[Inclosure No. 3.]

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 5, 1863.

 Brig. Gen. W. H. EMORY,
Comdg. Defenses of New Orleans, La.:

GENERAL: Your dispatch of July 3, I received by the hand of Captain Porter last evening at 5 o'clock. It is impossible for me to send to you re-enforcements in such numbers as to change the condition of affairs in New Orleans. I do not think, however, that the city is in peril. Some inconveniences and annoyances must necessarily ensue from the operations of the enemy while the bulk of our forces are engaged at this point. We shall, however, be released in a few days.

The navy must patrol the river, and prevent, as far as possible, the formation of any position which shall imperil our communication with the city; but it is not possible to prevent a chance shot being fired into our boats occasionally. This occurred constantly on the river while our troops were in New Orleans in force, and cannot be prevented, except by such operations as will result in expelling the enemy altogether from the country bordering upon the river. I am confident that this will be effected in a few days.

The prisoners referred to in your letter are doubtless the garrison and convalescents captured at Brashear City. This was a most discreditable affair to the officers in command. It would have been impossible, with any watchfulness whatever, for the enemy to have prepared his rafts and crossed the waters above that city without such notice as to have enabled them to escape. They had a railroad at their command and transports and gunboats on the water. The seditious language said to have been used by the prisoners I do not understand.

Affairs here are progressing favorably, but slowly, and in a few days will result in a successful issue. The behavior of Major Bullen and the troops under his command at Donaldsonville was most creditable, and has greatly encouraged the spirit of the army. It is a compensation for the disgrace that rests upon Brashear. I will communicate with you again to-morrow.

I have the honor to be, with much respect, your obedient servant,

 N. P. BANKS,

 Major-General, Commanding.

 

[Inclosure No. 4.]

HEADQUARTERS DEFENSES OF NEW ORLEANS,
New Orleans, La., July 4, 1863.

 Major-General BANKS,
Commanding Nineteenth Army Corps:

GENERAL: The paroled prisoners have come in, and my information is as nearly positive as human testimony can make it that the enemy are 13,000 strong, and they are fortifying the whole country as they march from Brashear to this place, and are steadily advancing.

I respectfully suggest that, unless Port Hudson be already taken, you can only save this city by sending me re-enforcements immediately and at any cost. It is a choice between Port Hudson and New Orleans.

The attempt to raise troops here is futile. There are at least 10,000 fighting men in this city (citizens), and I do not doubt, from what I see, that these men will, at the first approach of the enemy within view of the city, be against us to a man.

I have the honor to be, &c.,

 W. H. EMORY,

Brigadier-General, Commanding.

[Inclosure No. 5.]

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 5, 1863.

 Brig. Gen. W. H. EMORY,
Commanding Defenses of New Orleans, La.:

GENERAL: The commanding general has this moment received your dispatch of the 4th instant, by the hands of First Lieutenant Woodrow, Seventeenth Infantry, acting aide-de-camp. The general directs me to say that operations here can last but two or three days longer at the outside, and then the whole command will be available to drive back the enemy, who is now annoying our communications and threatening New Orleans. We are to-day effecting the passage of the ditch in front of the right priest-cap. When this operation is decided, the commanding general will re-enforce you with the utmost promptitude, and with a large force; but he regards New Orleans as safe, if the navy does its duty in preventing the passage of the river. The general deems your force, though obviously too small, large enough to hold the works on the right bank of the river and to keep New Orleans quiet. Much, in his opinion, very much, will depend upon the management of affairs in the city quietly and with a firm hand.

The people of New Orleans understand, or ought to understand, well that their conduct upon this occasion will be the measure of their treatment hereafter by the military authorities of the United States.

Very respectfully, your obedient servant,

 RICHARD B. IRWIN,

Assistant Adjutant-General.

[Inclosure No. 6.]

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 5, 1863.

 Rear-Admiral D. G. FARRAGUT,

Commanding, &c. :

Your letter of July 2 I received at 5 o'clock last evening. It had been delayed by some mischance spun its way hither. A subsequent letter, relating to the same subject, was received and has been answered.

The result at Donaldsonville was very gratifying, and I feel greatly indebted to the officers of the navy for the assistance they gave and the distinguished part they played in this most creditable affair.

