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Affairs in Mississippi--the negro Retaliation Question.

A letter in the Atlanta (Ga.) Appeal dated at Morion, Miss., August 16th, gives the following interesting account of the recent successful fight made by Col. Logan near Port Hudson. The writer says:

‘ It was chiefly an artillery and cavalry action, lasting about two hours, between eight hundred men on each side, commanded respectively by Colonel Logan and General Andrews. Logan, it is true, dismounted some of his men, but a cavalryman dismounted is still a cavalryman. If the enemy were not surprised, Logan charged on them with such impetuosity as to give the affair all the character of a surprise to the blue coats. The hottest of the action occurred in the immediate vicinity of that literary institution, Centenary College, whose classic walls bear the marks of grape, shrapnel, and Minnie balls. Around this building the enemy rallied, and it is said the negroes in arms with the enemy fought for awhile with spirit, concealing themselves behind the projections of the college buildings; but once, broken, fled in dismay, followed by Logan's fierce dragoons.

Fifty negroes — mostly slaves stolen from neighboring plantations — among whom were ten recognized as the property of Judge McGhehee, were captured after the action. The disposition of these insurrectionary slaves, found with arms in their hands in actual rebellion against their masters, by which overt acts, according to the laws, of the State, they have forfeited their lives, is the subject of much outside conjecture and speculation. --But it is said, with what degree of veracity I am unable to decide, that Col. Logan has taken the entire responsibility, and that the negroes aforesaid were shot soon after the engagement, at a little place called Centreville, twenty miles from Jackson, Louisiana. It is said, also, that prior to the execution, Gen. Andrews, learning the intended fate of the slaves, sent a communication under flag of truce from Port Hudson, warning Col. Logan that if he executed the negroes he would immediately retaliate, as he had the material in his possession. (?) If this should prove true, the Pandora box of this war is now opened in earnest, and the skull and cross-bones will become the insignia of the Southern battle flag.

By the way, I saw in the possession of one of our officers yesterday, the gilt of one of Mississippi's fairest daughters, a black silk flag, with a human skull and cross-bones, executed with the skill of a painter and an anatomist, which was fearfully eloquent of our derater resort. When the ladies of our country thus, like James Fitz James, defy and dare all and everything rather than submit, where is the man who will hesitate?

This afternoon's train brought quite a crowd of notables to Morton, his Excellency Gov. J. J. Pettus, now restored to perfect health, among the number. The Governor will doubtless visit Jackson before his return. As Superintendent of the conscript bureau No. 2, Gen. Pillow is doing the State most efficient service, and the time will come when his services therein will be deemed by the whole country the salvation of the Confederate cause.

Major General Lee, recently elevated to the dignity of the yellow sash, will soon enter upon his duties as chief cavalry commander of this whole department. He is the same Lee whose name frequently and honorably appears in the accounts of the siege of Vicksburg.

I saw some gentlemen from the Northern counties of this State to day. They report confidence and cheerfulness returning to their old channels among the people; and that the granaries are teeming with the garnered harvest, the most abundant ever collected in the State.

The health of the country up there is excellent. Apropos of disease, it is now said that the malady which is carrying off so many of Grant's men at Vicksburg is our old acquaintance yellow jack. No wonder the Hessians fall before the stern behests of this our Southern ally. The Yankees will find the optima spolia of Vicksburg not unmixed with the rich prize of death.

Corinth has recently been reinforced by infantry and light artillery. Grienson has pompously gone there to command the cavalry forces, and information has been received that preparations are being made for a raid upon an extensive scale. A commander with ordinary ability, permission to act at discretion, and a proper spirit, could, with such soldiers as there are in the commands of Bateau, Inge, Boyle, Ham, &c., and the well-managed artillery of Owens and Barksdale, ambuscade any such force of marauders, separate them, and whip them by detail.--The material is here — have we the leader?

It is a matter worthy the attention of Gen. Johnston. Vast supplies for his army depend upon the protection of North Mississippi, and its protection merely demands an able and energetic cavalry officer.

The distributing post-office at Jackson, Miss, having been discontinued, letters to persons in Gen. Johnston's army will save several days by being addressed to headquarters at Morton, Miss.

It is rumored that the Federals are again to make another raid through Mississippi.--We hope our people in that section will be ready for them.

The capital of Mississippi has been removed to Macon, Noxubee county.

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