& Moore, to take a load of shingles from Suffolk to Philadelphia, and with a permit, dated October 1, from General Viele's assistant adjutant-general, the provost-marshal of Norfolk, to Cattell & Moore to send this schooner to Suffolk to load with shingles. Lieutenant Babcock, of the Morse, reports that this schooner is in ballast and that her master informed him that these shingles are for a private speculation and not for the army or navy. I had the honor to read to you my instructions from the Department on this subject and to communicate to you the substance of them on the 22nd ultimo. Under these instructions I cannot recognize this permit or allow this trade.

I have the honor to be, general, your obedient servant,

S. P. LEE,

Actg. Rear-Admiral, Commanding N. Atlantic Blockading Squadron.

WASHINGTON, D. C., October 6, 1862.

Major-General DIX, Fort Monroe:

GENERAL: Your communications of the 27th and 29th ultimo in regard to trade with Norfolk have been submitted to the Secretary of War, and I am directed to reply that trade with that post is under the general control of the Secretary of the Treasury. Nevertheless, as commanding officer of the department, you have full authority to compel all vessels to report to you for inspection, and to take such other measures as may be necessary to prevent frauds.

Very respectfully, your obedient servant,

H. W. HALLECK,

General-in-Chief.

UNITED STATES FLAG-SHIP MINNESOTA,

Off Newport News, Va., October 6, 1862.

Major General JOHN A. DIX, U. S. A.,

Commanding Seventh Army Corps, Fort Monroe, Va.:

GENERAL: Your communication to me of the 1st instant, and its inclosure, with my reply in copy, were referred to the honorable Secretary of the Navy. In reply thereto the Department writes that my decision in the matter is correct and in conformity with instructions and the law of blockade; that there must be no traffic - no return cargo; that supplies may be conveyed to the troops but not to the people of Norfolk and Virginia.

I respectfully request your aid in your department in putting a stop to all further attempts to violate the blockade and the instructions of the Department, which I have had the honor to communicate to you.

I have the honor to be, general, very respectfully, yours,

S. P. LEE,

Actg. Rear-Admiral, Commanding N. Atlantic Blockading Squadron.

HDQRS. DEPT. OF VIRGINIA, SEVENTH ARMY CORPS,
Fort Monroe, Va., October 6, 1862.

Actg. Rear-Admiral S. P. LEE,

Commanding North Atlantic Blockading Squadron:

ADMIRAL: I have the honor to acknowledge the receipt of your communication of this date, and to say in reply that I shall do all in my

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