The Sun.
London, England, 1861-07-13 00:00:00

AMERICA.

SOUTHAMPTON, FRIDAY.
The Hamburg-American Company's screw steam
ship Ba'caria, Captain E. Meier, which left New
York on the 29th ult., arrived off Cowes early this
proceeded to Hamburg after trans
morning, and
shipping mails, &c., for this port.
A despatch from Washington, of the 28th ult.,
has the following :
,4 The belief of an impending advance in force upon the

rebels still prevails among the officers of the army of inva-
sion. General M'Dowell and acting Brigadiers Hunter and
Ileintzelman, however, were all on this side of the river

until late this evening, a fact which does not seem to augur
well for an immediate advance of troops.
" The Secretary of War is busily engaged upon his forth-
coming report, and will see no one except his immediate
officers until it is completed. It will be one of the most in-
teresting and important documents that ever emanated from
that department, exhibiting in full the number, condition,
and efficiency of the immense force now in the field, num-
bering altogether nearly 300,000 men. The alacrity with
which the people have responded to the call of their coun-
try, when its very existence was menaced by rebels and
traitors, will be referred to and commended in the strongest
terms. A clear statement of the enormous beef and other
contracts that have been made to carry on the war will be

interesting.
"Already practical measures of legislation are being pre-
pared, to be proposed to Congress at the extra session.
Senator Wilson, it is understood, has been in consultation
with Congressmen, as well as high officers of the Govern-
ment, and, as chairman of the Military Committee, at an
early day of the extra session of Congress will produce a

series of bills, proposing—
" 1. To legalise Executive action concerning the present
defensive or warlike preparations ;
" 2. Giving the sanction of law to the plan already an-
nounced for a permanent increase of the army;
" 3. Retiring infirm and disabled army officers ;
" 4. To organise from the militia a hundred regiments as
a national guard, to be all clothed and armed alike ; _

" 5. To increase the number of cadets to the extent of 68,
or to the number of Senators, and authorising the President
to fill the vacancies caused by resignation or otherwise in

that institution.
" Besides, it is designed to recommend an appropriation
of 200,000,000 dollars to carry the defensive measures into

effect.
" The above ars substantially the objects contemplated.
" The State Department is actively occupied now with
foreign affairs. By the last arrival from England there are
no indications that she has changed her views respecting
affairs on this continent. Ncither has she shown any dispo-
sition to reply to the proposition of our Government, giving
in its adhesion to the Paris Conference respecting privateer-
ing, notwithstanding it was submitted more than two
months ago. This fact, taken in connection with other im-
portant naval and military movements along our extended
coast and on the Canadian frontier, has opened the eyes of
the Administration. Her secret designs are perfectly ap-
parent to the Government, and a most vigilant watch will
be kept as to her movements. Additional instructions are
understood to hays been despatched to our naval comman-
ders, and in the event of any interference on the part of her
Majesty's squadron with our blockade, no matter what the
pretext on their part, her Majesty's Government will be
taught a lesson which she will not very soon forget.

" Respecting the Dominican imbroglio, Spain has not yet
replied to the note of our Government. While England
and France seem fully to understand the purposes and de-
signs of that Government, and are quietly lending their
countenance to Spanish aggressiwas on this continent, the
United States are unable to get one word of explanation."
On the question of raising the supplies required
by the Government, another despatch from Wash-

ington says :
" The Secretary of the Treasury, preparatory to the meet-
ing of Congress, is devoting all his energies and time to the
financial affairs of the country, examining the estimates, re-

