The New York Herald Newspaper, January 12, 1862, Page 1

5 c WHOLE NO. 9254. "NEWS FROM WASHINGTON. Highly important Financial Movements. ' Conference of Bank Officers with Sec- retary Chase and the Congress- ional Finap4e Committees, Se THE PROPOSITIONS OF THE BANKERS, What Congress is Doing Towards "Raising the Sinews of War. Zmportant Revelations Respecting tho Abolition Conspiracy Against the Administration. Proposed Organization of an Irish Divi- sion Under Gen. Shields, kon &., &e. ‘Wasmxaton, Jan, 11, 1862. ‘THE CONVENTION OF BANKERS. Tho Bank Commissioners of the cities of Boston, New York and Philadelphia, organifed this forenoon, electing Mr. Mercer, of Philade!phia, chairman. ‘The idea of going with a proposition directly to the Committee of Ways aud Means of the House of Repre- gontatives, without first consulting with Secretary Chaso, hhas been abandoned, and the Commissioners have de- cided to invite the Secretary of the Treasury, the Com- mittee on Finance of tho Senate, and the Committee of ‘Ways and Means of the House, to meet them. ‘the invi- tation has been given and accepted, and the convention assembled for business. ‘The following persons compose the convention: ‘DELEGATES FROM NEW YORK BANKE, Mr. Coe, American Exchange Bank. Mr. Vermilye, Merchants’ Bank. Mr. Martin, Ocean Bank. Mr. Gallatin, National Bank, DELEGATES FROM PHILAPELIUIA BANKS, Mr. Rodgers. Mr. Mercer. Mr. Fatterson. DELEGATES FROM BOSTON BAXES. Mr. Haven, Merchants’ Bank. ‘Mr. Walley, Revere Bank. * Mr. Bates, Bank of Commerce. ‘TREASURY DEPARTMENT, Salmon P. Chase, Secretary of the Treasury. FINANCE COMMITTEN OF THE SEXAT?, Mr. Simmons, of Rhode Island. Mr. Sherman, of Ohio. Mr. Howe, of Wisconsin. Mr. Pearce, of Maryland. Mr. Brightyof Indiana. ‘Mr. McDougall , of California. OEE COMMITTEE OF WAYS AND MRANBy Mr. Stevens, of Pennsylvania, Mr. Morrill, of Vermont. Mr. Phelps, of Missouri. Mr. Spaulding, of New York. Mr. Corning, of New York. ‘Mr. Horton, of Ohio, Mr. Stratton, of New Jersey. Mr. Hooper, of Massachusetts, Mr. Maynard, of Tennessee. Io the conference of the bank /reyré@mtatives to day ‘with the Secretary of te Trea’ fury atti'fie Finance Com- mittee of the Senate‘asd the /Housy’ Oenmittee of Ways end Means, the bank men f,abmitted @ proposition com” prising the following points:— 1. That in leucf the propordd ‘tusue of one hundred ona fty millions of ‘notes, and making them @ Joga tender, tho goverumont shail issue fifty millions of ‘demand notes, convertible into seven per cent stock, re- ‘desmable inten years, and ondandred and fifty miflions ‘af amall nots, Dearing six pereent interest, and payable © two: years. / 2. That the Sub-Treasuryt«w shall be repealed, and ‘the danke shall be used as @epositaries of all¢he public money ,*xcept that received from customs. 8. That Congress shall pacs a jolut resolution, declaring that iteviil pass a reverad ill providing for theraising of one hundred and twenty-five millions per ann: taxation, kc., in addition to the receipts fram cubtoms.” 4. That the Secretary of the Treasury shall be autho- ized to negotiate further loans, without restrietion.as te terms or rate of intérest, and also to obtain temporary toans by hypothecating stocks in anticipation of alos, ‘The proposition wae received without ¢omment from + either the Eecretary-or the committoes indicating the + opinion entertained, ad another interview is to-be held Monday. The proposition has not apparently mado-a favorable It seense.to be regarded.as a plan to benefit | impression. tho banks instead of the country. It will not, probably, ‘Do substituted for the~well considered plans already ma- tured by the committees of Congsess. The issuefor Circulation Of notes becring interest, and consequently changing in value fram-day to day, is regarded as pecu- Warly objectionable. The whole proposition, it is thought, would depresa instead of elevate tho charac- ter of government securities. Tho Committvee of WRys and Menns havo alreedy ma- tured a bill providing fer raising a revenue of one hun* @red and fifty millions, which, in consection with other \bills already reported, wiil complete tho measuae con- templated in reference to/inancial affaiae, CONDITION OF GENERAL M'CLELLAN. General McCiellan’s health is still rapidly impreving So is to-day entirely convalescent. ALL QUIET ALONG THE LINES. ‘The army telegraph reports all quiet throughoutour of the Potomac to-day. CONSPIRACY OF THE RADICALS AGAINST ADKINISTRASION. A formontation exists én political circles in Washing. ¢on which menaces serious trouble within the next few days. The sum and substance of the agitation te slavery; ‘but the ostensible attacks upon the administration include only side issues. Discontent bas finally crept into portions ‘of the army, particularly among Westorn and Northwest. orn officers and their men, with respect to the inactivity of Gon. MoMelian. This is fostered, by every means, by tho abolition ultras, Senator Wade told tho President, Jately, that he “was within a mil¢ of hel,” and Greoloy, whom Wade jastingly told that he ought to bo again ercated Commander-in-Chief of the United States forces» announced that bis programme would be ‘to telograph for an onward movement every where, from Fort biouroc to tho Mississippi, and from Ship Island to Cape Hatteras;’ that,‘ though te ehould got licked at somo points, we must victorious somewhere.” This is about a typeof the NOVY, egOlistioal, fanatical outory of the abolitionist ex. trenists. They cavil continually, but propose no ‘plan wisor then that of Commander-ih-ebief Greeley, Nevor- gholess, th’y have carried away with them no inconsi- de able nemigr ef members of both houses, who, a short time since, werd Qtnt anid unituseA in thelr Contdence fo both tho /rosideds and General McCielian, tke. stan- | the country at the behest ofe ‘he abolition fuetionsthey. dard sing phraso is, that “unless « decide «onward moroment takes place within twenty days t?,¢ country is ruined.’ ae, ‘Tho recent assault of Thomas, inte House, upon the administration, with respect to the Mason and Slidell af- fair, was part and parcel of the same effort to discredit it in the eyes of the country, The attack on the Navy De- partment by Senator Hale ts to be included in the same category, as is also, to a certain extent, the panic that is being manufactured in relation 0 the Treasury Depart- ment. A popular feoling in the Senate and House of Re- presentatives with regard to finance is in favor of the im- mediate adoption of such a measure as the following:— Treasury notes to the amount of $250,000,000 or $300,- 000,000 (enough to pay the present debt of the government and carry on the war until foreign markets are opened to take our bonds) to be issued in denomina- tions of from five to a thousand dollars, receivable for all dues whatever; in other words, legalized. The said drafis or demand notes to be fundable at the option of holders for twenty years, at six to eight por cent; the ‘Treasury reserving, however, the right of paying them off in fivo years, or within any time when it can liquidate theta to the amount of a million of dollars, This measure to be accompanied by a tax, imposts or excive, abundantly gua- ranteeing somi-annual payment of the half yearly interest of said bonds, This is a plan: which “oes not meet with univergal approbation, but it seems to commend itself to some of the ablest financiers in.the capttal. Some prompt action is indispensable. Without it grave monetary em- barrassments will arise which will seriously complicate the diMculties under which tho country is laboring. Tho endeavors that are being made to disorganize the Cabinet wil! probably fail. Each member is attacked in some way or other, but whatever the demerits of some of thom may be, they manage better than new men would do in their places. Moreover the President is persuaded that his confidence in tho Commander-in-Chief of our ar- mies is not misplaced, and that the patience of tho public willnow be very soon rewarded by such triumphant’ movements as shajl cause past misgivings to be for- gotten. ‘The aspect of public affairs has beon, at no moment, inore menacing and portentous than at the present mo- ment. Partios are so equally divided in the House of Ro- presentatives that conservative members claim a majo- rity of only about fixe votes on perfectly defined ques- tions between themselves and the radicals, while on side issues they are in constant danger of being outyoted. ‘The radicals in the Senate have a majority of at least six votes. Nevertheless, they do not daro to adopt universal emancipation as a key note, but steadily adhere to the policy of undermining the government on more plausible grounds, and in discredifing itia every possible manver before the country. Hence Washington is filled, from day to day, with absurd rumors which, unblushingly and clamorously repeated, are producing the mostmischioy- ous effete, prolonging the inactivity of the army, and disappointing the expectations of those who hat hoped to seo the restoration of the Union accomplished within a very short period, Itcan no longer be disputed that an indefatigable, un. ecru us party, powerful enough intrinsically, bat ren. dered more #0 by a lack of sufficient decision and unity on the part of those who sustain the administration, is absolutely pledged to op- position of any peaceful settlement of the difficulties between the loyal and rebel States which does not involve the entire extinction of slavery. This party profossedly prefers the permanent separation of the republic into two confederectes to yielding an fota of iss pretensions. Moreover, es tis leaders do not beliove that the abolition of slavery is practically feasible, or that it would be permitted by the masses in the North itself, they are socretly working to defeat the objects of the war, and vo provent any future incorporation of the seceding with the free States. They are, both theoreti- eally and practically, aiding and abetting the Southern rebellion, and throwing every concciyable opposition in the way of the progress of our patriotic army, both by muligniig its commenders and impugning the Mdelity of their troops. They do not want for sympathy, itia tobe feared, in the (obinet itself, and the President is sertonsly troubled by the machinations of at least one, and per two, of bis advisers. The illness efGenern] McClellan, mach moro grave #hen has been generally supposed, has afforded a pretext to the abolition faction for directing a large share of 4ucir attacks ageinst him. The “On to Richmewd” ‘ory has been rencwed iu the most insulting shape, and'theCom- manler-in-Chief has actually been accused of sham- ming sickness, for the purpose of preventing an ad- vance ofthe army of the Potomac. The Jéto speech of Roscce Coukiing in the House on the reverse at Ball’s Blof, ‘estensibly directed against Genoral tone, was clearly intended to injure General MoClelian‘bimseif, and mdke him responsible for the disester, aud the Joiut ‘Committee of the Senate and Houne ito ‘investigate the cwar, is said to be engaged in manaifadturing an ez par:® Siatenient for the purpose of overthrowing his hara earned and weil deserved popularity. The plan is to su. persdde him in favor of either Fremont or Senator Ben. Wade, who represent the radéeal-eehtiment, “3{cClel- lan,” novo: theless, remarked @ pereon in very high au- thority ia the government, yesterday, in presence of an Qpproving assembinge of woll informed gentiemen, “has worked himself to the verge of-tho-grave, by adding the daties ofothers in authority to his‘ own, and it is to him alone that these miscreayte who attack him owe their maintenance in the very places at the Capitol from whence they are weaving the-web of intrigue aguingt him.” ‘The military in the District of Columbia and Virginia are profoundly indignant st ‘the outrages and abuse to