W. T. Sherman.

Major-General commanding.

HEADQUARTERS FIFTH DIVISION MEMPHIS, TENNESSEE, August 26,1862

Major-General grant, Corinth, Mississippi.

Sir:  In pursuance of your request that I should keep you advised of matters of interest here, in addition to the purely official matters, I now write.

I dispatched promptly the thirteen companies of cavalry, nine of Fourth Illinois, and four of Eleventh Illinois, to their respective destinations, punctually on the 23d instant, although the order was only received on the 22d.  I received at the same time, from Colonel Dickey, the notice that the bridge over Hatchie was burned, and therefore I prescribed their order of march via Bolivar.  They started at 12 m. of the 23d, and I have no news of them since.  None of the cavalry ordered to me is yet heard from.

The guerrillas have destroyed several bridges over Wolf Creek; one at Raleigh, on the road by which I had prescribed trade and travel to and from the city.  I have a strong guard at the lower bridge over Wolf River, by which we can reach the country to the north of that stream; but, as the Confederates have burned their own bridges, I will hold them to my order, and allow no trade over any other road than the one prescribed, using the lower or Randolph road for our own convenience.  I am still satisfied there is no large force of rebels anywhere in the neighborhood.  All the navy gunboats are below except the St. Louis, which lies off the city.  When Commodore Davis passes down from Cairo, I will try to see him, and get him to exchange the St. Louis for a fleeter boat not iron-clad; one that can move up and down the river, to break up ferry-boats and canoes, and to prevent all passing across the river.  Of course, in spite of all our efforts, smuggling is carried on.  We occasionally make hauls of clothing, gold-lace, buttons, etc., but I am satisfied that salt and arms are got to the interior somehow.  I have addressed the Board of Trade a letter on this point, which will enable us to control it better.

You may have been troubled at hearing reports of drunkenness here.  There was some after pay-day, but generally all is as quiet and orderly as possible.  I traverse the city every day and night, and assert that Memphis is and has been as orderly a city as St. Louis, Cincinnati, or New York.

Before the city authorities undertook to license saloons, there was as much whiskey here as now, and it would take all my command as customhouse inspectors, to break open all the parcels and packages containing liquor.  I can destroy all groggeries and shops where soldiers get liquor just as we would in St. Louis.