here, Early may even throw shell into the Federal city.

Peter V. Daniel sends the Secretary of War a letter from Mr.
Westmoreland, Wilmington, complaining that he is not allowed by
government agents to transport cotton to that port, where his steamers
are, _in redemption of Confederate States bonds_, while private persons,
for speculative purposes, are, through the favor (probably for a
consideration) of government officials, enabled to ship thousands of
bales, and he submits a copy of a correspondence with Col. Sims,
Assistant Quartermaster-General, and Lieut. Col. Bayne, who is charged
with the control of the exporting and importing business. Mr. Daniel
thinks there is some "bribery and corruption" even in the South. But Mr.
Seddon is incredulous sometimes.

The express company has an arrangement with Col. Sims, the Assistant
Quartermaster-General, by which much freight is transported.

New potatoes are selling at $4 per quart in the market.

JULY 6TH.--Hot and dry.

We have no news to-day, but there are rumors that Grant is preparing to
abandon his position. He cannot remain where he is, inactive. There is a
scarcity of water, and the location is unhealthy.

We had corn bread and gravy for dinner, with a tremendous dessert, the
suggestion of Custis, consisting of whortleberry flitters, with butter
and sugar sauce, costing about $16.

JULY 7TH.--Hot and dry, but a light shower at 2 P.M., laying the dust.

A letter from Gen. Gilmer states that the Danville Railroad will not be
fully repaired before the last of this month. But there is a good wagon
road, and the army can be supplied by wagons when the cars cannot run,
some 25 miles.

There is an idle rumor that Wilmington has been taken by the enemy.
This, indeed, would hurt us. But we get neither letters nor dispatches
from beyond Petersburg.

Last week, when the local forces were recalled, one of the clerks in the
Treasury Department, upon being dismissed, fell upon his lieutenant, who
had insulted him while in the military service, and as a civilian, gave
him a beating. To-day the officer, after consulting his
lieutenant-colonel commanding, and, it is said, the Secretary of War,
sent a subaltern to the department to arrest the clerk, who resisted.
The subaltern said he acted by authority of the lieutenant-colonel and
the Secretary of War, and would arrest him and throw him in prison, if
he had to come with force enough to pull down the building. To all th