The levee of New Orleans was one scene of desolation. Ships, steamers, cotton, coal, etc., were all in one common blaze, and our ingenuity was much taxed to avoid the floating conflagration.

I neglected to mention my having good information respecting the iron-clad rams which they were building. I sent Captain Lee up to seize the principal one, the "Mississippi," which was to be the terror of these seas, and no doubt would have been to a great extent; but she soon came floating by us all in flames, and passed down the river. Another was sunk immediately in front of the Custom-House; others were building in Algiers, just begun.

I next went above the city eight miles, to Carrollton, where I learned there were two other forts, but the panic had gone before me. I found the guns spiked, and the gun-carriages in flames. The first work, on the right, reaches from the Mississippi nearly over to Pontchartrain, and has twenty-nine guns; the one on the left had six guns, from which Commander Lee took some fifty barrels of powder, and completed the destruction of the gun-carriages, etc. A mile higher up there were two other earthworks, but not yet armed.

We discovered here, fastened to the right bank of the river, one of the most herculean labors I have ever seen a raft and chain to extend across the river to prevent Foote's gunboats from descending. It is formed by placing three immense logs of not less than three or four feet in diameter and some thirty feet long ; to the center one a two-inch chain is attached, running lengthwise the raft, and the three logs and chain are then frapped together by chains from one half to one inch, three or four layers, and there are ninety-six of these lengths composing the raft; it is at least three quarters of a mile long.

On the evening of the 29th Captain Bailey arrived from below with the gratifying intelligence that the forts had surrendered to Commander Porter, and had delivered up all public property, and were being paroled, and that the navy had been made to surrender unconditionally, as they had conducted themselves with bad faith, burning and sinking their vessels while a flag of truce was flying and the forts negotiating for their surrender, and the "Louisiana," their great iron-clad battery, blown up almost alongside of the vessel where they were negotiating ; hence their officers were not paroled, but sent home to be treated according to the judgment of the Government.

General Butler came up the same day, and arrangements were made for bringing up his troops.

I sent on shore and hoisted the American flag on the Custom-House, and hauled down the Louisiana State flag from the City Hall, as the Mayor had avowed that there was no man in New Orleans who dared to haul it down ; and my own convictions are that if such an individual could have been found he would have been assassinated.

Thus, sir, I have endeavored to give you an account of my attack upon New Orleans, from our first movement to the surrender of the city to General Butler, whose troops are now in full occupation, protected, however, by the "Pensacola," "Portsmouth," and one gunboat, while I have sent a force of seven vessels, under command of Captain Craven, up the river, to keep up the panic as far as possible. The large ships, I fear, will not be able to go higher than Baton Rouge, while I have sent the smaller vessels, under Commander Lee, as high as Vicksburg, in the rear of Jackson, to cut off their supplies from the West.

I trust, therefore, that it will be found by the Government that I have carried out my instructions to the letter and to the best of my abilities, so far as this city is concerned. All of which is respectfully submitted.

I am, sir, very respectfully, your obedient servant,

D. G. FARRAGUT,

Flag-Officer, Western Gulf Blockading Squadron.

Hon. Gideon Weller,

Secretary of the Navy, Washington, D. C.