War of the Rebellion: Serial 009 Page 0383 Chapter XX. CORRESPONDENCE, ETC.-UNION.

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P. S.-The Chippewa and State of Georgia both go to Cape Fear, and the Gemsbok goes North. This will leave only one steamer here.

The gunboats will take all the coal now here.

Please have another schooner sent.

HEADQUARTERS DEPARTMENT OF NORTH CAROLINA,

New Berne, N. C., May 3, 1862.

Honorable E. M. STANTON,

Secretary of War, Washington, D. C.:

SIR: I have the honor to report that the only thing of moment that has occurred since the fall of Fort Macon was a skirmish that occurred between three or four companies of the enemy's cavalry and 30 or 40 of our men, temporarily mounted, under the command of Colonel Egloffstein, of the One hundred and third New York, which resulted in a loss on our side of 1 private killed and Colonel Egloffstein and 2 privates wounded. The colonel was shot in the leg just below the knee, making a painful wound, which will probably disable him from service for some three months. The rebels were dispersed, with a loss of 3 killed, 8 wounded, and 3 taken prisoners. We captured 5 horses with full cavalry equipments. Our pickets are constantly annoyed by the enemy's cavalry, and we have this week lost 2 killed and 3 prisoners. Our losses in these little renconters are more than compensated for by the losses of the enemy. Our infantry pickets compete remarkably well with the enemy's cavalry, and had we one cavalry regiment here I feel sure that we could keep the two cavalry regiments of the enemy which are now in our front at a respectful distance, and at the proper time would drive in every one of their outposts. We look with great anxiety for the arrival of the cavalry and light artillery ordered here. All the troops destined for this department can be transported to Beaufort Harbor in large vessels and landed at the wharf at Morehead City, where there is some 17 or 18 feet of water. We are repairing Fort Macon as rapidly as possible, and I am gradually withdrawing General Parke's (First) brigade to this place, with a view to leaving some five companies in Fort Macon and five in the town of Beaufort and Morehead City as guards. The main fort on the outskirts of this town is now about finished, and the smaller fort, which will complete the line of fortifications, is commenced. These forts are build not only with a view to hold the place with a small force, but to give occupation to the hundreds of negroes that are flocking to us. They will make our base more secure, and thereby add greatly to our strength in an advanced movement into the interior.

By the next mail I hope to forward you the detailed report of General Parke of the siege of Fort Macon, and at the same time I will forward to the Department a more intelligible statement of our condition, strength, and resources.

The three definite objects of my expedition have been accomplished, and the remaining ones were necessarily left to a certain extent to my discretion, as it was impossible to predict all the changes that might occur in the mean time. Of course I do not consider my work as finished, and shall be glad to receive more definite instructions, if the interests of the service require it. My own view is, that a movement upon Goldsborough and Raleigh in force is the proper one, and I am quite sure that General McClellan is of the same opinion. With these two places