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-CAPT. FRY, of Company B, Twentieth reg- the fortifications. In case of an attack by the iment, started out from Warsaw, Ky., with a Yankees, it will take about two hours to get file of men for Eagle Creek, about thirteen miles the main strength of the army across Bull Run. from the village, having been ordered to arrest Information of an approach would be given at Capt. Washington R. Sanders, and break up a least two hours before an enemy could come company of secessionists, who rendezvoused at up, and in that time we could be well prepared his house. When they reached the house of Mr. to resist any force that can be brought up. Sanders he was not to be found. Upon search- That is about the situation of affairs for the ing the premises a six-pound cannon was found winter, and it remains to be seen whether our buried, together with six kegs of gunpowder, a men are to have an opportunity of a brush with quantity of rifles, bowie-knives, pistols, swords, the Yankees, or whether they will be allowed and percussion caps. The arms, and other to enjoy their new houses in quietness. When materials, were taken to Warsaw.-Louisville I say all are ready for an attack, I express but Journal.

-ALFRED ELY, United States Representative from the Rochester district of New York, who was captured by a South Carolina company of infantry at the battle of Bull Run, arrived at Washington, D. C., having been released in exchange for C. J. Faulkner, former U. S. Minister to France.-(Doc. 239.)

feebly the feeling which pervades the army.

Yesterday a Marylander came through our lines, having left Washington the day previous. He brought some noticeable information as to the disposition of the Yankee troops.

December 28.-The brig Empire, Crosby, sailed to-day from Fortress Monroe, for Port Royal, to open trade. She took out a cargo of -A CORRESPONDENT of the Richmond Ex- fresh provisions, &c.; also a balloon and chemiaminer, in a letter dated this day, gives the fol-cals, and an apparatus for inflating it, consigned lowing account of affairs at the rebel camp in to General Sherman. The balloon is under the the vicinity of Manassas, Va. :

direction of Professor Starkweather, and the
Æronautic Department.-The steam frigate
Brooklyn arrived at Fortress Monroe, from the
Philadelphia Navy Yard, this afternoon.-N.

-WRITS of attachment were filed in the

Louisville (Ky.) Chancǝry Court, under the law subjecting to such process the property of rebels who remain in the so-called Southern Confederacy thirty days after its passage, against Gen. Buckner, ex-Minister Preston, and Edward Crutchfield. Their property amounted to twenty thousand dollars each. Writs were also issued against several other parties for smaller amounts.-Philadelphia Press, Dec. 31.

To-day our whole army is engaged in building log-houses for winter quarters, or in moving to sites already selected. Several brigades will remain where they now are, near the fortifica- | Y. Herald, Dec. 31. tions in Centreville, and the remainder will fall back a mile or two upon Bull Run. General Kirby Smith's brigade is at Camp Wigfall, to the right of the Orange and Alexandria road, near the Run. Near by the whole of Van Dorn's division are making themselves comfortable in their little cottages, which rise rapidly day by day under the diligent hands of the soldiers. A few brigades are scattered down toward the Occoquan, where wood and water are plenty, the furthest being by Davis's Ford. The artillery, with the exception of Walton's battalion, has already been located between Cub Run and Stone Bridge. The cavalry has fallen back a little, and they are now building stables and houses near Centreville.

-GENERAL PRENTISS, with four hundred and fifty troops, encountered and dispersed a body of rebels nine hundred strong, under Colonel Dorsey, at Mount Zion, Boone County, Mo., killing and wounding one hundred and fifty of them, and capturing thirty-five prisoners, ninety-five horses, and one hundred and five guns. The National loss was three killed and eleven wounded.-(Doc. 240.)

