of California. This is a report of great importance, as showing how much cheaper supplies can be gotten for Arizona, and the Mesilla Valley via Libertad than from Indianola, Tex., or from Kansas City. The report is of still greater importance when considered with reference to the political and commercial geography of our country. It shows how practicable it is to make a railroad from the Rio Grande to the Gulf of California, and thus to the Pacific. It shows why the Southern Confederacy wish to hold the Territory of Arizona, and wish to have a part of the State of Sonora. It shows how very important it is for us to purchase from Mexico before it become a possession of, say, France, a strip of territory which will give us so fine and accessible a port on the Gulf of California. When the vast mineral resources of Arizona and of the Pinos Altos region have become better known (and not year will pass away before their importance will before their importance will be appreciated), the the Government will see that a port on the Gulf of California should be ours at any cost.

I am, general, very respectfully,

JAMES H. CARLETON,

Brigadier-General, Commanding.

[Inclosure.]

TUSCON, ARIZ, TER., November 12, 1862.

Colonel RICHARD C. DRUM, U. S. Army,

A. A. G., Hdqrs. Dept. of the Pacific, San Francisco, Cal.:

COLONEL: On the 26th of September last I received instructions as follows, viz:

HEADQUARTERS DEPARTMENT OF THE PACIFIC,
July 26, 1862.

General Carleton will send Major Fergusson with a sufficient escort to examine the country, its resources, and the route between Tuscon and Lobos Bay (place known as Libertad) via Arivaca and Altar or Cahorca.

By order of Brigadier-General Wright:

RICHD. C. DRUM,

Assistant Adjutant-General.

GENERAL ORDERS,
HEADQUARTERS DISTRICT OF ARIZONA, Numbers 20.
Las Cruses, N. Mex., September 5, 1862.

* * * *

Major Fergusson will proceed via Arivaca and Altar or Cahorca without delay to a point at or near Lobos Bay, on the Gulf of California, known as Libertad, and examine the intermediate country with a view to the transportation of supplies. He will ascertain the resources of the country on the route; also the availability of Lobos Bay as a port where military supplies destined for Arizona may be landed. Major Fergusson will then repair in person to the headquarters of the District of Arizona and make a report of his examination of the port of Lobos route to the general commanding the Column from California.

* * * *

By command of Brigadier-General Carleton:

BEN. C. CUTLER,

First Lieutenant, First Infantry California Volunteers, Actg. Asst. Adjt. General

There being no cavalry at the disposal of the commanding officer at Tuscon for an escort, I was delay until the 10th of October from proceeding to carry the above instructions into effect. On the afternoon of that day I started with an escort of seventeen men of Company E, First Cavalry California Volunteers, commanded by First Lieutenant C. P. Nichols, of the same regiment, en route to the port of La Libertad