The Northern papers say Mr. G. B. Lamar has applied to take the oath of allegiance, to save his cotton and other property.

The Examiner to-day has another article calling for a convention to abolish the Constitution and remove President Davis.

Mr. Seward, United States Secretary of State, escorted Mrs. Foote to her hotel, upon her arrival in Washington.

The following official telegram was received at the War Department last night:

"HEADQUARTERS, January 15th, 1865.

"HON. J. A. SEDDON.

"Gen. Early reports that Gen. Rosser, at the head of three hundred men, surprised and captured the garrison at Beverly, Randolph County, on the 11th instant, killing and wounding a considerable number and taking five hundred and eighty prisoners. His loss slight. R. E. LEE."

JANUARY 18TH.—Cloudy and cool. Cannon heard down the river.

No war news. But blockade-running at Wilmington has ceased; and common calico, now at $25 per yard, will soon be $50.

The stupor in official circles continues, and seems likely to continue.

A secret detective told the Assistant Secretary, yesterday, that a certain member of Congress was uttering treasonable language; and, for his pains, was told that matters of that sort (pertaining to members of Congress) did not fall within his (detective's) jurisdiction. It is the policy now not to agitate the matter of disloyalty, but rather to wink at it, and let it die out—if it will; if it won't, I suppose the government must take its chances, whatever they may be.

Breckinridge, it is now said, will not be Secretary of War: the position which Mr. Seddon is willing to abandon, cannot be desirable. And Northrop, Commissary-General, is still held by the President, contrary to the wishes of the whole Confederacy.

Flour is $1250 per barrel, to-day.

A detective reports that one of the committee (Mr. Mc———?) selected by Mr. Secretary Seddon to hunt up flour for Gen. Lee's army, has a large number of barrels secreted in his own dwelling! But they must not be touched.

Gen. Lee writes that he thinks the crisis (starvation in the army) past. Good.

In South Carolina we hear of public meetings of submission, etc.

JANUARY 19TH.—Clear and frosty. Among the rumors, it would appear that the Senate in secret session has passed a resolution making Lee generalissimo.

It is again said Mr. Seddon will resign, and be followed by Messrs. Benjamin and Mallory, etc.

The following dispatch was received by the President yesterday:

"TUPELO, MISS., January 17th, 1865.—Roddy's brigade (cav.) is useless as at present located by the War Department. I desire authority to dispose of it to the best advantage, according to circumstances.—G. T. BEAUREGARD, General."

The President sends it to the Secretary of War with this indorsement: "On each occasion, when this officer has been sent with his command to distant service, serious calamity to Alabama has followed. It is desirable to know what disposition Gen. Beauregard proposes to make of this force.—J. D."

We have nothing further from Wilmington. Bad enough.

Sherman is said to be marching on Charleston. Bad enough, too!

Our papers have glowing accounts of the good treatment the citizens of Savannah received from the enemy.

Mr. Foote has arrived in the city—and it is said he will take his seat in Congress to-day.

Gen. Whiting and Col. Lamb were taken at Fort Fisher—both wounded, it is said—and 1000 of the garrison.

Mr. Peck paid back to the clerks to-day the unexpended balance of their contributions for supplies, etc. The money is not worth half its value some months ago. But Mr. P. secured ten barrels of flour for himself and as many more for the Assistant Secretary, Mr. Kean, etc. etc.

One o'clock P.M. The day has grown dark and cold, indicating snow, and a dismal gloom rests upon the faces of the increasing party of croakers. We have famine, owing to the incapacity of the government, and the rapacity of speculators. Wood, however, is coming in, but it is only for military officers, etc. No one can live on wood. Gold is $70 for $1, and meal about $100 per bushel.

The House of Representatives (in secret session) has passed the Senate joint resolution creating the office of commander-in-chief (for Gen. Lee), and recommending that Gen. Johnston be reinstated, etc. It passed by a vote of 62 to 14.

What will result from this? Is it not a condemnation of the President and the administration that displaced Gen. J., etc.? Who will resign? Nous verrons!

JANUARY 20TH.—Clear and cold. No news—that is bad news. Nothing has transpired officially of the events and details near Wilmington, but there is a rumor, exaggerated perhaps, of the fall of Wilmington itself. No doubt Sherman is marching on Charleston, and if there be no battle soon, it is feared he will take the city without one.

Mr. Foote made a speech in Congress yesterday—a savage one, I am told. Going home yesterday at 3 o'clock, I met Mr. Foote, and told him what I had heard. He said he could have wished me to hear every word of it. I asked if it would not be printed. He held up a roll of manuscript, saying he had written it in full, and that it would certainly be published. The papers say in their brief reports, that he disavowed all ideas of reconstruction. After he left the House, one of the Missouri members offered a resolution for his expulsion, on the ground that he had, unlawfully, attempted to pass into the enemy's lines, for the purpose of negotiating a peace, etc. It was referred to the Committee on Elections.

After this a resolution was introduced, that a joint committee be appointed to prepare an address, etc., solemnly declaring that the war shall be waged until independence be achieved, etc. Such addresses have been repeatedly made, and at last seem to have a demoralizing effect. People remember how many test votes were taken in the Virginia Convention, showing that the State never would secede—and at length the Convention passed an ordinance of secession! Nothing can save this government long but military successes, and these depend upon having the slave and other property owners in the field. This can never be done without a renovation of the machinery used to fill up the ranks.

The President is calm. Some think him subdued. A few days or weeks will determine.

Gen. Howell Cobb writes his views, etc. Utterly opposed to arming the slaves—better emancipate them at once, conceding to the "demands of England and France," and then enlist them. But he thinks a return to the system of volunteering would answer to fill the ranks with white men; also suggests that the President concede something to popular sentiment—restore Gen. J. E. Johnston, etc. He says gloom and despair are fast settling on the people.

J. P. McLean, Greensborough, N. C., in response to the request of Mr. Secretary Seddon, gives information of the existence of many Union men in that section, and suggests sudden death to —— etc. The Secretary is diligent in getting such information; but lately it seems he never applies the remedy.

Mr. Secretary Seddon thinks Mr. Peck's explanation of his purchasing satisfactory; the Assistant Secretary, Chief of Bureau of War, and Mr. Seddon's private clerk got an abundance of flour, etc.

Major Harman, Staunton, says provisions cannot be had in that section to feed Early's army, unless one-fourth of all produce be bought at market prices, and the people go on half rations. The slaves everywhere are on full rations.

JANUARY 21ST.—A dark, cold, sleety day, with rain. Troopers and scouts from the army have icicles hanging from their hats and caps, and their clothes covered with frost, and dripping.

The Examiner this morning says very positively that Mr. Secretary Seddon has resigned. Not a word about Messrs. Benjamin and Mallory—yet. The recent action of Congress is certainly a vote of censure, with great unanimity.

It is said Congress, in secret session, has decreed the purchase of all the cotton and tobacco! The stable locked after the horse is gone! If it had been done in 1861——

Mr. Secretary Trenholm is making spasmodic efforts to mend the currency—selling cotton and tobacco to foreign (Yankee) agents for gold and sterling bills, and buying Treasury notes at the market depreciation. For a moment he has reduced the price of gold from $80 to $50 for $1; but the flood will soon overwhelm all opposition, sweeping every obstruction away.

The Federal papers say they got 2500 prisoners at Fort Fisher.

It is said the President refuses to accept Mr. Seddon's resignation.

A rumor has sprung up to the effect that Judge Campbell, Assistant Secretary of War, has also resigned. If this be so, it will soon produce a great commotion among detailed and exempted men all over the country. Rumors fly thick these dark days. It is a good time, however, for some to resign. The President has need even of incompetent men, and may beg them to remain, etc., and thus they are flattered. But if they really feel that the ship is sinking, they will endeavor to jump ashore, notwithstanding the efforts made to retain them. And then, if the ship should not sink, manned by different men!

I hear nothing more about Gen. Breckinridge as Mr. Seddon's successor, but he is the guest of the old lawyer, G. A. Myers; and it is not probable he is bestowing his bread and meat, in such times as these, for nothing. He has made a fortune, and knows how to increase it—and even Gen. B. would never be the wiser.

We have at last a letter from Gen. Hood, narrating the battle of Franklin, Tenn. He says he lost about 4500 men—enemy's loss not stated. Failure of Gen. Cheatham to execute an order the day before, prevented him from routing the enemy. His account of the battle of Nashville I have not yet seen—but know enough about it.

Both the Secretary and his Assistant have been pretty constantly engaged, for some time past, in granting passports beyond our lines, and generally into those of the enemy.

Congress has passed an act allowing reserve forces to be ordered anywhere. Upon the heels of this, Governor Smith notifies the Secretary of War that the two regiments of second class militia here, acting with the reserves, shall no longer be under the orders of Gen. Kemper. He means to run a tilt against the President, whereby Richmond may be lost! Now "Tray, Blanche, and Sweetheart, bark at him."

JANUARY 22D.—Another day of sleet and gloom. The pavements are almost impassable from the enamel of ice; large icicles hang from the houses, and the trees are bent down with the weight of frost.

The mails have failed, and there is no telegraphic intelligence, the wires being down probably. It rained very fast all day yesterday, and I apprehend the railroad bridges have been destroyed in many places.

The young men (able-bodied) near the Secretary of War and the Assistant Secretary, at the War Department, say, this morning, that both have resigned.

It is said the Kentucky Congressmen oppose the acceptance of the portfolio of war by Gen. Breckinridge.

Whoever accepts it must reform the conscription business and the passport business, else the cause will speedily be lost. Most of our calamities may be traced to these two sources.

JANUARY 23D.—Foggy, and raining. F. P. Blair is here again. If enemies are permitted to exist in the political edifice, there is danger of a crash. This weather, bad news, etc. etc. predispose both the people and the army for peace—while the papers are filled with accounts of the leniency of Sherman at Savannah, and his forbearance to interfere with the slaves. The enemy cannot take care of the negroes—and to feed them in idleness would produce a famine North and South. Emancipation now is physically impossible. Where is the surplus food to come from to feed 4,000,000 idle non-producers?

