An event was soon to happen which seemed for the time an irreparable disaster to the American cause. Commodore Daniel T. Patterson, in command of the American naval forces, on learning of the approach of the British fleet, sent Lieutenant Thomas Ap Catesby Jones, with five gunboats, one tender, and a dispatch boat toward the passes out to Ship Island, to watch the movements of the British vessels. This little flotilla, barely enough for scout duty at sea, was the extent of our naval forces in the Gulf waters near. The orders were to fall back, if necessary, from near Cat Island to the Rigolets; and there, if hard pressed, to sink or be sunk by the enemy. Moving in waters too shallow for the large English ships to pursue, until the thirteenth, Lieutenant Jones sailed for Bay St. Louis. Sighting a large number of the enemy's barges steering for Pass Christian, he headed for the Rigolets. But the wind having died away and an adverse current set in, the little fleet could get no farther than the channel inside of Melheureux Island, being there partially grounded. Early on the morning of the fourteenth, a flotilla of barges formed in line was discovered coming from the direction of the enemy's ships, evidently to overtake and attack the becalmed gunboats. The two tenders, lying beyond the aid of the latter, were captured after a spirited resistance. The guns of these were now turned upon Lieutenant Jones' gunboats in a combined attack of the fleet of barges, forty-five in number, and a supporting squad of marines. The total equipment was twelve hundred men and forty-five pieces of artillery. The American defensive forces were seven small gunboats, manned by thirty guns and one hundred and eighty men. The enemy's oarsmen advanced their entire fleet in line of battle until the fire from the gunboats caused severe losses and some confusion in the movements of the barges. They then separated in three divisions and renewed the attack. The battle became general, and was contested fiercely for nearly two hours, when the gunboats, overpowered by numbers, were forced to surrender, losing six men killed and thirty-five wounded, among the latter Lieutenants Jones, Speddin, and McKeever, each in command of a boat. Several barges of the enemy were sunk, while their losses in killed and wounded were estimated at two to three hundred. Among the wounded were Captain Lockyer, in command, and other officers.

The preparations for defense on shore were now pushed forward with redoubled energy. General Jackson gave unremitting attention to the fortifying of all points which seemed available for the approach of the enemy; it was impossible to know at what point he might choose to make his first appearance on land. Captain Newman, in command of Fort Petit Coquille, at the Rigolets, next to Lake Pontchartrain, was reinforced, and the order given to defend the post to the last extremity. If compelled to abandon it, he was instructed to fall back on Chef Menteur. Swift messengers were sent to Generals Carroll and Thomas to make all speed possible with the Tennessee and Kentucky troops on their way to New Orleans. Also, a courier was dispatched to General Winchester, commanding at Mobile, warning of the possible danger of another attack on that place, since the loss of the gunboats. Major Lacoste, with the dragoons of Feliciana and his militia battalion of colored men, was directed, with two pieces of artillery, to take post at the confluence of Bayous Sauvage and Chef Menteur, throw up a redoubt, and guard the road. Major Plauche was sent with his battalion to Bayou St. John, north of the city, Major Hughes being in command of Fort St. John. Captain Jugeant was instructed to enlist and form into companies all the Choctaw Indians he could collect, a mission that proved nearly barren of results. The Baratarians, mustered into ranks and drilled for important services under their own officers, Captains Dominique You, Beluche, Sougis, Lagand, and Golson, were divided out to the forts named, and to other places where expert gunners were most needed.

