proposition from General M. L. Smith to move all who may be unable for land carriage to Mobile, Ala., and Monroe, La. I send Colonel Lagow, of my staff, with the first batch. I have nothing but ordinary river steamers to send the Mobile prisoners in, and it may be unsafe for such steamers to run outside the Balize. In this case, general, may I ask that you will authorize the transfer of these prisoners from the river steamers to suitable vessels for carrying them to Mobile, either by Lake Pontchartrain or directly out of the mouth of the river?

All my force, except a portion of the SEVENTEENTH Army Corps, are with Sherman, after Johnston. As soon as Johnston heard of the surrender of Vicksburg, he commenced a retrograde movement. All his beef-cattle and a large part of his wagon train are understood to have fallen back by way of canton, with orders to push on to the Mobile and Ohio road. This would look as if he had not intended to stop short of that road. He has, however, drawn all his forces, supposed to be about 45,000, inside the fortifications at Jackson, and seems determined to make a stand there.

Sherman has intrenched himself outside, and now has Jackson invested from the river above the city to the river below.

I sent you all the steamers that could be got ready as soon as your requisition was received. More can go now as soon as a convoy can be gotten ready. Any of the steamers going down with wounded men, suitable for your purpose, can be retained if you wish.

I am, general, very respectfully, your obedient servant,

U. S. GRANT.

HDQRS. DEPT. OF THE TENN., Vicksburg, MISS., July 16, 1863.

Major General N. P. BANKS, Comdg. Department of the Gulf:

Your letter of the 12th, received at the hands of Major [G. N.] Lieber, of your staff, is just at hand. I had written a letter for you which will explain the present position of all my forces and the impossibility of sending you any troops just now.

Ten steamers have been sent to Port Hudson, and others are about ready, discharged, to send; also all the coal, forage and barges that can possibly be spared for the present. Coal and forage are looked for daily, however, and, as soon as it arrives, shall be forwarded.

I regret, general, my inability to send you troops, but my letter by Colonel Lagow will explain to you that if I was to send the last man here, it would scarcely make the number you wish.

There is no material change of affairs at Jackson, except the enemy have crossed a large force of cavalry to this side of the river, which was said to be this morning near a train of ordnance stores and provisions going toward Jackson. It would hurt Sherman materially to lose this train. I have not to exceed 1,500 effective cavalry with the whole ofe and all that is now at Jackson.

I am, general, very respectfully, your obedient servant,
U. S. GRANT.

YAZOO EXPEDITION, Yazoo City, July 16, 1863.

General GRANT:

I have just received your order, and will march in one hour, taking with me seven regiments infantry and four pieces artillery, leaving Brigadier-General Orme, with one regiment and five pieces at this