It is said by the press that Mr. Seddon resigned because the Virginia Congressmen expressed in some way a want of confidence in the cabinet. But Mr. Hunter was in the Secretary's office early this morning, and may prevail on him to withdraw his resignation again, or to hold on until —— all is accomplished.

Gen. Breckinridge, it is said, requires the removal of Northrop, before his acceptance. Gen. Bragg is also named.

Congress, in creating the office of a commander-in-chief, also aimed a blow at Bragg's staff; and this may decide the President to appoint him Secretary of War.

A long letter came to-day from Governor Brown, dated Macon, Ga., Jan. 6th, 1865, in reply to a long one from the Secretary of War, filled with criminations and recriminations, and a flat refusal to yield the old men and boys in State service, in obedience to the call of the "usurping" and "despotic" demand of the Confederate States Executive. Georgia trembles, and may topple over any day!

Mr. Blair's return has excited many vague hopes—among the rest, even of recognition by the United States Government! Yet many, very many croakers, weary of the war, would acquiesce in reconstruction, if they might save their property. Vain hopes.

It is rumored that a commissioner (a Louisianian) sailed to-day for England, to make overtures to that government.

The government has ordered the military authorities at Augusta, Ga. (Jan. 21), to remove or burn all the cotton in that town if it is likely to be occupied by the enemy.

Senator Hunter sends a letter to Mr. Seddon which he has just received from Randolph Dickinson, Camp 57th Virginia, stating that it is needful to inaugurate negotiations for the best possible terms without delay, as the army, demoralized and crumbling, cannot be relied upon to do more fighting, etc. Mr. Hunter indorses: "My dear sir, will you read the inclosed? I fear there is too much truth in it. Can't the troops be paid?

"Yours most truly, R. M. T. HUNTER."

JANUARY 24TH.—Clear and cool. It is now said Mr. Seddon's resignation has not yet been accepted, and that his friends are urging the President to persuade him to remain. Another rumor says ex-Gov. Letcher is to be his successor, and that Mr. Benjamin has sent in his resignation. Nothing seems to be definitely settled. I wrote the President yesterday that, in my opinion, there was no ground for hope unless communication with the enemy's country were checked, and an entire change in the conscription business speedily ordered. I was sincere, and wrote plain truths, however they might be relished. It is my birth-right.

It is said (I doubt it) that Mr. Blair left the city early yesterday.

To add to the confusion and despair of the country, the Secretary of the Treasury is experimenting on the currency, ceasing to issue Treasury notes, with unsettled claims demanding liquidation to the amount of hundreds of millions. Even the clerks, almost in a starving condition, it is said will not be paid at the end of the month; and the troops have not been paid for many months; but they are fed and clothed. Mr. Trenholm will fail to raise our credit in this way; and he may be instrumental in precipitating a crash of the government itself. No doubt large amounts of gold have been shipped every month to Europe from Wilmington; and the government may be now selling the money intended to go out from that port. But it will be only a drop to the ocean.

The Northern papers say Mr. Blair is authorized to offer an amnesty, including all persons, with the "Union as it was, the Constitution as it is" (my old motto on the "Southern Monitor," in 1857); but gradual emancipation. No doubt some of the people here would be glad to accept this; but the President will fight more, and desperately yet, still hoping for foreign assistance.

What I fear is starvation; and I sincerely wish my family were on the old farm on the Eastern Shore of Virginia until the next campaign is over.

It is believed Gen. Grant meditates an early movement on our left—north side of the river; and many believe we are in no condition to resist him. Still, we have faith in Lee, and the President remains here. If he and the principal members of the government were captured by a sudden surprise, no doubt there would be a clamor in the North for their trial and execution!

Guns have been heard to-day, and there are rumors of fighting below; that Longstreet has marched to this side of the river; that one of our gun-boats has been sunk; that Fort Harrison has been retaken; and, finally, that an armistice of ninety days has been agreed to by both governments.

JANUARY 25TH.—Clear, and very cold. We lost gun-boat Drewry yesterday in an unsuccessful attempt to destroy the enemy's pontoon bridge down the river. Fort Harrison was not taken as reported, nor is it likely to be.

The rumor of an armistice remains, nevertheless, and Mr. Blair dined with the President on Sunday, and has had frequent interviews with him. This is published in the papers, and will cause the President to be severely censured.

Congress failed to expel Mr. Foote yesterday (he is off again), not having a two-thirds vote, but censured him by a decided majority. What will it end in?

No successors yet announced to Seddon and Campbell—Secretary and Assistant Secretary of War. Perhaps they can be persuaded to remain.

After all, it appears that our fleet did not return, but remains down the river; and as the enemy's gun-boats have been mostly sent to North Carolina, Gen. Lee may give Grant some trouble. If he destroys the bridges, the Federal troops on this side the river will be cut off from their main army.

It is said the President has signed the bill creating a commander-in-chief.

Rev. W. Spottswood Fontaine writes from Greensborough, N. C., that —— reports that Senator Hunter is in favor of Virginia negotiating a separate peace with the United States, as the other States will probably abandon her to her fate, etc.

I saw Mr. Lyons to-day, who told me Mr. Hunter dined with him yesterday, and that Gen. Lee took tea with him last evening, and seemed in good spirits, hope, etc. Mr. Lyons thinks Gen. Lee was always a thorough emancipationist. He owns no slaves. He (Mr. Lyons) thinks that using the negroes in the war will be equivalent to universal emancipation, that not a slave will remain after the President's idea (which he don't seem to condemn) is expanded and reduced to practice. He favors sending out a commissioner to Europe for aid, on the basis of emancipation, etc., as a dernier ressort. He thinks our cause has received most injury from Congress, of which he is no longer a member.

If it be really so, and if it were generally known, that Gen. Lee is, and always has been opposed to slavery, how soon would his great popularity vanish like the mist of the morning! Can it be possible that he has influenced the President's mind on this subject? Did he influence the mind of his father-in-law, G. W. Park Custis, to emancipate his hundreds of slaves? Gen. Lee would have been heir to all, as his wife was an only child. There's some mistake about it.

The Secretary of State (still there!) informs the Secretary of War (still here!) that the gold he wrote about to the President on the 18th inst. for Gen. Hardee and for Mr. Conrad, is ready and subject to his order.

Four steamers have run into Charleston with a large amount of commissary stores. This is providential.

JANUARY 26TH.—Clear and cold. No further news from the iron-clad fleet that went down the river.

Beef is selling at $8 per pound this morning; wood at $150 per cord. Major Maynard, instead of bringing 120, gets in but 30 or 40 cords per day. I am out of wood, and must do my little cooking in the parlor with the coal in the grate. This is famine!

Congress passed a bill a few days ago increasing the number of midshipmen, and allowing themselves to appoint a large proportion of them. Yesterday the President vetoed the bill, he alone, by the Constitution, being authorized to make all appointments. But the Senate immediately repassed it over the veto—only three votes in the negative. Thus the war progresses! And Mr. Hunter was one of the three.

The President, in reply to a committee of the State Legislature, says Gen. Lee has always refused to accept the command of all the armies unless he could relinquish the immediate command of the Army of Northern Virginia defending the capital; and that he is and ever has been willing to bestow larger powers on Gen. Lee; but he would not accept them.

This makes me doubt whether the President has signed the bill creating a commander-in-chief.

It is said again, that Commissary-General Northrop has resigned. Doubtful.

Still, there are no beggars in the streets, except a few women of foreign or Northern birth. What a people! If our affairs were managed properly, subjugation would be utterly impossible. But all the statesmen of the years preceding the war have been, somehow, "ruled out" of positions, and wield no influence, unless it be a vengeful one in private. Where are the patriots of the decade between 1850 and 1860? "Echo answers where?" Who is responsible for their absence? A fearful responsibility!

Gold is quoted at $35 for $1—illusory! Perhaps worse.

The statistics furnished by my son Custis of the military strength of the Confederate States, and ordered by the President to be preserved on file in the department, seems to have attracted the attention of Mr. Assistant Secretary Campbell, and elicited a long indorsement, saying a calculation of the number of casualties of war was not made—all this after the paper was sent in by the President. But the estimate was made, and included in the reduction from the 800,000, leaving 600,000. Judge C thinks 200,000 have been killed, 50,000 permanently disabled, and 55,000 are prisoners; still 500,000 availables would be left.

Custis has drafted, and will send to the President, a bill establishing a Corps of Honor, with a view to excite emulation and to popularize the service, now sadly needed.

JANUARY 27TH.—Clear, and coldest morning of the winter. None but the rich speculators and quartermaster and commissary peculators have a supply of food and fuel. Much suffering exists in the city; and prices are indeed fabulous, notwithstanding the efforts of the Secretary of the Treasury and the press to bring down the premium on gold. Many fear the high members of the government have turned brokers and speculators, and are robbing the country—making friends of the mammon of unrighteousness, against the day of wrath which they see approaching. The idea that Confederate States notes are improving in value, when every commodity, even wood and coal, daily increases in price, is very absurd!

The iron-clad fleet returned, without accomplishing anything—losing one gun-boat and having some fifteen killed and wounded. The lower house of Congress failed yesterday to pass the Midshipman bill over the President's veto—though a majority was against the President.

It is said, and published in the papers, that Mrs. Davis threw her arms around Mr. Blair and embraced him. This, too, is injurious to the President.

My wood-house was broken into last night, and two (of the nine) sticks of wood taken. Wood is selling at $5 a stick this cold morning; mercury at zero.

A broker told me that he had an order (from government) to sell gold at $35 for $1. But that is not the market price.

It is believed (by some credulous people) that Gen. J. E. Johnston will command the army in Virginia, and that Lee will reside here and be commander-in-chief. I doubt. The clamor for Gen. J. seems to be the result of a political combination.

Mr. Hunter came to the department to-day almost in a run. He is excited.

