CITY POINT, VA., August 19, 1864-8 p.m. [Received 2.50 p.m. 20th.]

Major-General HALLECK,

Washington, D. C.:

Fitz Lee's cavalry and Kershaw's division, of Longstreet's corps, have gone from here to the Valley. No other troops have gone, and with the present distribution of troops here the enemy is much more likely to withdraw from the Valley than to send more there. The enemy's loss here this week in killed, wounded, and captured cannot fall much short of 4,000, if does not exceed this number. They are now so extended that they are forced to keep every man on the watch, and from accounts of prisoners are running their men to death shifting them from one place to another. Sheridan has a force about equal to the enemy, and if the latter advances will have him at an advantage.

U. S. GRANT,

Lieutenant-General.

CHARLESTOWN, August 19, 1864-10.30 p.m.

Lieutenant-General GRANT:

All the information received to-day shows a large concentration of the enemy at Winchester. I receive constant reports of the passage of troops across to this Valley from Culpeper. I have taken the defensive until their strength is more fully developed. They have made no attempt to pass down the Valley to Martinsburg, which I hold with a small force of cavalry. If they cross the Potomac they expose their rear and I will pitch into them. I destroyed everything that was eatable south of Winchester, and they will have to haul supplies from well up toward Staunton. Our loss at Winchester will be about 200. Guerrillas give me great annoyance, but I am quietly disposing of numbers of them. The enemy appears to be uncertain as to what course to pursue. The intention so far as I can learn was to send a column direct from Culpeper to the Potomac and Early to advance at the same time from Martinsburg. This was frustrated by Early being compelled to fall back and your operations on the north side of the James. I still think that two divisions of infantry have come here and Fitz Lee's cavalry. My force will have to be weakened to supply the place of the 100-days' men serving at Harper's Ferry and in West Virginia. Grover has joined me. I now can calculate on bringing into action about 22,000 or 23,000 infantry and about 8,000 cavalry.

Respectfully,

P. H. SHERIDAN,

Major-General.

WASHINGTON, D. C., August 19, 1864-10 a.m. [Via Harper's Ferry.]

Major-General SHERIDAN:

A scout states very positively that Longstreet's corps and Fitzhugh Lee's cavalry have passed through Culpeper to join Early. He says that Mosby told him that he had captured one of your trains of seventy or eighty wagons, with 500 mules and horses. Is that true?

H. W. HALLECK,

Major-General and Chief of Staff.