The New York Herald Newspaper, January 23, 1862, Page 1

THE NEW YORK HERALD. WHOLE NO. 9265. NEW YORK, THURSDAY, JANUARY 23, 1862. PRICE TWO CENTS. IMPORTANT FROM MEXICO. Arrival of Gen. Prim and the French and English Meets at Vera Craz. An American Vessel with Arms on Board Seized by the Spaniards. The Rebel ‘Commissioner and His Operations. The French and English Flags Or- dered to be Hoisted, te. ée,, &e Our Havana Correspondence. “ Havana, Jan. 18, 1862. Latest from Vera Crus—What Both Sides are Doing— Arrangement of the Three Flags—The French and Spa- wish Troops Reviewed—Speech by General Prim—Scarcity Of Provisions—Seisure of the Beautiful Star—Her Bri- tamnée Majesty's Ship Conqueror Ashore—Tender of ~~ vices of the Santiago de Cuba—Almost Another Slide. Men Affair, bc. Havana never was duller than it is now—not a par- ‘Uele of excitement of any kind, either in politics or busi- mess. Even the news from Mexico, which we received by the steamer Velasco—arrived on Wednesday night, with ates from Vera Cruz to the 10th inst.—contains nothing of interest beyond the safo arrival at that city, on the evening of tho 7th, of General Prim, together with that f the British squadron, which, according to some ac- Counts, anchored in Sacrificios on the same day. Other Jetters spoak only of the French, and do notgay a word @bout the British. There have been rumors of bloody doings over there; but if there be any truth in them the pepers here keep us completely unenlightened. They admit that ‘ one or two individuals” have been carried ff by the Mexicans, and that itis tho intention of the Commanding General to scour the country for a certain istance around the city of Vera Cruz. General Gasret, {im fact, did make a reconnoissance in pergon at the head ‘ofall the disposable forces under hig @rdors,say three or four thousand men, and returned, according to the yepers, without “ any incident.” Rumor, however, says ‘he was caught in an ambuscade, lost » great many of his ‘men, and bad toretire in hot haste. This and similar ‘umors are based upon private letters said to have been Fecelved frem there. It may be all true; for the Mexicans will fight, notwithstanding that the go” ‘vernment is very much embarrassed for want ‘of money and other resources necessary to carry on war. General Prim held a review immodistely after his ar- vival, anda large portion of the army is now encamped ‘outside the walls, to make room for the French and Eng. lish tzoops within the city. It is a very curious circum. tance, and worthy of romark, that the French and ‘British flags were not hoisted at Vera Cruz till the Bri- ish squadron arrived there. The arrangement of the ‘various flags is also worth noticing:—'‘In conformity with the arrangement in the agreement made between Bpain, France and England, and according to the orders ‘fasued to that offect, since yesterday, the 6th inst., the ‘Three flags have been hoisted in the city and on the cas_ ie, that of France in’ the centre, the Spanish on the Uft, @nd the British on the right.” The Spaniards here ex- pected their flag would oecupy the chief position—which ‘ts the centre—and are furious to find themselves in the lowest rank. But who issued the order to hoist those Gags on the 6th? I think there is plain evidence there of a “‘bigher law,” and it was certainly very ridiculous and ill-advised conduct in the Spaniards to defer complying with their known duty to their allies till probably some Vrench or British oficer recommended the issuing of that ‘unpleasant order. Perbapa I had better give the following letter, which appears in is morning’s Diario, dated ear Jan. 10, ree 1 yesterda; : el " 20 the ‘eect, hin Ex ite count’ "de fous disembarked in the midst ® numerous assem- Dlage collected Ae the wharf, . panied by rye brag dwelling. Shortly aif the chiefs and Deing assembled in Riis house, they had the pleasure of hearing an eloquent discourse, in which his Excellency, in plain but energetic lan; . declared the great pleasure he felt on find: ‘imself at the head of so brilliant @ division, and his gratification at their humane and fra- ternal behaviour towards the neighborhood. since the mis- sion of the army in this city was not that of war, unless the ‘Mexican people should turn a deaf ear to the justice, rea- fon and generous sentiments which the Spanish nation cherishes towards those who were once her children and ‘whom she now considers as brothers. The words of the General moved more than one listener. The French squadron for the last three days has been disembarking troops, munitions, provisions , artillery, &c.; for, luckilv, the sea permits it—arare thing on these this season of the year. at nine in the morning, the battalion of French Zouaves landed, and were accompanied to their quarters by Brigadier General Vargas, at the head of two Dattalions of the Spanish division, with their respective bands. The Algerine dreasof those soldiers, whose deeds of valor have made them universally known, attracted much attention, especially from the fair sex. In the evening the French forces had a grand parade, Deing reviewed on the high ground of Los Hornos by the General-in-Chief—to witness which military duty there ‘was collected a numerous crowd of all classes and several French officers, who do not hesitate to declare, with all frankness, that our army rivals theirs. At night tho bands gave their performances in the houses of the French and English Consuls, and in that of the General. in- Chief. it i# proposed that a part of the division should make an excursion in the neighborhood, in order to drive away the guerrilla parties and open a way to the city for veot Battle. ‘The Cronica, a paper published in Vera Cruz by officers of the expedition, gives the following extract from tho Speech of General Prim:—We have not come to this country either to rule or conquer; we have come to de- mand satisfaction for past insults and to obtain guarantees for the future. I believe that the Mexicans, convinced of our loyal and just intentions, will not oppose us with arms; but if they should, they alone will be fesponsible for the consequences, and we shall have tho satisfaction of having acted in compliance with our duty and our conscience. In that case, roly. ing on your valor and the justice of the cavee which we defend, I will throw