tg4e VtlZ5. TUESDAY, EEBRUARY 3, 1863 The National Banking Proposition. While Congress is discussing the neces sities of the Government it should not forget the great practical measure of the Secretary of the Treasiiry. The soldiers. have been paid; measures have been taken to pay the creditors of the Government, and, so far as any national liabilities are concerned, the Treasury Department is beyond any embar: rassinent. In the midst of these demands, however, we trust to sec established a sound national currency. We cannot meet the daily claims of business and personal inter oursc, exchange transfer, and convenience, without a currency. Custom has made gold , and silver the standard. They are; :weighed And delivered as money, as in the times 'of PEABA I SH and in the empire of China. In this country they have become articles of trade and investment,. like corn, and cotton; lind silk. It is not practicahle now to insist upon gold and silver being recognized as currency. • The War, by creating an extra ordinary demand for a circulating medittin to pay soldiers and debtors, has made paper money a necessity ;and and the duty of Congress, is ro so legislate that it may become : sound and just. ' As we have no gold and Congress must -give us a proper sttbstitutc. Of course;- in regulating the enrkency we must consider estate and local interests. Congress 11[18 Item found it expedient to as sert the right of regulating the ettrrency, and: in almost every county of the Northern States a local bank issues ingenious and pic- . turesque designs, representing -'clenominn- Vous' . of grenter or less value. The Cope (ponce ..is; that, financially, the canary _is divided up into dilierent comniunities, eaeli vita its owu standard of faith, buying and selling, and locking away values that would be looked upon with disdain in NeW York and,Philtaielphia.. We cannot use theselo - notes in a national way, Illinois and 34Ifieeachusetts money vi ould be rejected by . soldiers in Virginia and Tennessee, tind few tent-makers, or dealers in biscuit and. bacon, , would accept it in the execution of contracts. This nutkes it necessary to issue a national paper currency; and such a currency the Secretary of the Treasury proposes. The (litliculty that meets this proposition is the existence of the local hank currency; and when it was first proposed, the banking interest of the country—rich, pourL, '&411, and widely - extended—was arrayed against it. - It was said that the suflpreasion of the local currency would compel the : batiks to throw the national:stocks that stts- lain their circulation upon the market, and by thus creating au' inflation, lead to a gene- Tol depreciatiOn of the Government securi ties. .Wc think, however, this 'argument is being abandoned. As men consider the free banking system of Mr. C.Tr its mineral wealth, developed by French energy, skill, labor, and capital, would soon make it the most valuable of colonial possessions. Its extent, too, (its area being nearly double that of Pennsylva nia), inales it a desirable acquisition. It is an easy matter for nations as well as individuals to pick up a quarrel. fEsor's 1,1,S A that truth. "You muddy the stream," said the wolf, "and thereby prevent my having a pleasant drink." The lamb asked, "How can that be, as I drink on the stream below you ?" This agnate logic did not convince the wolf, who flew into a passion with the defenceless victim, accused him of ill-breed ing in having rudely contradicted lAm, and proceeded to slay`and 'devour him without hunter delay. When NAPOLEON desired to commence hostilities with Mexico, it was pretty much in the fashion of the wolf with the lamb in the fable. Mexico was largely indebted to certain European countries, of which France was one; in Mexico, during one or more of the emeutes which are'episodes in the public Government, some Europeans lind suffered in purse mid person, some Frenchmen being among the sufferers, and full reparation had not been made ; one General ALMONTE, a trading poli tidal], who had been exiled from Mexico on account of his treachery and intrigues, had found his way to Paris, and, obtaining a hearing from NAPOLEON, in fo] hied him that the Mexicans greatly louge - cl for the interference of European rulers that they were particularly weary of BENITO RIA IMES, (their President, since February, 1858, and really a