Two Union gunboats, the Southfield and Miami, were anchored in the river opposite the town. General Wessels’ garrison consisted of two thousand five hundred men, and was composed of the One Hundred and First, and the One Hundred and Third Pennsylvania infantry, the Eighty-fifth New York, the Sixteenth Connecticut, two companies of Massachusetts heavy artillery, two companies of North Carolina volunteers, and the Twelfth New York cavalry. About three P. M. on the 17th, the enemy made known his presence by a fierce artillery fire upon Fort Gray, which continued till midnight, and was commenced with increased force at daylight the next morning. Before noon two charges were made on the works, which were repulsed. The gunboats took position on either side of the town, and did effective service in driving back the enemy. But now a formidable opponent was approaching to attack them on their own element. A picket boat stationed up the river gave warning that the ram was coming down, and preparations were made to meet the dreaded enemy. The two boats were lashed together, and thus awaited the onset. When within one hundred yards the gunboats opened fire, but made no impression on the iron-clad. The ram now bore down on the Miami, upon whom she inflicted a slight blow, and gliding off, struck the Southfield on her left side, crushing in her timbers for a space of six or eight feet square. A shell thrown from the Miami now struck the ram on her invulnerable sides, and rebounding to the deck of the gunboat, killed her captain, Flusser, and wounded eight persons. The boats were torn asunder by their concussion with the ram, and as the Southfield was rapidly sinking, her crew escaped in the boats; while the Miami, swinging round with the current, was glad to make her escape from the unequal contest. The Albemarle now came down to the mouth of the river, and in that position held complete command of the town and its approaches, and effectually shut off all hope of reinforcements or supplies to the beleaguered garrison, who surrendered to Brigadier-General Hoke, commander of the Confederate forces, on the ensuing day. General Peck, the commander of the department, thus eloquently conveyed the intelligence to his companions in-arms. “HEADQUARTERS OF THE ARMY AND DISTRICT OF } NORTH CAROLINA, NEWBERN, N. C., APRIL 21, 1864. }