General Emory writes me, July 3, that the rebels have fired upon our transports from a point some few miles below Donaldsonville. They have disabled the Iberville, which was towed back to New Orleans, and put some shots through one or two other vessels. I desire you, if possible, to patrol the river with the gunboats, so that our communication may be kept open for a few days longer. This is very important. General Emory is much alarmed for the safety of New Orleans, but I cannot think the city in any danger. It is impossible for me just now to send him the re-enforcements he requires, but, although their movements will occasion some inconvenience, I am quite satisfied that there is no imminent peril.

We have no news from Grant. Affairs in the north are becoming interesting.

We are progressing favorably, but not as rapidly as I could wish, with our movements here. Three or four days more will bring our affairs to a successful issue. I shall be delighted to see you again.

I have the honor to be, with much respect, your obedient servant,

 N. P. BANKS,

Major-General General, Commanding.

-----

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 8, 1863.

GENERAL: I have the honor to report that the garrison of Port Hudson surrendered this afternoon upon the terms stated in the accompanying copy of the articles of capitulation--terms which, you will perceive, are those of an unconditional surrender. We shall take formal possession at 7 o'clock to-morrow morning.

I inclose a copy of the correspondence preliminary to the surrender.

Very respectfully, your most obedient servant,

 N. P. BANKS,

Major-General, Commanding.

 Maj. Gen. H. W. HALLECK,

General-in-Chief, Washington, D.C.

[Inclosure No. 1.]

HEADQUARTERS,
Port Hudson, La., July 7, 1863.

 Maj. Gen. N. P. BANKS,
Comdg. U. S. Forces, near Port Hudson, La.:

GENERAL: Having received information from your troops that Vicksburg has been surrendered, I make this communication to ask you to give me the official assurance whether this is true or not; and, if true, I ask for a cessation of hostilities, with a view to consider terms for surrendering this position.

I remain, general, very respectfully, your obedient servant,

 FRANK. GARDNER,

Major-general, Commanding C. S. Forces.

[Inclosure No. 2.]

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Before Port Hudson, La., July 8, 1863--1.15 a.m.

 Maj. Gen. FRANK. GARDNER,
Comdg. C. S. Forces, Port Hudson, La.:

GENERAL: In reply to your communication, dated the 7th instant, by flag of truce, received a few moments since, I have the honor to inform you that I received yesterday morning, July 7, at 10.45 o'clock, by the gunboat General Price, an official dispatch from Maj. Gen. Ulysses S. Grant, U. S. Army, whereof the following is a true extract:

HEADQUARTERS DEPARTMENT OF THE TENNESSEE,
Near Vicksburg, Miss.; July 4, 1863.

Maj. Gen. N. P. BANKS, Comdg. Department of the Gulf :

GENERAL: The garrison of Vicksburg surrendered this morning. Number of prisoners, as given by the officers, is 27,000; field artillery, one hundred and twenty-eight pieces, and a large number of siege guns--probably not less than eighty.

I am, general, very respectfully, your obedient servant,

U.S. GRANT,

Major-General.

I regret to say that, under present circumstances, I cannot consistently with my duty consent to a cessation of hostilities for the purpose you indicate.

Very respectfully, your most obedient servant,

 N. P. BANKS,

 Major-General General, Commanding.

[Inclosure No. 3.]

HEADQUARTERS, Port Hudson, La., July 8, 1863.

 Maj. Gen. N. P. BANKS,  Comdg. U. S. Forces, near Port Hudson, La.:

GENERAL: I have the honor to acknowledge the receipt of your communication of this date, giving a copy of an official communication from Maj. Gen. U.S. Grant, U.S. Army, announcing the surrender of the garrison of Vicksburg.

Having defended this position as long as I deem my duty requires, I am willing to surrender to you, and will appoint a commission of three officers to meet a similar commission appointed by yourself at 9 o'clock this morning, for the purpose of agreeing upon and drawing up the terms of surrender; and for that purpose I ask for a cessation of hostilities. Will you please designate a point outside of my breastworks where the meeting shall be held for this purpose?

I am, general, very respectfully, your obedient servant,

 FRANK. GARDNER,

Major-General, Commanding C. S. Forces.

[Inclosure No. 4.]

HEADQUARTERS UNITED STATES FORCES,
Before Port Hudson, La., July 8, 1863--4.30 a.m.

 Maj. Gen. FRANK. GARDNER,  Comdg. C. S. Forces, Port Hudson, La,:

GENERAL: I have the honor to acknowledge the receipt of your communication of this date, stating that you are willing to surrender the garrison under your command to the forces under my command, and that you will appoint a commission of three officers to meet a similar commission appointed by me at 9 o'clock this morning, for the purpose of agreeing upon and drawing up the terms of the surrender.