Lieut.-Gen. Hardee, of Charleston, 26th (yesterday), dispatches to the Secretary that he has received an order from Gen. Cooper (Adjutant-General) for the return of the 15th Regiment and 10th Battalion North Carolina troops to North Carolina. He says these are nearly the only regular troops he has to defend the line of the Combahee—the rest being reserves, disaffected at being detained out of their States. The withdrawal may cause the loss of the State line, and great disaster, etc. etc.

Official statement of Gen. Hood's losses shows 66 guns, 13,000 small arms, etc. The report says the army was saved by sacrificing transportation; and but for this the losses would have been nothing.

JANUARY 28TH.—Clear and very cold; can't find a thermometer in the city.

The President did sign the bill creating a general-in-chief, and depriving Gen. Bragg of his staff.

Major-Gen. Jno. C. Breckinridge has been appointed Secretary of War. May our success be greater hereafter!

Gen. Lee has sent a letter from Gen. Imboden, exposing the wretched management of the Piedmont Railroad, and showing that salt and corn, in "immense quantity," have been daily left piled in the mud and water, and exposed to rain, etc., while the army has been starving. Complaints and representations of this state of things have been made repeatedly.

Gold sold at $47 for one at auction yesterday.

Mr. Hunter was seen early this morning running (almost) toward the President's office, to pick up news. He and Breckinridge were old rivals in the United States.

The Enquirer seems in favor of listening to Blair's propositions.

Judge Campbell thinks Gen. Breckinridge will not make a good Secretary of War, as he is not a man of small details. I hope he is not going to indulge in so many of them as the judge and Mr. Seddon have done, else all is lost! The judge's successor will be recommended soon to the new Secretary. There will be applicants enough, even if the ship of State were visibly going down.

Although it is understood that Gen. Breckinridge has been confirmed by the Senate, he has not yet taken his seat in the department.

The President has issued a proclamation for the observance of Friday, March 10th, as a day of "fasting, humiliation, and prayer, with thanksgiving," in pursuance of a resolution of Congress.

It seems that Virginia, Georgia, Alabama, and Tennessee will not be represented in the cabinet; this may breed trouble, and we have trouble enough, in all conscience.

It is said Mr. Blair has returned again to Richmond—third visit. Can there be war brewing between the United States and England or France? We shall know all soon. Or have propositions been made on our part for reconstruction? There are many smiling faces in the streets, betokening a profound desire for peace.

JANUARY 29TH.—Clear, and moderating.

To-day at 10 A.M. three commissioners start for Washington on a mission of peace, which may be possibly attained. They are Vice-President Stephens, Senator R. M. T. Hunter, and James A. Campbell, Assistant Secretary of War, and formerly a judge on the bench of the Supreme Court of the United States, all of them heartily sick of war, and languishing for peace. If they cannot devise a mode of putting an end to the war, none can. Of course they have the instructions of the President, with his ultimata, etc., but they will strive earnestly for peace.

What terms may be expected? Not independence, unless the United States may be on the eve of embarking in a foreign war, and in that event that government will require all the resources it can command, and they would not be ample if the war should continue to be prosecuted against us. Hence it would be policy to hasten a peace with us, stipulating for valuable commercial advantages, being the first to recognize us over all other powers, hoping to restore the old trade, and ultimately to reconstruct the Union. Or it may proceed from intimations of a purpose on the part of France and England to recognize us, which, of itself, would lead inevitably to war. The refusal of the United States to recognize the Empire of Mexico is an offense to France, and the augmentation of the armament of the lakes, etc. is an offense to England. Besides, if it were possible to subjugate us, it would be only killing the goose that lays the golden egg, for the Southern trade would be destroyed, and the Northern people are a race of manufacturers and merchants. If the war goes on, 300,000 men must be immediately detailed in the United States, and their heavy losses heretofore are now sorely felt. We have no alternative but to fight on, they have the option of ceasing hostilities. And we have suffered so much that almost any treaty, granting us independence, will be accepted by the people. All the commissioners must guard against is any appearance of a PROTECTORATE on the part of the United States. If the honor of the Southern people be saved, they will not haggle about material losses. If negotiations fail, our people will receive a new impulse for the war, and great will be the slaughter. Every one will feel and know that these commissioners sincerely desired an end of hostilities. Two, perhaps all of them, even look upon eventual reconstruction without much repugnance, so that slavery be preserved.

JANUARY 30TH.—Bright and beautiful, but quite cold; skating in the basin, etc.

The departure of the commissioners has produced much speculation.

The enemy's fleet has gone, it is supposed to Sherman at Charleston.

No doubt the Government of the United States imagines the "rebellion" in articulo mortis, and supposes the reconstruction of the Union a very practicable thing, and the men selected as our commissioners may confirm the belief. They can do nothing, of course, if independence is the ultimatum given them.

Among the rumors now current, it is stated that the French Minister at Washington has demanded his passports. Mr. Lincoln's message, in December, certainly gave Napoleon grounds for a quarrel by ignoring his empire erected in Mexico.

Mr. Seddon still awaits his successor. He has removed Col. and Lieut.-Col. Ruffin from office.

Mr. Bruce, M. C. from Kentucky, and brother-in-law to Mr. Seddon, is named as Commissary-General.

The President has vetoed another bill, granting the privilege to soldiers to receive papers free of postage, and the Senate has passed it again by a two-thirds vote. Thus the breach widens.

Some of our sensible men have strong hopes of peace immediately, on terms of alliance against European powers, and commercial advantages to the United States. I hope for even this for the sake of repose and independence, if we come off with honor. We owe nothing to any of the European governments. What has Blair been running backward and forward so often for between the two Presidents? Has it not been clearly stated that independence alone will content us? Blair must have understood this, and made it known to his President. Then what else but independence, on some terms, could be the basis for further conference? I believe our people would, for the sake of independence, agree to an alliance offensive and defensive with the United States, and agree to furnish an army of volunteers in the event of a war with France or England. The President has stigmatized the affected neutrality of those powers in one of his annual messages. Still, such a treaty would be unpopular after a term of peace with the United States. If the United States be upon the eve of war with France and England, or either of them, our commissioners abroad will soon have proposals from those governments, which would be accepted, if the United States did not act speedily.

JANUARY 31ST.—Bright and frosty.

The "peace commissioners" remained Sunday night at Petersburg, and proceeded on their way yesterday morning. As they passed our lines, our troops cheered them very heartily, and when they reached the enemy's lines, they were cheered more vociferously than ever. Is not this an evidence of a mutual desire for peace?

Yesterday, Mr. De Jarnette, of Virginia, introduced in Congress a resolution intimating a disposition on the part of our government to unite with the United States in vindication of the "Monroe doctrine," i.e. expulsion of monarchies established on this continent by European powers. This aims at France, and to aid our commissioners in their endeavors to divert the blows of the United States from us to France. The resolution was referred to the Committee on Foreign Relations.

If there be complication with France, the United States may accept our overtures of alliance, and our people and government will acquiesce, but it would soon grow an unpopular treaty. At this moment we are hard pressed, pushed to the wall, and prepared to catch at anything affording relief. We pant for a "breathing spell." Sherman is advancing, but the conquest of territory and liberation of slaves, while they injure us, only embarrass the enemy, and add to their burdens. Now is the time for the United States to avert another year of slaughter and expense.

Mr. Foote has been denouncing Mr. Secretary Seddon for selling his wheat at $40 per bushel.

It is rumored that a column of the enemy's cavalry is on a raid somewhere, I suppose sent out from Grant's army. This does not look like peace and independence. An extract from the New York Tribune states that peace must come soon, because it has reliable information of the exhaustion of our resources. This means that we must submit unconditionally, which may be a fatal mistake.

The raiders are said to be on the Brooke Turnpike and Westhaven Road, northeast of the city, and menacing us in a weak place. Perhaps they are from the Valley. The militia regiments are ordered out, and the locals will follow of course, as when Dahlgren came.

Hon. Mr. Haynes of the Senate gives information of a raid organizing in East Tennessee on Salisbury, N. C., to liberate the prisoners, cut the Piedmont Road, etc.

Half-past two P.M. Nothing definite of the reported raid near the city. False, perhaps.

No papers from the President to-day; he is disabled again by neuralgia, in his hand, they say.



CHAPTER XLVII.

Gen. Lee appointed General-in-Chief.—Progress of Sherman.—The markets.— Letter from Gen. Butler.—Return of the Peace Commissioners.—The situation.—From Gen. Lee.—Use of negroes as soldiers.—Patriotism of the women.—Pardon of deserters.—The passport system.—Oh for peace!—Gen. Lee on negro soldiers.—Conventions in Georgia and Mississippi.

FEBRUARY 1ST.—Clear and pleasant; subsequently thawing and foggy. Gen. R. E. Lee has been appointed General-in-Chief by the President, in response to the recent action of Congress and the clamorous demands of the people. It is to be hoped he will, nevertheless, remain in person at the head of the Army of Virginia, else the change may be fraught with disaster, and then his popularity will vanish! He has not been fortunate when not present with the troops under his command, as evidenced by Early's defeat and Jones's disaster in the Valley last year. A general must continue to reap successes if he retains his popularity.

Gen. Lee has called upon the people everywhere to send in any cavalry arms and equipments in their possession—the importation being stopped.

The report of a raid yesterday, grew out of the return to the city of a small body of our own cavalry that had been on detached service. Quite an alarm was raised!

The President was better yesterday; it is neuralgia in the right shoulder, disabling his arm.

Our "commissioners" were delayed until yesterday morning at Petersburg; during which there was a sort of truce, and the troops of the opposing fortifications ventured out, both sides cheering vociferously.

Gen. Lee writes that his army is suffering for want of soap. The Secretary sends the letter to Commissary-General Northrop (neither of their successors being inducted yet) for "prompt attention." The Commissary-General sends it back, saying 800 barrels of soap are now, and have been for months, lying at Charlotte, N. C., awaiting transportation! The speculators get from Charlotte that much freight every week. The Commissary-General says 800 barrels of soap ought to last Gen. Lee's army one month. It must be a large army to consume that amount of soap in a month.