General Stuart will remain in the advance. It is probable that General Johnston will occupy the Lewis House, on the battle field, and General Beauregard Wier's, his old head-quarters. Longstreet's division will occupy the advanced -LAST night the Thirty-fifth Ohio, Colonel position, and will remain where it is at pres- Vandeveer, made a silent, cautious march to ent. The artillerists, detailed to man the the Salt Works on Fishing Creek, Ky, with the guns in the batteries, will also remain by full expectation of capturing a regiment of

a

secesh cavalry, who were guarding the works | ty, so as to blockade the canal, through which while some of their men were manufacturing the Yankees receive large quantities of coal and salt. But when they arrived there the work-produce. All these efforts have proved abormen and cavalry had gone to their camp. So tive, even to that recently made by the farthey made a charge on the Salt Works, break-famed "stone-wall brigade," if there be any ing the kettles, disabling the pumps, and spread- truth in the current reports of the last few ing havoc among the utensils generally; after days. From those we hear that the boats are which they marched back to camp, near Somer- still running on the canal from above Dam No. set.-Louisville Journal, Jan. 4, 1862. 5. This is not a solid structure of stone, as is stated by the Richmond papers. The dam has been materially damaged; but from all we can learn, until there is a freshet sufficient to carry away the "pile sheeting," it will act as a feeder to the canal. We make these statements because we have been disgusted at the lies which the dam exploits have occasioned. In imitation of Yankee exaggeration by Southern writers, the false report found its way into the papers that General Jackson had crossed the river, run off the Unionists, and captured several pieces of cannon. It is true that the fright of the Yankees across the Potomac shows that they confidently expected a visit from Jackson. They were in the greatest excitement at Williamsport and Hagerstown. Many left the latter place, and at the former they had made every preparation to destroy their magazine and other property. One of their correspondents left for the camp of General Banks, and afterward wrote that he had seen fifty of General Jackson's wagons unloading boats, preparatory to crossing the river.

-EARLY this morning two squadrons of Col. Jackson's regiment, under command of Major Murray, left the camp near Calhoun, on scouting expedition across Green River, Ky. When they arrived at South Carrollton, the squadrons separated, and the first returned toward Calhoun by way of Sacramento, at which place they were surprised by seven hundred rebels, under command of Colonel Forrest. The troops were fired upon by the rebels before they were aware of their presence, and at first believed they were attacked by Major Megowan, of Col. Jackson's cavalry, through mistake. The officers, though the ranks were broken, rallied the troops as soon as they discovered the true state of affairs, and for half an hour officers and men, without exception, displayed the most heroic valor and determination in a hand-to-hand engagement of the bloodiest character, and only retreated when their ammunition gave out. The National loss consisted of Capt. Albert G. Bacon, who was fired upon through a window of a house to which his force had been driven, and thus mortally wounded; Lieutenant R. H. King, of Frankfort, was slightly wounded, and seven or eight privates were wounded more or less severely. The rebels stated their loss at thirty when they reached Greenesville. Among the rebels killed was Lieut.-Col. Meriwether, of Hopkinsville. The rebels left Capt. Bacon in the woods in a dying condition, having stripped him of his watch and rifled his pockets.*(Doc. 241.)

-THE diplomatic correspondence between the governments of France and England on the one hand, and that of the United States on the other, concerning the question of international law involved in the seizure of Messrs. Mason and Slidell, was made public. The first document is a note from Mr. Seward to Mr. Adams, in which the case is briefly mentioned, and in which Mr. Seward says that the action of Capt. Wilkes was without any instructions from the Government, and he trusted that the British

-THE Martinsburgh (Va.) Republican, of this Government would consider the subject in a date, has the following:

We have heard of several attempts to destroy the dams along the Potomac, in Berkeley Coun

The Louisville Courier published the following account of this affair:

