been for the stupidity of our
Dutch Secretary of the Treasury, Mr. Memminger, there would have been
no financial difficulties. If he had recommended (as he was urged to do)
the purchase by the government of all the cotton, it could have been
bought at 7 cents per pound; and the _profits_ alone would have defrayed
the greater portion of the expenses of the war, besides affording
immense _diplomatic_ facilities and advantages. But red-tape etiquette,
never violated by the government, may prove our financial ruin beyond
redemption. It costs this government five times as much to support an
army as it does the United States; and the call for conscripts is a
farce, since the speculators (and who is not one now?) will buy
exemptions from the party who, strangely, have the authority to grant
them.

The last accounts from Jackson state that Burnside is reinforcing Grant,
and that heavy skirmishing is going on daily. But all suppose that
Johnston must retreat. And Bragg is in no condition to face Rosecrans.

Whether Lee will come hither or not, no one knows; but some tremble for
the fate of Richmond. Lee possibly may cross the Potomac again, however,
if Meade detaches a heavy force to capture Richmond.

What our fate would be if we fall into the hands of the invader, may be
surmised from the sufferings of the people in New Orleans.

JULY 18TH.--Lee has got over the Potomac with a loss, in crossing, of
1500; and Johnston has abandoned Jackson, Miss.

But we have _awful_ good news from New York: an INSURRECTION, the loss
of many lives, extensive pillage and burning, with a suspension of the
conscription!

Gen. Morgan is in the enemy's country.

JULY 19TH.--We have no news this morning. But a rumor prevails, which
cannot be traced to any authentic source, that Texas has put herself
under the protection of France. It is significant, because public
sentiment seems to acquiesce in such a measure; and I have not met with
any who do not express a wish that it may be so. Texas, Louisiana, and
Arkansas are now isolated, and no protection or aid can be given them by
the government here; and it is natural, after the fall of New Orleans
and Vicksburg, for the people to hope that the invaders may be deprived
of their prey just at the moment when they anticipated a realization of
its enjoyment.

Hon. Wm. Porcher Miles writes that, after consultation, the officers
have decided that it would be impracticable to hold Morris Island, even