man of great talent and vigor,) and desired to live under a French protectorate, with or without the ulti matum of a king recommended by NAro- LEoN ;,and that the resistance to an Euro pean navy and army would be nominal and brief. Perhaps, ALitoNT.E whispered " Sonora " into NAroLEoN's .ear? Who `knows? NAPOLEON is a Don Quixote who wanders about redressing grievances— bnt usually contriving to get' paid for his assistance; as in the Italian war, when he obtained Savoy and Nice as the price of his aid on the plains of Lombardy. With great ingenuity, NAPoLEoN contrived to draw in England and Spain into his pur posed raid upon Mexico. Take the indebtedness of Mexico to foreigners at the square number 12, and its proportions will stand at 8 for England, 3 for Spain, and 1 for France. In fact, France had the very slightest grounds for proceeding against Mexico. The joint expedition sailed and duly reached its destination. In December, 1801, the Spanish forces took possession of the fortress of San Juan d'Ullba, at Vera Cruz, without firing a shot. The French and British forces soon joined in. General Puna, suspecting and detecting NAPOLEON' s interested motives, so different from those publicly proclaimed, assumed the responst Unity of withdrawing the Spanish fcirces, and was thanked by his sovereign for having exercised such a wise discretion. The British forces were also withdrawn. France, represented by a small army and a few vessels of war, was left to bear the brunt, and has kept its ground in Mexico only by the aid of repeated and extensive reinforcements. In his speech at the open ing of the Chamber, on the 12th January, NA POLEON alluded in briefest manner to this war in Mexico, but it is undoubtedly a failure, so far. Its cost, also, - is another element. M. Pout)), Minister of Finance, estimates the total expense of the Mexican expedition during 1802 at eighty-three million francs; equal to $10,200,000. The latest accounts left General FOREY before Puebla, seventy six Tiles from Mexico, after having been de feated in a battle with the Mexicans, who attacked the French in a fog, and routed them with great loss. It is very little .to the credit of French warfare, that fifteen Months after landing, without opposition, in: Vern Crux, General FORICY'S army, one of the best-appointed in tZke world, now numbering 28,000 soldiers, should have advanced little more than one hundred miles. Vern Cruz is 185 miles from Mexico, and Puebla, before which General FOIVEY was at last cdviceS, is 100 miles from Vera Cruz. NikroixoN was led to believe, by General ALSIONTE, that the Mexicans were so disin tegrated by jealousies, disaffections, and local strife; that many of them would side with the 'European troops, and that the remainder would fall an • easy prey to foreign valor. A Mexican regiment or two, commanded by General MAnquEz, did join the French, and still continue under the lit-color flag. But, contrary to expectation, when Mexico was invaded, as we have de scribed, the greater number of the contend ing parties, as by common consent, post poned or abandoned their differences, and patriotically united to present that resistance which NAPOLEON'S troops have found so deadly. The contest, no doubt, will eVentu ally, become very deadly, for to maintain his prestige before Europe, and especially , before France, NAN:in - Lox inn at scud such rein forceMents to his cominanders as will enable Them,, et any cost, to occupy the capital of Mexico - . It is said that, this end gained, (so that NAPOLEON may be able to brag that the French flag has waved over the ancient Capital'of the . Aztces, the Te s cua ns, and the Tepanees,)the foreign troops will magnani- Inouslyrettuithorne, the expenses of the war to be provided for by the transfer of Sonora to France. That, we are confident, lies, at the bottom of the demonstration 'Which NA.