The Sun.
London, England, 1864-01-07 00:00:00

AMERICA.

(Per the City of Washington, via Cape Clear,
Jan, 6, 7. p.m.)
NEW YORK, Dec. 25.
The latest news from Virginia states that it may
soon become necessary for the Army of the Potomac
to fall back to some point nearer to Washington.
The present lengthy line of communication (upwards
of 60 miles) is liable to damaging raids by the Con-
federate cavalry stationed at Fredericksburg, one
of which, recently attempted, well-nigh proved suc-
cessful. No military movements of importance have
been reported to-day.
Governor Lubbock, of Texas, in concluding his
Message of the present year to the Legislature of
that State, recommended, in view of the States west
of the Mississippi, whereby they are thrown upon
their own resources, the appropriation of at least
1,000,000 dols. to provide arms and ammunition for
the defence Of the States. He declares that there
can be no peace in Texas until the independence of
the Confederacy is acknowledged.
Embezzlements to the amount of 100,000 dollars
have just been confessed by Charles Cornwall, s
clerk in the Currency Cancelling Department of the
Treasury at Washington. The greater portion of
the stolen fund had been invested by the delinquent
in Government 5-20 Bonds, of which bonds 40,000
dols. worth, found in his possession, have been seized
by the authorities.
A large quantity of gunpowder and percussion
caps masked in barrels of potatoes, and intended
for the contraband trade with the Confederacy, were
seized on Wednesday last while in course of ship-
ment on board the New Orleans steamer George
Cromwell. The shippers are members of several
provincial mercantile houses in this city who have
heretofore enjoyed the reputation of the greatest
patriotism and loyalty.
Business is generally suspended in observance o
the day.

DEC. 26, 1 P.M.

Advices from Charleston to the 22d inst., per
he steamer Fulton, announce no change in the

situation.

The World of this morning says :
" The positions of the contending armies in Eas
Tennessee appear by the latest accounts to be very
curiously complicated. It is now clear that the
severe repulse of our pursuit, under Generals
Hooker and Palmer, after the victory of Lookout
Mountain, has resulted in enabling the Confederates
to reorganise their forces ; and that the substitution
of Gen. Joseph Johnstone for General Bragg in the
chief command of the Southern armies of the West
is rapidly restoring the morale of the Confederate
troops. Gen. Grant is too wary and experienced
an officer to risk any rash movement in the face
of a situation so materially changed, and of an
antagonist so skilful as the General who now con.
fronts him in front of Knoxville. General Long-
street is evidently meditating some dashing and
decisive manoeuvre. The sudden return of the
enterprising commander upon his retreat from the
siege of the key of Eastern Tennessee has already
been marked by an important advantage won over
our troops at Bean's Station, in a conflict the
proportions of which are shown to be far from
insignificant by the Confederate files from Bristol
of the 19th, which announce the arrival at that
point of 225 Federal prisoners, being but the first
detachment of a much larger number who were
captured in that action."
Despatches from Fort Smith, in Arkansas, of the
24th, state that several Indian chiefs of the Choc-
taw tribe heretofore in alliance with the Confede-
rates had voluntarily surrendered themselves to
Gen. M'Neil, desiring to return to the Federal
protection under Mr. Lincoln's amnesty procla-
mation. The despatches also state that much ap-
prehension existed at Fort Smith that s large
supply train then on the route from Fort Scott,
in Kansas, might be captured by the Confederate
Gen. Standwaite, who after his repulse at Fort
Gibson had marched in that direction.
All vessels plying between American ports are
now searched by the provost guard just previous to
leaving port, and all weapons found in possession of
the passengers are given in charge of the purser,
to be returned only upon the arrival of the vessels
at their destination. This is deemed a necessary
precaution, to prevent captures similar to that of
'the Chesapeake.
At a meeting of the Conservative Union Political
Committee, held at Philadelphia on the 23d, a reso-
lution was adopted nominating Gen. M'Clellan for
President, and ex-Governor Campbell, of Tennes-
see, for Vice-President, in the election to be held
next autumn.
Mr. Wendell Phillips delivered an address on
Mr. Lincoln's Message at the Cooper Institute on
Tuesday evening, during which he said—" On this
continent itself, consecrated by ages to the full and
free experiment of self-government—that is our
claim, our just claim—Europe is trying the expe-
riment of thrones. Let her—she has a right to try
it without our interference; but if France plants
the germ of aristocracy and thrones on the soil of
the American continent, my answer to her is that