The Sun.
London, England, 1862-03-06 00:00:00

THE CAPTURE OF' FORT DONNELSON.
- NEW YORK, FEE; 18 (113 R AMERICA, via
0,11 ab• QUEENSTOWN).
The steamship Teutonia arrived at New York on
Feb. 16, and the Edinburgh on the 18th. The
British gunboat Racer sailed from New York for
Bermuda on'Feb. 16. ,
The main feature of the news is the further suc-
cess of the Federal forces in the capture of Fort
Donnelson, with a large number of prisoners and
munitions of war, the details of which will be found
below. The late continued successes of the Federal
forces has caused the greatest enthusiasm through-
out the principal Northern cities, and the most san-
guine and hopeful, expectations of a speedy termi-
nation of the rebellion are entertained generally by
the people.. • The preSs' alio appear universally
con-
vinced that the rebellion has culminated.
The effect-of the. news commercially is thus de-
scribed in the .New York Times of Feb. 18 :
wild with, enthusiasm on the
news‘T thehfreomstreat w
South-West of the capture of Fort
Donnelson. The Stock ExChange was happy and
buoyant, and the. Coin Exchange resounded with
appplause on the announcement of the news. The
feeling is well nigh universal that the worst of our
civil war is over, and that an early return of the
Border States to their allegiance is inevitable. The
Gulf States, it is believed, must follow at no distant
the renewal
ns with the, Upper valley of the
day, the first of them being Louisiana with her
of the intimate rela-
tsiuognas%iftiNteerewsto, art
Mississippi and Ohio. -
" The additional advances under,this news in the
the railway shares,
totitlte stocks of Missouri,
nelnt.npoeensrsectehe.net
The
Kentucky,a stock-marketn3 to 4pa en
rda
tr
Tee
last-named rose 6
per cent. on Saturday's sales, and lb per cent. on the
rates current a week ago: ,
" The National Securities were g per cent. higher
on 7 deli. 30c. per Cent. Treasury Bonds, and Five
per Centi.- of '1J874, and steady on the Six per
Cents. of 1881. Another remarkable change in the
market 'was a fall of 1 per cent. in gold, which,
from 1048 to 1048 on .Saturda* afternoon, fell to
1038 to 1031- at the close of business to-day."
In the Senate yesterday' (17th inst.) various peti-
tions were presented, among them one asking that
the full rank of Major-General should be conferred
upon General Wood.,
.Mr. Latham reported his
Bill authorising a survey, with a, view to construct
a telegraph line across Behring's Straits. The joint
resolution relative, to the payment of the Oregon'
and Washington war debt, settling the method of
paying the awards, was passed.
A despatch received from General M'Clellan,
announcing the surrender of Fort Donnelson, was
read, and caused the greatest excitement, the floors
and galleries joining unchecked and indiscriminately
in the applause. Mr. Johnson, of Tennessee, obtained
leave to offer a joint resolution, thanking the army
and navy for their heroie gallantry as exhibited in
recent battles, which was i?assed,
In the House the victory at Fort Donnelson first
claimed attention, and the news created so much
excitement that for a time it appeared impossible
that any business could be done. - Two or three
motions to adjourn were made, but they were not
carried.
The Committee of Ways and Means, in a pro-
tracted' session, this morning debated and voted
upon the several amendments made by the Senate
to the first two sections of the Legal Tender Bill.
MM. Corning, Morrill, Horton, and Stratton voted
throughout tq concur in all the changes of principle.
MM. Stevens, Spaulding, Hooper, and Maynard ad-
hered to all' the distinctive features of the Bill
as passed by the Honse, the vote thus standing 4 to
4. Those amendments of the Senate were not
concurred in which make the issue of new notes
100,000,000 dols., instead of 150,000,000 dols„
which includes the 50,000,000 dols. autho-
rised' July 17, require the interest on the
bonds and notes to be paid in coin, make the
20 year Bonds redeemable after five years, autho-
rise the conversion -of notes in sums not less than
100 dole. into 7 3-10 Bonds, make the funded 6 per
Cents. redeemable after five years, and payable in
20 years instead of redeemable after 20 years, as
the house directed, and authorise. the throwing of
the Bonda on the markei for what they will fetch.
A special despatch to the New York Times, dated
Fort Donnelson, Feb. 16, gives the following ac-
count of the capture of that 'place .by the Federals :
"Fort Donnelson surrendered at daylight this
morning (16th) unconditionally. We have Generals
Buckner, Johnston,' Bushrnd, and 15,000 prisoners
and 3,000 horses. Generals Pillow and Floyd, with
their brigades, ran away on steamers without letting
Buckner know of their intention. General Smith
led the charge on the lower 'end of the works, and
was the first inside the fortifications.
" the prisoners are loading on the steamers for
Cairo.
" The Federal loss is heavy, probably 400 killed
and 800 wounded. There is a large percentage of
officers.
" The enemy's loss is heavy, but not so large as
ours, as they fought behind intrenchments.
" The fort would have been taken by storming
on Saturday had not the ammunition of the Fede-
rals, given out in the night.
" The enemy turned the -Federal right for half an
hour, but this ground thus lost was afterwards more
than regained. Gen. Lanham's Brigade of General
Smith's Division was the first in the lower end of
the enemy's works, which were taken by a charge
of the bayonet.
" As nine-tenths of the rebels were pitted against
our right, our forces on the,•right were ready all
night to recommence• the attack:: On; Sunday morn-
ing they were met' on their approach by a white
flag, Gen. Buckner havingliefit early in the morn-
ing a despatch to Gen. Grant, surrendering.
The rebels lose 48 field-pieces, 17 heavy guns,
20,000 stand of arms, besides a large quantity of
Commissary stores.
" The Federal troops, from the moment of the
investment of the fort on Wednesday, lay on their
arms night and day, half the time without provi—
sions, all the time without tents, and a portion 'in
a heavy storm of rain and snow."
Another special despatch from Fort Donnelson,
dated Chicago, February 17, says :
" The forces were 'about equal in numbers, but
the rebels had all the advantage of position, being
well fortified on two immense hills, with their fort
near the river on a lower piece of ground. From
the foot of their intrenchments rifle pits and abattis
extended up the river behind the town of Dover.
Their fortifications on the land side back from the
river were at least four miles in length. Their
water battery in the centre of the fortifications,
where it came down to the river, mounted nine
heavy guns.
"The rebels were sure of success. In any other
cause end against less brave troops they could easily
have held the position against 100,000 men.
" The business of getting the different brigades
in position for attaching the new arrivals to the
different divisions took up the greater portion of
Friday night. At daylight on Sunday the enemy
opened on the 18th Illinois, when Colonel Colesby's
brigade was soon engaged, and was soon followed
by Wallace's and M'Arthur's brigades, the latter
acting under General M'Clernand, as the position
of the troops had been changed during the night,
and General Grant had been called away to the
gunboats.
"The movements of the troops, except those at-
tached to M'Clernand's division; were made with-
-Out anythitig except general orders.
„Ata suggestion from, Gerieral I\i'Clernand,

