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 ce