HALLTOWN, W. VA., August 27, 1864-2.30 p.m.

(Received 28th.)

Lieutenant-General GRANT:

The enemy fell back from my front last night, taking position at Smithfield and Leetown. Their demonstrations to cross the river up toward Williamsport so far are feints. It is more than probable that your theory about drawing them back will prove itself correct. I will watch closely. I captured 101 prisoners yesterday. Since Kershaw came into the Valley I have captured nearly 500 of his men.

P. H. SHERIDAN,

Major-General.

[AUGUST 27, 1864. - For Sheridan to Halleck, reporting operations, &c., see p. 21.]

WASHINGTON, D. C., August 27, 1864.

Major-General SHERIDAN:

There is a considerable panic in West Virginia from apprehended rebel raids to destroy the Baltimore and Ohio Railroad while Early is holding you in check at Harper's Ferry. We have no troops to send to that department, and must leave its protection entirely to your forces.

H. W. HALLECK,

Major-General and Chief of Staff.

HALLTOWN, W. VA., August 27, 1864-6 p.m.

(Received 8.10 p.m.)

Major General H. W. HALLECK,

Chief of Staff:

I have dismounted the few remaining mounted men of General Duffie's division and will send them to Cumberland to quiet the fears of the peoplel there. No rebels have crossed the river. McCausland and Jackson are here and all the cavalry. The force which Fitz Lee had in vicinity of Williamsport fell back of Martinsburg last night, and the whole rebel army fell back to Smithfield and Leetown. They must cross the river or leave the Valley; the indications are that it will be the latter.

P. H. SHERIDAN,

Major-General.

HARPER'S FERRY, W. VA., August 27, 1864-9 p.m.

(Received 9.30 p.m.)

Honorable EDWIN M. STANTON,

Secretary of War:

I suppose you are fully advised through General Sheridan of the present status. The enemy left our front last night and went in the direction of Bunker Hill. He has drawn in all his detachments, and is