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of Battery Wagner. Instructions were given to the Chief of Subsistence to keep rations on Morris Island for 5000 men for thirty days, and on James Island rations for 5000 men for fifteen days, with a reserve supply in the city. On the same day the enemy's pickets along the Stono on John's Island were observed to be increased by the addition of negro troops. Brigadier-General Hagood made a reconnaissance of the enemy in his front on James Island. At daybreak, on the morning of the 16th of July, Brigadier-General Hagood, in accordance with instructions, attacked the enemy on James Island, driving them to the shelter of their gunboats and to Battery Island. The loss was small on both sides: 3 men killed, 12 wounded, and 3 missing on our side. The enemy lost 40 negroes killed, and 14 prisoners left in our hands. This retreat of the enemy was followed by the advance of our troops, who have occupied the ground ever since. In the engagement the gunboat Pawnee was forced to reti