Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-08-04

The greatest enthusiasm is SAID TO prevail
among the rebels, who are now more confident
than ever of success at Richmond, and the large
increase of their army gives them the belief that
they will receive aid from abroad. while they feel
an inherent strength at home that they never felt
before. The CONSUMPTION brings in thousands of
recrits daily.
About seven hundred refugees from Memphis
are at Grenada, organizing themselves into guer-
rilla parties. They are furnished with their
equipments from Mississippians. and are designed
principally to operate against Memphis.
Intelligence was received last night that Grand
Junction is in the hands of Gen. Bragg. / can
not state the fact with certainty, but ] know that
he is moving with his army, which numbers
probably 6O,OO0 men, If not more. Gen. Grants
army is concentrated at Corinth, which, if the
above news is true, places the rebels between
him and Memphis. There is a large force here.
A man named DR.. Seftridge, formerly a resi-
dent of Memphis, but lately from the North, was
captured, with six thousand dollars in gold, last
week, with which he was buying cotton. He is
at Grenada. in company with a number of cotton
traders who have been picked up by guerrillas.
The rebels got fifteen or twenty thousand dollars
out of these adventures. Nearly all the ven
tured out have been picked up.
MEMPHIS. July %. via Cairo. July 3O.j
l have the Grenada appeal OF the oath and
25th.
The former contains a detailed account of the
last fight at Vicksburg, dated the 22d, which is
since the reported capture of the Arkansas Dy
Federal rams. There is 10 truth in that report.
| send you the papers. The Arkansas still lies
under the batteries, and is not injured to any ex-
tent.
The correspondent of the Mobile Neios saws:
"Tbe enemy is evidently in constant fear of
the close proximity Of the Arkansas, and, since
the latter arrived at Vicksburg, they have been
constantly employed in Smelling the river i'm front
of the town with a view to sinking her; but so far
they have not inflicted any damage on her, as the
shots either fall short or go over, sometimes doing
damage 10 buildings on the levee. In this way
the large wharf-boat was struck on Friday
evening By two large shells. which entered
through the roof and went ont at the bottom,
sinking the boat. The enemy has his mortar
boats anchored above the bend, behind "A point of
timber, and not being able to see the Arkansas,
they throw shell at random, and have Il line of
steamers in the woods. extending to the river OBJ
Dosite the city, who. by means of signals, keep
their gunners fully posted where each shell falls.
BY this means. they manage sometimes to come
very near striking the Arkansas"
John B.. Thompson. of the Southern Literary
Messenger, who writes for the Appeal over the
signature of Dixie" SAYS: "LoFd Edward St.
Maui left Richmond to proceed to New York BY
way of Fortress Monroe. That young gentleman
went down to Berkeley yesterday and returned to-
day by flag of truce. He is the son of the Duke
OF Somerset, and has been in America but a few
weeks. His purpose was to make IA rapid tour of
the Yankee States, and take steamer at New
York for Liverpool. On arriving at the lines he
made application to Mcclellan for leave to pass,
and met with a prompt refusal. The reasons, as
stated by Lord ST. Maur, were, that he had vio-
lated the Queens proclamation concerning the
neutrality of her subjects. and Stewards prOcla-
nation of non intercourse between the loyal and
rebel States, and that he had thereby forfeited
his right. as an English citizen. Lord ST. Maur
was at Richmond during the late fight, and had
been an eve witness from a most favorable point
OF observation of all the battles down 10 the re-
treat OF Mcclellan to his gunboats. The incl
Witty did not stop with sending him back to
Richmond. His baggage remained all night on
the steamer, and thus the Duke of SOmerset's
son was packed off without Il change of linen,
under the assurance that his baggage would be
sent up by Il flag of truce Doubtless it will be
when it has been thoroughly searched for treas
enable matters to compromise its owner"
The same correspondent says that the Federal
prisoners have all been transferred to Belle
Island, near the city. The Island rises in the
center to a bald hill, ninety feet high. and on its
cool slopes tents are pitched for the prisoners, who
are glad enough of the change.
Major General Magruder had left Richmond to
take command ct his department beyond the
Mississippi, and was stopped at Columbia to re-
turn and answer TO a charge of having been
drunk at the Hte'battle, as well as being IA com
mon drunkard.