of the Navy, in reply to the application of the gas company, "that no traffic in shingles, cotton, or tobacco could be permitted" here. I immediately sent Commander Case and Mr. Saltonstall on shore to inform General Viele of the Department's answer to the gas company, and directed them to inform Messrs. Catlett & Moore and Mr. Cutting that trade here was not allowed.

Commander Case learned from the provost-marshal that Mr. Cutting had gone North the evening before, and the provost-marshal said he could not direct Commander Case where he could find Messrs. Catlett & Moore, but he would notify them of this order of the Department.

The Marblehead sailed under a military permit, purporting to be under sanction of the Treasury Department, on the 30th of September.

Commander Case has read and indorsed this statement.

In reply to your notice to me "that you 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 have to inform you that it will be my duty, under my instructions, to pass any vessel into Norfolk with a cargo of merchandise showing me a permit therefor from the Secretary of the Treasury, and that it will also be my duty, under instructions, to seize any vessel passing out of Norfolk with a cargo of merchandise under a permit from you.

In your communication to me of the 9th instant you say: "I have brought the whole subject of traffic with Norfolk before the Government, and trust it will be disposed of in some satisfactory manner;" and you also say in the same communication: "I have instructed the provost-marshal at Norfolk to issue no more passes to vessels with return cargoes or to vessels desirous of exporting domestic or other products until the decision of the Government is known." I sincerely trust, general, that you will adhere to this considerate course. You know my instructions and my duty to obey them.

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

S. P. LEE,

Acting Rear-Admiral.

SPECIAL ORDERS, HDQRS. OF THE ARMY, ADJT. GENL 'S OFFICE, Numbers 290.
Washington, October 11, 1862.

* * * * * * *

II. Brigadier General James H. Van Alen, U. S. Volunteers, is hereby relieved from duty at Yorktown, Va., and will report in person without delay to the General-in-Chief.

By command of Major-General Halleck:

E. D. TOWNSEND,
Assistant Adjutant-General.

HDQRS. DEPT. OF VIRGINIA, SEVENTH ARMY CORPS,

Fort Monroe, Va., October 12, 1862.

Actg. Rear-Admiral S. P. LEE,

North Atlantic Blockading Squadron:

ADMIRAL: Lieutenant-Commander Babcock is entirely mistaken in supposing that the Pioneer has been engaged by my permission in carrying merchandise in considerable quantities between Norfolk and this post for purposes of traffic. The only articles allowed to go in the mail