The New York herald., 1862-12-21


THE TUATION.
great crisis hes come upon the Cabinet OF Mr.
Lincoln, the effects Of which may operate seriously
npon the future prospects Of the war Mr.. Sew.
ard-acting under the pressure Of the leading
radicals Of the Senate in caucus assembled
closed his portfolio as Secretary Of State, and
respectfully rendered his resignation to the presi
dent. This step may be but the initistory one
towards total reconstruction of the Cabinet-a
measure for which the public mind is not wholly
unprepared and measure also which those who
honestly desire that the war should be efficiently
conducted TO the end of suppressing rebellion and
restoring the Union, would rejoice to see inau-
gurated.
The condition and spirits Of our army on The
8appahsnnock are represented as excellent
Their confidence in General Burnside is mistaken,
despite the disaster at Fredericksburg, the gene
raj opinion being that not he, hut General Halleck
and Mr. Stanton, are responsible. IL is further
stated that after the attack upon fredericksburg
had been determined upon General Sigel re-
auested permission TO lead column OF forty or
dfty thousand men across the fords Of the Kappa.
hammock, with a view TO turn the left flank Of the
rebe! army, and attack il upon the flank and rear
side in front. This permission was refused, and
General Sigel marched directly to Falmouth, but
only in time 70 find General Burnside there after
his army had been defeated and had rccrosscd the
river
The War Department received General Fosters
report Of the late battle st Kinston yesterday.
We published the whole details OF the affair yes
terday morning, in advance of the Information at
the War Department.; but as General Fosters
despatch js official We give il to-day.
Not the least important part Of our news this
morning is the history and destination of the cele
brsted Banks expedition. Being relieved from the
necesslty Of further silence, we feel at liberty TO
state that General Banks goes to the Gulf, win
rendezvous at Ship Island. and make his head
quarters at New Orleans, where he will supersede
General Butler, in command, cut of the rebels
supplies from Texas, and keep an eye on the
French Mexican feet. We commend the interest
ing account Of the strength and movements Of the
expedition to the attention OF our readers.
The news from the Southwest indicates serious
Decentralization in the rebel army. Many Of the
troops Of General Hndman are said to be desert.
ing to General Heron in disgust with the rebel
cause.
The schooner By George, bound iron Nasssn 70
some rebel port with q csrgs Of salt and coffee,
WAS captured recently and sent to Key West by
the commander OF the Saginaw, Lieutenant
EngLsh.
MISCELLANEOUS NEWS
Tbs London Array dts Nary Gazette Of the
9th Instant, says 1t Ii currently reported that Cap
tan Hugh Dunlop, c. b., now second in command
on the North America and West India Station,
will succeed Captain Claude II. N. Buckle. g. b.,
Captain Superintendent OF the Royal Victoria Wet.
FALLING Yard at Depticrd. whose period OF ser
vice expires this month
we have received dates from Rio Jspeiro Bra.
sil, 70 the sth Of November; but our files Of the
Correio Mercdntl and .yo,redi 10 Concrete do
bul ConSain any news VI lmnOrlauce ihc COulf.
try was in the enjoyment Of peace, health and
plenty at the latest date Commerce Was also
tondng upwards.
From Buenos Ayres, now the capital Of tire Ar.
r. entine Confederation, we learn that commerce
fradc and general prosperity present the most sa
tisfaotory features. The city proper il enlarging
daily population increasing, business reviving and
confidence In the administration restored The
importing trade In comestibles Is brisk, and giving
good returns; dry goods houses who wish TO sell
realize large profits; but an uneasy feeling that
lie present stock cannot be replaced for an inde
finite period induces the majority Of the leading
iinporters TO keep their warehouses locked unti
they can sec their way more clearly.
From Paraguay there IL nothing Of consequence
The son Of the late President Lopez has been una.
nmonsly chosen to succeed his father. Outs one
menbor OF Congress objected, on the ground that
ne oitce Of President was not hereditary; but he
,sas Drowned down by the rest o: The members.
~ afterwards was the ligsi v vete ~ young Lo.