PASS CHRlsTIAN, MISS., November 11, 1862. Lient. Gen. J. C. PEMBERTON, Commandiny Department No. 1: GENERAL: Agreeably to your orders I arrived here on Thursday, 6th instant. On examining the coast and the inhabitants thereon I found there had been many families gone to the enemys lines and more preparing to go. There has been direct communication carried on between this place and coast with the enemy for some time. There are also several persons employed in trading between this coast and New Orleans, thence forwarding their goods to Mobile, where they get higher prices than the poor of this coast can afford to pay, and many refusing Confederate money. Gold, silver, or U. S. Treasury notes seem to be the only money they want. I find that Pearl River is navi- gable and open to the enemys vessels as high up as Gainesville, and there are persons at that place awaiting the arrival of the enemys vessels to go to their lines, and others at Pearlington, seven miles below Gainesville, awaiting the same opportunity. Mr. Trimour, of Pearlington, who owns a saw-mill on West Pearl River, has taken sev- eral of his negroes to the mill for the avowed purpose of sawing lumber for the enemy. This river, as well as the whole coast~ could be guarded and prevent the landing of their vessels by putting eight or ten launches at different points, properly manned, and under the command of a naval officer, to act in connection with the land forces here or that may be placed here. The mills that may be found sawing for the enemy should be destroyed. The wharves also in front of this place and all others on this coast should be destroyed, thereby preventing the landing of the enemys ordnance at the different points. All small boats or vessels should be destroyed except those in use of the Govern- ment. There are at present several hundred runaway negroes on Cat Island who have got away by means of small boats, and are now employed in making charcoal for the enemy. Those families who go over to the enemy go for subsistence, and say they are actually starving. I know of cases where they have eaten nothing but corn bread for weeks. I would suggest the propriety of appointing an officer whose duty it might be to grant passes to those who are actually in need, and let them take charcoal or wood and bring back provisions for their own use, he preventiiig any speculating. That officer should be appointed immediately. Steps should be. taken to prevent general intercourse with the enemy or this coast will be entirely demoralized. Those escaped slaves now on Cat Island can easily be retaken if we had launches. I am informed that there are two launches on Pearl River belonging to the Government. The balance could be easily built, and with small expense, at or near Gainesville, or at Choteau Beuf, near Paseagoula. There is a coast of 100 miles to guard, but ten launches properly manned would do it, snpported by 1,000 land forces. The three coast counties have large numbers of cattle and sheep which will fall a prey to the enemys maraudiii g parties if this coast [is un]protected. A man by the name of Brown, living at Handsborough, took two Government launches, with two brass pieces, to Mobile and sold them, apparently without author- ity. There are two trading vessels expected in. I shall await them here and report in my next. There are a number of conscripts on this coast, all seafaring men. I would suggest detailing them to be under the command of the naval officer whom you may appoint. I will inquire more minutely and report in my next. A prominent citizen of Pearlington, Col. J. F. Claiborne, is in daily communication with the enemy, and no doubt keeps them advised of all that is going on in his neighborhood. He was, until the State seceded, timber agent for the United States Government. The cavalry under the command of Maj. A. C. Steede I find very efficient, and if properly equipped would be of considerable terror to the enemy. Respectfully submitted. JOHN CAYANAUGH, Captain, Eighth -Battalion Louisiana Artillery. P. S.I send this by Captain Garrett, of the navy, who can give you any further information you may require in regard to the coast and rivers.