The New York Herald Newspaper, February 8, 1862, Page 4

4 NEW YORK HERALD, SATURDAY, FEBRUARY 8, 1802. a niin eslseetteetninen nna NEW YORK HERALD. JAMES GORDON BENNETT, EDITOR AND PROPRIETOR, OFFICE N. W. CORNER OP FULTON AND NASSAU STS, TERMS cash in advance. tent ty mait will beat fo the selon. “Mona but Dark alte sarvent tn New York DAILY BERALD. two cent ner conv. $7 per annum. WEEKLY Hi or §3 per anmusn ; the Ske cnn to commander ‘Great Britax | weeks. The Day Book farther announces that Selene sete tases ato . ne are eenis per copy, or $2 15 per anmum General Wise is lying very sick at Nag’s Head, Volume XXVII AMUSEMENTS THIS EVENING. NsBLO'S GARDEN, Broadway.—Jays Suors—Biace the command several months ago. however, that ‘it is not yet too late!’ ere vet ML Letters received in Augusta, Ga., from Savan- LNZNTER GARDEN, Broadway.—Narap Quarx—Manaiz0 | ngh on Tuesday, state that heavy firing was heard WALLACE’s THEATRE, No. ot Broadway.—Tows axp | 00 Monday in the direction of New river, on the Sn a SA Ag South Carolina side of the city, which lasted over can Cousin. : ’ four hours. Information reached Augusta the 5 BOWERY THRATRE, Bowery.—Yaxuge Jack— Tus Muaxy—ouanpy Macune. BOWERY THEATRE, Bowery.—Sticeyer’s [ATION AL iRous.—Afteravon and evening. © pis BARNUM’S AMERICAN MUSEUM, Broad from a rebel officer in Savannah that the batteries on New river had been attacked by some Union gunboats, one of which had been destroyed. The CoM Ser ee aaampotanme, Waaus, dc., at ail hours— | Charleston Mercury of the 4th says that the fring was off Red Bluff, and that the enemy had destroy- ed several houses in that vicinity. ‘The arrival of the aq-o#-wmp Sayamnshds this Port from Pert Royal yesterday may throw some light on this reported attack. The Savannah left on the 30th ult., and she reports that a formidable expedition, including all the light draught vessels, several gunboats and a large land force had sailed from Port Royal for the South on the 26th. ‘Their destination was not stated, but it is highly proba- ble that it is this portion of Commodore Dupont’s expedition which is operating at New river and BRYANTS’ MINSTRELS, Mechanics’ Hall, 472 Broad. way-Down i OLD ene - HOOLEY’S MINSTRELS, Stu; Brosdway.—Exmioran Soxas, Dances, 4a tt No 669 MELODEON CONCERT HALL, No. 539 Broad - Songs, Dances, Burixsques, Bc—itoutbar tx Tasuass, CANTERBURY MUSIC HALL, 585 . Dawoxs, Bunuxsques, &c.—Mazoux, tan test Own ges Roou Brune. i AMERICAN MUSIC HALL, 4B: 2 Bar as, PaNvouias, o=Pouvnatt Posen ne CRYSTAL pALeee CONCERT HALL, No. 45 Bowery.— h SONGS, DaNoRs, &C.—CossLeR's FROLIC. PARISTAN CABINET OF W. Open daily from 1A MUSE Me sO Broadway. — GATETTES CONCERT ROOM, 616 B -arekenee rAINMENTS, BALturs. Pawtouisens, Faneas —_— Red Blum, NOVELTY HALL, Soncs, Tima 616 Broadway.—Bonizsqoes General Beauregard arrived in Nashville on the New York, Saturday, F em cia = lay, February 6, 1663. ‘The War Department received information yes- that the rebels had evacuated Romney, The well matured plans of General McClellan | “ A Virginia, ‘and that Generel Lander now are being worked out in rapid succession by the | occupied it with our troops. This is another good able officers who command the different divisions steategio pont eninad. of the army and navy in the interior and on the It will be seen by our extracts from the Souta- coast. The capture of Fort Henry, on the Ten" een papers; thet’ she Tebokilontane: sve ‘devoting nessee river, at two o'clock on Thursday, by the much attention to the subject of new railroads. gunboats under command of Commodore Foote— | 2° Davis recommended to Congress in secret of which we publish an official account from the session the completion of the Mississippi and Ala- Commodore to the Navy Department to-day—is a ama road, so as to connect Selma, Alabama, with most important success. The fort was defended Mexitien, fn Miasleatpnt; “and “Congress proposed gallantly by the commandant, General Lio va to appropriate $150,000 for that purpose. The Tilghman, and his forces. The fort mounted | NeW Orleans Picayune also notices the fact that twenty guns and seventeen mortars. Genera, the road from Mobile to New Orleans, via Jackson Tilghman and his staff, together with one and Meridien, has been complete, and remarks that colonel, two captains and sixty men, were it is most opportane, as “the Yankees’’ have pos. taken prisoners. The battle was essentially session of the Sound, and may destroy the coast & naval one, the troops of Generals Mc- line at any moment. A million of dollars, it is Clernand and Grant not having been called upon said, has been estimated by Mr. Davis to construct to participate. The gunboats Essex, Carondelet, railroad between Danville, Va., and Greensboro’, Cincinnati, St. Louis, Taylor and Lexington, did N.C., a8 matter of military necessity. the whole business. After a fight of an hour and We are informed that a letter has been received @ quarter the fort surrendered unconditionally, and at Albany by @ Senator from Thurlow Weed, Commodore Foote handed it over to General Grant | “ted in Paris, January 21, stating that the