The Sun.
London, England, 1863-01-08 00:00:00

THE WAR IN AMERICA,

LIVERPOOL, WEDNESDAY,

The Canadian Mail steamship Norwegian has
arrived, with advices from Portland to the 27th ult.,
and 24,000 dols. in specie.

The Secretary of the Treasury, in compliance
with the request of the Committee of Ways and
Means, has prepared and sent them a bill embody-
ing his views. The first section gives authority to
raise 300,000,000 dols, for the service of the current
year, and 600,000,000 dols. for the next fiscal year,
and to raise these sums in any of the modes hereto-
fore sanctioned by Congress, as public exigencies
may require. The modes include the issue of 6 per
cont. bonds, 7.30 bonds, 7 per cent. bonds, or bonds
bearing less rates of interest, and also the issue of
small notes bearing 3.65 per cent. interest, and legal
tender notes bearing no interest. The Secretary, in
his letter to the Committee, expresses a strong de-
sire to have the limits as to the modes of providing
funds, and the amounts to be provided in each mode,
defined as precisely as possible by Congress. The
remaining sections authorise the formation of bank-
ing associations to issue notes furnished by the
United States, alike in form, and secured alike by
United States bonds, but payable on demand pri-
marily by the issuing associations. The bill, in its
main features, is the same as introduced by Air.
Hooper, of Massachusetts, during
the last session.
In his letter the Secretary expresses his profound
sense of the importance of this measure to the nego-
tiation of loans, to the collection of internal revenue,
and the security of the people against the evils of an
enormous unredeemable paper money circulation.
An investigation
into the frauds on the Govern-
ment showed that, out of 1,600,000 dols. paid out in
one city alone from the special appropriation of
20,000,000 dols. for recruiting, organising, and
drilling volunteers, nearly one-half has been paid on
fraudulent accounts. Nearly 1,000 persons had been
engaged in the matter, but they were not all crimi-
nally implicated.
The President had arrested the assessment on dis-
loyalists in Missouri, ordered by Gen. Schofield, in
view of the recent manifestation by part of the peo-
ple of their willingness to adopt the emancipation
policy.
The New York Tribune says that African soldiers
would be employed to guard the banks of the Mis-
81ssIPPI, garrison the forts below New Orleans and
on the coast, and to enforce the proclamation of
freedom to their brethren.
Rumours were current at St. Louis on the 26th
of an intended insurrection of negroes in Missouri.
Mr. Saward had replied as follows to an invitation
to attend a festive gathering :-
8‘ Department of State, Washington, Dec. 23.
4, To JAMES W. FORBES, JAMES L. WOODWARD,
AND ROBERT J. HUNTER, NEW YORK.

