War of the Rebellion: Serial 124 Page 0604 CORRESPONDENCE, ETC.

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the office of the U. S. Coast Survey, gives the relative boundaries of the territory held by the loyal people at the outbreak of the rebellion and at the present time.

It is estimated that over 200,000 square miles have been recovered from the possession of the rebels, a territory as large as Austria or France or the Peninsula of Spain and Portugal. In the mouth of July alone the battle of Gettysburg, in Pennsylvania, the surrenders of Vt Hudson, in Mississippi, and the retreat of Bragg's army from his fortified positions of Shelbyville and Tullahoma, cost the enemy in killed, prisoners, and deserters, probably one-third of their entire force.

It is not probable that they have now under arms more than 250,000 men, if so many. A levy of all the able-bodied men not in the rebel service has been ordered by proclamation of Mr. Davis. This, if carried into effect, will force into their ranks every man within their lines capable of bearing arms. It will exhaust the whole material of which to make soldiers. The Southern press, in their comments upon the proclamation, estimate the total number of conscripts to be gained at from 70,000 to 95,000. None put forth a higher estimate.

Our armies having captured vast numbers of prisoners, forced the rebel armies at every point of contact either to surrender or retreat, low confront them everywhere in superior numbers.

The places of the nine-months" and two-years" men are being filled by the first draft under the U. S. law for enrolling the national forces. To this draft, ordered by their own votes, the people are submitting with less protest and disorder than might have been expected from a people to whom it is so new. In New York alone has any serious outbreak occurred, and this, the mob showing by its acts that it was led by thieves and plunderers, was speedily put down. In other places the drafted men form themselves into processions and display the national flag and cheer for the country and the Union.

Our armies are everywhere well equipped, abundantly fed, and supplied with all the means of transportation. The soldiers of two years" service bear themselves as veterans and show greater steadiness in every conflict. The men accustomed to the camp, hardened by exercise and exposure, make marches which in the beginning of the ear would have been impossible. The whole Nation is becoming familiar with arms.

All needed military supplies are now abundantly and cheaply produced within our own limits. Within four days after requisitions to rep.ace the horses killed or worn out in the campaign in Maryland were received at Washington 6,200 remount horses, ordered by telegraph from all the markets of the country, were speeding by railroad to the Army of the Potomac. Not less than 9,000 fresh horses have been issued to that army in the month of July.

Our bonds are purchased by our own people at par at the rate of $1,200,000 to $2,000,000 per day, while exchange on London sells in New York at $1.42. Gold sells at 129.

A dollar in gold is reported as bringing in Richmond $11 in the rebel notes. Thus, while the loyal people are still able to supply men and all the material of war and show, by the price of gold and their purchases of the bonds of the Unites States, their confidence in the success of their cause, the rebels are short of men, of material, and will part with $11 of their currency for a dollar in gold.

The rebels are a gallant people and will is exhaustion of men and of money that finally terminates all modern wars, and in their case that exhaustion rapidly approaches.