Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1861-12-08

. INV OkLkANe, Les .. 1oB4s
Our citizens have been much excited for the past
few days BY the capture of two Of our small lake
steamers and schooner By the lincoln gunboAt
New London in the Mississippi Sound. This has
led rs to be viglant and all vessels COW leav>
ing here for Mobile are conveyed by our gunbosts,
including the regular mail steamers. There has
been the greatest inertness and Encouragement on
the part of the authorities in not having had long
since force of some dozen gunboats Of proper
build and armament to keep the sound clear. As
it Ii, we have but three or four ANAL steamers
which have been made into gunboHts, and are of
but little service. Il was reported yesterday
morning that two Of our gunboatE, the PAmlico
and Florida, engaged Lincoln steamer Of Horn
Island, and that after exchange Of shots, the
Lincolnite retired. This may be called most
valiant naval engagement, but certainly ii does not
show much of the AP. GATEsBY JONES spirit in it.
The latest from Pensacola reports all quiet It
seems in the late engagement with the LINCOLN
feet the frigates Niagara aHd Hartford suffered
severely in their spArs, rigging and hullS, as well
the other vessels, which are now busy repairing,
showing that our batteries proved too hot for them
Four steamers, and several ships were laying out
side. 1t ia supposed they are awaiting reinforce
ments to commence the attack. Our army there
Ia reported in fine spirits and anxious to continue
the dance, which will no doubt be renewed in
few days The Garrison at Pensacola is being re-
inforced by Nississippians.
Our Legislature has adjourned Until the 18th in
stant for the purpose OF enabling the travelling com
mittee to make their reports. The Committee on
Banks and Finance are already in this city, and
under instructions Of joint resolution are in confer
ence with the Bank Directors in relation to devils
ing mode for the relief of our cotton plsnters
by authorizing the planter to issue Supply notes"
negotiable for the purchase Of plantation supplies
to operate as lien on the crops. Also to ascertain
upon what terms and at what rate of interest the
Banks viii loan to the State sufficient sum
in specie to pay the Confederate war tax,
estimated for Louisiana at two millions, by
which the State will make the bonus of the per
cent offered by the Confederate Congress where
any State shall assume the payment of its share Of
the war tax. Cur banks are already in the power
Of the Legislature having forfeited their charters
by the suspension Of specie payment, bat it Is pro
posed to relieve them by not forcing them into
liquidation and calling = convention to ratiiy the
act Of tho Legislature in this regard. There aeems
to be strong feeling of hostility the part Of the
msmbere against the banks and the Directors being
aware of the fact viii no doubt be extremely accom~
modatiug and trest the committee with distinguish
ed consideration and hospitality. Our bank vaults
are full Of specie and can stand any amount Of
drain, and our city itself is BY ne means on the
verge Of poverty, the late assessment for 1861,
showing the amount of real and peraonal estate
taxed to be 1924 ia 4O3 but this ia not the real
wealth Of the city By, st least Ope-third Of the
amount.
1t is the opinion OF the best informed circles here
tbSt England will treat the embassy question of the
arrest Of Slidell and Mason according as her
interest and policy shall demand in reference to the
cotton supply and the joint expedition to Mexico,
which has already sailed. The quasi acknowledge
ment of our COnfederagy by Mexico, showsjthAt Ju
aFez does not put much confidence in the Lincoln
dynasty, and if any treaty was on foot STIMULATING
grants End privileges IN favor of the United States
feel confident that our Representative in Mexico,
Col. PIeKErT has scrunched" il.
We are ell daily looking for most desperate
battle TO ks fought in Kentucky.
BKN-TI-FoOLIe