The Sun.
London, England, 1861-10-29 00:00:00

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cavalry, and to employ all the money in the
hands of the disbursing officers for the payment of
the current expenses of his army in Missouri, and
to let all his debts in St. Louis, amounting to
4,500,000 dols., remain unpaid until properly ex-
amined and sent to Washington for settlement. He
had also ordered the disbursing officers to disburse
their funds, and not transfer them to persons who
did not hold commissions from the President and
were not under bonds; and he further ordered that
hereafter all contracts should be made by the regu -
hr disbursing officers of the army. General Fre-
mont was also informed that payment would not be
made to officers appointed by him.
From Missouri we have a doubtful report, under
date the 14th, that a battle took place on the 27th
ult., between the Kansas troops, under Montgo-
mery and Jamison, and the advance guard of
M'Culloch and some State Guards, under Chenault.
The battle commenced near Shanghai, in Barton
county. The Confederates were driven back with
considerable loss, and pursued some 40 miles. Mont-
gomery then fell back on Greenfield.
An expedition was being organised in California
to proceed overland, under the command of General
Sumner, to the western part of Texas.

A despatch from Richmond, via Baltimore, reports
that the steamer Nashville ran the blockade at
Charleston on the 12th, with evSenator Mason as
Minister to England, and John Slidell as Minister
to France, with their suites.

The Norfolk, Examiner of the 14th contains a
despatch from New Orleans of the 12th, stating that
a naval engagement took place at the head of the
Passes on the night of the 11th, lasting an hour,
and was afterwards renewed. It also publishes the
following despatch :
" FORT JACKSON, Oct. 12.—Last night I attacked
the blockaders with my little fleet. I succeeded,
after a short struggle, in driving them all aground
on the South-west Pass bar, except the Preble,
which I sunk. I captured a prize from them, and
after they were fast in the sand I peppered them
well. Tnere were no casualties on our side. It was
a complete success.

(Signed) " HOLLINS."

A despatch from New Orleans, dated the 13th,
says " that the force of the Federal fleet was 40
guns and nearly 1,000 men; while the little Con-
federate mosquito fleet was 16 guns and 300 men.
It is reported that our iron steamer sunk the Preble
with her iron prow. Commander Rollins arrived
last night."
The steamship Champion had arrived at New
York from Aspinwall with the California mails of
the sth, and 1,011,707 dole, in specie. By this arri-
val we learn that the Ospina party in Panama had
gone so far as to inaugurate active hostilities in the
streets of the city by firing upon the Government
sentinels. They took a strong position in a house
favourably situate for defence, and for a time bade
defiance to the behests of the Government ; but
finally, being few in numbers, and failing to procure
certain support which they had counted upon, they
surrendered, and quiet was again restored. From
Bogota there is no news of importance. In several
of the States of the New-Granadian Confederacy,
however, there were symptoms of trouble, and it
seemed to be extremely doubtful that Mosquera
would find his position of Provisional President one
without difficulties. The Conservatives in Cauca,
Antioquia, and elsewhere were gathering in formid-
able numbers, and would require prompt measures
to overcome them. Mosquera was taking steps to
increase his army to upwards 0ft9,000 strong, and
a portion of this force was intended to operate ex-
clusively against these malcontents.

Via Havannah we have a report from Venezuela
that General Paez had been officially called upon to
resign his command of the army into the hands of
the Government. The veteran General at once
acceded to the demand, expressing his determina-
tion at the same time to leave for a foreign country
as soon as the Government would be ready to liqui-
date his demands against the public Treasury. In
resigning his command, General Paez addressed a
touching letter to the Government, in which he ex-
pressed a hope that posterity would judge him justly.