The Sun.
London, England, 1865-03-22 00:00:00

boro' railroad, 15 miles north-east of Wilmington

The Governor of North Carolina has announced
that for a few months Lee's army must rely for
subsistence upon Virginia and North Carolina

alone.

President Lincoln has offered a pardon to all
deserters returning to their posts within 60 days.
The New York Times says President Lincoln does
not propose at present to make any diplomatic
appointment to France.

It is reported that the Government will imme-
diately ship the cotton captured at Savannah, to
England.

NEW YORK, MARCH 11, 10 p.m.
The following are the heads of the news brough
by the Moravian :

The reports have been reiterated of Sherman
having occupied Fayetteville.
General Sheridan's victory is confirmed.
Early was not captured.

Mr. M'Culloch, the Secretary of the Treasury,
has announced that he will make an effort to resume

early specie payments.
The Canadian Parliament has adopted the Code.

deration scheme.

Mr. Scarlett, the British Envoy to Mexico, has
arrived at the capital of that country, and delivered
an autograph letter from her Majesty Queen Victoria
recognising the Emperor Maximilian.

Richmond papers of the 9th inst. report the news
from the Carolinas highly encouraging, though
still suppressed. They intimate that Sherman is

retreating.

NEW YORK, MARCH 11 (Evening).
The Washington Republican of yesterday says
General Thomas has telegraphed to the Govern-
ment that scouts had arrived with information of
Sherman having intercepted and crushed Cheat-
ham's corps, which was moving from Alabama to
reinforce Hardee. Hardee was not up in time, and
did not give battle.

Johnstone is supposed to have attacked Sherman
in front, but is said to have been defeated. The
locality of the battle is not given. It is reported to
be probably in the north of South Carolina.
Scouts arrived at Wilmington announce Sher-
man's occupation of Cheran. Up to that time
nothing but skirmishing had occurred. Sherman's
advance into South Carolina was a certainty.

It is rumoured at Washington that General Scho-
field has had an engagement in North Carolina.
Grant is reported to have discovered coloured
troops confronting his pickets, showing that the
Confederates had adopted the policy of arming the

slaves.

The Confederate Senate has passed the Negro
Enlistment Bill, and it is supposed the House will

ratify it.

COMMERCIAL INTELLIGENCE.
NEW YORK, MARCH 11, Evening.
Money easy. Gold, 191/. Exchange on Lon-
don, 2031 ; do. Paris ; 2.771. Stocks slightly
firmer ; New York Central, 105 ; Illinois, 115 ;
Erie, 64 ; 5.20 United States Bonds, 111 k.
Cotton very dull. Middling Upland, 73c. Flour,
wheat,. and corn, dull. Provisions slightly firmer.
Coffee dull. Sugar quiet. Molasses dull. Petro-
leum heavy. Crude, 40c. Refined, ac.
NEW YORK, MARCH 12, 1 a.m.
The Federal Senate has adjourned without trans-
acting any important business.
The only diplomatic appointment sent in is that
of John P. Hall, as Minister to Spain.
The accounts from Sherman continue conflicting.
Reports from Charleston to the 7th announces
Sherman's arrival at Charlotteville. Beauregard
was hovering round his front.
Rumours through Southern sources state that
Sherman had deserted Cheran, retiring towards
Charleston. Other accounts represent the fight at
Cheran as a cavalry engagement—Hampton de-
feating Kilpatrick.
General Potter has advanced from Charleston to
the Sanled River without opposition.
The fortifications of Augusta are being strength-
ened.

