is
the Secretary of the Treasury demurred, and made a formal complaint to
the President, who most indignantly indorsed on the paper that the
conduct of the officer was "very reprehensible," that if when the
offense was committed, the battalion had been dismissed, the military
authority of the officers ceased, and as civil officers, all were on the
same footing. He ordered the Secretary to make this known to the
officers, etc. None believe now that the President ever threatened to
turn the clerks out of office, as represented, nor wished them put in
the army, as hinted.

JULY 8TH.--Clear; hot and dusty.

The news of the falling back of Gen. Johnston on Atlanta, Ga., causes no
uneasiness, for the destruction of Sherman's army is deemed the more
certain the farther he penetrates.

There is nothing of interest from Petersburg, but there are rumors of
demoralization and disaffection in Grant's army. His men suffer for
water.

Still we get no letters from the South, beyond the point on the Danville
Railroad reached by the raiders, who tore up 18 miles of the track.

We have nothing definite from Early's column yet, but no doubt there is
alarm enough in Pennsylvania and in Washington City by this time.

JULY 9TH.--Dry and pleasant.

We have a rumor to-day of the success of a desperate expedition from
Wilmington, N. C, to Point Lookout, Md., to liberate the prisoners of
war (20,000) confined there and to arm them. If this be confirmed, the
prisoners will probably march upon Washington City, and co-operate with
Gen. Early, who has taken Martinsburg (with a large supply of stores),
and at last accounts had driven Sigel back to Washington, and on the 6th
inst. was (by Northern accounts) at Hagerstown, Md. Much excitement
prevails there. Lincoln has called for the militia of the surrounding
States, etc.

We have British accounts of the sinking of the ALABAMA, near Cherbourg,
by the United States steamer Kearsarge, but Semmes was not taken, and
his treasure, etc. had been deposited in France.

JULY 10TH.--The drought continues; vegetation wilting and drying up.
There is no war news, save some shelling by the enemy at Petersburg.

The raiders have caused many who were hiding and hoarding their meat and
grain to bring them to market, for fear of losing them. This has
mitigated the famine, and even produced a slight reduction of prices.

But the gardens are nearly ruined, and are only kept alive by watering
freely. Mine h