HDQRS. DEPARTMENT OF THE SHENANDOAH,
July 31, 1861.

Colonel E. D TOWNSEND, Asst. Adjt. General, Washington, D. C.:

DEAR SIR: It becomes necessary, with the increase of our stores at this post and the probabilities of the removal of supplies from Hagerstown, to obtain a secure position for a general depot for the army supplies and for hospital uses. I believe, from careful inquiry and examination, that the city of Frederick offers more advantages than any other point. It is equally central for all points (Baltimore or Harper's Ferry); is sufficiently removed from the river to be safe from marauding parties, and has the best railroad facilities in every direction. The presence of a regiment there would have a most excellent effect.

At Sandy Hook there are not buildings sufficient, and the strip of land between the heights and river has not capacity, being in part occupied by canal, railroad, and highway, to admit of the erection of proper structures. It is also greatly exposed from the heights on the Virginia side.

At Frederick there are sufficient room, buildings, protection, &c. As it has recently been embraced in the Department of Washington, it becomes necessary that we should obtain consent of the Department for the transfer.

I am, very respectfully, your obedient servant,

NATH. P. BANKS,

Major-General, Commanding, &c.

HEADQUARTERS DEPARTMENT OF MARYLAND,
Fort McHenry, July 31, 1861.

Honorable SIMON CAMERON, Secretary of War:

SIR: Mr. John T. Sangston, of Caroline County, is desirous that a company of Union men in that county, who have been drilling for several months, should be armed. Governor Hicks thinks it important, and I concur with him. If I had the authority to arm eight or ten companies on the Eastern Shore of Maryland, I believe they could take care of themselves and do much to keep the secessionists in order. I think it proper to add that an active trade with the rebels in Virginia is kept up from Salisbury, the southern terminus of the Delaware Railroad. As soon as there is a disposable force, it would be well to place a regiment there.

There is a camp of secessionists, variously estimated from one thousand to three thousand men, at Eastville, in Northampton, the lower country on the Eastern Shore of Virginia. This is not in my department, but I would suggest that three or four regiments should be sent there as soon as we can spare them and break up this camp. The exhibition of such a force and the destruction of the secession camp would have a salutary effect throughtou the Eastern Shore of Maryland and Virginia.

I have the honor to be, respectfully, your,

JOHN A. DIX,

Major-General, Commanding.