templated to make similar arrangements with the Quartermaster-General to supply the distilleries in Georgia and Alabama so soon as they are ready to commerce operations, and it is recommended that instructions be given that officer to furnish the necessary grain when notified by the Surgeon-General that he is ready to receive it.

The late Secretary of War gave orders to the Quartermaster's Department to furnish all the bureaus of the War Department with cotton goods sufficient to supply their wants. Estimates were accordingly forwarded to the Quartermaster-General by this Bureau, but as yet not a yard has been furnished, and there seems to be no probability of obtaining a supply from this source. Arrangements are now being perfected with a company in South Carolina to sell to the Medical Department, on liberal terms, the entire product of their factory.

There is another subject of great importance to which the attention of the Secretary of War is earnestly invited. The sick and wounded in the large hospitals in and doubt the city, and at certain other places, are now subject to intense suffering in consequence of the failure of the quartermaster's Department to furnish fuel.

At one of these hospitals (Chimborazo) the surgeon in charge for two years furnished his own wood, during which time there was an ample supply. The quartermaster declined to permit this arrangements top continue, and each winter since this hospital has been inadequately supplies.

The surgeon in charge of Jackson Hospital has the offer of a contract for wood to be supplies the hospital; the quartermaster refused to make the contract, stating that he had made ample provision. At Winder hospital the surgeon in charge during the past summer or fall offered, if he was provided with a small number of teams, to supply his own fuel. The quartermaster refused, asserting that he could supply the hospital with the wood required. These cases are mentioned to show that the fuel could have been provided.

A serious difficulty in conducting the hospitals arises from the failure of the Commissary Department to furnish the hospital funds. Very general complaint has been made on this subject-one of importance, as without the hospital fund it is impossible to supply the sick and wounded with necessary supplies. The hospitals have also been embarrassed by the non-payment of the hospital attendants by the Quartermaster's Department.

Attention has been given recently to the importation of supplies through our lines on the Mississippi River and the Gulf border of Mississippi and Alabama. Cotton is exchanged for medical supplies, and in consequence of the recent disaster at Wilmington it is believed that this trade will constitute the chief source of supply. This department has obtained medicines in this manner through the energy of Surg. Richard Potts, who has had exclusive control of the important of such articles as are most needed, until recent orders from the War Department, taking entire control of transactions of this nature, has impaired his usefulness and put a stop in a measure to the supply. The Honorable Secretary's attention is earnestly invited to the necessity of allowing Surgeon Potts (located at Montgomery, Ala.) ample means of obtaining medical supplies in the manner indicated.

The department has on hand of some articles a twelve-months' supply, of others a limited supply, but if allowed to retain its skilled employes at the various laboratories, purveying depots, and distilleries, and to important freely through our lines in Mississippi.