myself cheerfully into the midst of danger, in order to peint out the path of glory, The same paper says:—Correspondents of various papers have come to Vera Cruz from New York, New Orleans and other points of the United States, and even from some of the Ruropean capitals, in order to give an exact account of events transpiring in the Mexican re- public. ‘The unfortunate residents in Vera Cruz must be almost at famine point, A tomato no larger than a pigeon’s egg costs six and a quarter cents, achicken $2 50 to $3, and many necessaries cannot be had at any price; yet the Spaniards say that many families aro returning to tho tity. How an opera or theatrical company can pay thero at such a time is more than I can imagine. However, there is a dramatic company there, which will havea bard time, I think. Max Maretzek has just concluded his performances in time to save his bacon, Two vessels, the Beautifn! Star, American, and the bark Puebla, probably Mexican, have been seized at Vera Cruz. They had4,000 muskets, a case of percuesion caps and About three hundred pounds of powder on board. Can goods and vessels be seized if war be not formally de- clared? It is only during war that military effects are contraband of war. And if war be not declared, then to All intents aod purposes there is none, Therefore the Spaniards had no right to seize those goods. 1 do not find a word said about the doings of the Fng- lish fleet. If the English troops had been landed we @hould have had ¢ome news of it. It is quite likely you will have heard that her Britannic Majesty's ship-of-the-line Conqueror, 100 guns, went ashore on Rum Cay, some seventy or eighty miles from Nassau. Why did they call that piace Rum Cay? How unpleasant to an Englishman, the roflection that the capiaip of such a splendid vessel ebould run her ashore | on & place bearing so suspicious a name, The news of the occurrence was brought by an English steamer, which was despatched here for assistance, and I am happy to have to record that Consul Schufelat and Captain Ridgeley, of the United States steamer San- tiago de Cuba, immediately waited upon the British Con- sul General, for the purpose of tendering tho services of that steamer, the only United States vessel then in port. Consul Crawford received his visiters very cordially ,’and said be would gladly avail himself of the proffered assist- ance if he thought it could do any good; but he feared it was already too late; for that, by the timo the Santiago de Cuba could reach the scene of the accident, the Con- queror would be either entirely safo or a complete wreck. ‘The offer was therefore declined, and I have heard nothing of her Britannic Majesty’s ship Conqueror since, except what a Nassau letter in to-day’s Diario de la Marina says. Speaking of these matters reminds me that we came ‘very near having a second edition of the Mason and Sli- dell affair on the occasion of the last departure of the Karnak from this port, She had on board several Southerners, among others the captain of tho Ella Warley, formerly tho Isabel, then at Nas- sau, and the former captain of the Webster, who sueceeded in gotting out of Havana some months ago under peculiar circumstances. It was decided to 8eize those persons, and arrangements were mado accord, ingly to board the Karnak at sea; but the arrivalof tho City of Baltimore, with news of tho intense excitement in England, spoiled the game, which was abandoned rather than add more fuel to the fire. I have heard that the Ella Warley has since arrived at Charleston, notwithstanding the vigilance of the blockading squadron above, and the impassable stone fleet below tho waters of that harbor. Our Vera Cruz Correspondence. ‘Vara Cruz, Doc. 30, 1861. The City in Possession of the Spaniards—First Appearance of the Foreign Flet—Its Arrival in Port—Landing of Queen Isabella’s Admiral, His Demand for Possessing and the Surrender—Organization of a New Government by the Spaniards, and Rules for the Collection of the Customs— The Land and Naval Force:—The Invaders in a Danger- ous Position—Eatensive and Well-Defined Plan for Oppo- sition by the Mexicans—Trade Annihilated—The Southern Rebel Commissioner in Town and Trade with the Rebel States— United States Mails from Havana.and English Of- ficial Discourtesy—Miramon on His Way Home—Outrage on a French Officer—The Church Party Leaders to Support the Government in the Present National Crisis, de. This usually quiet little city is at present quite lively, occasioned by the occupation of it by the advance feet of the Spanish expedition to Mexico, and the city is in full possession of the Spaniards. On the 8th of December twelve Spanish steamships ‘were signalized from the castle of San Juan de Ulloa, and on the 10th fifteen more Spanish ships were signalized, all making for Anton Lisardo, some twenty miles to the southward of this city, and on the morning of the 14th the Spanish Admiral sont on shore two officers of the fleet, demanding the surronder of the castlo of San Juan de Ulloa and the city of Vera Cruz, and twenty-four hours were Allowed for @ compliance with the demand. On the morning of the 17th a force of three hundred men wore landed, and to the commander of this force the keys of the palace and othor public buildings were given Dy the President of the Common Council of this city. At twelve o’clock at noon thé Spanish flag was hoisted on the Castle.of San Juan de Ulloa and the city, with all due ceremony, and Rafael Arias duly installed as Gover- nor of the castle, with Carlos Vorges as Spanish Governor of-Vera Cruz, and Manuel Gasset General Commanding. On tho 19th the General in command issued an order» in which he says, the Spaniards have not como to Mexico for conquest, but to enferce the payment of claims against the Mexican government. (n the samo day tho Secretary of General Gasset requested an interview with the English, French, Spanish and American consuls on the subject of custom houses. During the interview it was agreed that for the present all vesseis could discharge and deposit their cargoes in the warehouses, there to remain until otherwiso orderod, unless articles of a perishable nature, in whieh case consignees can receive their goods by giving a bond to the Collector for the duties, the bond to be approved by the convention abovo referred to, who ‘were constituted @ commision for the inspection of the Custom House. ‘Tho commission will be allowed to name the Treasurer of Customs and Deputy Collector. Two weeks have been occupied in landing troops, horses, oxen, provisions, guns, ammunition, &c. Up to the dato of yesterday but two lighter loads of foreign merchandise has been landed, and as yet there is not one office in the city arranged. The landing of the troops is described by witnesses as a grand spectacle. Your cor- respondent was not in the city at the time. The entire Spanish force here is six thousand men, with the following ships, which comprise the squadron:— Steamshipe-of- War. Brigatcs.of-War. Sailing Transport:, Isabel de Catholica, Berenguela, Ureas, Francis de Aris, ‘Blanco, Santa Maria, Pizarro Petromila, Marigo'ante, Blasco de Paray, Princesa, Sunrise, and Velasco. Concepcion, Nos. 2,4, 6, 8, 10. Sealtace. ‘Steam Merchant —Pajaro del Oceano, Carde- nas, Cuba, Cubana, Maise, exploring steamer Guadal- quiver. The Spaniards are here, and, to use a homely expres. sion, are in,a bad box. You will notice by the terms of the treaty that the united forces of Englaad, France and Spain were to proceed together to Vera Cruz. The Spaniards have acted rather premature; and, judging from their actions, they are slightly of the same opinion. Tho troops confine themselves within the walls of the city, and daro not venture a mile outside the gates. The Mexican government aro ready and willing to treat with the English and French, but they will fight the Spaniards to the last hour and to the last man; and they are making very extensive preparations in the interior to “Thget the invaders owAhgir way to the capital. After it was asce*tuined in November that there could not be any arrangement effected between the English Minister, Sir Charles L. Wycke, at the city of Mexico; the French Minister, Dubois de Suligmi, and the Mexican Congress, orders were imme- diately given to dismantio the castle*of San Juan de Ulua and the city of Vera Cruz; all the mules and wagons on the road betweon Vera Oruz and the city of Mexico were embargoed and sent here for the purpose of transporting guns and ammunition of war into the in- terior, and on the 8th of Decomber the Governor, Com- mander of the Port, Postmaster and Collector, with seve ral Mexican families, retired to Jalapa, taking with them mules, carts, engines, cars, and indeed almost sacking the city, even taking the tongues from the bells of the cathedrais. The city is completely shut off from the in- terior, and all intercourse with the capital is at an end for the present. Our market is completely bare, and T assure you that articles such as fish, flesh and fowl are rapidly getting to be among the “things that were,” and looks as if for the present those things will live but im the recollection of the fow who are obliged to remain in this place. There will be much suffering among the poorer classes. On the 10th instant General Jose Lopez Uraga arrived here from the city of Mexico, to take command of the division of Mexicans of the oriente. The Mexican forces under Uraga and Saragosa are at Chiquibiute and Puente Nacional, and number ten thousand men. Auriliano and’ Carbajal command some three thou, tand cavalry, which is much superior to that of the Spaniards. ‘The above account will give you a very good idea of our situation here. As yet no one knows what will be the result of this extraordinary expedition to this unfor- tunate country. As the natural consequence of such an event, there are a thousand reports afloat, but they are, as @ general thing, not to be belioved. After assuming the command here, General Gasset sont a messenger to General Uraga, inquiring if he had anything to say. General Uraga replied that he had pothing; that as long as General Gaeset confined his forces to the city of Vera Cruz uo attack would be made upon him; but if he attempted to march into the interior not a man of them would return. And if they do attempt it, they will find his words too true, as every one here knows perfectly well that, with no other force than the Spanish to deal with, they would clear, their country of thom in a very short timo. Every one here is anxiously waiting the arrival of the French and English fleets, and are greatly surprised that England and France should allow Spain to come here alone and take possession; and a good many are inclined to believe that there js a “nigger in the fence” somewhere. However, I cannot anticipate anything, but state facts and things as they occur. Thave nothing to say. Business here je at a complete standstill. The English bark Venus is here, with a load of coals for the former city government; but as there is no one here at present to respond for that sovernment, the captain can find no one to receive hi* cargo cr pay him his freight money. He has been here two weeks, and as yet has been unable to do anything. Colonel J. T. Pickett, Commissioner from the Confede rate States of America (rebel), has taken up his abode at ‘his place, after having been imprisoned two weeks in the city of Mexico for engaging in @ street Oght, and after his liberation he was obliged to leave the place. His mission in this country will soon end. Mr. Moran is | also here, endeavoring to make arrangements for the Publication of the Mexican Extraordinary at this place. He was to have issued the first number to-day, but is unable to get workmen. The Spaniards have established @ paper here, under the title of the Cronica, 1 will send you to-day’s number. In my next letter I shall probably be able to give you a correct account of the condition of things in the intetior, Ipresume it would be useless to attempt to convince the United States government of the necessity of an armed vessel in theso waters; but were they aware of tho amount of business, constant and uninterrupted, carried on between tliis place and certain Southern ports, they would certainly make an attempt to stop it. It most certainly looks as if in taking care of our interests at home wo were obliged to neglect them abroad. ‘There are now here two schooners that have run the blockade; one named the Matamoras, arrived here on the 4th of Decem™ ber, from Indianola, Texas, having on board one hunared and four bales of cotton, Not being able to dispose of her cargo at