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AMERICA. I EARLY'S DEFEAT A.\T) SHERMAN'S MOVE. MENTS. NEW YORK, March 10th,-Custer'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 lait reported within ten miles of Charlottesville. Rosser attacked a detachment returning from Winchester, but was repulsed. Prisoners report that a heavy Federal force was ad vancing 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. Heports from Charleston to thg 7th announce Sher- man'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 his 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 Sheridan's success. The Danville Iteginter says that Lee intends never to surrender Richmond until it is impossible to bold it. A meeting has bilen held at Danville, for subscriptions to support Lee's army. The governor of North Carolina has strongly appealed for provisions for Lee's army. General Canby has left New OrJeans for Mobile. Mr. M'Culloch, the new Secretary of the Treasury, upon assuming office, made a speech stating his chief aim was to provide an early means for discharging the claims upon the Treasury, -111(1 gradually restoring the specie basis, the departure from which was a temporary necessity, damaging and demoralising to the .people aud 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 011 the day of his inauguration. Some recom- mend him to,resign. President Lincoln has been officially informed of England's approval of the recent Canadian legislation regarding Southern refugees. Mr. Seward has rescinded the Canadian passport order. It has also been agreed not to increase the naval force on the lakes. The draft commences in New York on the 15th March. The Richmond Enquirer says that a plan existed to force President Davis to resign in favour of Hunter. It hopes the plan has miscarried. "Lee," it says, "with the consent of the army and people, will grasp the sceptre if wrenched from Davis. The Congress is a failure, and the power should be entrusted to Davis and Lee alone." The Belgian has arrived out. NEW YORK, March lI.-Johnstone is supposed tQ have attacked Sherman in front, but is said to have been defeated. The locality of the battle is not' given. It is reported to be probably in the north of South Caro- lina. Refugees from Newbern report that Sherman occu- pied Fayetteville last week, and was within 40 miles of aleigh, Scouts have reported that Sherman iutercept- ed and crushed Cheetham's corps,, which was moving from Alabama to reinforce Ilardee. 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 were 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 Newbern have arrived near Kins. ton. The Confederates are reported to have abandoned the country between Newbern and Goldsboro", evacuat- ing Kinston on the 3rd. Beauregard is reported to be at JKalelgh. Goldsboro> is being fortified. The Confederates are said to have fallen back from their position on the Wilmington and Goldsboro' rail- rood, 15 miles north-east of Wilmington. 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. President Lincoln has offered a pardon to all deserters returning to their posts within 60 days. The New York Times says President Lincoln does not propose at present to make any diplomatic appointment to France. It is reported that the Government will immediately ship the cotton captured at Savannah to England. NEW YORK, March 11, Evening.—Scouts arrived at Wilmington announce Sherman's occupation of Cheraw. Up to that time, nothing but skirmishing has occurred. Sherman's advance into South [? North] Carolina was a certainty. It is rumoifTed at Washington that General Schoneld has had an engagement in N orth Carolina Grant is reported to have discovered coloured troops confronting his pickets, showing that the Confederates had adopted the policy of arming the slaves. 1 he Confedate Senate has passed the Negro Enlist- ment Bill and it is supposed the house will ratify it. NEW YORK., March 12, One a.m.—The Federal Senate has adjourned without transacting any important busi- ness. The only diplomatic appointment sent in is that of Mr. John P. Hall as Minister to Spain. New York, March 10.—The report of the defeat of Early by Sheridan is revived. The battle is now stated to have been fought at Fisherville, near Staunton, Vir- ginia, but the date is not mentioned. 1300 Confederate prisoners and eight cannon, captured in the battle, are asserted to have arrived at Winchester on the 8th iust. 11 New Orleans despatches state that Gen. Canby would leave the city on the 1st for Pensacola or Pascagoula, to conduct the new operations against Mobile. A naval and military expedition for the capture of St. Mark's Florida, left Key West on the 24th ult. No news of its progress has been received. Admiral Porter stated yesterday, before the Congres- sional committee on the conduct 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 succedMr. Usher, who will resign office on May 1. Mr. Seward has rescinded his Canadian passport or- der. The cotton captnred at Savannah is being rapidly brought to New York. The Tribune states that Secre- tary NI-Culloch has desired to 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 delivered to the Treasury Depart- ment, as abandoned personal property, subject to ad- judication. Rumours from Washington of a victory by Gen. Sher- man caused gold to decline to 18Ba; it has since rallied to 1894. March 11, Afternoon.- Richmond papers to the 9th inst., report the uews 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. 1 he 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, 191t.

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