The report of Captain Warren Peck, a copy of which I have the honor to enclose, gives a very fair view of what the result would be, were the officers of this bureau removed. When I took charge here I found a perfect state of terror among whites and blacks; but now that officers are thickly distributed over the district, complaints are few, and the laborers are well, and, so far as possible, comfortably fixed for this year. Out of a negro population of over 75,000, only 649 receive rations from the government as destitutes. I feel no hesitation in saying that it is imperatively necessary to give the system of free labor a fair trial, and to secure to the freedmen all the benefits contemplated by the emancipation proclamation; that officers or agents should be retained whose duty it is to look after the interests of this large class of people, and see that they are gradually accustomed to manage their own business and protect their own interests. I have the honor to be, general, very respectfully, your obedient servant, GEORGE D. REYNOLDS, _Major 6th United States Colored Heavy Artillery, and Acting Assistant Comm. Bureau of Freedmen, &c., Southern Dist. of Mississippi_. Major General CARL SCHURZ. No. 42. HEADQUARTERS NORTHERN DISTRICT OF MISSISSIPPI, _Jackson, Miss., August_ 21, 1865. Captain: I have the honor to enclose copies of a notice to form companies in this and a neighboring county, and of my letter to Governor Sharkey in reference to this matter. In a discussion which I had with the governor he told me that it was his intention to raise a company of militia in every county of the State, in accordance with the militia law of Mississippi, mainly for the purpose of suppressing any acts of violence which the negroes may attempt to commit during next winter. I called the attention of the governor to the fact that the docket, until this day, exhibits only the name of white criminals, and that all information proves that almost all the cases of robbery, murder, &c., were brought in connexion with young men in the country lately returned from military service--just the very same men who, in all probability, would join the intended meetings to form companies of militia. The result of the organization of such companies, while the State is occupied by United States troops, mostly colored, cannot be doubted--the heterogeneous element must clash and bring about a state of affairs which certainly would prove detrimental to the peace and best interests of the State. Governor Sharkey tells me that he has applied to President Johnson for authority to raise the militia, and that he would inform me of any decision he may receive from Washington; in the mean time I consider it my duty to take action as communicated in my letter, and respectfully request the approval of the major general commanding department. Very respectfully, your obedient servant, P. JOS. OSTERHAUS, _Major General Volunteers_.