- rOL4oN has Made at so flinch cost and with sonic risk: Our statesmen will rernember, Of - course, that Sonora adjoins our oWn'ter ritory on - the Pacific; that the Monroe doe trine Ought, decidedly to be considered the principle .on the North American con thient ; :and: that NAPOLEON is not likely to be a -very safe',or pleasant naighbdr, at any rate. We have plainly given the history of his - raidon Mexico. The last act is yet .to --. be performed.: , 'rho Greek Difficulty. It is said hi the English= newspapers that the Duke Of SAX COBOURO-GOTRA, Queen VicTontiOs brother-in-law and King Luo-. roan's nephew, had been offered the vacant throne of Greece, One account says that he Inis accepted, another declares that he has refused, it. The latter is more probable, seeing that, from his intimate family con nection with 'England, it is not likely that the other European POlN• . ers would sanction his promotion,. Ile is a childless man, too, and the Greeks will have more sense, it is to be hoped, than to choose a man at whose death there would be the trouble of a new election. The persons who have already been spoken of as likely to be candidates for the crown of Greece are Prince ALFRED, of England, the Duke 'of LEUCIITENBEEO, Of Russia, King FEttrawAwn, of Portugal, GUISEPPE GARITIALDT, Milne AMADEUS, of Italy,- the . Count de FLANDEES,- of Belgium; Prince Nicot,As, of Sweden, the Archduke, MAxnutraAN, of Austria, Mr. WILLIAM EIVAT,T GLADSTONE, "'Ord STANLEY', Slid now •the Duke of. SASE-COBOURG. It is very doubtful Whether any of the al m'e named will be accepted. A. native sovereign is what Greek jealousy will not hear of, and a republic would be tabooed by monarchical Etnopq. All this time, Greece suffers from the delay and suspense. Greece is an " in dependent kingdom"—but is not allowed to choose the form, of government she may prefer,_ nor the man whom she may desire for ruler. LETTER FROM !`OCCASIOIiit." TV - ASILINGTON, Feb. 2,1863 . , Let the friends of the country persevere in the good work of standing by the Adminis tration in this trying hour. If they have Many obstacles to contend against, they have also many powerful advantages on their side. Their opponents in. the loyal States have at last placed themselves on the most dangerons grounds. We must hold them to their doctrines ; and if we do, they will ultimately be forced to a disgraceful retreat and a humiliating repentance. No party has ever yet maintained power in this country that allowed itself to be committed against a -just war. The people are patri otic. The Democratic masses are loyal. The Democratic leaders know this so well, that they have only been enabled to keep up their party relations to their followers by inducing the latter to be lieve that When the leaders are charged with treason, it is intended to include the rank and file of the Demerate in that same accusation. As long es this delusion can be maintained, so long will the leaders be tole rated, and not a . moment longer. Now, while it CBll. 11110 übted tha t_a partyj s_ frt r t illr i 'b ; tiee l 6ti°ls6fit ega, yet there arec;nyeptions to the rule. For instance, when Mr. Buchanan be trayed his trust; hundreds of thousands who had vuted for him, fled from his standard the. moment they were convinced of his treachery. The leaders, the place-men, the place-hunters, and his slave-driving masters, alone remained.. County after county, State after State, reversed Democratic majo rities and declared for the Republicans. The same result will follow if the friends of the Government now act together vigorous ly and harmoniously. It is impossible for the opponents of the war to con tinue the course in which they are now engaged, without encountering a storm, of popular indignation. They are aided by many• instrumentalities, by all manner of calumnies, by every defeat of our arms, by every sign of Republican division, and by every symptom of weakness; but no cause which depends upon these alone can hOpe for more thati temporary success. Our weapons will be irresistible if we employ them wisely and well ; and it should be our study to keep this lesson always in view. I think it requires very .little discernment to anticipate the assured and permanent triumph of the friends of the Government, if they, themselves, are actu- , ated by proper discretion, and resolved to act unitedly and vigorously. The Demo cratfc leaders have gone so far in the wrong that they cannot fall back without disgrace. Nothing can secure them but our own follies and dissensions. 'With such arguments as are at our disposal, and with so good a cause, and so remorse less and wicked an enemy to put down, we need organization and harmony to redeem the Republic, and to retain the rule of loyal and patriotic men in the general administra tion of the Government. OCCASIONAL: EntreaTroNAL.