The Southern journals now express more confi-
dence of Sherman's failure, and say his retreat
would not surprise them.
General Terry is thirteen miles from Wilmington,
on the north-west branch of the Cape Fear River,
confronted by Hoke.
Charleston is quiet and business reviving.
The arrival of detachments at Winchester with
prisoners confirm Sheridan's success.
Details received state that Custer's division at-
tacked and defeated Early's forces near Waynes-
boro, capturing 87 officers, Early's staff, 1,100 men,
and 7 cannon, 100 waggons, and also a train of
artillery stores prepared for transportation. General
Sheridan occupied Waynesboro. Custer was last
reported within 10 miles of Charlotteville. Rosser
attacked a detachment returning from Winchester,
but was repulsed.

Prisoners report that a heavy Federal force was
advancing from East Tennessee towards Lynch-
burg. Unconfirmed rumours report the capture of
Lynchburg.
General Grant is reported to be awaiting fine
weather for another attack on the south side rail-
road.

Lee is strongly fortifying his position on the
Roanoke River, to secure the possible retreat of
Johnstone to Roanoke.
The Danville Register says that Lee intends never
to surrender Richmond until it is impossible to
hold it.

A meeting has been held at Danville for subscrip-
tions to support Lee's army.
The Governor of North Carolina has strongly ap-
pealed for provisions for Lee's army.
General Early has left New Orleans for Mobile.
Mr. M'Culloch, the new Secretary of the Trea-
sury, upon assuming office made a speech, stating
that his chief aim was to prcvide an early means to

discharging the claims upon the Treasury, and
gradually restoring a specie basis, the departure
from which was a temporary necessity, damaging
and demoralizing to the people and expensive to
the Governments.

The Secretary of the Interior has resigned, and
has been succeeded by Senator Horton.

The papers continue to stigmatize Andrew
Johnston's condut on the day of his inauguration.
Some recommended him to resign.
President Lincoln has been officially informed of
England's approval of the recent Canadian legisla-
tion regarding Southern refugees.

Mr. Seward has rescinded the Canadian passpor
order.

It has also been agreed not to increase the nava:
force on the Lakes.

The draft commences in New York on the 15th
of March.

The steamer Ruby has been captured.
The British ship Margaret Kerr has been totally
wrecked at Key West. The crew were saved.

The Richmond Enquirer says that a plan existed
to force President Davis to resign in favour of
Hunter. It hopes the plan has miscarried. " Lee,
it says, with the consent of the army and people,
will grasp the sceptre, if wrenched from Davis.
The Congress is a failure, and the power should be
intrusted to Davis and Lee alone."
The Belgian has arrived out.

MEXICO.
NEW YORK, MARCH 11.
Advices from Mexico state that General Mejia,

in accordance with instructions from the Emperor
Maximilian, ordered the American Consul at Mata-
moras to close the Consulate on the 9th, and sent
him passports on the 10th, It is believed that the
non-recognition of the Empire was the cause of this
proceeding.

Mr. Scarlett had had an audience of the Empe-
ror Maximilian, at which he presented an autogiaph

letter of her Majesty Queen Victoria. The Em-
peror tendered Mr. Scarlett a cordial reception, and
said he should be always happy to see the
strengthening of good relations between the two
countries. The Queen's letter, dated 9th November,
desires to give the Emperor Maximilian immediate
proof of her sincere friendship and lively wishes to
maintain the most friendly relations with Mexico.
Her Majesty accredits Mr. Scarlett Envoy Extra-
ordinary and Minister Plenipotentiary at the
Mexican Court.

In a letter to the Empress, Queen Victoria ex
presses her unchangeable consideration and affec.

tion. Her Majesty addressed the Emperor as my
brother, and the Empress as my sister and dear

cousin.

The victories of the French at Oajaca and Tacat.
Lan have been confirmed.
General Porfirio Diaz had arrived at the city o

Mexico as a prisoner.
It is reported that the French have suffered two
reverses. The particulars are unknown.
A large number of American emigrants have
arrived at Vera Cruz.

CANADA.
ADOPTION OF THE CONFEDERATION

SCHEME.
QUEBEC, MARCH 11.
The Canadian Parliament has adopted the Con
!ederation scheme by 91 against 33 votes.