furnish a sufficient supply for the population of Richmond. The report of the Richmond market on the 6th of November, was as follows: There is no wheat in market, but we have been informed that sales of small quantities have been made during the week at $10. With an open market, a higher figure would no doubt be reached until a fair supply could be thrown in. The injudicious and indiscriminate system of impressment by the Government, through impressing agents who have no practical knowledge of the wants of the army or the necessities of the people, has made the supply of bread for those outside the army a question for serious consideration, and if not speedily remedied will make starvation a more than probable event. Within two weeks flour has jumped from $40 to $75 per barrel, and we have even heard of sales at $100. Some are ready to attribute this unprecedented advance solely to speculation, but this is a mistake. The flour is not in the market, and people are beginning to learn that an actual scarcity of the staff of life stares them in the face. We do not mean an actual scarcity in the country, but a scarcity in the market, caused by the starvation plan of impressment by the Govern ment. Beardless and senseless boys, who do not know how many bushels of wheat it requires to make a barrel of flour, are sent through the country with authority to impress supplies for the army, and, without knowing what is needed, they serve written notices upon the farmers that their whole crops are impressed, and that they must not send one bushel of grain to the market. The farmer believes that the necessities of the Government require all that he has, feels that he is deprived of his interest in his grain, and it is left to sprout and spoil in stacks, or mould and mildew in granaries. This is one reason, and the chief one, too, why we have not flour in the Richmond market. The same system is pursued, and the same starvation plan adhered to. Corn was yesterday selling at $14 50 per bushel, and scarce at that. Country Produce and Vegetables.-Bacon, hog-round, $250 to $3; lard, $2 10; butter, $3 75 to 84; eggs, 82; Irish potatoes, $10 to $12 per bushel; sweet do., 812 to $15; tallow candles, $3 50 to $3 75; salt, 45c. Groceries.-Coffee, 89 50 to $10; sugar: common brown, $2 75 to $3; crushed do., 85; sorghum molasses, from $12 to $15 per gallon; rice, 33c. per lb. by per lb. the tierce. Liquors.-Whiskey, $40 to $50 per gallon, according to quality; apple brandy, $34 to $36. In the city markets there has been a slight advance in nearly all the articles offered for sale. Fresh meats are worth from $1 25 to $1 50 for beef and mutton, and $2 for pork; chickens, $6 to $8 per pair; turkeys, $12 to $15 apiece; ducks, $7 to $8 per pair; raccoon, $10 apiece; opossum, from $2 50 to $5, according to size; rabbits, $1 50 to $2; squirrels, $1; fish: small ale wives, $2 per bunch of four; catfish, 81 50 to $2 per bunch of four; butter, $5 per pound; sweet potatoes, 82 50 per half peck; Irish potatoes, $2 per half peck; turnips, $2 per peck; cabbage, 75c. to $1 25 per head. Leather-Sole leather, $5 50 to 86; harness do., 85 50 to 86; upper do., $6 50 to $7. Hides are quoted at $1 for dry; $1 for salted green, and 60c. for green. The cotton accumulated by the Government amounted in August to five hundred thousand bales. This cotton was principally in the States of Georgia and Alabama, and some also in the eastern part of Mississippi, Northwestern Louisiana, and Texas, and was stored on the plantations of the planters from whom it was purchased, in sheds or warehouses three hundred feet from any other buildings, and in all cases the planters agreed with the Government to take the same care of the cotton as if it still belonged to them, and to deliver it to the order of the Government when wanted. The capture of all the seaports would not endanger the loss of a pound, as there were no stocks of cotton at any of them, nor were there any considerable stocks of cotton at any one place in the interior, care having been taken by the Confederate as well as State Governments, that no cotton should be stored at any point within five miles of a railroad station or navigable stream. That portion of the crop of 1861 which had been brought to the various interior depots, had been taken back to the plantations by special order of the State Governments. This cotton would be delivered to any holder of the bonds on demand, as provided for in the fourth article of the contract. In the States of Alabama and Mississippi, the cotton had been sampled, weighed, marked, and invoiced, and the agents of the bondholders could examine the samples at the offices of the chief agents of the loan in the different States, and take their orders on the planters for the delivery of the cotton without trouble or expense. The cotton obtained under this loan was not subject to any tax or duty, except the export duty of one eighth of a cent per pound, existing at the date of the contract. The purchasing agent of the Government issued a circular on the 25th of July, announcing the policy of the Government as follows: The policy of the Government