mounts of stores at Bankston, and the machine-shops and public
property at Grenada, arriving at Vicksburg January 5th.

During the operations in Middle Tennessee, the enemy, with a force under
General Breckinridge, entered East Tennessee. On the 13th of November
he attacked General Gillem, near Morristown, capturing his artillery and
several hundred prisoners. Gillem, with what was left of his command,
retreated to Knoxville. Following up his success, Breckinridge moved to
near Knoxville, but withdrew on the 18th, followed by General Ammen.
Under the directions of General Thomas, General Stoneman concentrated
the commands of Generals Burbridge and Gillem near Bean's Station to
operate against Breckinridge, and destroy or drive him into Virginia
--destroy the salt-works at Saltville, and the railroad into Virginia
as far as he could go without endangering his command. On the 12th of
December he commenced his movement, capturing and dispersing the enemy's
forces wherever he met them. On the 16th he struck the enemy, under
Vaughn, at Marion, completely routing and pursuing him to Wytheville,
capturing all his artillery, trains, and one hundred and ninety-eight
prisoners; and destroyed Wytheville, with its stores and supplies, and
the extensive lead-works near there. Returning to Marion, he met a force
under Breckinridge, consisting, among other troops, of the garrison of
Saltville, that had started in pursuit. He at once made arrangements to
attack it the next morning; but morning found Breckinridge gone. He
then moved directly to Saltville, and destroyed the extensive salt-works
at that place, a large amount of stores, and captured eight pieces of
artillery. Having thus successfully executed his instructions, he
returned General Burbridge to Lexington and General Gillem to Knoxville.

Wilmington, North Carolina, was the most important sea-coast port left
to the enemy through which to get supplies from abroad, and send cotton
and other products out by blockade-runners, besides being a place of
great strategic value. The navy had been making strenuous exertions to
seal the harbor of Wilmington, but with only partial effect. The nature
of the outlet of Cape Fear River was such, that it required watching for
so great a distance that, without possession of the land north of New
Inlet, or Fort Fisher, it was impossible for the navy to entirely close
the harbor against the entrance of blockade-runners.

To secure the