The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-09-03
New York, Tuesday, September 3, 1861.
THE SITUATION.

New York, Tuesday, September 3, 1861.
THE SITUATION.
Information reached Washington yesterday af
ternoon, which, if true, may make q considerable
change in the fortunes of the Southern rebellion.
News arrived, by way of Louisville, from Rich
mond, that Jefferson Davis was dead. Our latest
accounts of him were to the effect that he was
very ill, and that the rebel Congress hal ad-
iourned to await his recovery. If the report
of his death is correct, Mr.. Stephens, the Vice
President, is now at the head of the rebellious
States, and, singular enough, recent accounts of
Mr. Stephens report him also to be very sick at Ma
nassas. 1t appears that the rebel flags within sight
halfmast yesterday, and this would seem to con-
firm the rum0r Of Mr. Davis death.
skirmishes were going on all day yesterday
between the rebels and the outposts of the Union
army near Bailey's Cross Roads. Tho rebel
eartlworks on Munsons Hill are completed, and
1t is momcntarily expected that they will open fire
upon the camps at Bailey's Cross Roads. In this
event it will Of course become necessary to silence
them, and q general engagement may thus be
provoked.
The State Department has received informa.
sion from Mr.. Adams, our Minister at London,
that in his opinion the British government does
not contemplate any change Of position towards
this country SO long as the blockade is continued
Mr.. Secretary Chase has issued an important
appeal to the people (Which we publish else.
where) in behalf Of the popular loan, showing
that it is the interest as well as the duty of
every one who has money to invest, to place it,
at this crisis, in the hands of the government
He points to the fact that the real and per-
sonal values of the loyal States amounts
to eleven thousand millions of dollars; that
tho surplus earnings of the people of those States
amount to four hundred millions, whereas the cost
Of the war on the calculation of high military ar,-
thorities. if judicially conducted, will not be more
than two hundred and fifty millions. The interest
on loans at the rate authorized by Congress
1y, 1910 per cent-w be on loans of $50, one cent
per day; on 500, two cents: on $500 ten cents;
on $1,000, twenty cents, and on IS 900, one dollar
Mr.. Chase urges the speedy acceptance Of this
loan, and announces that books will be opened at
once in the several cities and towns in the United
States to receive subscriptions.
We have some further details of the affair at
Fort Hatteras. The steamer George Peabody ar.
rived at Fortress Monroe yesterday with one of
The prizes in tow. She reports that the Harriet
Lane was got off the shoals on Saturday afternoon
but not without throwing her coal and her guns
overheard. 1t is said that the guns will be re.
covered Another United States gunboat-the r.
B. Forbes-also went ashore on Smiths Island.
near Cape Charles, on Sunday. Three propellers
were at once despatched from Old Point to her as
sistance.
The irigate Minnesota arrived at this port yes.
terday with GA of the prisoners taken at Fort Hat
teras, including Commander Barron and the other
officers who surrendered.
We have intelligence by way of Cincinnati that
collision took place at Boone Court House. in
Western Virginia, on Sunday, between the Union
and rebel forces, in which the latter were badly
beaten, losing thirty killed. forty prisoners, and
large number wounded. The Union troops, it is
said, burned the town. We have no information
as to the regiments engaged, nor any more minute
details of the action.
BY the North American at Father Point we have
news from Europe to the sd of August. The
London Times publishes letters from Mr.. Russell
to the 5th of that month. The Special Core
spondent" still harps on the "demoralizcdr and
''insubordnate' state of the Northern army. but
gives Gen. Mcclellan credit for manyreforms. He
says that the rebels consider themselves "safc. if
they can hold out to October, and asserts that at
the end Of the year tho federal government will be
"further from its aim than ever" The cotton sup
ply and slavery questions engaged the attention of
the great Social Science Congress sitting in Dublin
The former was treated by Mr.. Baseley, who
read q paper entitled " With Cotton. En-
Repatriation" He asserted that cotton is now
Lid down in his warehouse mt twelve and a half
per cent in excess of the price pai! to American
planters; whereas, to l,ring cottan from Deerar.
would cost two hundred per cent on the price paid
to the ryots of India, owing to tie difficulties Of
transportation. Doctor McGowan said that the
Statesmen of America" were delighted at the
prospect # being relieved from cotton monopo.
ly. Miss Realn n,-a colored lady-rca a PAPER
On "AInrrjean slavery and its Influence in Great
Britain II hevalier, of France, denounced the
herl' t ihe same occasion.