The New York herald., 1863-01-12

ceived at this Office. National postal currency only will
be taken Tor fractional parts Of q dollar.
THE SITUATION.
Our intelligence from the South is startling.
The steamship Creole. from New Orleans, which
arrived here yesterday evening. brings the news
that the rebels made an attack on Galveston, Tex
as. by land and water, on New Years day. and re-
captured it They made a bold assault on steam
ers protected by cotton bales from behind which
they poured so murderous Hre upon our gun
boats that the Harriet Lane, we'll known
in these waters, had to succumb and was
taken. after being boarded BY the rebel sharp
shooters and her captain wainwright and
most Of her Grew killed. The flagship
Westleid was blown up by her commander, Capt.
Renshaw. in order to save her from capture; but
unfortunatelyhe and his first lieutenant perished
Burrifi, at Galveston, were nearly all killed or
taken prisoners. We give sketch Of the vicinity
OF Galveston and q map to-day. together with some
account Of the officers engaged in this disastrous
affair.
The Richmond Enquirer iu describing 1t says:-
General Magruder In his official despatch con
corning the capture Of the Harriet Lane says:-"I
have taken six hundred prisoners and large
quantity Of valuable stores, arms, &c. The Har-
riet Lane is but little injured"
II is said that she has been sent to sea to fol-
'ow the same piratcal course ss the Alabama
: General Magruder COMMUNICATIVE rebels, who
numbered about 5000. Colonel Burrill's troops
did not exceed 800. Our loss is estimated at 16O
killed and 200 taken prisoners.
Later news from vicksbarg, by way Of Cairo
yesterday, states that General Sherman's repu!se
was complete. The entire force, under General
McClernand, re-embarked Saturday on transports,
closely followed by the rebel advance, which,
coming in range of the gunboats, were driven
back with severe loss. At the last accounts the
entire feet Of transports, with troops had arrived
at Island No. 50, on the way to Napoleon. There
Is nothing definite from Banks or Farragut though
rumors OF their advance are in circulation. Our
loss, as near as could be ascertsined was six hun
drcd killed, one thousand five hundred wounded,
and one thousand missing.
As kind OF Offset to this repulse we have the
fact that Captain Moore. with one hundred men,
attacked a camp Of two hundred rebels at Hun
toons Mills, thrty-6ve miles east Of Fort Pillow,
on the morning Of the 9Th. The rebels were com.
pletey surprised. Sixteen Of them were killed
and fcrty-six taken prisoners. Fifty horses and
lot Of small arms were captured
Intelligence from tie vicinity Of Murfreesboro is
10 the eject that General Bragg had fallen back to
Tuiiahona, to give his army rest. Tullahoma is
situated on Rock creek, sevsnty-one miles from
Nashville and thksy-two from Murfreesboro, and
on the Nashville and Chattanooga Railroad, where
il inisrcepts the McAnnvillc and Manchester road.
According to rebel despatch from Chattanooga,
"the enemy General Rosecrans) has advanced his
line miles this side Of Murfreesboro. He has
been guilty of the most outrageous enotmities
stealing private property robbing peaccsble citi.
xens aud running od negroes
The scouts Of General Burnside's army had q
reconnaissance and skirmish with some OF the re.
bel cavalry which had been hanging about our righ,
wing near Stafford Court House for some days.
Colonel Fenning, who commanded one party, went
as far as Catett's station on Saturday, and drove
OF some seventy Of the enemy's cavalry. No large
force was found in that vicinity.
Dispatches from Charleston on the sth inst. con.
tain some important news from Knston, North
Carolina. to the effect that our army are making
immense preparations for an advance; rein
fcrcements are daily arriving from Suffolk. and
that our forces at Morchead City and Newbern arc
fifty thousand strong under command OF Genera
Foster. II was reported that they would probably
attack Charleston, Wilmington, Weldon and Colds.
boro simultaneously.
Teisgraphic details from Newfoundland Of the
European news ny the Jura,. dated to the I'd of
January, are given in the HsRaLo this morning
The advices are five days later.
The working men OF Manchester had made an
important demonstration In support OF the cause
Of the American Union. expressing ss the same
time their approval of the war and emancipation
policy OF President Lincoln by the adoption OF an