The Sun.
London, England, 1861-11-02 00:00:00

THE SUN, LONDON, SATURDAY EVENING, NOVEMBER 2, 1861.

THE CIVIL WAR IN AMERICA.

LIVERPOOL, FRTDA-St.

The Liverpool, New York, and Philadelphia
Steam-ship Company's screw steamer City of Wash-
ington,- Captain S. Brooks, which left New York
on the 19th October, arrived in the Mersey this
morning.
The City of Washington called at Queenstown
on Wednesday afternoon, landed mails, &c., and
proceeded for Liverpool. Shortly before midnight,
however, the crank shaft of her screw was found
to be broken, and she had to proceed under sail.
On the intelligence being received at Liverpool,
two powerful steam-tugs were dispatched to tow
her here, where she arrived about 8 o'clock this
morning.
The following is a summary of her news :
NEW YORK, OCT. 19.
The steam-ship Glasgow arrived at New York on
the afternoon of October 16, and the steam-ship
Arabia, at Boston, on the evening of the 17th.
The _New York Herald of October 19 has the
following on the " Situation
It is evident from the result of the reconnais-
ances made by General M'Clellan's forces for the
past two days that the lines of the Secessionist
army are broken up, and that the whole front has
changed its position. That they have aban-
doned Leesburg is certain, and withdrawn from
Vienna, Fairfax Court-house, and Annandale, so
that their front now extends from Acquia Creek,
on the Potomac, to Bull Run and Manassas
Junction, with Fairfax and Centreville occasion-
ally occupied as outposts. A large body of their
forces has also been thrown forward in the direc-
tion of Shipping Point, where they maintain an
efficient battery. This movement is probably to pro-
tect themselves from an attack by the Union army
in that direction. Some apprehensions were felt in
Washington yesterday that the main body of the
Secessionists were about to be transferred to Ken-
tucky for winter quarters, as the resources of Vir-
ginia were inadequate to the maintenance of so vast
a force, in which event the theatre of war would
necessarily be removed from its present site in front
of General M'Clellan's army to a new point. It is
said that the Secessionist troops are very much dis-
contented with their present inactivity, that they
are unwilling to make their winter quarters in Vir-
ginia, and demand either to be sent home, or to
march into the State of Kentucky, where they ex-

lect to find abundance of comforts for the winter.
Notwithstanding that the Secessionists still hold
their batteries on the lower Potomac, our vessels
continue to run the blockade at night. It will be
seen by our despatches to-day, that the accounts of
our victory at Bolivar are fully confirmed. Parties
who arrived at Baltimore yesterday from Harper's
Ferry, however, report that the Secessionists had
renewed their attack on the Union forces under
Major Gould, on Linden and Bolivia Heights, and
that the fight was still going on. Major Gould
felt confident that he could maintain his ground
until reinforcements arrived. Meantime he was
throwing shot and shell at the enemy, from the gun
captured from them on Monday, from the Maryland
Heights. The utmost consternation exists among
the inhabitants of Bolivar and Harper's Ferry.
News from that quarter up to 12 o'clock last night,
however, states that the Secessionists wore driven
back by the splendid fire of the Rhode Island bat-
tery, the captured gun and the two 12-pounders of
the 13th Massachusetts Volunteers, and Harper's
Ferry thus saved from the threatened attack of the
Secessionist chief, Col. Ashby.
';Our intelligence from Missouri possesses much
interest. From the head quarters of General Fre-
mont at Warsaw, despatches were received at
Syracuse by General M'Kinstrey on Thursday, that
General Price had made a stand 25 miles from
Occola, in Cedar County, with 20,000 men.

" When General Fremont reached Warsaw, the
opposite bank of the Osage river was lined with
Secession cavalry, who were soon dispersed by a
few rounds of canister shot. General Fremont
was preparing to throw his army across on a pon-
toon bridge, and force the enemy into a fight, or
compel them to retreat.
"It is stated on the authority of the Cincinnati
Gazette, that Secretary Cameron, on his recent visit
to St. Louis, was the bearer of an order from the
President for the removal of Major-General Fre-
mont, and the transfer of his command to General
Hunter, the delivery of the order being left to the
discretion of Mr. Cameron.

