AUGUST 9th.—Very hot; very dry; very dusty.
The President has directed the late Gen. (now Lieut. -Col.) Pemberton to organize a mortar and cavalry force to dislodge the enemy from Deep Bottom, on this side of the river, and to select three or four batteries to render the navigation of the James River difficult and dangerous. Col. P. says he must have some 1500 cavalry, etc.
Letters from Mr. McRae, our agent abroad, show that our finances and credit are improving wonderfully, and that the government will soon have a great many fine steamers running the blockade. Mr. McR. has contracted for eight steel-clad steamers with a single firm, Frazer, Trenholm & Co.—the latter now our Secretary of the Treasury.
The President indorsed a cutting rebuke to both the Secretary of War and a Mr. (now Lieut.-Col.) Melton, A. A. General’s office, to-day. It was on an order for a quartermaster at Atlanta to report here and settle his accounts. Mr. M. had written on the order that it was issued “by order of the President.” The President said he was responsible for all orders issued by the War Department, but it was a great presumption of any officer in that department to assume to indorse on any paper that it was by his special order, and that, too, “by command of the Secretary of War,” the usual form.