once, the captain called upon tho Command- ante of tho Departmento Marina and requested that tho schooner be allowed to receive the Mexican flag. Our Consul immediately protested against the proceeding and demanded the vessel’s papers, which were delivered to him and which he still holds. The papers proved to be a license, which expired July 2, 1861, and an enrolment, with the name of the Collector at Lavaca, Texas, torn out. The Consul informed the Commandante that the papers were wholly void, and protested against the changing of tho colors of the vessel, and also sent pro. test to the Governor. ‘Ihe Governor replied that he had no jurisdiction in the matter, and ihe Commandante re- plied that he should send a statement of the case to the general government at the city of Mexico. Thus the matter nag stood until to-day, when the Governor sent in his reply to the protest, which I have seen and wiil fend you @ copy, and by it you will see that this government has concluded to allow the same rights and privileges to versels from the South that they do those from the North. The captain of the schooner and Southern sympathizers here were highly indignant at the interference of the American Consul in the matter, and Colonel Piekett has made himself quite conspicuoug the last fow days in their behalf; but they all will proba- bly be much pleased when é¢hey learn the decision of the authorities. ‘Tho othor vessel arrived here a few days ago, without flag or papers, and commenced discharging her cargo this morning, on board the French ship Maria. The schooner’s name is J. W. McNeil. The price paid for the cotton was thirteen cents per pound. These are not rare occurrences in these parts, and some measures ought to be taken to put a stop to them. Before closing this letter I wish to mention a transaction that occurred at Havana on tne day of the sailing of tho English steamer for this place, which I think deserves a space in your oolumug. It ia, and has been for along time, the custom in making up mails in tho United States for the republic of Mexico to have what are called despatch bags. ‘those. consist of two or three small bag? containing mail matter and despatches from the depart ment at Washington for the American Legation at the city of Moxico ; these bags are scparate from tho general mail, although forwarded with them, and are marked direct to the Legation, im care of the Consul General at Havana. Upon tho arrival of tho steamer hore from Havana,a courier is immediately despatched to the city of Mexico, with the mail for the Legation, at an expense of five hundred dollare each trip. This alone will show you the importance of having the mails forwarded promptly to this place, te say nothing of tho greut desire and anxiety felt atthe city for news from the States. The mails were brought to Havava by the Karnzk, and de- livered, with the deaprtch bags, 40 the Cunsal General, as usual, who keeps thom in his possersion until the eail- ing of the steamer, when they are sent to the English Congul, to be delivered to tho mail agent for this place. ‘The mails were sent as usual on the 23d of December; the general mail was received, but the despatch lags were sent back, with the reply that they would not receive them at aly on board the vessel. The late hour at which this was done left the Consul General no timo to remonstrate, and he was obliged to open the bags and select a few of what ho thought to be the most important of the contents and forward by private hands. The bags are still at Havana. This may seem of small importance to some of your readers, but it is of vital importance to our Minister and American resi_ dents here. Ihave no remark to make on the subject, exceptigg that I think the act of the British Consul was rather ‘ crowding the mourners.’’ We are cnjoying fine weather, and the city is perfectly healthy. We have had several uo thers lately, but no damage has been done to the fleet. You will see by the Cronica of to-day,sent you, that General Miramon-is on his way to this country. ‘The Secretary of the French Legation, De Lillen, on his way to this city from Mexico, was attacked at Rio Frio by a band of robbers, stripped entirely naked, tied to a tree, with ice under his (ect, and kept there for an hour, when, after much persuasion, a pair of pants wore given him, and he was allowed to proceed. Such are the customs of this country. Jaxcany 1, 1862 By acourier from the city of Mexico this morning, we have the nows that, with the exception of Marquez and Zaloaga, all the leaders of the reactionary or church party have submitted 10 the Mexican government, and offered the forces of their separate commands for the pro™ tection and support of the present government. If this be true, General Miramon will arrive a day after the fair. A larrg English frigate is coming into port, supposed to be the forers nner of the fleet for this place. Copy of the reply of the Spanish Governor to the pro. test@f the American Consul:— ‘Taking note of the protest of the 234 of this menth, to the Captain of the Port of the City of Vera Croz,’ in order to grant you & permit to prevent the departure of the schooner Matamorss, which schooner sailo! fom the South of the United Saves. After haying consulied with the Sr. Cormmander-in-Chief or the naval forces of Her Catholic Majesty, and also the Sr. Auditor of War of this Division, they, with myself, have decided (hat:— Once having ‘acknowledged the ‘nationality of said schooner, not only by the roil (mevning register), but by the saine protest en. the vesse! having fulilled the neces: sary coremonies, recording to the Jaws of health by which: sho was admitted into this port by the previous autho rities, aud even despatched for her departure, there is no motive to prevent her departure without failing to the neutrality declared by theGovernment of Ter Majesty, wito has determined to grant equa! rights to the ships coming from the North or Sonth of the United states. Thave therefore thougiit it convenient to rervive, in conformity with the approval of both, that we are not empowered nor can proceed to prevent the departure of said schooner Matamoras. MANUEL GASSET. ‘Vera Crvz, December 31, 1861. Newspaper Accounts. (From the Cronica, Jan. 16.] ‘The Spanish war steamer Velasco, which sailed from Vera Cruz on tho 