is, that the same course be pursued with regard to public or private cotton, viz.: apply to it the torch whenever in immi the enemy, but only in such cases. nent and manifest danger of falling into the hands of In presence of a hand, where military and permanent occupancy is mere raid, cotton should not be burnt. On the other likely to be had, it is of the last importance that cotton should not be the trophy of the enemy. Notwithstanding the general stringency of the blockade, many trips were made by vessels part of the year, with great profit to the ownto Charleston and Wilmington during the early ers. The officers of the Government owned many of these vessels. A large number, however, were captured. The relations of the Confederate States with foreign nations underwent no favorable change during the year. England and France steadily declined to treat with them as independent States. Their views were approved by all the other States of Europe. It finally became evident that the simple recognition, not accompanied or followed by anything in the shape of intervention, would be fruitless. The successes of the North also were such as to create the conviction in Europe that the time for declaring the seceded States to have established their independence had not yet arrived. Yet, in England, the Confederate States have enjoyed the sympathy of an active portion of the people, who were led to believe that the struggle was really a war of independence. Nor was this all; for they notoriously received assistance from individuals in that country, which could not have been tolerated by the law without giving to the United States a ground for complaint, and which, though not so tolerated and furnished with the utmost secrecy, brought the United States and England to the verge of war. It appeared by despatches of the Confederate Government, which were intercepted near the beginning of the year, that it had contracted for six ironclad steamers, combining the capacities of freighting and fighting ships, to be constructed in England, and to be paid for with cotton. On the 5th of June, President Davis address ed a letter to the British consul, Moore, at Richmond, revoking his exequatur. The reason given for this was, that Moore "assumed to act as consul for a place other than the city of Richmond, and a State other than the State of Virginia, and was thereupon, on the 20th day of February, 1863, requested by the Secretary of State to submit to the Department of State his consular commission, as well as any other authority he may have received to act in behalf of the Government of her Britannic Majesty before further correspondence could be held with him as her Majesty's consul at the port of Richmond; and whereas the said George Moore has lately, without acceding to said request, entered into correspondence, as her Majesty's consul, with the Secretary of War of these Confederate States, thereby disregarding the legitimate authority of this Government." Subsequently, Mr. Fullerton, the British consul at Savannah, was dismissed, and all the other British consuls. In a letter to Mr. Fullerton, Mr. Benjamin, Secretary of State, thus explains the ground for the action of the Government: It thus appears that the Consular Agents of the British Government have been instructed not to confine themselves to an appeal for redress, either to courts of justice or to this Government, whenever they may conceive that grounds exist for complaint against the Confederate authorities in their treatment of British subjects (an appeal which has in no case been made without receiving just consideration), but that they assume the power of determining for themselves whether enlisted soldiers of the Confederacy are properly bound to its service; that they even arrogate the right to interfere directly with the execution of the Confederate laws, and to advise soldiers of the Confederate armies to throw down their arms in the face of the enemy. This assumption of jurisdiction by foreign officials within the territory of the Confederacy, and this encroachment on its sovereignty, cannot be tolerated for a moment; and the President has no hesitation in directing that all Consuls and Consular Agents of the British Government be notified that they can no longer be permitted to exercise their functions, or even to reside with the limits of the Confederacy. It was deemed proper to explain this proceeding to the Emperor of France, and in a letter to Mr. Slidell, October 8th, Mr. Benjamin says: The exercise of the droit de renvoi is too harsh, however, to be resorted to without justifiable cause, and it is proper that you should have it in your power to explain the grounds on which the President has been compelled to enforce it. Lest also the Government of his Imperial Majesty should be misled into the error of supposing that the rights of French citizens are in any manner involved in the action of the President, which has been rendered necessary by the reprehensible conduct of the British Consular Agents, you are requested to take an early occasion for giving such explanation to M. Drouyn de l'Huys as will obviate all risk of