HOPKINSVILLE, Dec. 29. Yesterday (Saturday) evening a detachment of Colonel Forrest's cavalry met the enemy at Sacramento, nine miles from Rumsey, on Green River, and defeated them, after a sharp engagement of half an hour. The Yankees left ten

friendly temper. Then follows a note from Earl Russell to Lord Lyons, dated November 30, reciting the English version of the casedead on the field, and we took eighteen prisoners, most of them wounded. They had Captain Bacon and one lieutenant killed, and Captain Davis and one lieutenant wounded and our prisoners-their total loss being not less than fifty. Our loss is Captain Meriwether and one privato killed, and one private wounded. The enemy fled in confusion toward Rumsey.

themselves near the landing until the steamer City of Alton came along, intending to capture the boat; but just as she was approaching the landing a lady, Mrs. Eversole, wife of one of the citizens of the place, ran down to the landing, and in spite of the repeated threats of Thompson's men to shoot her if she did not desist, shouted several times to the pilot not to land as Jeff. Thompson's men were waiting to shoot them. The boat had nearly touched the shore before the pilot comprehended what she meant. He then rung the bell to back the

sprang from their ambush and fired several
volleys at the boat, completely riddling the
sides of the cabin and pilot-house, but fortu-
nately without injuring any one.
The escape
of the passengers was almost miraculous, as
there was a large number on board, and the
balls pierced the cabin in every direction. The

declaring that the act of Captain Wilkes was | taining all they desired here, they concealed an affront to the British flag, and a violation of international law; and announcing that the "liberation of the four gentlemen named, and their delivery to your lordship," together with a suitable apology for the aggression, alone could satisfy the British nation. To this Mr. Seward responds in a paper, addressed to Lord Lyons, under date of the 26th inst., in which he analyzes at great length the principles of public law involved in the case, and arrives at the conclusion that the Government of the United States would be wrong in refusing to comply with the British demand, so far as re-boat. The robbers, finding themselves foiled, lates to the disposition that shall be made of the persons captured. He closes by saying that the "four persons in question will be cheerfully liberated; and your Lordship will please indicate a time and place for receiving them." No "apology," however, is offered, because no offence was intended. To this Lord Lyons responds by announcing that he will forward | boat backed down the river about two miles, the communication to Her Majesty's Government, and will immediately make arrangements to place the "four gentlemen" again "under the protection of the British flag." Beside these documents on the Trent case, there is a despatch from M. Thouvenel, the French Minister for Foreign Affairs, to M. Mercier, the "Minister of the Emperor at Washington," in which Thouvenel pronounces the conduct of the American cruiser unjustifiable, but hopes for a pacific solution of the difficulty. To this Mr. Seward responds in a note to M. Mercier, in which he corrects an error of the Minister of Foreign Affairs, refers him to his corre-cinnati Gazette, January 4, 1862. spondence with the British Government, and exchanges assurances of friendship.

The settlement of the Trent difficulty affords much gratification, and there is a general expressed acquiescence in the course of the Government, while the despatches of Secretary Seward are viewed in the light of the highest statesmanlike ability.

December 29.-This afternoon a party of Jeff. Thompson's men entered the little town of Commerce, Mo., about forty miles from Cairo, Ill.-a place long noted for the steady and unswerving loyalty of its people-and after tearing down and tramping upon a Union flag which was flying there, they proceeded to plunder the different stores in the town of such articles as suited their fancy. After ob

to the head of Max's Island, where Captain Barnes obtained some arms and lumber to construct breast-works to shield the cabin and pilot-house. The boat then resumed her course, and passed the town without further molestation, the marauders having in the mean time retreated. Had it not been for the timely warning which the pilot received, they would undoubtedly have succeeded in capturing the boat with her valuable stores, and making prisoners of the passengers, including Commander Porter, of the gunboat Essex, and several army officers who were on board.-Cin

--TWENTY-FOUR hundred and sixty cavalry, under Colonel Carr, with fifteen days' rations, left Rolla, Mo., destined, it was supposed, for Springfield, Mo., by a circuitous route.

