CITY POINT, August 16, 1864-1.30 p.m [Received 6.30 a.m.17th.]

Major-General SHERIDAN,

Commanding, &c., Winchester, Va.:

Fitz Lee's division is not in the Valley. We took quite a number of prisoners from it yesterday north of the James. Kershaw's division has gone to the Valley, and probably two brigades of Wilcox's division. Some cavalry has gone, but I do not know whose. I would not advise an attack on Early in an intrenched position, but would watch him closely with the cavalry, and if he attempts to move north follow him. The 100-days' men will have to be discharged at the expiration of their time unless there is a pressing necessity for detaining them for a few days on account of immediate active hostilities. The families of most of Mosby's men are known, and can be collected. I think they should be taken and kept at Fort McHenry, or some secure place, as hostages for the good conduct of Mosby and his men. Where any of Mosby's men are caught hang them without trial.

U. S. GRANT,

Lieutenant-General.

CITY POINT, August 16, 1864-3.30 p.m. [Received 8 p.m. 18th.]

Major-General SHERIDAN,

Commanding,&c., Winchester, Va.:

If you can possibly spare a division of cavalry, send them through Loudoun County, to destroy and carry off the crops, animals, negroes, and all men under fifty years of age capable of bearing arms. In this way you will get many of Mosby's men. All male citizens under fifty can fairly be held as prisoners of war, and not as citizen prisoners. If not already soldiers, they will be made so the moment the rebel army gets hold of them.

U. S. GRANT,

Lieutenant-General.

CEDAR CREEK, VA., August 16, 1864.

Major-General HALLECK,

Chief of Staff:

Last night I moved General Emory back to Winchester, and to-day will move Generals Wright and Crook back to this point. I will take position at or near Berryville, holding Snicker's Gap. The enemy extend across the Valley from Fisher's Hill to North Mountain. Lee's cavalry and Imboden are at Front Royal. I have maintained the defensive since the receipt of General Grant's telegram, but cannot stay at this point. I have had nothing later from you than your telegram of 13th notifying me of General Wilson and Grover being en route via Snicker's Gap. Nothing from General Grant later than 12th. There has been some little skirmishing about possession of a hill on my skirmish line, but of not much moment. Loss about thirty or forty wounded.

P. H. SHERIDAN,

Major-General, Commanding.