"R. E. LEE, General.

"PETERSBURG, Dec. 8th, 1864."

There are rumors of the enemy having effected a lodgment on the south side of the river, between Howell and Drewry's Bluff. This may be serious. I do not learn (yet) that the Dutch Gap Canal is finished; but the enemy landed from barges in the fog. Gen. Lee, some weeks ago, designated such a movement and lodgment as important and embarrassing, probably involving the holding of Petersburg.

Nothing from Bragg.

One of Gen. Early's divisions is passing through the city toward Petersburg.

DECEMBER 9TH.—Cold and cloudy; surface of the ground frozen.

Cannon heard below. More of Gen. Early's corps arriving. The papers contradict the report that Howlett's Battery has been taken. The opinion prevails that a battle will occur to-day.

It appears that but few of the enemy's forces were engaged in the demonstration on the south side, below Drewry's Bluff, and no uneasiness is felt on account of it.

We have nothing so far to-day from the enemy's column marching toward Weldon.

Gov. Smith, in his message to the Legislature now in session, recommends the employment of negro troops, even if it results in their emancipation. He also suggests an act, putting into the army civil officers of the State under forty-five years of age. At the same time he is exempting officers (State) under forty-five, and there is no compulsion on him.

A dispatch from Gen. Lee last night states that from the great number of wagons taken by the enemy on the Weldon Road, the movement is formidable, and indicates a purpose of prolonged operations.

At night—and snowing—a terrible night for the poor soldiers in the field!

DECEMBER 10TH.—Snowed two inches last night. Cloudy and damp this morning.

Guns were heard down the river last night at a late hour. Perhaps it was nothing more than shelling the enemy's canal.

We have nothing yet authentic from Georgia; but many rumors of much fighting.

It is said Gen. Hampton has got in front of the enemy's column at the Weldon Railroad, and is driving them back. Gen. Hill, it is presumed, is this side of them.

It is also reported that Gen. Longstreet is now (12 M.) attacking the enemy on this side of the river, and driving them. Distant guns can be heard southeast of us, and it may be true.

Major Cummings, Confederate States, Georgia, dispatches that the railroad between Atlanta and Chattanooga should be repaired immediately, to bring off supplies from Middle Tennessee. Gen. Bragg concurs.

The following was received from Gen. Bragg to-day, 11 A.M.:

"AUGUSTA, December 10th, 1864.—The following dispatch is just received from Gen. Wheeler, twenty-seven miles from Savannah, 10 P.M., 8th December. Enemy are still moving toward Savannah, obstructing the road in the rear, and resisting warmly this morning. I cannot learn that any have crossed the Savannah River. I hear artillery firing, far in my front; do not know what it means: 14th corps and Kilpatrick's cavalry on the river road; 15th on middle ground road; and 17th, and probably 20th, on Central Railroad.

"I think the force on the right bank of Ogeechee must be small."

DECEMBER 11TH, SUNDAY.—Cloudy and melting—snow vanishing rapidly. The thousand and one rumors of great achievements of Gen. Longstreet on the north side of the river seem to have been premature. Nothing official of any advantage gained over the enemy near the city has been received so far as I can learn. Gen. Lee, no doubt, directed Longstreet to make demonstrations on the enemy's lines near the city, to ascertain their strength, and to prevent more reinforcements being sent on the south side, where the struggle will occur, if it has not already occurred.

There is no doubt that the enemy's column sent toward Weldon has been checked, and great things are reported of Gen. Hampton's cavalry.

A battle must certainly occur near Savannah, Ga. Sherman must assail our lines, or perish between two fires.

President Lincoln's message to the Congress of the United States, republished in our papers, produces no marked effect. His adherence to a purpose of emancipation of the slaves, and his employment of them in his armies, will suffice for an indefinite prolongation of the war, and perhaps result in the employment of hundreds of thousands of slaves in our armies. The intimation, however, that all applications for "pardon," etc. have been and are still favorably entertained, will certainly cause many of our croakers who fall into the lines of the United States forces to submit. Others, though so disposed, have not an opportunity to signify their submission. But everything depends upon events in the field.

DECEMBER 12TH.—Clear and cold. Ice half an inch thick.

Gen. Longstreet is again in the old lines on this side of the river. The reconnoissance, however, is said to have been successful. Only a few were killed and wounded on either side.

And Grant's column was turned back from Meherrin bridge. Results of the movement unimportant, and the supposition is that both armies will now go into winter quarters, after a taste of this rigorous weather.

It is rumored and believed (though I have seen no dispatch to that effect) that Sherman has beaten and out-manoeuvred our generals, and got into communication with the Federal fleet.

I read President Lincoln's message carefully last night. By its commissions and omissions on Mexican affairs, I think he means to menace Louis Napoleon, who may speak out January 1st, 1865. Lincoln says:

"Mexico continues to be a theater of civil war. While our political relations with that country have undergone no change, we have at the same time strictly maintained neutrality between the belligerents."

And his reference to England is so equivocal, and his grouping of the Central and South American Republics so prominent, and the boastful allusion to the "inexhaustible" resources of the United States, may be considered as a premeditated threat to Great Britain.

A "confidential" letter came in to-day from Mr. Benjamin to the Secretary of War.

Dr. Powell has sent us a dozen ruta baga turnips, and a couple of quarts of excellent persimmons, which the family enjoys most thankfully.

Dispatches from Lee:

"HEADQUARTERS ARMY NORTHERN VIRGINIA,

"December 10th, 1864.

"HON. JAMES A. SEDDON, SECRETARY OF WAR.

"Gen. Hampton, after driving the enemy's cavalry upon his infantry, on the afternoon of the 8th, recrossed the Nottoway and reached Bellfield at daylight yesterday.

"In the afternoon the enemy attacked the position, but were successfully resisted. This morning the enemy is reported retiring and Hampton following.

"The bridge over the Meherrin was saved. Our loss, as far as known, was small. The garrison, under Garnett, and the reserves, behaved well. R. E. LEE."

"HEADQUARTERS ARMY NORTHERN VIRGINIA,

"December 10th, 1864.

"HON. JAMES A. SEDDON, SECRETARY OF WAR.

"About noon yesterday the first division of the Second Corps of the enemy, supporting their cavalry, forced back our cavalry pickets on the Vaughan Road, south of the Appomattox, and advanced toward Dinwiddie Court House.

"To-day our cavalry, reinforced by infantry, drove them back across Hatcher's Run, capturing a few prisoners and re-establishing our lines. R. E. LEE."

DECEMBER 13TH.—Cloudy and cold, but wind southeast.

The sullen sound of cannon heard this morning as usual down the river. I hear of no active operations there, although the ground is sufficiently frozen to bear horses and artillery.

Rumors of successes on the part of Sherman near Savannah are still in circulation.

The rich men are generally indignant at the President and Gov. Smith for proposing to bring a portion of the negroes into the army. They have not yet awakened to a consciousness that there is danger of losing all, and of their being made to fight against us. They do not even remove them beyond the reach of the enemy, and hundreds are daily lost, but still they slumber on. They abuse the government for its impressments, and yet repose in fancied security, holding the President responsible for the defense of the country, without sufficient men and adequate means.

The following dispatch from Gen. Bragg was received to-day at 10 P.M.:

"AUGUSTA, Dec. 12th.

"The telegraph having been cut, we get nothing from Savannah. A dispatch from Wheeler gives a copy of enemy's order for the line of investment around Savannah. It is about eight miles from the city, and was to have been reached on the 9th.

"B. BRAGG."

I have at length succeeded in getting a suit of clothes; it was made at the government shop for $50, the trimmings having been found (in the house) by my wife. The suit, if bought of a merchant and made by the city tailors, would cost some $1000. A Yankee prisoner (deserter) made the coat at a low price. The government means to employ them, if they desire it, in this manner. I am very thankful for my good fortune.

DECEMBER 14TH.—Cloudy, and thawing rapidly. All quiet below.

The bill to employ 40,000 negroes, as recommended by the President, for army purposes, though not avowedly to fight, has passed one House of Congress. So the President is master yet. There ought to be 100,000 now in the field.

An effort will be made by the government to put into the field the able-bodied staff and other officers on duty in the bureaus here. It will fail, probably, since all efforts have failed to put in their able-bodied clerks. If Bragg were here, and allowed his way, he would move them to the front.

The following dispatch was received from Gen. Bragg to-day:

"AUGUSTA, GA., Dec. 13th, 1864.—I go to Charleston to-morrow to see Gen. Beauregard, at his request. He has assigned me to duty.—B. B."

I got to-day from Major Cross, A. Q. M. Gen., an order to buy a pair of government shoes (British) for $10. They are most excellent in quality, heavy, with iron heels, etc., and would cost, if made here, $150. This good fortune is worthy of being thankful for.

The military officers in the bureaus, responsive to a resolution of the House of Representatives, are reporting their ages, and most of them admit they are able-bodied and fit for service in the field. They have no fear of being transferred to the front, supposing themselves indispensable as bureau officers.

DECEMBER 15TH.—Cloudy and cool.

A dispatch from the West states that the enemy have made a heavy raid from Bean's Station, Ky., cutting the railroad between Abingdon and Bristol, destroying government stores, engines, etc. Breckinridge and Vaughan, I suppose, have been ordered away. Dr. Morris, Telegraph Superintendent, wants to know of the Secretary if this news shall be allowed to go to the press.