misapprehension. In August, Mr. Mason received instructions to withdraw from England. He had been sent to that country to endeavor to obtain the recognition of the Confederacy by Great Britain, and to act as minister upon such recognition. In the order of recall to him, Mr. Benjamin said: The President believes that the Government of her Majesty has determined to decline the overtures made through you for establishing, by treaty, friendly relations between the two Governments, and entertains no intention of receiving you as the accredited minister of this Government near the British court. Under these circumstances, your continued residence in London is neither conducive to the interest, nor consistent with the dignity, of this Government. He retired to France, but subsequently returned to England as a private citizen. In a letter to Mr. Lamar, commissioner to St. Petersburg, June 15th, Mr. Benjamin says: It has been suggested to this Government, from a source of unquestionable authenticity, that, after the recognition of our independence by the European Powers, an expectation is generally entertained by them that in our treaties of amity and commerce a clause will be intrade. It is even thought that neutral Powers may be troduced making stipulations against the African slave inclined to insist upon the insertion of such a clause as a sine qua non. He then proceeds to state the principles upon which the Confederacy is organized, and says: Moreover, any attempt on the part of the treaty-making power of this Government to prohibit the African slave trade, in addition to insuperable objections above suggested, would leave open the implication that the same power has the authority to permit such introduction. No such implication can be sanctioned by us. This Government unequivocally and absolutely denies its possession of any power whatever over the subject, and cannot entertain any proposition in relation to it. (See PUBLIC DOCUMENTS, MESSAGES TO CONFEDERATE CONGRESS.) The Proclamation of Emancipation to all persons held as slaves in certain States and Districts, issued by President Lincoln, on January 1st, 1863, caused great excitement in the Southern States. It stated that "the Executive Government of the United States, including the military and naval authorities thereof, will recognize and maintain the freedom of such persons; "also, "such persons will be received into the armed service of the United States," &c. Its immediate effect was expected to arise under these clauses. The Confederate Congress took action at once on the subject. It was at first contemplated to make slaves of all free negroes found with arms in their hands; to kill all slaves found armed, and to hand over to the State authorities all their officers, to be dealt with according to the laws of the States relative to persons exciting insurrection. Severe measures were proposed in the Confederate Congress. These, however, were not adopted, and the subject was referred to the discretion of the President. Whether any extreme measures were inflicted upon these soldiers or their officers during the year, is not officially known. It was finally considered that, under the law of nations, a belligerent could employ against his antagonist any persons whom he could obtain, and, therefore, free negroes captured as Federal soldiers were entitled to be treated as prisoners of war. On the 23d of April an Address to Christians throughout the World" issued at Richmond, signed by ninety-six clergymen of all denominations. After asserting that "the Union cannot be restored," and that "the Confederate Government is a fixed fact, the address proceeds to say: was The recent Proclamation of the President of the United States, seeking the emancipation of the slaves of the South, is, in our judgment, a suitable occasion for solemn protest on the part of the people of God throughout the world. The address charges President Lincoln with intending to produce a general insurrection of the slaves, and such an insurrection "would make it absolutely necessary for the public safety that the slaves be slaughtered, and he who would write the history of that event -would record the darkest chapter of human woe yet written." The Proclamation, however, liberated no slaves except such as could come within the lines of the Federal armies. The political aspect of the Proclamation was discussed at some length in the Message to the Confederate Congress in January. (See PUBLIC DOCUMENTS.) The difficulties which had arisen relative to the exchange of prisoners (see PRISONERS), and the threats of retaliation for some occurrences on each side, which were regarded by the other as unjustifiable acts of cruelty, was made the ostensible occasion for a mission by VicePresident Stephens to Washington. The following correspondence embraces all the details on the subject: RICHMOND, July 2d, 1863. Hon. A. H. Stephens, Richmond, Va.: SIR: Having accepted your patriotic offer to proceed as a military commissioner, under flag of truce, to Washington, you will receive herewith your letter of authority to the commander-in-chief of the army and navy of the United States. This