Em- immediately upon the arrival of that officer—half | P°T°* Napoleon would announce to the Corps an hour after the flag was struck. The Essex was Tevislatif, on the 27th ult., his intention to” in- the only gunboat seriously injured, a shot having terfere with the affairs of this country. While this gone through her boilers, causing death to many | itformation is not very definite, yet we may find of her crew by scalding. The Cincinnati received | S™¢ Possible ground for the rumor in @ fact thirty-one shots, wounding eight men ond killing | Whieh we give to-day from rebel sources at Nor- one. General Halleck announces lotory in a folk. It appears that « gentleman claiming to be brief and graphic despatch, in these words:— ® French citizen, resident in Wilmington, N.C., Fort Henry is ours! The flag of the Union is | has just arrived at Norfolk from Fortress Monroe, Te-established on the soil of Tenneasee. It will | under a flag of truce. This person, M. De Behan, mec ee aS the report says, ‘‘was arrested last summer at the ei ee ‘ajor General HALLECK. North and confined in Fort Lafayette. Through lespatch from Cairo yesterday announces that | tne interference of the French Minister he was re- et age PG NN toe te leased, but he was refused permission to return to the Memphis and Ohio Railroad. If this be trae Wilmington. He then applied for a passport to go we have got hold of & most important point, by to Europe, and obtained it; but Mr. Seward en- which Columbus is completely isolated from Mem- dorsed on it, ‘It is understoed M. De Behan is not phis, and Bowling Green is cut off from the same to enter ane any of the insurrectionary States.’ Dem, 2s See Meno ts a taltond fodicoctly oom He went to Paris and had an interview with the necting Bowling Green with Memphis by way of | poperor Napoleon, and showed him Mr. Sew- Nashville, but if our ficet can get up to Florence ard’s endorsement on his passport. The Emperor they may be able to destroy the last connection promptly replied that he should be allowed to re- between Memphis and all the leading points east turn to his place of business. The French Minister of it. The map of the vicinity of the late victory, of Foreign Affairs prepared the necessary papers which we give to-day, will show the importance of | ror the French Minister at Washington, and Mr. the position our army has attained by the capture |p. papian returned to the (n°cd States, He of Fort Henry. If we may judge from the state- | ated on Mr. Seward for a passport to enable him ments of the rebel journals, Fort Henry was con- | to return to Wilmington, but he was refused it. sidered almost impregnable. The Memphis Appeal On the next day the French Minister called on Mr. of the 3ist ult. says that the troops in that fort Seward, exitibited some documents, and asked for aniin Fort Donnelson, on the Cumberland river, a passport for Mr. De Babian to return to Wil- were adequate to resist any attack from the . mington, and Mr. Seward very cheerfall; ited enemy. Our gallant river sailors, however, have it. ils af — bp <iplrvnigsa eam This story may probably have some connection By our latest reports from Paducah, it appears with Mr. Weed’s statement. that Gen. Grant and Gen. Smith were pursuing the The papers to hand from the East Indies can- flying rebels, to the amount of four or five thou- vass the prospect of a war between England and sand, on each side of the river, and it was reported | 1, United States with great anxiety, more par- St ee ticularly with reference to the influence of such a 6 ag duamiahho~ sec gna amalbameaging contest on the infant cotton trade of that country. defend it, not having much sympathy with the The Bombay Times of India of the 27th of Decem- cause of rebellion. Several gunboats left Paducah ber ss; Plas siains iat ine uk alisha lin, yesterday for the Cumberland and Tennesse rivers, Abeten tee Cnesiene af the Sectiad Cait. ee ee eee sioners reached us by telegraph via Galle on Mon- day. It is thus evident that the blow struck ot day last (the 234), and, as might have been ex. Fort Henry is to be vigorously followed up by our pected, has paralyzed the Bombay cotton mar- generals. The details which we give of this bril- ket. We are looking with great anxiety for the ee, ee eee Steen eee advices of the next mail or two. Should war ero age ane ainda break out between the countries, the American Not only has this battle resulted ina victory in crop Hill no doube be Wherated elmoet immed ‘Tennessee, but it has achieved a second victory | _ ve ik di al ald tind pi $f for the country in Congress, for the bill appropri- aia paler ea ah aaa Suoenic the ’ ten millions of dollars, to build iron. on; samen, abe tee. sonra woe ianapabbrat 23 pthginngs acter termtted a : 4 Pa large, and few houses in the place probably are Flouse, was immediately passed in the Senate ” yesterday apon the arrival of the news from Ten- seereeet “len rerereerrs saya v0 ecg pratt i the bil’ | ‘The news of the recent successes of the Union land on We grou gunboats wore as yet | 414 naval forces in Tennessee was snnounced in only an experiment in