lose in sending re-enforcements. Transports will have to be conveyed by gunboats. The enemy have sent a flag of truce from Des Allemands Bayou, saying they have 1,200 prisoners they wish to deliver. Where they came from I do not know. They have already sent in 50 by the way of the fort at Donaldsonville. These men have used such sedition language that the commanding officer at the United States barracks has been obliged to put them in confinement.

The navy is all above, except the Pensacola and Portsmouth, and the New London, which is about being completed and sent to Texas.

Just as I finished the above, the Zephyr, with my aide-de-camp, Lieutenant French, returning from Donaldsonville, where I was compelled to send re-enforcements, has also been fired into, receiving two solid shots.

As I before informed you, the attempt to raise a force here is a failure.

The enemy's plan is to cut your communications, and then march on this city.

Very respectfully, your most obedient servant,

W. H. EMORY,

Brigadier-General, Commanding.

[Inclosure No. 3.]

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS, Before Port Hudson, La., July 5, 1863.

Brigadier General W. H. EMORY, Commanding Defenses of New Orleans, La.:

GENERAL: Your dispatch of July 3, I received by the hand of Captain Porter last evening at 5 o'clock. It is impossible for me to send to you re-enforcements in such numbers as to change the condition of affairs in New Orleans. I do not think, however, that the city is in peril. Some inconveniences and annoyances must necessarily ensue from the operations of the enemy while the bulk of our forces are engaged at this point. We shall, however, be released in a few days.

The navy must patrol the river, and prevent, as far as possible, the formation of any position which shall imperil our communication with the city; but it is not possible to prevent a chance shot being fired into our boats occasionally. This occurred constantly on the river while our troops were in New Orleans in force, and cannot be prevented, except by such operations as will result in expelling the enemy altogether from the country bordering upon the river. I am confident that this will be effected in a few days.

The prisoners referred to in your letter are doubtless the garrison an convalescents captured at Brashear City. This was a most discreditable affair to the officers in command. It would have been impossible, witch any watchfulness whatever, for the enemy to have prepared his rafts and crossed the waters above that city without such notice as to have enabled them to escape. They had a railroad at their command and transports and gunboats on the water. The seditious language said to have been used by the prisoners I do not understand.

Affairs here are progressing favorably, but slowly, and in a few days will result in a successful issue. The behavior of Major Bullen and the troops under his command at Donaldsonville was most creditable, and has greatly encouraged the spirit of the army. It is a compensation for the disgrace that rests upon Brashear. I will communicate with you again to-morrow.

I have the honor to be, with much respect, your obedient servant,
N. P. BANKS,

Major-General, Commanding.