which they are subjected by radical agitators. Just in proportion to the experiemce of officers, they fully ap- | prove of and endorse General McCiclian’s course. ‘They pronounce emphatically that, if the army were to advance om she Potomac, without ade‘ quate preparation elsewhere, -there would be an drcet- table consolidation of rebeltroops in Virginia, and that,' with their facililics for raiiread communication audérons- portation of forces and munitions, we should certainty be beaten, The lying accounts cf comparative weakuessand disorganization that are promulgated so industriouriy by Southern newspapers, decetve no expericaced army commander here; but, while they will not consent te ruin atatime, The payment of the semi-annual interest of said stock will be guaranteed by an especial tax. It is also probable that a general bankrupt law will also be included among the labors of the next few weeks, though material differences exist respecting the nature of its Provisions. © ‘The friends of the administration think that a grave error of judgment has been committed by Major General Halleck, in supérseding General Sigel by General Curtis, thus causing the resignation of the former. Col. Blair, and others well acquainted with affairs in Missouri, have the highest opinion of Sigel’s ability, and believe that his loss to the army will prove a serious misfortune. REPORTED CONDITION OF THE REBEL FORCES IN ‘VIRGINIA. Arebel desorter came in to-day to Gen, Hancock’s headquarters. He gives an interesting statement of the condition and intentions of the rebel forces. He says they are poorly fed, worse clothed and worse paid; that the discontent of the troops is daily increasing at the continuance of the war, and that it is only through the false representations and threats of tho officers regiments are kept from disbanding. The enemy, he alleges, will not attack us, but base their only hope of success in our advaneing againt them, and that in this expectation they aro patiently keeping in the rear of their Manassas fortifications. . ARREST OF SUSPICIOUS GMARACTERS. From early last evening until about three o’clock this morning the attention of the pickets of the Sixty-third Regiment, Colonel Enright, which was on outpost duty in front of General Sumuer’s division, was attracted by fre- quent whistling and the ringing of bells in the brush in front of them. One of the pickets discovered two men, with a dark lantern, dodging in the woods. He chal. longed them, and failing to receive an answer ho fired. ‘The laatera was immedjately obscured. Licutenant Sullivan, of Company K, Captain Braunagan, with some of his men, instituted a search, but nothing could be found, This morning, about ten o'clock, just-be- fore tho regiment returned trom piglet duty, two men were seen outside our lines under suspicious circum- stances, and were arrested, Their names are Henry C. Brown and George Washington Hutchins. One of them had sixty dollars in gold, with plenty of Southern shin. plasters. They represented that they belonged to Alex- andria, had gone South in Junelast tocollect some money , and had previously made two ineffectual attempts to es. cape. They wero sent to headquarters. THE RETURNED PRISONERS FROM RICHMOND. ‘The returned Bull run prisoners belonging to the New York Twenty-seventh regiment, numbering thirty-two, visited their regiment, which is attached to Gogeral Franklin's division, and met with @ cordial reception from their officers and companions in arms, ‘The poor fellows are staying in quarters here, and have not yet received their pay or @ furlough, ahd were invitod to visit their comrades and partake of a bountiful feast. They were welcomed by Colonel Joseph J. Bertlott, who was Major of the regiment in the Bull ran fight. Colonel Slocum, who commanded them at that time, was killed in tho battic, and Major Bartlett has been promoted to the command. The scene was a touching one, as the men who haye lauguished five months in the rebel prison grasped tho bands of their more fortunate fellow soldiers, and were welcomed home, Many of the officers of the division wore present, und inthe speeches made on the happy occasion allusions wore made in a feeling manner to the sufferings of those who endured captivity, and to tho momory of those of the regiment who diced in their country’s cause. The comfort of the returned prison- ers will be amply provided for in the camp, ARRIVAL OF A RELEASED PRISONER FROM CHARLES- TON. Captain J. W. Sprague, of Company E, Seventh Ohio regiment, the first prisoner returned from Charleston, S_ C., artived here yesterday evening, having been oxchang- ed for a prisoner taken at Hatteras, He was captured August 11th, near Big Birch, Western Virginia, by a de- aechment of Wigo’s rebel legion of cavalry, under Colonel ‘rogham. He was reconnoitering with only two dra- goons when takem, Captain Sprague was carried to Rich- mond, where he remalued until September 10, when he wns transferred to Charlestoa, with one hundred and fifty-threo officers and men. Yhe number was augment. by prisoners from sea, amcng whom were Captain Mor- rill aud crew, wrecked in the Oscoola, and Captain Dick- inson, captured by the privateer Saily. Three prisoners died in Charleston. On January 1 the prisonors were transferred te Celumbia,S. C., fears being entertained that the city would bo‘taken by the Unionists, A great panic was created by fhe capture of Port Royal, and the surrender of Mason and Slidell was received with howls of disappotmted rage. The publication of the surrender in the Charles on ‘papers was suppressed until four days after it wes known by the prisoncrs ¢hrough their guard. Tho officers lived on jall fare, in dirty jails, and wero ‘treated. with no consideration. They have been generally healthy in Columbia, where the air ‘and water are:pare, ‘Troops wore rallying for the defence of Charleston. The prisoners met Calhoun’s battery, eight field pteces and two