The President is ill, some say very ill, but I saw indorsements with his own hand on the 13th (day before yesterday).

Our affairs seem in a bad train. But many have unlimited confidence in Gen. Beauregard, who commands in South Carolina and Georgia, and all repose implicit trust in Lee.

A writer in the Sentinel suggests that if we should be hard pressed, the States ought to repeal the old Declaration of Independence, and voluntarily revert to their original proprietors—England, France, and Spain, and by them be protected from the North, etc. Ill-timed and injurious publication!

A letter from G. N. Sanders, Montreal, Canada E., asks copies of orders (to be certified by Secretary of War) commanding the raid into Vermont, the burning, pillaging, etc., to save Lieut. Young's life. I doubt if such written orders are in existence—but no matter.

It is said the enemy have captured Fort McAlister, Savannah Harbor.

Mr. Hunter is very solicitous about the President's health—said to be an affection of the head; but the Vice-President has taken his seat in the Senate.

It was rumored yesterday that the President would surely die,—an idle rumor, perhaps. I hope it is not a disease of the brain, and incurable.

DECEMBER 16TH.—Clear and pleasant; subsequently cloudy and chilly.

All quiet below, save the occasional booming of our guns from the iron-clads.

The capture of Fort McAlister, Savannah, has caused a painful sensation. It is believed we have as many men on the Georgia coast as the enemy; but they are not the men of property—men of 1861-62; and those without property (many of them) are reluctant to fight for the benefit of the wealthy class, remaining at home.

The following dispatch from Gen. Bragg was received this morning:

"CHARLESTON, December 15th, 1864.—My services not being longer needed in this department, I shall leave this evening for Wilmington, and resume my command.

"Sherman has opened communication with his new base, by the Ogeechee. The means to meet him do not exceed one-half the estimate in yours of the 7th instant. BRAXTON BRAGG."

So ends Gen. Bragg's campaign against Sherman!

I have not heard about the President's health to-day. But no papers have come in from his office.

Lieut.-Col. Ruffin, Commissary Department, certifies (or Col. Northrop for him) that he is "not fit for duty in the field."

DECEMBER 17TH.—Warm and cloudy.

Quiet below.

The President was reported better, yesterday, to my wife, who called.

It is said Gen. Cooper, R. Ould, etc. etc. have never taken their compensation in Confederate States Treasury notes, hoping at a future day (which may not come) to draw specie or its equivalent!

It was reported on the streets, to-day, that the President was dead. He is much better; and will probably be at his office to-day.

The following telegram was sent over by the President this morning:

"SAVANNAH, GA., December 16th, 1864.—Sherman has secured a water base, and Foster, who is already nearly on my communications, can be safely and expeditiously reinforced. Unless assured that force sufficient to keep open my communications can be sent me, I shall be compelled to evacuate Savannah.—W. J. HARDEE, Lieut.-Gen."

Alas for President Davis's government! It is now in a painful strait. If reinforcements be sent from here, both Savannah and Richmond may fall. Gen. Bragg will be crucified by the enemies of the President, for staying at Augusta while Sherman made his triumphant march through Georgia; and the President's party will make Beauregard the scape-goat, for staying at Charleston—for sending Hood North—which I am inclined to think he did not do, but the government itself.

Capt. Weiniger (government clothing warehouse) employs about 4000 females on soldiers' clothes.

Some people still believe the President is dead, and that it is attempted to conceal his death by saying he is better, etc. I saw his indorsements on papers, to-day, dated the 15th, day before yesterday, and it was a bold hand. I am inclined almost to believe he has not been sick at all! His death would excite sympathy: and now his enemies are assailing him bitterly, attributing all our misfortunes to his incompetence, etc. etc.

SUNDAY, DECEMBER 18TH.—Raining.

The old dull sound of bombs down the river. Nothing further from Savannah. It is now believed that the raiders in Western Virginia did not attack Saltville, and that the works are safe. For two days the speculators have been buying salt, and have put up the price to $1.50 per pound. I hope they will be losers. The State distributes salt to-morrow: ten pounds to each member of a family, at 20 cents per pound.

The President's malady is said to be neuralgia in the head—an evanescent affliction, and by no means considered dangerous. At least such is the experience in my family.

It was amusing, however, to observe the change of manner of the Secretaries and of heads of bureaus toward Vice-President Stephens, when it was feared the President was in extremis. Mr. Hunter, fat as he is, flew about right briskly.

If Savannah falls, our currency will experience another depreciation, and the croaking reconstructionists will be bolder.

The members of the Virginia Assembly propose paying themselves $50 per day!

Congress has not yet passed the act increasing the compensation of members.

DECEMBER 19TH.—The darkest and most dismal day that ever dawned upon the earth, except one. There was no light when the usual hour came round, and later the sun refused to shine. There was fog, and afterward rain.

Northern papers say Hood has been utterly routed, losing all his guns!

A letter from Mr. ——— to ———, dated Richmond, December 17th, 1864, says: "I have the honor to report my success as most remarkable and satisfactory. I have ascertained the whole Yankee mail line, from the gun-boats to your city, with all the agents save one. You will be surprised when informed, from the lowest to the highest class. The agent in your city, and most likely in your department, has yet to be discovered. This is as certain as what we have learned (his arrest, I mean), for the party in whose hands the mail is put coming from your city is known to us; and we have only to learn who gives him the mail, which can be done upon arrest, if not sooner, to know everything. What shall be done with the parties (spies, of course) when we are ready to act? If you ever intimate that trials are tedious, etc., the enemy seize citizens from some neighborhood as hostages, when their emissaries are disturbed. I will dispatch, if it be authorized, and that will end the matter. The lady I spoke to you of is the fountain-head. What to do with females troubles me, for I dislike to be identified with their arrest.

"I request that a good boat, with three torpedoes, and a man who understands working them, be sent to Milford to report to me at Edge Hill. Let the man be mum on all questions. I would meet him at Milford, if I knew the day (distance is twenty-five miles), with a wagon, to take him, torpedoes, and boat to the point required. I must be sure of the day.

"Have the following advertisement published in Monday's papers:

"'YANKEES ESCAPED! $1000 REWARD!—A Yankee officer and three privates escaped from prison on Thursday night, with important matter upon their persons. The above reward will be given for their detection.'

"Let me hear from you through Cawood's Line, upon receipt of this. Respectfully, etc. ———."

We have the spectacle now of three full generals—Johnston, Beauregard, and Bragg—without armies to command; and the armies in the field apparently melting away under the lead of subordinate, if not incompetent leaders. So much for the administration of the Adjutant-General's office.

Governor Smith is still exempting deputy sheriffs, constables, etc.—all able-bodied.

It is rumored on the street that we intend evacuating Savannah. How did that get out—if, indeed, such is the determination? There are traitors in high places—or near them.

It is also rumored that the Danville Railroad has been cut. I don't believe it—yet.

There is deep vexation in the city—a general apprehension that our affairs are rapidly approaching a crisis such as has not been experienced before. There is also much denunciation of the President for the removal of Gen. Johnston from the command of the Army of Tennessee.

Hon. Mr. Foote declared, Saturday, that he would resign his seat if the bill to suspend the writ of habeas corpus, now pending, became a law. There is much consternation—but it is of a sullen character, without excitement.

The United States Congress has ordered that notice be given Great Britain of an intention on the part of the Federal Government to increase the naval force on the lakes; also a proposition has been introduced to terminate the Reciprocity Treaty. And Gen. Dix orders his military subordinates to pursue any rebel raiders even into Canada and bring them over. So, light may come from that quarter. A war with England would be our peace.

At 2 P.M. it was rumored that Charleston is taken and Beauregard a prisoner. Also that Gen. Jos. E. Johnston (in the city) says Richmond will be evacuated in ten days. I do not learn what gold sells at to-day! I suspect some coup d'etat is meditated.

DECEMBER 20TH.—A brighter morning, cool and clear.

The President was at work yesterday. He and the Secretary and Gen. Cooper put their heads together to make up a regiment for Col. Miller in Mississippi, and designate the two field officers to be under him—from two battalions and two unattached companies.

If the Northern (purporting to be official) accounts be true, Gen. Hood has sustained an irretrievable disaster, which may involve the loss of Tennessee, Georgia, etc.

Hon. Mr. Foote declared last night his purpose to leave the city in a few days, never to resume his seat in Congress, if martial law should be allowed. He said he had information that when Charleston fell, South Carolina would conclude a treaty of peace (submission?) with the United States; and that North Carolina was prepared to follow the example! I have observed that these two States do not often incline to go together.

The great disaster would be the loss of Richmond and retreat of Lee's army southward. This would probably be followed by the downfall of slavery in Virginia.

The Secretary of War has sent an agent to the Governor of North Carolina, to ask for special aid in supplying Lee's army with meat—which is deficient here—or else it cannot be maintained in the field in Virginia! Very bad, and perhaps worse coming.

There is a rumor that Gen. Breckinridge has beaten Gen. Burbridge in Tennessee or Western Virginia.

Gen. R. E. Lee is in town, looking robust, though weather-worn. He complains that the department is depleting his army by details, often for private and speculative purposes, to the benefit of private individuals—speculators.