letter is signed by me, as commander-in-chief of the Confederate land and navy forces. You will perceive from the terms of the letter that it is so worded as to avoid any political difficulties in its reception. Intended exclusively as one of those communications between belligerents which public law recognizes as necessary and proper between hostile forces, care has been taken to give no pretext for refusing to receive it on the ground that it would involve a tacit recognition of the independence of the Confed that I am not recognized to be President of the Confederacy. In this event, you will decline any further attempt to confer on the subject of your mission, as such conference is admissible only on the footing of perfect equality. My recent interviews with you have put you so fully in possession of my views that it is scarcely necessary to give you any detailed instructions, even were I, at this moment, well enough to attempt it. My whole purpose is, in one word, to place this war on the footing of such as are waged by civilized people in modern times; and to divest it of the savage character which has been impressed on it by our enemies, in spite of all our efforts and protests. War is full enough of unavoidable horrors, under all its aspects, to justify, and even to demand of, any Christian rulers who may be unhappily engaged in carrying it on, to seek to restrict its calamities, and to divest it of all unthe cartel for the exchange of prisoners on such a basis necessary severities. You will endeavor to establish as to avoid the constant difficulties and complaints which arise, and to prevent, for the future, what we deem the unfair conduct of our enemies in evading the delivery of the prisoners who fall into their hands; in retarding it by sending them on circuitous routes, and by detaining them, sometimes for months, in camps and in prisons, and in persisting in taking captives noncombatants. Your attention is also called to the unheard-of conduct of Federal officers in driving from their homes entire communities of women and children, as well as of men, whom they find in districts occupied by their troops, for no other reason than because these unfor tunates are faithful to the allegiance due to their States and refuse to take an oath of fidelity to their enemies. The putting to death of unarmed prisoners has been and the recent executions of officers of our army in Kena ground of just complaint in more than one instance, tucky, for the sole cause that they were engaged in recruiting service in a State which is claimed as still one of the United States, but is also claimed by us one of the not unconditionally abandoned, because it would justify Confederate States, must be repressed by retaliation if the like execution in every other State of the Confederacy, and the practice is barbarous, uselessly cruel, and can only lead to the slaughter of prisoners on both sides a result too horrible to contemplate without making every effort to avoid it. On these and all kindred subjects you will consider your authority full and ample to make such arrangements as will temper the present cruel character of the contest, and full confidence is placed in your judgment, objects of your mission, you will take care that the patriotism, and discretion, that while carrying out the equal rights of the Confederacy be always preserved. Very respectfully, (Signed) JEFFERSON DAVIS. RICHMOND, 8th July, 1863. His Excellency, Jefferson Davis: SIR: Under the authority and instructions of your letter to me of the 2d instant, I proceeded on the mission therein assigned, without delay. The steamer Torpedo, commanded by Lieut. Hunter Davidson, of the navy, was put in readiness as soon as possible, by order of the Secretary of the Navy, and tendered for the service. At noon, on the 3d, she started down James river, hoisting and bearing a flag of truce after passing City Point. The next day (the 4th) at about one o'clock P.M., when within a few miles of Newport News, we were met by a small boat of the enemy, carrying two guns, which also raised a white flag before approaching us. The officer in command informed Lieut. Davidson that he had orders from Admiral Lee, on board the United States flagship Minnesota, lying below, and then in view, not to allow any boat or vessel to pass the point near which he was stationed without his permission. By this officer I sent to Admiral Lee a note stating my objects and wishes, a copy of which is hereto annexed, marked A. I also sent to the admiral, to be forwarded, another in the same language addressed to the officer in command of the United States forces at Fort Monroe. The gunboat proceeded immediately to the Minnesota, with these despatches, while the Torpedo remained at anchor. Between 3 and 4 o'clock P.M., another boat came up to us, bearing the admiral's answer, which is hereunto annexed, marked B. We remained at or about this point in the river un person, and conferring upon the subject to which it re- ALEXANDER H. STEPHENS. [B] U. S. FLAGSHIP MINNESOTA, off Newport SIR: Your communication of this date is received. S. P. LEE, A. R. Admiral, [C] til the 6th