howitzers, between Charleston and Columbia. Governor Wise is in command of a force at Pamlico Sound. Captain Sprague says if Colonel Corco. ran-could-have been at liberty in Charleston, he could havoraieed an Irish regiment for the ‘Union in twenty- fourthours. When he arrived at Norfolk he was put on parolo, and says but littie respecting that place, except. mg that it seeyred well filled with ‘troops. He visited abe President and General McCielian today. After a to his family he will retumm ‘to his regiment, of whioh he is sevior Captain. ‘GM, MEAGHER IN COMMAND OF THE URISI BRIGADE— YROPOSKED ORGANIZATION GY AN IRISH DIVISION ‘UNDER GEN. SILLELDS. Gen. ‘thomas i'rancis Meagherswent acrors the Potomac \imto Virginia this afternoon, and pitched his teut in the ‘encampment of the Irish brigade of which he ia the com. vmauder. friends and admirers in the regiments composing tho bri- -gade, Col. Nugent, of the Sixty-ainth, has been acting Brygadier Geieral since the brigade joined Gen. Sumner’ division, Gen. Meagher wardndisposed to assume com- anand until his appoiutment shall haye beou confirmed by the Senate. A speedy confirmation, however, is now be- yond peradventure ; and as thorbeigade is greatly in nee ofa permanent commander, Gen. Meagher has gone ovor toaaingie with his coubtrymeuyand to inspire them iy hniy presence and attention. 4 ig said that there is in contemplation tho organtzs Viow of a grand divisionof the anwy of the Potumac, so beecomposed of Irishmon, twelve .or fifteen thousand Jn uuseber, with General Meagher; Colonel Mulligaa, of Lexington fame; Colone) Cans, of the Ninth Massachusetts gegisient; and Colonel Gercoran, when he returns from capuvity, as tho Brigaders, General Shiclds is to be the Major General. ‘The project hasanet the approval cf mavy of our regular army officers bigh in command. Insscordanca with an invitation extended by Geaern are beginuing to show alarmist signs of resentmentat its impertinew mtermeddiing. ol. Richardson of Illinois warned the House af Repreme.tatives, recently, of the }. danger of causelessly multiplp.og issues with thearmy, send terrible examples in past story are quoted, atorery vetreet corner, of what angry. soldiers have donowhen, goaded beyond endurance by. presentative theoniate. In faco of a largeariny, inpegnably intrenched in its fortifications, General McClellas was calied upen lees than ix months ago, Wo agganize a & sorderly rablle, wiiab it is new conceded could not haw saved Washington fram thoenemy, if it had ween attacked at any time previous tothe Ist of September last. In addition to this, tho operations of the campaign, inaall parts of thecountry, ‘wore piaced under his control,aed ho was made respon. sible to. tho nation fer its failure or success. He hes | achieved, in this short space of time, what neither Han. nibel, Camr nor Alexander was required to de before him, and what Napoleon never attompted. The first three .of these commanders had at their dis. posal untold. wsteran legions, harde ed and disciplined by long years of bloody conflict, and tho latter began his Ttalian campaign, at tho fioad of, fhe flower of an army, experienced ineight previous campaigns of the French republic. No proviows milétary chieftain hag been com- pelled to make veterams of balf a mijtion of raw reeruies within less than half a yor, and General MoClelian bes only accomplished the task }y &® display of continuous q@ergy which St is tobe feared has impaired a horculean physical congtitution, and has taxed to its utmost a woudorfully well organised and experienced mind. The army, with the. of at gnost half # dozen regi” monte, tainted with the John Brewn fever, and fed on John Brown bynna, look upto him with ad. miratian, and a@ implicitly on his wisdom” Tho Presi- dent trusts him utterly, and will sustein him againat all enemies. Two members of thé Cabinet are inclined to embarrass him, but any very active system of epposi- tion would etuse Mr. Lincoln to have recourse’ go the extreme measure of dismissing thom from their and appointing more suitable individuals in their Tt is n@arly certain that Congress will authorize the £200 000,000 of legalized demand Treasury note, | d nomisations, fundable at the option of holders, ity years’ bonds of sums as small as fifty dollars, Déaring fom Mk to olgut pereewt Interest, and redeomable by government jn amounts of & million of doliars Shielde will visit the camp somo, time noxt week, Ar rangements will be made to give Bima brilliant recep- and Meg gher arc of tho snoct cordial cbaracter. RETURY OF THE DUC De CHARTRES AND COUNT DE rams. ‘The Deo de Chartres nud Compte 42 Paris returnod from thet furlough to-day and resumed their staif duties. ‘THE REBEL COLOWRL PEGE AM. ‘The reve! Lieutenant Colonel Pogram, recently released rom Fort Warren, left bere tday for Richmond, to pro- re an exchange among the federal prisoners in the hands of the rebols. AVEAIRS ON THE LOWER POTOMAC. The fog wes #0 thick last night that che Stepping Stanes was obliged to lie off Alexandtia till fis morning: At neon she again started to run the sebel blackade, ‘The,Pensacola left her anchorage in front of Alexandria today and progseded down the river. Whether she passed she upper position of the flotilla, aud attempted to pass tho katteries, dias not yet beon aecertained, DSFEATED PLOT 20 RENDER OUR CAVALRY AKD AR- THLERY USELESS. On Thursday night, between cight and sine ooleck, while the army of the Potomac was envoloped in a desse fog, ®maysterious ocousgence took place in some of our divisions across tho river. It was ascertained that the ‘of many of the horses in the First New York oaval- ry regiment, in Gen. Franklin's division;.of the Righth I!