—ln the village of Birmingham, Huntingdon county, the Mountain Female Semi nary is situated. We cannot imagine a more ro mantic and beautiful spot. The country is hilly, and just beyond it the Alleghany mountains begin to ascend, The Juniata flows at the foot, and it scents to nestle among high and magnificent hills. The village itself is a small, old-fashioned cosy place, within two or three miles of Tyrone, and on the line of the railroad, thus aptly combining, the beauties of a retired rural home with the advan tages of rapid communication k ith distant cities and towns. This seminary is under the charge of the Bev. L. G. Grier, a very accomplished gentleman as well as a thorough scholar. His winter session is just commencing, and, we are glad to say, with gra tifying prospects of success. The attendance is al ready very large, although, the accommodations having been extended during the recent vacation, a few others may be admitted. A note addressed to Mr. Grier will obtain all necessary Information. LAILOE POSITIVE. SALE OF BOOTS, SHOES, Aa xr awn Oyu SHoEs, &c.—The early at tention of purchasers is requested to the large as sortment of boots, shoes, gumshoes. Also, 3,000 pairs army brogans, embracing about '7OO packages:of first-class seasonable goods, of city and Eastern manufacture; to be peremptorily sold by catalogue, on four months' credit, commencing this morning at 10 o'clock, by .Tohn B. Myers Sc Co., autioneers, Nos. 232 and 231 Market street. Gen. McClellan's Reception at Boston. BosTort, Feb. 2.—The public reception of General McClellan at the Tremont House to-day, was a highly enthusiastic and popular demonstration. Shortly before noon, the officers of the army, in cluding many of the wounded, paid their respects in a body, and next the officers of the city government headed by Mayor Lincoln, were introduced. In the meantime the hall and reception parlors were rapidly filled, and a crowd of from Seven to ten thousand people gathered in the vicinity. So far as the limited space of the hotel would admit the crowd were allowed to pima through and shake the Gene ral's hand. Some ladies managed to enter with the crowd, and also several wounded soldiers. To the latter General McClellan addressed special words of sympathy. The reception closed at three o'clock, but, in re sponse to urgent demands from the mass of people unable to enter the building, the General appeared for a few minutes on the portico, and bowed his thanks. He was enthusiastically cheered. To-morrow General McClellan will visit Law rence. Special invitations from the people of Portland, Me,, and Concord, N. H., have been received by the General to visit these cities. The Senatorial Contest in Missouri. JIIFFERSON CITY, Feb. 2.—The joint session of the. Legislature for the election of United States Sena tor met again to-day. .hlr. Noell's name was withdrawn. Six ballots were taken without result. • The last and twelfth of the series stood as fol lows : Brown 44iBreokenruf 19 Clover 32; Scattering 2 Phelps 471 TEE E PRESS.—PHILADELP EllAc Mr. Si'ts:sarans finance bill, as reported today from the Committee on Finance, is amended in seve ral particulars, It prercribes that the capita! stock 01 any banking Association under the act shall be, Instead of $OO,OOO, not less than $400,01)0 in all cities whose population is 10,000 persons. The entire cir culation of notes under this act shall be $300,000,000, instead of $200"0,000, one hundred and 114 of which shall he apportioned to associations not only in the States, but in the District of Cotumista and in the Territories. according to their respective Imputation, and the remainder apportioned according to the re sources and business of the several States and Ter ritories. These Associations are Perpetred to pay to the Comptroller of the Currency, semi-annually, I per cent. of their circulation. The Surgeon General's office, owing to the opera tions of certain persons among invalid soldiers, has given notice that certificates of discharge are fur nished only by the surgeons in charged(' the General Hospital and camps, and that the obtrusive efforts of persons claiming to be special agents retard in steadnif inuitening the preparation of discharge pa pers.. All soldiers are warned against giving money for such purposes. The amendment to the Missouri Emancipation bill, as reported by Senator HARR.IB, from the Com mittee on the Judiciary, consists of a substitution of twelve for eighteen months, as a limit to the time allowed for the adoption of an emancipation act—a prohibition of pay for any slave introduced into the Stale subsequently to the passage of this act, and an increase of from fifteen to twenty millions ap. propriation, at an average of s3oo,.instead of $2OO, for each slave. The Fight of the_iron . 