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being made at Goldsboro, as designed, and because its possession by us would be of great value to you in case the movement of the enemy's main army or other circumstances should render advisable a concentration of your army at some point further south than Goldsboro. As soon as it became possible to navigate the Potomac I started from Alexandria with the Third division, Twenty-third Army Corps, under command of Major-General J. D. Cox, and reached the mouth of Cape Fear river on the ninth of February, and landed upon the peninsula near Fort Fisher. Major-General A. H. Terry, with about eight thousand men, then held a line across the peninsula about two miles above the fort, and occupied Smithville and Fort Caswell on the south side of the river, while the naval squadron, under Rear-Admiral Porter, occupied positions in Cape Fear river and off the coast, covering the flanks of General Terry's line. The enemy occupied Fort Anderson, on the west bank, with a collateral line runn