England and France, as both hk jouses yesterday, and received wil well as in this country, and that ten millions was incatar ‘oe ith ap- too mach to pay for an experiment; but on the news of the victory won by our iron-clad gon- boata at Fort Henry, all objections were settled, aud the bill, which should have been passed two mo» ths ago, at once became a law. y the arrival of the United States steamer at Fortress Monroe from Barnside’s THE SITUATION. lause. In the Senate, the bill appropriating ten mil- lions of dollars for the construction of twenty iron- clad gunboats was passed. The Treasury Note bill was received from the House, and referred to the Finance Committee. The bill authorizing an additional issue of teu million dollars of demand notes was passed. ‘The Civil Appropriation bill 4 « flee Tharsday, we learn that the expedition woa passed. A joint resolution for the payment of we w inside Hatteras Inlet the day before. the awards of the Western War Claims Commission An k on Roanoke Island was contemplated | was adopted. Resolutions of the Legislature of on the id inst., where General Wise commands | Rhode Island, urging the propriety of permanently fire vol forces of over 6,000 men; but later locating the Nis cen oie ten, ers y a de were presented. The report of the Naval , up to the 5th inst., informs us that | Committee, with reference to Mr. Mor. ‘ tponed “hursday or yesterday. | oun’, purchase of vessels for the navy, an Bom g hews fiom that quarter may there- | censuriag the Secretary of the Navy for bis action fore be expected in a day or two. The Norfolk Day Book of the 6th says that the steamer Ar row, which arrived at Norfolk from Roanoke Island, with dates of Wednescay morning, reports that Commodore W. F. Lynch, with a fleet of rebel gunboats, is awaiting the arrival of the Union vessels, but that none of his boats have yy ‘Take, | ventured into Pamlico Sound for the past two and says that it would have been well for the country (the South) if he had been appointed to It hopes, same day by a person who stated that he heard Prat Skating—C! Jorsey City, and John Gago, of Nyack. New York, and Jobn Engler in the matter, was discussed. Mr. Wilson moved, a3 8 substitute for the report, the declaration “that the employment of an agent to make pur- chases for the government, whose compensation depends upon commissions on purchases, is un- wise, inexpedient and never to be resorted to, except in cases of imperious necessity.” Pending this motion, the subject was laid over till Monday. A joint resolution giving the thanks ofCongress to Captain Dupont and his officers and seamen for the victory at Port Royal, was adopted. The Ju- diciary Committee reported that Mr, Starke, the Senator from Oregon, whose loyalty has been questioned, was entitled to take the constitutional oath. A minority report was, however, presented, and the papers were ordered to be printed. In the House of Representatives, the Treasury Note bill was by consent_amended so as to allow the Treasury Department, at its option, to pay the interest on government bonds in coin or paper. The Committee on Contracts reported in favor of authorizing the Secretary of War to make an equi- table arrangement with the Hannibal and St. Joseph and Pacific Railroad Companies for the transportation of troops. The report of the Com- mittee on Government Contracts was taken up and discussed. At the conclusion of the debate, Mr. Holman, of Indiana, offered a resolution, censuring Mr. Cameron, the late Secretary of War, and Mr. Welles, the present Secretary of the Navy, for their action in employing Alexander Cummings and George D. Morgan, but without coming to a vote the subject was postponed till Friday next. The report of the Conference Committee on the bil’ providing for the completion of the defences of Washington, and the employment of Home Guards in Missouri and Maryland, was agreed to. Several private bills were passed. Both houses adjourned till Monday. MISCELLANEOUS NEWS. The negotiation between the government and the Merchant's Exchange Company has been brought to a succeasful issue. The building is hired for a Custom House on a three years’ lease, at $65,000 per annum, with the privilege of two renewals, each for the same term, at same rent, and of the purchase at any time during either term for $1,000,000. The government are to take possession on the Ist of May, when the Treasury will be re- moved to the present Custom House. The cor- respondenue on the subject between Mr. Secretary Chase and Mr. Cisco, the Sub-Treasurer at this port, will be given in to-morrow's Hgrap. The glorious Stars and Stripes wave now in every State except Alabama, Arkansas and Texas. Captain Gregg, of brig P. R. Curtis, which ar- rived at this port on the 7th inst., from Matanzas, reports that on the 28th ult., off the Double Headed Shot Keys, was chased by an armed bark. When he hoisted an American flag she showed Mexican colors, and bore away under casy sail. The United States gunboat Quaker City arrived at St. Thomas about the 20th ult. from a cruise. The gunboat Iroquois sailed from that port on the 