and Captain Henry Bryan, assistant adjutant-general, will report for duty to Major-General Magruder, commanding, in his stead.

* * * *

By command of the Secretary of War:

John WITHERS,

Assistant Adjutant-General.

[9.]

HEADQUARTERS DEPARTMENT OF NORTH CAROLINA,
Goldsborough, January 14, 1862.

Brigadier General J. R. ANDERSON,

Commanding, &c., Wilmington:

GENERAL: Your letter of yesterday has been received; also a letter of a previous date relative to receiving a local company in Brunswick. Muster it in if you need its services. I telegraphed last night that the Thirty-fourth Regiment was to be detained here until something definite was known of the destination of the fleet. In the meantime the Secretary of War proposes to arm it; I have telegraphed to know when. Give me immediate notice should the enemy appear, and I will draw troops from New Berne and demand re-enforcements from Richmond.

Very respectfully, your obedient servant,

R. C. GATLIN,

Brigadier-General.

[9.]

NORFOLK, VA., January 16, 1862.

Honorable J. P. BENJAMIN,

Secretary of War:

SIR: The within communication, addressed to me by the president of the Albemarle and Chesapeake Canal, I respectfully refer to your consideration. I have to say that the canal is the most capacious, with but one lock, the largest I know of. The two sections are seventy feet wide, and admit of two towing steamers passing or meeting. The work is yet incomplete in the parts of rivers needing dredging and in the embankments of the canal which require protection from washing. The work is indispensable to the army and navy purposes of this department. The transportation for Government has already been very considerable, and must now largely increase. I have had reason to test the accommodating spirit and means of the company and its offices, and have found them unhesitating the liberal in subserving all the public uses and orders. I think the proposition herein contianed, to pay a monthly sum instead of special tolls, is reasonable. What sum is reasonable I have made no estimate to determine, but Mr. Parks can furnish the data for your own estimates; and at all events it is necessary that the company should have a certain reliance for revenue in order to complete its unfinished work. The Navy Department could send much larger gun-boats into Albemarle and Pamlico Sounds if the channels over certain shoals are deepend, and transportation would in all essential respects be improved. I refer you, sir, to Flag Officer Lynch's letter accompanying this. If this work is not kept up, or is not defended, Norfolk and Portsmouth cannot be adequately supplied, and the enemy cannot be successfully met in the rear of those cities. The war has cut off most of the commercial revenue of the work, and it is deprived of what little trade that is left in consequence of the Government needing and using all the motive power of the company. In a