20th, brought us interesting intelligenca from that city. ‘All (he troops of the Spanish army, accoraing to these accounts, were enjoying excellent health. The city of Vera Cruz and its vicinity were in the enjoyment of the same health. The crews of the ships-of war anchored in the harbors of Vera Cruz and Sacrifictos were also free from every clase of disease. ‘The British squadron arrived safely on the 6th in the harbor of Vera Cruz, and op the same evening there ar- rived the beautiful frigate Frarciaco de Asis, of her Catholic Majesty's navy,on board of which was General Prim, the Marquis of Castillejos, who was so impatiently expected by tho Spanish soldiers. The French coutin- gont arrived at Vora Cruz at the same time. A friend writes us that General Prim’s voyage was a most pleasant one. ays:—''The flags of En; land, France and in No" ‘e over the city of Vera Cruz.” Three thousand of the allies are preparing to make an advance into the interior, to open the way of communica- tion from Vera Cruz to the places not yet occupied. The accounts published in different parts of the Havana papers point to the fact that the Mexicans are going to resist their invaders to the utmost extent of their ability. Prisoners Released from Fort Warren. The following persons were released from Fort Warren 6n the 20th inst. ,and departed for the South that night:— D. A. Forrest, of Virginia; W. H. Ward, of Virginia; H. B, Claiborne, of New Orleans, and A. D. Wharton, of Ton- nesses. ‘two of them wore officers in the rebel army, and had their swords with them. Charles Berkeley, of New Orleans, came to this city from Fort Warren on the 20th inst. Ho was in custody of a New York officer, and js to be used a# a witness in a cage conperniag @ vessel of which he was the master, THE BATTLE AT MILL SPRING. Order of the Day of the President. Additional Details of the Bril- liant Affair. The Union Loss Thirty-Nine Killed and One Hundred and Fifty Wounded. GEN. THOMAS IN PURSUIT OF THE ENEMY. The Rebel Zollicoffer’s Position Before the Battle, ke, Kees kee GENERAL ORDER IN RESPECT TO THE BAT- TLE OF MILL SPRING. ‘The following General Order of the War Department un- der the new administration is just tribute to the gal, lautry of our army in Eastern Kentucky :— GRNERAL ORDERS NO. 5. ‘HRADQUARTERS OF THR ae Apsutant GENRRAL’S Orvicr, Wastunarow, Jan. 22, 1862. ‘Tho following orders received from the War Department are published to the army:— ‘War Darantuent, Jan. 22, 1862. ‘The President, Commander-in-Chief of the Army and Navy, has received information of a brilliant victory achieved by the United States forces over a large boay of armod traitors and rebels, at Mill Spring, in the State of Kentucky. He returns thanks to the ga!lant officers and soldiers who won that victory, and when the official re- Ports shall be received the military skill and personal valor displayed in battle will be acknowledged and rewarded in a fitting manner. Tho cour- ago that encountered and vanquished the greatly superior mumbers of the rebel force, pursued and attake@ them in their intrenchments, and paused not until the enemy was completely routed, merits and receives commendation. The purpose of this war is to purtwe and destroy a rebellious enemy and to deliver the coumtry from danger. Menaced by traitors, alacrity, daring. spirit and patriotic zeal on all oces_ sionaid under every circumstance are expected from the army of the United States. In the prompt and spirit movements and daring at the battle of Mill Spring, the nation will realise tte hopes, and the people of the United States will rejotcerto honor every soldier end officer who proves his courage by charging with the bayonets and storming intrench- ‘ments, or in the blaze of the emmys fire. By order of the Presidemt, EDWIN M. STANTON, Secretary of War. OFFICIAL ANNOUNCEMENT OF THE VIC- TORY. Wasuincton, Jan. 22, 1862. ‘The following was received at headquarters to-night:— Lovisvintg, Jan. 22, 1862, ‘To Mason Gesenat MCCLELLAN, Commanpin U.S. A. ‘The foliowing has just been received from Genera! Thomes:— The rout of the enemy was complete. After suc- ceeding in getting two pieces of artillery acrcas the river and upwards of fifty wagons, they with all the ammunition in the depot ia an poe ‘They (en threw away their arms and disporsed through the mountain byways in the direction of Monticello, but are so completely demoralized that I do not believe they will make a stand short of Tennemee. ‘The property captured on this side of ‘the river is of great value, amounting to eight pounders and two Parrot guns, with caissons filled with ammunition; about one hundred four-borse wagons, aud upwards of 1,200 horses and m:les, several boxes of arms which had never Deon opened, and from 00 to 1,000 muskets, mostly with flint locks, but in good order; subsistence stores enough to gorve the entire command for three days; also a large amount of hospital stores, As soon as T receive the report of the brigade com- manders I will furnish a detailed report of the battle. Our loss was thirty-nine killed and 127 wounded, Among the woundet were Cotone! McQvok, of the Ninth Ohio; commanding a brigade, and his Aid, Lieutevant Bart, of the Eighth United States infaatry. Tho loss of the rebels was Zollicoffer and 114 others killed ant buried, 116 wounded, and forty-five prisoners, not woundod, five of whom are surgeons, and Lieutenant Colonel Carter, of the Seventeenth Tennessee regiment. G AL THOMAS. D.C, BUELL, Brigadier General Comman:ing. ADDITIONAL PARTICULARS OF THE BATTLE Cincinnati, Jan, 22, 1862. The Lovisville Journ tl of yesterday says that twelve cannon were captured at Somerset, and thivks that tho rebel army cannot escape, as from seve to ten Union regiments were thrown across the Cumberland river ¢ ine some days sitive to intercept their retreat. Unless they divive into squads and find their way into Tennessee by unfrequented paths they must all be entrapp A lester to the Commercial of the 19th inst. General Zollicotfer is said to have been killed by Colonel Frye, of the Fourth Kentucky regiment. We have taken many prisoners. The loyal Tensesseeans fought like tigers, and have suffered much. The Ninth Ohio regiment is badly cut up. ‘The Tennesseeans took one battery at the point of the bayonet. A private do ch from Somerset says that Colonel