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cted the correspondence. a New hope of defence. surrender of Forts Jackson and St. Philip. Gen. Duncan's speech on the Levee. Farragut's ultimatum. Hoisting of the Stars and Stripes over New Orlrdment had continued a whole week; the enemy had thrown over twenty-five thousand shells; and Gen. Duncan reported that two of his guns in Fort Jackson were dismounted; half a dozen killed and woundewas made in consequence of a mutiny of the garrisons. On examining his guns in Fort Jackson, Gen. Duncan found many spiked, several dismounted, and not less than three hundred men clamoring around him for a surrender. Remonstrances, threats, and entreaties were alike useless. In vain Gen. Duncan declared to the men that it would be an eternal shame to give up the works, provisioned as they weals. Nothing would satisfy them but surrender. Ragged, dusty, powder-blackened, and exhausted, Duncan reached New Orleans, to tell the story of the great misfortune; and as he narrated it on the lev