16th ult. In the Senate at Albany yesterday, favorable reports were made on the bills amending the laws governing the incorporation of life and health in- surance companies, and organizing the Asylum for Insane Convicts. Bills were noticed for amending the Excise law of 1857; making additional regula- tions for punishing murder and arson; amending the Revised Statutes in relation to banking and brokerage institutions, and relative to actions brought by receivers of insolvent insurance com- panies. Among the bills introduced was one making provision for examinations of the ac- counts of the Canal Department Treasurer and the securities of the Bank Department, and one amending the act altering the map of this city, In the Assembly a large number of petitions was presented. Among them was one from this city, praying for legislation in regard to the Hackley street cleaning contract, and other alleged frauds: The bill providing for the public defence was re- ported upon favorably. Several bills affecting the interests of the people of this city were introduced, among which were those for railroads in Spring street and in Broadway, amending the city charter, relative to taking private property for public uses, relative to the various city courts, regulating the fees of the Register of Deeds, and increasing the number of Judges of the Common Pleas Court. Bills were also introduced to restrict the dividends of fire in- surance companies, providing for freehold exemp- tions, and for various other purposes. The bills appropriating the proceeds of State tax to the sup- port of schools, and amending the act regulating the parchase of @ites for lighthouses and fortifica- tions, were passed. Bills were noticed to repeal the South and West streets railroad grants of 1860, to divide the Twelfth ward, providing further regu- lations for pawnbroking in this city, and te punish mock auctioneers. Monday evening. he Assembly will be in session to-day. The Senate adjourned over till We have received a copy of a letter sent by Mayor Opdyke to Captain Ringgold, of the frigate Sabine, conveying resolutions paased by the Com- mon Council of this city, complimenting that gen- tleman for his bravery in rescuing four hundred marines from the transport Governor, of Charles- ton, some time since. The response of the gallant commander to the Mayor is also in our possession. A skating match is to come off on the first fine day after Monday next, between the following competitors, the prizes being handsvme medals, to be given by Messrs. Black and Falkiand:— has. June, of Piccmont; John Engler, o ‘Stating—Chas. Juno, of iiermont; P. Griffin, of of Jersey City. The ladies’ skating ‘watch is to take piace this afternoon, weather permitting. There were only two jury trials yesterday in the General Sessions, resclting in the conviction of the accused. the prosecution. Thomas Henry was convicted of | receiving @ valuable gold watch, knowing it to have been stolen by Sarah Campbell. She ab- stracted it from the pocket of John W. Whelan on District Attorney Hail conducted Another Unten Victory in the West—Our Circle of Fire Clesiag Round the Re- bellion. We congratulate our readers upon anotheT important Union victory in the West. Our splendid Western soldiers, under Generals Grant and McClernand, who, in their firat en- counter with the rebels at Belmont, exhibited the fighting qualities of Napoleon’s Old Guard, have marohed into the occupation of the valu. able strategic defences of Fort Henry, on the Tennessee river. To show the importance of this position, we refer the reader to the illus- trative maps on the first page of this paper. It appears that the work of reducing Fort Henry was accomplished by the gunboats of Flag Officer Foote before our land forces came up, but not without a serious disaster. The capa- bilities, however, of those iron-clad gunboats for the heavy work for which they were intended has been proved, and from this experiment they can now be moved down against the rebel batteries of Columbus, with that invaluable knowledge which makes veterans of young soldiers, who have sustained the brunt of their first hot, experimental battle. Our troops occupy a good position at Fort Henry from which to advance westward upon Columbus, or eastward upon Bowling Green, in the rear—the two strongholds of the rebels in Western Kentucky, aud upon the maintenance of which depends the rebel cause, not only in Kentucky and Tennessee, but along the whole line of the Mississippi down to New Orleans. This is why Beauregard has been transferred from Manassas to Columbus or Bowling Green, for the rebels have discovered that their immediate danger is more prossing on the line of the Mississippi than on the line of the Potomac. We suppose that the next thing in order by our troops at Fort Hen- ry will be the reduction of the supporting Fort Donelson, on the Cumberland river, at Dover, some ten miles across the hills at this point from the Tennessee; and, next, that those rail- roads «will be occupied which connect the re- bels on the Mississippi with the rebels in Vir- ginia; and that then, as