eCvok, of the Ninth Ohio regiment, was wounded in the recent battle. Three balls struck his horse, a fourth passed through his overcoat and a fifth bit him. ‘The wound is painful but not dangerous. Lovrsvitie, Jan, 22, 1862. ‘The entire Union loss in the late battle is thirty-nine killed and one hundred and fifty wounded. General Thomas’ forces took fourteen cannon and 1,400 mutes and horses, Goneral Thomas is across the river, in pursuit of the rebols ‘The steamboat and eight barges used by the rebels in jheir retreat were burned by them. The remaining barges were used by the Union troops. ‘Tho prisoners say that George B. Crittenden was first in command, and General Zollicoffer second. General Crit- tenden fled to the woods, taking the wrong road, It i8 supposed he will be captured. ‘The fedoral forces actively engaged were the Tenth In. diana, Fourth Kentucky, Second Minnesota and Ninth Ohio regiments. They suffered respectively as named. They were reinforced after the firet and severest engage- ment by the Tenth and Twelfth Kentucky, First and se. cond Tennessee, Fourteenth, Thirty-first, Thirty-tifth and Thirty-sixth Ohio regiments, and Standart’s, Whitmore’s and Kioney’s batteries. The rebel forces were estimated at ten thousand, Green U. Clay, of Bourbon countys son of Brutus Clay, aid to General Schoepff, but with General Thomas in the engagemont, has just arrived, bringing an elegant silk rebel flag, inscribed ‘Presented to the Mountain Rangers, Captain F. A. Ashford, by Mre, W. D. Chardevoyne.”’ Colonel 8. 8. Fry, of the Fourth Kentucky, had bis horse shot from under him by one of Zollikoffer's aids, when he turned and shot General Zolli- coffer through the left breast. The first breaking of the rebel ranks was effected by Col. R. 8. MeCook, of the Ninth Ohio, Acting Brigadier, or- dering hia regiment to charge bayonets, which put the rebels to immediate flight. The last order issued found in the rebel camp was signed by Col, Cummins, senior in command, directing the rebels to disporse and save themselves the best wey thoy could crossod the Cumberland and is hunting the flying rebels through Wayne county. BRIGADIER GENERAL THOMAS. In the biographical sketch of Brigadier General George ‘H. Thomas in yesterday's Hemacp, it was stated that in June last he led bis brigade seross the Potomac first, &c. ‘This is an error. The Fourth brigade, commanded by Col. Dixon 8. Miles, unsupported by cavalry or artillery, were the first troops that crossed into Virginia at Williams- port. But the victory at Somerset is due to the skill and energy of General Thomas, who is conceded by army officers to be ome of the most accomplished officers in the regular army. It is unequivocally his triumph, and te him belongs the moed of praise. THE COMMANDER OF THE EIGHTEENTH UNITED STATES INFANTRY AT SOMER- SET. In the reports of the recent batte and brilliant victory atSomerset we find mention made of tho Eighteenth regiment of United States infantry. In our yesterday’s issue wo gave a list of the officers of that regiment; but as the Colonel had been appointed an Acting Brigadier General, the command devolved on the Lieutenant Co- lonel. The following is a sketch of that officer: — SKETCH OF LIEUT. COL. SHEPHERD, Lieutenant Colonel Oliver Lathrop Shepherd was born in Saratoga, and is a native and citizen of this State. He entered the Military Academy at West Point in the ycar 1836, and graduated July 1,1840, when he was appointed to the regular army as a Brevet Second Lieutenant of the Fourth infantry. In October of the same year he was appointed a Second Lieutenant of the Third infantry, which rank be held until November, 1845, when he was promoted to @ First Licutenantcy. He served in Florida during the Florida war with the Indians, and in Mexico during the Mexican campaign, and was brevetted Captain for gallant and merito- rious conduct in the batties of Contreras and Churu- buseo, his brevet bearing date August 20,1847. Ho was also brevetted Major for gallant and meritorious conduct in the battle of Chepultepec, dating from September 13, 1847. In December, 1847, he was appointed Captain of his regiment, which rank ho held at the breaking out of the present rebellion. During the interval he has held several important positions as commander of military posts and expeditions on the Indian frontier of New Mexico and Texas, and during the past year wascon nected with tho Mustering Board of Officers in this city, When authority was given for the organization of new regular rogiments he was appointed at the extra session of Congress the Lieuteuant Colonel of the Eighteenth United States infantry, which rank he now holds, his commission bearing date May 14, 1861. ZOLLICOFFER’S ARMY BEFORE THE BATTLE. {From the correspondence of Clucinnati Commercial.) Somenser, Jan. 16, 1862. From the different rumors flying about, now of one move, now of another, of enemy, it would seem that old Zolly was rather in 8 quandary—a brown study—or a bad fix, for which it would be advisable to extricate him- self soon, if mot sooner. The old gentieman begins to smell a large sized mouse: there is something wrong somewhere; there are too MANY men getting behind him which do not bel to his side of the house, an:i maybe he believes that if blue bellied Yankees cou! encow pass him round about with about three times as large a force an his own, that they would attack him. Now Mr. Zollicofler is too old a fox to get caught ina trap Le set bimseif. His position on the Our:heriand, at the White Oak creck, was anaturai fortitied place, and not comeatablefrom the north side of the river, on ae ne f-omsomerset to Monticello: but whother @ is going to take up & permanent position there, or whather he is already making a backward move through Monticello, is not detinitely known. ‘The report that Zollicofier was crossing the Big South Fork, and aiming to get = to Cumberland Gay, turns ont 0 be false. Though he might cross the Big South Fork, or any other river, aut go to Cumberland Gap or any other gap, and we would stir hand or foot to in- terrupt him, nor to go after him until be kad taken up a strong position and fortified it. Aman, John Smith, who was instrumental in captur- ing several prisoners sume time since in Huntsville, Scott county, East Tennessee, und are now coufined somewhere im