Yesterday Congress passed another bill over the President's veto, to allow soldiers to receive letters, etc. free. Thus the war progresses between the executive and the legislative branches of the government.

In future revolutions, never let a "permanent government" be established until independence is achieved!

FEBRUARY 2D.—Bright and beautiful, and pleasantly frosty. Gen. Sherman is advancing as usual in such dubiety as to distract Gen. Hardee, who knows not whether Branchville or Augusta is his objective point. I suppose Sherman will be successful in cutting our communications with the South—and in depreciating Confederate States Treasury notes still more, in spite of Mr. Trenholm's spasmodic efforts to depreciate gold.

Yesterday the Senate passed a bill dropping all commissaries and quartermasters not in the field, and not in the bureaus in Richmond, and appointing agents instead, over 45 years of age. This will make a great fluttering, but the Richmond rascals will probably escape.

Military men here consider Augusta in danger; of course it is! How could it be otherwise?

Information from the United States shows that an effort to obtain "peace" will certainly be made. President Lincoln has appointed ex-Presidents Fillmore and Pierce and Hon. S. P. Chase, commissioners, to treat with ours. The two first are avowed "peace men;" and may God grant that their endeavors may prove successful! Such is the newspaper information.

A kind Providence watches over my family. The disbursing clerk is paying us "half salaries" to-day, as suggested in a note I wrote the Secretary yesterday. And Mr. Price informs me that the flour (Capt. Warner's) so long held at Greensborough has arrived! I shall get my barrel. It cost originally $150; but subsequent expenses may make it cost me, perhaps, $300. The market price is from $800 to $1000. I bought also of Mr. Price one-half bushel of red or "cow-peas" for $30; the market price being $80 per bushel. And Major Maynard says I shall have a load of government wood in a few days!

FEBRUARY 3D.—The report that the United States Government had appointed commissioners to meet ours is contradicted. On the contrary, it is believed that Gen. Grant has been reinforced by 30,000 men from Tennessee; and that we shall soon hear thunder in Richmond.

Gen. Lee writes urgently in behalf of Major Tannahill's traffic for supplies, in Northeastern North Carolina and Southeastern Virginia, for the army. Large amounts of commissary stores are obtained in exchange for cotton, tobacco, etc; but the traffic is in danger of being broken up by the efforts of bureau officials and civilian speculators to participate in it—among them he mentions Major Brower (Commissary-General's office, and formerly a clerk)—and asks such orders as will be likely to avert the danger. The traffic is with the enemy; but if conducted under the exclusive control of Gen. Lee, it would be of vast benefit to the army.

The House of Representatives yesterday passed a singular compensation bill, benefiting two disbursing clerks and others already rich enough. I have written a note to Senator Johnson, of Missouri, hoping to head it off there, or to so amend it as to make it equable and just. All the paths of error lead to destruction; and every one seems inclined to be pressing therein.

The freezing of the canal has put up the price of wood to about $500 per cord—judging from the little one-horse loads for which they ask $50.

One o'clock P.M. Dark and dismal; more rain or snow looked for. Certainly we are in a dark period of the war—encompassed by augmenting armies, almost starving in the midst of plenty (hoarded by the speculators), our men deserting—and others skulking duty, while Congress and the Executive seem paralyzed or incapable of thought or action.

The President was better yesterday; but not out. They say it is neuralgia in the shoulder, disabling his right arm. Yet he orders appointments, etc., or forbids others.

Major Noland, Commissary-General, has refused to impress the coffee in the hands of speculators; saying there is no law authorizing it. The speculators rule the hour—for all, nearly, are speculators! God save us! we seem incapable of saving ourselves.

No news to-day from Georgia and South Carolina—which means there is no good news. If it be true that Gen. Thomas has reinforced Grant with 30,000 men, we shall soon hear news without seeking it! The enemy will not rest content with their recent series of successes; for system of easy communication will enable them to learn all they want to know about our weak points, and our childish dependence on the speculators for subsistence.

After leaving thirty days' supplies in Charleston for 20,000 men—all the rest have been ordered to Richmond.

FEBRUARY 4TH.—Clear, but rained last night. From the South we learn that Sherman is marching on Branchville, and that Beauregard is at Augusta.

The great struggle will be in Virginia, south of Richmond, and both sides will gather up their forces for that event. We can probably get men enough, if we can feed them.

The City Council is having green "old field pine" wood brought in on the Fredericksburg railroad, to sell to citizens at $80 per cord—a speculation.

The Quartermaster's Department is also bringing in large quantities of wood, costing the government about $40 per cord. Prior to the 1st inst., the Quartermaster's Department commuted officer's (themselves) allowance of wood at $130 per cord!

The President still suffers, but is said to be "better."

Yesterday much of the day was consumed by Congress in displaying a new flag for the Confederacy—before the old one is worn out! Idiots!

I have just seen on file a characteristic letter from Major-Gen. Butler, of which this is a literal copy:

"HEADQUARTERS DEPT. VA. AND N. C.,

"ARMY OF THE JAMES IN THE FIELD,

"FORTRESS MONROE, Oct. 9th, 1864.

"HON. ROBT. OULD—SIR:

"An attempt was made this morning by private Roucher, Co. B, 5th Penna. cavalry, to commit a rape upon the persons of Mrs. Minzer and Mrs. Anderson, living on the Darbytown Road.

"On the outrage being discovered, he broke through the picket line, and fled for your lines. Our soldiers chased him, but were unable to overtake him.

"I have therefore the honor to request that you will return him, that I may inflict the punishment which his dastardly offense merits. I cannot be responsible for the good conduct of my soldiers, if they are to find protection from punishment by entering your lines.

"I have the honor to be, your obt. servt.,

"(Signed) B. F. BUTLER,

"Major-Gen. Comd'g and Com. for Exchange."

The ladies were Virginians.

I got my barrel (2 bags) flour to-day; 1 bushel meal, 1/2 bushel peas, 1/2 bushel potatoes ($50 per bushel); and feel pretty well. Major Maynard, Quartermaster, has promised a load of wood. Will these last until——? I believe I would make a good commissary.

FEBRUARY 5TH.—Clear and cold. Our commissioners are back again! It is said Lincoln and Seward met them at Fortress Monroe, and they proceeded no further. No basis of negotiation but reconstruction could be listened to by the Federal authorities. How could it be otherwise, when their armies are marching without resistance from one triumph to another—while the government "allows" as many emissaries as choose to pass into the enemy's country, with the most solemn assurances that the Union cause is spreading throughout the South with great rapidity—while the President is incapacitated both mentally and physically by disease, disaster, and an inflexible defiance of his opponents—and while Congress wastes its time in discussions on the adoption of a flag for future generations!

This fruitless mission, I apprehend, will be fraught with evil, unless the career of Sherman be checked; and in that event the BATTLE for RICHMOND, and Virginia, and the Confederacy, will occur within a few months—perhaps weeks. The sooner the better for us, as delay will only serve to organize the UNION PARTY sure to spring up; for many of the people are not only weary of the war, but they have no longer any faith in the President, his cabinet, Congress, the commissaries, quartermasters, enrolling officers, and most of the generals.

Judge Campbell was closeted for hours last night with Mr. Secretary Seddon at the department. I have not recently seen Mr. Hunter.

We have news from the Eastern Shore of Virginia. My wife's aunt, Miss Sally Parsons, is dead—over 90 years of age. The slaves are free, but remain with their owners—on wages. The people are prosperous, getting fine prices for abundant crops. Only a few hundred Federal troops are in the two counties; but these, under the despotic orders of Butler, levy heavy "war contributions" from the unoffending farmers.

FEBRUARY 6TH.—Bright and frosty. As I supposed, the peace commissioners have returned from their fruitless errand. President Lincoln and Mr. Seward, it appears, had nothing to propose, and would listen to nothing but unconditional submission. The Congress of the United States has just passed, by a two-thirds vote, an amendment to the Constitution abolishing slavery.

Now the South will soon be fired up again, perhaps with a new impulse—and WAR will rage with greater fury than ever. Mr. Stephens will go into Georgia, and reanimate his people. Gen. Wise spoke at length for independence at the Capitol on Saturday night amidst applauding listeners, and Governor Smith speaks to-night.

Gen. Breckinridge is here and will take his seat to-morrow. Every effort will be made to popularize the cause again.

Hon. Mr. Foote is at Washington, in prison.

Gen. Wise's brigade has sent up resolutions consenting to gradual emancipation—but never to reunion with the North.

There is a more cheerful aspect on the countenances of the people in the streets. All hope of peace with independence is extinct—and valor alone is relied upon now for our salvation. Every one thinks the Confederacy will at once gather up its military strength and strike such blows as will astonish the world. There will be desperate conflicts!

Vice-President Stephens is in his seat to-day, and seems determined.

Mr. Hunter is rolling about industriously.

Gen. Lee writes that desertions are caused by the bad management of the Commissary Department, and that there are supplies enough in the country, if the proper means were used to procure them.

Gen. Taylor sends a telegram from Meridian, Miss., stating that he had ordered Stewart's corps to Augusta, Ga., as Sherman's movement rendered a victory necessary at once. The dispatch was to the President, and seems to be in response to one from him. So we may expect a battle immediately near Augusta, Ga. Beauregard should have some 20,000 men, besides Hardee's 15,000—which ought to be enough for victory; and then good-by to Sherman!

FEBRUARY 7TH.—A snow four inches in depth on the ground, and snowing. Last night Governor Smith, President Davis, Senator Oldham (Texas), Rev. Mr. Duncan, Methodist preacher, and a Yankee Baptist preacher, named Doggell, or Burroughs, I believe, addressed a large meeting in the African Church, on the subject of the Peace Mission, and the ultimatum of the United States authorities. The speakers were very patriotic and much applauded. President Davis (whose health is so feeble he should have remained away) denounced President Lincoln as "His Majesty Abraham the First"—in the language of the press—and said before the campaign was over he and Seward might find "they had been speaking to their masters," when demanding unconditional submission. He promised the people great successes, after our destined reverses had run out, provided they kept from despondency and speculation, and filled the ranks of the army. He denounced the speculators, and intimated that they might yet be called upon to "disgorge their earnings."

