AUGUST 4th.—The partial gloom continues. It is now ascertained that Gen. Morgan is a prisoner; only some 250 of his men, out of 3000, having escaped.
Lee is falling back on this side of the Rappahannock. His army has been diminished by desertions; but he has been reinforced pretty considerably since leaving Pennsylvania. The President’s address may reinforce him still more; and then it may be possible a portion of Bragg’s and Johnston’s armies may be ordered hither. If this should be done, the next battle may be fatal to Meade. Our people are thirsting for another victory; and may expect too much.
Confederate notes are now given for gold at the rate of $12 or $15 for $1. Flour is $40 per barrel; bacon, $1.75 per pound; coal, $25 per cart-load; and good wood, $30 per cord. Butter is selling at $3 per pound, etc. etc.
Nevertheless, most men look for relief in the foreign complications the United States are falling into. England will not prohibit the selling of steamers to the Confederate States, and the United States say it shall not be done; and France has taken possession of Mexico, erecting it into an Empire, upon the throne of which will be seated some European ruler. We think recognition of our government is not far behind these events; when we shall have powerful navies to open the blockade. We are used to wounds and death; but can hardly bear starvation and nakedness.