JULY 3.

A boat from Vicksburg this morning brings news (but no official dispatches) that there has been an attack upon the place; that a portion of the fleet have got by the batteries and joined the fleet of Commodore Davis above; that General Williams has made a lodgment on the opposite bank of the river, erected a battery there, and with his rifle 12-pounders is throwing shells into the town and enemy's camp. This is the rebels' last defense on the river and must yield. We are threatened then with a guerrilla war, which is claimed will be interminable.

I take leave to suggest that it can be terminated in a few days. A reward offered of $1,000 for each guerrilla's head and freedom to the negro who should bring it in would bring that uncivilized system of warfare to a sudden termination by an equally uncivilized remedy-"fire set to fight fire."

I am sorry to say that some of the stories about the inhuman acts of our enemies are true.

Insults to the dead are too shocking to be tolerated. I hope all those who have whined over order No. 28 will read the orders which I have felt it my duty to enforce in the cases of Mrs. Philips, [Fidel] Keller, and [John W.] Andrews, copies of which I inclose.

I beg leave to call attention to my call for more troops. I have enough to hold all I have occupied, but if the ulterior movements in Texas and upon Mobile are to be carried out more will be required.

Colonel Deming again returns home for reasons which he prays leave to explain to the Department, and is charged with some personal communication to which I pray attention.

I am deeply gratified, as indeed are all the loyal citizens of New Orleans, to learn that Acting Brigadier-General Shepley has been made military governor of Louisiana. His successful administration of the city affairs has rendered him very acceptable.

It will be necessary to give him a commission as brigadier-general, so that he may be able to command the troops detailed to him to guard the State.

I have the honor to be, your obedient servant,

BENJ. F. BUTLER,

Major-General, Commanding.

[Inclosure No. 1.]

ADDRESS.

To the People of Louisiana:

The occupation by the enemy of a portion of the territory of our State imposes upon us new and unaccustomed responsibilities. It creates an anomalous condition of affairs, and establishes between the citizens of New Orleans and all other of our towns in the actual occupation of the enemy and those of the country parishes relations very different from those which regulate their ordinary intercourse. It is not surprising that a people who are now experiencing the first invasion of their State should not at the outset have appreciated the duties and necessities of the new position in which they suddenly find themselves placed.

New Orleans is the commercial depot of the State. To it the whole agricultural products of our soil are conveyed, and from it are brought in return a large measure of the supplies for our plantations and the merchandise which forms the object of every species of traffic. The