 In reply, I have the honor to state that I have designated Brig. Gen. Charles P. Stone, Col. Henry W. Birge, and Lieut. Col. Richard B. Irwin as the officers to meet the commission appointed by you. They will meet your officers at the hour designated, at a point near where the flag of truce was received this morning. I will direct that active hostilities shall entirely cease on my part until further notice, for the purpose stated.

Very respectfully, your most obedient servant,

 N. P. BANKS,

 Major-General, Commanding.

[Inclosure No. 5.]

Articles of capitulation proposed between the commissioners on the part of the garrison of Port Hudson, La., and the forces of the United States before said place, July 8, 1863.

ARTICLE I. Maj. Gen. F. Gardner surrenders to the United States forces under Major-General Banks the place of Port Hudson and its dependencies, with its garrison, armament, munitions, public funds, and material of war, in the condition, as nearly as may be, in which they were at the hour of cessation of hostilities, viz, 6 a.m., July 8, 1863.

ART. II. The surrender stipulated in Article I is qualified by no condition, save that the officers and enlisted men composing the garrison shall receive the treatment due to prisoners of war, according to the usages of civilized warfare.

ART. III. All private property of officers and enlisted men shall be respected and left to their respective owners.

ART. IV. The position of Port Hudson shall be occupied to-morrow at 7 a.m. by the forces of the United States, and its garrison received as prisoners of war by such general officer of the United States service as may be designated by Major-General Banks, with the ordinary formalities of rendition. The Confederate troops will be drawn up in line, officers in their positions, the right of the line resting on the edge of the prairie south of the railroad depot, the left extending in the direction of the village of Port Hudson. The arms and colors will be piled conveniently, and will be received by the officers of the United States.

ART. V. The sick and wounded of the garrison will be cared for by the authorities of the United States, assisted, if desired by either party, by the medical officers of the garrison.

 CHAS. P. STONE,

Brigadier-General.

 W. R. MILES,

Colonel, Comdg. Right Wing of the Army, Port Hudson, La.

 WM. DWIGHT,

Brigadier-General.

 I. G. W. STEEDMAN,

Colonel, Commanding Left Wing.

 HENRY W. BIRGE,

Colonel, Commanding Third Brigade, Grover's Division.

 MARSHALL J. SMITH,

 Lieutenant-Colonel, and Chief of Heavy Artillery.

Approved:

 FRANK. GARDNER,

Major-general.

 N. P. BANKS,

Major-General, Commanding.

HDQRS. DEPT. OF THE GULF, NINETEENTH ARMY CORPS,
Port Hudson, La., July 10, 1863.

SIR: I have the honor to inform you that with the post there fell into our hands over 5,500 prisoners, including 1 major-general and 1 brigadier-general, 20 pieces of heavy artillery, 5 complete batteries, numbering 31 pieces of field artillery, a good supply of projectiles for light and heavy guns, 44,000 pounds of cannon powder, 5,000 stand of small-arms, 150,000 rounds of small-arms ammunition, besides a small amount of stores of various kinds.

We captured also two steamers, one of which is very valuable, and will be of great service at this time.

Upon the surrender, I found it necessary to move at once every available man to Donaldsonville, to dislodge the enemy, who had temporarily obstructed our communication with New Orleans, and to drive his forces from the La Fourche district, where he was in considerable numbers. My transportation was wholly insufficient for its duty, and our supplies limited. I was also compelled to garrison this post for the present by the nine-months' regiments, most of which are of opinion that their term of service has already expired, and the colored regiments. It became thus very difficult to remove, to supply, or to guard my prisoners. I decided, therefore, after the post had surrendered unconditionally, to release the noncommissioned officers and privates upon their parole. These paroles will be taken with more than the usual formalities. The consolidated list will be signed by the men themselves, by Major-General Gardner, and by the officer who receives the parole, and each man will be furnished with a duplicate parole signed by himself, his regimental commander, and the paroling officer. The men will then march out and disperse to their several homes. The officers will be kept in confinement until further orders.

Trusting that my course in this matter will be approved by you and by the Department, I have the honor to be, general, very respectfully, your most obedient servant,

 N. P. BANKS,

 Major-General, Commanding.

 Maj. Gen. H. W. HALLECK,

General-in-Chief, Washington, D.C.

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