all that section of Ken- tucky lying between the Cumberland and the the 17th of December. The prisoner was remand- ed for sentence. Alexander Duflon, who, together with confederates, succeeded in circulating a nam- ber of counterfeit $6 bills on the Blue Hill Bank of Rochester on the night of the 18th of Jannary, was tried and convicted of forgery in the second degree, and Recorder Hoffman sentenced him to imprisonment in the State prison for five years and twe months. Mrs. Myra Clark Gaines, widow of Gen. left Baltimore on the 5th inst. for Fortreas Monroe, where she expects to be sent to the Southern lines by a flag of trace. The North German Lloy@’s stoamehip Hansa, Capt. H. J. Von Santen, did not leave Southamp- ton before half-past nine A. M. on Friday, January 2A, and not on the 22d or 23d, aa erroneously stated in the daily papers. She arrived here on the night of the 5th at nine P. M., making the passage in twelve days and nine hours, There was more tone in tho cotton market yestorday ‘and prices closed firmer. The sales footed ap about 600 bales, mostly to spinnors, closing within the rangs of 30c. ‘a Slo. for middling uplands. The four market was less buoyant and active for common and medium grades of State and Western brands, while the higher grades wors rather firmer. Good to cl lots of wheat wore firm gud in good demand, with moderate sales. Corn was easier, but more active, and closed al 65340. 4 660. for Wostern mixed, in store and delivered. Tork was firm v4 in fair demand, with sales of now moss at $12 47 city ptime mens nt $19.95 9 $13.60, old moss at | $12 12% a $12 26, aod $9 60 for new prime. Supare were more active, and closed for some grates (0. better, the sn'es embraced about 1,200 bhds. and 121 boxes, Coffee wan in some hotter request, and sales of f00 lags of Rio ware made at 1% Froights wore steady, with rat nore o oring, While engagements wore Wo a fair extow Mississippi is attached to the department of General Halleck, there will be, under his di- rection, a combined movement of all his dis- posable forces from Fort Henry, Mayfield, Pa- ducab, Smithland and Cairo, including Com- modore Porter’s gunboats, upon Columbus, in front, flank and rear, and that it will not be long before we shall have the pleasure of an- nouncing a crushing defeat of the rebels in that quarter. Meantime, in accordance with the instructions of Gen. McClellan, the army of Gen. Buell is steadily encircling the great rebel camp at Bowling Green. This is a etrong defensive po- sition, the village being surrounded by a circle of abrupt. and commanding hills, which are occupied by rebel forts and battories. We are assured, however, that the programme of Gene- ral Buell for the capture of Bowling Green is one which cannot fail. Before the expiration of the present month, therefore, with any im- provement upon the late blockading snows, thaws and rains, we expect to hear the glorious news of the expulsion of the rebels from both Columbus and Bowling Green. A rebel army, including both places, of over a hundred and twenty thousand men, will thus be cui up and dispersed, Kentucky and Tennessee will be in- stantly liberated, and the sustaining spirit of this rebellion will be completely broken. In the interval, however, we do not imagine that Price and his guerrillas will be left on the soil of Missouri; or that the Burnside ‘expedi- tion will be confined to reconnoissances of the inland waters of North Carolina; or that the powerful fleet of Dupont and the co-operating land forces of Sherman will be idle; or that our land and naval forces in Florida and on Ship Island, within convenient distance of New Orleans and Mobile, will remain resting upon their oars; or that Gen. Wool will be limited to the daily routine of Fortress Monroe; or that our great Army of the Potomac will be continued much longer in the monotonous ser- vice of anarmy of observation. On the con- trary, we expect that this whole immense circle of fleets and armies will very soon open in a circle of fire against this beleaguered rebellioa, the echoes of which will be heard from the Mississippi overland to the Potomac, and from the Potomac to the Carolinas, and thence along the seaboard and Gulf coast to the swamps of Louisiana. Our land and naval forces are at length so admirably distributed and so thoroughly equipped and provided for active work, and are so well drilled and so ably commanded by such approved officers as McClellan, Buell, Halleck, Wool, Burnside, Sherman, Dupont, Goldsbo- rough, Foote, Porter, and others, and the rebel- lion is so manifestly in the last throes of exbaus- tion, that our faith is stronger than ever, aud strengthens every day, in the conviction that before England and France can agree to inter- fere there will be an end of Jeff. Davis and his spurious Southern confederacy. In this view we are powerfully supported by the patriotic action of Congress, in its seasonable legislation to relieve the financial embarrassments of the government and the country. The cause of the Union, in the overwhelming majerity it has secured in the House of Repre- sentatives against