BATTERY Numbers 2, July 7, 1864-11.05 a. m.

The enemy occupy the same position as yesterday. Their right extends about 200 yards to right of Legare's overseer's house. No enemy are on this side of either causeway. They made reconnaissances in barges last night of either causeway. They made reconnaissances in barges last night in the direction of Grimball's Landing, but they were driven back. Some skirmishing in front last night. All quiet this morning.

WM. B. TALIAFERRO,

Brigadier-General.

Major C. STRINGFELLOW,

Assistant Adjutant-General.

BATTERY Numbers 2, July 7, 1864. (Received 12.25 a. m., via Royall's House.)

Received your dispatch. Will send the ammunition; shall the troops wait for it? Better not delay them. The troops left here four hours ago. No answer to my telegram about the gin and gun carriage in Pringle. The fire was very severe upon Pringle, but no harm done to the works; 1 man severely wounded. We hit a monitor twice with a 10-inch gun, but could not reach the vessels. I will try greater elevation with rifle guns, for they are much more effective against uss than the monitors. It is very important to mount the Brooke gun. Enemy shelling at intervals still. No 10-pounder Parrott shell on the island.

WM. B. TALIAFERRO,

Brigadier-General.

Major-General JONES.

BATTERY Numbers 2., July 7, 1864-12.15 p. m.

The report from the observation is as follows: One monitor, 1 mortar hulk, 2 gun-boats, 8 transports, and 2 schooners in the Stono; 2 transports and 7 schooners off Cole's Island; 1 transport at Dixon's Island; 1 schooner in Folly River; 2 schooners in Light-House Inlet. No change can be observed in position or in number of men in the enemy's lines. Fleet off Morris Island is 4 monitors, 5 steamers, and 5 sailing vessels. At 12 m., 12 large steamers passed, going south, and 1 at 4 in the afternoon. I think 2 monitors in Stono, 1 below Battery Island. Sixteen vessels can be seen from Legareville, among them the mortar-boat and 4 gun-boats. I call particular attention of the major-general to the report of 13 steamers having passed south yesterday. It looks as if what was intimated by the Northern papers may be true, that Grant is fortifying and sending troops South. Firing is now heard on John's Island, evidently Major Jenkins shelling the enemy. Enemy are shelling our works.

WM. B. TALIAFERRO,

Brigadier-General.

Major STRINGFELLOW,

Assistant Adjutant-General.