U. S. GRANT, Lieutenant-General.

HEADQUARTERS MILITARY DIVISION OF THE MISSISSIPPI
SAVANNAH, GEORGIA, December 24, 1864.

Lieutenant-General U. S. GRANT, City Point, Virginia.

GENERAL:  Your letter of December 18th is just received.  I feel very much gratified at receiving the handsome commendation you pay my army.  I will, in general orders, convey to the officers and men the substance of your note.

I am also pleased that you have modified your former orders, for I feared that the transportation by sea would very much disturb the unity and morale of my army, now so perfect.

The occupation of Savannah, which I have heretofore reported, completes the first part of our game, and fulfills a great part of your instructions; and we are now engaged in dismantling the rebel forts which bear upon the sea-channels, and transferring the heavy ordnance and ammunition to Fort Pulaski and Hilton Head, where they can be more easily guarded than if left in the city.

The rebel inner lines are well adapted to our purpose, and with slight modifications can be held by a comparatively small force; and in about ten days I expect to be ready to sally forth again.  I feel no doubt whatever as to our future plans.  I have thought them over so long and well that they appear as clear as daylight.  I left Augusta untouched on purpose, because the enemy will be in doubt as to my objective point, after we cross the Savannah River, whether it be Augusta or Charleston, and will naturally divide his forces.  I will then move either on Branchville or Colombia, by any curved line that gives us the best supplies, breaking up in our course as much railroad as possible; then, ignoring Charleston and Augusta both, I would occupy Columbia and Camden, pausing there long enough to observe the effect.  I would then strike for the Charleston & Wilmington Railroad, somewhere between the Santee and Cape Fear Rivers, and, if possible, communicate with the fleet under Admiral Dahlgren (whom I find a most agreeable gentleman, accommodating himself to our wishes and plans).  Then I would favor an attack on Wilmington, in the belief that Porter and Butler will fail in their present undertaking.  Charleston is now a mere desolated wreck, and is hardly worth the time it would take to starve it out.  Still, I am aware that, historically and politically, much importance is attached to the place, and it may be that, apart from its military importance, both you and the Administration may prefer I should give it more attention; and it would be well for you to give me some general idea on that subject, for otherwise I would treat it as I have expressed, as a point of little importance, after all its railroads leading into the interior have been destroyed or occupied by us.  But, on the hypothesis of ignoring Charleston and taking Wilmington, I would then favor a movement direct on Raleigh.  The game is then up with