7clad Montauk at The following deepatch wee received to-day by the Navy Department; Fort , Mownon, Feb. 2.—A bearer of despatches, who left Port Royal on Friday at noon, says there is no truth in the report of the Montauk being dis abled at Fort McAllister. Commander),Nronoux lay under the enemy's fire for four hours to try his vessel. The balls had no more effect upon her than so many hail•atonea. Nothing had been heard of the capture of the gun boat Isaac P. Smith, in the Stono river, when the despatch messenger left. The McDowell Court of inquiry is still in session. To-day Brig. Gen. Jonx Darwin was examined about the expedition he led out from Warrenton Junction towards Chester Gap on the 26th of August, the object of which, he said, was to reconnoitre the enemy's position. Increased Tax on Luxuries. The Committee of Ways and Means are now en gaged in considering how the revenue can be in creased. Some suppose that additional taxes may be placed on luxuries in order to decrease the duty on paper. The Proposed Air-Line Railroad to New The special railroad committee, ,of which Mr. Fv.vrolc Is chairman, is understood to have unani mously agreed upon a bill to be Immediately re ported to the Rouse of Representatives, providing for an air-line railway from this city to Pfew York. The Release of Mr. Boileau—Be Admits his ' , Wickedness, and Promises to Sin no BevrimOßE, Feb. 2.-The following is the letter of Mr. Albert L. Boileau, of the Philadelphiaßsc fling Journal, on which his release was granted : I, Albert. D. Boileau, citizen of Philadelphia, edi tor and publisher of the Philadelphia Evening Jour nal, now confined in Fort McHenry for the publica tion of an editorial article under the title of "Davis , Message," in that newspaper of January 20th, 1863, and for the publication of other articles of a like dangerous character, tending to the support and encouragement of the rebellion against the Government of the United States, do hereby freely and voluntarily express my regret for the publication of that article, or of any other article of like tendency or character, and do distinctly dis avow such article or articles being published with my proper authority or knowledge i and declare that such publication has been made by other per sone, agents, or employees, without fit) , sanction and intention. And I do hereby give to Major Genera; Robert C. Schenck, commanding the Middle Department and Eighth Army Corps, by whose order, b behalf of the Government, I have been arrested,' my sacred parole of honor that, upon being discharged from my present imprisonment and the suspennon of the publication of my newspaper being rewired, I will not write, print, or publish, or permit (biers, in my name, to write, print, or publish any tiole having such a dangerous character, or tendi* to the sup port or encouragement of the rebellion but will de mean mysell in all things as a true and loyal citizen of the United States, intending only tdsupport the Government, the Constitution, and thetinion, as a faithful citizen should. And it is to be further understood that these de clarations and pledges are made as well to relate to matter hereafter to be published in the weekly news paper called the Democratic Leader, made up from the Philadelphia Evening Journal itself, and to . any other newspaper that may be: published or controlled by . • . GiVeii Ove, BtatiM thlti •the tat day of Pebniary, 1863 , ~L ,143E121` D. it 0114:117. . The Exchange of Prison.re—Ctrllbut Pri soners to Conic Under the Ital Wary Cartel —Plane Jellersou Davis lval p roambly be Defeated by the Rebel Cong^..ese—lPtre Norfolk, &e. FaitTuEas lilozatou, Feb. I.