The New York herald., 1862-01-29


and personal property was unlimited snd it is this
property which will form the basis OF the notes
proposed to be issued. With ample taxation
these will be the very best medium, because the
whole property of the country will be held for
their redemption. He argued in favor of the con-
stitutional power to issue demand notes, and
make them legal tender in the payment of debts.
In conclusion he said that he had an abiding faith
in the determination Of the people to maintain the
| government. An early and successful advance Of
the army was of the utmost importance, and the
passage of this bill was needed to sustain the
| financial credit of the country to prevent foreign
Intervention and to vindicate the invincibility of
our forces who anxious to be led on to victory.
From the Upper Potomac we learn that Dam
No. S has given way under the pressure of the
waters at those points where the rebels had weak
ened it. Other damages have taken place above,
and at Dam No. 4, and between Dam No. and
canal has thus been rendered useless for the pre-
sent, and the repair Of the damages will take
several days to accomplish, and are estimated to
cost between twelve and fifteen thousand dollars
From Cairo via Chicago the tidings are very i'm.
portant 1t is reported that the rebel chieftain
JEFF Thompson has been captured, and that three
Tennessee regiments have been intercepted on
their march to Sykestown.
Seven of the bridge burners in Missouri have
been sentenced to be shot and the sentence has
been approved of by General Haeck.
From rebel sources intelligence has reached us
of the chasing of the rebel privateer Calhoun,
while on her way from Havana to Charleston, by
one of our feet, and the news goes on further to
state that the rebels abandoned and burned her to
prevent her falling into our hands. The Calhoun
was q side-wheel steamer of l,05s tons burthen'
and was built in this city in 1851. She was I75
feet in length q feet in breadth and IL feet Deep
She was formerly engaged in the trade between
this city and Southern ports. and was one
Of the vessels seized by the rebels at the
commencement of the rebellion and trans.
formed into vessel-of-war. She was considered
as moderately good vessel and bore the flag of
the notorious Captain Hollins during his memors-
bic attack upon the blockading deet off New Or
four FOUNDER and two eighteen FOUNDER Dahlgreu
guns.
From the same sources it was reported that after
the retreat (query rout) from Somerset the rebels
rallied at Monticello, where they intended to make
q firm stand. Instead Of this being the case, Mon.
tcello is now in the possession of the Union troops
under General SchoepG. Where General Critten-
den (the rebeD has gone to, or where his forces
are, no one can yet tell; but If they are to be
found anywhere, General Carter's Union Tennes-
seeans will do it.
An important change has taken place among
the chiefs of the rebel army. General Beauregard
has been transferred to Columbus KY, and Gene
raj Gustavus W. Smith (well known in New York;
is to take charge Of the army Of the Potomac.
General Beauregard is to act under General A.
Sydney Johnston, who could not make any impress
sion on the forces under General Reynolds at Cheat
Mountain, and who is not at all likely to be more
successful against General Buell.. General Beao.
regard is now placed opposite General Halleck
who is ably assisted in this particular locality by
General Grant.
The news Of the capture Of Cedar Keys by our
forces has been more than confirmed by the intel
ligcnce just received from the South.
We publish in to-dsy's HERALD another interest
ing selection Of news from Southern papers. the
most interesting part OF which is letter written
to the Richmond Enquirer, from gentleman who
has lately returned to Virginia from Europe He
says that the general expectations entertained by
the rebels when he left the South last summer. to
the effect that manufacturing interests of Eng
land and France would force them TO speedy re-
cognition of the Southern contederacy has turned
out to be great error. He was the bearer of
messages from commercial men in the South to
English merchants in reference to opening trade
with the South irregardless of the federal block
ade. When he told the latter of one hundred per
cent profits they said:--"Gve us ten per cent, or
even five, with risk, and we are your men,
The rebel fallacy in reference to speedy recog.
milton and interference with the blockade wa
prominently apperent in England.
The rebel agents in Europe had been tampcring
with English editors, in order to force public
opinion to acknowledgment of the necessity
for a rebel confederacy.
Sixteen thousand square feet have been secured
in the agricultural department of the Great Inter-
tional Exhibition in London this year. The cor
respondent Of the Enquirer says "he was obliged
to the allotment Of space in his own indivi.
dual namc but II was done for and in behalf
Of the confederacy.'
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