Onio, has jvat returned from Scott county. Tue Union men are rising and forming companies. Five companies have already been formed. There are ninety-oné men in the largest company and the others vary from that down tothirty men. Ho was at a gathering last Saturday at 7D goa there are oo hundred Union youn They need gurs very much, though a groat many have their rides, Ammuaition is very scarce, aud it seems that some ammunition which was sent in for the benefit of the Union men, from these cainps, has been appropriated by those to whom or by whom it was sent, and they are making a sinall speculation by selling it. There are mean men in all countries and among all classes, but I trust this is not true. Some one thousand four hundred or one thousand five hundred troops passed througn Montgomery last week to Join Zollicoffer's force; they from Virginia, through Knoxville—and there swarms of soldiers at Knox- ville. The rebcis report that the soldiers in Virginia and are compelled by necessity to get away from there. They won't fare much better at Knoxville, $12 & hundred, gross, gar, common ‘brown, per pound coffee—nove to be had; domes: 0c. per yard; and everything else in pro- portion, Isn't this a pretty state of affairs? And all for thxt curred little sand lapping State of South Carolina, Put these prices are nothing to the gentry of the so-cailed Southern confederacy, for each one of them carries a dic about with him, aad whenever funds run low, why, ont comes the die, and funds are struck off. Nobody dares tw reject this mouey, for people who live in glass houses dou’t like to throw stones. J hava just seen a man who lives within a mile of Zolli- cotfer’s encampment; he js still fa his orizinal position, with about 10,000 men, a!l told, reMiorcements aud all, sick included—and there are a great many «= his men sick. The man who brought this nows i¢ a reliably man, and one who fed many of the Tennesseeans when they first came to Kentucky. NEWS FROM CENTRAL KENTUCKY, TS OF GENERAL BUELL. pondence of the Toledo Hlade.] Lovrsvitie, Jan. 16, 1862. The bridge across Green river being finished, and the ed energy and busy aspect of every deprrtment, together with movements that are fast developing them. selves, inticate a forward movement very #ou. You need not be surprised auy day to hear that General Buell MOVEME) [From the corr has taken the fleld in person. When he does, if he and General Halieck act in concert, the rebels will have a “mortality ust” along their'whole line from the Missis ward. The next month promises warm work in thin Stato, General Hindman’s troops have destroyed Cave City and ail the honses, barns, cattle not fit tor beef and everything else in the viciulty that might be useful to our troops as they advance, and are reported to be falling back on Cowling Groon. This looks as if the rebels ex. pect an immediate advance, and are not prepared to dis- pate it this side of their stronghold. A fow nights since there were indications of an attack by the rebela upon our advance at Green river. Every: thing was in readiness for them. General Huell went down on an extra train, and regiments were m »ved up to the front lively. It proved a futse alarm, but it showed the readiness and eagerness of our forces for a fight. Tho intelligence of the dispersion of Hamphrey Mar- sha I's rebel horde, in Eastern Kentucky, by the federais ander Col, Garfield, gives intense satisfaction here, and which can be hightened only by the capture of the fat Humphrey himself, by the cavalry sent in pursuit of his flying foilowers. ‘This affair clears the rebels from Rastern Kentucky, and a force will remain there to keep them out. THE REBEL we ala UNDER A. S- JOHNSTON. [From the correspondence of Cincinnati Times.) Mexvorveviiig, Jan. 16, 1962 Ten contrabands, all males, arrived hero last night from Bowling Green, They have been several days mak- ing their escape, and compose the part of a large party, all of which left at the same time. They made their way to our pickets last evening, and after undergeing exami. nation at the outposts were brought to headquarters. 1 had a conversation with one of them, an intelligent young mulatto, He says that for two or three weeks the Tebels have been sonding on ail the colored people they can find, and that a great number js now at Bowling Green. They take whole families, without respect to age or sox ‘The women are put into the hospitals as nurses and washerwomen. The stouter children are put to work in various ways, the best men taken as soldiers,and the rest employed as servants and laborers. Nearly all of these. slaves have been taken forcibly from their masters. Num. bers of them have been run South and sold for the bene- fit of the Southern eonfederacy. He says there are fully 8 thousand at Bowling Groeu awaiting an opportunity to escape, some to our lines, and others to their masters, On their way here, this en were frequently aided by Union men, some of whom had been robbed of their slaves. They all represent the distress and desolation at Rowling Green, and through the surrounding country, as frightful. faving pressed nearly all the negroes into the service, the rebels have now commenced on the white people. It wasn condition of Kentucky's adinission into the South. ern confederacy that she furnish twenty-five thousand troop. The provisional State government has called for that number, and getting no volunteers, has resorted.to impressment. Citizens are seized in their houses, on Che roads, or wherever found, and carried at the point of the bayonet to Bowling Green, where they are enrolied in the service of the Confederate govern ment. The Weather at the East. Porthan, Me., Jan. 22—11 P. M. It is snowing here to-night, The Journal says that Gen, Thomas, with a large force, ‘The North American, from Liverpool 9th, via London- derry 10th, is uot yet signalized Important Financial Measure Presented to Congress. One .Hundred Millions of Demand Treasury Notes to be Issued. Five Hundred Millions of Six Per Cent Bonds Authorized. Forty-Eight and a Half Million Dollars Required for the Naval Service. INTERESTING DEBATES IN CONGRESS: Speech of Mr. Stevens, of Pennsylvania, im Favor of Arming the Slaves. Remarks of Senator Davis, of Kentucky, in Regard to the Expulsion of Senator Bright, &4 &e., &e. _—— ‘Wasumncror, Jan. 