-As the steamboat Express, which runs between Old Point and Newport News, Va., was leaving the latter place this morning, a rebel

tugboat was seen off Sewell's Point. She carried a Commodore's blue pennant, which was mistaken at first for a flag of truce, but on the Express arriving within range she fired a shot across her bows, followed by several shells. The greatest consternation prevailed for a time on board the Express, which is an unarmed steamer, and the schooner Sherwood, employed to bring water from Newport News, which was at the time in tow, was cut adrift. The Sher

wood was immediately deserted by her crew, I coln was only holding court at the Spotswood, consisting of four men, who escaped by the small in her celebrated green silk and Illinois witchboat to Newport News, and drifting down with ery, we have no doubt that there are creatures the tide, was taken possession of by the rebel in Richmond who would bend their necks for tug and towed to Craney Island. Her captain the social honor of licking a little dust in her stuck to her, and was taken prisoner. The presence." tugboat subsequently made her appearance for the second time, but the Express had crowded all steam on, and reported the circumstance to the flagship. After a long delay the gunboats started, and steaming toward the scene, threw a few shells into Sewell's Point and Pig Point batteries, without producing any effect. But for the delay in the gunboats getting to the spot, the rebels might have been intercepted, and the schooner saved. The schooner had

been lined with zinc, and fitted out with a valuable force pump for a water-boat.—(Doc. 242.)

-A NOTE from the rebel General Huger to General Wool announced that he was ready to send two hundred and forty prisoners of war down the James River from Richmond by a flag | of truce whenever they would be received.Philadelphia Bulletin, December 30.

December 30.-The Richmond Examiner of this date has the following on "Yankee worship": "We had thought that we were incapable of being taken by surprise by any new act of indulgence or deference toward Yankees by a government that entreats them here to enjoy the fats of offices and contracts, or. by a public which has not forgotten its old standard of "society," as measured in the amount of court and dirty toadyism they might be permitted to pay to Northern notabilities. But we were mistaken. We are intensely and altogether surprised at the latest event of Yankee impudence and Richmond servility. We are surprised to learn that a certain Yankee, Dr. King, from Newport, Rhode Island, has been permitted to come here to see a sick son, a prisoner. We are surprised to learn that the doctor, his lady, and son, are occupying very select rooms at the Arlington House. We are surprised to learn that these persons are called upon by the would-be elite (a very feeble "would-be," though, we suppose) of Richmond, and that women of Virginia, making such social pretence, have been flocking to see the Yankee family circle and to perform daily the debasing work of paying the greatest civilities to the enemies of our country and State. If Mrs. Lin

-THE third battalion of the First Massachusetts Cavalry, under Major John H. Edson, an old army officer, numbering four hundred and twenty horses and men, arrived at New York this morning.

-THE Confederate Secretary of the Treasury, in his correspondence with the Tennessee delegation in Congress, stated the inability of the Confederate Government to settle the sums expended by Tennessee in behalf of the war.

-IN the rebel Congress at Richmond, Va., Messrs. Thomas and Burnett, of Kentucky, appeared, qualified, and took their seats.-General Stuart's report of the battle of Dranesville was ordered to be printed.-Richmond Dispatch, Dec. 31.

—A CUTTER, under command of Acting-Master Alick Allen, and a gig, under command of Acting-Master Henry L. Sturges, were sent from the U. S. steamer Mount Vernon, to-night, to destroy a lightship used by the rebels off Wilmington, N. C. The expedition found the vessel deserted, though pierced with guns, and almost prepared for harbor defence. She was burnt to the water's edge by the National troops, who escaped the fire opened on them by a rebel fort.-(Doc. 243.)

December 31.--The Canadian press comments upon the release of Messrs. Mason and Slidell in the same spirit which has prompted its various representations hitherto in their treatment of the rebellion. The Leader uses the most abusive language at its command. It pronounces the surrender one of the "greatest collapses since the beginning of time," and has much to say of the "humiliation" of the National Government. The Globe talks much more moderately, and heartily congratulates its readers on the result; and the Montreal Gazette speaks of it as a "bitter, bitter pill for the fireeaters to cram down their noisy throats."—N. Y. Times, December 31.