" This authority states that the Secretary of War
was satisfied, upon his arrival at the West, that a
change in the department was necessary, but that
at the request of General Fremont ho delayed the
execution of the order for a few days, but that his
removal is decided on, and will probably be made
on Tuesday.
"While in Cincinnati, General Cameron received
urgent despatches for reinforcements from General
W. T. Sherman, now in Louisville, and despatches
were instantly sent by General Cameron to Chi-
cago, Indianopolis, and Pittsburg, ordering a force
of 8,000 troops to be sent to Louisville without
delay by special trains. Stirring events are,
therefore, expected in Kentucky.
" From Darnestown, Maryland, we learn that

Lntelligence has reached the Point of Rocks that

the Secessionists were advancing in large numbers
towards the Potomac from their former retreats in
the Shenandoah Valley, and would soon make
their appearance at every ford on the river now
passable by reason of the fall of the waters.
" Mr. Muir, of Charleston, who was arrested some
time since when on his way to England, has been
released from Fort Lafayette.

" The Surveyor of New York has seized the ship
John Fyfe, lately arrived from Glasgow, on the
ground that 1-16th of her is owned by a Mr. Bing-
ham, of New Orleans. A despatch has been for-
warded to the president of the Pacific Telegraph
Company, announcing the completion of the over-
land line to Great Salt Lake City, and the opening
of telegraphic communication with the chief city of
Utah territory."
The Confederate batteries on the Potomac con-
tinue to interfere materially with the free naviga
tion of the river ; they are said to be well manned
all along the banks from Acquia Creek to Occoquan
Creek. A Confederate force of 30,000 to 40,000
men is said to bo stationed at Shipping Point.
The news of the speech of Mr. Lindsay at Sun-

derland, in which he advocated the propriety of a
recognition
Governments
of theFr a Southernnce and
England,
cre
sen-
sation in New York, and was freelydiscussed
by
ate bythe
d
the American press.
The Washington correspondent of the New York
Times
writes as follows :—" It is possible and more
than probable that the Mexican
Government will
ask the mediation of the United States to settle the
troubles between Mexico and the European Powers.
It is possible alsothat the
Mexican
Government may
ask the Government of the United States to become
the custodium or trustee of certain properties or re-
venues, and to pay therefrom the interest and prin-
cipal of her indebtedness to European capitalists;
the United States guaranteeing
not only the pro-
per collection and application of
the revenues, but
also their sufficiency to meet the obligations im-
posed upon them. I think the Government of
the United States has informally
expressed
a friendship for the present Government of Mexico,
and a willingness to do anything that is
proper and
possible to insure her from the dangers by which
she is menaced. I understand further that some
American capitalists have already initiated and al-
most perfected arrangements by which they will at
once advance any sum which our Government may
require to facilitate the settlement of the matter."
The Federal Government has appointed Thos. S.
Dudley, of New Jersey, as Consul to Liverpool, and
Amass Mason, of New York, as Consul to Manilla.
Mr. Seward's circular to the loyal States of the
Union, urging that active 'noggins should betaken

for strengthening the coast and lake defences, pub-
lished in New York on the 17th October, caused on

that day the greatest excitement on the New York
Stock-market and stocks, which for reveral days
previously had been steadily advancing, fell from
to 3 per cent., under the impression that a foreign
war was about to be added to the present civil com-
motions. The New York Times and Herald approve
the circular ; the former attributes the issuing of it
to the attitude of the leading European Powers to-
wards Mexico, which has excited the anxiety of the
Federal Government, as it has little doubt the
United States is prepared to extend the utmost aid
to Mexico in her extremity, and to offer armed re-
sistance, if necessary, against the attempts at inva-
sion and conquest which Spain may make, and con-
siders American prestige and national honour are
involved in resisting any effort to plant a hostile
flag on the weakest and most opposed frontier of
the United States. The New York Tribune con-
siders the circular ill-timed and unnecessary. The
Evening Post says it may mean a great deal, or it
may mean nothing, and thinks that as Congress as-
sembles in December, and the State Legislature do
not come together until one month later, Congress
will have time to make the appeal if the general Go-
vernment then requires the aid of the State, and is
of opinion that Mr. Seward's letter needs a com-
mentary to be clearly understood.

A despatoh from the- Washingtotreorrespondent
of the Associated Press says :—" Information has
been received by the Federal. Government, from a
source entitled to credit, that Messrs. Slidell and
Mason, the Secessionist Ministers to France and
England, are not only authorised to negotiate
treaties of extraordinary commercial advantage with
those Powers, but to place the Southern Confede-
racy for a limited period under their protection."
The .New York Shoe and Leather Reporter pub•
lishes statistics to prove that the Southerners are
not as badly off for shoes as has been represented.
It shows that during the past three•quarters of the
present year a sufficient quantity of brogans went
South to supply an army of 400,000 men for twelve
months, and allow three pairs to each man.

