CUMBERLAND, January 18, 1864-9 p. m.

Colonel MULLIGAN,

New Creek:

Your telegram received. I do not credit the report of a large force being encamped at Lost River. My information is that Gilmor's battalion is on Baker's Creek, west of Strasburg. The Seventh Virginia Cavalry at Mount Jackson, and Early at Harrisonburg. There is in the Shenandoah Valley a force of 8,000 or 10,000 men, undoubtedly, but will General Early detach from this force one-half of it and sen into the South Branch Valley? Would it not be well to send what available cavalry you have to make a scout to Moorefield and neighborhood before we determine the question of the withdrawal of the troops?

B. F. KELLEY,

Brigadier-General.

CUMBERLAND, January 18, 1864-1 p. m.

Brigadier-General AVERELL,

Martinsburg:

It is reported that about 350 cavalry are between Wardensville and Moorefield. If this is reliable they are undoubtedly lying in wait for Thoburn's trains. Order one of your battalions to be held in readiness to move at a moment's notice to cut them off if I find it is so.

B. F. KELLEY,

Brigadier-General.

HDQRS. FOURTH DIVISION, DEPT. OF WEST VIRGINIA,
Martinsburg, January 18, 1864.

Brigadier General B. F. KELLEY,

Commanding Department, Cumberland:

Your dispatch received. It would be impossible to cut off a party between Wardensville and Moorefield if it was on the alert, as it would be very difficult now to cross Lost River. They could get away toward Orkney Springs or Columbia Furnace or Devil's Hole, and the party going after them ould be liable to be cut off. I scarcely credit the report, as forage is very scarce between Wardensville and Moorefield.

WM. W. AVERELL,

Brigadier-General.

CONFIDENTIAL.] HDQRS. MIL. DIV. OF THE MISSISSIPPI,

Nashville, Tenn., January 19, 1864.

Major General H. W. HALLECK,

General-in-Chief of the Army, Washington, D. C.:

GENERAL: I would respectfully suggest whether an abandonment of all previously attempted lines to Richmond is not advisable, and in lieu of these one be taken farther south. I would suggest Raleigh, N. C., as the objective point and Suffolk as the starting point. Raleigh once secured, I would make New Berne the base of supplies until Wilmington is secured.