- linols cavalry regiment, in Gen: Sumner’s division, and of “ho batteries, were cut, the jo8 running 10086 all over the encampments Upon examination it was found the halters had been cut with sharp knives, and (hat sovernt spdlviduals mupt Hia¥o heen engiged in tho Busi. neces, Tho First New York cavalry hod pe rly two hun. He was warmly welsomed by his numerous | Meagber end other aflkers in tho brigade, Gonoral tion. Sho relations existing between Generals Shields! “NEW YORK, SUNDAY, JANUARY 12, 1862. dred horses cat loose, five or six of which have been lost. It is believed that there was some secret plan on foot, the successful execution of which would have re- dounded to the benefit of the rebels. It is said that a demonstration on our pickets that evening was contem- plated, but the attempt to impair tho offlciency of our cavalry and to cripple our artillery was discovered in time by the horses running through the camps. Certain Tesidents of the vicinity, known Southern sympathizers, are suspected of complicity in tho affair, and have been arrested by Captain Boyd, Proyoss Marshal of General Frauklin’s division, PRESENTATION TO THE REGIMENTS ENGAGED IN THE BATTLE OF DRANESVILLE. This bas been a galaday in General McCall's division to the Sixth, Ninth, Tenth and Twelfth Pennsylvania regi- ments, the Bucktail Rifles, Captain Faston’s battery and Colonel Bayard’s cavalry. The regiments attached to General Ord’s brigade that participated in the Dranesville battio were pregonted thoir regimental flags, on each, in conformity with the direction of Goy. Curtain, of Penne sylvania, the words, “Dranesville, Dec. 20, 1861”, hav- ing beon inscribed. The presentation took placo ih front of * Johnson’s Hill. Tho entire division was out and formed a splendid military pageant, Spoaker Grow made the presentation speech. Of the many fine presestation specchts he has made this was the best. There was the true spirit of oratory im every sentence, and a flow of patriotic utterance and enthusiasm that stirred up the scldierly pride and feeling of the listening regiments. It was the occasion that drew him out. The Keystoue Stato ti@ops received a lofty tributeat his hand He stated that roem had beon left on the flags for other inscriptions, and if the war eontinued, and other battles are fought, ho pi that other records of proud victofies by ivania reserves would be added, He was interr with frequent appmuse. Genoral McCall followed brief speech. Ho was nct a man of worda, but of deeds ~He promised that his troops would show themselves anti prove themselyoe sin the enemy. 1g; and ho believed they would ywerablo by any equal force of SINGING JOHN BROWN SONGS. The report some time since published in the New York papers, that John Brown songs and hymns were sung in Colonel Cochrane's régiment, was falgo and slatidérous from béginning to end. Nothwng of tho kind has over happened, or would have been tolerated by Colonel Coch- rano for a single moment, ‘The effort to make it appear that he has become @ couvert to abolitioniam is a weak invention of eiewies, which, however, deserves contra diction, *] TAYMBNT OF THE TROOTS. The payment of eur troops across the Potomac is being harried through ag rapidly as Several regi- ments were paid tday , and the remainder will doubt- less be paid withit the'next week: NEWS FROM PORT ROYAL. TWO DAYS. LATER INTELLIGENCE, ‘Scarcity of Ammunition Among the Rebels. Official Reports of Flag Officer Dupont and Com. Rodgers on the Port Royal Affair &e., &e., ke. ‘The steamship Ocean Queen, Seabury, from Port Royal Bar January 8, arrived at this port yesterday afternoon, ‘The transport At from New York, arrived at Port Royal on the 6th. Nothing of importance was known to have transpired in the vicinity of Hilton Head since the attack on Port Royal ferry on inat, eguibe a, + leer Ay Bight Miebt- gan regiment, died at Port Royal of wounds received in the engagement of tue Ist. A heavy firing was heard at Hilton Head, from the direction of Tybee Island, supposed to be from a large naval force stationed at Tybee. Ships connected with the stone flect continue to arrive at Port Royal. - ‘The naval vessels at Port Royal were tho frigate Wabash, sloops Savannah, Gem of the Sea; gunboats Unadilla, Ottawa, Pembina, Seneca, J. Smith, E. B. Haley Ellen, O. M. Pettit, Mercury, Courier, Relief and Release; transport steamers Atlantic, Matanzas, Cosmopolitan, Délaware, Bostun, Belvidere, Mayflower; ships Ocean Express and Golden Eagle, and about thirty coal schooners. ‘Ths Ocean Queen brings the following passengers:— 8. Picton, Joseph Di “ » Hen y Toby, Erastus Fivhor, George N. Bailey, J. H Phinney aud (eo. Kenworthy, captains, and ninety- two officers and mon—ail of the'stone fleet. Liestenant James Ingra, of Gonoral Shorman’s staff ; Liecteusnt B. R. Corwin. Forty-cighth N. ¥. V.; Lieute: nant Gele, Forty-cighth N. ¥. V.; Licutonant C, 8. B er, Servnty-eixth Pena, ; Lieutenant Fravk Maj ty-sixza Poun.; Lieutenant B.C, Brown, Eng! Cor; ‘and teu mon-cof missioned officers and fifteen privates. Tho Ocean Queen has a large quantity of cotton on freigint. The following ordor was found by Captain ©. 0. Rou- telic, of the Vixen, in the camp at Rockwell, on the North Edisto-river, laet month. GENERAL, ORDERS—NO. 2. Hrangvanrens, Coosawnatenin, §.C., Nov. 27, 1861. 1. In consequence of the general sea'city of amuunt- tion, the General Commanding desires to imprees vpoa ‘the commanders of regiments and corjs the absolute ne- consity of economizing the supplies they have on hand to the utmostextent. To this end the grarus will: ot be al- lowed to load their picees unless in the act inl presence ef thoenemy,or in dangor of #irprise. and all bunting patties will bo strictiy ferbiddon to nse the p .v'ie ammu- pition, Tach soldier will be held strictly accou.:t ble for tho number of rounds issued te him, and c. mpany off aro divecied to make constant inspections of the earl: Mga Doxes and thei: magazmes, in order (0 asgare themselves that there is no improper wastaye. arms ixeued to Fome of the regiments are not of uniform. calibre, and consoqnestly there has becn sme tisyra or- tion in the corresvonding ammunition. Ae this might not improuably prove a éaisl error, it ie etictly enjoined upon a.kcommanders to give a carofinl pestonal examina- tion of ail requisitions €or ammunition, ant also to super- jnten:| tes distribution ¢f the ame to the wen. . 