The St. Petersburg (Virginia) Gazette has the
following particulars concerning the late reported
naval engagement at New Orleans :—" The Turtle
ran against the Preble without firing a gun, and
immediately sank her by staving in her sides, she,
in the meantime, being fired upon by the whole
squadron, but the balls glanced from her iron form
without doing the least damage. The Tuftle then
turned on the other two vessels, which, seeing the
fate of their companion, endeavoured to get out of
the way, in which effort they were driven on shore,
their crews deserting them."

Commander Hollins, in his report, says he thinks
he will be able to capture and carry them both into
New Orleans. The Preblo cannot be raised. A
large number of arms, prisoners, ammunition, &c.,
were taken during the action. Commander Hollins
confirms the account of the defeat of Billy Wilson's
Zouaves on Santa Rosa Island. Commander Hollins
arrived in New Orleans on the 14th ult. The city
was illuminated on receipt of the intelligence; the
number of men under Commander Hollins was 300,
the Federalists numbered 1,000.
The following order was issued by the Secretary
of War after he had visited General Fremont :

" St. Louis, Missouri, Oct. 14, 1861.
" GENERAL,.—The Secretary of War requests me
to communicate the following as his instructions for
your Government. In view of the heavy sums due,
especially in the -Quartermaster's Department in
this city, amounting to some 4,500,000 dols., it is
important that the money which may now be in
the hands of the disbursing officers, or be received
by them, be applied to the current expenses of your
army in Misseuri, and these debts to remain unpaid
until they can be properly examined and sent to
Washington for settlement ; the disbursing officers
of the army to disburse the funds, and not
transfer them to irresponsible agents; in other
words, those who do not hold commissions from the
President, and are not under bonds. All contracts
necessary to be made to be made by the disbursing
officers.

,4 The Senior Quartermasters here have been ver-
bally instructed by the Secretary as above. It is
deemed unnecessary to erect field works around this
city, and you will direct their discontinuance ; also
those,lif any, in course of construction at Jefferson
City. In this connexion it is seen that a number of
commissions have been given by you. No payments
will be made to such officers, except to those whose
appointments have been approved by the President.
This of course does not apply to the officers of vo-
lunteer troops. Col. Andrews has been 'verbally so
instructed by the Secretary, also not to make trans-
fer of funds, except for the purpose of paying the
troops.
" The erection of barracks near your quarters in

this city to be at once discontinued: The Secretary
has been informed that the troops of General Lane's
command are committing depredations on our friends
in Western Missouri. Your attention is directed to

this in the expectation that you will apply the cor-
rective. Major Allen desires the services of Capt.
Turnley, and the Secretary hopes you may find it
proper to accede thereto.—l have the honour to be,
very respectfully, your obedient servant,
" L. THOMAS, Adjutant-General.
" Major-General J. C. Fremont Commanding
•

Department of the West Tipton, Missouri.

The Evening Post says—We learn that the banks
have offered to take the third 50 millions of the
7 30 loan on the condition that:interest is allowed
from Oct. 1. This Mr. Chase declines to do, and
names No. 1 as the date of this instalment. We
hear also that Mr. Chase, in answer to a proposition
of the banks in regard to the 100 million 7 per cent.
bonds which he is authorised to issue, informed the
agents of the banks that ho had an offer from fo-
reign capitalists equal to 6 per cent. interest at par
for the entire loan. Mr. Chase of course expressed
his willingness to entertain offers from the asso-
ciated banks at anything near the same terms.

ME BAST INDIA AND CHINA MAILS.'

Theeheavy portion of these mails.arrived at South-
ampton yesterday morning, at eight o'clock, by the
Peninsular and Oriental Company's screw steamer
Pera, Capt. T. Jamieson, which left Alexandria on
the 20th ult., Malta on the 23d, and Gibraltar on
the 27th. Fine weather was experienced through-
out the voyage, with north-westerly winds between
Alexandria and Malta, easterly to Gibraltar, south-
westerly (strong) to Lisbon, and northerly. .across
the Bay of Biscay and up Channel.
The Pers.' brought 61 passengers (of whom 25
were first-class, 15 second, 12 children, and 9 deck),
a list of whom was published in ?he Sun of Wed-
nesday, and on freight four packages of specie,
value £3,800 sterling; 1,814 bales of silk, 96 cases
of dates, 600 bags of wheat, 500 bags of beans, two
cases of indigo, and 84 packages of sundries.

