I am now entirely at a loss what to do in the matter of funds to conduct the work on the torpedo-boat. During the next week she should be so far completed (without plating) as to enable her, under cover of night, to take part in any engagement.

I would further state that the small torpedo steamer (Winans' model), now building in Cooper River, is nearly completed, and we have good reason to expect will aid materially in the defense of this city.

In conclusion, captain, please assure the commanding general that I am sparing neither pains nor labor in accomplishing the duties assigned me.

I have the honor to be, captain, very respectfully, your obedient servant,

FRANCIS D. LEE,

Captain of Engineers.

HDQRS. FIRST SUB-DIVISION, FIRST MILITARY DISTRICT,
Royal's, July 25, 1863.

Captain W. F. NANCE,

Assistant Adjutant-General:

CAPTAIN: The present front of the defenses of this land now extends from Legare's Point to Secessionville. At this latter place it turns and runs in a direction parallel to the Stono along a long and weak line to Fort Pemberton. Would it not simplify our system of defense to extend the line through Secessionville and the Stono in nearly a straight line, to put upon the Stono a strong work, and to put upon the line between the Stono and Secessionville some of the guns now on the eastern and western lines? This will save a line of pickets running from Secessionville to Fort Pemberton, and will enable us to rely on some other defenses than the isolated works on east lines, already enfiladed by the fire of the enemy, and the western lines, which can be under fire from the Stono whenever the gunboats choose to run up the river.

Very respectfully, your obedient servant,

CHARLES H. SIMONTON,

Colonel, Commanding.

HDQRS. DEPT. SOUTH CAROLINA, GEORGIA, AND FLORIDA,
Charleston, S. C., July 26, 1863.

The defective system of defense adopted on James Island has been adverted to so often from these headquarters that it is considered

unnecessary to allude again to the subject. It is hoped at the proper time (as already stated once) that a short and proper defensive line may be adopted. The one referred to by Colonel Simonton is not approved, for it cannot be executed with the enemy's gunboats in command of the Stono, and, when executed, would be rendered untenable by one monitor passing the strong fort on the Stono at night, and taking the whole of that line in reverse.

G. T. BEAUREGARD,

General, Commanding.