8. The attention of tho troop in this department is called to the evil pragtice of tearing dasen fences and other private property for firewood and ater purposes. All mterfe: eace with the rights of citizens: rious in tte lendency,, an is strictly fo: bidder. eral hopes (hat it will omy be necessary te. remind the troops tha! they are eitizons, as well og # diers, and that, a8 they lake up arms to repel tho enemy from our soil, they @ivuld be still were careful to preserve it ca. e- it own depredations. Prompt and rev punishmens will follow alke rreguiar ities of shis mature in future, and: t is strictly enjoined upon all eilicera to seo 4o the literss execution of is order. By orden of General RE. T. A. Waserncton , Capt. @iad A. A. G. Lao D. Waseusn, A. A. Gen. ,Q@PTICIAL REPORT OF SHE NAVAL ORERA- ®10NS IN THE PORT ROYAL FERRY AF. FAIR. REPORT GY FLAG OPFISER 8. F. DUPONT. Bia Stuy Waaust, Port Roxar Hannon, Jan. 4, 1892. Sim—-I have the honor to inform the department, Wat the.attention of Gen, Sherman end myself tas been drawn for some time past to the dosign of the enemy to shut up our treepa in Port Rayal Island, by placing obstructions in Coasew river and Whale branch, by con- structing batteries at@ort Royal Fenry, at Seabrook, and ator near Boyd's creek, and by accumulating mea in us vicinity in such manner as to be able to throw a force of twenty-five hundred or three thousand troops upor any of these pointe ata short nokice. In a confi, deditial commanication of the 28th ultimo, the Genera; informed me shat the time had arrived for arresting perempterily the designs of tho enemy, ang for doing it in guch.a manner as would servo a subsqguest purpose, and he requested ae to "furnish my quota of the force to We employed in thd combined eperation. ‘Tho plan of conduct having been fully determined in soveral conferences between the eommanders-in.cbiof ‘and thé heads of the expedition, and the first day of ibe now year having been selected for tho timo of attack, 1 Commander ©. R. P, Rodgers to the command of tho naval forces, consistingof the gunboala Ottawa, Liowenant Commanding Stevens; Pembina, Figutenant Coftinensting Bankhead, and the four armed boats of this slap, carryiig howitzers, under tho chargo of Lieut Upebur, Luce «and Irwin, and Acting Master ) All of owhIOn Wore & pntor tho 2. Uh: Comm ning Cenersi has also learned that (he | THE NEW YORK HER Coosaw by Beaufort river; and of the gunboat Seneca, Lioutenant Commanding Ammen, and the tugboat Ellen, ‘Acting Master Commanding Budd, both of which move up Beaufort niver and approach the batteries at Seabrook and Port Royal Ferry by Whale branch. The armed tug B. B. Hale, Acting Master Foster, under the command of Lieutenant Barnes, waa afterwards de- ‘spatched to Commander Rodgene. ‘The part assigned to the naval force was to protect the Jan‘ling of the troops at "8 plantation, the first point of debarkation, to cover the route of the advancing colvmn, and the second point of debarkation, and to as- sai] the batteries on their front. I refer you, with plea- gure, to the official reports for the occurrences of tho day, and I have only.to add, that from the note of Briga- dier General Stevens, a copy of which accompanies this report, and from various other sources, learn that the naval part of the expedition was conducted by Commander Rodgers with the highest skill and ability. I have the honor to transmit herewith his detailed report, which the department will read with pleasnre, Respectfully, &e., 8. F. DUPONT. REPORT OF COMMANDER C. R. P. RODGERS. ‘Unite Srares Piao Sip Warase, Pont Rovat Hansor, 8. C., Jan, 3,1862. Sm,—I reached Beaufort at noon on the Sst of Decem- ber, with the gunboats Ottawa, Lieutenant Commanding Stevens, and Pembina, Lieutenant Commanding Bank- head, and the four large boats of this ship, each carrying & twelve pound howitzer, under Licutonants Upshur, Luce and Irwin, and Acting Master Kempf At sunset Lieutenant Barnes, of this ship, joined me with the armed steamer E. B. Hale, Acting Master Commanding Foster: In order that no intimation might be given to the enemy of our approach, these vessels remained at Beaufort until after dark, when they ascended the river to a point ‘about two miles from the Coosaw, where we anchored to ‘await daylight. At four the poxt morning I moved on with the launches, and at daylight joined Gen. Stevens, at tho head of his column, and at tho ,appointed place of rendezvous. . ‘The troops having all embarked, wo crossed the Coo- saw, and at cight A, M. the first detachment of volunteers landed, under cover of our boat guns, at Haywood’s plan- tation,and with them went the two light howitzers of the Wabash, to sorve as a section of light artillery, under Lieutenant Irwin, of thisship. At sunrise Lieutenant Commanding Stevens succeeded in getting the Ottawa throngh the difficult passage of tho Brickyard, and in Joining me in front of the columa, the Pembina and E. B. Hale arriving shortly afterwards, We proceeded to the next landing, at Adams’ plantation, where the remaining troops were ordered to disembark. On our way up we threw a few shells into what seemed an outpost of the enemy, near a long embankment Anchoring the gunboat at ten o’clock so as to cover the route of the advancing column, and the second point of debarkation, where also our launches were stationed, I went up in the Hale. to within range of the battery at Port Royal Ferry, at which Licutenant Barnes threw @ fow shot and shell, dislodging a body of troops stationed in the adjoining field, but eliciting no response from the battery. move, tho gunboats shelled the woods in front of his ® and then advancing we threw a rapid fire ‘of it'at two forty P. M., the