" Gentlemen,—l received only at this time your
kind letter of the 16th inst., inviting me to meet
the Sons of Orange and Sullivan at the anniversary
celebration in New York this evening. Thus far,
although electricity consentsto convey our thoughts,
yet it absolutely refuses to go into competition with
steam in carrying either passengers or freight—of
course I cannot come. Nevertheless, for every son
of Orange or of Sullivan who may be with you, and
who is loyal to his country in this her hour of dan-
ger, I send my hearty greeting. There ought to be
no one of them who is disloyal. For what did the
Almighty cast the blue mountains amid the green
valleys of Southern New York but to, form a
cradle for freemen, vigorous—physically, in-
tellectually, and morally vigorous ? Men thus
constituted, if they are forced into a war for
the defence of freedom and their country, will
demand that that war, which is on their part so
just, shall be prosecuted with vigour. While many
things are important to that end which they may
not be able to effect, there is one indispensable thing
which they can do, namely—they can and mus ,
unite sons of Orange with sons of Erie, sons of New
York with sons of Massachusetts, sons of Missouri
and sons of California—brothers in fact as they are
in name—as inseparable members of the American
Republic.—l have the honour to be, gentlemen,
your very obedient servant,
" WILLIAM H. SEWARD."
The Government had decided to increase the
wages of the shipwrights employed in the dockyards
to 3 doll. per diem.
From the Army of the Potomac we have the fol-
lowing advices :
" Tobago Bay, on the Rappahannock, 30 miles
below Fredericks Burg, Wednesday, Dec 24.
" A bold attempt was made last night by the re-
bels to cress thcf, -Rappahannock on rafts, 14 miles
below Port Conway, and capture a squadron of the
Bth Pennsylvania Cavalry, doing picket duty along
the rive:. Major Keenan, who is now in command
of tke regiment, and is stationed at Port Conway,
got wind of the movement through some trusty
blacks, and was fully prepared to receive them, and
would have taken the entire party had not some of
his men fired their guns too quickly and frightened
them all back under cover of the woods. One hun-
dred head of fine cattle, which had been purchased
for the rebel army, were yesterday taken from the
plantation of Phelan Lewis, a wealthy farmer, and
appropriated to the use of our own soldiers. Upon
demanding the usual receipt, Mr. Lewis received
one with these encouraging words written beneath
it I believe Phelan Lewis to be a disloyal man,
and a traitor to the Government of the United
States.' One division of rebel infantry, one bri-
gade of cavalry, and four batteries of artillery,
all suTilposed to be under the command of A.
P. Rua, are stretched from to point four
miles below Port Royal to three miles below To-
bagoß iy,the lowest point to which our own pickets
extend. The gunboat fleet, under the command of
Captain M'Kay, in order to avoid the danger of
being ice-bound, and to be secure from attack by
rebel infantry, has fallen down ten miles below
Port Royal. The planters on the rebel side of the
Rappahannock are sending all their negroes south
as rapidly as possibly, fearing the approach of the
Ist of January. Many of them, however, manage
to escape during the night, and cross the river on
logs and planks, or anything that will float. Fif-
teen escaped from the plantation of Mr. Pratt, one
mile below Port Conway, last night, and were
kindly cared for by our pickets. They say Mr.
Pratt has separated nearly all his negro families
asd sent them to different parts of the South. A
few wealthy planters, however, who were old
Whigs and strong Union men, persistently refuse
to sell their slaves, separate their families, or sell
them off. They say that if their servants' desire to
leave them they are at liberty to go whenever they
please. With this understanding most of them re-
main and are obedient. The leading rebels along
the Valley are furious in their denunciations el"
General Lee for not having destroyed the army °I
the Potomac while it was massed in the streets of
Fredericksburg, and say that if he does not afford
them protection from the ravages of the Yankees,
they will soon take the oath of allegiance e
.the
National Government. What they most
s
protection, and they are beginning to be very indif-
ferent what Government gives it to them."
" New York, Dec. 26.
"An army letter of the 22d in the limes reports
the return of General Averill's cavalry expedition
to camp. They have been in search of the rebel
cavalry, who were north of the Rappahannock, but
they had recrossed the river. The result of the ex-
pedition reveals our right insecurely guarded, and
unless more precaution is taken something serious
may happen. It is expected the rebels will soon
make a demonstration on our right."
" Headquarters, Army of the Potomac, Dec. 26.
All quiet here to-night, and nothing occurred
for the lest 24 hours worth telegraphing."
From the South-West we have the following in
telligence

" Cairn, Wednesday, Dec. 24.
Parole prisoners taken at Holly Springs, arrived
here, furnish the following facts :—On Thursday
telegrams were received at Holly Springs from
Jackson, saying the place was menaced by rebels,
and asking for reinforcements. 04Friday morning
all the troops but about 800 were sent to Jackson.
The same night, the commander at Holly Springs
being apprized of rebels approaching that place,
pickets were stationed three miles out on the roads,
but the rebelio seem to have come in between the