I drew my (State) salt to-day, 70 pounds, for 7 in family—20 cents per pound. It retails at a $1 per pound!

Mr. Secretary —— has sent (per Lieut.-Col. Bayne) some gold to Wilmington, to buy (in Nassau) loaf sugar for his family, to be brought in government steamers.

My son Thomas could get no beef ration to-day—too scarce.

DECEMBER 21ST.—Raining; rained all night.

The following dispatch was received this morning:

"WILMINGTON, December 20th, 1864,10 A.M.—The head of the enemy's fleet arrived off this port during last night. Over thirty steamers are now assembling, and more are following.—BRAXTON BRAGG."

It may be hoped that Gen. Bragg will do something more than chronicle the successes of the enemy this time. He is nearer to him than when he remained at Augusta; and yet the press could be made reticent on arrivals, etc.

Lieut.-Col. Sims, Assistant Quartermaster General, has contracted with the Southern Express Company to transport all the funds of the Quartermaster's Department—hundreds of millions!

Mr. Hunter was with the Secretary this morning, when I laid before the latter Bragg's dispatch. I doubt not it failed to contribute to a mollification of their painful forebodings.

By Northern papers I see President Lincoln disapproves Gen. Dix's order to troops to cross the Canada line in pursuit of raiders.

Gold is $45 for one to-day.

The army has no meat this day, the commissaries, etc. have it all, and are speculating with it—it is said. So many high officials are interested, there is no remedy. We are at the mercy of the quartermasters, commissaries, railroad companies, and the Southern Express Company. The President and Secretary either cannot or will not break our shackles.

An official account states the number of houses burnt by the enemy in Atlanta to be 5000!

There is a rumor of another and a formidable raid on Gordonsville. The railroad is now exclusively occupied with the transportation of troops—perhaps for Wilmington. The raid may be a ruse to prevent reinforcements being sent thither.

The Andersonville Report belongs to the Adjutant-General's Office, and therefore has not come back to me.

DECEMBER 22D.—Clear and cold. We have nothing from below. From Wilmington, we learn there is much commotion to resist the armada launched against that port. Gen. Lee is sending troops via the Danville Road in that direction.

The wire has been cut between this and Gordonsville, by the scouts of the raiders launched in that direction. We breakfast, dine, and sup on horrors now, and digest them all quite sullenly.

I am invited to a turkey dinner to-day (at Mr. Waterhouse's), and have some hesitation in accepting it at a time like this. Ought I to go? He is a skilled artisan and has made money, and no doubt the turkey is destined to be eaten by somebody.

At an auction this morning, a Jew bid off an old set of tablespoons, weighing twelve ounces and much worn, at $575. He will next buy his way out of the Confederacy. Mr. Benjamin and Judge Campbell have much to answer for in allowing such men to deplete the South of its specie, plate, etc. There were some commissaries and quartermasters present, who are supposed to have stolen much from the government, and desire to exchange the currency they have ruined for imperishable wealth. They, too, will run away the first opportunity.

The sun shines brightly this beautiful cold day; but all is dark in Congress. The Tennessee members say Hood's army is destroyed, that he will not get 1000 men out of the State, for the Tennesseeans, Kentuckians, etc. refuse to retire farther south, but straggle and scatter to their homes, where they will remain.

I am told we have but a thin curtain of pickets on the north side of the James River, between us and 15,000 negro troops.

The President is at work at his residence, not having yet come down to his office; and I learn it is difficult to get his attention to any business just now but appointments; had to get him to sign a bill passed by Congress to pay the civil officers of the government. No doubt he is anxious and very unhappy.

Hon. Mr. Foote's wife has just got a passport to return home to Nashville, Tennessee!

DECEMBER 23D.—Bright and very cold.

A storm has driven off a portion of the enemy's fleet before Wilmington.

The raid toward Gordonsville and Charlottesville is not progressing rapidly. We shall have a force to meet it.

Besides the demonstration against Savannah (from which place we have no recent tidings), it appears that an attempt on Mobile is in progress. Too many attempts—some of them must fail, I hope.

From the last accounts, I doubted whether Hood's army has been so badly shattered as was apprehended yesterday.

Gen. Price (trans-Mississippi) has brought out a large number of recruits from Missouri.

I dined out yesterday, and sumptuously; the first time for two years.

Congress has done but little, so far. They are at work on the Currency bill!

Mr. Enders, broker, and exempted as one of the Ambulance Committee, I am informed paid some $8000 yesterday to Mitchell & Tyler for a few articles of jewelry for his daughter. And R. Hill, who has a provision shop near the President's office, I understand expended some $30,000 on the wedding of his daughter. He was poor, I believe, before the war.

I got an order from Lieut. Parker, Confederate States Navy, for a load of coal to-day. Good! I hope it will be received before the last on hand is gone.

The enemy's raiders camped within seven miles of Gordonsville, last night; and it will be ten o'clock to-day before our reinforcements can reach there. I hope our stores (commissary) will not be lost—as usual.

Mr. S. Norris, Signal Bureau, has just (1 P.M.) sent the following: "I am just informed that Mr. Smithers, telegraph operator at Gordonsville, is again in his office. He says fighting is going on in sight—that troops from Richmond have arrived, and arriving—and it is expected that Gen. Lomax will be able to drive the enemy back."

Just before 3 P.M. to-day a dispatch came from Mr. Smithers, telegraph operator at Gordonsville, dated 1 o'clock, saying the enemy have been repulsed and severely punished, and are retreating the way they came, toward Sperryville. He adds that many of the enemy's dead now lie in sight of the town. So much for this gleam of good fortune, for I believe the military authorities here were meditating an evacuation of the city.

Gen. Custis Lee was at the department to-day, after the clerks detailed from his command. All, all are to be dragged out in this bitter cold weather for defense, except the speculators, the extortioners, the land and slave owners, who really have something tangible to defend, and these have exemptions or "soft places."

DECEMBER 24TH.—Christmas eve! Clear and cold.

A dispatch from Hon. J. L. Orr and H. V. Johnson (on their way home) informs the Secretary that from the delay in the transportation of troops over the Piedmont Railroad, there must be either criminal neglect or treachery concerned in it.

Again it is rumored that Savannah has been evacuated. There is something in the air that causes agitation in official circles. Mr. Secretary Seddon's room was locked nearly all day yesterday.

If troops cannot be transported expeditiously over the Piedmont Road, fears may be entertained for Wilmington, when, the gale subsiding, the enemy's fleet has reappeared.

There is a rumor on the street that the government is to be removed to Lynchburg.

Gen. Lee has induced the President and Secretary of War to call for the clerks (detailed ones) to repair to the trenches again—this weather. The emergency must be great, as these soldiers get, as clerks, $4000 per annum, and rations, etc.

A dispatch from Gen. Bragg.

"WILMINGTON, N. C., December 23d, 1864.—The fleet, which drew off in the rough weather, is again assembled; seventy vessels now in sight on the coast. The advance of the troops (C. S.) only reached here to-night.—B. B."

The clerks are drawing lots; one-half being ordered to the trenches. Of two drawn in this bureau (out of five) one is peremptorily ordered by the Secretary to remain, being sickly, and the other has an order to go before a medical board "to determine whether he is fit for service in the trenches for a few days." Great commotion naturally prevails in the departments, and it is whispered that Gen. Lee was governed in the matter by the family of the President, fearing a Christmas visit from the negro troops on this side the river.

The following note was received to-day from the Vice-President:

"RICHMOND, VA., December 23d, 1864.—Hon. Jas. A. Seddon, Secretary of War: Will you please send me, through the post-office, a passport to leave the city? I wish to depart in a few days. Yours respectfully,

"ALEX. H. STEPHENS."

The President is hard at work making majors, etc.

SUNDAY, DECEMBER 25TH. CHRISTMAS!—Clear and pleasant—white frost.

All quiet below. But it is believed on the street that Savannah has been evacuated, some days ago. I have not yet seen any official admission of the fact.

We have quite a merry Christmas in the family; and a compact that no unpleasant word shall be uttered, and no scramble for anything. The family were baking cakes and pies until late last night, and to-day we shall have full rations. I have found enough celery in the little garden for dinner.

Last night and this morning the boys have been firing Christmas guns incessantly—no doubt pilfering from their fathers' cartridge-boxes. There is much jollity and some drunkenness in the streets, notwithstanding the enemy's pickets are within an hour's march of the city.

A large number of the croaking inhabitants censure the President for our many misfortunes, and openly declare in favor of Lee as Dictator. Another month, and he may be unfortunate or unpopular. His son, Gen. Custis Lee, has mortally offended the clerks by putting them in the trenches yesterday, and some of them may desert.

Many members of Congress have gone home. But it is still said they invested the President with extraordinary powers, in secret session. I am not quite sure this is so.

I append the following dispatches:

"HEADQUARTERS ARMY OF NORTHERN VIRGINIA,

"December 23d, 1864.

"HON. JAMES A. SEDDON, SECRETARY OF WAR.

"On the 20th, Gen. Early reported one division of the enemy's cavalry, under Gen. Custer, coming up the valley, and two divisions, under Gen. Torbert, moving through Chester Gap, with four pieces of artillery and thirty wagons.

