FLAG-STEAMER PHILADELPHIA,

Port Royal Harbor, S. C., October 1, 1864.

Major General J. G. FOSTER,

Commanding Dept. of the South, Hdqrs. Hilton Head:

GENERAL: I send you some deserters from Battery Marshall, who will give you some account of the works there. By their account, some 200 or 300 Union troops are working near Battery Marshall for the sake of getting clothing and shoes to wear, being nearly destitute.

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

J. A. DAHLGREN,

Rear-Admiral, Commanding S. Atlantic Blockading Squadron.

HEADQUARTERS DEPARTMENT OF THE SOUTH,
Hilton Head, S. C., October 3, 1864.

Major General H. W. HALLECK,

Chief of Staff, Armies of U. S., Washington, D. C.:

GENERAL: I have the honor to furnish an extract from a report made by one John Van Dailey, a deserter from Clinch's Light Battery, which is stationed at Camp Isle of Hope, southeast of Savannah:

The whole dependence of the South is upon the election, in the success of a man of peace principles, it being openly avowed in the streets of Savannah that if Lincoln is re-elected they will of necessity at once have to yield, and they are only awaiting the election in the North.

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

J. G. FOSTER,

Major-General, Commanding.

HEADQUARTERS DEPARTMENT OF THE SOUTH,
Hilton Head, S. C., October 3, 1864.

Rear-Admiral J. A. DAHLGREN,

Commanding S. Atlantic Blockading Squadron, Port Royal, S. C.:

ADMIRAL: Referring to the subject of the jurisdiction of Bay Point I have the honor to propose the following, viz: To remove the garrison from Fort Seward and turn it over to your jurisdiction after removing the guns and carriages, which it is understood are not desires by you and will be of value to me in arming the new field forts at this place and Beaufort. I thus turn over the whole jurisdiction of Bay Point and as much of Phillips Island as you desire with the distinct understanding, however, that whenever the Engineer Department of the United States requires the site for the erection of permanent fortifications for the defense of the harbor it shall be yielded up for that purpose.

Very respectfully, your obedient servant,

J. G. FOSTER,

Major-General, Commanding.

FLAG-STEAMER PHILADELPHIA,

Port Royal Harbor, October 3, 1864.

Major General J. G. FOSTER,

Commanding Dept. of the South, Hdqrs. Hilton Head:

GENERAL: I have received yours of to-day in relation to fort Seward and Phillips Island. I accept of the proposition made