A letter from Melilla states that the Kabyles of
Benisiar, having heard of the departure of Muley
Abbas for Spain, had made peace with the garri-
son. This tribe, it will be remembered, was opposed
to the introduction of provisions into that fortress.
In proof of their sincerity the Moors handed over
to a sailor the value of a boat which they.had taken
away from him, and brought back some heads of
cattle belonging to employes at Melilla. Abundance
of all articles of consumption from the Moorish
frontier is already noticeable. The settlement of
the new boundary line was expected. The Moors
affirm that they will for the future live with the
Christians in as peaceable a manner as with their
own brethren,

The Gibraltar Chronicle says that Don Rafael
del Moral, a gentleman belonging to the Govern-
ment telegraph department in Madrid, has recently
been taking soundings and making the necessary ex-
amination to determine the best manner to connect
by a submarine cable the Spanish coast with Ceuta.
He is of opinion that the cable may be laid
either between Tarifa and Ceuta or Marbella and
Ceuta ; but his own opinion is most favourable to
the line from Marbella.

Exchanges at Gibraltar were last quoted as fol-
lows :—London (90 days' date), 49 to 11-16; Paris
(ditto), sf: 25c. ; Marseilles (ditto), sf. 26c. ; Genoa
(ditto), sf. 27c.; Brussels (ditto), sf. 30c.; Madrid
(8 days' sight), die. ; Cadiz (ditto), -1- dis. ; Malaga,
(ditto, par ; Seville, I,- die. ; Alicante, Q dis. ; Va-
lencia, 1- pm. ; Barcelona, -1 pm. ; Spanish pillared
dollars, Ferdinand, 2 per cent. pm.—no demand;
ditto, Carolus, 22 per cent. pm.—in demand. Silver
five-franc pieces, I per cent. pm. ; Mexican dollars,
3 per cent. pm.
Freights to London and outports in the United
Kingdom, 255. to 30s. per ton by steamer, and 10
per cent; Brazil and River Plate, 12 dole. per ton,
and 10 per cent., nominal ; Gulf of Mexico and
Havannah 12 dole per ton, and 10 per cent nominal.
Three French transports, with troops for China,
were in harbour at Alexandria, and also the usual
Egyptian fleet, when the Pera left that port on the
20th ult.

Her Majesty's ships Hannibal, Melpomene,
Hibernia, Wanderer, Intrepid, and Doris were at
Malta on the 23d; and the Trident, Malacca,
Scourge, and Procris at Gibraltar on the 27th.
The Ceylon steamer, Capt. W. R. Evans, from
Southampton on the 20th, with the East India,
China, and Australian mails, arrived at Gibraltar
on the 25th, at 7 a.m., 4 days 21 hours out, and
went on to Malta and Alexandria the same day •
The steam ships Olympus, Capt. J. R. Bell, 5 days
from Liverpool, and Palermo, Capt. W. Taylor, 19
days from Glasgow and 2 from Lisbon, arrived at
Gibraltar on the 25th, with cargoes for Genoa, Leg-
horn, &c. The Bceotia steamer, for Liverpool,
arrived at Gibraltar from the eastward just as the
Pera left.

The Bfitish brig General havelock, from New-
port for Malaga, with a cargo of coals, sank on the
sth ult., 70 miles south-east of the Sorlingas, after
being in collision with another vessel; crew saved.

Advices from Cadiz state that the keel of a new
Spanish 50-gun frigate, to be called Las Navas de
Tolosa, was to be laid in the arsenal of the Carraca
on the 30th of October; and the keel of another
frigate for the Spanish Government is about to be
laid down in the arsenal of the Ferrol.

During the passage home the Pera spoke the fol-
lowing vessels :—Oct. 23, the Peninsular and
Oriental steamer Euxine, with the outward Bombay
mails of the 12th, steering to the eastward ; 27th,
in the Straits of Gibraltar, the bark Highlander ;
28th, off Cape St. Vincent, the steamer Laconia ;
and on the 30th, at 4.30 p.m., the Peninsular and
Oriental steamer Tagus, bound for Vigo, steering
to the southward.