The Daily Dispatch: August 26, 1863., [Electronic resource]

From Mississippi.

The army here is being put in excellent condition, and everything that can possibly be done for the comfort of the men has been done. The troops have been paid off for the first time, with some of them, for six months, and, thanks to the untiring energy of Drs. Yandall and Scott, Medical Directors, the sick are well cared for, and the health of this army is better than any other. Only six sick were sent off yesterday, and every train from the East brings large numbers of men returning from the hospitals.

Since writing the above I have seen one of Gen. Kirby Smith's staff, who has just arrived from that side of the river. He crossed the river at Rodney on last Friday, and whilst he was there four transports heavily laden with troops passed up, and the Continental loaded with cavalry passed down.

The Yankees are playing a heavy game, and the troops that have gone down are merely for the purpose of replacing the troops of Banks's army who have been mustered out on the expiration of their term of enlistment. He says there is no doubt but Grant is reinforcing Rosecrans or Meade.--He states that affairs are in a flourishing condition in the Trans Mississippi department. Price is at Pine Bluff, Taylor at Berwick's Bay, and Kirby Smith at Shreveport. Dick Taylor sunk two transports laden with troops last Wednesday, near Donaldsonville, and has since been reinforced by five thousand Texans. Magruder's headquarters are at Houston, and the Governor of Texas has taken the field at the head of ten thousand State troops. Kirby Smith has called upon the Governors of the different States in his department to meet him at Marshall, Texas, on the 15th, to take measures to repel raids of the enemy.

Kirby Smith has received official communications from Gen. Forey, who proposes to occupy and garrison Tampico and Matamoras.

The pickets of the enemy have all been withdrawn from this side of the Big Black, and once more have the sorely tried citizens residing in that vicinity been relieved from their ruthless enemies, and as our cavalry are watching them very closely the citizens will be protected from those annoying raids which have almost devastated the country lying near the Mississippi river.

I omitted in yesterday's letter to state that Dick Taylor's cavalry had "gobbled up" thirty-five of the Yankees who were planting by contract for the Lincoln Government, and had pressed the negroes in West Louisiana to work the crops. They have been sent to Texas to be held as hostages for some of the planters who have been carried off by the Yankees. It is to be regretted that old Montague, who has made himself so odious in this connection, escaped, together with his sons, who deserted from the army last fall.

The correspondent of the Atlanta Appeal, writing from Brandon on the 10th, says:

‘ A flag of truce has returned from Vicksburg, bringing no special news, beyond very great mortality among the negroes. Seven hundred of them had died from the time of the occupation of the place by the Yankees to the time of the departure of the flag. The deaths are mostly among women and children. The men are sent north to Island No.10, to be drilled, and the women and children are left wholly unprotected. Their situation is most deplorable.

Gen. Sherman is as crazy as ever. He sent notice by the flag that it was expected that the Confederate cavalry would not come west of Pearl river. That section may be regarded as neutral ground. The people must be allowed to make their own election between the rebellion and the Union. He is very much exasperated at incursions beyond Big Black, by which his men, capturing watermelons, are picked up. He threatens to strike where Gen. Jackson least expects it, unless he keeps his troopers east of Pearl river. He will burn every house on his "neutral"ground. He says, crazy as this message may seem, it will be acted upon, and the people west of here know it, and in terror of it they dread the approach of our cavalry. Twice destroyed they dread a renewal of the conflict. But it must come. If the vandals burn — and they will — we must make the best of it, take care of the refugees, and have patience with those who, failing in the means of fight, take rations from the Yankees.

I am tolerably well advised that none of Grant's troops have gone north of Memphis. I have no means of getting an approximation to his force. Banks's force at the time of the surrender of Port Hudson was fifty regiments, averaging three hundred men each. Twenty-eight of these regiments claim that their term of enlistment has expired.--Those regiments were full when they came to New Orleans--one thousand and forty each--fifty-two thousand men. Banks has lost thirty-seven thousand. God only knows how many have been lost opening the Mississippi from Cairo down — probably five times as many.

’ The Mobile Advertiser has the following telegram, dated Okolona, Miss., Aug. 20th:

‘ A gentleman who left Grenada Monday arrived this morning bringing important intelligence from the Central road.

Two large raids, one from Yazoo City, the other from Memphis, were sent out for the purpose of destroying the immense quantity of railroad stock accumulated at Grenada.--Chalmers engaged the Memphis column near Panola, and was defeated. He himself is missing, and reported captured. The Yazoo column reached Grenada, and destroyed forty locomotives and a large number of passenger and freight cars, the accumulated stock of the Mississippi Central and New Orleans and Jackson roads, sent there for safety.

The raid from Corinth reached Water Valley upon the same expedition about the same time the others reached Grenada. The damage inflicted is incalculable and irreparable. The force sent from here and that under Whitfield had not encountered the enemy. It is scarcely probable that they will escape without an engagement.

These facts are derived in the main from Col. Forttaine, an officer of Chalmers's command.

All the raids appear to have been started with the one view of destroying the railroad stock. It is not probable that anything more will be attempted by this expedition.

’