UNITED STATES FLAG-SHIP MINNESOTA,

Newport News, Va., February 6, 1863.

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

Commanding Seventh Army Corps, Fortress Monroe, Va.:

GENERAL: Yours of the 31st ultimo was duly received. Pressing engagements have prevented an earlier reply to it. I have no authority to regulate or sanction the privilege of trading hat Norfolk by surrounding it with safeguards. It will be satisfactory to me to receive and to give the utmost attention to any written communication you may now or at any time make to me which will enable me to stop illicit trade at Norfolk or elsewhere within the limits of the North Atlantic Blockading Squadron. The new fleet captain has just entered upon his duties and is not familiar with the situation of affairs here.

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

S. P. LEE,

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

HDQRS. DEPT. OF VIRGINIA, SEVENTH ARMY CORPS,
Fort Monroe, Va., February 7, 1863.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

ADMIRAL: It was at General Viele's request that I asked you to send him an officer with whom he might confer in regard to some additional safeguards in regard to trade. The general though he might obtain valuable suggestions from an officer of the Navy. That was all he had in view. The occasion which made such a conference desirable has now passed by.

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

JOHN A. DIX,

Major-General.

SUFFOLK, VA., February 8, 1863.

Major-General DIX:

My scouting party went to Carrsville in the night. Captain Roberts reports the arrival of a battalion at Franklin of cavalry armed with sabers, rifles, and revolvers. two companies were at Carrsville and Holland's yesterday, returning via South Quay. The contraband says there was much rejoicing at Franklin, and the troops turned out on the arrival.

JOHN J. PECK,

Major-General.

SUFFOLK, February 8, 1863.

Major-General DIX:

Very intelligent contraband escaped this morning. Has a family here. His master resides 1 miles from Franklin. Yesterday he overheard him and officers talking in the field. Pryor has been re-enforced by Georgia and Louisiana troops; will have 8,000 this week. Gen-