No rebels in Martinsburg up to yesterday. Torbert is at Shepherdstown with his cavalry, connecting with my right at this place. No enemy has crossed the Potomac, nor do I believe they will. Averell is on the north side watching the fords above Shepherdstown.

P. H. SHERIDAN,

Major-General.

Major General H. W. HALLECK,

Chief of Staff.

HALLTOWN, W. VA., August 23, 1864 - 10 p. m.

(Received 2 a. m. 24th.)

I have nothing important to communicate to-night. The enemy seem to be in very strong force. I made a reconnaissance on both my right and left flanks this afternoon with cavalry. Found Fitzhugh Lee's cavalry division and infantry on my left flank, on a little stream called Cat-tail Run, Lee's cavalry pickets extending to the Shenandoah. On the right cavalry, infantry, and artillery were found at Flowing spring. No prisoners captured. It is reported by scouts, left behind by me near Winchester, that both Pickett's and Field's division are here. This information is reported by them as coming from a Union man, at whose house they were concealed. They did not see them. Dispatches from City Point contradict this positively. I have made my position here very strong. I do not believe that Pickett's and Field's divisions are here. Will know to-morrow. These various reports are embarrassing. I have pursued a cautions policy and on the defensive. There have been heavy rains in the mountains. Kelley had notified me to look out for the pontoon bridges.

P. H. SHERIDAN,

Major-General.

Major General H. W. HALLECK,

Chief of Staff.

HALLTOWN, W. VA., August 24, 1864 - 9.30 p. m.

(Received 12.30 a. m. 25th.)

I have the honor to report affairs here in about the same condition as yesterday. This morning General Crook made a reconnaissance, driving in the enemy's advance line, punishing him severely, and capturing twenty men belonging to Early's corps. General Emory made a reconnaissance and encountered the enemy in strong force in his front. I will commence operations with the cavalry to-morrow. I had cavalry at Martinsburg last night. No rebels there. The enemy have had a small infantry force there. Nothing has passed through Snicker's Gap. The enemy have had a small infantry force there. Nothing has passed through Snicker's Gap. the enemy appears in doubt as to what he can do. I think I can compel him to abandon his present position. My reports of to-day confirm the constant reports that I have been receiving, namely, that Pickett's and Field's divisions have joined Early.

P. H. SHERIDAN,

Major-General.

Major General H. W. HALLECK,

Chief of Staff.