roads, as the pickets made no alarm. The first heard
of the enemy they were in town firing at our sleep-
ing men. Some resistance was made, but of course
feeble. In a short time the Unionists were over-
powered and compelled to surrender. The attack
was made at daybreak ; 200 Unionists were reported
killed and wounded, and 150 captured, who were
afterwards paroled. The remainder escaped. It is
reported in Memphis that the rebels have gone to-
wards Grand Junction with an intention of tearing
up the road, but nothing is knuwn positively. At
Holly Springs they burnt large quantities of cot-
ton, over 100 waggons, a depot full of commissary
stores, ammunition, &c., valued at 500,000 dollars.
The number of rebels are estimated at 5,000, and are
under Van Dorn. A small rebel force made a raid
several stores, carried off 100 cattle and
on the suburbs of Memphis, Sunday night,lB opimllaugleesd.
Excitement in Memphis
da the best
meeting called on Mony night to consider
exists in consequence of a
means of defence-
General Sherman has reached
reported here to- g
Helena, preparingni tohtmtohvaet river.jdeoffw.nTthhoempsonis
mltovis.
e onin New Madrid with 2,000 men from Poeahon-
tas-, Ark., and that he was within 40 miles of that
place on Monday. The rebel force operating in
North-Western Tennessee burnt Union City and
the bridge over the Onion River last night. Every
effort is being made to meet them."
The Federals had occupied Winchester without
opposition, the Confederates having previously re-
tired, destroying the railroad.
A telegram from Washington mentions an abor-
tive attempt to obtain the suffrages of the people of
Smithfield, Virginia :
" A letter from Suffolk, Virginia, December 23,
states that the election for members of Congress
took piaee the day before, agreeably to the procla-
mation of General Dix. Contrary to the laws of
Virginia, ballots were cast, instead of viva voce.
In order to give the people of Smithfield an
opportunity to show their attachment to the
Union, two ballot boxes were sent down to them
in charge of Lieutenant-Colonel Onderdonk,
with 200 of the Ist New York Mounted Rifles.
Suspecting the rebels would be anxious to visit the
polls, Colonel Onderdonk sent the boxes direct to
Smithfield in charge of a small squad, and pro-
ceeded with the remainder of his command to -Wind-
sor. Learning that the rebels had left that place
before, Col. Onderdonk proceeded cautiously to-
wards the Isle of Wight, and when about three
miles out he came up with them. A short skirmish
revealed one regiment of rebel infantry with two
pieces of artillery and some cavalry. Col. Onder-
donk, then thinking it would be safer to look up
voters nearer Suffolk, slowly retired. The rebels
attempted to surround him, and were at one time
only 150 yards in his rear, whereupon Col. Onder-
donk suddenly wheeled his command about and
fired a volley, which emptied 20 rebel saddles. The
skirmishing continued for aix miles. Two prisoners
and one horse were taken from the rebels. Nono of
our men were lost or injured. It is thought it will
be a long time before the election returns come in
from Butterfield. Nansemond polled 39 votes, 26
of which are for Mr. Cooper, 12 for Mr. M'Cloud,
and one scattering."
General Foster had arrrived at Washington to
solicit reinforcements for further operations. After
leaving Kinston his forces took Goldsborough, tear,
ing up the railroad, burning the ties, and destroy.
ing the rails and telegraph. The forces had re-
turned to Newbern in safety.
Richmond papers of the 20th contain the follow,
ing despatches respecting Gen. Foster's operations :
" Goldsborough, Friday, Dec. 16.
" A reconnoissance last night by a squadron of the
3d North Carolina Cavalry, under Capt. Carroway,
found the enemy encamped about two miles below
Whitehall. The citizens represent them as scared
and out of food and ammunition. A rumour on
the streets this morning says reinforcements have
passed Kinston on the south side of the Neuse, to
succour their skedaddling friends. As the smoke
of battle clears away it reveals a considerable
slaughter among the Yankees at Whitehall on
Tuesday. A hundred of their dead were
left unburied on the field, and a pit, 100 yards
long, filled with dead has been found. Only three