semi-secessionists and dis- union abolitionists, has done much to inspire the confidence of our loyal States in the speedy suppression of this rebellion, through the har- monious co-operation of the President and his Cabinet and Congress, the army and the great substantial mass of our loyal people: The good work goes bravely on. We have the rebels hemmed in by an impassable wall of dteel; we have our abolition disorganizers upon the hip; the sound Union policy of “ Honest Abe Lincoln” is predominant, and the Union will surely be saved, and our revolted States will be reclaimed, with their constitutional rights; and all this will be done before the end of the month. Union, harmony and ac- tivity will do the work; for the men and the means are in the fleld. Tae State Suoppy Lxvustication Commrr- vex.—The sessions of the State Shoddy Com- mittee held in this city have at length closed, and we are informed that the result of the in- veatigations has been a great deal of very curi- ous evidence about the transactions in shoddy last spring, and that several new parties are implicated by the testimony. This is decidedly cneonraging. Tt only remains now for the | committee to arrange the evidence and report to the Legislature ax soon as possible. Not to mention the satisfaction which the report will give to the public at large, Speaker Raymond | really needs its information to assist bim in ar- anging his new lobby. Let us have the re The Treasury Note Bilt Passed. The passage of the Treasury Note bill by such a large majority in the House of Repre- sentatives is a triumph of the Union sentiment: The secessionists have been long since used up, and the abolitionists who opposed the bill are now in the same predicament. Old parties are broken up, and new political combinations are formed. The new parties are the Union party and the disunion. That is the issue. The dis- unionists chiefly consist of the abolitionist fac- tion. They have been overwhelmingly defeated by a vote of 93 to 59. We regret to find from the proceedings of yesterday that the insertion of the words “ pay- ment of the interest on the bonds semi-annually in coin” in the bill occurred by inadvertence, and was accordingly stricken out. Now this ought by all means to have been retained, and we trust that the Senate will amend the bill by its insertion. This will be absolutely necessary to prevent a depreciation both of the notes and bonds. Payment of the interest in specie is the polar star by which Congress ought tosteer, in order to avoid financial shipwreck. It will be false economy for the government and for the country to pay in any other kind of money. It will cost more in the end than specie, while the national credit will be seriously impaired. Provision for the payment of the interest in specie is far more important than provision for the payment of the principal in any kind of mohey. Aslong as the interest is paid in specie nobody will want the principal paid at all. It will be a safe investment, assuring high interest punctually paid in coin or ita equivalent, and all who desire to invest their money in good securities will be glad to get these bonds. But if the interest be not paid in specie the case is changed. The national credit will be materially impaired, and we fear it will be impoasible to prevent depreciation. The clause making the notes a legal tender is not sufficient, without specie payment of the interest, to prevent depreciation. On the con. trary, that clause renders the payment of the interest in coin the more necessary, because otherwise the obligations of contracts would be impaired, and debts contracted with the under- standing that gold should be paid if demanded would be reduced to the injury of the creditor and the unfair gain of the debtor. The bill takes a retrospective action, and makes the notes a legal tender for debts incurred in the past as well as those to be contracted in the future. The Senate will commit a great blun- der if it do not insert in the bill the words, “payment of the interest on the bonds semi- annually in coin.” It is the certain payment of the interest in coin upon the stocks of the English government that causes them to be so much sought after as an investment. During the wars with Napoleon the interest was not so paid, and hence their depreciation. But on the return to the specie payment of the interest those stocks went up, and now nothing depreciates them but the fear of a war in which England might be so pressed as not to be able to pay the interest in gold. Now the United States government is not so pressed, and such an im- pression ought not to be allowed to.go abroad, The interest ought to be paid in silver and gold. This bill is one of a series of connected moa- sures, comprising the: Loan bill, the Banking bill, the Bankrupt bill and the Tax bill—five in all. Of these the most important and the most necessary to be: brought forward immedi- ately,in order to inspire confidence in the notes and bonds, is the Tax bill, which is the basis of the whole superstructure. With a com- prehensive tax measure, reaching the whole property of the country, amounting to sixteen thousand millions, and raising therefrom $150,000,000, and with the payment of the in- terest on the bonds. in coin, there need be no fear of the depreciation of the demend notes, They will be as good as gold to the holder, and the fact of thus keeping them at par will be the best refutation of the disparaging and insulting comments of the British press upon the present and future financial condition of the country. Tae Asourrion War on Genera McCret- LaN.