—The steamboat "New York," which was to have left last night for City Point, has been detained until noon to - o'kv to take up one hundred and twenty rebel prisonete., which arrived this morning on the Baltimore bout from Fort McHenry. The steamer 'Henry Burden , ' arrived last night from City Point, with Colonel Ludlow, who had been up to meet Commissioner Ould, on business pertaining to the exchange of officers, &c.. At one o'clock this morning a fire broke out on Main street, Norfolk, destroying the building entire, and the following places of business: Bateman & Millwood, restaurant; J. A. Bates, bar-room; one grocery, and a boot and shoe establishment. The building destroyed was opposite Mains & Co.'s Express Office. Their building Was in great peril for a while, and narrowly escaped destruction without damage. Colonel Ludlow, U. S. Comniissioner for the ex change of prisoners, has Just returned from City Point. He has made arrangements for the exchange of citizen prisoners, and is of the opinion that Jeff' Davis' retaliatory proposition to deliver over all the United States officers to the authorities of the States where captured, and which is in gross viola• tion of the cartel, will not be approved by the rebel Congress, who are.now acting upon it. The result will be known in a few days. We now hold more officers than the rebels. Col. Ludlow has earnestly protested against the rebels permitting the authori ties of any State to apply the operation of the State laws to any captured otllcers or men in the service of the United States. , . DEPARTMENT OF NORTH CAROLINA, The Great Expedition—The Fleet Riding out the Storm in the harbor of Beaufort— Trouble between Jefferson Davis and Go vernor Vance—General Wessell* ist i Cons, stiond at Newbern, 41cc. RoJoronn ISLAND, N. 0., Jan. 30, 1803011 FOR -3111.130 Mormon, Feb. I.—Major General G. Foster has again written to the General-hi-Chief, at Washington, D. 0., bitterly complaining of the premature disclosures of military and naval move meats in this department. For this reason, the agent of the Associated Press refrains from any mention of other than operations already accom plished. Elizabeth City, N. C., is now held by the United States forces as a military post. One company of the let North Carolina loyal regiment, and one hun dred negroes, are doing garrison and picket duty at that point. Jeff Davis, last week, had a conference with Gov. Vance, of North Carolina, upon the - relations of this State with the Southern Confederacy; meeting him for that purpose at Franklin Depot,yirginia, on the Blaakivater. Governor 'Vance plainly informed President Davis that North Carolina would insist upon the reserve and recall of an adequate force, for the protection of North Carolina from any further Union advance. North Carolina has now 80,000-troops in the rebel service. Many. applications are being made for authority to raise native loyal troops. Gen. Foster strongly approves of doing this. 23.017.E1i11AD CITY, N. C., Jan. 30.—The waters be tween here and Beaufort are black with vessels of all kinds, which are only awaiting the Abatement of the severe gale which has been prevailing for five days. Captain Sleight, Chief Quartermaster of this De partment, has completed his arduous labors in fit ting out the great expedition of the day. The army is in splendid condition, and eager for the tight. General Wessells is left in command at Newbern, with en adequate force for any emergency. The Recent Affair In Stono River—Capture of Die I. P. Smith—She was Aground when Taken—Sketch of the Gunbont, &c. WASIIINGTON, Feb. I.—The Navy Department has a despatch announcing that the gunboat Isaac P. Smith, one of the purchased gunboats, Lieutenant Connover, commanding, got agroundon Stow Inlet, and was captured by the enemy. The details have not yet been re•eived. The L . P. Smith is doubtless the Immo Smith, a propeller formerly used at New York as a towboat, and since transformed into a gunboat and enlarged. 'When employed at New York she was rated No. 2 at Lloyd's, and was of three hundred and fifty tons burtben. She then drew but seven feet of water, and had but one deck. She was built of oak, atAVll liamsburg, in 1 . 865, copper and iron fastened ; has a beam engine, with a cylinder of forty-four inches in diameter and five feet stroke of piston. She was then owned by H. Smith, and commanded, by paiit. John Smith. She was of medium model, with freight house and cabin above, and was surveyed In. New York, in April, 1861. She was repaired at the . New York navy yard during last fall; and was . enlarged . to 453 tons burden. She was then armed with nine guns, which haVe since been increased to eleven . . • A Schooner Boarded by a British Gunboat. Nwor Font:, Feb. 2.