JULY 5th.—Cool and dry, everything suffering for rain.
All quiet about Petersburg, but later in the day a rumor sprung up that fighting had recommenced there. I doubt it, because by Northern accounts I see Gen. Early is destroying railroads beyond the Potomac, and will undoubtedly threaten Washington itself. If Grant fails to send troops there, Early may even throw shell into the Federal city.
Peter V. Daniel sends the Secretary of War a letter from Mr. Westmoreland, Wilmington, complaining that he is not allowed by government agents to transport cotton to that port, where his steamers are, in redemption of Confederate States bonds, while private persons, for speculative purposes, are, through the favor (probably for a consideration) of government officials, enabled to ship thousands of bales, and he submits a copy of a correspondence with Col. Sims, Assistant Quartermaster-General, and Lieut.-Col. Bayne, who is charged with the control of the exporting and importing business. Mr. Daniel thinks there is some “bribery and corruption” even in the South. But Mr. Seddon is incredulous sometimes.
The express company has an arrangement with Col. Sims, the Assistant Quartermaster-General, by which much freight is transported.
New potatoes are selling at $4 per quart in the market.