—The abolition organs have been taking a remarkably deep interest in the reconstruction of the English War Department lately. They have been circulating a report that the Duke of Cambridge is about to resign, and that it has beeu determined to abolish the post of Com- mander-in-Chief and vest it in the Secretary of War. Simultaneously with this appeared a statement in the Washington correspondence of one of them that the President and Mr. Stanton had determined upon assuming the complete direction of the affairs of the army, and con- fining General McOlelian to the command of the Army of the Potomac. In yesterday's Tribune we again-find a paragraph which was. followed up by an attack on the General-in-Chief in the Post, The Tribune says:— Guvenat. M Curttan’s Naw Rayx.—The better opinion dicate last night Potoma> to ri Hallock in Missouri, on @ level with whom the new ar- rangement places him. It is understood that he has con sulted with several of his generals respecting the course proper for him to pursue. Now this is the meanest kind of journalism. Failing to directly affect General McClellan's position with the President and the country, it seeks to curtail his functions by raising an agi. tation in favor of a change in our prevent army organization, which many might be disposed to favor, under the mistaken notion that it was based on the results of English military. expe- rience. We need not say that not only is there no truth in the assertion that any limitation of General McCletlan’s present power is con- templated, but that in the manner described it would be impracticable. Neither the President nor the Secretary of War being military men, it would be utterly beyond their competency to conduot important strategic movements, such asare now impending. To do so they would be obliged to callin the aid of some accom- plished military tactician, like General McClel- Jan or General Halleck, who would thus virtu- ally be Commander-in-Chief. There is no ground of expediency, therefore, for such a change ; and it is the less likely to be tolerated by the country, seeing the happy results which are daily developing themselves from the mas- terly strategic combinations of the present head of the army. Nothing can be meaner or more contemptible than this covert mode of striking at the man upon whom, under God, the safety of this re- public now depends. it is worthy of the fac- tion which bas Leen throwing every obstacle in the way of the reconstruction of the public finances in Congress, in order to consummate | ita wicked projects of disunion and dismember Genera Buell in Keatucky and General | ment Tar Rowormy Srawsn Dersar w Mexioo.— By way of San Frsacisco we have @ report that the Spanis: army had suffered a defeat at the National Bridge, over the Rio Antigua, thirty miles above Vera Cruz. The battle which took place is said to have lasted five hours, and was doubtless hotly disputed. The position was one very much exposed, aud, if the Mexicans posted themselves, as we have reason to believe, in the surrounding hills, the @dds from the first must have been greatly against the Spaniards. If the report be true, the Mexicans will have gained considerable prestige from the circum- stance of their winning the first battle ever their invaders, and the hopelessness of the Allies attempting to subdue the country, or ot Spain re-establishing her old authority over #, will become more apparent. It would be pre- mature, however, to speculate very far upon its character and results at the present moment, when our information is so vague and meagre; but that Spain will have # hard time in Mexico we feel convinced, and that she will be finally compelled to abandon it with considerable losa to herself seoms inevitable. Avorner Casvs Beiti—No sooner fs the Mason and Slidell difficulty concluded with England than we have on our hands a similar affair with France. Louis Napoleon complains that our travelling Americans, be they shoe- makers, tailors, shoddy contractors or codfish aristocrats, walk into the Tuileries with as little ceremony as Captain Wilkes walked into the Trent. His Imperial Majesty, who, by the by, was not quite so particular about his repub- lican visiters when he first took up his residence at the Elysee Bourbon, is exceedingly indig- nant, and M. Thouvenel has had a correspond. ence with Mr. Dayton on the subject, which will be laid before the public ina fow days. It is not improbable that these fresh aggressions of the Yankees may lead, as in the case of the Trent, to joint remonstrances from the other European courts. Mr. Seward will have in connection with this