The ostensible leaders here are not the leaders of the Democratic party; but I mention a few facts to show how confident the leading men are of the power of the order. At the suggestion of Governor Morton I invited the State officials and leading men of both parties to a conference as to public affairs. They agree to address the Democracy in a manner that shall check this discontent. It remains to be seen whether it will be done.

Honorable T. A. Hendricks, U. S. Senator, assured me "that the majority of the people of Indiana were desperate under the despotism of the Government and no one could tell how long it would be endured. "

Doctor Athon, Secretary of State, says that "in visiting Southern Indiana every man in many counties is armed to the teeth and asking 'How long is this to endure?'''

The people have been grossly and wickedly deceived by this order until they believe the most infamous lies as to the Government and its designs. Plans have been carefully discussed in the lodges respecting seizure of the arsenal, the railroads and the telegraph; and especially have several lodges made it obligatory upon the members to protect deserters and resist the conscription. They are promised arms from Kentucky and really believe they are to have them, absurd as it may seem.

To meet these dangerous tendencies I have followed up every resistance to arrests by use of force and perfecting the arrest without delay. Seven of the Morgan County men were convicted. Lawyers of this city refused to testify before the grand jury on the pleas that it would criminate themselves and subject them to indictment for treason. I shall use the accumulated evidence before the grand jury that meets to-day with the view to indict these lawyers and a considerable number of leaders from various counties, hoping for a good effect from the same.

The fact is that the order has grown faster than the party leaders wished and has assumed a shape and bitterness that may not be controlled if it breaks forth even by them; but I know that these leaders feel that they have a power at their backs which they hold as invincible. I am convinced that the tension cannot long last; reaction or violence is certain. While avoiding all needless collision my aim has been by firmness but discretion to aim at such a popular reaction without an outbreak and thus let the people down to their old quietude. The people will thus fall back soon or precipitate an issue in some locality. If it be not simultaneous and general it can and will be handled and handled severely. But if the difficulties here should be complicated by a successful inroad upon Kentucky as anticipated by Generals Rosecrans, Wright and Boyle there would be great danger. The only perfect assurance in such case would be in the support of a division from the East. The reaction in the New York Democratic politicians has not reached the West and the popular daring of Vallandigham makes him so mischievous that either he or Morgan could raise an army of 20,000 traitors in Indiana. If this Vallandigham counsels resistance or defiance to any U. S. statute in Indiana I wish authority to arrest him.

In furnishing the foregoing statement at the request of Governor Morton, whose good judgment has been my chief auxiliary in matters of a civil order, I will also refer to him for fuller information as to the condition of the State. I will respectfully add a word of my personal views. I believe that no city paper should use the mails or cars or circulate if