A grand assemblage is called for next Thursday, to meet in the Capitol Square.

Congress will soon be likely to vote a negro army, and their emancipation after the war—as Lee favors it.

There was some fighting near Petersburg yesterday and the day before; but the press is reticent—a bad sign.

There is a rumor that Charleston has been evacuated!

Gen. Lee again writes that desertions occur to an alarming extent, for want of sufficient food. And he says there is enough subsistence in the country, but that the Commissary Department is inefficiently administered.

Gen. Breckinridge is in his office to-day.

A scramble is going on by the young politicians for the position of Assistant Secretary of War, and Mr. Kean is supposed to be ahead in the race. When a ship is thought to be sinking, even the cook may be appointed captain! Anything, now, to keep out of the field—such is the word among the mere politicians.

It is rumored that Gen. Pegram (since confirmed) was killed in the enemy's attack on our right near Petersburg, and that seven brigades were engaged and repulsed the enemy. Still, there is no official confirmation—and the silence of Gen. Lee is interpreted adversely.

Senator Haynes, of Tennessee, and Senator Wigfall, of Texas, denounced the President yesterday as mediocre and malicious—and that his blunders had caused all our disasters.

Our commissioners were not permitted to land at Fortress Monroe, but Lincoln and Seward came on board.

Judge Campbell is still acting as Assistant Secretary; but he looks very despondent. If Beauregard gains a victory ——.

FEBRUARY 8TH.—Rained all day yesterday—slush—bright this morning and cool—ground still covered with snow. It is reported by Gen. Lee that the losses on both sides on Monday were light, but the enemy have established themselves on Hatcher's Run, and intrenched; still menacing the South Side Railroad. It is also said fighting was going on yesterday afternoon, when the dreadful snow and sleet were enough to subdue an army!

We have nothing from Charleston or Branchville, but the wires are said to be working to Augusta.

A deficiency of between $300,000,000 and $400,000,000 has been discovered in the amount of our indebtedness! the present Secretary being led into the error by the estimates of his predecessor, Memminger. Congress is elaborating a bill, increasing taxation 100 per cent! An acquaintance, who has 16 acres near the city, says he will sell, to escape a tax of $5000.

Senator Brown, of Mississippi, has introduced a resolution for the employment of 200,000 negroes, giving them their freedom.

Gen. Kemper is strongly recommended as Assistant Secretary of War.

The wounded are still coming in from the fight beyond Petersburg. Horrible weather, yesterday, for fighting—and yet it is said much of it was done.

Vice-President Stephens was in the department to-day. He has a ghostly appearance. He is announced to speak in Richmond to-morrow; but I believe he starts for Georgia to-day. He may publish a letter. He had a long interview with Judge Campbell—with locked doors.

Twelve M. The sun is melting the snow rapidly.

The Legislature of Virginia has passed resolutions in favor of the restoration of Gen. J. E. Johnston to a command. What will the President do, after saying he should never have another command?

Intelligence was received to-day of the sudden death of Brig.-Gen. Winder, in Georgia; from apoplexy, it is supposed. He was in command of the prisons, with his staff of "Plug Uglies" around him, and Cashmeyer, their sutler.

"HEADQUARTERS ARMY OF NORTHERN VIRGINIA,

"February 6th, 1865.

"GENERAL S. COOPER.

"The enemy moved in strong force yesterday to Hatcher's Run. Part of his infantry, with Gregg's cavalry, crossed and proceeded on the Vaughan Road—the infantry to Cattail Creek, the cavalry to Dinwiddie Court House, when its advance encountered a portion of our cavalry, and retreated.

"In the afternoon, parts of Hill's and Gordon's troops demonstrated against the enemy on the left of Hatcher's Run, near Armstrong's Mill. Finding him intrenched, they were withdrawn after dark. During the night, the force that had advanced beyond the creek retired to it, and were reported to be recrossing.

"This morning, Pegram's division moved down the right bank of the creek to reconnoiter, when it was vigorously attacked. The battle was obstinately contested several hours, but Gen. Pegram being killed while bravely encouraging his men, and Col. Hoffman wounded, some confusion occurred, and the division was pressed back to its original position. Evans's division, ordered by Gen. Gordon to support Pegram's, charged the enemy and forced him back, but was, in turn, compelled to retire. Mahone's division arriving, the enemy was driven rapidly to his defenses on Hatcher's Run.

"Our loss is reported to be small; that of the enemy not supposed great. R. E. LEE."

FEBRUARY 9TH.—Bright, frosty, beautiful, after a cold night.

We have nothing more specific from the fight of Tuesday, when we learn another general was killed. It seems that most of Grant's army was in the movement, and they have a lodgment several miles nearer the South Side Railroad—the objective point. Their superior numbers must ultimately prevail in maintaining the longest line.

There is to be public speaking in the African Church to-day, or in the Square, to reanimate the people for another carnival of blood. Mr. Hunter, it is said, has been chosen to preside, and no man living has a greater abhorrence of blood! But, perhaps, he cannot decline.

Papers from the United States indicate that the peace epidemic prevails in that country also to an alarming extent: for the day (15th instant) of drafting is near at hand; and even the Republican papers hope and pray for peace, and reconstruction without slavery.

Senator Brown's resolution to put 200,000 slaves in the army was voted down in secret session. Now the slaveowners must go in themselves, or all is lost.

One of the President's pages says the President will make a speech at the meeting to-day. He is a good political speaker, and will leave no stone unturned to disconcert his political enemies in Congress and elsewhere—and their name is legion.

The President has ordered the nomination of ex-Gov. Bonham as brigadier-general of a brigade of South Carolina cavalry, in opposition to Gen. Cooper's opinion: a rare occurrence, showing that Mr. Davis can be flexible when necessity urges. Gen. Hampton recommended Bonham.

The day is bright, but the snow is not quite all gone: else the meeting would be very large, and in the Capitol Square. There will be much cheering; but the rich men will be still resolved to keep out of the army themselves.

We have nothing from Charleston for several days. No doubt preparations are being made for its evacuation. The stores will be brought here for Lee's army. What will be the price of gold then?

Mr. Seddon has published a correspondence with the President, showing why he resigned: which was a declaration on the part of Congress of a want of confidence in the cabinet. The President says such a declaration on the part of Congress is extra-official, and subversive of the constitutional jurisdiction of the Executive; and, in short, he would not accept the resignation, if Mr. S. would agree to withdraw it. So, I suppose the other members will hold on, in spite of Congress.

FEBRUARY 10TH.—Bright and cold. It is estimated that the enemy lost 1500 men in the fight near Petersburg, and we 500.

Sherman has got to the railroad near Branchville, and cut communications with Augusta.

At the meeting, yesterday, Mr. Hunter presided, sure enough; and made a carefully prepared patriotic speech. There was no other alternative. And Mr. Benjamin, being a member of the cabinet, made a significant and most extraordinary speech. He said the white fighting men were exhausted, and that black men must recruit the army—and it must be done at once; that Gen. Lee had informed him he must abandon Richmond, if not soon reinforced, and that negroes would answer. The States must send them, Congress having no authority. Virginia must lead, and send 20,000 to the trenches in twenty days. Let the negroes volunteer, and be emancipated. It was the only way to save the slaves—the women and children. He also said all who had cotton, tobacco, corn, meat, etc. must give them to the government, not sell them. These remarks were not literally reported in the Dispatch, but they were uttered. He read resolutions, adopted in certain regiments, indorsing the President and his cabinet—of which Mr. B. said, playfully, he was one.

Yesterday, in the House, upon the passage of a bill revising the Commissary Department, Mr. Miles said the object was to remove Col. Northrop. [His removal has been determined.] Mr. Baldwin said the department had been well conducted. Mr. Miles said in these times the test of merit must be success. The bill passed.

Senator Hunter is at the department this morning, calling for the statistics, prepared by my son Custis, of the fighting men in the Southern States. Doubtless Mr. Hunter is averse to using the slaves.

The new Secretary of War is calling for reports of "means and resources" from all the bureaus. This has been done by no other Secretary. The government allowed Lee's army to suffer for months with the itch, without knowing there were eight hundred barrels of soap within a few hours' run of it.

From the ordnance report, I see we shall have plenty of powder—making 7000 pounds per day; and 55,000 rifles per annum, besides importations. So, if there must be another carnival of blood, the defense can be maintained at least another year, provided the right men have the management.

A violent opposition is likely to spring up against Mr. Benjamin's suggestions. No doubt he is for a desperate stroke for independence, being out of the pale of mercy; but his moral integrity is impugned by the representatives from Louisiana, who believe he has taken bribes for passports, etc., to the injury of the cause. He feels strong, however, in the strength of the President, who still adheres to him.

There is much excitement among the slaveowners, caused by Mr. Benjamin's speech. They must either fight themselves or let the slaves fight. Many would prefer submission to Lincoln; but that would not save their slaves! The Proclamation of Emancipation in the United States may yet free the South of Northern domination.

FEBRUARY 11TH.—Cloudy and cold; froze hard last night.

Yesterday a bill was introduced into both houses of Congress authorizing the enlistment of 200,000 slaves, with consent of their owners, which will probably be amended. Mr. Miles, as a test vote, moved the rejection of the bill; and the vote not to reject it was more than two to one, an indication that it will pass.

The failure of the peace conference seems to have been made the occasion of inspiring renewed zeal and enthusiasm for the war in the United States, as well as here. So the carnival of blood will be a "success."

The enemy claim an advantage in the late battle on the south side of the James River.

Sherman's movements are still shrouded in mystery, and our generals seem to be waiting for a development of his intentions. Meantime he is getting nearer to Charleston, and cutting railroad communications between that city and the interior. The city is doomed, unless Hardee or Beauregard, or both, successfully take the initiative.

