Early's broken army practically made no halt in its retreat after the battle of Cedar-Creek until it reached New Market, though at Fisher's Hill was left a small rear-guard of cavalry, which hastily decamped, however, when charged by Gibbs's brigade on the morning of the 20th. Between the date of his signal defeat and the 11th of November, the enemy's scattered forces had sufficiently reorganized to permit his again making a reconnoissance in the valley as far north as Cedar Creek, my army having meanwhile withdrawn to Kernstown, where it had been finally decided that a defensive line should be held to enable me to detach troops to General Grant, and where, by reconstructing the Winchester and Potomac railroad from Stephenson's depot to Harper's Ferry, my command might be more readily, supplied. Early's reconnoissance north of Cedar Creek ended in a rapid withdrawal of his infantry after feeling my front, and with the usual ill-fortune to his cavalry; Merritt and Custer driving Rosser and Lomax with ease across Cedar Creek on the Middle and Back roads, while Powell's cavalry struck McCausland near Stony Point, and after capturing two pieces of artillery and about three hundred officers and men chased him into the Luray Valley.
Early got back to New Market on the 14th of November, and, from lack of subsistence, being unable to continue demonstrations to prevent my reinforcement of General Grant, began himself to detach to General Lee by returning Kershaw's division to Petersburg, as was definitely ascertained by Torbert in a reconnoissance to Mount Jackson. At this time General Grant wished me to send him the Sixth Corps, and it was got ready for the purpose, but when I informed him that Torbert's reconnoissance had developed the fact that Early still retained four divisions of infantry and one of cavalry, it was decided, on my suggestion, to let the Sixth Corps remain till the season should be a little further advanced, when the inclemency of the weather would preclude infantry campaigning. These conditions came about early in December, and by the middle of the month the whole of the Sixth Corps was at Petersburg; simultaneously with its transfer to that line Early sending his Second Corps to Lee.
During the entire campaign I had been annoyed by guerrilla bands under such partisan chiefs as Mosby, White, Gilmore, McNeil, and others, and this had considerably depleted my line-of-battle strength, necessitating as it did large, escorts for my supply-trains. The most redoubtable of these leaders was Mosby, whose force was made up from the country around Upperville, east of the Blue Ridge, to which section he always fled for a hiding-place when he scented danger. I had not directed any special operations against these partisans while the campaign was active, but as Mosby's men had lately killed, within my lines, my chief quartermaster, Colonel Tolles, and Medical Inspector Ohlenchlager, I concluded to devote particular attention to these "irregulars" during the lull that now occurred; so on the 28th of November, I directed General Merritt to march to the Loudoun Valley and operate against Mosby, taking care to clear the country of forage and subsistence, so as to prevent the guerrillas from being harbored there in the future their destruction or capture being well-nigh impossible, on account of their intimate knowledge of the mountain region. Merritt carried out his instructions with his usual sagacity and thoroughness, sweeping widely over each side of his general line of march with flankers, who burned the grain and brought in large herds of cattle, hogs and sheep, which were issued to the troops.
While Merritt was engaged in this service the Baltimore and Ohio railroad once more received the attention of the enemy; Rosser, with two brigades of cavalry, crossing the Great North Mountain, capturing the post of New Creek, with about five hundred prisoners and seven guns, destroying all the supplies of the garrison, and breaking up the railroad track. This slight success of the Confederates in West Virginia, and the intelligence that they were contemplating further raids in that section, led me to send, Crook there with one division, his other troops going to City Point; and, I hoped that all the threatened places would thus be sufficiently protected, but negligence at Beverly resulted in the capture of that station by Rosser on the 11th of January.
In the meanwhile, Early established himself with Wharton's division at Staunton in winter quarters, posting his cavalry in that neighborhood also, except a detachment at New Market, and another small one at the signal-station on Three Top Mountain. The winter was a most severe one, snow falling frequently to the depth of several inches, and the mercury often sinking below zero. The rigor of the season was very much against the success of any mounted operations, but General Grant being very desirous to have the railroads broken up about Gordonsville and Charlottesville, on the 19th of December I started the cavalry out for that purpose, Torbert, with Merritt and Powell, marching through Chester Gap, while Custer moved toward Staunton to make a demonstration in Torbert's favor, hoping to hold the enemy's troops in the valley. Unfortunately, Custer did not accomplish all that was expected of him, and being surprised by Rosser and Payne near Lacy's Springs before reveille, had to abandon his bivouac and retreat down the valley, with the loss of a number of prisoners, a few horses, and a good many horse equipments, for, because of the suddenness of Rosser's attack, many of the men had no time to saddle up. As soon as Custer's retreat was assured, Wharton's division of infantry was sent to Charlottesville to check Torbert, but this had already been done by Lomax, with the assistance of infantry sent up from Richmond. Indeed, from the very beginning of the movement the Confederates had been closely observing the columns of Torbert and Custer, and in consequence of the knowledge thus derived, Early had marched Lomax to Gordonsville in anticipation of an attack there, at the same time sending Rosser down the valley to meet Custer. Torbert in the performance of his task captured two pieces of artillery from Johnson's and McCausland's brigades, at Liberty Mills on the Rapidan River, but in the main the purpose of the raid utterly failed, so by the 27th of December he returned, many, of his men badly frost-bitten from the extreme cold which had prevailed.