On the eighteenth of December a grand review of the Louisiana troops was held by Jackson in front of the old Cathedral, now Jackson Square. The day was memorable by many incidents, not all in harmony with the purposes and plans of the civil and military leaders of defense. The entire population of the city and vicinity were present to witness the novel scenes, men and women vying with each other in applauding and enthusing the martial ardor of the soldiers on parade. Such an army, hastily improvised in a few brief days from city, country, and towns, made up of a composite of divergent race elements, as was that of the Louisiana contingent with the command of Jackson at New Orleans, was perhaps never paralleled in the history of warfare before. Major Plauche's battalion of uniformed companies was made up mainly of French and Spanish Creoles, with some of American blood, enlisted from the city; and from the same source came Captain Beale's Rifle Company, mostly American residents. The Louisiana militia, under General Morgan, were of the best element of the country parishes, of much the same race-types as Plauche's men, of newer material, and without uniforms. Then came the battalion of Louisiana free men of color, nearly three hundred strong, led by Major Lacoste, and another battalion of men of color, two hundred and fifty in number, commanded by Major Daquin, recruited from the refugees in New Orleans from St. Domingo, who had taken part in the bloody strifes in that island, and who bore like traditional hatred to the English, with all who spoke the French tongue. Add to the above a small detachment of Choctaw Indians; and lastly, the loyal pirates of Lafitte, who were patriotic enough to scorn the gold of England, and brave enough to offer their services and their lives, if need be, to the cause of our country; and together, these give us a picture of the men under review, whom Jackson was to lead to battle in a few days against the best-trained troops of Europe. Though of new material, and suddenly called into service, this provincial contingent of twelve hundred men, animated with the spirit of battle against an invading foe, proved themselves, when ably officered, the equals of the best troops in the field.

Jackson Declares Martial Law.

On the sixteenth, two days before the review, General Jackson issued from his headquarters an order declaring "the city and environs of New Orleans under martial law." This imperious edict was resorted to in the firm belief that only the exercise of supreme military authority could awe into silence all opposition to defensive operations. Every person entering the city was required to report himself to headquarters, and any one departing from it must procure a pass. The street lamps were extinguished at nine o'clock at night, and every one found passing after that hour was subject to arrest. All persons capable of bearing arms who did not volunteer were pressed into the military or naval service. Rumors were rife that British spies were secretly prowling in the city, and coming into the American camp. Reports of disloyal utterances and suspicious proceedings on the part of certain citizens came repeatedly to the ears of the commander-in-chief. More serious yet, he was aroused to fierce anger by personal and direct intelligence that certain leading and influential members of the Legislature favored a formal capitulation and surrender of Louisiana to the enemy, by that body, in the event of a formidable invasion, for the greater security of their persons and property. These persons had circulated a story that Jackson would burn the city and all valuable property in reach rather than let it fall into the hands of the British.

Determined that disloyalty should find no foothold to mar his military plans, or to disaffect the soldiery or citizens, General Jackson, on the day previous to his declaration of martial law, issued the following spirited order:

To the Citizens of New Orleans.

The Major-general commanding, has, with astonishment and regret, learned that great consternation and alarm pervade your city. It is true the enemy is on our coast and threatens to invade our territory; but it is equally true that, with union, energy, and the approbation of Heaven, we will beat him at every point his temerity may induce him to set foot on our soil. The General, with still greater astonishment, has heard that British emissaries have been permitted to propagate seditious reports among you, that the threatened invasion is with a view to restore the country to Spain, from the supposition that some of you would be willing to return to your ancient government. Believe not such incredible tales; your Government is at peace with Spain. It is the vital enemy of your country,—the common enemy of mankind, the highway robber of the world, that threatens you. He has sent his hirelings among you with this false report, to put you off your guard, that you may fall an easy prey. Then look to your liberties, your property, the chastity of your wives and daughters. Take a retrospect of the conduct of the British army at Hampton, and other places where it entered our country, and every bosom which glows with patriotism and virtue, will be inspired with indignation, and pant for the arrival of the hour when we shall meet and revenge these outrages against the laws of civilization and humanity.

The General calls upon the inhabitants of the city to trace this unfounded report to its source, and bring the propagator to condign punishment. The rules and articles of war annex the punishment of death to any person holding secret correspondence with the enemy, creating false alarm, or supplying him with provision. The General announces his determination rigidly to execute the martial law in all cases which may come within his province.

By command. Thomas L. Butler,