Here the price of slaves, men, is about $5000 Confederate States notes, or $100 in specie. A great depreciation. Before the war, they commanded ten times that price.

It is rumored that hundreds of the enemy's transports have come into the James River. If it be Thomas's army reinforcing Grant, Richmond is in immediate peril! Information of our numbers, condition, etc. has been, doubtless, communicated to the enemy—and our slumbering government could not be awakened!

Wigfall, of Texas, Graham, of North Carolina, Orr and Miles, of South Carolina, oppose the employment of negro troops, and Gen. Wickham, of this department, openly proclaims such a measure as the end of the Confederacy! We are upon stirring times! Senator Wigfall demands a new cabinet, etc.

Two P.M. The sun has come out; warmer. But it does not disperse the prevailing gloom. It is feared Richmond must be abandoned, and our forces concentrated farther South, where supplies may be more easily had, and where it will be a greater labor and expense for the enemy to subsist his armies.

Assistant Secretary of War, Judge Campbell, is still furloughing, detailing, and discharging men from the army; and yet he thinks the country is pretty nearly exhausted of its fighting population! His successor is not yet appointed; the sooner the better, perhaps.

FEBRUARY 12TH.—Bright, windy, cold, and disagreeable.

There was nothing new at the department this morning. Nothing from below; nothing from South Carolina. Perhaps communications are cut between this and Charleston. All are anxious to hear the result of the anticipated battle with Sherman, for somehow all know that the order to fight him was sent from Richmond more than a week ago.

People's thoughts very naturally now dwell upon the proximate future, and the alternatives likely to be presented in the event of the abandonment of Richmond, and consequently Virginia, by Lee's army. Most of the male population would probably (if permitted) elect to remain at their homes, braving the fate that might await them. But the women are more patriotic, and would brave all in following the fortunes of the Confederate States Government. Is this because they do not participate in the hardships and dangers of the field? But many of our men are weary and worn, and languish for repose. These would probably remain quiescent on parole, submitting to the rule of the conqueror; but hoping still for foreign intervention or Confederate victories, and ultimate independence.

Doubtless Lee could protract the war, and, by concentrating farther South, embarrass the enemy by compelling him to maintain a longer line of communication by land and by sea, and at the same time be enabled to fall upon him, as occasion might offer, in heavier force. No doubt many would fall out of the ranks, if Virginia were abandoned; but Lee could have an army of 100,000 effective men for years.

Still, these dire necessities may not come. The slaveowners, speculators, etc., hitherto contriving to evade the service, may take the alarm at the present aspect of affairs, and both recruit and subsist the army sufficiently for victory over both Grant and Sherman; and then Richmond will be held by us, and Virginia and the Cotton States remain in our possession; and we shall have peace, for exhaustion will manifest itself in the United States.

We have dangerous discussions among our leaders, it is true; and there may be convulsions, and possibly expulsion of the men at the head of civil affairs: but the war will not be affected. Such things occurred in France at a time when the armies achieved their greatest triumphs.

One of the greatest blunders of the war was the abandonment of Norfolk; and the then Secretary of War (Randolph) is now safely in Europe. That blunder brought the enemy to the gates of the capital, and relinquished a fertile source of supplies; however, at this moment Lee is deriving some subsistence from that source by connivance with the enemy, who get our cotton and tobacco.

Another blunder was Hood's campaign into Tennessee, allowing Sherman to raid through Georgia.

FEBRUARY 13TH.—Coldest morning of the winter.

My exposure to the cold wind yesterday, when returning from the department, caused an attack of indigestion, and I have suffered much this morning from disordered stomach and bowels.

From Northern papers we learn that Gen. Grant's demonstration last week was a very formidable effort to reach the South Side Railroad, and was, as yet, a decided failure. It seems that his spies informed him that Gen. Lee was evacuating Richmond, and under the supposition of Lee's great weakness, and of great consequent demoralization in the army, the Federal general was induced to make an attempt to intercept what he supposed might be a retreat of the Confederate army. There will be more fighting yet before Richmond is abandoned, probably such a carnival of blood as will make the world start in horror.

The New York Tribune still affects to believe that good results may come from the recent peace conference, on the basis of reunion, other basis being out of the question. The new amnesty which it was said President Lincoln intended to proclaim has not appeared, at least our papers make no mention of it.

Gen. Lee has proclaimed a pardon for all soldiers, now absent without leave, who report for duty within 20 days, and he appeals to their patriotism. I copy it.

"HEADQUARTERS ARMIES OF THE CONFEDERATE STATES,

"February 11th, 1865.

"GENERAL ORDERS NO. 2.

"In entering upon the campaign about to open, the general-in-chief feels assured that the soldiers who have so long and so nobly borne the hardships and dangers of the war require no exhortation to respond to the calls of honor and duty.

"With the liberty transmitted by their forefathers they have inherited the spirit to defend it.

"The choice between war and abject submission is before them.

"To such a proposal brave men, with arms in their hands, can have but one answer.

"They cannot barter manhood for peace, nor the right of self-government for life or property.

"But justice to them requires a sterner admonition to those who have abandoned their comrades in the hour of peril.

"A last opportunity is offered them to wipe out the disgrace and escape the punishment of their crimes.

"By authority of the President of the Confederate States, a pardon is announced to such deserters and men improperly absent as shall return to the commands to which they belong within the shortest possible time, not exceeding twenty days from the publication of this order, at the headquarters of the department in which they may be.

"Those who may be prevented by interruption of communications, may report within the time specified to the nearest enrolling officer, or other officer on duty, to be forwarded as soon as practicable; and upon presenting a certificate from such officer, showing compliance with this requirement, will receive the pardon hereby offered.

"Those who have deserted to the service of the enemy, or who have deserted after having been once pardoned for the same offense, and those who shall desert, or absent themselves without authority, after the publication of this order, are excluded from its benefits. Nor does the offer of pardon extend to other offenses than desertion and absence without permission.

"By the same authority, it is also declared that no general amnesty will again be granted, and those who refuse to accept the pardon now offered, or who shall hereafter desert or absent themselves without leave, shall suffer such punishment as the courts may impose, and no application for clemency will be entertained.

"Taking new resolution from the fate which our enemies intend for us, let every man devote all his energies to the common defense.

"Our resources, wisely and vigorously employed, are ample, and with a brave army, sustained by a determined and united people, success, with God's assistance, cannot be doubtful.

"The advantages of the enemy will have but little value if we do not permit them to impair our resolution. Let us, then, oppose constancy to adversity, fortitude to suffering, and courage to danger, with the firm assurance that He who gave freedom to our fathers will bless the efforts of their children to preserve it.

"R. E. LEE, General."

The Senate did nothing on Saturday but discuss the policy of abolishing the Bureau of Conscription, the office of provost marshal outside of our military lines.

Gov. Smith's salary is to be increased to $20,000, and he is still exempting young justices, deputy sheriffs, deputy clerks, constables, etc.

FEBRUARY 14TH.—Bright and cold. Very cold, and fuel unattainable.

The papers speak of heavy raids in process of organization: one from Newbern, N. C., against Raleigh, and one from East Tennessee against Salisbury and our communications.

The news from South Carolina is vague, only that the armies are in active motion. So long as Sherman keeps the initiative, of course he will succeed, but if Beauregard should attack, it may be different.

Yesterday some progress was made with the measure of 200,000 negroes for the army. Something must be done—and soon.

Gen. Wise sent me a letter of introduction to Gen. Breckinridge yesterday. I sent it in to-day. I want the system of passports changed, and speculation annihilated, else the cause is lost. I expect no action, for impediments will be interposed by others. But my duty is done. I have as little to lose as any of them. The generals all say the system of passports in use has inflicted great detriment to the service, a fact none can deny, and if it be continued, it will be indeed "idiotic suicide," as Gen. Preston says.

The weather is moderating, but it is the most wintry 14th of February I remember to have seen. Yet, as soon as the weather will admit of it, the carnival of blood must begin. At Washington they demand unconditional submission or extermination, the language once applied to the Florida Indians, a few hundred of whom maintained a war of seven years. Our cities may fall into the hands of the enemy, but then the populations will cease to subsist on the Confederacy. There is no prospect of peace on terms of "unconditional submission," and most of the veteran troops of the enemy will return to their homes upon the expiration of their terms of enlistment, leaving mostly raw recruits to prosecute the work of "extermination."

Meantime the war of the factions proceeds with activity, the cabinet and the majority in both Houses of Congress. The President remains immovable in his determination not to yield to the demand for new men in the government, and the country seems to have lost confidence in the old. God help us, or we are lost! The feeble health of the President is supposed to have enfeebled his intellect, and if this be so, of course he would not be likely to discover and admit it. Mr. Speaker Bocock signs a communication in behalf of the Virginia delegation in Congress asking the dismissal of the cabinet.

The Northern papers mention a gigantic raid in motion from Tennessee to Selma, Montgomery, and Mobile, Ala., consisting of 40,000 cavalry and mounted infantry, a la Sherman. They are resolved to give us no rest, while we are distracted among ourselves, and the President refuses to change his cabinet, etc.

Gen. Grant telegraphed the Secretary of War at Washington, when our commissioners were in his camp, that he understood both Messrs. Stephens and Hunter to say that peace might be restored on the basis of REUNION.

FEBRUARY 15TH.—Moderated last night; this morning sleety and dangerous.

Gen. Lee was in the city yesterday, walking about briskly, as if some great event was imminent. His gray locks and beard have become white, but his countenance is cheerful, and his health vigorous.

The papers say Wheeler has beaten Kilpatrick (Federal cavalry general) back five miles, somewhere between Branchville and Augusta. So he did once or twice when Sherman was marching on Savannah, and he took it while Bragg remained at Augusta. The news of a victory by Beauregard over Sherman would change the face of affairs in that quarter, and nothing less will suffice.

