to apprise E[arly] that he may be on his guard. The troops referred to will have passed the mouth of the Potomac to-day. There are letters from nearly all the corps of Grant's army published in the Herald of the 4th, showing they were here as late as the 2nd.

Most respectfully, your obedient servant,

R. E. LEE,

General.

JULY 7, 1864.

The PRESIDENT:

The forces from Yorktown have been withdrawn, with all the available forces on the Peninsula, amounting to a division, and forwarded to Washington, supposed to be for the purpose of defending that place against General Early. Grant is withdrawing his forces from City Point and crossing them to Bermuda Hundred. Has also received about 10,000 re-enforcements from down South, supposed to be a portion of Banks' command. The siege guns have been moved from Yorktown, and a large train of commissaries were carried to Fortress Monroe. Large numbers of sick and wounded are constantly being carried down James River. A great many of Grant's forces are deserting, and state that his army is completely demoralized.

J. F. MOORE,

Signal Officer.

TORPEDO BUREAU,

Richmond, Va., July 7, 1864.

His Excellency JEFFERSON DAVIS,

President of the Confederate States of America:

SIR: Pursuant to instructions I have the honor to state that two light boats, about twenty-five feet long each, such as could be carried on a wagon truck, four wagons to carry the boats and torpedoes, and the inclosed detail of men, adepts in this business, with twelve oarsmen, are required to prosecute successfully our enterprise against the enemy in James River.

I have the honor to be, very respectfully, your most obedient servant,

G. J. RAINS,

Brigadier-General, Superintendent.

[Indorsement.]

SECRETARY OF WAR:

It is important that General Rains should have the requisite means for the proposed operations. Please confer with Secretary of Navy as to boats and oarsmen.

J. D.

SPECIAL ORDERS,
ADJT. AND INSP. GENERAL'S OFFICE,

Numbers 158.
Richmond, July 7, 1864.

* * * * *

XXI. Men detailed in the city of Richmond will, from the date of this order, and until further orders, be paid $2 per day and allowed