Ottawa. passing between the heads of tho two causeways. The enemy had succecded in taking off all (heir guns save one; but T could not learn whether any except field pieces had been removed on the day of attack. We found a quantity of eight-inch shells and thirty-pounder rifled shel!s in the magazines. ‘At half-pagt two the Seneca, Lieutenant Commanding Ammen, and the Ellen, Master Commanding Budd, the other vessels which you had placed undor my orders, having passed from Broad river through Whale branch, came within signal distance, and their com- manders came on board the Ottawa, having assisted in the destruction of the works at Seabrook; but their ves- sels wero prevented by the lowness of the tide from joining me. The Ellen camo up at eight o'clock, and the Soneca the next morning, Immediately after the Ottowa had anchored the ferry ‘was roopened; and the Pennsylvania Roundhea/s passed over and occupied tif Fort, where they were joined, about four o’clock, by General Stevens’ advance guard, ‘The enemy appearing in force aud In line of battle upon the right of our troops, at fifteen minutes past four o'clock, the Ottawa moved down the river a short distance, with the Pembina, and opened fire with cleven-inch and Parrott guns, their shells falling among the enemy's troops. with great effect, driving them into the woods, and cloaring the flank of our column, where the skirmishers had been engaged, and the enemy bad opened fire from a ficld battery of several pidccs. Soon after sunset we ceased firing for a while, and tho enemy eent a fag af truce to one of our afvanced posts, to ask permission to carry off their killed and wounded. Just then the gunboats reopened, and before General Stevens’ messenger could convey his reply, that the firing should cease for an hour, to enable the enemy to carry off their wounded, the officer who had brought the flag had galloped off. At sunset I landed our heavy howitzer, directing Lieutenant Upshur to place it in battery with the guns already on shore under Lieutenant Irwin, there being ‘no attillcry with the brigade but that of the Wabash. At the same time Lieutenant Luce, with the second launch and its rifled gun, and Licutenant Barnes, with the Haley were sent to the lower landing to protect the boats and steamer in which our troops had crossed, and superintend their removal to the ferry, which accomplished about midnight. ‘At sunriso we re-embarked our boat guns. At thirty minutes past nine o'clock on the morning of the 2d, the enomy again appearing in the wood, we opened a hot fire of shot and shells from the Ottawa, Seneca, Pembina, Biten and Hale, and after fring briskly for a time slack- ened the fire so 98 to drop a shot or shell into the woods about once a minute, At forty minutes past nin® o'clock our troops began to recross the ferry» and wore all over by noon, our field guns having been iandod, at the request of General Stevens, to cover the rear of the returning column. The enemy made mo fusther demonstration. The scows which had been used in crossing wore taken to our veese's, to bo towed to Beaufort, and at two P. M. we got under way and moved down the Coosaw to @ point near the Beaufort rie ver, whore wo were compelled to wait for the morning's tide to pass through the Brickyard channel. 7 1 Beg leave to express to you the great satisfaction 7 found in co-operating with General Stevens, and my ad- miracion of thy skiifal manner ju which be bandied his troopecnd made his combinations, About twenty-five handed of our volunteers crosred the Cocgaw, Their conduct and bearing were excellent, I have to thank the commanding officers of the vessels fur the skilful and prompt support they gave me. Tho manner in which thetr guns were rerved, and their vessels handled, under wery difflewit circumstances, shows tho highest professional merit. The manner in which the boat and field guns of the Wabash were managed by the officers in charge of them did thoee cfficers much credit. Lieutemant Commanding Ammen will ake a separate report of the #ervice of the Seneca and Ellen, at Sea- ‘brook, before I mot him, at half-past two, on New Yoar’s day. 1 is unnecessary for me to say to you that his work was thor y done. The channel of the Coo- saw is sO marrow 80 shallow in many parts that it dces not afford a vessel room to turn by the ordinary methods, aed our gunboats wore, consequently, very often aground; but so admirably are they adapted to this kind of service that we never felt any solicitude their snicty. Lie. tenant Goggewell, a signal officer of the army, was, directed to repert te ane for duty, aud furnished with tho mean of constantly communicating with General Stevens with a facility and rapidity unknown t¢ the naval service. I take this opportunity of mending that the oode of signals invented by Majo Meyer be at once imtroduced into the uawy. Thave the honor to be. &e. , ©. R. P. RODGERS, Commander, ‘To Fiag Officor 8. F. eo commanding South st Jaatic Hlockading Sqoad/n, LETTER OP GEN. STEVENS TO COMMODORE DUPONT. HeapquaRTERs Secoxp Biuaane B.C. ,| Baravrort, 8. C., Jan. 8, 1862, } My Dain Commopore—I would do great injustice tomy ‘own footings, did I fail to exprees my eatiefaction ami de- light wit the recent co-operation of the commend of Captain Rodgers in our celebration of New Year Day. Whether regard be bad to his beautifal working of the gunboats inthe narrow channel of Port Royal, the, tho- rough concert of action establishel through the signal officers, or tho masterly handiing of the guns against the enomy, nothing remained to be desired. Such a co-ope- ration tends to elevate and inspirit both services, and augurs everything propitious for the welfare of our cause ja this quarter of the country, ‘Traly, your friend, ISAAC 1. STEVENS, Hrigndigx Gon oral Commanding. ‘To Commodi 8. FP. Durowr, Commanding Squadcon , Port Royal ; aa PRICE THREE CENTS. IMPORTANT FROM KENTUCKY, The Rebels Under Humphrey - Marshall Refuse