Arrest of a Virginian — the Confederate force at Leesburg — Government contracts.
Washington, Sept. 6.
--B. F. Gallagher
, the Paymaster
of the Navy, and a native of Virginia
, has been arrested.
The Government is endeavoring to make contracts for procuring provisions, payable in Treasury notes.
Late advices received here from Montgomery county, Maryland
, state that there are 7,000 Confederate troops at Leesburg
Entrenchments are going on rapidly.
The Confederate pickets line the shore of the river to guard the fords.
The War Department has sent word to hold Fort Hatteras permanently.
Brigadier General Burr
, of California
, has arrived, and will be assigned to a command.