It is surprising that the Federal authorities do not seem to perceive that in the event of a forced reconstruction of the Union, and a war with any European power, the South would rise again and join the latter. Better recognize a separate nationality, secure commercial advantages, and have guarantees of neutrality, etc.

Scouts report Gen. Thomas (Federal), with 30,000 men, encamped in the vicinity of Alexandria, Va., awaiting fair weather to march upon Richmond from that direction. The number is exaggerated no doubt, but that Richmond is to be subjected to renewed perils, while Congress is wasting its time in idle debate, is pretty certain.

The Senate passed a bill yesterday abolishing the Bureau of Conscription, and I think it will pass the House. The President ought to have abolished it months ago—years ago. It may be too late.

Col. St. John, Chief Mining and Niter Bureau, has been nominated as the new Commissary-General.

FEBRUARY 16TH.—Cloudy; rained yesterday and last night.

We have no important news from South Carolina, except the falling back toward Columbia of our troops; I suppose before superior numbers. Branchville is evacuated.

The roads will not admit of much movement in the field for some days. But pretty heavy cannonading is heard down the river.

Congress did nothing yesterday; it is supposed, however, that the bill recruiting negro troops will pass—I fear when it is too late.

Meantime the President is as busy as a bee making appointments and promotions, and many meritorious men are offended, supposing themselves to be overslaughed or neglected.

The published letter taking leave of Mr. Secretary Seddon rasps Congress severely, and is full of professions of esteem, etc. for the retiring Secretary. The members of Congress reply with acrimony.

The quartermaster at Charlotte, N. C., dispatches the Secretary of War that he has there some millions in specie, government funds, besides specie of the banks for safe keeping. He also desires the removal of the "Foreign Legion" there, paroled prisoners taken from the enemy and enlisting in our service. They are committing robberies, etc.

I saw Gen. Lee at the department again this morning. He seems vigorous, his face quite red, and very cheerful. He was in gray uniform, with a blue cloth cape over his shoulders.

Exchange of prisoners has been resumed, and many of our men are returning from captivity. Gen. Grant has the matter under his control.

Gen. Pillow has been appointed commander of prisons in place of Gen. Winder, deceased.

Only 4-5/8 pounds bacon were issued as meat ration to detailed men this month.

I learn that some 2000 of our men, confined at Point Lookout, Md., as prisoners of war, during the last two months, offered to take the oath of allegiance, which was refused, because it would reduce the number to exchange.

By the last flag of truce boat a negro slave returned. His master took the oath, the slave refused. He says "Massa had no principles."

FEBRUARY 17TH.—Frosty morning, after a rain last night.

We have no authentic war news this morning, from any quarter.

Congress is at work in both Houses on the Negro bill. It will pass, of course, without some unforeseen obstacle is interposed.

A letter from Gen. Lee to Gen. Wise is published, thanking the latter's brigade for resolutions recently adopted, declaring that they would consent to gradual emancipation for the sake of independence and peace. This is a strong indication (confirmatory) that Gen. Lee is an emancipationist. From all the signs slavery is doomed! But if 200,000 negro recruits can be made to fight, and can be enlisted, Gen. Lee may maintain the war very easily and successfully; and the powers at Washington may soon become disposed to abate the hard terms of peace now exacted.

How our fancies paint the scenes of peace now which were never appreciated before! Sitting by our cheerless fires, we summon up countless blessings that we could enjoy, if this war were only over. We plan and imagine many things that would be bliss to us in comparison with the privations we suffer. Oh, what fine eating and comfortable clothes we shall have when we enjoy another season of repose! We will hunt, we will "go fishing," we will cultivate nice gardens, etc. Oh for peace once more! Will this generation, with their eyes open, and their memories fresh, ever, ever go to war again?

There is a dark rumor that Columbia, S. C., has been taken possession of by the enemy; but I hardly believe it, for Gen. Beauregard would fight for it.

Gen. Beauregard telegraphs from Columbia, S. C., yesterday, that Gen. Pillow proposes to gather troops west of that point, and Gen. B. approves it. The President hesitates, and refers to Gen. Cooper, etc.

Eleven o'clock A.M. Raining again; wind east.

Mr. Hunter looks rather cadaverous to-day; he does not call on the new Secretary often. Gen. B. is a formidable rival for the succession—if there should be such a thing.

To-day my son Thomas drew his rations. I have also had another load of coal from Lieut. Parker, C. S. N., out of his contract, at $30, a saving of nearly $100! that will take us through the winter and spring. We also bought another bushel of black beans at $65.

Alas! we have news now of the capture of Columbia, S. C., the capital of the State. A dark day, truly! And only this morning—not three short hours ago—the President hesitated to second Beauregard's desire that Gen. Pillow—although not a "red tapist"—should rouse the people to the rescue; but Gen. Cooper must be consulted to throw obstacles in the way! This will be a terrible blow; and its consequences maybe calamitous beyond calculation. Poor South Carolina! her day of agony has come!

FEBRUARY 18TH.—Rained last night; but this is as lovely a morning as ever dawned on earth. A gentle southern breeze, a cloudless sky, and a glorious morning sun, whose genial warmth dispels the moisture of the late showers in smoky vapors.

But how dark and dismal the aspect of our military affairs! Columbia fallen and Charleston (of course) evacuated. My wife wept, my daughter prayed, upon hearing the news. South Carolina was superior to all the States in the estimation of my wife, and she regarded it as the last stronghold. Now she despairs, and seems reckless of whatever else may happen in Sherman's career of conquest.

A dispatch to Gen. Bragg states that Thomas's army (the ubiquitous) is landing at Newbern, N. C.! This is to cut Lee's communications and strike at Raleigh perhaps.

The people are stunned and sullen; sometimes execrating the President for retaining a cabinet in which the country has no confidence, etc.

One hundred for one is asked for gold.

The President was at work very early this morning making appointments in the army. But that does no good to the cause, I fear. A sufficient number of men must be placed in the ranks, or there will be no military success.

The Senate has passed a bill abolishing the "Bureau of Conscription," and it is now before the House. That is one step in the right direction. Hon. J. Goode yesterday made a speech in favor of its abolition, in which he said 150,000 men had been "handled" by the bureau during the last twelve months, and only 13,000 had been sent to the army! But it did not pass—no vote was taken; it is to be hoped it will pass to-day.

It is rumored that the "money-printing machine" was lost at Columbia, including a large amount of "treasure"—if Confederate Treasury notes be worthy that appellation.

FEBRUARY 19TH.—Another bright and glorious morning. I hear of no news whatever from the South—although I know that important events are transpiring—and the reticence of the government is construed very unfavorably. Hence if Beauregard has fought a battle, it is to be apprehended that he did not gain the day; and if this be so, South Carolina lies at the conqueror's feet.

I thought I heard brisk cannonading in the distance (down the river) this morning, but am not certain. I saw Mr. Hunter going briskly toward the Executive department. He does not come often now to the War Office.

The new Secretary has a large audience of members of Congress every morning.

The President and three of his aids rode out this afternoon (past our house), seemingly as cheerful as if each day did not have its calamity! No one who beheld them would have seen anything to suppose that the capital itself was in almost immediate danger of falling into the hands of the enemy; much less that the President himself meditated its abandonment at an early day, and the concentration of all the armies in the Cotton States!

FEBRUARY 20TH.—Another morning of blue skies and glorious sunshine. Sherman is reported to be marching northward, and to have progressed one-third of the way between Columbia and Charlotte, N. C.; where we had "millions of specie" a few days ago.

Some of the lady employees, sent by Mr. Memminger to Columbia last year, have returned to this city, having left and lost their beds, etc.

Grant's campaign seems developed at last. Sherman and Thomas will concentrate on his left, massing 200,000 men between Lee and his supplies, effectually cutting his communications by flanking with superior numbers. It is probable Charleston, Wilmington, and Richmond will fall without a battle; for how can they be held when the enemy stops supplies? and how could the garrisons escape when once cut off from the interior?

And yet Congress has done nothing, and does nothing, but waste the precious time. I fear it is too late now! It is certainly too late to raise recruits for service in the campaign now in active operation, a fact which our politician leaders seem to be unconscious of. Even our furloughed troops cannot now rejoin their regiments from their distant homes.

Then, if Lee must evacuate Richmond, where can he go? No one knows!

My belief is that the only chance for Lee—and a desperate one—is to beat Grant immediately, before the grand junction can be formed.

Letters are beginning to come in from the South, advocating the abandonment of Richmond, and the march of Lee's army into East Tennessee and Northern Georgia, and so on down to Montgomery, Ala., etc. etc.; concentrating in the Cotton States. What an ugly programme! How many would then follow the fortunes of this government? How many heads of bureaus, etc. would abandon it? How would it be possible for those with families on their hands to get transportation? A great many other questions might be asked, that few could answer at this time.

Charleston was evacuated on Tuesday last—nearly a week ago—so says the Examiner, and no one doubts it.

Mr. Hunter seems more depressed to-day than I have ever seen him. He walks with his head down, looking neither to the right nor the left.

I shall expect soon to hear of a battle. Beauregard must have nearly 50,000 men—such as they are, poor fellows! The rich have generally bribed themselves out of the service through the complicated machinery of the "Bureau of Conscription."

Senator Brown, of Mississippi, I am sorry to see, often retards legislation by motions to postpone; and the Senate listens to him, not knowing what to do. Hours now are worth weeks hereafter.

The President has made Wm. M. Browne—one of his aids, an Englishman and a Northern newspaper reporter—a brigadier-general. This does not help the cause. Mr. B. knows no more about war than a cat; while many a scarred colonel, native-born, and participants in a hundred fights, sue in vain for promotion.

Governor Clarke (Mississippi) telegraphs the President that nothing keeps the negroes from going to the enemy but the fear of being put in the Federal army; and that if it be attempted to put them in ours, all will run away, etc.

FEBRUARY 21ST.—Another bright and glorious morning.

