Early on the morning of the 24th, I received, through Colonel Moreno, a communication from General Ampudia, proposing to evacuate the town; which, with the answer, were forwarded with my first despatch. I arranged with Colonel Moreno a cessation of fire until twelve o'clock, at which hour I would receive the answer of the Mexican general at General Worth's head-quarters, to which I soon repaired. In the mean time, General Ampudia had signified to General Worth, his desire for a personal interview with me, to which I acceded, and which finally resulted in a capitulation, placing the town and the material of war, with certain exceptions, in our possession. A copy of that capitulation was transmitted with my first despatch.

Upon occupying the city, it was discovered to be of great strength in itself, and to have its approaches carefully and strongly fortified. The town and works were armed with forty-two pieces of cannon, well supplied with ammunition, and manned with a force of at least 7000 troops of the line, and from 2000 to 3000 irregulars. The force under my orders before Monterey, was 425 officers and 6220 men. Our artillery consisted of one ten-inch mortar, two twenty-four-pounder howitzers, and four light field batteries of four guns each; the mortar being the only piece suitable to the operations of a siege.

Our loss is twelve officers and one hundred and eight men killed; thirty-one officers and three hundred and thirty-seven men wounded. That of the enemy is not known, but is believed considerably to exceed our own.

I take pleasure in bringing to the notice of the government the good conduct of the troops, both regulars and volunteers, which has been conspicuous throughout the operations. I am proud to bear testimony to their coolness and constancy in battle, and the cheerfulness with which they have submitted to exposure and privation. To the general officers commanding divisions, Major-Generals Butler and Henderson, and Brigadier-Generals Twiggs and Worth, I must express my obligations for the efficient aid which they have rendered in their respective commands. I was unfortunately deprived, early on the 21st, of the valuable services of Major-General Butler, who was disabled by a wound received in the attack on the city. Major-General Henderson, commanding the Texan volunteers, has given me important aid in the organization of the command, and its subsequent operations. Brigadier-General Twiggs rendered important services with his division, and as the second in command after Major-General Butler was disabled. Brigadier-General Worth was intrusted with an important detachment which rendered his operations independent of my own. These operations were conducted with ability, and crowned with complete success.

I desire also to notice Brigadier-Generals Hamer and Quitman, commanding brigades in General Butler's division; Lieutenant-Colonels Garland and Wilson, commanding brigades in General Twiggs' division; Colonels Mitchell, Campbell, Davis, and Wood, commanding the Ohio, Tennessee, Mississippi, and 2d Texas regiments, respectively; and Majors Lear, Allen, and Abercrombie, commanding the 3d, 4th, and 1st regiments of infantry; all of whom served under my eye, and conducted their commands with coolness and gallantry against the enemy. Colonel Mitchell, Lieutenant-Colonel McClung, Mississippi regiment, Major Lear, 3d Infantry, and Major Alexander, Tennessee regiment, were all severely wounded, as were Captain Lamotte, 1st Infantry, Lieutenant Graham, 4th Infantry, Adjutant Armstrong, Ohio regiment, Lieutenants Scudder and Allen, Tennessee regiment, and Lieutenant Howard, Mississippi regiment, while leading their men against the enemy's position, on the 21st and 23d. After the fall of Colonel Mitchell, the command of 1st Ohio regiment devolved upon Lieutenant-Colonel Weller; that of the 3d Infantry, after the fall of Major Lear, devolved in succession upon Captain Bainbridge and Captain Henry, the former being also wounded. The following named officers have been favorably noticed by their commanders: Lieutenant-Colonel Anderson, and Adjutant Heiman, Tennessee regiment; Lieutenant-Colonel McClung, Captains Cooper and Downing, Lieutenants Patterson, Calhoun, Moore, Russell, and Cook, Mississippi regiment; also Sergeant-Major Hearlan, Mississippi regiment, and Major Price, and Captain J. Smith, unattached, but serving with it. I beg leave also to call attention to the good conduct of Captain Johnston, Ohio regiment, and Lieutenant Hooker, 1st Artillery, serving on the staff of General Hamer, and of Lieutenant Nichols, 2d Artillery, on that of General Quitman. Captains Bragg and Ridgely served with their batteries during the operations under my own observation, and in part under my immediate orders, and exhibited distinguished skill and gallantry. Captain Webster, 1st Artillery, assisted by Lieutenants Donaldson and Bowen, rendered good service with the howitzer battery, which was much exposed to the enemy's fire on the 21st.

From the nature of the operations, the 2d Dragoons were not brought into action, but were usefully employed under the direction of Lieutenant-Colonel May, as escorts, and in keeping open our communications. The 1st Kentucky regiment was also prevented from participating in the action of the 21st, but rendered highly important services under Colonel Ormsby, in covering the mortar battery, and holding in check the enemy's cavalry during the day.

I have noticed above the officers whose conduct either fell under my immediate eye, or is noticed only in minor reports which are not forwarded. For further mention of individuals, I beg leave to refer to the reports of division commanders. I fully concur in their recommendations, and desire that they may be considered as a part of my own report.

From the officers of my personal staff, and of the engineers, topographical engineers, and ordnance, associated with me, I have derived valuable and efficient assistance during the operations. Colonel Whiting, assistant quartermaster-general, Colonels Croghan and Belknap, inspector generals, Major Bliss, assistant adjutant general, Captain Sibley, assistant quartermaster, Captain Waggaman, commissary of subsistence, Captain Eaton and Lieutenant Garnett, aids-de-camp, and Major Kirby and Van Buren, pay department, served near my person, and were ever prompt, in all situations, in the communication of my orders and instructions. I must express my particular obligations to Brevet-Major Mansfield and Lieutenant Scarritt, corps of Engineers. They both rendered most important services in reconnoitring the enemy's positions, conducting troops in attack, and strengthening the works captured from the enemy. Major Mansfield, though wounded on the 21st, remained on duty during that and the following day, until confined by his wound to camp. Captain Williams, Topographical Engineer, to my great regret and the loss of the service, was mortally wounded while fearlessly exposing himself in the attack of the 21st. Lieutenant Pope, of the same corps, was active and zealous throughout the operations. Major Munroe, chief of the Artillery, Major Craig and Captain Ramsay, of the Ordnance, were assiduous in the performance of their proper duties. The former superintended their mortar service on the 22d, as particularly mentioned in the report of General Worth, to which I also refer for the services of the engineer and topographical officers detached with the second division.

Surgeon Craig, medical director, was actively employed in the important duties of his department, and the medical staff generally were unremitting in their attentions to the numerous wounded; their duties with the regular regiments being rendered uncommonly arduous by the small number serving in the field.

I respectfully enclose herewith, in addition to the report of division commanders, a field return of the force before Monterey on the 21st of September; a return of killed, wounded and missing during the operations, and two topographical sketches, one exhibiting all the movements around Monterey, the other on a large scale illustrating more particularly the operations in the lower quarters of the city, prepared respectively by Lieutenants Meade and Pope, Topographical Engineers.