NEW BERNE, N. C., February 9, 1864.

MAJOR: Since my communication to you of the 7th nothing of importance has occurred in this portion of my command. Our line of outposts is re-established with very little changes. The communication with Morehead City is uninterrupted and the repairs on the railroad will completed in two or three days.

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

I. N. PALMER,

Brigadier-General, Commanding.

Major R. S. DAVIS,

Asst. Adjt. General, Fort Monroe, Va.

NEW BERNE, N. C., February 20, 1864.

MAJOR: The various communications forwarded to you during and immediately after the recent demonstration of the enemy at this place gave to the commanding general of the department all the facts concerning the affair, but in these reports no statement of the losses either in men or material was given, and I have considered it proper to send with these statements of losses a sort of resume of the former reports for the records of your office and for future consideration.

The attack was commenced at about 2. 30 a. m. of the 1st instant, at the outposts at the point where the Neuse road crosses Batchelder's Creek, about 8 miles from this place. At that point there was a small force of 1 officer (Lieutenant Haring, One hundred and thirty-second New York Volunteers) and 13 men. At the approach of the enemy this force was on the alert, and the passage of the bridge disputed gallantly. The little party had taken up the bridge and stationed themselves behind a small breast-work and every attempt of the enemy to cross was handsomely repelled for several hours; in fact they did not succeed in driving the guard away until they had constructed a bridge at another point and taken them in rear. Colonel Claassen, of the One hundred and thirty-second New York Volunteers, was in command of the whole line of outposts, and he was ready. A few prisoners, taken very early in the attack, gave information of the strength of the enemy, their commanding general, &c., and this was communicated to me by telegraph. I immediately ordered out a small force of infantry, under Lieutenant-Colonel Fellows, of the Seventeenth Massachusetts Volunteers, with a section of artillery, to harass the advance on the Neuse road as much as possible, and to enable the troops at the outposts to retire in order. One section of artillery, with two companies of infantry, was also sent, at the request of Colonel Claassen, to check any force that might have been coming on the Washington road. The enemy approaching in this direction was some 5,000, with sixteen pieces of artillery, the whole under General Pickett, and they advanced directly down the Neuse road, our forces retiring slowly. The outposts on the approaches were duly notified of what was going on, and they retired with the exception of the command on the Washington road. This little force, together with the section of artillery and the two companies of infantry, remained at their posts until the enemy had passed down below the junction of the Neuse and the Washington roads, when they were cut off, there being no way of retiring to the city except by cutting their way through the enemy. This was simply impossible, and they were captured. At about noon the