"On the 22d, Rosser attacked Custer's division, nine miles from Harrisonburg, and drove it back, capturing forty prisoners.

"This morning, Torbert attacked Lomax near Gordonsville, and was repulsed and severely punished. He is retreating, and Lomax preparing to follow. R. E. LEE."

"DUBLIN, December 20th, 1864.

"A dispatch from Gen. Breckinridge to-day, dated at Mount Airy, sixteen miles west of Wytheville, says he had fought the enemy for two days, successfully, near Marion. The enemy had retired from his front; but whether they were retreating to East Tennessee or not, he had not ascertained."

"CHARLESTON, December 22d, 1864.

"TO GEN. S. COOPER.

"On the 16th inst., the enemy, 800 strong, occupied Pollard. After burning the government and railroad buildings, they retired in the direction they came.

"They were pursued thirty miles, losing a portion of their transportation, baggage, and supplies, and leaving many dead negro troops on the road.

"Our force, commanded by Gen. Liddell, acted with spirit and gallantry. G. T. BEAUREGARD, General."

"OUR INDIAN TROOPS.—Gen. Stand Watie, commanding our Indian troops in the trans-Mississippi Department, has fully clothed and armed all his men, and is in the vicinity of Fort Smith, attacking and destroying Yankee wagon trains."

DECEMBER 26TH.—Raining—rained all night. The dark and dismal weather, together with our sad reverses, have made the countenances of croakers in the streets and in the offices more gloomy and somber than ever, foreboding evil in the future. No one doubts the evacuation of Savannah, and I suppose it must be so. Hardee had but 8000 reliable men. The Georgians in Lee's army are more or less demoralized, and a reward of a sixty days' furlough is given for shooting any deserter from our ranks.

An old black chest, containing mostly scraps and odds and ends of housekeeping, yet brought on by my family from Burlington, has remained four years unopened, the key being lost. We have felt an irrepressible anxiety to see its contents, for even rubbish is now valuable. I got a locksmith to send a man to pick the lock, last week, but he failed to find the house, and subsequently was sent to the trenches. I borrowed twenty-five keys, and none of them would fit. I got wire, and tried to pick the lock, but failed. Yesterday, however, when all were at church, I made another effort, prizing at the same time with the poker, when the screws of the hasp came out and the top flew up, revealing only "odds and ends" so far as I could see. I closed it, replaced the striped cover, and put the cage with the parrot on it, where it usually remains. The day, and the expressed objection of my wife to have the lock broken or injured, have, until to-day, restrained me from revealing to the family what I had done. But now I shall assemble them, and by a sort of Christmas story, endeavor to mollify my wife's anticipated displeasure. The examination of the contents will be a delightful diversion for the children, old and young.

My impromptu Christmas tale of the old Black Chest interested the family, and my wife was not angry. Immediately after its conclusion, the old chest was surrounded and opened, and among an infinite variety of rubbish were some articles of value, viz., of chemises (greatly needed), several pairs of stockings, 1 Marseilles petticoat, lace collars, several pretty baskets, 4 pair ladies' slippers (nearly new), and several books—one from my library, an octavo volume on Midwifery, 500 pages, placed there to prevent the children from seeing the illustrations, given me by the publisher for a notice in my paper, The Madisonian, more than twenty years ago. There were also many toys and keepsakes presented Mrs. J. when she was an infant, forty years ago, and many given our children when they were infants, besides various articles of infants' clothing, etc. etc., both of intrinsic value, and prized as reminiscences. The available articles, though once considered rubbish, would sell, and could not be bought here for less than $500.

This examination occupied the family the remainder of the day and night—all content with this Christmas diversion—and oblivious of the calamities which have befallen the country. It was a providential distraction.

DECEMBER 27TH.—A night of rain—morning of fog and gloom. At last we have an account of the evacuation of Savannah. Also of the beginning of the assault on Port Fisher and Caswell below Wilmington, with painful apprehensions of the result; for the enemy have landed troops above the former fort, and found no adequate force to meet them, thanks to the policy of the government in allowing the property holders to escape the toils and dangers of the field, while the poor, who have nothing tangible to fight for, are thrust to the front, where many desert. Our condition is also largely attributable to the management of the Bureau of Conscription—really the Bureau of Exemption.

I saw to-day a letter from Gen. Beauregard to Gen. Cooper, wherein it was indicated that Gen. Hood's plan of penetrating Tennessee was adopted before he (Gen. B.) was ordered to that section.

The enemy did occupy Saltville last week, and damaged the works. No doubt salt will "go up" now. The enemy, however, have retired from the place, and the works can be repaired. Luckily I drew 70 pounds last week, and have six months' supply. I have two months' supply of coal and wood—long enough, perhaps, for our residence in Richmond, unless the property owners be required to defend their property. I almost despair of a change of policy.

It is reported that Sherman is marching south of Savannah, on some new enterprise; probably a detachment merely to destroy the railroad.

An expedition is attacking, or about to attack, Mobile.

All our possessions on the coast seem to be the special objects of attack this winter. If Wilmington falls, "Richmond next," is the prevalent supposition.

The brokers are offering $50 Confederate States notes for $1 of gold.

Men are silent, and some dejected. It is unquestionably the darkest period we have yet experienced. Intervention on the part of European powers is the only hope of many. Failing that, no doubt a negro army will be organized—and it might be too late!

And yet, with such a preponderance of numbers and material against us, the wonder is that we have not lost all the sea-board before this. I long since supposed the country would be penetrated and overrun in most of its ports, during the second or third year of the war. If the government would foster a spirit of patriotism, the country would always rise again, after these invasions, like the water of the sea plowed by ships of war. But the government must not crush the spirit of the people relied upon for defense, and the rich must fight side by side with the poor, or the poor will abandon the rich, and that will be an abandonment of the cause.

It is said Gen. Lee is to be invested with dictatorial powers, so far as our armies are concerned. This will inspire new confidence. He is represented as being in favor of employing negro troops.

A dispatch from Lieut.-Gen. Hardee (to the President), December 24th, 1864, at Charleston, S. C., says he may have to take the field any moment (against Sherman), and asks a chief quartermaster and chief commissary. The President invokes the special scrupulosity of the Secretary in the names of these staff officers.

DECEMBER 28TH.—Rained all night; warm.

A large stable burned down within sixty yards of our dwelling, last night, and not one of the family heard the uproar attending it.

Gen. Bragg telegraphs the President that the enemy failed to reduce Fort Fisher, and that the troops landed above the fort have re-embarked. But he says the enemy's designs are not yet developed; and he is such an unlucky general.

We found a caricature in the old black chest, of 1844, in which I am engaged in fight with the elder Blair. Calhoun, Buchanan, etc. are in the picture.

It is still believed that Gen. Lee is to be generalissimo, and most people rejoice at it. It is said the President and Gen. Jos. E. Johnston have become friends again.

DECEMBER 29TH.—Rained all night; spitting snow this morning.

Although Gen. Bragg announces that the enemy's fleet has disappeared off Wilmington, still the despondency which has seized the croakers remains. It has probably sailed against Charleston, to co-operate with Sherman. Sherman says officially that he got, with Savannah, about 1000 prisoners, 150 heavy guns, nearly 200 cars and several locomotives, 35,000 bales of cotton, etc. etc. And Gen. Foster says the inhabitants (20,000) were "quiet, and well disposed." Most people believe Charleston will fall next, to be followed by a sweep of the entire sea-board; and grave men fear that the impetus thus given the invader cannot be checked or resisted.

The great want is fighting men, and they are mostly exempted or detailed under that portion of the "War Department" which is quietly worked by Judge Campbell, who is, of course, governed by his own great legal judgment. Well, the President has been informed of this, and yet waits for Mr. Secretary Seddon to suggest a remedy. I have often thought, and still think, that either the Bureau of Conscription must be abolished or the government must fail. The best generals will not avail without sufficient men to fight.

Gen. Beauregard telegraphs from Charleston, December 26th, that there is a conflict of authority at Mobile as to which branch of the service, navy or army, shall command the torpedo boat. The two Secretaries are referring it to commanders, and I fear that, by the time the question is settled, some calamity will befall the boat, and the city, and the country.

Grant is said to be moving troops to the north side of the river again, fearing an attack from us, or intending one himself.

DECEMBER 30TH.—A clear night and frosty morning.

We have no news except that gleaned from Northern papers. Gen. Hood is unable to cross the Tennessee River (now swollen), and would soon be attacked again by superior numbers.

Congress was in secret session yesterday, probably perfecting the bill for the suspension of the privilege of habeas corpus.

Gen. Bragg is credited with the repulse of the enemy at Wilmington.

During the late raid a close-fisted farmer lost heavily: several hundred barrels of flour and corn, one hundred barrels of apples, a large amount of bacon and sorghum, which he was hoarding, and thus contributing to produce famine in the midst of plenty. His neighbors (those few not following his example) express no sympathy for him. The enemy did not burn Liberty Mills—once in their possession, in which is stored a large amount of grain—for some unexplained reason.

The enemy's papers show that they have regular and expeditious intercourse with parties here, and are kept correctly advised of everything that transpires. This is a continuance of Mr. Benjamin's policy by Mr. Seddon. It may be lucrative to those immediately interested; but if not abated, will be the death of the Confederate States Government—as I have told them all repeatedly.

