The Wilmington expedition has proven a gross and culpable failure. Many of the troops are back here. Delays and free talk of the object of the expedition enabled the enemy to move troops to Wilmington to defeat it. After the expedition sailed from Fort Monroe, three days of fine weather were squandered, during which the enemy was without a force to protect himself. Who is to blame will, I hope, be known.

U. S. GRANT, Lieutenant-General.

Porter sent dispatches to the Navy Department in which he complained bitterly of having been abandoned by the army just when the fort was nearly in our possession, and begged that our troops might be sent back again to cooperate, but with a different commander. As soon as I heard this I sent a messenger to Porter with a letter asking him to hold on. I assured him that I fully sympathized with him in his disappointment, and that I would send the same troops back with a different commander, with some reinforcements to offset those which the enemy had received. I told him it would take some little time to get transportation for the additional troops; but as soon as it could be had the men should be on their way to him, and there would be no delay on my part. I selected A. H. Terry to command.

It was the 6th of January before the transports could be got ready and the troops aboard. They sailed from Fortress Monroe on that day. The object and destination of the second expedition were at the time kept a secret to all except a few in the Navy Department and in the army to whom it was necessary to impart the information. General Terry had not the slightest idea of where he was going or what he was to do. He simply knew that he was going to sea and that he had his orders with him, which were to be opened when out at sea.

He was instructed to communicate freely with Porter and have entire harmony between army and navy, because the work before them would require the best efforts of both arms of service. They arrived off Beaufort on the 8th. A heavy storm, however, prevented a landing at Forth Fisher until the 13th. The navy prepared itself for attack about as before, and the same time assisted the army in landing, this time five miles away. Only iron-clads fired at first; the object being to draw the fire of the enemy's guns so as to ascertain their positions. This object being accomplished, they then let in their shots thick and fast. Very soon the guns were all silenced, and the fort showed evident signs of being much injured.

Terry deployed his men across the peninsula as had been done before, and at two o'clock on the following morning was up within two miles of the fort with a respectable abatis in front of his line. His artillery was all landed on that day, the 14th. Again Curtis's brigade of Ame's division had the lead. By noon they had carried an unfinished work less than a half mile from the fort, and turned it so as to face the other way.

Terry now saw Porter and arranged for an assault on the following day. The two commanders arranged their signals so that they could communicate with each other from time to time as they might have occasion. At day light the fleet commenced its firing. The time agreed upon for the assault was the middle of the afternoon, and Ames who commanded the assaulting column moved at 3.30. Porter landed a force of sailors and marines to move against the sea-front in co-operation with Ames's assault. They were under Commander Breese of the navy. These sailors and marines had worked their way up to within a couple of hundred yards of the fort before the assault. The signal was given and the assault was made; but the poor sailors and marines were repulsed and very badly handled by the enemy, losing 280 killed and wounded out of their number.

Curtis's brigade charged successfully though met by a heavy fire, some of the men having to wade through the swamp up to their waists to reach the fort. Many were wounded, of course, and some killed; but they soon reached the palisades. These they cut away, and pushed on through. The other troops then came up, Pennypacker's following Curtis, and Bell, who commanded the 3d brigade of Ames's division, following Pennypacker. But the fort was not yet captured though the parapet was gained.

The works were very extensive. The large parapet around the work would have been but very little protection to those inside except when they were close up under it. Traverses had, therefore, been run until really the work was a succession of small forts enclosed by a large one. The rebels made a desperate effort to hold the fort, and had to be driven from these traverses one by one. The fight continued till long after night. Our troops gained first one traverse and then another, and by 10 o'clock at night the place was carried. During this engagement the sailors, who had been repulsed in their assault on the bastion, rendered the best service they could by reinforcing Terry's northern line—thus enabling him to send a detachment to the assistance of Ames. The fleet kept up a continuous fire upon that part of the fort which was still occupied by the enemy. By means of signals they could be informed where to direct their shots.

During the succeeding nights the enemy blew up Fort Caswell on the opposite side of Cape Fear River, and abandoned two extensive works on Smith's Island in the river.