The Sun.
London, England, 1861-10-17 00:00:00

AMERICA.

LIVERPOOL, OCT. 16.
The Liverpool, New York, and Philadelphia screw
steamship City of New York, previously reported
at Queenstown, arrived here this morning, with
advices from New York to the sth inst.
The most important item bearing upon the war
news is a startling report which had been received
at New Orleans, by letter from St. Louis, announc-
ing that 70 Federal vessels were going up the
Balize to capture that place. The date of the letter
was not given.
The New York Times, without vouching for the
truth of the report, says :
" It is well known that the Government has for some
time been purchasing and fitting out steamers for special
service, and that a numerous body of sailors have been re-
cruited; and it is equally certain that these steamers and
sailors have not been retained in the Northern ports. The
comparatively defenceless position of New Orleans, and its
importance as a commercial port, have quite likely induced
the Government to plan its capture, as the most effectual
blow whi:th could be struck against the rebels at the present
time. It will be recollected, also, that Dr. Russell, in one
of his recent letters to the London Times, has made mention
of such an expedition, intended to proceed up the Missis-
sippi river to meet Gen. Fremont on his progress down."
On the 3d a battle is reported to have taken place
in Western Virginia between Gen. Reynolds' Bri-
gade and the Confederates under Lee. The Federal
troops, numbering 5,000, had made a reconnaissance
in front of the enemy's position on Greenbrier
river, and report having severely punished the Con-
federates.

The Federal forces are stated to have had a most
brilliant success in the Kanawha Valley, killing 60
of the Confederates and taking 70 prisoners. In
their escaping they were also intercepted by Col.
Hiatt, and experienced a still further loss of 40,
and had a large number taken prisoners.
The report of the removal of Gen. Fremont from
his command in Missouri is stated to have created
considerable excitement in St. Louis. A recruiting
rendezvous of an Irish regiment was closed on the
reception of the news ; a meeting for the formation
of a Home Guard adjourned without action, and a
mass meeting called to express an opinion. The
excitement, however, was calmed on the reception
of a despatch from Secretary Seward, stating that
General Fremont had not been ordered to Washing-

ton, nor from the field, and that no court-martial
had been ordered for his trial.
On the forth the Confederate forces made their
appearance in the vicinity of Falls Church, but
made no hostile demonstration. Munson's-hill has
been strongly fortified, the 37th New York Regi-
ment having thrown up intrenchments.
The evacuation of Lexington by the Confederate
forces under Price is left without doubt, intelligence
having reached Jefferson City that the whole Con-
federate force had left on the 30th ult., General
Sturgis, who is reported to have made his appear-
ance on the opposite side of the Missouri just in
time to shell the rear-guard of the retiring army,
being in possession. The intelligence had been con
veyed• by Major Baker, of the Home Guards, he
having escaped from the Confederates after being
taken prisoner. The Major confirmed the report
that Price's command numbers 40,000 men. When
heard from last he was moving towards Indepen-
dence, in order to avoid General Siegel, who was in
pursuit of him.

Kentucky advices from Bowling-green state that
Buckner had gone with a portion of his men through
Hopkinsville, Greenville, and other places, seizing
arms wherever he could find them. It was reported
that he intended soon to attack Spotsville. A body
of Confederate troops had taken possession of Hop-
kinsville, a small body of Federal troops stationed
there falling back to Henderson. The Confederate
troops at Bowling-green, it is stated, believe that
their numbers can be reinforced by 30,000 at a
day's notice. Along the Upper Potomac all was re-
ported quiet.
The New York Times says :
" Private information has recently been received from the
rebel army which renders it pr bable that their strongest
position is about a mile and a quarter in the rear of Manas-
sas J unction, where the entire available reserves of the
South are being collected. This information comes from a
person who has recently-, in the interest of the Government,
visited all the principal points from Richmond to Lees-
burgh. He fully confirms previous reports of the dissatis-
faction and demoralization which exist in the rebel army,
increased to a great extent by the recent national victory at

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