HEADQUARTERS U. S. FORCES,
Helena, October 29, 1862.

H. Z. CURTIS, Assistant Adjutant-General.

MAJOR: The steamer Little Rock arrived here on the night of the 28th under a flag of truce with the inclosed lists* of Federal prisoners for exchange. We made but few exchanges from the fact that we had very few rebel prisoners here and Major Gallagher would not recognize the indebtedness of twenty-five prisoners which we have claimed to be due. Inclosed I also send General Holmes' letter, with a copy of my reply. As there are still here seventy-one of our prisoners unexchanged I would be pleased if you would directed me what to do with them. If they are sent North we will probably in all probability never see them again. I would suggest that you send prisoners from Saint Louis belonging to General Holmes' department on a light-draught steamer, so that we can make the exchange and fully reconnoiter the Arkansas River. I have but little doubt now that the strongest rebel force at any one point in this State is at Arkansas Post. Reliable information places their number at 12,000 at that point. We had a glorious day on yesterday in celebrating the completion of Fort Curtis. There are but few rebels in Little Rock, and I am induced to think that several regiments have gone to Vicksburg in anticipation of an attack on that point. The Twenty-fourth and Twenty-sixth Regiments of Iowa Infantry have arrived and are in good health and fine spirits. The Iowa regiments are anxious to have an Iowa brigade, and unless Major-General Curtis is opposed to it I believe it would be for the good of the service.

I have the honor to be, your most obedient servant,

ALVIN P. HOVEY,

Brigadier-General, Commanding.

[Inclosure Numbers 1.]

HEADQUARTERS TRANS-MISSISSIPPI DEPARTMENT,
Little Rock, Ark., October 21, 1862.

Brigadier General E. A. CARR, U. S. Army,

Commanding U. S. Forces, Helena, Ark.

GENERAL: Your communication of the 15th instant is received. I accept your disclaimer of the outrages perpetrated by the Federal troops otherwise than in violation of their orders, and I also accept your definition of guerrilla as it embraces none that are known to any military organization of the Confederate States. In the spirit of humanity that dictated your letter and believing that as you participated in the entire campaign in Arkansas you express the opinions and wishes of your Government I have rescinded my order relative to the Federal prisoners in my possession and will permit the cartel arrangement between our Governments to continue in force. I therefore send to you under a flag of truce all the Federal prisoners now in my hands, whom I respectfully request you will cause to be exchanged for Lieutenant-Colonel Giddings and an equivalent of our prisoners from this department now in the hands of your Government. I will cause a strict investigation to be had of your charge that two of your men were murdered after being taken prisoners by men of the Twenty-first Regiment Texas Cavalry, of which I had heard nothing. I sincerely hope it will be found to be groundless, and should feel confident that such was the case but that a precisely similar charge was made against a party of your men toward one of their prisoners a few days

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*Omitted.

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