—The schooner J. W. Mait land, front Sagua, reports that on January 22d she Was chased and boarded by the British gunboat Steady, looking tor slavers. A.SI-lIN Gr TON. Special Dcapatches to 44' The Presa.” l iVaeirmorox, February 2, 1863. Senator Sherman's Finance UHL Discharges for Sick Soldiers. ,The Missouri Emancipation Bill. Fort McAlliKter. IIEADQUAETJIRS OF THE MIDIU.k.: DEPAP.TMENT, EICHITH AItHY Cemrs, .1.3e1...rnea/r, DID., Feb. 1. • DEPARTMENT OP NIRGINIA. DEPARTMENT OF THE SOUTH. SKETCH OF THE VESSEL TUESDAY, FEBRUARY 3,1861 i STATES IN REBELLION. ISATAI ENGAGEMENT ON TM °GENRE& THE IRON-CLAD MONTP,ATIC rEsirna. Reported Injury to hor Turret. THE SIEGE OF VICKSBURG- PROBABLE OPENING OF THE CUT•OFF The Transport " Hatteras' , said to have been Sunk by the British Steamer Spitfire"—Aflairs in Missis slppi—ltecapture of Molly Springs, .ice., I.OIITTLESS Idol:non, Feb. 2.—Richmond papers have been received here to January 31. They con tain the following,: BOMBARDMENT OF FORT MoAL LISTER "On the 27th Inst. a bombardment took plaee at Fort McAllister, at the mouth of Ogeecbee river, six teen miles south of Savannah river, Georgia. Only one Iron-clad was engaged, and was forced to haul oft; her turret being injured. Our solid shot broke to pieces as they- struck her sides." THE HATTERAS SUNK BY AN ENGLISII. IVEAN-OF-WAR It is impossible that the Florida could have been the vessel I eat sunk the 'United States gunboat Hat teras, as she did not leave Mobile until the night of the 18th inst., and the Hatteras was sunk on the 11th. We have reliable information that the vessel that did sink her was the British roan-of-war Spit fire, as the captain indicated in his reply to the Yan kee commander. "It may be that Commodore Wilkes had wearied out. British endurance by his extraordinary block ade at Nassau and other ports, and that orders had been issued which resulted in this naval engage- Ment." FROM VICKSBURG. ."Appearances indicate an early renewal of the conflict before Vicksburg, Mississippi. Five thou sand Yankees are working on the canal opposite the city. Their intention is to float their transports through when the ricer rises, and land their troops below. The farceur the enemy's fleet is 107 boats -96 transports and 14 gunboats. Thom may be more arrivals of gunboats before the fight begins. The strength of the Yzumkce army will probably be 119,000." THE PRIVATEER :FLORIDA Tile Savannah (Ga.) Rep . /Oilcan says that the rebel war steamer Florida, Capt. Maffit, has passed safely out of the harbor of Mobile, and is now riding the high seas in search of Yankee robbers. This news will shock the nerves of the Lincolnites, but they will be worse shocked when the returns from Maffit begin to come in. CAPTURE OF THE. ISAAC P. SMITH CrtAftLYSTOrr, Jan. 30.—The Federal gunboat /sato P. Smith, carrying it guns and 200 men, sur rendered unconditionally to our forces, this after noon, after a sharp engagement in Stono river. RECAPTURE OF LOLLY SPRENUS CHATTANOOGA, 'Tenn,, Jan. 30.—1 t is reported that Gen. Van Dorn has recaptured Holly Springs, Miss., with 700 prisoners and a quantity of army rations. MISCELLANEOUS ITEMS Major Reed Saunders, with his despatches, was captured by being betrayed by the crew of his yacht. As soon as they got out of Charleston, the crew 'tied him and steered for the fleet, and delivered him up to the Yankees. This accounts for his despatches not being sent to the bottom. At a meeting , at Halifax Court House, on Monday last, ion. Thomas S. Flournoy was nominated as a candidate for the next Governor of Virginia. TUE SOUTH ATLANTIC SQUADRON. Reported Escape of the Harriet Lane from Galveston Ray—Destruction of the Rebel P,rivateer "Greta," or "Florida," at Sett-- The Important News Confirmed by Va rious Persons Arriving front the Gulf of Mexico.. NEW 'lronic, Feb. 2.