inst., when, having heard nothing further To Rear Admiral S. P. LEE, U. S. Flagship Minnesota. from the admiral, at 12 o'clock M., on that day, I directed Lieut. Davidson again to speak the gunboat on guard, and to hand to the officer on board another note to his admiral. This was done. A copy of the note is appended, marked C. At half past two o'clock P.M., two boats approached us from below, one bearing an answer from the admiral to my note to him of the 4th. This answer is annexed, marked D. The other boat bore the answer of Lieut. Col. W. H. Ludlow to my note of the 4th, addressed to the officer in command at Fort Monroe. A copy of this is annexed, marked E. Lieut. Col. Ludlow also came up in person in the boat that brought his answer to me, and conferred with Col. Ould, on board the Torpedo, upon some matters he desired to see him about in connection with the exchange of prisoners. From the papers appended, embracing the correspondence referred to, it will be seen that the mission failed from the refusal of the enemy to receive or entertain it, holding the proposition for such a conference "inadmissible." The influences and views that led to this determination after so long a consideration of the subject, must be left to conjecture. The reason assigned for the refusal of the United States Secretary of War, to wit: that "the customary agents and channels" are considered adequate for all needful military "communica tions and conferences," to one acquainted with the facts, seems not only unsatisfactory but very singular and unaccountable; for it is certainly known to him that these very agents, to whom he evidently alludes, heretofore agreed upon in a former conference in reference to the exchange of prisoners (one of the subjects embraced in your letter to me), are now, and have been for some time, distinctly at issue on several important points. The existing cartel, owing to these disagreements, is virtually suspended, so far as the exchange of officers on either side is concerned. Notices of retaliation have been given on both sides. C. S. STEAMER TORPEDO, OFF NEWPORT NEWS, Va., 12 o'clock M., July 6th, 1863. Acting R. Admiral S. P. Lee, U. S. Flagship Minnesota: SIR: Will Admiral Lee inform me, if he can, how long it will probably be before an answer will be made to my note of the 4th instant? The effort, therefore, for the very many and cogent reasons set forth in your letter of instructions to me, to see if these differences could not be removed, and if a clear understanding between the parties as to the general conduct of the war could not be arrived at before this extreme measure should be resorted to by either party, was no less in accordance with the dictates of humanity than in strict conformity with the usages of belligerents in modern times. Deeply impressed as I was with these views and feelings, in undertaking the mission, and asking the conference, I can but express my profound regret at the result of the effort made to obtain it; and I can but entertain the belief that, if the conference sought had been granted, mutual good could have been effected by it; and if this war, so unnatural, 80 unjust, so unchristian, and so inconsistent with every fundamental principle of American constitutional liberty," must needs" continue to be waged against us, that at least some of its severer horrors, which now so eminently threaten, might have been avoided. Very respectfully, ALEXANDER H. STEPHENS. Will he please, also, forward the accompanying letter from Hon. Mr. Ould, Confederate Agent of Exchange, to Lieutenant-Colonel Wm. H. Ludlow, United States Agent of Exchange? Most respectfully, ALEXANDER H. STEPHENS. [D] U.S. FLAGSHIP MINNESOTA, OFF NEWPORT NEWS, Va., The customary agents and channels are adequate for I am, very respectfully, your obedient servant, Lieut.-Col. and Assistant Inspector-General, Agent for Exchange of Prisoners. At the beginning of the year the military power of the Confederacy was regarded by its citizens as able to cope very strongly with its adversary. It had been pressed back at some points, and received some severe blows, but it was very far from being either shattered or broken. The Mississippi river was firmly closed. The advance in Tennessee was firmly checked, and no progress was made by Gen. Hooker in Virginia. On all sides a hopeful aspect was presented until the crisis came at once and paralyzed the military strength in the field. The disaster at Gettysburg, the loss of Vicksburg and Port Hudson, the falling back of Gen. Bragg, and the success of Gen. Gillmore at Charleston, demonstrated that the military power in the field was broken. Unless new armies could be created or the reduced ranks refilled, an ultimate failure was certain. The views relative to the capture of Vicksburg were thus expressed: If it be fated that, in spite of all human valor and devotion can do, Vicksburg and its defenders should become the prey of the enemy, then, indeed, will come the tug of war. Then also will come the political crisis. Whatever of imbecility and faint-heartedness and downright latent toryism and treason exists in the Confederacy will at once