NEWBERN, N.C, Saturday, July 25, 1863.
A very successful cavalry raid was made a few days since by a detachment comprising twelve companies of the Third New-York cavalry, three companies of Mix's new cavalry, Companies A, B and C of the Twelfth New-York cavalry, with one company North Carolina Union Volunteers, Brig.-Gen. POTTER in command.

The expedition left Newbern on Saturday morning, the 18th inst., and proceeded to Swift's Creek, seventeen miles north of Newbern, captured a picket station in command of Capt. WHITE, of Maj. WHITFORD's battery, with fifteen men, whom they paroled, destroying their camp equipage and guns. Our men then pushed on to Greenville, charging into the place, capturing a rebel Paymaster, with about $10,000 of North Carolina money in his possession.

Illustration from The Harper’s Weekly, 21 February 1863. P. 116.
Title: The effects of the proclamation - freed Negroes coming into our lines at Newbern, North Carolina
Source: LOC

The rebels had left, however, before our forces entered the place. While there, the jail was broken open, and 25 negroes released, who had been imprisoned for attempting to get inside our lines, in order to join the colored regiment at Newbern. They had been condemned to be shot, but the sentence will not be carried out; at least for the present it will not be, as they will soon be clad in the military blue of our army.

The detachment next proceeded to Sparta, where, dividing the forces, the Third New-York went toward the Welden and Wilmington Railroad, and the remainder left for Tarboro', which place they reached about 9 o'clock on Monday morning. The rebels had taken the alarm before that time, however, and leaving they took most of their valuables with them. A gunboat which was in process of construction was destroyed. Three loads of ammunition were thrown into the river. At the depot were several cars loaded with munitions of war and salt, which the rebels in their flight could not get off. They were destroyed, together with the passenger and freight depots.

One company of the Twelfth New-York, with one howitzer, under command of Lieut. CLARK, then crossed the Tar River, and proceeded about a mile up the banks, where they were met by a company of about 150 rebels, with artillery at long range, and under cover of the woods, They opened fire upon our men, killing one Captain of the Twelfth, wounding and taking prisoners the First and Second Lieutenants. Lieut. CLARK, the commander of the detachment, was knocked from his horse, and gave the command to retreat, taking to the woods, but after a severs march of thirteen miles, he reached his command in safety. The movement up the river was ordered by Gen. POTTER to draw the attention of any opposing force, which might interfere with that detachment which had gone the other route.

The detachment which left sparta for the railroad met with no opposition. When they reached the Rocky Mountain Railroad station they found a train of cars with engine, ready to start for the up country. When the cavalry charged into the place, the rebel engineer started the train, but before it was fully underway one of our boys, mounted on a fleet horse, dashed up to the engine, jumped into the tender and reversed the machinery, the original proprietor of the throttle jumping off and making far the woods.

In a hotel adjoining were some rebel officers dining. They expected a raid by our cavalry, but thought themselves safe for the present, and concluded to refresh the inner man. The result was a trip to Newbern. One of them had his arm in a sling, and was returning home on a furlough, having been wounded in the battle of Gettysburgh. The officers were made prisoners, and everything of value to the rebels was destroyed. On the railroad were six cars loaded with shot, shell, salt and stores for the rebel army. The cars and contents were entirely destroyed, as also was a cotton factory in full operation, employing about two hundred white women. The fine trestlework bridge was burned, with fifteen wagon loads of Quartermaster stores and a large quantity of turpentine, tar, resin, &c.

The detachments joined each other at Greenville, and returned here on Thursday afternoon. The men were completely worn out, having been five days and nights in the saddle. On the return they were so wearied that they went to sleep on their horses, and it required the utmost exertions of the officers to keep them from falling off and being left behind.

As it was, a number dropped out of the ranks. At the present writing it is impossible to give a correct account of the wounded and missing, probably 40 will cover it all, but as stragglers are coming in the loss may not be so many. The rebels harassed our men very much on the return. Every road seemed swarming with them, artillery commanding the crossings. At one time it seemed as if our men would be entirely cut off, but they were saved by colored guides, who conducted them by bridle paths to safety. Twelve hundred negroes fell into our column, of which 600 were retaken by the rebels.

The rest came in with our forces, and are thereby de facto free. The loss to the rebels by this raid must be very heavy. Railroad communications broken, bridges burnt, stores destroyed, and some 500 slaves lost to their traitor masters. A rebel mail-bag was taken, and one man of the Third New-York confiscated between three and four thousand dollars in gold. Another private, of the same battalion, at Tarboro' captured about forty thousand dollars in North Carolina scrip. Taken altogether the rebels must have lost nearly two millions of dollars worth of property, besides their "devoted" (?) negroes.

The lesson taught us by MORGAN et al. has been well learned, and we now have the balance on our side, Apropos, we see by the latest New-York papers that MORGAN has lost his prestige as well as all or his men in Ohio. Truly the fates seem now to fight against our enemies. I learn that an expedition, comprising Gen. HECKMAN's brigade, left Newbern this morning, taking nine days' rations. The men embarked in boats, and the officers took no horses with them. Speculation is idle as to its destination. However, we know from the material composing it, that its mission will be well done.

I clip the following from the Raleigh Daily Progress, of the 18th.
After all the assurances we have had of n great victory in Pennsylvania, and the "splendid condition" of our army at Hagerstown, Gen. LEE, the telegraph tells us, has recrossed the Potomac and is in Virginia. The advance has ended, the campaign is over, and Gen. LEE returns to the barren, desolated soil of Virginia, perhaps 25 per cent, weaker than when he left it.

Why he returns we shall hardly be permitted to know, but if the Richmond papers, especially the Enquirer, the supposed "Court Journal," has told the truth about the letter from Gen. LEE to the President relative to the victories the army had achieved, its ability to hold its position at Hagerstown, &c, the falling back was not a necessity.

Our own impression is that he fell back across the Potomac in obedience to positive and imperative orders -- orders that he could not disregard. Despite all the assertions of the Richmond papers over Richmond telegrams, "That all is quiet," "No excitement here," &c., somebody about Richmond has been scared.

The movements of Dix on the Peninsula, and the gunboat armada in James River, has caused a sort of panic, and it was desirable for the main army to come back to within supporting distance of the Capital. We hardly think Gen. LEE has consulted his own judgment or wishes in the backward movement. We see nothing that Gen. LEE can now do but fall back upon Richmond, and in that event, the whole of Western Virginia will again be overrun by the enemy.

We know that our men ??? much better in the enemy's country, where forage is abundant, and, if the war is to be continued, we favor the giving up of all places of trivial importance, that our forces may be massed and pushed forward upon their soil. Throw the whole army into two columns, and let one enter Pennsylvania and the other Ohio, and, be the result what it may.

It cannot be worse than will follow a continuance of the defensive policy; for if we continue to conduct the war upon our own soil, we shall have not only the armed legions of the North, in the shape of the Yankees themselves, to contend against, but within another year they wilt have at least half of our own slaves fighting against us. At best, the prospect is bad, but let us, if possible, do what fighting is to be done upon their own soil, and not upon ours. By carrying the war to their own doors, they might be induced to let us go and agree to a separation; but if we continue the defensive policy, we must expect eventually to be driven to the wall."

Source: https://www.nytimes.com/.../operation-in-north-carolina...