War of the Rebellion: Serial 001 Page 0606 OPERATIONS IN TEXAS AND NEW MEXICO. Chapter VII.

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SANTA FE, N. MEX., June 11, 1861.

The ASSISTANT ADJUTANT-GENERAL,

Headquarters of the Army, City of New York:

SIR: I have the honor to report that Colonel Loring, of the Regiment of Mounted Riflemen, in anticipation of the acceptance of his resignation, left his place to-day, after placing me in the general charge of the affairs of the department and in the immediate command of the Northern District. he has not yet formally relinquished the command, and will await at Fort Fillmore the action of the President upon the tender of his resignation.

I have no reason to apprehend any immediate political trouble in this department, and in the future this will be contingent upon the action of Missouri, with which he people of this Territory are more intimately connected in their commercial relations and associations than with Texas or the neighboring States of Mexico.

The disaffection in Arizona is, in my judgment, confined to a small portion of the people of that Territory, and the disaffected ar believed to be without the means of effecting anything against the Government, as they have recently and repeatedly applied for the assistance of the troops in settling their local difficulties. A demonstrations against arizona by the people of Texas may be apprehended, and, although nothing is known here of any contemplated movement in that direction, I will take measures to increase materially the force at Fort Fillmore by transferring a portion of the troops from the interior posts, and, if possible, an additional mounted force from the upper country.

The long-deferred payment of the troops in Arizona, aided by the mischievous efforts of some individuals in that country, have created some dissatisfaction among the troops at some of the posts; but this will be removed at an early period by the payment of a portion of the arrearage now due. The funds in the hands of the paymasters will not be sufficient to pay the whole amount, but will leave from four to six months still unpaid at the posts in Arizona. It is hoped that a sufficiency of funds to meet these arrearage will soon be received. Major Reynolds will pay the troops at Fort Fillmore; Major Seward those at Forts McLane, Breckinridge, and Buchanan; and Captain Wainwright, Ordnance Department, those at Fort Fauntleroy.

Major Reynolds, I think, contemplates resigning, which will leave but one paymaster, Major Seward (now under orders for Washington), in the department. It is respectfully recommended that who or three additional paymasters be sent out as soon as practicable.

I think it proper to refer to the disabled condition of the mounted companies from the want of horses, and of the Quartermaster's Department from the want of draught animals. The past two years have been seasons of great scarcity, almost fame, throughout the whole of New Mexico. the scarcity of water, grass, and forage, and constant hard service have destroyed a large proportion of the animals in the service of the Government. The same causes have operated to reduce the number in the possession of private individuals, so that the supply necessary to place the troops in this department in an effective condition cannot be procured here, and I respectfully recommend that the estimates heretofore made for remounts and for draught animals may be filled from the East.

Very respectfully, sir, your obedient servant,

ED. R. S. CANBY,

Major, Tenth Infantry, and Bvt. Lt. Colonel, Commanding