receive a new accession of weakness; many will again begin to cry out for an "honorable peace," as they call it, by means of submis sion. Thus, Vicksburg is at this moment a point not only of strategic but also of political importance. While our flag flies defiant over the great river, no party of compromise can venture to raise its head; no man will dare to breathe one word of "reconstruction," in whole or in part. All will be good Confederates. The cause which is supposed to be failing and sinking is the one which is likely to be abandoned by the cowards and betrayed by the traitors. To the cause that prospers we are always as true as steel. In a speech before the Mississippi Legislature President Davis said: "Vicksburg and Port Hudson are the real points of attack. Every effort will be made to capture these places, with the object of forcing the navigation of the Mississippi, of cutting off our communications with the trans-Mississippi Department, and of severing the western from the eastern portion of the Confederacy. Let, then, all who have at heart the safety of the country go without delay to Vicksburg and Port Hudson." The division of the Confederacy produced by the loss of the Mississippi river, is shown by the following figures of the area on the west and east sides: sis President Davis ordered a day of fasting. humiliation, and prayer to Almighty God to be observed At the same time the North failed to push these advantages vigorously, and the campaigns closed for a time both east and west. The response of the Confederacy to the levy of all between eighteen and forty-five years of age was now watched with great interest. Meanwhile troops were sent from Virginia to Gen. Bragg, in Tennessee, and also from Gen. Meade, on the Federal side, and the result of the operations was another severe blow to the Confederacy in the loss of East Tennessee. Its effect was thus described: By the falling back of Gen. Bragg to the Georgia line, we lost the use of all the extensive mines and iren works of Tennessee and Northern Georgia, which left us but the almost untried ore fields of Alabama and North Carolina; the Western Virginia works being lost to us early in the war. Alabama, though rich in minerals of all kinds, had lacked the necessary energy and enterprise to develop its vast wealth. In the se lection of W. R. Hunt to take control of those import ant interests, the Department at Richmond was fortu nate in securing the services of one of the most intel ligent and energetic officers in our service. By his energy and perseverance, Alabama and Georgia mines had been made to meet all the demands of our armies and fortifications, including Charleston. In fact, it is said and believed by many that the city of Charleston would have been in the hands of the Yankees long since, but for the untiring labors of Major Hunt in furnishing the founderies and arsenals with ample material. The lack of military supplies created great embarrassment to the operation of the armies. This was increased whenever the blockade was most stringent. Immense numbers of Southern soldiers were clothed in the Federal uniforms which had been captured. At the close of the year there were three thousand bare footed men in Gen. Longstreet's corps. Blank ets and clothing were asked for with piteous appeals from Gen. Johnston's army, which had been commanded by Gen. Bragg until Decem ber. The army of Gen. Lee was likewise des titute of blankets. It was said: “Day by day the clothes made for the soldiers exhibit less wool and more cotton." Supplies could no longer be counted upon from abroad. The prospect for obtaining the raw materials was That is territory cut off. The following is thus estimated: what remains. Alabama.. 50,722 58,000 47,156 29,385 North Carolina (four fifths).. 40,600 Virginia (two thirds).... 41,000 Tennessee (one half) Florida (two thirds).. 22,800 40,000 329,663 In this extremity of the Government, a levy en masse of the fighting population was ordered. It was plain that, unless this order was complied with, the Confederacy would not be able to contend much longer in the field, except in Virginia and Charleston, with the forces and material of the North. In this cri Any one who buys beef has discovered that the quar ters and sides are rapidly diminishing in size. Younger cattle are being slaughtered every year. It is now thought that we will have to fall back upon milch cows. As cattle diminish, mutton must be substituted, and hence the sources both of leather and wool may be expected to decrease every month. Thus the prospect at home does not encourage the belief that we will be able to clothe armies larger than those which are now shivering in nakedness. The prospect for the subsistence of the army was thus represented: Very little bacon is left, beef is going, and mutton will hardly feed great armies, even if the supply were double what it is. It is said that Gen. Lee, during his late visit to this city, exclaimed that the citizens had living on a quarter of a pound of meat per day. The no right to indulge themselves while the soldiers were hue and cry against the starvation of Yankee prison |