shelby is reported near Jackson-port. Thirty of Kirke's and Shelby's men passed here yesterday morning going toward West Point. Chased 10 of McCoy's band out of Austin as we came through. Will reach Searcy and scout some in that vicinity to-day.

Respectfully, your obedient servant,

WILLIAM DRUMMOND,

Major, Commanding, &c.

HEADQUARTERS DISTRICT OF EASTERN ARKANSAS, Helena, Ark., June 16, 1864.

Major General E. R. S. CANBY,
Commanding Division of West Mississippi:

SIR: When General Washburn took command at Memphis he ordered all the cotton-trading boats out of the river, above the mount of White River. I had previously arrested and sent back to Memphis thirteen boats, with charges, to General Hurlbut, but they have all escaped punishment. A short time ago I found the Panola at the month of White River with permits to take at Napoleon. I ordered her to Memphis. To-day she arrived here with clearance from Memphis, to buy cotton in five counties of Mississippi, and her master, William Fletcher, had twelve permits to buy 500 bales, in amounts of from 20 to 100 bales each.

The clearance had no military authority. I sent the boat back. It is evident she intended to anchor in the river, as has been the practice, and remain out a long time, trade with the rebels when opportunity served, and be at all times liable to capture by the enemy. I consider the Treasury agents at Memphis are exceeding their authority and doing great injury, almost treason, in allowing trade with the enemy on the river at this case. The Panola was the first boat allowed to go on a cotton expedition since the publication of the inclosed order, paragraph 4. I respectfully suggest that you issue your order prohibiting all trade with the enemy. The better than blockade-running.

I have the honor to be, your obedient servant,

N. B. BUFORD,

Brigadier-General, Commanding.

[Inclosure.]

GENERAL ORDERS,
HDQRS. DIST. OF EASTERN ARKANSAS, Numbers 37.
Helena, Ark., June 11, 1864.

I. It being notorious that the enemies of the United States have been in the habit of getting supplies from the trade stores at the month of White River, to prevent them in future the lines of the camp at that post are closed.

II. No intercourse with the surrounding country on either side of the Mississippi River will be permitted, except with persons of known loyalty to the Government and policy of the United Stated.