Gen. C. J. McRae, charged with the investigation of the accounts of Isaacs, Campbell & Co., London, with Major Huse, the purchasing agent of Col. J. Gorgas, Chief of Ordnance, reports irregularities, overcharges, etc., and recommends retention of gold and cotton in this country belonging to I., C. & Co.
Mr. —— informed me to-day that he signed a contract with the Commissary-General last night to furnish meat on the Mississippi in Tennessee, in exchange for cotton. He told me that the proposition was made by the Federal officers, and will have their connivance, if not the connivance of Federal functionaries in Washington, interested in the speculation. Lieut.-Col. Ruffin prefers trading with the enemy at New Orleans.
It is rumored that Mr. Seddon will resign, and be succeeded by Gov. Letcher; notwithstanding Hon. James Lyons asserted in public (and it appears in the Examiner to-day) that Gov. L. told Gen. J. R. Anderson last year, subsequent to the fall of Donelson, “he was still in favor of the Union.”
December 20th.—We have nothing new yet from Averill’s raiders; but it is said Gen. Lee has set a trap for them. From East Tennessee there is a report that a battle has taken place somewhere in that region, but with what result is not yet known.
There is much consternation among the Jews and other speculators here, who have put in substitutes and made money. They fear that their substitutes will be made liable by legislative action, and then the principals will be called for. Some have contributed money to prevent the passage of such a law, and others have spent money to get permission to leave the country. Messrs. Gilmer and Myers, lawyers, have their hands full.
The Confederate States Tax act of last session of Congress is a failure, in a great measure, in Virginia. It is said only 30,000 bushels of wheat have been received! But the Governor of Alabama writes that over 5,000,000 pounds of bacon will be paid by that State.
December 21st.—We have dispatches to-day from Western Virginia, giving hope of the capture of Averill and his raiders.
Such is the scarcity of provisions, that rats and mice have mostly disappeared, and the cats can hardly be kept off the table.
December 22d.—Averill has escaped, it is feared. But it is said one of his regiments and all his wagons will be lost.
Gen. Longstreet writes (16th instant) that he must suspend active operations for the want of shoes and clothing. The Quarter-master-General says he sent him 3500 blankets a few days since.