The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-10-28
THE SITuATION

The great naval and military expedition which
has been for some time preparing and assembling
from different points, sailed from Hampton Roads
yesterday for its destination. The squadron is
composed Of no less than hundred vessels. The
naval portion is under the command of Commodore
Samuel +. Dupont, and the military portion is
commanded by Gen. Thomas w. Sherman. The
appearance of this feet as it left Fortress Monroe
yesterday is described as one Of the most magnia-
sent scenes in the annals Of American history.
When the feet is proper time at sea it is our in
'ention to give few facts connected with this
grand expedition which it would be manifestIy
snwise to make public at the present time.
We publish to-day some highly interesting news
rom the South, gathered from rebel sources;
tmong other things the circular of Mr.. Memmincer.
the Secretary Of the Treasury under the rebel
government, relative to the produce loan, and the
appeal Of the cotton planters for relief. Mr. Men,
ninger, in the name Of the Cabinet. declines to
trant any relief-eithcr by the purchase Of the
cotton crop or an advance upon its hypothecated
'alue. He declares that the South, being now en-
ragged in a gigantic war. needs money and no
PLANTERS notes or produce, and explains that what
he government requires is loan from tho
'anters, secured by Treasury notes, which now
orm the currency Of the Confederate States. He
dvises the planters to apply to the
'anks for relief, and recommends them
apply themselves in future to the
ultivation Of grain and other products rather
han to that of cotton. The proceedings of
he Southern Commercial Convention at Macon
"a, also form part of our Southern news to-day
nd they are very significant, from the fact that
series of resolutions, tending to cut off the trade
etween the North and South, and New York in
articular, were tabled, upon motion Of General
Fould proiong the war, and render impossible
he reconstruction of commercial and financial re.
atoms between the North and South. The impor-
unity of the cotton planters on the one hand, and
he rejection of these resolutions on the other, we
eceive as indications of growing discomfort with
he rebel government among the commercial classes
the South, and as evidences of desire to
esume the old commercial relations with the
forth, which, for many years, ministered to the
rosperity and grandeur of both sections of the
ountry.
Our army in Western Virginia continues to be
ctivey employed. Brgadier Gen. Kelly attacked
,omney on Friday night, after march from New
reek, and completely routed the rebels taking
ONE prisoners, three pieces of cannon and all
heir wagons and camp equipage, with a very
rfing loss on our side. The rebels retreated to.
ards Winchester. We give to-day Gen. Kelly's
f6cial report Of this brilliant affair to General
colt, which, it is said, greatly elated the veteran
commander
Information reached the government yesterday
hat the rebel army in front of Washington has
cen divided, in expectation Of an attack by our
orces at other points. large body had gone to
seesburg, where General Gustavus w. Smith COM
hands, fearing renewal of the attack by General
tanks column, and an immense force has been
oncentrated at Norfolk, it was supposed, in anti
ipaton that our naval expedition was to make q
demonstration in that quarter. The main body Of
he enemy is still at Centreville, as previously
ecertaned. Along our lines there was no change
esterday.
We give to-day the story concerning the origin
{ the reconnaissance at Balls Bluff on Monday
sst, from which it would seem that General Stone
cted without the direct orders of General McClel.
IN, whose instructions were to watch closely the
aovements of the rebels, as he expected to force
hem into making demonstration by the advance
General Mccall from Drainsvillc towards Lees.
urg, but he did not contemplate the crossing o,
he river by any Of Stones division. Every effort
owever, was made by General Mcclellan to sun
ort the troops of General Baker, upon learning
hat they lad crossed the Potomac, by ordering
be advance u General Mccall from Lapgley's, t