Any trains arriving here from the Rio Grande not loaded had better load lightly with flour for this post and Fort Bowie. I await the arrival of the express from Fort Yuma, due to-morrow, for information with regard to the subsistence stores from California. If they are not already shipped to Fort Yuma, and it is not too late to change, I shall cause a contract to be made with Mr. John Capron to transport the stores here from Guaymas (360 miles), who will take them at the ship's side in the harbor from the block and tackle, and give ample security in San Francisco for the stores and their delivery after thus receiving them, which he will be ready to do as soon as they arrive, and have them here in time, if Government transportation does not too long delay, at 7 cents per pound, payable in gold in San Francisco. This is the cheapest transit for the stores, and the only one which can, I think, secure their delivery in time for our wants.

If this arrangement is made I shall send a special express to California and a deputation to Pesquiera, the governor of Sonora. The efficiency and interests of the military service in this district and the Department of New Mexico demand, in my judgment, that all estimates for funds and supplies should be made and furnished directly to and from the chiefs of the respective departments at department headquarters for all military posts and depots. The condition of things in Arizona is fast approaching those existing in California in 1849 and 1850 with regard to the prices of labor and supplies. The reports of the rich yields of the mines create panics among the people and visions of wealth easily attainable.

Clerks, mechanics, laborers in the employ of the Government here are offered in gold more than they now receive in greenbacks, and, of course, are unwilling to remain. In view of this state of things it is absolutely necessary that the depot quartermaster at this place should have authority to exercise a discretion as to the wages the interests of the public service will justify to be paid Government employes. This authority I have given him until your action can be had in this matter. A copy of my letter to him on this subject is herewith inclosed.

Funds are needed without delay for this depot, and in the absence of coin there should be deposited to the credit of the quartermaster in San Francisco $50,000. Checks on San Francisco are better at this post than our currency, and can be negotiated readily for currency or coin.

General, my letter is long, but its subject-matter is important to your department and to the interest of the general Government.

MARCH 4.

Express from Fort Yuma arrived to-day. Nothing received showing whether the subsistence stores have been shipped.

I send you copies of orders relative to the cavalry ordered here and indorsement on General West's letter. I propose giving directions to send one company of cavalry to Tubac or Reventon. I think it advisable to send the troops away from this town, unless sufficient to protect the depot, should it remain here. Copies of communications to Colonel Babbitt, &c., will explain further my action.

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

N. H. DAVIS,

Assistant Inspector-General, U. S. Army.