by the rebels or ourselves, which could encourage a future occupation even with field pieces by the forcer, especially for the purpose of annoying the gunboats, which are sufficient to keep the blockade and police of these waters. I would apply the same rule to all the rebel works near Norfolk, and would hold no military occupation of any place in this vicinity outside Fortress Monroe except such as might be necessary to protect our present occupation of the Gosport Navy-Yard. This would allow a large force, of from 20,000 to 30,000 (now scattered and making, as it were, a frontier line, liable to attack in detail), to be concentrated for the effectual prosecution of a campaign, and it would leave our gunboats free to move about and preserve a strict blockade instead of occupying positions rendered necessary only by the positions of the army.

I have the honor to be, & c.,

S. P. LEE,

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

WASHINGTON, October 28, 1862 - 7 p. m.

Major-General DIX:

The Secretary of State desires to have a personal interview with you respecting Norfolk trade, about which there is difficulty with the Navy Department, and that in the mean time you grant no more permits either for exports or imports.

You will please come here at your earliest convenience, and suspend all permits.

EDWIN M. STANTON,

Secretary of War.

UNITED STATES FLAG-STEAMER PHILADELPHIA,

Hampton Roads, Va., October 28, 1862.

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

Commanding Seventh Army Corps, Fortress Monroe, Va.:

GENERAL: Our troops in the Sounds have at some important points no works, and are protected there by the vessels. In view of the threatened attack in that quarter the light-draught and heavy battery of the Southfield, which vessel has for some time been undergoing very slow repairs at Norfolk, make her services absolutely necessary in the Sounds at this time. I have urgently to request that you will cause all the force at Norfolk which can be effectually employed to be assigned to her, with a view to her immediate completion.

I will thank you for an answer to this.

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 29, 1862.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

ADMIRAL: I have not thought it profitable to continue the discussion with you of the blockade at this post, as you assure me that in all