ice, 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.--Cl