22, 1862. THE TREASURY NOTE BILL PRESENTED TO CONGRESS, The following are the main points of the bill reported to- day from the Committee of Ways and Means providing for an issue of demand Treasury notes:— ‘The first section provides for the issue of one hundred millions of demand Treasury notes not bearing interest and making them a legal tender in payment for all debts, public and private, and applying the same to the afty millions previously authorized under the ay of the last session, making together one bun- dred and fifty millions of legal tender notes, convertible at the option of the holder into six per cent bonds of the Unfted States, and receivable the same as coin in any negotiations by the Treasury Department. ‘The second section provides for an issue of five hundred ‘millions of twenty years’ six per cent bends, which are tobe used in the payment of the floating debt of the ‘United States and for funding the Treasury notes autho- rized by the first section. ‘The Secretary of the Treasury examined the bill and approved its passage. The bill has been referred to the Committee of the Whole on the State of the Union, and made the special order for Tuesday next, at one o'clock. Annexed is given » more comprehensive synopsis of -the provisions of this important measure: ‘The bill provides that, for temporary purposes, the Secretary of the Treasury is authorized to issue, om the credit of the United States, one hundred millions of dol- yars of United States notes, not bearing interest, payable to bearer at the Treasury, or at the office of the Assistant Treasurer in the city of New York, at the pleasure of the United States, and of such denominations as be may @eom expedient, not less than five dollars each; and such notes, and all other United States notes, payable oa demand, not bearing intorest, heretofere authorized, shall be receivable for all debts and demands due to the United States, and for all salaries, debts and comands owing by the United States to individuale corporations and associations within the United States) and shal} also be awful moncy and a legal tender in pay- meant of a!l debts, public and private, within the United States, and any holder of said United States notes de. positing any eum not less than fifty dollars or ether than A multiple with the Treasurer of the United States o” either of the Assistant Treasurers, or either of the desig- hated depositories at Cincinnati} or Baltimore, shall re- ceive in exchange therefor duplicate certificates of de- porit, one of which may be transmitted to the Secretary of the Treasury, who shall thereupon issue to holder an equal amount in bonds of the States, coupon or registered, as may desired, bearing interest at the rate six per cent, and redeemable at the pleasure of the government after twenty years from date; or in sums not less than twenty-five dollars, for which, if requested, the Secretary, if he deem it expedient, may issue similar bends, the principal and interest of which may be ex- pressed in the currency of any foreign country, and payable there; and such United States notes shall be re- ceived the same as coin, at their par value, in payment for any bonds that may hereafter be negotiated by the ‘retary of the Treasury, and may be reissued, from time to time, as the exigencies of the public service may require. There shall be printed on the back of the United States notes which may be issuod under the provisions of this act the following words:— Tho within note isa legal ten- der in paymeng of all debts, public and private, and is ex- changeable for bonds of the United States, bearing six per cont interest.” ‘To enable the Secretary of the Trexsury to fund the Treasury notes and floating debt of the United States, he is authorized to issue, on the credit of the United States, coupon bonds, or registered bonds, to an amount not ex- ceeding five hundred millions of dollars, and redeem- able at the pleasure of the government after twenty years from date, and bearing interest at the rate or six per cent per annum, payable semi-annually, and the bonds herein authorized shail be of such denomination not less than fifty dollars, as may be determined upon by the Secretary of the Trea- sury,or in sums not less than twenty-five hundred dol- lars, for which, if requested, the Secretary, if he deems itexpedient, may issue similar bonds, the pripcipal and interest of which may be expressed in the currency of avy foreign country, and payable there. The Secretary is authorized to issue raid bonds at their par value to any creditor or creditors of the United States who may elect to receive them in satisfaction of their demanda; provided, that all such claims or demands shall have been first audited aud settled by the proper accounting officers of the Trea- sury;and the Secretary of the Treasury may also ex. change such bonds at any time for lawful money of the United States, or for any of the Treasury notes that have been or may hereafter be issued under any former act of Congress, or that may be issued under the provisions of this act. The United States notes and bonds authorized by this act,or that have been heretofore authorized, shall be signed by the Treasurer of the United States, or for the Treasurer by such persons as may be specifically ap- pointed by the Secretary of the Treasury for such pur- poue, and shall be countersigned by the Registrar of the Treasury or for the Registrar by such persons as tho Secretary of the Treasury may specially appoint for such purpose, and all the provisions of the act entitled “An act to authorize the issue of Treasury notes,” approved om the 23d y of December, 1867, 60 far as they can be applied to this act, and not inconsistent therewith, are revived and re- enacted, and the sum of $300,000 is appropriated to en- able the Secretary of the Treasury to carry this act into effect. The principal unfinished business now before the Com. mittee of Ways and Means is the tax and bank bills, ‘They hope to be able to report the tax and bank bills at the same time the Treasury Note bill is taken up for con sideration. ‘THE BUSINESS OF THE WAR DEPARTMEN, ‘The following 18 8 copy of the placard posted on the doors of the War Department:— Wark Darartwenr, Jan. It is ordered that the War Department will | ya (CONTINUED ON EIGHTH PAGE] it Xf