indeed stated by both, that a transfer of the latter to some other field is advisable. There does not exist that cordiality and mutual confidence and support necessary. It occurred to me that an excange could be advantageously made between Lieutenant-Generals Taylor and Hardee, as soon as the former crosses the Mississippi, which would be agreeable to both parties. Lieutenant General S. D. Lee arrived yesterday and is most cordially welcomed by army and commander. Lieutenant-General Stewart has always advised and now most cordially supports the new policy. With Taylor in Hardee's place this army would be invincible. General Hood has found much to do. For want of administration the army was in sad condition. The return of the 10th of July will show 50,000 men for duty and over 10,000 on extra duty, all able-bodied, and as a general rule the best men in the army. This will in a few days be reduced at least half. Nearly every command in the army had a large excess of staff officers, in spite of the general orders of April. Lieutenant-Colonel Cole, chief of transportation, who is here, informs me that he finds more than 1,000 wagons and 5,000 mules in excess of the number allowed by General Johnston's orders. By correcting this, reducing staff officers and employes, and sending off disabled animals, he will soon reduce the number to be foraged by 10,000. The most of these evils resulted from want of administration, due to the late chief of staff. General Hood has relieved him and assigned Brigadier-General Shoup. This may strike you as inexpedient, but it is evidently for the best. he is decidedly fond of this kind of work and is very efficient at it, whilst he was not satisfied with his position at the head of the artillery and had on my former visit desired a transfer to an infantry command. Of Colonel Beckham's ability to command the artillery I cannot speak with confidence, as I have no personal knowledge. I do not hear a dissenting voice in the army, and many speak of him in the highest terms. General Wheeler has applied for him to command a cavalry brigade, so impressed has he been by his activityand efficiency. So much depends on the perfect organization and efficiency of this army that I have been liberal in approving General Hood's recommendations for promotions, and in some cases have not waited to consult you, but ordered officers here promptly. Major-General Hindman will never go on duty again in this army. To dispose of his case required too much time. The division, one of the largest and finest in the army, was suffering. Major General Patton Anderson was no longer necessary in Florida, desired to come, and was the first choice of the troops, his old command in many fights. I accordingly ordered him on. Brigadier-General Mercer is too old and infirm for the active duties of the campaign; all his commanders considered him in the way, at the same time they agree with me in an indisposition to mortify the valiant and worthy old soldier by bringing him before a board. I accordingly relieved him and sent him home to report to the Adjutant-General by letter. He might be assigned to some post, or to the reserves with General Cobb. By this vacancy, the death of Stevens, a most serious loss, and the sickness and inefficiency, indeed, incapacity of Stowall, who is absent, the Georgia brigades are very badly off. A want of material prevents promotions from the colonels. I therefore ordered Brigadier General Henry R. Jackson from Savannah, where he was on unimportant duty, exercising no legal command. He will arrive to-morro. I trust my action in these cases has met your sanction. In the numerous other nominations great care was taken to secure the best men, and in no case has a promotion been asked where it was not considered necessary for the efficiency of the