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I AMERICA. I EARLY'S DEFEAT AD SHERMAN'S MOVE- MENTS. NEW YORK, March 10th.-Cuater's division attacked and defeated Early's forces near Waynesboro', capturing 84 officers, Early's staff, 1,100 men, seven cannon, 100 waggons, and also a train of artillery stores prepared for transportation. General Early escaped. The Federal loss was ten men. Custer was last reported within ten miles of Charlottesville. Kosser attacked a detachment returning from Winchester, but was repulsed. Prisoners report that a heavy Federal force was advancing from East Tennessee towards Lynchburg. Unconfirmed rumours report the capture of Lynchburg Grant is reported to be waiting fine weather for ano- ther attack on the south side railroad. Lee is strongly fortifying his line on the Roanoke River to secure the possible retreat of Johnstone to the Roanoke. The accounts from Sherman continue conflicting, deports from Charleston to the 7th announce Sher- mau's arrival at Charlottesville. Beauregard was ho- vering round his front. Rumours, through Southern sources, state that Sherman had deserted Cheraw, retiring towards Charleston. Other accounts represent the fight at Cheraw as a cavalry engagement, Hampton defeating Kilpatrtck. General Potter had advanced from Charleston to the Santee River without opposition. The fortifications of Augusta are being strength- ened. The Southern journals now express more confidence of Sherman's failure, aud say hiiw retreat would not sur- prise them. General Terry is 13 miles from Wilmington, on the north-west branch of the Cape Fear River, confronted by Hoke. Charleston is quiet, and business reviving. The arrival of detachments at Winchester with prison- ers confirm Sberidan's success. The Danville Register saya that Lee intends never to surrender Richmond until it is impossible to hold it. A meeting bæ been held at Danvilk for subscriptions to support Lee's army. The governor of North Carolina has atoongjy appealed for provisions for Lee's army. General Canby has left New Orleans for Mobile. Mr. M'Culloch\. the new Secretary of the Treasury, upon assuming office, made a speech BtaCing his chief aim was to providie an early means for discharging the claims upon the Treasury, and gradually "toring the specie basis, the departure from which was. a temporary necessity, damaging and demoralising to the- people and expensive to the Governments. The Secretary of the Interior has resigned, and has been succeeded by Senator Harton. The papers continue-to stigmatise Andrew Johnson's conduct on the day ofi hifr inauguration. Some recom- mend him to resign. President Lincoln has been officially informed of England's approval of the recent Canadian legislation regarding Southern reexgeea. Mr. Seward has rescinded the Canadian passport order. lit has also been agreed not to. increase the navaiforce on the lakes. The draft commences in' New Yoric on toe lotn March. The Richmond Enqui.rvrB9.yu- that a plan exhaed to force President Davis to resign in favour of Hunter. It hopes the plan has miscaoried. Lee," it says, "with the-consent of the army; and; people, will granp:the sceptre if wrenched frous Davi& The Congress M a failure, and the power should! be entrusted to Dapie,and Lee-alone." The Belgian has arrivecilout. NEW YORK, March 11..—Jbhnstooe is supposed to have- attacked Sherman in* front, bst is said to have been defeated. The locality of. the battle is not given. It is reported to be probabl^- in the north of South Caro- lina. Refugees from Newbern report that Sherman owu- pied FayetteviUe last week, and waa within 40 miles of Sleigh. Scouts have reported I that S?erman intercept- ed and crushed Cheetham's corps, which was movmg from Alabama to reinforce Hardee. Hardee was not up in time, and did not give- battle. The steamer Ruby has been-captured. The British ship Margaret Kerr has been totally wrecked at Key West. The'crew were saved. The Confederates were deserting by companies and going home. The people were not heeding the govern- or's call, and in many cases were welcoming Sherman. A panic prevailed among-the-negroes since the an- nouncement that they were-to be conscripted into the Confederate army. The Conservative slaveowners went arming their slaves. The result of the conscription was that hundreds of slaves were flocking to Sherman's army with the assist- ance of their masters, promising to return- to work for wages as-soon as safe. The Federals from Wevy-bern have arriml near Kins- ton. The Confederates are reported to have abandoned the country between Newbem and Goldsbero', ovacuat- ing Kineton on the 3rd. Beauregard is reported to-beat jRaleighi Goldaboro* is being fortified. The Confederates are said! to have fallee back from their position on the Wilmington and Gbldsboro' rafl- rood l-Smiles north-east oE Wilmingtom- The governor of North Carolina has announced that for a few months Lee's army must rely for subsistence upon Virginia and North Carolina alone.. i President Lincoln has offered a pardon-to-all deserters returning to their posts within 60. days. The New York Times says President Li^ ncol.n d.o.es not propose at present to maka-any diplomatic- appointment to France. It is reported that the Government will immediately ship the cotton captured at Savannah to-Ehgland. NEW YORK, March 11, Evening. -Seovits amved at Wilmington announce Sherman's occupation of Cheraw. Up to that time, nothing but skirmishing has occurred. Sherman's advance into South [ I North] -Carolina was a certainty. It is rumoured at Washington that General. Schofieid has had an engagement in North Carolina: Grant is reported to have discovered, coloured troops confronting his pickets* showing that the Confederates had adopted the policy of arming the slaves. t'he Confedate Semite has passed the Negro. Enlist- ment Bill and it is supposed the houM will ratify it. NEW YORK, March. 12, One a.m.—The Federal Senate 1 has adjourned without transacting any important busi- ness. The only diplomatic appointment sent in i, s: that of Mr. John P. Hall as Minister to Spaiiii I- New York, March IO.-The. report ot ttle. (ieleat of Early by Sheridan is revived. The battle is now stated to have been fought at Fisherville, near StAAmton, Vir- ginia, but, the date is not mentioned. 1300 Confederate prisoners and eight cannon, caotured in. the battle, are asserted to have arrived at Winchester on the 8th inst. ml New Orleans ctespatches state that Gen. Cunby would leave the city on the 1st for Pensacola or Pbomgoula, to conduct the new- operations against Mobile. A naval and military expedition for the-capture of St. Mark's Florida*, left Key West osuthe 24th ult. No news of its process-has been received. Admiral Porter stated yesterdhy, before the Congres- sional committee on the contiuct of the war, that the principal object of General Banks' Red River expedition was the capture of cotton, and! attributed its failure to that fact. Senator Harlam, of Iowa, has- been appointed by the President, and confirmed by the-Senate, Secretary of the Interior, to succed Mr. Usher, who, will resign office on May 1. Mr. Seward has rescinded his Canadian passport or- der. The cotton captured at Savannah is being rapidly brought to New York. The Tribune states that Secre- tary M-Culloch has deairedi tx> immediately tranship it to England. Chief Justice Chase has decided, that the cotton cap- tured on the Red River was not a lawful prize of war, and should have been cfelivered to the Treasury D4art. mont., as abandoned personal property, snbject. to ad- indication. Rumours from Washington of a victory by Geo. Sher- man caused gold to decline to 186f it has since rallied to 189. March 11, Afternoon.- Richmond papers, to the 9th inst., report the news from Carolina highly encouraging though still suppressed. They intimate that Sherman is retreating. The Bill for arming the slaves, slightly amended, has passed the Confederate Senate, by a majority of one. Mr. Lincoln has issued a proclamation warning de- serters to return to their duties within 60 days, under pain of being deprived of their rights of citizenship. The same penalty extends to persons, who being liable to military service evade its performance. Senator Hale, of New Hampshire, has been appointed ambassador to Spain. Gold, 1911

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