The loss of General Lyon, and the reverses to the national army, afforded cause for great exultation to the secessionists of St. Louis and its vicinity, and their demonstrations of hostility became so marked that General Fremont, on the 14th of August, was compelled to resort to the extreme measure of declaring martial law in that city. This had the effect of restraining the rebel sympathizers in immediate proximity with the headquarters of the Commander, but was not regarded in the State at large. Under these circumstances General Fremont followed this proclamation with another on the 30th of August, establishing martial law in the State, and fixing the lines of the army of occupation as extending from Leavenworth by way of the posts of Jefferson City, Rolla and Ironton, to Cape Girardeau, on the Mississippi river. All persons taken with arms in their hands were to be tried by courts-martial, and if found guilty, shot. The property of persons taking up arms against the United States was declared confiscated to public use, “and their slaves, if any they have, are hereby declared free men.” This proclamation produced a profound excitement throughout the country, and was received by the people with varied emotions—enthusiastically applauded by some, and bitterly condemned by others. The President, on the 2d of September, addressed a letter to General Fremont, recommending him to modify his proclamation. General Fremont desired the President to make an order for the modification in his own name, a request with which the Chief Magistrate complied, and under date of September 11th, communicated to General Fremont, that the proclamation in question should be made to conform to the act of Congress of August 6th, which confiscated only property _used_ in rebellion; and referred the question regarding slaves to the determination of the courts, or to subsequent legislation. While in St. Louis, General Fremont was actively engaged in the organization of his forces, and making preparations for his approaching campaign. To protect the city he had extensive fortifications constructed. He also projected and ordered the building of the gunboats, which have since rendered such signal service. The necessity of massing a large army near Washington, after the defeat at Bull Run, compelled the withdrawal of many regiments which had been assigned to the Missouri Department. It was not until the 27th of September that Fremont was prepared to enter upon an offensive campaign. Accordingly on that day he left St. Louis, and with fifteen steamers and fifteen thousand men, sailed up the Missouri to Jefferson City. Here he halted several days to collect additional material necessary for his march into the interior.