DECEMBER 5TH.--Yesterday there was some little skirmishing below
Fredericksburg. But it rained last night, and still rains. Lee has only
30,000 or 40,000 effective men.

We have the Federal President's Message to-day. It is moderate in tone,
and is surprising for its argument on a _new proposition_ that Congress
pass resolutions proposing amendments to the Constitution, allowing
compensation for all slaves emancipated between this and the year 1900!
He argues that slaves are property, and that the South is no more
responsible for the existence of slavery than the North! The very
argument I have been using for twenty years. He thinks if his
proposition be adopted that "several of the border States will embrace
its terms, and that the Union will be reconstructed." He says the money
expended in this way will not amount to so much as the cost of a war of
subjugation. He is getting sick of the war, and therein I see the
"beginning of the end" of it. It is a good sign for us, perhaps. I
should not be surprised if his proposition had advocates in the South.

Lt.-Col. T. C. Johnson sent in a communication, to-day. He alludes to an
interview with the Secretary, in which the latter informed him that the
government intended to exchange cotton for supplies for the army, and
Lt.-Col. J. suggests that it be extended to embrace all kinds of
merchandise for the people, and informs him that New York merchants are
willing to send merchandise to our ports if we will permit their ships
to return laden with cotton, at 50 cts. per pound, and pledging
themselves to furnish goods at 50 per cent. advance on cost. He
advocates a trade of this nature to the extent of $100,000,000, our
government (and not individuals) to sell the cotton. The goods to be
sold by the government to the merchants here. I know not what answer the
Secretary will make. But I know our people are greedy for the
merchandise.

The enemy have shelled Port Royal, below Fredericksburg, in retaliation
for some damage done their gun-boats in the river by one of our land
batteries. And we have news of the evacuation of Winchester by the
enemy. The Northern papers say Burnside (who is not yet removed) will
beat Lee on the Rappahannock, and that their army on the James River
will occupy Richmond. When Lee is beaten, perhaps Richmond will fall.

A large number of our troops, recruited in Kentucky, have returned to
their homes. It is said, however, that they will fight the enem