My Dear Sir: I am much indebted for your note by Dr. H----. I arrived at home on this day week, and the next day went to Raleigh to have an interview with the Governor on the subject-matter referred to in your letter. The result was a convocation of the Council of State to assemble to-morrow. The Legislature of Virginia has taken a recess until the twenty-ninth instant, and I think it very important that that of North-Carolina shall be in session as early thereafter as possible. The war is now nearly reduced to a contest between these two States and the United States. The military situation is by no means favorable, and I perceive no solution of our difficulties except through the action of the States. The public men in the service of the Confederacy are so trammeled by the parts they have borne in past events, and their apprehensions as to a consistent record, that the government does not answer the present necessities of the country. I wish, if possible, to see you in the course of this week for a full conference on these important topics. The Governor is, I think, reasonable, but was much surprised by some of the facts I communicated to him. I do not know the disposition of the Council. If the Legislature shall be convened, I will attend their session, and if desired, will address them in private meeting. Much pertaining to the present position of affairs can not with propriety be communicated to the public. I received last night a telegram from my son James, informing me that his brothers John and Robert were both wounded--the former in both legs, the latter in the left, in an attack by General Lee on the left of Grant's line yesterday morning. I am expecting another message to-night from General Ransom, which may occasion me to go to Petersburg to attend to them. Lee was successful in surprising the enemy and driving him from three lines of intrenchments and taking five hundred prisoners; but by a concentrated fire of the artillery of the foe, was compelled to retire. James says he was unhurt. I am also under a great necessity to go to the Catawba, but with a large force of _reserve artillery_ all around us, and some apprehensions of the advance of Sherman, I know not which way to turn. I had a conversation with Governor Morehead at Greensboro, and believe he realizes the situation. Very sincerely yours, W.A. Graham.