Diary of Gideon Welles.

January 12, Tuesday. Only three of us at the Cabinet-meeting, and no special business matters were brought forward. I submitted to the President a dispatch from Commander Watson Smith at Pensacola relative to the disturbed condition of the people at Warrington. The port is blockaded, and the Rebels cut off from all shore supplies. In the mean time the Treasury agent has cut off the little communication that had been previously maintained by a few small dealers. The President requested me to consult with Chase, and any conclusion that we should come to he would affirm. Some little conversation followed as to the opening of additional ports. I remarked to the President that in my opinion it would be well to take some decisive and more general ground indicating progress towards peace. New Orleans being an open port, I asked, why might not the whole trans-Mississippi country above that place be thrown open to commerce? I told him my own convictions — and I had given the subject reflection — were favorable to the measure, and against the farther blockade of Red River and the country above that river on the west bank of the Mississippi. The President said the subject was worth considering and we must take it up.