Governor Stanley endeavored by wise and conciliatory measures to win the confidence of the people, and thus restore peace to the State. To that end he proposed a conference with Governor Vance; but that functionary refused to meet him, and referred Stanley to the Confederate Government at Richmond.

Thousands of slaves flocked within the Federal lines, five thousand having collected in Newbern alone within three months after its occupation by the Union army.

Simultaneous with the campaign against Richmond undertaken by General Burnside, efforts were made to cut the rebel lines of communication between Richmond and the southwestern states. There are three lines of railroad running south and southwest. One running southwest, passes through southwestern Virginia, eastern Tennessee, northern Alabama, and connects with roads to western Tennessee, and to New Orleans. A southerly line connects Richmond with Wilmington, Charleston, Savannah, and parts of Alabama; while another southerly line passes through North and South Carolina. By cutting the former of these roads at Cumberland Gap, reinforcements and supplies could not be brought from the southwest for General Lee; neither could Lee aid General Bragg’s army at Murfreesboro’. By cutting the second the most direct communication between Richmond and the principal cities of the Confederate States was destroyed.

When General Rosecrans was preparing to move from Nashville to attack the Confederate army at Murfreesboro’, an expedition was sent into East Tennessee to destroy the railroad, and so prevent reinforcements from Richmond from reaching General Bragg. General Carter with a force of one thousand cavalry left London in Kentucky, December 21st, and entering Virginia between Cumberland Gap and Pound Gap, advanced within six miles of Bristol, burned the bridges across the Halston and Wataugo rivers, and took up portions of the track, destroying the rails for a distance of one hundred miles, almost to Jonesboro’. They captured five hundred prisoners, seven hundred stand of arms, and a large amount of stores. They reached Manchester, Kentucky, on the 6th of January, having lost only ten men in their hazardous but successful enterprise.

The expedition against the second line of railroads was undertaken in North Carolina, and forms the only subsequent military movement of importance in addition to those hitherto described in the department during the year. It was a march against Goldsborough and the destruction of the railroad at that place, which is the line connecting Charleston and Savannah with Richmond.

General J. G. Foster, who commanded the department after the departure of General Burnside, took charge of the expedition.

The force consisted of four brigades under Colonels Wessels, Amory, Stevenson and Lee; the Third New York and First Rhode Island batteries; also sections of the Twenty-third and Twenty-fourth New York Independent batteries, and the Third New York cavalry. It left Newbern on the morning of December 11, and moved on the Kingston road fourteen miles. Some parts of the road were obstructed by felled trees. On the next morning it advanced to the Vine Swamp road, having some sharp skirmishing with a small Confederate force. At this point three companies of cavalry were sent up the Kingston road as a demonstration, and the main force took the Vine Swamp road, thereby avoiding the obstructions and the Confederate forces. It was delayed to build the bridge over Beaver creek, where the Fifty-first Massachusetts and a section of artillery were left to hold it, and support the cavalry on the main road, and halted at a distance of four miles.

The next morning the main column advanced, turning to the left, and leaving the road it was upon to the right. At the intersection the Forty-sixth Massachusetts and a section of a battery were left as a feint and to hold the position.

On reaching Southwest creek a Confederate force was found posted on the opposite bank, about four hundred strong, and with three pieces of artillery. The creek was not fordable, and ran at the foot of a deep ravine. Under the protection of a battery the Ninth New Jersey effected a passage and formed on the opposite bank, where it was afterward supported by the Eighty-fifth Pennsylvania. This caused the Confederate force to retire with some skirmishing.

On the next day an advance upon Kinston was made, and the Confederate force found posted in a strong position about one mile from the place. An attack was at once made with the Ninth New Jersey in advance, and the position taken. The Confederate force retired across the Neuse river, with a loss of four hundred prisoners. On crossing, the bridge was set on fire, but soon extinguished by the advance of General Foster. The bridge was immediately repaired, and the column crossed, and occupied the town of Kinston. With constant skirmishing, the force of General Foster continued to advance until the 17th, when it reached Goldsborough. Here it burned two trestle-work culverts, destroyed a train of four railroad cars, water station, depot, etc., and some small arms which it was unable to carry off. After destroying other bridges, and capturing some small positions that had been occupied by a Confederate force, the expedition successfully returned to Newbern.