hated troops and the want of arms alone accounts for the State's present connection with the bogus government. Unfortunately, just in proportion as the public sentiment was ripening and maturing for a hearty co-operation with the Federal Union, the land and naval forces of the latter were by the exigencies of the service so reduced as to place all on the defensive, and thus checked for a long time the Union movement, discouraging and disheartening our friends. For some months our forces of both arms have been far below the average since the occupation. The disaffection is again on the increase; the Standard has been suspended and many prominent gentlemen have been arrested.

The leading secessionists asked Mr. Davis to send a large force into the State to check the counter revolution and recover Eastern North Carolina. General Pickett made a move for that purpose, and the rebel organs claim that he secured great results. He has been ordered to recover the whole of the State, including Roanoke Island, and is busy organizing a land and naval force with that object. His headquarters are now at Goldsborough, where he has two brigades. He has three brigades at Kinston with two regiments of cavalry some 13 miles this side of that place. The land forces that he can concentrate in a few hours are from 25,000 to 30,000 and upward.

He is now removing the blockade and obstructions some 6 miles below Kinston for the purpose of bringing the ram and boat flotilla to this city. The rams in the Roanoke are expected to be in a condition to co-operate. The one at Kinston is virtually complete, and on the first flood will come down. They are so confident of success in the Neuse that General Pickett will not delay for the one at Halifax. In view of the condition of the State and of the formidable preparations making for the recovery of what we hold, I think it very unfortunate that the Government does not send sufficient force to decide quickly the destiny of North Carolina.

I am, very respectfully, your obedient servant,

JOHN J. PECK,

Major-General.

[Inclosure Numbers 2.]

HDQRS. ARMY AND DISTRICT OF NORTH CAROLINA,
New Berne, N. C., February 29, 1864.

Major General B. F. BUTLER,

Commanding Dept. of Virginia and North Carolina:

GENERAL: Two of our cavalry taken prisoners have just arrived from Goldsborough. They were confined a number of days at Kinston. General Picket is at Goldsborough with two brigades, organizing his grand expedition. He has three at Kinston. Our men were at the obstructions and saw the removing of them for the naval brigade, gunboat, &c. The rebels confident of success. Have pontoon bridges,&c. An immediate advance is confidently looked for by them. Two intelligent and worthy Union men have just arrived from the Government car-shops at Graham. At Goldsborough General Pickett had two brigades and three at Kinston. They saw thirteen new pontoons of oak, of large size, which had just been completed for General Pickett. Had an interview with the leading lawyer and man of Goldsborough, who is Union. He told