' companies of the 59th and 11th North Carolina
were engaged. Colonel Ferribee, of the 59th, with
18 men of the 14th, fought the enemy for several
hours, until reinforced by three of his own compa-
nies, who were subsequently relieved by the 11th,
Col. Leaventhorne, under the immortal Bethel flag,
who ultimately drove them from their guns into the
field. The 21st North Carolina, Col. Jordan, was on
the field, but, with the exception of one company,
seems to have taken no part in the action. Cot. Fre-
mont, chief engineer of the Wilmington Railroad,
has just arrived in town from Wilmington. He
passed over the entire track to the Neuse on a hand
car, and says he can repair all damages on the road
in two days, and the bridge over the Neuse in six
or eight. All quiet here.
The _Raleigh State Journal of the 18th says :
" Nine regiments and two batteries of artillery
arrived on Tuesday, and several brigades are on the
way. Prudence will not allow us to specify whence
they were drawn, but the concentration was rapid,
and by this time a force is in and around Goldsbo-
rough sufficient to baffle, if not capture, the invaders.
The Examiner states that the Confederate forces
at Goldsborough on Wednesday evening were about
17,000, with reinforcements hourly arriving and ex-
pected.
A correspondent of the Progress says :
" Intelligence has reached Goldsborough that
Banks's column had probably joined Foster's, mak-
ing some 40,000 or 50,000 of the enemy.
" General Smith is represented as sanguine of
success, and it is reported that Gen. Lee had tele-
graphed him that he could spare him, if necessary,
30,000 men. The railroad south of Goldsborough
has been torn up for some distance by the enemy,
and, of course, all communication with Wilmington
has been cut off.
sta" A
teslathteartdtehsePaetne hto
emythhea2Vd'odrtish Carolina
appeare Standard
dsouthof
Goldsborough."
The Chattanooga .Rebel of Dec. 18 contains the
following account of President Davis's tour in the
West :-
1 " His Excellency the President of the Confederate
States, accompanied by Gen. Joe Davis and Col.
Fitzhugh Lee, of his staff, arrived at Chattanooga
from Knoxville on the night of the 11th, and left
the next morning at 6 o'clock for Murfreesborough,
Colonel E. W. Cole, superintendent of the Nashville
and Chattanooga Railroad, with that thoughtful-
ness and good taste which is characteristic of the
man, had provided an elegant new carriage for
the occasion, and a splendid train, to convey the
distinguished passengers to Murfreesborough. To
Col. Cole, therefore, his Excellency was indebted
for a most agreeable conveyance, and to Col. Cole
the State of Tennessee is indebted for the befitting
manner
in which her distinguished visitor was wel-
comed within her borders. The carriage which
brought the
President to Murfreesborough was one
and may well be considered one of the trophies of
of the most elegant in the Southern Confederacy,
the war. It was the last carriage brought from the
company's factory at Nashville pz for to the advance
termined to keep
by Col. Cole ever since, who was de
of the Yankees, and has been carefully preserved
one respectable Carriage for special occasions likeo
this. As the train left the Chattanooga depot n
Friday morning a splendid brass band in attendance
struck up ' The Bonnie Blue Flag,' and afterwards
broke into the lively strains of which fell
upon the ear as the train was sweeping round the I
base of the giant Lookout.
"At Shellmound the axle of one of the box cars
attached to the mail train which immediately pre-
ceded the special train for the President broke short
off, and the end of the'axlo was dragged some dis-
tance over the cross ties, jolting the cars and passen-
gers in a most alarming manner. Some one jerked
the bellrope, and the engineer promptly whistled
down breaks,' and brought the train to a stand-
still before any serious damage resulted. It was a
miracle that the whole train was not precipitated
over the bluffs of the Tennessee. As it was, thanks
to the caution and steadiness of nerve of the engi-
neer, very little damage was done, and the accident,
which was certainly unavoidable, was soon reme-
died. Col. Cole gathered about him in a trice a small

array of mechanics and engineers, and in 30 minutes