SEPTEMBER 27, 1863.

General JENKINS:

All quiet in the enemy's lines this morning. Two guns are visible in the center of the work erected yesterday.

DUVALL,

Lieutenant.

[30.]

SEPTEMBER 27, 1863.

Captain MANNING:

A further examination of the works erected yesterday discloses twenty pieces of field artillery posted on a line of 300 yards covering the streets and roads leading to the depot on the south side.

DUVALL,

Lieutenant.

[30.]

HEADQUARTERS DEPARTMENT OF THE GULF,
Mobile, Ala., September 28, 1863.

General S. COOPER,

Adjutant and Inspector General, Richmond, Va.:

(Through General Joseph E. Johnston.)

GENERAL: I have the honor to report for the information of the War Department the following matters: Since my last report the steam-ships Alabama and Fanny delivered in Havana on Government account 450 bales of cotton, which were sold by Mr. Helm at 36 cents a pound. The return cargoes of these ships, selected with great care for Government use, were large and valuable. The Fanny was chased by a Federal cruiser to near Pascagoula, where she was burned and abandoned by her crew. Ship and cargo a total loss. The Alabama was captured and taken into New Orleans. no results have even yet accrued to the Government, so far as I know, from the contracts which have been made with Messrs. Ford, yocum, Clarke, Johnstone, &c. If I am correctly informed, the cargoes of cotton now being put on board the vessels belonging to some of these parties, under the cirection of their agent, Hohenstein, will make about 3,000 bales shipped under those contracts out of the Confederacy. Up to this moment I know of no Governmetn stores ever broughyt in by them, nor have I satisfactory evidence that they have taken any effectual measures to bring any at any future time. With the light before me, I feel it my duty to urge the annulling of those contracts. Mr. Helm writes that he hopes to be able to send in soon some blockade-running ships with cargoes for the Government, which will take out Government cotton on terms according to the wishes of the Department. A fine new steam-ship will be ready to leave here in a fe days, carrying 500 bales of cotton.

The latest dates from New Orleans are to the 19th instant. The Federal expeditions into Louisiana and Texas have been completely defeated. One of them under Franklin had returned, having suffered heavy loss. There was great espondency in consequence. Banks was reported to have forty regiments in and about New Orleans. Besides, Grant had fifty-seven regiments, averaging about 400 men. There was a large siege train of Parrott guns, 120-pounders. There were no important naval preparations. Grant went to Vicksburg on the 16th from New Orleans. Reports of conversation of Federal officers in New Orleans indicate an expectation of a movement against Mobile in the course of the next two weeks. At Pensacola, among the officers