Afiairs In The South

Baltimore, Jan. 4. One of the release-d Union prisoners has un editorial from a Kiehmond paper which he cut and eor.cealed in liis boot. It, gives an awiul picture of tbe condilion ol tbe rebel army of llio Potoniac, saying the entiro army is utterly demoralized. Regirnontal drüls have comed entirely, tho men sponding their time with cards. Great rewardg are oiïered for substitutos; soine as high as 1500. The Editor urges the Governmeat to do aoinuthiug to retnedj the evil, as ssuch a demoralized oöoditiOQ of the troops cannot go on. Thousands who would enlist are deterred by the diéoouraging condibion of tho army. A New Orleaus dispateh of the 29th uit., says that the powder mili opposiio the city exploded last night. - Tho guacd had inspected the premises only half an hour before. It is altribated to an noendiary, The prisoners n;iy their olotbing and boots were looked upon with longing eyes bv the rebele - espeoially tbeir boots j tnany were oQ'ered as high as $25 a pair tor thera. Coffeo is held in Kiuhmond at SI 50 per lb.