Charleston fell on Thursday night last. A large number of heavy guns fell into the hands of the enemy. The confidential telegraph operators remained with the enemy. They were Northern men; but it is the policy of those in possession of this government to trust their enemies and neglect their friends.

Congress passed yesterday a bill abolishing the "Bureau of Conscription" in name—nothing more, if I understand it. The bill was manipulated by Judge Campbell, who has really directed the operations of the bureau from the beginning.

The negro bill also passed one House, and will pass the other to-day.

Also a bill (in one House) abolishing provost marshals, except in camps of the army.

These measures may come too late. The enemy is inclosing us on all sides with great vigor and rapidity. A victory by Beauregard would lift up the hearts of the people, now prone in the dust.

Mr. D. H. London (on the street) is smiling this morning. He says there is no doubt but that we shall be speedily recognized by France, and that Gen. Lee has gone South to checkmate Sherman. I fear some one has been deceiving Mr. London, knowing how eager he is for a few grains of comfort. He is a rich man.

A dispatch was sent from the department to Gen. Lee this morning, at his headquarters, supposed to be near Petersburg. Gold was selling at $60 for $1 yesterday. This may be a "dodge" of the brokers, who want to purchase; or it may be the government selling specie.

A gentleman from South Carolina reports that the Georgians (militia and reserves, I suppose) refused to enter South. Carolina in obedience to Gen. Beauregard's orders, and that Gen. B. has not exceeding 10,000 reliable men. If this be so, Sherman may march whither he chooses! This is very bad, if it be true, and more and more endangers the capital.

Surgeon-General S. P. Moore's estimates for the year's expenses of his bureau are $46,000,000.

FEBRUARY 22D.—Bright and frosty. A fine February for fruit.

Yesterday the Senate postponed action on the Negro bill. What this means I cannot conjecture, unless there are dispatches from abroad, with assurances of recognition based upon stipulations of emancipation, which cannot be carried into effect without the consent of the States, and a majority of these seem in a fair way of falling into the hands of the Federal generals.

The House passed the bill to abolish quartermasters and commissaries in a modified form, excepting those collecting tax in kind; and this morning those officers in this city under forty-five years of age advertise the location of their places of business as collectors of tax in kind, Capt. Wellford, a kinsman of Mr. Seddon, among the rest, the very men the bill was intended to remove! Alas for Breckinridge and independence!

The following dispatch has just been received from Gen. R. E. Lee:

"HEADQUARTERS, February 22d, 1865.

"From dispatches of Gen. Bragg of 21st, I conclude he has abandoned Cape Fear River. He says he is embarrassed by prisoners. Enemy refuses to receive or entertain propositions. I expect no change will be made by Gen. Grant. It is his policy to delay. Have directed prisoners to be sent to Richmond by rail or highway, as may be most practicable; if wrong, correct it.

"R. E. LEE."

This looks like the speedy fall of Wilmington, but not of Richmond.

To-day is the anniversary of the birth of Washington, and of the inauguration of Davis; but I hear of no holiday. Not much is doing, however, in the departments; simply a waiting for calamities, which come with stunning rapidity. The next news, I suppose, will be the evacuation of Wilmington! Then Raleigh may tremble. Unless there is a speedy turn in the tide of affairs, confusion will reign supreme and universally.

We have here now some 4000 or 5000 paroled prisoners returned by the Federal authorities, without sufficient food for them, and soon there may be 10,000 Federal prisoners from Wilmington, which it seems cannot be exchanged there. Is it the policy of their own government to starve them?

Mr. Burgwyn, of North Carolina, writes to the President (11th inst.) that some 15,000 bales of cotton are locked up in Wilmington, belonging to speculators, awaiting the coming of the enemy, when the city will certainly fall into their hands. He says Gen. Bragg's orders regarding its removal are wholly disregarded; and he implores the President to prevent its falling into the enemy's hands, and disgracing his State as Georgia was disgraced by the cotton taken at Savannah. He says these speculators have an understanding with the enemy. The President indorses, simply, "For attention—J. D."

I bought quarter ounce early York cabbage-seed to-day at $10 per ounce.

FEBRUARY 23D.—Raining; the most inclement February for years.

It is stated that Gen. J. E. Johnston has been replaced in command of the army in front of Sherman; a blunder, for Beauregard's friends will raise a clamor.

Grant's men fired salutes yesterday in honor of the DAY—22d—and had the Richmond papers read to them by order of Gen. Grant—accounts of the fall of Charleston. Our government will continue this fatal policy of allowing easy communication between Richmond and the enemy, begun by Mr. Benjamin, and continued by his successors! It will ruin us, and would destroy any cause. Next, our papers will announce the fall of Wilmington.

Three preachers—Hoge, Burroughs, and Edwards—have sent in a proposition to the President, to take the stump and obtain subscriptions of rations for the troops. The President marks it "special," and refers it to the Secretary "for attention and advice." Humbugged to the end! These men might fight, but they won't. They will speak two words for the soldiers, and one for themselves. I believe two of them are Northern men. What idiocy! If they meddle at all in the carnival of blood, I would put them in the ranks.

Gen. Bragg says he is greatly outnumbered by the enemy's two corps near Wilmington. Of course he will evacuate.

There is no money (paper) in the Treasury. Mr. Trenholm, seeing Mr. Memminger abused for issuing too much paper money, seems likely to fall into the opposite error of printing too little, leaving hundreds of millions of indebtedness unpaid. This will soon rouse a hornet's nest about his ears!

Gold is arriving from Charlotte, N. C., and I suppose from other places. Its accumulation here, when known to the enemy, as it certainly will be, only endangers the city more and more.

Mr. Harman, of Staunton, suggests that every house in Virginia be visited, and one third the subsistence for man and beast be bought at market price. He says that would subsist the army.

FEBRUARY 24TH.—Rained all day yesterday; cloudy and cool this morning. We have no news—only rumors that Wilmington has been abandoned, that A. P. Hill's corps (Lee's army) has marched into North Carolina, etc.

Yesterday the Senate voted down the bill to put 200,000 negroes in the army. The papers to-day contain a letter from Gen. Lee, advocating the measure as a necessity. Mr. Hunter's vote defeated it. He has many negroes, and will probably lose them; but the loss of popularity, and fear of forfeiting all chance of the succession, may have operated on him as a politician. What madness! "Under which King, Benzonian?"

The President and Gen. Breckinridge rode out to Camp Lee yesterday, and mingled with the returned prisoners, not yet exchanged. They made speeches to them. The President, being chilled, went into a hut and sat down before a fire, looking ill and wan.

The Bureau of Conscription being abolished, the business is to be turned over to the generals of reserves, who will employ the reserves mainly in returning deserters and absentees to the army. The deserters and absentees will be too many for them perhaps, at this late day. The mischief already effected may prove irremediable.

A dispatch from Gen. Lee, this morning, states that Lieut. McNeill, with 30 men, entered Cumberland, Maryland, on the 21st inst., and brought off Gens. Crook and Kelly, etc. This is a little affair, but will make a great noise. We want 300,000 men in the field instead of 30. However, this may be the beginning of a new species of warfare, by detached parties. Our men, of course, have the best knowledge of the country, and small bands may subsist where armies would starve. The war can be prolonged indefinitely, if necessary, and probably will be, unless there should be some relaxation of the stringency of measures on the part of the United States Government.

The markets are now almost abandoned, both by sellers and purchasers. Beef and pork are sold at $7 to $9 per pound, and everything else in proportion. Butter, from $15 to $20.

The President walked down to his office after 11 o'clock this morning, very erect, having heard of Lieut. McNeill's exploit.

Another dispatch from Gen. Lee says detachments of Gen. Vaughan's cavalry a few days ago captured two of the enemy's posts in Tennessee beyond Knoxville, with 60 prisoners, horses, etc.

The following letter from Gen. Lee, on the subject of putting negroes into the army, clearly defines his views on that important subject:

"HEADQUARTERS CONFEDERATE STATES ARMIES,

"February 18th, 1865.

"HON. E. BARKSDALE, HOUSE OF REPRESENTATIVES, RICHMOND.

"SIR:—I have the honor to acknowledge the receipt of your letter of the 12th inst., with reference to the employment of negroes as soldiers. I think the measure not only expedient, but necessary. The enemy will certainly use them against us if he can get possession of them; and as his present numerical superiority will enable him to penetrate many parts of the country, I cannot see the wisdom of the policy of holding them to await his arrival, when we may, by timely action and judicious management, use them to arrest his progress. I do not think that our white population can supply the necessities of a long war without overtaxing its capacity and imposing great suffering upon our people; and I believe we should provide resources for a protracted struggle—not merely for a battle or a campaign.

"In answer to your second question, I can only say that, in my opinion, the negroes, under proper circumstances, will make efficient soldiers. I think we could at least do as well with them as the enemy, and he attaches great importance to their assistance. Under good officers, and good instructions, I do not see why they should not become soldiers. They possess all the physical qualifications, and their habits of obedience constitute a good foundation for discipline. They furnish a more promising material than many armies of which we read in history, which owed their efficiency to discipline alone. I think those who are employed should be freed. It would be neither just nor wise, in my opinion, to require them to serve as slaves. The best course to pursue, it seems to me, would be to call for such as are willing to come with the consent of their owners. An impressment or draft would not be likely to bring out the best class, and the use of coercion would make the measure distasteful to them and to their owners.

"I have no doubt that if Congress would authorize their reception into service, and empower the President to call upon individuals or States for such as they are willing to contribute, with the condition of emancipation to all enrolled, a sufficient number would be forthcoming to enable us to try the experiment. If it proved successful, most of the objections to the measure would disappear, and if individuals still remained unwilling to send their negroes to the army, the force of public opinion in the States would soon bring about such legislation as would remove all obstacles. I think the matter should be left, as far as possible, to the people and to the States, which alone can legislate as the necessities of this particular service may require. As to the mode of organizing them, it should be left as free from restraint as possible. Experience will suggest the best course, and it would be inexpedient to trammel the subject with provisions that might, in the end, prevent the adoption of reforms suggested by actual trial.