letter, relating to the same subject, was received and has been answered.

The result at Donaldsonville was very gratifying, and I feel greatly indebted to the officers of the navy for the assistance they gave and the distinguished part they played in this most creditable affair.

General Emory writes me, July 3, that the rebels have fired upon our transports from a point some few miles below Donaldsonville. They have disabled the Iberville, which was towed back to New Orleans, and put some shots through one or two other vessels. I desire you, if possible, to patrol the river with the gunboats, so taht our communication may be kept open for a few days longer. This is very important. General Emory is much alarmed for the safety of New Orleans, but I cannot think the city in any danger. It is impossible for me just now to send him the re-enforcements he requires, but, although their movements will occasion some inconvenience, I am quite satisfied that there is no imminent peril.

We have no news from Grant. Affairs in the north are becoming interesting.

We are progressing favorably, but not as rapidly as I could wish, with our movements here. Three or four days more will bring our affairs to a successful issue. I shall be delighted to see you again.

I have the honor to be, with much respect, your obedient servant,

N. P. BANKS,

Major-General, Commanding.

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 8, 1863.

GENERAL: I have the honor to report that the garrison of Port Hudson surrendered this afternoon upon the terms stated in the accompanying copy of the articles of capitulation--terms which, you will perceive, are those of an unconditional surrender. We shall take formal possession at 7 o'clock to-morrow morning.

I inclose a copy of the correspondence preliminary to the surrender.

Very respectfully, your most obedient servant,

N. P. BANKS,

Major-General, Commanding.

Major General H. W. HALLECK,

General-in-Chief, Washington, D. C.

[Inclosure Numbers 1.]

HEADQUARTERS,
Port Hudson, La., July 7, 1863.

Major General N. P. BANKS,

Commanding U. S. Forces, near Port Hudson, La.:

GENERAL: Having received information from your troops that Vicksburg has been surrendered, I make this communication to ask you to give me the official assurance whether this is true or not; and, if true, I ask for a cessation of hostilities, with a view to consider terms for surrendering this position.

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

FRANK. GARDNER,

Major-General, Commanding C. S. Forces.