will, if impressed, be retaken by the owners as soon as crossed, and also that,it being universally known as Confederate cotton, it will be captured on the high seas by the enemy. These considerations may prevent the parties from closing with me. I shall do my best to meet the views of Lieutenant-General Smith,and will communicate further with you on the subject.

Major Hart has no cotton here,nor has he any coming that I am apprised of. He writes to Mr. Gallagher, his agent here, that he does not agree to your suggestions to turn over his cotton for the present necessities of the Government and to replace it with cotton in the interior. However, I have made the proposition and directed by the major-general commanding, and if the parties, or any of them, accept the proposition, I will give them the proper papers, addressed to him.

I have to-day forwarded dispatches for the French admiral and French minister at Mexico, requesting the return of the vessel loaded with arms, captured off the mouth of the river, together with all the necessary papers, to prove that the arms were intended for the Confederacy; were forwarded by Captain Arthur Hood, Royal Navy, who, I am informed by Mr. Maloney, takes a warm interest in this affair, and will do all he can to place the matter right before the admiral.

The arrival of the schooner unannounced and unexpected was the fault of Mr. Ruthven, the agent of Mr. Clements, who did not inform any one of the contents of his letter announcing her speedy arrival, and she was not expected for forty days. There is no doubt but that the Yankees would have captured her, as it is now said that for this reason the French took her. I believe she will be given up, but anticipate great difficulty in getting her cargo safe, as a great deal of notoriety has attached to the transaction, and the consul at Matamoras is wide awake.

The general health of this place has improved. The news to the 3rd from New Orleans is still favorable.

With great respect, your obedient servant,

H. P. BEE,

Brigadier-General.

PROCLAMATION.

JULY 16, 1863.

To the People of Texas:

FELLOW-CITIZENS: Vicksburg has fallen, but our insolent foes have but little cause to rejoice. More than 30,000 of them found bloody graves in the effort to reduce a city defended by less than 25,000 men,and,though the place was surrendered, the army was saved.

Our victorious arms are now desolating Pennsylvania, and 40,000 prisoners attest the triumphant march of General Lee. The North will not long exult over the barren victory on the Mississippi. It has cost the destruction of more than half of their largest and best army,and the demoralization of the remainder. The benefits they expect from the fall of Vicksburg will not be reaped by them. Sharpshooters will line the banks of the Mississippi River,and their deadly volleys will be the only salute to the adventurous foe who may come to force trade over Southern waters.

A temporary success, at immense sacrifice, will admonish our enemies how vain is the task of attempting to subjugate a free, determined, and united people. A spirit of unyielding resistance animates our people from the Atlantic to the Rio Grande,while the armies of the Northern despot, wasted by our valor and the diseases of an unfriendly climate,