The Sun.
London, England, 1864-10-17 00:00:00

Sheridan was making preparations to force the
remnant of Early's army from Brown's Gap in the
Blue Ridge. Early's position is represented to be a
very strong one, and he doubtless intends to hold
it as a protection to Gordonsville and Charlottes-
ville, as well as Lynchburg; for while holding this
point, if Sheridan advances upon Lynchburg Early
threates his rear and supplies. There can be little
doubt, however, of Sheridan's success, for Early's
army has lost heart, and Brown's Gap will only
prove to be another Fisher's Hill.
The New York Herald, in an editorial on Sheri-
dan's campaign in the Shenandoah Valley, eays :
" That struggle is now one of the very deepest
interest. If we suppose the Virginia Central Road
to be in running order, then with that road, with
the Lynchburg and Petersburg Road, and the
Kanawha Canal, Lee has three lines of supply, and
all of these must be broken up before he
can be forced to fight on Grant's own terms
the great final battle for life or death. None
of these lines is safe. Lee's greatest appre-
hension has lately been for the Southeide Road,
and the events of the past few days have shown that
he had risked even the safety of Richmond in order
to mass his troops where they could be used for the
defence of that line. But Sheridan's defeat of Early
and the rapid race up the valley, brought an unex-
pected danger to the Central Road, and alarmed
Lee lest that line also should be lost. His fens for
its safety are apparent in the fact that, scarce as
men are, and necessary as it is that he should hold
the Southside Road, he has yet sent several thou-
sand men to reinforce the body that he depended
upon to hold the valley and keep open the commu-
Inications by way of Charlottesville and Gordonsville.
The column that lately swept down the valley and
threatened Washington is now posted solely with a
view to cover the Central Railroad and keep it open.
It is in a strong position at Brown's Gap, and if
Sheridan leaves it there and moves on he leaves a
force in his rear that can cut his communications.
If he attempts to carry the position he must
fight a bloody battle at a great disadvantage.
Grant and Sheridan will find a way to get over this
difficulty, as both have got over others. Sheridan is
perhaps nearer to Charlottesville than he supposes,
as Grant is much nearer to the Southside Road
than he would like him to be. Lee already sees
how precarious is his bold on the Southside Road.
With Grant so near to that road as he now is, Lee.
dare not keep a large force at Burkesville Junction,
for fear that it would be cut off—and thus Grant
can, by a single march, and perhaps a small fight,
close up at once the Southside and Daville Roads.
Leo would thus be left with only one—therefore
he will take care of that, and we shall have yet no
doubt some pretty large operations before Sheridan
destroys the road at Gordonsville and Charlottesville
—but we cannot doubt that he will do it."

The excitement and war preparations in Mis-
souri, consequent on the Confederate invasion,
continue. It was stated in St. Louis, on the 3d,

that Gen. Rosecranz would immediatLly take the
field in person. There is still no reliable intellis
gence from Gen. Ewing, all lines of communication
between him and the eastern part of the State being
cut by the guerillas. A portion, at least, of these
taking part in this invasion seem to be destitute of
all common humanity, and to be intent on carrying
on wholesale assassifiation instead of warfare.
Major Walker and a number of others engaged in
the defence of Potosi were murdered in cold blood
by their Confederate captors after the surrender of
the place. Some Federal officers, who were captured
at Pilot Knob, were subjected to treatment very
different from that which prisoners of war should
receive. The Confederate loss in the attack on the
Federal works at the latter place was about 200
killed and between 600 and 800 wounded.
Dzspatches from Admiral Farragut, in Mobile
Bay, on the Ist, state that Fort Morgan is being
put in condition for strong defence. The enemy
are trying to place torpedoes in the channel above
the fort, The report that Federal gunboats arc
❑ear the city of Mobile is incorrect.
A military commission had been cent into Ken-
tucky, and was investigating the charges made
against Brigadier General Paine, lately command-
ing the district of Western Kentucky. The Louis•
yille Journal charges him with robbery, murder,
embezz'ement, and unjustifiable banishment.
The Secretary of the Treasury announces that
sealed offers will be received at the Treasury
partment, under the Act of Congress, approved
June 30, 1864, until noon of Friday, and 14th

inst., for bonds of the United States tolhe amount
of 40 millions of dollars. The bonds offered will

bear an interezt of 6 per cery um, payable semi 4
annually in coin, on the first days of May and
November, and will be redeemable at the pleasure
of the Government after five years, and payable in
20 years from November 1, 1864.
The New York Herald says :
"Reports from Chicago inform us that several
banks had failed, and others refused to pay heavy
cheques. This caused a panic among all classes,
and the small produce dealers went under. Flour,
wheat, corn, oats, rye, and whisky fell heavily, and
everything else in proportion. Then a mob attacked
one of the banks, and proposed to hang one of the
directors; but the military were called out, and the
director rescued."

The weekly averages of the old banks of the City
of New York show the following changes;—ln-
crease in loans, 345,619 dols. ; decrease in specie
394,049 do's ; increase in circulation, 910,721
dols; increase i❑ undrawn deposits, 1,161,162 dols,

The details of the battles of the 29th and 30th
ult have at last been received, and show the fight-
ing to have been of a more sanguinary character
than was at first reported.
On the night of the 28:h the 10th Army Corps,
under General Birney, and the 18th Corps, under
General Ord, crossed the James River, near Deep
Bottom, on two mused pontoon bridges. By day-
light on the following morning the entire force was
safely across without apparently having attracted
the attention of the enemy. Bath corps at once
advanced rapidly towards Richmond, the 10th
Corps following the Newmarket Road, while the
18th advanced on a road nearer the river. General
Birney soon encountered the Confederate pickets
and heavy skirmishing commenced, the Confede-
rates falling back stubbornly to Newmarket Heights
where they held a strong position. The coloured
division, under General Paine, charged upon, and,
although suffering severely from the Confederate
. _

fire, carried the works. The Confederates retreatQd

so closely followed by Birney's troops that they
could not reform their line of battle. About two
miles farther on towards Richmond the Federals

found themselves confronted by a strong line of
defences known as the Laurel Hill Works. After
a brief reconnaissance Gen. Birney determined to
attack this position, and at 2 p.m. the assaulting
colnmn moved forward and was met by a murderous
fire of grape and canister, and continuous volleys
of musketry, causing terrible havoc in its ranks;
the troops, however, pressed on, but finally were
held at bay by a formidable abattis, while
an enfilading fire of artillery and infantry mowed
them down in great numbers. The corps now
suffered severely. At one point the negro troops,
while attempting to pass a ditch in front of the
works were slaughtered fearfully by musketry and
band grenades. One account states that nearly
2,000 of the negroes fell while attempting the
passage of this ditch. It being found impossible
to carry the position, the Federal troops were
withdrawn to the cover of a crest, where they re.
mained until nightfall, when a diversion in their
favour was made at another part of the line, and
the entire command was withdrawn to the junction
of the Newmarket and Varina Roads. In the
meantime Kantz's division of cavalry had dashed
on the Confederate line to the left of the 10th
Corps, and had reached a point within one and a
half miles of R.chmond. General Kantz sent back

'or infantry supports, and Terry's division was
thrown forward, but before it could reach

him he found it prudent to retire. While these opea

rations were progressing on the right, Gen. Ord's
corps, on the left, advanced rapidly, driving the
Confederates back to Chapin's Farm. Here some

very heavy works were encountered, consisting of

a series of breastworks and rifle pits, terminating at
the river in a fort mounting seven heavy guns. The
Federals at once assaulted the position, and after
losing
severely, particularly in front of the fort,