[Inclosure No. 1.] STATE OF VERMONT, EXECUTIVE CHAMBER, Montpelier, October 12, 1863.

Colonel JAMES B. FRY,

Provost-Marshal-General:

DEAR SIR: Yours of 8th instant, addressed to my predecessor, has been handed to me. I have also seen the letter addressed to you by Adjutant-General Washburn. The subject referred to in his communication I regard of great importance both to State and the Government, and fully concurring as I do with him in the views expressed, I beg to urge the necessity of complying with his suggestions if we would avoid the danger of discouragements which I am sure would follow if the request is denied. The officers for recruiting in these veteran regiments are now already established and recruits are coming in, slowly to be sure, yet each day thus far has shown a favorable increase, and I am happy to say that there is every sign of encouragement that we shall be able to fill the one regiment to which our efforts are now being directed within the limited time if we can be permitted to place the State upon the same footing as to bounties with the General Government.

The object of the Government is of course to obtain the requisite number of men, and whether this is accomplished through the States or by the efforts of the General Government, or both, I presume, is matter of little moment. There are now already recruited toward the first regiment veterans between 200 and 300 men, and efforts have been made throughout the State to stimulate enlistments with a good degree of success thus far, and I should regret extremely to see these rendered nugatory by the proposed action of the Department in refusing to give the State the same bounties as are offered to those raised by the General Government. The effect of this would be to discourage enlistments, and I very much doubt if any considerable portion of those now enlisted under the State authority would re-enlist if this organization were broken up and the men disbanded. Under these circumstances, therefore, I hope the Department will authorize the State to offer the same bounties for new recruits that are offered by the General Government, at least until the two or three veteran regiments are raised that are now in contemplation.

Will you please advise me by telegraph, on receipt of this, your decision?

I am, very respectfully, your obedient servant,

J. GREGORY SMITH.

[Inclosure No. 2.] STATE OF VERMONT, ADJUTANT AND INSPECTOR GENERAL'S OFFICE, Woodstock, October 10, 1863.

Colonel JAMES B. FRY,

Provost-Marshal-General United States, Washington, D. C.:

SIR: Yours of the 8th instant addressed to Governor Holbrook, who has now retired from office, has been received. Your letter of the same date addressed to Brigadier General T. G. Pitcher, assistant provost-marshal-general for Vermont, has also been communicated to me.

I entirely concur in your views in respect to the importance of filling the old regiments and shall co-operate with your officers in this