Weldon road and, consequently, our line of communication. His line now extend to Trenton on the west and White Oak River on the south. He probably contemplates extending them Kinston on the one hand and New River on the other.

Very respectfully, your obedient servant,

JOHN J. PECK,

Major-General.

HEADQUARTERS OF THE ARMY,
Washington, January 6, 1864.

Honorable E. M. STANTON,

Secretary of War:

SIR: I return herewith the Secretary of the Navy's confidential letter of the 2nd instant.

I am of opinion that all of our available forces not required to hold positions now in our possession should be sent to Louisiana and Texas, where they are now very much needed, and where they can operate with advantage during the winter. The occupation of Texas was not simply a military measure; it was one of State policy, decided upon by the President. General Banks has not a sufficient number of troops to defend Louisiana and the places he now holds in Texas, much less to drive the rebels from the portions of these States still in their possession. Unless the policy already adopted in regard to military operations west of the Mississippi be now abandoned the army there must be largely re-enforced, and if so re-enforced it is hoped that the Texas campaign will be terminated in time for other operations in the spring. It must also be borne in mind that all the armies in the field will be very seriously reduced in numbers during the next two or three months by furloughs given to those who re-enlist. If, in this condition of our forces, we attempt to accomplish too many things at the same time we shall probably fail in all.

The reduction of Fort Caswell alone will not secure to us the harbor of Smithville or close to the rebels and blockade-runners access to Wilmington. To accomplish these objects we must also capture the works on Smith's Island and those which command the New Inlet, a task not less difficult or requiring less time, even at a favorable season, than the reduction of Fort Sumter and the works on Morris Island.

It is the opinion of officers who have examined this question and are well acquainted with the localities and the obstacles to be overcome that Cape Fear River can be most easily secured by a force landing at Shandy Hill Inlet or New River Inlet and marching against Wilmington. This plan was agreed upon last year, but the forces intended for the expedition were diverted to Morris Island to co-operate with the proposed naval attack upon Charleston. Since then the defenses of Wilmington and Cape Fear River have been greatly strengthened, and it will now require a large force and probably a long time to effect their reduction. To attempt this in the present condition of our armies will involve the suspension of other and more important operations.

Under these circumstances I respectfully advise against the proposed expedition at the present time.

Very respectfully, your obedient servant,

H. W. HALLECK,

General-in-Chief.