the cotton now in Texas, and belonging to the confederate Government, should not be diverted to the same purpose. Of this latter, however, I was not sanguine. Mr. Lincoln's cotton agents will day something on that point. In case of the conversation I drew from Ford that he feared Kirby Smith would be in the way of a settlement, because there was a growing suspicion that he (Smith) was carrying on negotiations with Maximilian. The suspicion was founded upon some newspaper articles of late appearance favoring Imperial annexation, which it was well understood had been written by certain gentlemen on Smith's staff. In answer to a question Ford assured me that if such a sale was attempted he would instantly bring about a counter revolution. General Slaughter was of opinion that the best way for officers in his situation to get honorably back into the Union was to cross the river, conquer tow or three States from the French, and ultimately annex them, with all their inhabitants, to the United States. In short, I think they anticipate such a step as an immediate consequence of peace. Of all these things, however, I will keep You posted.

Very truly, yours,

LEW. WALLACE,

Major- General of Volunteers.

SPECIAL ORDERS,
HDQRS. NORTHERN DIV. OF LOUISIANA, Numbers 40.
Baton Rouge, La., March 14, 1865.

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II. Brigadier- General Davis, commanding District of Baton Rouge, is hereby directed to send the company of the Fourteenth New York Cavalry doing duty in his district to Morganza, La., without delay, with orders to rejoin the regiment to which it belongs. As far as possible all officers and men belonging to the company will accompany it.

By command of Major-General Herron:

WM. H. CLAPP,
Captain and Assistant Adjutant-General.

HDQRS. THIRD DIVISION, SEVENTH ARMY CORPS,

Fort Smith, Ark., March 14, 1865.

Lieutenant Colonel JOHN LEVERING,

Assistant Adjutant-General:

General Canby's circular of February 22, is received and will be complied with. I am very much embarrassed with the very large number of destitute people who are colonizing near the posts of this command. I fear most of these people will be driven from their colonies by rebel bands, who are already making their appearance in considerable numbers. I have reliable information from scouts and deserters that the rebels are concentrating at Doaksville and Boggy Depot under Maxey, Cooper, and Gano, and are coming onto the Arkansas River as soon as grass will subsist their horses. A deserter from Shreveport yesterday reports that the rebels at that point had information that we were receiving immense supplies at this place and that the troops here numbered only 1,500, and that it was reported that as soon as horses were received from Texas a force would be sent to co- operate with Cooper against this place. I believe I can hold Fort Smith against any force