Bailey patrolled the waters off the Florida Panhandle until mid-November at which time his ship moved to a blockade station off the Mississippi Delta. Though Bailey technically retained command of "Colorado" until the beginning of May 1862, he was performing other duties in conjunction with the assault on the defenses of New Orleans by April 1862. When the push to take the city went off on April 24, Bailey commanded one of the gunboat divisions during the fight to pass Forts Jackson and St. Philip. Once that feat had been accomplished, he continued on upriver to demand the city's surrender on the 25th. Bailey and Lieutenant George Perkins walked to city hall despite armed civilians crowding around them, shouting threats. Mayor John Monroe refused to surrender the city, but as Confederate troops had already evacuated, the Union soon occupied New Orleans.