the desire of the company to resume work upon the canal so as to insure an improved navigation, and for that purpose they propose to appropriate all the revenue that may be derived from the Confederate Government for that purpose. The company desire to deal liberally with the Government, and propose in lieu of the usual tolls and charges a certain sum per month be fixed upon for the entire use of the canal and navigation. The registered tonnage of transports passing the company's collection office on quartermaster's business was as follows, viz:

Tons.

From August 29 to August 31 (three days)................ 1,175

From September 1 to September 30 (thirty days).......... 4,000

From October 1 to October 31 (thirty-one days)......... 3,820

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Total (sixty-four days)................................. 8,995

140 54/100 tons per day for a command of 1,400 men. When your legion arrives the command will number 4,000 to 5,000 men, and should the transportation increase in the same ratio it will add up from 12,000 to 15,000 tons per month. There are now only seven steam gun-boats. I learn this number is to be increased to 100 and upward. I would therefore suggest that the War and Navy Departments pay our company $3,000 each per month from 20th of August last, instead of the usual charges.

Hoping it may be convenient for you to make a personal inspection of the work, I am, sir, very respectfully, your obedient servant,

MARSHSALL PARKS,

President Albemarle and Chesapeake Canal Company.

[Inclosure Numbers 2.]

C. S. S. SEA BIRD,

Off Roanoke Island, January 10, 1862.

Honorable S. R. MALLORY,

Secretary of the Navy:

SIR: I understand that it is contemplated to improve the navigation of the Albemarle and Chesapeake Canal. To carry out improvements, which will very much enhance the usefulness of the canal, I further learn that the co-operation of the Government is indispensable. Being enabled to speak from experience, I feel justified in saying that without the use of the canal heretofore supplies from and imperatively requisite repairs at Gosport Navy-Yard could not have been received or effected. The vessels composing the squadron under my command could not without regular supplies and effectual repairs have been keep together, and by consequence, acting dispersively, would have been prevented from periodically maneuvering in sight of the enemy, and thus up to this time deterred him from venturing within Pamlico Sound, the great reservoir of the waters of North Carolina this side of Cape Fear. Although very great facilities have been afforded by the canal, through which every vessel of the squadron save one has repeatedly passed, the occasional lowness of the water, consequent upon prevalent northerly winds, has repeatedly caused delays highly detrimental to the service. I thereore most earnestly recommend the canal to your fostering care, the more so that a large portion of its stock will be ocnfiscated by the Government, and submit to your better judgment a consideration of the proposed improvements.

I have the honor to be, your obedient servant,

W. F. LYNCH,

Flag-Officer.

[9.]