War of the Rebellion: Serial 041 Page 0801 Chapter XXXVIII. CORRESPONDENCE, ETC.-UNION.

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Mr. Gallup, former proprietor of the Brownsville Flag newspaper, goes also.

General Cortes, of the Mexican army, envoy from Juarez to our Government, arrived here last Sunday from Washington, and I send him forward to Brownsville, where his knowledge of Mexican affairs and bitter opposition to the French can hardly fail to be of advantage to the cause, both on our side and on that of Mexico. You will find General Cortes highly intelligent, and devoted to the cause of Mexico against the invaders.

I have just received (11 a. m.) notice from Southwest Pass that the steamers Thomas A. Scott and Northerner have crossed the bar, and are on the way up the river. They will be immediately put in order, loaded, and sent off.

I have succeeded in borrowing from the navy 1,000 tons additional of coal, which relieves us much. The schooners from Pensacola have not yet reported.

All is quiet up the river. I sent a very intelligent spy last week through the country back of Baton Rouge and Port Hudson. He returned last night, having been beyond Clinton east and up to Woodville, where he was held prisoner two days by Scott's cavalry. He estimates the entire force within thirty-six hours' concentration distance of Clinton at 4,000, nearly all mounted; represents that there is no idea of attack on Baton Rouge or Port Hudson.

From General Franklin we have rather interesting news. The rebels seem to be concentrating against him, and it is rumored that Price and the intelligence about the same time that I did here. While neither of us place much reliance in the reports, yet I advised Franklin to concentrate more, and he will fall back on New Iberia and establish a strong line in that neighborhood.

The guerrillas, 75 strong, day before yesterday attacked a steamboat on the Teche, 10 miles below New Iberia. They were driven off by the guard of 30 colored troops of Frisbie's regiment, after a three hours' fight.

I learn that General Vandever is on his way up the river. This makes me more satisfied with the order to Warren. General Washburn thinks highly of General Warren, and is much pleased that he goes.

I have ordered by the Crescent, now nearly loaded, 1,500 sets cavalry equipments, and arms complete (uniform), and all the irregular horse equipments (about 300). Also, arms, accouterments, and ammunition for 2,000 infantry. More will go forward. Fifty thousand feet of lumber has also been ordered.

The district attorney and United States district marshal seem to have gone demented in your absence, and are cutting at everybody. Their last blow at the military was the affair of the Alabama. Since than they have thrown the whole town into confusion by a general seizure of cotton, which had already been overhauled by the internal revenue officials, and more excitement has been created by it than by anything I have seen here.

If much more confusion and trouble should ensue, I think these gentlemen will have to be arrested. Should I, after consultation with General Bowen and Colonel Beckwith, think it necessary to dy anything of the kind, I shall do it as my own act, as senior military officer present here, so that you can repudiate the act on your return or confirm it, as may seem best for the public interest, and no odium or responsibility rest on you.