to Fight, and Disband. Destruction of Their Wagons, Tents and Camp Equipage, ac, &e., &. Crsonmat, Jan, 1, 1861, From the editor of tho late Sandy Hook Valley Advos cate, now one of the proprietors of the emmecereag™ | who arrived here from Sandy Valley yesterday, learn that the second rebel invasion of Eastern Kentucky has ended in a disgraceful rout. Monday last Colonel Garileld’s forces, including. the Forty-second Ohio regiment, the Tenth Kentucky re+ giment and eighteen hundye cavalry, had proceeded up the Big Sandy to Paintyille, within seven miles of the rebel camp, when they were met by a flag of trace from Humphrey Marshall, asking if matters could not be er- ranged without a fight. Col. Garfleld immediately replied that be could offer m arrangement, and that they (the rebels) must either Sight ° i or surrender unconditionally. Humphrey Marshall then addressed his men, tellin, them they had the alternative of surrendering or dis- banding, and giving them the choice, They immediately collected and set firo to all their wagons, tents, camp, equipage, &c., and then cach man was permitted to takef care of himself, and the whole force scattered in dons fusion. The rebels made no attempt to save anything except their cannon, which they hauled off. ol. Garfleld has despatched his cavalry in pursuitjand ==. they expect to capture the guns, and perhaps pick up many of the flying rebels. | ‘The rebels in Northeastern Kentucky, from tke high estimate in which Humphrey Marshall's military abilities were held, had strong hopes of success under hip leader- ship. A sufficient Union force will be left in tat region | to secure its future peace and eafety. | } Lovssvite, Jaw. 11, 1862. } ‘The Democrat of this city has advices this afternoon which corroborates the account received, via Cincinnat!, of tho disbanding of Humphrey Marshall's forces, near Paintville. No further particulars have been received. ‘The Bowling Green Courier of the 20 says that Floyd arrived at Nashville on the Ist, en youte for Bowling Green. Acorrespondent from Paducah the 5th, complains bit~ terly of the treatment of Union mew there by the federal General Smith, and demands his immediate removal Rumors prevail at Lebanon thet the federal troops have taken two steamers, proceeding up the Cumberland river with munitions of war, clothing and provisions for Tollicoffer's forces. The locality of tho scizure is not stated. ° ‘Wasmmcron, Jan. 11, 1862. The President recetved,this afternoon, s despatch stat- ing that Colonel Garfield hag overtaken Humphrey Mars shall at the Big Sandy, destroyed all his baggage wagons and camp equipage, and is #till in pursuit of the fying ré= bels. ‘The despatch addg tliat this closes up the rebellioR 1 in Eastern Kentucky. . 7 At cleven o'clock to-nigtt nothing had been heard re- ~ specting this affair at General McClollan’s headquarters. A * ~ OUR CAMP WOOD CORRESPONDENCE. Camp Woop, M.cxrorvsvnie, Ky., Jan. 6, 1862. The Defensive Works of the Revels at Bowling Green and * Columbus—Zollicofer’s Movcmenta—H near Somerse—General Schoepff’s Lh Wing of General Briell’s Army—Refugees from Southern Kentucky, de. - Fortune may not favor the rebels; but does it not seem as if she had plentifully supplied them with strategic points for defensive purposes along the whole fronjjer of the rebel States, their stretches of chains of mountaing ~ farnishing admirgble points for fortifications? From Ma, nassas, in the cag}, to Columbus, in tho west, natural Gibraltars rear their heads and frown upon the foo that dares attempt te scale their walls. Manassas has already deen attempted; with what success it is not necessary to recall to mind@yet fresh with the recollection of the feats and fortunes of that day. Thave gives you in a former letter an idea—rough one, it is trae—of the defensive works which, in and around Bowling Green, have made that position a strong one for defence, while all your readers aro sufficiently well ae, quainted with the rebel preparations at Colambus to render unisteresting any description I might be able to give. Again, in the wost there is another position which nature om the one hand, and General Zollicoffor, with the aid of a r@giment of negrocs, on the other, have developed into a fortification which seems almost invulnerable to attack. Cenersi Zollicoffer's position is in & great measure known the officers in command, both at this point and further east. Scouts, spies and refugees have #0 enlightened them on the subject that a fair idea has been for modo! the rebel position and the purposes of the leader. At the pomt of the crossing of the Cumberland river by Zol\i@ffor the stream makes a sharp angle from dae south and mins due west, while the range of bills in whose val- ley the stream flows takes the same course for two mileg, anc‘shen, leaving the stream to follow the channel formed by @ther bills, runs northwest for many miles, forming @ 4 cb for Fishing creek. Tho valley which this range ~ ofpitis thus forms narrows at the river, becomes broader asgone approaches Sc merset, until the hills disappear al- ther. Near Somersct, in this broad valley, General stro orcamped, white Zolieoter, having fried Iimeelf on tho bank of the river and mounted guns so as: = ing a Goneral "a etal, was wv How long the rebel General w: to rotain _ sition remains to be decided Booll’s army, has taken up and ESS ate ie ‘oon be on the: Cumberland river, south of Zolitcotfer. 1 would not men- ment position assumed by Zollicoffer is but twenty miles east ‘but know nothing the side of the river Bp ot tre Tegiments, one om- ployed. as skirmishers Cy other on prime an 6 rovers In ewe tmore reglinssts erases Went inte camp on the southern aide of the + is the ret patzeenent ou Dixie 2 oer dennis tformation of ihe rumored. advance ; | at ‘Thie town is full of refugecs from Southern, owe ‘They aro very bittor on the United States Be ER hastening forward, - @ inetooen & “A . 28 YeRe eres