ST 8TH.--Hot and dry.

There are rumors of battles near Winchester and in Georgia.

Mr. Benjamin writes the Secretary of War for a passport for ----, who is
going to New York, "for our service."

In the assault on the fortifications near Petersburg last week, it is
said Hancock's (enemy's) corps lost half its men.

Watermelons have sold at $20 each; corn, $10 per dozen ears; and
everything else in the markets in proportion.

My yellow tomatoes are just maturing. The dry weather has ruined nearly
everything else in the garden.

AUGUST 9TH.--Very hot; very dry; very dusty.

The President has directed the late Gen. (now Lieut.-Col.) Pemberton to
organize a mortar and cavalry force to dislodge the enemy from Deep
Bottom, on this side of the river, and to select three or four batteries
to render the navigation of the James River difficult and dangerous.
Col. P. says he must have some 1500 cavalry, etc.

Letters from Mr. McRae, our agent abroad, show that our finances and
credit are improving wonderfully, and that the government will soon have
a great many fine steamers running the blockade. Mr. McR. has contracted
for eight _steel_-clad, steamers with a single firm, Frazer, Trenholm &
Co.--_the latter now our Secretary of the Treasury_.

The President indorsed a cutting rebuke to both the Secretary of War and
a Mr. (now Lieut.-Col.) Melton, A. A. General's office, to-day. It was
on an order for a quartermaster at Atlanta to report here and settle his
accounts. Mr. M. had written on the order that it was issued "by order
of the President." The President said he was responsible for all orders
issued by the War Department, but it was a great presumption of any
officer in that department to assume to indorse on any paper that it was
by his special order, and that, too, "by command of the Secretary of
War," the usual form.

AUGUST 10TH.--Hot and dry until 4 P.M. Gust, and 15 minutes' rain. Good
for turnips.

Forts Gaines and Powell are lost--the latter blown up. Gen. Maury
telegraphs for infantry, has some 4000 men for the defense of Mobile,
etc.

Our raiders, under McCausland and Bradley Johnson, it is said were
surprised and defeated last Sunday, with loss of 400 men, 500 horses,
and 4 pieces of artillery. A rumor prevails that Early has gained
another victory near Winchester.

No news yet from our agent sent to North Carolina to purchase supplies,
but we learn flour and bacon are not held one quarter as high th