affair another splendid field for the exercise of his ebilities. Although diplomatically not very successful as a people on questions of international law, we cam pride ourselves on being some pumpkins in contro versies relating to knee breeches and cocked hats. Sap Errgcrs or tus War Uron . Nawsra- pers.i—We have it upon the highest authority, no less than that of the Tribune itself, that that journal has been losing money ever since the beginning of the war. We now learn that the owners, some thirty of them, all with long, lank hair and shaggy beards, except Greeley, have held a meeting to take into consideration the propriety of suspending publication till the war is over, as the rapid rate at which they are losing their capital just now will soon clear them out, whereas by suspending they could save something out of the wreck to start afresh with when peace is restored. Now instead of this we would strongly recommend an amalga- mation of the Tribune and the Independent— that the Tribune swallow up the Independent,.ou the Independent the Tribune—it makes no matter which. By this arrangement both will probably disappear some fine morning before the end of the war, and never be heard of again. Tax Orcanmation or THE New Lonpr.— How is Speaker Raymond getting on with his new lobby organization? Is his committee al- most ready to report? Come, push along a little faster, Master Raymond. You must have your new lobby done before the Broadway Railroad bill comes up; for every lobbyist wants a finger in that pie. Hurry up your cakes, please; for, between indictments andino work, the lobby is getting anxious. PORT ROYAL. loop-of-War Savannah— Salling of a Large Naval and Military Expedition from Port Royal, &c., &o. ‘The United States sloop-of-war Savannah, Commander Jobn S. Missroon, arrived at this port last night from Port Royal, 3. C., making the passage in eight days. The Savannah went into commission in Juno last, and since has becn engaged in arduous blockade. Her crew are suffering from its effects, on which account she hag been ordered home. The holding of Tybee Island by the seamen of the Savannah and gunboats in the Savannah river, until relieved by the New York Volunteers, was @ signal service. ‘Tho Savanah brings no news of importance from Port Royal except the sailing of the oxpedition for the South on the 26th ult., including all tho light draught steamers, several gunboats and several thousand troops. Everything remained quiet at Port Royal. ‘The following is @ list of officers of the Savannah: — Commander—Jobn 8. Missroon. Lieutenant—A, W. Johnson. Frere Winchester, — Gunner—N. B. Willets. Car r—Amos Chick. Sailmaker—R. L. Tatom. Reported Riot at Norfolk—Developement of the Union Sentiment, Pai.anwcenta, Fob. 7, 1862. The Inquirer of this city has a despatch saying that a riot occurred at Norfolk on Tuesday night, that it was supposed that martial law would be prociaimed, and that during the disturbance cheers for the Uniom wore given. Puruapeuenta, Fob. 7, 1862. ‘The despatch about the reported riot at Norfolk in in’ correct. It was stated that the riot occurred at Rich: mond, not at Norfolk. Brooxtrw Acapumy or Music.—The “ Traviata’ will be given at this establishment to-night. Wo trust that the direetors will muster in force upon the occasion. Sa g00d an opportunity of collecting the moral sentiment of Brooklyn may not present itself agaio. On Monday the «“ Somnambula’”’ will be given at the NewYork Academy with Miss Kellogg (frat time) in the principal role. Thi will be positively the last night of the preseat short season. New Associate Pastor oF r1 Briox Oaveca—A mooting of the congregation, pastor, eldera and deacons of the brick church, corner of Thirty-soventh street and Fifth avenue, was held in the church on Thursday oven. ing, for the purpose of electing an associate pastor in the place of the Rev. Wm. Hoge, who, it will be remembered; resigned some time ago, in consequence of his sympathy with the South, Tho meeting was quite full, and the venerable Dr. Gardiner Spring, together with most of the prominent members of the congregation, was present. ‘After the appointment of a moderator and ry, the minutes of @ previous a of the trustees were road, commending the Rev Dr. Shedd, of Vermont, as a suitable candidate for the choice of the cow ce Some discus ‘sion followed as to the regularity of this Proveediag, and one of the members quoted froin the Book of Discip'ine to jo of the churck should bo lod @ t convinced of the soundness of Dr. Shedd on Presbyterian doctrines, and asked fo" information on the subject. Dr. Spring explained atsome length that he was fully satis. fled that Dr. Shedd was «\rongly attached to Presbyterian inoiples, and ‘also that the usual course had been fol- owed in calling for the present election. After eome fur- thor conversation on the subject, great harmony prevail- ing all the time, a viva voce vote was had, and Dr. William Shedd was unanimously chosen, Dr. Shedd is at present ‘a professor in the Theological Seminary at Andover, Vor. mont, St THomas. Banwvoa—Bar k Bilea Barss—Capt Hill, Me Newhouse,