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. The newspapers are accusing me of cruelty to the sick; as base a charge as was ever made. I would not let the Sanitary Committee carry off a boat-load of sick, because I have no right to. We have good hospitals here, and plenty of them. Our regimental hospitals are in the camps of the men, and the sick do much better there than in the general hospitals; so say my division surgeon and the regimental surgeons. The civilian doctors would, if permitted, take away our entire command. General Curtis sends his sick up here, but usually no nurses; and it is not right that nurses should be taken from my command for his sick. I think that, when we are endeavoring to raise soldiers and to instruct them, it is bad policy to keep them at hospitals as attendants and nurses. I send you Dr. Derby's acknowledgment that he gave the leave of absence of which he was charged. I have placed him in arrest, in obedience to General Halleck's orders, but he remains in charge of the Overton Hospital, which is not full of patients. The State Hospital also is not full, and I cannot imagine what Dr. Derby wants with the Female Academy on Vance Street. I will see him again, and now that he is the chief at Overton Hospital, I think he will not want the academy. Still, if he does, under your orders I will cause it to be vacated by the children and Sisters of Mercy. They have just advertised for more scholars, and will be sadly disappointed. If, however, this building or any other be needed for a hospital, it must be taken; but really, in my heart, I do not see what possible chance there is, under present circumstances, of filling with patients the two large hospitals now in use, besides the one asked for. I may, however, be mistaken in the particular building asked for by Dr. Derby, and will go myself to see. The fort is progressing well, Captain Jenney having arrived. Sixteen heavy guns are received, with a large amount of shot and shell, but the platforms are not yet ready; still, if occasion should arise for dispatch, I can put a larger force to work. Captain Prime, when here, advised that the work should proceed regularly under the proper engineer officers and laborers. I am, etc., W. T. SHERMAN, Major-General commanding. HEADQUARTERS FIFTH DIVISION MEMPHIS, TENNESSEE, September 4, 1862 Colonel J. C, KELTON, Assistant Adjutant-General, Headquarters of the army, Washington, D. C.