And the "Bureau of Conscription" still exists, and seems destined to "be in at the death."

I paid Lieut. Parker just $30.75 for a load of coal; selling at $75.

I saw selling at auction, to-day, second-hand shirts at $40 each, and blankets at $75. A bedstead, such as I have bought for $10, brought $700. But $50 in Confederate States paper are really worth only $1 in specie.

Jos. R. Anderson & Co. writes that unless their hands are sent in from the trenches, they cannot fill orders for ordnance stores; and Gen. Gorgas (he has been promoted) approves it, saying it is known that a number of these hands intend to desert the first opportunity.

The last call for the clerks to return to the trenches was responded to by not a man of Capt. Manico's company, War Department proper.

DECEMBER 31ST.—The last day of the year. Snowing and wet.

Gen. H. Cobb writes that the existing Conscription Bureau is a failure so far as Georgia, Alabama, etc. are concerned, and can never put the men in the field.

Wm. Johnston, president of the Charlotte (N. C.) and South Carolina Railroad, suggests the construction, immediately, of a railroad from Columbia, S. C, to Augusta, Ga., which might be easily accomplished by April or May. It would take that length of time for the government to "consider of it." It will lose two railroads before it will order the building of one.

There is supposed to be a conspiracy on foot to transfer some of the powers of the Executive to Gen. Lee. It can only be done by revolution, and the overthrow of the Constitution. Nevertheless, it is believed many executive officers, some high in position, favor the scheme.

To-morrow Gen. Lee's army is to be feasted with turkeys, etc. contributed by the country, if the enemy will permit them to dine without molestation. The enemy are kept fully informed of everything transpiring here, thanks to the vigilance of the Provost Marshal, detectives, etc. etc.

Gen. Cobb writes that he is arresting the men who remained in Atlanta during its occupation by Sherman, and subjecting themselves to suspicion, etc. Better march the men we have against Sherman now, who is still in Georgia!

Gen. Lee writes that Grant is concentrating (probably for an attack on Richmond), bringing another corps from the Valley; and if the local troops are brought in, he does not know how to replace them. His army diminishes, rather than increases, under the manipulations of the Bureau of Conscription. It is a dark and dreary hour, when Lee is so despondent!

Senator Henry writes that any delay in impressing the railroad from Danville to Greensborough will be fatal.



CHAPTER XLVI.

Waning confidence in the President.—Blockade running.—From the South.— Beauregard on Sherman.—The expeditions against Wilmington.—Return of Mr. Pollard.—The Blairs in Richmond.—Arrest of Hon. H. S. Foote.—Fall of Fort Fisher.—Views of Gen. Cobb.—Dismal.— Casualties of the War.—Peace commissioners for Washington.

SUNDAY, JANUARY 1ST, 1865.—Snowed a few inches in depth during the night—clear and cool morning. The new year begins with the new rumor that Gen. Hood has turned upon Gen. Thomas and beaten him. This is believed by many. Hood's army was not destroyed, and he retreated from before Nashville with some 20,000 men. Doubtless he lost many cannon; but the Federal accounts of his disaster were probably much exaggerated.

The cabinet still remains.

The President is considered really a man of ability, and eminently qualified to preside over the Confederate States, if independence were attained and we had peace. But he is probably not equal to the role he is now called upon to play. He has not the broad intellect requisite for the gigantic measures needed in such a crisis, nor the health and physique for the labors devolving on him. Besides he is too much of a politician still to discard his old prejudices, and persists in keeping aloof from him, and from commanding positions, all the great statesmen and patriots who contributed most in the work of preparing the minds of the people for resistance to Northern domination. And the consequence is that many of these influential men are laboring to break down his administration, or else preparing the people for a return to the old Union. The disaffection is intense and wide-spread among the politicians of 1860, and consternation and despair are expanding among the people. Nearly all desire to see Gen. Lee at the head of affairs; and the President is resolved to yield the position to no man during his term of service. Nor would Gen. Lee take it.

The proposition to organize an army of negroes gains friends; because the owners of the slaves are no longer willing to fight themselves, at least they are not as "eager for the fray" as they were in 1861; and the armies must be replenished, or else the slaves will certainly be lost.

Thus we begin the new year—Heaven only knows how we shall end it! I trust we may be in a better condition then. Of one thing I am certain, the PEOPLE are capable of achieving independence, if they only had capable men in all departments of the government.

The President was at St. Paul's to-day, with a knit woolen cap on his head. Dr. Minnegerode preached a sermon against the croakers. His son has been appointed a midshipman by the President.

JANUARY 2D.—Cold, and indications of snow.

Offered the owner of our servant $400 per annum. He wants $150 and clothing for her. Clothing would cost perhaps $1000. It remains in abeyance.

Saw Gen. Wise dancing attendance in the Secretary's room. He looks seasoned and well, and may be destined to play a leading part "in human affairs" yet, notwithstanding his hands have been so long bound by those who contrive "to get possession." It is this very thing of keeping our great men in the "background" which is often the cause of calamities, and if persisted in, may bring irretrievable ruin upon the cause.

The government has forbidden the transportation of freight, etc. (private) from Georgia to Virginia, and perhaps from the intermediate States.

On Saturday the government entered the market to sell gold, and brought down the price some 33 per cent. A spasmodic effort, the currency is gone beyond redemption.

It is said Gen. Hood has collected a large amount of supplies of meat, etc. He is in North Alabama, and probably Gen. Thomas will march toward Virginia.

The Secretary had his head between his knees before the fire when I first went in this morning. Affairs are gloomy enough—and the question is how Richmond and Virginia shall be saved. Gen. Lee is despondent.

From the Northern papers we learn that Gen. Butler's expedition against Wilmington, N. C, was a failure. Gen. Bragg is applauded here for this successful defense.

The salaries of the clergymen have been raised by their congregations to $10,000 and $12,000. I hear that Dr. Woodbridge received a Christmas gift from his people of upwards of $4000, besides seven barrels of flour, etc. He owns his own house, his own servants, stocks, etc. Most of these fortunate ministers are natives of the North, but true to the Southern cause, so far as we know. God knows I am glad to hear of any one, and especially a minister, being made comfortable.

JANUARY 3D.—Calm and quiet; indications of snow.

By a communication sent to Congress, by the President, it is ascertained that 500,000 pairs shoes, 8,000,000 pounds bacon, 2,000,000 pounds saltpeter, 50 cannon, etc. etc., have been imported since October 1st, 1864.

When the enemy's fleet threatened Wilmington, the brokers here (who have bribed the conscript officers) bought up all the coffee and sugar in the city. They raised the price of the former from $15 to $45 per pound, and the latter to $15, from $10. An application has been made to Mr. Secretary Seddon to order the impressment of it all, at schedule prices, which he will be sure not to do.

Congress paid their respects to the President yesterday, by waiting upon him in a body.

There is a rumor of some fighting (12 M.) below, but I have not learned on which side of the river. It arises from brisk cannonading, heard in the city, I suppose.

I bought an ax (of Starke) for $15, mine having been stolen. I was asked from $25 to $35 for no better. Mr. Starke has no garden seeds yet.

The following article in the Dispatch to-day, seemingly well authenticated, would seem to indicate that our armies are in no danger of immediately becoming destitute of supplies; but, alas! the publication itself may cause the immediate fall of Wilmington.

"BLOCKADE-RUNNING.—Notwithstanding the alleged ceaseless vigilance of the Yankee navy in watching blockade-runners on the Atlantic and Gulf Coast of the Confederate States, their close attention has amounted to comparatively little. Setting aside all that has been imported on State and individual account, the proceeds of the blockade have been very great. The restrictions imposed upon foreign commerce by the act of Congress of last session prohibiting, absolutely, during the pending war, the importation of any articles not necessary for the defense of the country—namely: wines, spirits, jewelry, cigars, and all the finer fabrics of cotton, flax, wool, or silk, as well as all other merchandise serving only for the indulgence of luxurious habits,—has not had the effect to reduce the number of vessels engaged in blockade-running; but, on the contrary, the number has steadily increased within the last year, and many are understood to be now on the way to engage in the business.

"The President, in a communication to Congress on the subject, says that the number of vessels arriving at two ports only from the 1st of November to the 6th of December was forty-three, and but a very small proportion of those outward bound were captured. Out of 11,796 bales of cotton shipped since the 1st of July last, but 1272 were lost—not quite 11 per cent.

"The special report of the Secretary of the Treasury in relation to the matter shows that there have been imported into the Confederacy at the ports of Wilmington and Charleston since October 26th, 1864, 8,632,000 pounds of meat, 1,507,000 pounds of lead, 1,933,000 pounds of saltpeter, 546,000 pairs of shoes, 316,000 pairs of blankets, 520,000 pounds of coffee, 69,000 rifles, 97 packages of revolvers, 2639 packages of medicine, 43 cannon, with a large quantity of other articles of which we need make no mention. Besides these, many valuable stores and supplies are brought, by way of the Northern lines, into Florida; by the port of Galveston and through Mexico, across the Rio Grande.

"The shipments of cotton made on government account since March 1st, 1864, amount to $5,296,000 in specie. Of this, cotton, to the value of $1,500,000, has been shipped since the 1st of July and up to the 1st of December.

