Numbers 2. Reports of Brigadier General Innis N. Palmer, U. S. Army, commanding District of North Carolina.

HDQRS. ARMY AND DISTRICT OF NORTH CAROLINA,
New Berne, N. C., February 1, 1864-8 p. m.

MAJOR: At an early hour this morning our outposts at Batchelder's Creek were attacked by the enemy, represented by deserters and prisoners as being in force about 15,000, consisting of Hoke's brigade (of Early's division) and Pickett's entire division. It being impracticable to make an adequate defense at the point of attack the small force at the outposts fell back upon the defenses of New Berne in very good order, destroying their camps and abandoning but few stores, and with a loss of from 50 to 100 men and one section of light artillery.

One regiment of infantry has been ordered up from Morehead, and our forces are so disposed as to make us confident of successful resistance, although, of course, less so than if our garrison were in strength one-third or one-half that of the enemy. The effective force at my disposal for the defense of this point is about 3,500 and upon this I shall be compelled to rely, as the distance and my limited means of transportation render it impossible to re-enforce from Plymouth, and the force in the other sub-districts is meager. Almost simultaneously with the attack I have mentioned the enemy advanced upon the south side of the Trent, in what force it is difficulty to estimate and were handsomely repulsed.

Up to this time communication has been maintained with Morehead, but I have information that the enemy is near the railroad with the probable intention of cutting it. The commanding officer of the Sub-district of Beaufort is fully aware of the situation, and, as a matter of course, no effort or vigilance will be spared to prevent interference with the road.

I remain, major, very respectfully, your obedient servant,

I. N. PALMER,

Brigadier-General, Commanding.

Major R. S. DAVIS,

Assistant Adjutant-General.

Since writing the above information has reached headquarters that the section of artillery supposed to have fallen into the enemy's hands is at Beech Grove, and may be preserved, although the enemy is between it and us.

NEW BERNE, N. C., February 2, 1864.

MAJOR: Since my dispatch of last evening by hand of Lieutenant McVey, aide-de-camp, no material change in the situation has occurred. Skirmishing in my front continues, but it is hardly possible to judge confidently of the enemy's intentions or of his numbers. Fatigue parties are employed in strengthening my works, and the able-bodied citizens and negroes have been armed. Colonel Jourdan, commanding Sub-district of Beaufort, reports that his lines at Gales' Creek and Bogue Sound block-houses are attacked by an unknown force of cavalry and artillery. I have sent some light artillery to

4 R R-VOL XXXIII