-IN the United States Senate a communication was received from the Secretary of War, to-day, stating that it is incompatible with the public interest to furnish the correspondence

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-At Washington, D. C., Daniel S. Dickinson presented a costly stand of State colors to the Dickinson Guard, Eighty-ninth New York Volunteers. R. H. Duell received them in behalf of the regiment, delivering a felicitous address. Vice-President Hamlin, Gen. Casey and Staff, W. S. Doane, Augustus Schell, and others, were present.

—Ar seven o'clock this morning an expedition, consisting of three U. S. gunboats, with an additional force of marines, left Ship Island, in the Gulf of Mexico, under command of Commander Melancthon Smith, U. S. N., for the city of Biloxi, Mississippi. No resistance being met with, Commander Smith landed at the wharf, under a flag of truce, and held a short conference with the Mayor of the city, who, after an hour's consultation with some prominent citizens, surrendered the town and the

battery commanding the harbor. The guns of

the battery were dismounted and carried to the boats by U. S. sailors-the inhabitants witnessing the proceedings. While this was transpiring on shore, a schooner was discovered working her way back of Deer Island into Biloxi Bay. A boat was instantly manned and sent in pursuit. After rowing about nine miles, the vessel was overtaken and forced to surrendershe was on her way to New Orleans with thirty thousand feet of hard pine flooring boards as a cargo. It not being Commander Smith's design to hold Biloxi, the expedition returned this evening to Ship Island with their prize in tow.-(Doc. 245.)

-THE Richmond Examiner of to-day, publislres the following on the Confederate Tax Bill: In the Tax bill enacted by the Confederate States Congress there is a clause placing a tax upon "all interest-bearing bonds." We learn that, according to the construction of the

law given by Secretary Memminger, the taxpayer will not be permitted to deduct his liabilities from the amount of money due him, although he may be, in fact, in arrears.

Thus, if his liabilities amount to one hundred thousand dollars, and he holds "interest-bearing bonds" to the amount of fifty thousand dollars, he has to pay a tax upon the fifty thousand dollars, when, in reality, he is worth nothing. Again: A has purchased a farm at forty thousand dollars, and sold his own for thirty thousand dollars. He is in possession of the forty thousand dollar farm, and has to pay a land tax thereon; at the same time he holds the bonds, "interest-bearing," for the thirty thousand dollar farm, because the "stay law” prevents their execution. He is, therefore, required to pay a tax upon the thirty thousand dollars, and also upon the forty thousand dollar farm; thus paying a tax upon seventy thousand dollars, when in reality he holds only forty thousand dollars' worth of property.

His bonds are fastened upon him, and he cannot collect them. Again, B holds A's bonds for the forty thousand dollars farm; B must, therefore, pay a tax upon these bonds. Therefore, the land purchased by A from B is paying a double tax; so is the land sold by A to C; for A pays a tax on C's bonds for thirty thousand dollars, and C pays on the land in kind. Such a law, or the construction of it, is certainly wanting in uniformity and justice.

-AT Berlin, above the Point of Rocks, in Maryland, an affair occurred which illustrates the necessity of extreme caution in dealing with the rebels. Two men approached the river on the Virginia side with a flag of truce and begged to be brought over, stating they were refugees. Captain Pardee, of Company A, Twenty-eighth Pennsylvania, gave orders to so dispose of his force as to cover a boat to bring them over, in the mean time entertaining those on the opposite side by conversation to distract their attention. When all was ready he despatched a sergeant and two men in a boat to bring them off. As the boat approached the shore a company of dismounted rebel cavalry showed themselves on the hill above and fired a volley upon the boat. The crew threw themselves overboard toward the Maryland shore, and thus protected pulled the boat across. In the mean time Pardee's concealed riflemen opened on the cavalry with such effect as to

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