agents from Baltimore are in the habit of going to Norfolk in the mail-boat Pioneer, getting vegetables, fruit, & c., which they take to Fortress Monroe and ship immediately to be sold in Baltimore on private speculation. I beg that you will be so good as to inquire into this matter and forbid traffic on board these mail-boats, which are under your control. You are aware that the mail-boats have not been required in passing to leave the usual certificate at the guard vessel, because it was understood that they were under good military police and would not therefore violate the blockade. If, however, they are engaged in trade the usual official certificate will be necessary as in case of vessels passing the blockade with army supplies.

I have the honor to be, general, very respectfully, yours,

S. P. LEE,

Actg. Rear-Admiral, Commanding N. Atlantic Blockading Squadron.

HDQRS. DEPT. OF VIRGINIA, SEVENTH ARMY CORPS,
Fort Monroe, Va., October 11, 1862.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

SIR: I have the honor to inclose the copy of Mr. Cutting's letter on which the schooner Marblehead was cleared "with her cargo" by the direction of the Secretary of the Treasury, a copy of whose letter you have. In the latter, a rule is prescribed for like cases.

I have therefore to advise you that I shall on application clear with return cargoes from Norfolk vessels which go there with permits from the Secretary of the Treasury, in conformity with the regulations concerning coastwise intercourse, & c.

I am, very respectfully, your obedient servant,

JOHN. A. DIX,

Major-General.

UNITED STATES FLAG-SHIP MINNESOTA,

Off Newport News, Va., October 11, 1862.

Major General JOHN A. DIX, U. S. A.,

Commanding Seventh Army Corps:

GENERAL: I have the honor to acknowledge the receipt this afternoon of your communication of this date, inclosing a copy of Mr. Cutting's letter of September 27, 1862, to the Secretary of the Treasury.

There is an inaccuracy in Mr. Cutting's letter which requires a prompt correction at my hands. Mr. Cutting came on board to inquire if his vessel (not vessels) with lumber could pass the guard vessel. I had but recently assumed the command, and not being familiar with the state of affairs, inquired of Commander Case, captain of the fleet, for information about the matter, and was informed in reply that Admiral Goldsborough had allowed Mr. Cutting's vessels to pass, and Commander Case said he believed Mr. Cutting was one of several firms who were trading here under a permit from the Secretary of the Treasury. It was upon this understanding of the case that I assented not to interrupt what seemed usual and proper. But it is incorrect in Mr. Cutting to assert that I "granted" him the "privilege" of trading. I never meant to do any such thing.

On the 18th of September I received instructions from the Secretary