Unto the heart of guilt. A still, small voice,

Which, like the mountain streamlet, wears its way

Over the hardest rock.”

The small armies of the Confederates have the advantage of right on their side, and

“How weak an army can strike a giant’s blow,

When Providence directs it.” * *

July 25th. Gold to-day is a peg higher, closing at 120⅛, with a sharp demand for export. Flour, wheat and corn, following the law of attraction, are “up” too. Inflation is the order of the day, and under the exhilarating influence of plenty of paper money, nobody appears to dream of the possibility that the bubble is ever going to burst. I glean the following from Northern papers: The news from Louisville, Kentucky, concerning Morgan’s movements is, that between Crab Orchard and London he destroyed several wagons of a Federal train destined for General Morgan’s command at Cumberland Gap. Of course the wagons, whose number is indefinitely stated, were not empty ones, but whether they contained commissary stores, or material of war, is not mentioned. The “Courier” and “Eugene,” whilst ascending Green River, Kentucky, with troops, were fired into by a party of cavalry. At McAllister’s landing, two miles beyond Newburg, Indiana, the steamer Commercial was also attacked in a similar manner; whilst at Randolph, Missouri, the Belle, on her way from Memphis to St. Louis, was likewise fired upon. “The result,” we are told, “was unknown.” At Hudson, Missouri, Porter’s guerrillas were attacked and routed by a detachment of Federal cavalry under Colonel McNeill. The Federal loss is set down at fifteen killed and thirty wounded. The guerrilla loss is said to be much heavier. There was renewed excitement at Nashville, Tennessee, on Monday evening last—the Federal pickets on the Lebanon having been captured by the guerrillas under Colonel Forrest, who was reported to be in force within five miles of the city. The Confederates have also broken up the railway communication between Corinth and Tuscumbia. As the Tennessee river is no longer navigable, in consequence of the low stage of water, great difficulty, it is said, will be experienced in providing with adequate supplies those portions of Buell’s army which are at or near Tuscumbia.

We know but little concerning the present condition of the army now encamped under cover of the gunboats on the James river, beyond what is furnished by the correspondents of Northern journals. From these sources, however, we learn that the furlough fever has somewhat abated, that many of those who contemplated asking for leave of absence have concluded to remain, but that many other officers, surfeited with war and its horrors, have sent in their resignations, and “want to go home.” The Confederates are reported to be in considerable force on both sides of the James river, from four to eight miles below the mouth of the Chickahominy, whilst above, at Turkey Island Bend, Curl’s Neck, and at Dutch Gap, they are constructing large and massive batteries. On several occasions the gun boats have driven them from their work, but it was resumed again as soon as the boats retired, and the batteries are now supposed to be “fully prepared, equipped, and ready for future action.” It is not surprising, then, that it should be rumored “that the troops would receive orders, in the course of a few days, to evacuate their present position,” where they suffer terribly for want of pure and wholesome water, and are weakened down with diarrhœa and dysentery. It seems scarcely probable, however, that McClellan will abandon the “secure” position he has already sacrificed so much to attain. The report to that effect is, nevertheless, gravely announced by the correspondent of the Philadelphia Enquirer, and is reproduced, without comment, in the New York papers. The War Department has issued an order authorizing the military commanders within the States of Virginia, South Carolina, Georgia, Alabama, Mississippi, Louisiana, Texas and Arkansas, to seize any real or personal property which may be necessary or convenient for their respective commands, and also to destroy property for military purposes. It is further ordered that the negroes within and from the above States shall be employed as laborers for military purposes, giving them reasonable compensation for their services, and that a record shall be kept, showing from whom the property and persons are taken, as a basis upon which compensation can be made in proper cases.

Saturday, July 26th. The papers say that McClellan remains quiet, while his officers are resigning as fast as they can. He may fly from our brave soldiers, and seek shelter under his gunboats, but he cannot flee from the retributive justice of heaven, let him go where he may:

“In vain he flies—the furies still pursue.