"It is a matter of absolute impossibility for the Federals to stop our blockade-running at the port of Wilmington. If the wind blows off the coast, the blockading fleet is driven off. If the wind blows landward, they are compelled to haul off to a great distance to escape the terrible sea which dashes on a rocky coast without a harbor within three days' sail. The shoals on the North Carolina Coast are from five to twenty miles wide; and they are, moreover, composed of the most treacherous and bottomless quicksands. The whole coast is scarcely equaled in the world for danger and fearful appearance, particularly when a strong easterly wind meets the ebb tide.

"It is an easy matter for a good pilot to run a vessel directly out to sea or into port; but in the stormy months, from October to April, no blockading vessel can lie at anchor in safety off the Carolina Coast. Therefore supplies will be brought in despite the keenest vigilance."

JANUARY 4TH.—Bright, but several inches of snow fell last night.

The President wrote a long letter to the Secretary yesterday concerning the assignment of conscripts in Western North Carolina, at most only a few hundred, and the appointment of officers, etc. A small subject.

Congress has passed a resolution calling on the Secretary of War for information concerning certain youths, alleged to have received passports to Europe, etc. Also one relating to the Commissary-General's traffic in Eastern North Carolina, within the enemy's lines. Also one relating to instructions to Gen. Smith, trans-Mississippi Department, who assumes control of matters pertaining to the Treasury Department.

General J. S. Preston, Superintendent Bureau of Conscription, writes a long letter from South Carolina indorsing an act of the Legislature authorizing the impressment of one-fifth of the slaves between eighteen and fifty, for work on the fortifications within the State, but also providing for impressment of an additional number by the Confederate States Government. This, Gen. P. considers a treasonable move, indicating that South Carolina, North Carolina, Alabama, Mississippi, etc. have a purpose to disintegrate Confederate authority, and that they will not contribute another man, black or white, to the Confederate service, to be commanded by Confederate States authority. And he has several thrusts at Gen. Bragg and Gen. Kemper, and, indirectly, at the President, for interfering with his bureau. I see nothing in the act to warrant his interpretations, and I have no faith in his predictions.

W. F. D. Saussure and others, Columbia, S. C., petition the government to send a corps of Lee's army to save their State and Georgia from devastation, as there are no adequate forces in them for defense. They confess that Richmond is important to hold, but insist that Georgia and South Carolina must be defended to hold it, etc. They are frightened evidently.

Gen. Withers, Alabama, denounces the inefficiency of the conscript system.

Lieut. Beverly Kermon writes from the Rappahannock that "thus far (to Jan. 1st) our movements (in connection with Capt. T. N. Conrad) are perfectly secret." The next day he was to go to the Potomac. What has the Secretary sent him there for?

J. R. Bledsoe presents a design for a "new flag," red, white, and blue cross, which Gen. Lee thinks both original and beautiful.

Judge Campbell has a box of clothing, sent from London by J. B. Bloodgood.

JANUARY 5TH.—Clear and cold.

It is understood now that Gen. Hood has crossed to the south side of the Tennessee River with the debris of his army.

Gen. Butler has returned to Virginia from his fruitless North Carolina expedition. It is supposed we shall have active operations again before this city as soon as the weather and roads will permit.

But it really does seem that the States respectively mean to take control of all their men not now in the Confederate States armies, and I apprehend we shall soon have "confusion worse confounded."

The President sends, "for his information," to the Secretary of War, a letter from Gen. Beauregard, dated at Augusta, Ga., Dec. 6th, 1864, in relation to Gen. Sherman's movement eastward, and Gen. Hood's Middle Tennessee campaign. It appears from Gen. B.'s letter to the President that he (Gen. B.) had control of everything. He says he did not countermand Gen. Hood's campaign, because Sherman had 275 miles the start, and the roads were impracticable in Northern Georgia and Alabama. But he telegraphed the Governors of Alabama, Georgia, etc., to concentrate troops rapidly in Sherman's front, ordered a brigade of cavalry from Hood to Wheeler, etc., and supposed some 30,000 men could be collected to oppose Sherman's march, and destroy him. He computed Sherman's strength at 36,000 of all arms. The result shows how much he was mistaken. He will be held accountable for all the disasters. Alas for Beauregard! Bragg only played the part of chronicler of the sad events from Augusta. Yet the President cannot publish this letter of Beauregard's, and the country will still fix upon him the responsibility and the odium. Gen. Beauregard is still in front of Sherman, with inadequate forces, and may again be responsible for additional calamities.

Old Mr. F. P. Blair and his son Montgomery Blair are on their way here, with authority to confer on peace and submission, etc.

Mr. Lewis, Disbursing Clerk of the Post-Office Department, on behalf of lady clerks has laid a complaint before the President that Mr. Peck, a clerk in the department, to whom was intrusted money to buy supplies in North Carolina, has failed to make return of provisions or money, retaining the latter for several months, while some of his friends have received returns, besides 10 barrels flour bought for himself, and transported at government expense. Some of the clerks think the money has been retained for speculative purposes. It remains to be seen whether the President will do anything in the premises.

The grand New Year's dinner to the soldiers, as I supposed, has produced discontent in the army, from unequal distribution, etc. No doubt the speculators got control of it, and made money, at least provided for their families, etc.

Hon. J. R. Baylor proposes recruiting in New Mexico and Lower California. The Secretary of War opposes it, saying we shall probably require all the trans-Mississippi troops on this side the river. The President differs with the Secretary, and writes a long indorsement, showing the importance of Baylor's project, etc. Of course the Secretary will "stint and say ay." The President thinks Col. B. can enlist the Indian tribes on our side also.

There is a rumor that Mr. Foote, M. C., has gone into the enemy's lines. He considered the difference between Davis and Lincoln as "between tweedledum and tweedledee."

The prisoners of war (foreigners) that took the oath of allegiance and enlisted in the Confederate States service, are deserting back to the Federal service, under Gen. Sherman's promise of amnesty.

JANUARY 6TH.—Cloudy and thawing.

No war news,—but it is known Sherman's army is not quiet, and must soon be heard from in spite of the interdict of the government.

It is said Mr. Trenholm, Secretary of the Treasury, is in the market buying gold, and that the fall has already been from $50 to $30 for one.

Corn-meal has risen from $50 up to $75 per bushel. Flour to $500 per barrel.

Vice-President Stephens has not left the city, but presides in the Senate.

Messrs. B. Woolley, Hart & Co., Nassau, N. P., write most pressing letters for the liquidation of their claims against the Confederate States Government. Perhaps they are becoming alarmed after making prodigious profits, etc.

Conner's brigade and other troops are en route for South Carolina from Lee's army.

Judge Campbell, Assistant Secretary of War, was smoked out of his room to-day, and came into mine.

The judge, however, does but little more just now than grant passports into the enemy's lines; permission to speculators to bring into the city supplies for sale, often under pretense of being intended for their own use; exemptions, details, etc. If he were disposed, he could realize a million of dollars.

It is said the Hon. A. R. Wright went North to get his son paroled, who is in prison there.

Judge Campbell talks of resigning.

JANUARY 7TH.—Rained yesterday and last night. Clear and windy to-day.

It is said the Blairs (who have been looked for on some sort of mission) turned back after arriving in the camp of Gen. Grant. Of course they could not treat with this government, under existing circumstances. The President and his cabinet could not be expected to listen to such proposals as they might be authorized to tender.

Butler's canal is said to be completed, and probably operations will soon be recommenced in this vicinity.

Congress seems to be doing little or nothing; but before it adjourns it is supposed it will, as usual, pass the measures dictated by the President. How insignificant a legislative body becomes when it is not independent. The Confederate States Congress will not live in history, for it never really existed at all, but has always been merely a body of subservient men, registering the decrees of the Executive. Even Mr. Miles, of South Carolina, before introducing a bill, sends it to this department for approval or rejection.

Detailed soldiers here are restricted in their rations this month to 31 pounds of meal, 21 pounds of salt beef, etc. The commissary agent, Mr. Wilson, thinks no more "beef shanks" can be sold. I have been living on them!

An order has been issued that all detailed men in the bureaus (able-bodied) must go into Gen. Lee's army; and the local defense troops will not be called out again except in the last necessity, and then only during the emergency. I have not seen it, but believe Gen. Lee has some such understanding with the President.

Mayor Arnold, and other rich citizens of Savannah, have held a meeting (Union), and called upon Gov. Brown to assemble a State Convention, etc.

Mr. Hunter followed Judge Campbell into his office this morning (a second visit), as if there were "any more news." The judge gravely beckoned him into the office. I was out; so there must be news, when Mr. H. (so fat) is on the qui vive.

Gen. Beauregard has been ordered to the West to take command of Hood's army.

The Secretary of War has ordered Col. Bayne to have as much cotton as possible east of Branchville, S. C.

The farmers down the river report that Grant is sending off large bodies of troops—so the Secretary says in a letter to Gen. Lee.

JANUARY 8TH.—Bright and cold. Snowed yesterday, and windy.

Gen. Whiting writes that he had only 400 men in Fort Fisher, and it was a miracle that it was not taken. He looked for it, and a determined effort would have carried it. He says there is no reason to suppose the attempt has been abandoned, and it must fall if a sufficient force be not sent thither.