vising the receipts from customs, and deliberating as to the
best means to provide for the extraordinary expenditures
already made and hereafter required to carry on the war
and to sustain the Government generally. The precise
manner of providing ways and means of course absorbs
Secretary Chase's most earnest thought. He positively
dec lined seeing any callers to-day, except members of the
Cabinet, who frequently visit each other to confer about
public concerns.
" It is understood that the Secretary has three plans for
meeting the financial requirements of the country :
" 1. A popular loan, in sums of 50 dol. and upwards, bearing
7 3-loths per cent. interest. It is believed that the patriot-
ism of the people in the various cities, towns, and commu-
nities of the country will prompt the taking in this way of
tell that will be required by the Government, and the rate of
interest proposed renders the calculations of the simplest
character. Thus 50 dais. would be one cent. per day ; 100
dols. would be two cents, per day ; 1,000 dols. 20c. per day,
and so on. The honest meeharkle, operative, or farmer ponneaz-
ing the slightest degree of intelligence, instead of packing
his few hard-earned dollars away in a stocking,-leg, or hiding
them in the stone wall, because of a fear to risk them in the
bank, or of being cheated out of them by the financial
sharks, can easily see that by depositing them with the
specified agent of the Government they will be safe, will be
earning them something handsome, and at the same time
they will be rendering a valuable service to their country.
" 2. This plan, not favoured so much by Secretary Chase
as by other members of the Administration, is for a foreign
loan. There is undoubtedly a policy in this, which is appa-
rent to every one, and is no doubt wise. If the plan suc-
ceeds, it will exhibit the farsightedness of President Lincoln
who proposed it. The opinion is that such a foreign loan
can be obtained at an interest of from 6 to 7 per cent.
" 3. A plan is to issue smaller Treasury notes, bearing
something like half the interest of the first of the above-
named plans. It is areued and believed that such notes
would enter largely into the circulation of the country.
" The amount of money to be asked for will not exceed
250,000,000 dole., and it is believed now that sum can be
reduced 25,000,000 dols. It is confidently expected that,
with the three plans thus set forth, the amount of money
required can be easily obtained. The best assurances of
this have already been given by representatives of the
money power of the country, and by those who reflect in
the truest sense the real sentiment and wishes of the loyal
people."
The Herald's correspondent on board the United
States' steamer Pawnee gives the following report
of the engagement on the Potomac, in which Capt.
J. 11. Ward, who commanded the flying flotilla,
met his death :
" United States' steamer Freeborn, off Aquia Creek,
Potomac River, June 27, 1861.
A. terrible fight took place this evening between the
the Freeborn,
some of the men belonging to the Pawnee, and
rebel troops at Mathias Point, resulting in the death of
Commander
James H. Ward, commanding the flying flotilla.
piercedlle was by a rifle bullet while pointing the fore-
castle gun. Four seamen belonging to the Pawnee and
three of the Freeborn'secn
crew were wounded, some of them
very seriously.
" Yesterday, while runninglbetween the Wicomico river
Ward and Britton's Bay, Captain
sent a tugboat he fell
in with up to Aquia Creek, with despatches to Captain
Rowan, of the Pawnee, the substanceof which was to
request Captain Rowan to send a force
of
Mathias Point, to meet the Freeborn there, r
with the tdthoeweniethw
of taking measures to effect a lodgment at the
destroy the thick woods that fringe the higil)oeban'n;csand to
v
looking the river, and which could serve to conceal over-
looking
troops, and to mask such batteries as they might erect there.
In the evening the Freeborn ran up to Swan Point, and
anchored there for the night. At daylight, the Reliance,
one of the flotilla, arrived. at Swan Point, having in tow the
first and third cutters of the Pawnee, with 21 men, under
the command of Lieutenant J. C. Chaplin ; and immedi-
ately the Freeborn weighed anchor and ran into Nangemoy,
where a 12-pounder howitzer was taken from the schooner
Dana and placed on board the first cutter, with the view to
it being placed in position behind a sandbag battery, to be
erected on shore. The Dana was then lashed alongside the
Freeborn, and the Pawnee's first and third cutters were
towed by the Reliance, and the whole expedition moved off
in the direction of Mathias Point. Considerable time had
been expended in getting the Reiance off a shoal, on which
she had grounded, within rifle shot of the shore where the
rebels were encamped. They did not, however, fire on
the Reliance.
"On reaching Mathias Point the Freeborn anchored,
broadside on, opposite the wooden building so often fired on,
to the left of which is a gentle slope, leading to the top of
the table lands, and in the left of that a ravine called
Jotank Swams. Beyond the ravine, still further to the left,
is a dense thicket of pines, running a considerable distance
along the high bank to the extremity of the Point. The
Reliance anchored a little lower down than the Freeborn,
while the Dana anchored further out. On board of her a
hawser was madeefast, connecting her with the Freeborn.
"The Freeborn then opened a cannonade from both guns,
throwing in shot and shell in various parts of the land
to check the advance of an enemy while the boats
of landed,tra; About an hour after we had opened fire a flag
right, aena
a b was seen waving on shore, considerably to the
oat being sent on shore soon returned with
a negro, who reported himself a runaway from Dr. Hoe.
He said the en
landing was
coon effected,
consisted of at least 809 strong. The
efftn ected, the boats employel being those
of the Pawnee, Captain Ward going off in the first cutter.
The landing was Ps
soon gained, when the yaccomplished, the table land was
rebel(pickets opened fire on our men,
which the latter returned, ) n seeing this the Freeborn's
boiit, with eight men, the coxswain
miller command of Masteee.eente and your correspondent,
John Kellogg, put off
from the Freeborn. On grounding, the other boats put off,
Captain Ward telling Mr. Kellogg to coverm the retreat of
the other boats, which he did. enemy appeared,the and
the men lay on their oars between the lre aetorn and
shore. Meanwhile Captain Ward went on board the Free-
born to superintend the working of the guns to cover our
second landing, which was effected by the three boats,
when, the acclivity being climbed, pickets were thrown out
to the right and left, extending to the right considerably