War of the Rebellion: Serial 118 Page 0365 CORRESPONDENCE, ETC. - UNION.

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the restoration of the Democratic party and overthrow of the present Administration by force if it must be; the restoration of the South or a union with it would give them again control of the Senate and the power. systematic falsification of the purposes and acts of the Government is made use of to prejudice and exasperate the people and portions of the press so thinly disguise their treason as to make whatever they do or say for appearance sake only more destructive to the morals of the public.

6. Their connection with Southern traitors is to be noted. It is claimed in their lodges that they have the co-operation of the fraternity in Kentucky, Tennessee, &c. ; that at the next raid of Morgan he will leave the command and quietly appear to raise the standard of revolt in Indiana. Thousands believe this, and his photograph is hung in many houses. In some counties his name is daily praised. Besides this some of the prisoners of war now here have the same views as to the intent of these domestic traitors; have the same signs, grips, watchwords and the same battle signals.

II. - PRESENT CONDITION OF THE ORGANIZATION.

This has been incidentally adverted to. Additional facts are given to illustrate its practical workings and extent. Not long since over 200 mounted men, many of them armed, rode in to Franklin, Johnson County, and openly declared for Jeff. Davis, denounced our Government and declared their desire for immediate peace under the supremacy of Davis as a substitute for Mr. Lincoln. On the 18th instant in Putnam County a procession open resolved that they were ready to renounce the United States, cheered for Jeff. Davis and were cheered in turn. On Thursday last a sergeant and six men went to Raleigh, Rush County, to arrest deserters (whom a party of two could not secure and were driven away) and within two hours after an alarm signal about 200 mounted men gathered armed with rifles, shotguns and revolvers, and compelled the detail to return. I sent a special train with 100 men the same night and arrested the deserters, however, and shall turn the ringleaders over to the U. S. court.

In the Morgan County case the leaders of the party who attacked the cavalry detachment were proven to be Knights of the Golden Circle. At Brown County last week a committee of them drove out a Union Democrat, threatening the penalty of death upon him for having left the Knights. Two cases have happened in this city where the lives of men suspected of turning informers were in danger. One gave notice where he was and he was arrested by me (pro forma) and his assailant was confined for trial, being a soldier. Another was kept confined one night by nine men and escaped by cunning. Several companies have been nearly ruined by them. I am investigating a case where I do not believe there are twenty loyal men in the company. The foregoing are instances of the boldness of the order, which could be multiplied.

In the central lodge at this city the members of the order were reported at 92,000 between sixteen and seventy years of age four weeks ago. This was then extravagant, but their or quite that number now as they are known to have lodges in nearly every county - I think all but seven - and daily assume greater boldness. That a large number of the common classes in some of the rural districts who are members of the order watch for some armed overthrow of the Administration is certain. The numbers of god and true citizens who report and the concurrent statements of deserters prove this.