If the enemy are apprised of the weak condition of the fort, it is probable Grant has been sending another and a stronger expedition there, and it may be apprehended that before many days Wilmington will cease to be of value to us as a blockade-running port of entry.

I saw the Hon. Mr. Montague to-day, who told me there was a strong party in Congress (which he opposed) in favor of making Gen. Lee generalissimo without the previous concurrence of the President. He says some of the Georgia members declare that their State will re-enter the Union unless Lee be speedily put at the head of military affairs in the field—he being the only man possessing the unlimited confidence of the people. I agreed with him that the President ought to be approached in a proper manner, and freely consulted, before any action such as he indicated; and I told him that a letter from Gen. Beauregard, dated 6th of December, to the President, if ever published, would exculpate the latter from all blame for the march (unopposed) of Sherman through Georgia.

Col. Baylor, whom the President designated the other day as the proper man to raise troops in New Mexico, Arizona, Lower California and in Mexico, is the same man who invited the Indians to a council in 1861, to receive presents, whisky, etc., and then ordered them, men, women, and children, to be slaughtered. Even Mr. Randolph revolted at such conduct. But now the government must employ him.

The rotund Mr. Hunter is rolling about actively to-day, hunting for more news. His cheeks, though fat, are flat and emaciated—for he sees affairs in a desperate condition, and he has much to lose.

JANUARY 9TH.—Bright, clear, and cold.

It is said the government depot at Charlotte, N. C., has been burned (accidentally), consuming a large amount of corn.

We have nothing further of the movement of Grant's troops.

We have Hood's acknowledgment of defeat, and loss of 50 guns before Nashville.

The papers contain the proceedings of a meeting in Savannah, over which the Mayor presided, embracing the terms of submission offered in President Lincoln's message. They have sent North for provisions—indicating that the city was in a famishing condition. Our government is to blame for this! The proceedings will be used as a "form," probably, by other cities—thanks to the press!

The Examiner is out this morning for a convention of all the (Confederate) States, and denouncing the President. I presume the object is to put Lee at the head of military affairs.

The rumor of the death of Gen. Price is not confirmed.

Gen. Pemberton has been relieved here and sent elsewhere.

The Piedmont Railroad has been impressed. A secret act of Congress authorizes it.

Miers W. Fisher writes that if the cabinet indorses the newspaper suggestions of giving up slavery and going under true monarchies, it is an invitation to refugees like himself to return to their homes, and probably some of the States will elect to return to the Union for the sake of being under a republican government, etc. He says it is understood that the Assistant Secretary often answers letters unseen by the Secretary; and if so, he can expect no answer from Mr. S., but will put the proper construction on his silence, etc.

Flour is $700 per barrel to-day; meal, $80 per bushel; coal and wood, $100 per load. Does the government (alone to blame) mean to allow the rich speculators, the quartermasters, etc. to starve honest men into the Union?

JANUARY 10TH.—Rained hard all night. House leaking badly!

We have nothing new in the papers this morning. It is said with more confidence, however, that Butler's canal is not yet a success. Daily and nightly our cannon play upon the works, and the deep sounds in this moist weather are distinctly heard in the city.

The amount of requisition for the War Department for 1865 is $670,000,000, and a deficiency of $400,000,000!

Mr. Hunter had his accustomed interview with Judge Campbell this morning in quest of news, and relating to his horoscope. His face is not plump and round yet.

A Mr. Lehman, a burly Jew, about thirty-five years old, got a passport to-day on the recommendation of the Secretary of the Treasury, to arrange (as agent, no doubt) for the shipment of several thousand bales of cotton, for which sterling funds are to be paid. No doubt it is important to keep the government cotton out of the hands of the enemy; and this operation seems to indicate that some fear of its loss exists.

Some 40,000 bushels of corn, etc. were consumed at Charlotte, N. C., the other day. A heavy loss! Both the army and the people will feel it. There seems already to exist the preliminary symptoms of panic and anarchy in the government. All the dignitaries wear gloomy faces; and this is a gloomy day—raining incessantly. A blue day—a miserable day!

The city council put up the price of gas yesterday to $50 per 1000 feet.

JANUARY 11TH.—Clear and pleasant. Cannon heard down the river.

Mr. E. A. Pollard, taken by the Federals in an attempt to run the blockade last spring, has returned, and reports that Gen. Butler has been relieved of his command—probably for his failure to capture Wilmington. Mr. Pollard says that during his captivity he was permitted, on parole, to visit the Northern cities, and he thinks the Northern conscription will ruin the war party.

But, alas! the lax policy inaugurated by Mr. Benjamin, and continued by every succeeding Secretary of War, enables the enemy to obtain information of all our troubles and all our vulnerable points. The United States can get recruits under the conviction that there will be little or no more fighting.

Some $40,000 worth of provisions, belonging to speculators, but marked for a naval bureau and the Mining and Niter Bureau, have been seized at Danville. This is well—if it be not too late.

A letter from Mr. Trenholm, Secretary of the Treasury, to Mr. Wagner, Charleston, S. C. (sent over for approval), appoints him agent to proceed to Augusta, etc., with authority to buy all the cotton for the government, at $1 to $1.25 per pound; and then sell it for sterling bills of exchange to certain parties, giving them permission to remove it within the enemy's lines; or "better still," to have it shipped abroad on government account by reliable parties. This indicates a purpose to die "full-handed," if the government must die, and to defeat the plans of the enemy to get the cotton. Is the Federal Government a party to this arrangement? Gold was $60 for one yesterday. I suppose there is no change to-day.

Judge Campbell, Assistant Secretary, returned to his room to-day, mine not suiting him.

Col. Sale, Gen. Bragg's military secretary, told me to-day that the general would probably return from Wilmington soon. His plan for filling the ranks by renovating the whole conscription system, will, he fears, slumber until it is too late, when ruin will overtake us! If the President would only put Bragg at the head of the conscription business—and in time—we might be saved.

JANUARY 12TH.—Bright and frosty. Gold at $66 for one yesterday, at auction.

Major R. J. Echols, Quartermaster, Charlotte, N. C., says the fire there destroyed 70,000 bushels of grain, a large amount of sugar, molasses, clothing, blankets, etc. He knows not whether it was the result of design or accident. All his papers were consumed. A part of Conner's brigade on the way to South Carolina, 500 men, under Lieut.-Col. Wallace, refused to aid in saving property, but plundered it! This proves that the soldiers were all poor men, the rich having bought exemptions or details!

Gen. Lee writes on the 8th instant, that the troops sailing out of James River are, he thinks, destined for another attack on Wilmington. But none have left the lines in front of him, etc.

Gen. Lee also writes on the 9th instant, that the commissary agents have established "a large traffic through our lines, in North Carolina, for supplies;" and he desires the press to say nothing on the subject.

Mr. Ould, to whom it appears the Secretary has written for his opinion (he was editor once, and fought a duel with Jennings Wise, Mr. Seddon being his second), gives a very bad one on the condition of affairs. He says the people have confidence in Mr. Seddon, but not in President Davis, and a strong reconstruction party will spring up in Virginia rather than adopt the President's ideas about the slaves, etc.

The Chief of the Treasury Note Bureau, at Columbia, S. C., asks where he shall fly to if the enemy approaches. It is understood one of our generals, when appealed to by the Secretary, exclaimed: "To the devil!"

Mr. Miles introduced a resolution yesterday (in Congress) affirming that for any State to negotiate peace is revolutionary. Ill timed, because self-evident.

Gen. Bradley T. Johnson writes from Salisbury, N. C., that because the travel hither has been suspended by the government, the Central Railroad Company of that State refuse to send the full amount of trains for the transportation of soldiers. It must be impressed too.

I am assured by one of the President's special detectives that Francis P. Blair, Sr. is truly in this city. What for? A rumor spreads that Richmond is to be evacuated.

Gen. Lee writes for the Secretary's sanction to send officers everywhere in Virginia and North Carolina, to collect provisions and to control railroads, etc. The Secretary is sending orders to different commanders, and says he would rather have the odium than that it should fall on Lee! The Commissary General approves Lee's measure.

Gen. Lee's dispatch was dated last night. He says he has not two days' rations for his army!

Commissary-General Northrop writes to the Secretary that the hour of emergency is upon us, and that Gen. Lee's name may "save the cause," if he proclaims the necessity of indiscriminate impressment, etc.

JANUARY 13TH.—Clear and pleasant—but little frost. Beef (what little there is in market) sells to-day at $6 per pound; meal, $80 per bushel; white beans, $5 per quart, or $160 per bushel. And yet Congress is fiddling over stupid abstractions!

The government will awake speedily, however; and after Congress hurries through its business (when roused), the adjournment of that body will speedily ensue. But will the President dismiss his cabinet in time to save Richmond, Virginia, and the cause? That is the question. He can easily manage Congress, by a few letters from Gen. Lee. But will the potency of his cabinet feed Lee's army?

A great panic still prevails in the city, arising from rumors of contemplated evacuation. If it should be evacuated, the greater portion of the inhabitants will remain, besides many of the employees of government and others liable to military service, unless they be forced away. But how can they be fed? The government cannot feed, sufficiently, the men already in the field.

Everybody is conjecturing what Mr. Blair has proposed; but no one expects relief from his mission, if indeed he be clothed with diplomatic powers—which I doubt.