" Sir,—Yours of this date, proposing an armistice
and the appointment of Commissioners for settling
terms of capitulation, is just received. No terms
except unconditional and immediate surrender can
be accepted.
" I propose to move immediately on your works.
" I am, very respectfully, your obedient servt.,
" U. S. GRANT, Brigadier-General Commanding.
" To General S. B. Buckner."

(Per America, by Telegraph from New York to
Halifax.)
NEW YORK, FEB. 21.

Lord Palmerstoa's statement that England would
remain neutral has caused a favourable effect poli-
tically.
The New York Times states it is rumoured that
Mr. Carl Schuz will go as Minister to Russia, in-
stead of Mr. Cameron. Mr. Wilmot will go to
Spain, instead of Mr. Schuz.

It is rumoured 'through Southern sources that
the Confederate General Johnstone had offered to
evacuate Nashville providing that private property
were respected. • No answer has yet been given to
this offer.

From Missouri it is reported that the Federals
had attacked Price and another. General in Arkan-
sas, and that after a short engagement Gen. Prise
had fled, leaving behind a quantity of baggage.

The .New York Times reviews the Queen's pro-
clamation closing the British ports to Federal ves-
sels, and compares this course with the shelter and
cordial treatment afforded to British vessels in
Federal ports, and with Mr. Seward's permission
for British troops to pass through Maine. It
argues that the masses of the English people are
friendly to America, but that the British Ministry
is at open war with the United States.
The New York press generally is indignant at
the proposed monarchy in Mexico. The New York
World considers it an insult to the Federal Govern-
ment, which at any other time would be resisted
with the whole power of the American nation. It
thinks that a Monarchy in. Mexico can only be sup-
ported by European bayonets.
" In the meantime," it continues, " the Southern
rebellion is about to be crushed, and as soon as this
is accomplished nothing would be so likely .to
cement- the alienated North and South as the union
of :their arms in common effort to maintain the
Monroe doctrine, any infringement of which would
formerly have been resented by North and South,
but with more warm and vigour by the South
than by the North."

According to an Associated Press despatch from
Washington, the Secretary of State sees in the late
European advices a satisfactory reaction in Eng-
land and the Continent in favour of the United
States. Special satisfaction is felt at the congratu-
lations from Rasssia anditaly on the settlement of
the Trent affair, " which is regarded (as the bow of
promise of peace and freedom of commerce."
The American Geographical Society have asked
the intercession of Congress in reference to a ship
canal connecting the River St. Lawrence and,the
Great Lakes on the Northern boundary with the
Atlantic Ocean in New York Bay in any future ad-
justment of commercial relations between America
and England.
The Nov York Tribune considers that, deeply as
it is to be deplored, it will be the slow work of years
to place England and America on the same footing
as 16 months ago :

" If civil war were ended to-morrow the respect
America would regain in English political circles
would neither be due to blood relationship nor com-
mon commercial interests, but to the victorious
naval and military force now asserting the power
of the Federal Government. In mutual relation-
ships England and America have travelled back
many years."
The Tribune fears that neither friendly protocols
nor joint telegraph expeditions can make it other-
wise, and thinks that the progress of the European
invasion of Mexico, and the newly-developed policy
of its promoters, add new incentives to vigorous
prosecution against rebellion.
The New fork Times says that since the Donnol-
son victory the popular cry is for the old Union, no
confiscation, no vengeance, but the banishment of
the rebel leaders, and a general amnesty for all who
will return to the old flag.
" America should present to Europe, not a i