UNITED STATES FLAG-SHIP MINNESOTA,

Newport News, Va., January 19, 1863.

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

Commanding Seventh Army Corps, Fort Monroe, Va.:

GENERAL: I respectfully refer to you the inclosed extracts from a report from Lieutenant Flusser, commanding United States steamer Commodore Perry, dated at Winfield, Chowan River, january 5, 1863,* and relating to an extensive illicit trade carried on between Norfolk and Richmond. This mischievous trade ought to be discontinued.

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

S. P. LEE,

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

UNITED STATES FLAG-SHIP MINNESOTA,

Off Newport News, Va., January 19, 1863.

Major General E. D. KEYES, U. S. A.,

Commanding at Yorktown:

GENERAL: It gave much pleasure to receive yours of the 14th and to learn from it that you appreciate Commander Parker's character for caution and enterprise - qualities so valuable and possessed by him in such degree as to claim my confidence in what he may attempt in an emergency and there is not time to confer previously with me. He is there to co-operate with you in measures for the advancement of the public interest, and in this regard needs no new instructions from me. I have the honor to be, general, very respectfully, yours,

S. P. LEE,

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

SUFFOLK, VA., January 19, 1863.

Major-General DIX, Fort Monroe:

Our parties have been all the roads and report no force in their routes. Their pickets were found at Windsor and Carrsville yesterday.

JOHN J. PECK,

Major-General.

FORT MONROE, VA., January 19, 1863.

Major General H. W. HALLECK,

General-in-Chief:

I send ba letter from General Foster. I sent Major Dix, one of my aides, two days ago with latest intelligence. A dispatch goes to General Ripley. Everything here for General Foster has been sent:

GENERAL: I have been much delayed in the preparations of my transports, and therefore have not got off as soon as I expected. The solid-shot ammunition for the siege guns has not yet arrived in sufficient quantity, neither have any of the water-schooners which were to be sent from baltimore with the Dispatch. However, I am doing the best that I can and am embarking at Beaufort. The embarkation will occupy three or four days, and then I shall sail.

J. G. FOSTER,

Major-General.

JOHN A. DIX,

Major-General.

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* Not found.

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