The President, I believe, is calm, relying upon the loyalty of his cabinet. But he is aware of the crisis; and I think his great reliance is on Gen. Lee, and herein he agrees with the people. What will be the issue of the present exigency, God only knows!

I believe there is a project on foot to borrow flour, etc. from citizens for Gen. Lee's army. Many officers and men from the army are in the city to-day, confirming the reports of suffering for food in the field.

There is a rumor that Goldsborough has been taken.

Mr. Secretary Seddon is appointing men in the various districts of the city to hunt up speculators and flour; appointing such men as W. H. McFarland and others, who aspire to office by the suffrages of the people. They will not offend the speculators and hoarders by taking much flour from them. No—domiciliary visits with bayonets alone will suffice.

Of thirty Federal deserters sent to work on the fortifications of Lynchburg, all but four ran away.

It is understood that the President announced to Congress to-day the arrest of the Hon. H. S. Foote, member of that body, near Fredericksburg, while attempting to pass into the enemy's lines. This, then, may have been Capt. Norton's secret mission; and I believe the government had traps set for him at other places of egress. Meantime the enemy came in at Savannah. This is considered the President's foible—a triumph over a political or personal enemy will occupy his attention and afford more delight than an ordinary victory over the common enemy. Most men will say Mr. Foote should have been permitted to go—if he desired it.

JANUARY 14TH.—Cloudy and cool. The news that Goldsborough, N. C., had been taken is not confirmed. Nor have we intelligence of the renewal of the assault on Fort Fisher—but no one doubts it.

The government sent pork, butchered and salted a few weeks ago, to the army. An order has been issued to borrow, buy, or impress flour, wherever found; but our political functionaries will see that it be not executed. The rich hoarders may control votes hereafter, when they may be candidates, etc. If domiciliary visits were made, many thousands of barrels of flour would be found. The speculators have not only escaped hitherto, but they have been exempted besides.

The Assembly of Virginia passed a resolution yesterday, calling upon the President to have revoked any orders placing restrictions upon the transportation of provisions to Richmond and Petersburg. The President sends this to the Secretary, asking a copy of any orders preventing carts from coming to market.

Flour is $1000 per barrel to-day!

F. P. Blair, Sr., has been here several days, the guest of Mr. Ould, agent of exchange. He left this morning for Grant's lines below the city. I saw him in an open carriage with Mr. Ould, going down Main Street. He looks no older than he did twenty years ago. Many consider Ould a fortunate man, though he is represented as a loser in the war. Blair seemed struck by the great number of able-bodied men in the streets.

Major Maynard, Quartermaster, says he will be able next week to bring 120 cords of wood to the city daily.

If Richmond be relinquished, it ought to be by convention and capitulation, getting the best possible terms for the citizens; and not by evacuation, leaving them at the mercy of the invaders. Will our authorities think of this? Doubtful.

One of the President's pages told me to-day that Mr. Blair had several interviews with the President at the latter's residence. Nothing relating to propositions has transpired.

The clerks are again sending out agents to purchase supplies. The President has decided that such agents have no right to expend any money but that contributed. This hits the Assistant Secretary of War, and Mr. Kean, Chief of Bureau, and our agent, Mr. Peck, for whom so many barrels of flour were purchased by the latter as agent, leaving the greater part of the contribution unexpended; nay, more, the money has not yet been refunded, although contributed five months ago!

Some 700 barrels of flour were realized yesterday for the army.

JANUARY 15TH.—Clear and frosty. Guns heard down the river.

Dispatches came last night for ammunition—to Wilmington, I believe. We have nothing yet decisive from Fort Fisher, but I fear it will fall.

Mr. Hunter was in the Secretary's office this morning before the Secretary came. I could give him no news from Wilmington. He is much distressed; but if the enemy prevails, I have no doubt he will stipulate saving terms for Virginia. He cannot contemplate the ruin of his fortune; political ruin is quite as much as he can bear. Always at the elbow of the Secretary, he will have timely notice of any fatal disaster. He is too fat to run, too heavy to swim, and therefore must provide some other means of escape.

Last night and early this morning the Jews and others were busy, with hand-carts and wheelbarrows, removing barrels of flour from the center to the outskirts of the city, fearful of impressment. They need not fear.

I have enough flour, meal, and beans (black) to subsist my family two weeks. After that, I look to the kind Providence which has hitherto always fed us.

It is now rumored that Mr. Blair came to negotiate terms for the capitulation of Richmond, and that none were listened to. Better that, if it must fall, than be given up to pillage and the flames. If burning our cities had been the order in 1862, it might have been well; it is too late now!

JANUARY 16TH.—Clear and frosty.

We learn vaguely that the attack on the defenses of Wilmington has been progressing since Friday, and that the enemy's land forces have effected a lodgment between Fort Fisher and the town.

Another "peace" visitor has arrived—Hon. Mr. Singleton, of the United States Congress. It is said that the President (Confederate States) has pledged himself to appoint commissioners to fix terms of peace. This is but a forlorn-hope. No terms of peace are contemplated by any of these visitors but on the basis of reconstruction; and their utmost liberality could reach no further than a permission for the Southern States to decide, in convention, the question of emancipation. The President having suggested, however, the propriety of putting the negroes into the service, and emancipating them afterward, has aroused the fears and suspicions of many of the people; and but few have confidence in the integrity of the Secretary of State. Hence the universal gloom and despondency of the croakers. There may be difficulty in replenishing the Federal armies, and they may be depleted by spring; and if so, Gen. Lee may be able to make another grand campaign with the men and material now at his command. The issue of the next campaign may inaugurate real negotiations. Wilmington may be taken, blockade-running may cease; but we have ammunition and other stores for another campaign.

At last we have a dispatch from Gen. Lee, announcing the fall of Fort Fisher. Most of the garrison, supposed to be 1500, were taken.

Gold was $70 for $1 on Saturday: what will it be to-day or to-morrow?

A voluminous correspondence is going on between Mr. Conrad (secret agent to arrest disloyal men endeavoring to cross the Potomac) and Mr. Secretary Seddon. Mr. Foote, arrested by their great skill, has applied, indignantly, for a writ of habeas corpus. Thus the time of our great dignitaries is consumed removing molehills, while mountains are looming up everywhere.

The following dispatch was received here at 11 A.M. to-day from Gen. Bragg's A. D. C.: "January 15th, 1865.—Official information from Gen. Whiting, at Fort Fisher, up to 8 o'clock this evening, reports enemy's attack on fort unsuccessful. Fresh troops are being sent to him."

This does not agree with the dispatch from Gen. Lee. It must have been taken last night, and after the hour indicated. Gen. Lee certainly says it has fallen. It is gone, and I fear the "reinforcements" also—with Gen. Whiting "to boot."

Alas for Bragg the unfortunate! He seems to be another BOABDIL the Unlucky.

Dr. Woodbridge announced in the Monumental Church, yesterday, that only five ladies had responded to the call to knit socks for the soldiers! A rich congregation, too. My daughters (poor) were among the five, and handed him several pairs. They sent one pair to their cousin S. Custis, Clingman's brigade, Hoke's North Carolina division.

Mr. Lewis, disbursing clerk of Post-Office Department, has sent in a communication asking an investigation of the conduct of Mr. Peck, agent to buy supplies for clerks. What will Mr. Seddon do now?

The Commissary-General says 100,000 bushels corn for Lee's army may be got in Southwest Virginia.

JANUARY 17TH.—Cloudy, and spitting snow.

Mr. Foote's release from custody has been ordered by Congress.

The news of the fall of Wilmington, and the cessation of importations at that port, falls upon the ears of the community with stunning effect.

Again we have a rumor of the retirement of Mr. Seddon.

There are more rumors of revolution, and even of displacement of the President by Congress, and investiture of Gen. Lee. It is said the President has done something, recently, which Congress will not tolerate. Idle talk!

Mr. Foote, when arrested, was accompanied by his wife, who had a passport to Tennessee. He said to the Provost Marshal, Doggett, Fredericksburg, that he intended to accompany his family, passing through Washington, and to endeavor to negotiate a peace. He deposited a resignation of his seat in Congress with a friend, which he withdrew upon being arrested. He was arrested and detained "until further orders," by command of the Secretary of War.

Lieut.-Gen. Hood has been relieved, and ordered to report here.

The rumor gains belief that Gen. Breckinridge has been offered the portfolio of the War Department by the President. This may be the act alluded to which Congress will not agree to, perhaps, on the ground that Gen. B. remained in the United States Senate long after secession. The general is understood to be staying at G. A. Myers's house, which adds strength to the rumor, for Myers has a keen scent for the sources of power and patronage.

The Surgeon-General states that, during the years 1862 and 1863, there were 1,600,000 cases of disease in hospitals and in the field, with only 74,000 deaths. There have been 23,000 discharges from the armies since the war began.

The Provost Marshal at Fredericksburg telegraphs that his scouts report the enemy have arrested Mrs. Foote, and threaten to rescue Mr. Foote. The Secretary and the President concur in ordering his discharge. The President says that will not be permission for him to pass our lines. He will come here, I suppose.

Mentioning to R. Tyler the fact that many of the clerks, etc. of the War Department favored revolution and the overthrow of the President, he replied that it was a known fact, and that some of them would be hung soon. He feared Mr. Hunter was a submissionist.