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May 28th. At three o’clock this morning hostilities commenced again between the two contending armies, with all its former ferocity, and the loud booming of cannon was in great contrast and bold relief to the low but quick mutterings of numerous volleys of musketry. The rumor of yesterday in regard to several thousand of our men being in their entrenchments we have since learned was untrue. Although the fortifications in and around Port Hudson are very formidable, and of such a nature as hard to be overcome, making this rebel stronghold almost another Gibraltar, still great confidence is put in General Banks that he will be able to surmount all these in time, and reduce the place. Admiral Farragut, on board the staunch and new sloop-of-war Monongahela, below Port Hudson, is aiding the army by all the means in his power towards the consummation of the reduction of this place. He has the sloops-of-war Richmond, Genesee, and iron-clad Essex at his command, with six mortar schooners, and I assure you he does not allow them long to remain idle, but whenever he thinks some execution can be done by the sending of a few shot or shell, grape or canister, among the rebels, they all go to work with a will to perform this duty. They are more or less engaged every day with the enemy; the rebels admit that it is not Banks they fear, but the ships, and if they were not around close to hand, Banks would have to look out for himself; without us their supplies would not be entirely cut off, and the blockade would therefore not be effective; they could not be reinforced by Kirby Smith’s band of guerrillas, or some other party, by crossing the river, or cutting their way through Banks’ handful of men. I give all praise, though, to Banks doing as well as he has with the forces (and quality) at his command; and although he has been repulsed, and has to fall back to his old position, in the late engagement with the Confederates, still we will not say he did not fight well and attempt to carry everything before him; but, although defeated, we look forward to the time when our arms will be successful, and that soon. Although we lost many men in these two days’ fighting, yet the enemy must admit of being much cut up, and his men demoralized, which weakens him for an early renewal of hostilities.