—The steamer Harriet Lane is reported to have escaped from Galveston on the morning of the 19111. The U. S. steamer Brooklyn and two or three gunboats chased her. Passengers on the steamer Columbia say that the pirate Oreto was totally destroyed. This is reported on the authority of the steamer Creole, which spoke the gunboat Cayuga on January 25th. It was reported in Havana that heavy firing was heard at Matanzas and Cardenas, as if corning from a serious contest at sea. It was also stated that the Oreto, or some other rebel vessel, had been chased by several Union gunboats, but the result is not stated. The steamer Creole arrived at Havana on the 28th from New York. She brought news that she spoke the United States gunboat Cayuga, which vessel re ported that she had observed a steamer on tire, sup posed to be the Oreto, and three other vessels were firing into her with great rapidity. The locality of the engagement is not definitely stated, but it was in the vicinity of the °ayes, oil' Cardenas and 'Matanzas.. • ANOTHER ACCOUNT. The New York Tribunes report is as follows : "Last evening, a gentleman who had just arrived at this port on board the Cumberland, from Havana, states that on Tuesday, the 26th of January, Pas sengers from Matanzas brought the intelligence that an American gunboat had destroyed the pirate Oreto. The next day the report was confirmed by the arrival of the Creole. He stated that the °dicers of the Cayuga (one of the war steamers that chased the pirate) spoke to her, and reported that the gun boat Cuyler outran the other vessels that were with her in pursuit of the Oreto, and drove her :nto narrow channel, north of Cuba, known ns one of the Bahama Keys, where she was shelled by the Cuyler, and totally destroyed. " The Oreto, or Oveto, or the Florida (she has as Many aliases as a thief) had been driven into Ha vana several days before by our war-steamers. She remained there long enough to take in coal, and, When she thought it safe to venture out to sea, started for Cardenas, but she was immediately pur sued by our vessels, several of which had been watching for her, and pursued her with so much vigor and speed that it was .impossible for her to escape, so she sought shelter in one of the Bahama Keys. "The news was.generallselwiros ,,, a great deal of excitement among the Seces sionists in that city. " Parties arrived at Havana as early no Tuesday morning, who had heard the giring of guns in the direction of the Dog Keys. "The Bahama is a chain of islands, about five hun dred in number, of which only twelve or foutteen are inhabited; indeed, many of them are sand banks, rocky islets, and coral reefs. It was oft' one of these unoccupied and uninhabited sand-banks, called Dog Keys, in consequence of their being our rounded by shoals of dog-fish, that a shell from the Cuyler set the Oreto on fire. "Captain Jack Elldridge, who has sailed from New York to Havana for thirty years, and who is as familiar with the straits of the Bahamas as he is with the streets of New York, heard the statement made by the passengers who came =the Columbia, and credits the report. He says that the pirate would naturally seek shelter among the Dog Islands and inlets of Bahama. The gentlemen from Havana who brought this news believe it to be true. The people of Havana credited it, and, at the time the Columbia left, it was the all-absorbing topic of con versation in the streets and hotels of Havana." NORTH ATLANTIC SQUADRON. Capture of the Anglo-Rebel Steamer Prin cess' Royal, with n Valuable Cargo and at Party of 'English Artlmans on Board— Federal and Rebel Accounts of the Cap turc. Wasnixerox, Feb. 2.—The Princess Royal, which has been captured off Charleston, had oa board six hundred barrels of gunpowder, two Arm strong guns, a large lot of machinery, eight hundred and eighty bales of sheet-iron, five hundred boxes of tin ore, a steam bakery, a hundred and forty-four bales of hardware, ninety-five cases of boots, two hundred and twenty-nine bags of coffee, and other valuables. BALTIMOITE, Feb. 2.—Tbe Richmond Whig of,Sa turday has the following : "After our form was sent to press on Thursday night, a telegraphic despatch was received announc ing the capture of the British steamer Princess Royal, Captain Lawson, while attempting to run the blockade into Charleston. _ . . "At the time of the departure of the Princess Royal from Halifax for Bermuda, the Northern papets announced the fact, and gave a description of the vessel and cargo. The Union cruisers were, therefore, on the look out, anti as she was making her way in before daylight, on Thursday morning, she was suddenly surrounded, and her officers com pelled to run her on Long Island beach, where she was captured. "The Princess Royal had on board a most valua ble cargo, consisting of eight Whitworth guns, four steam engines for gunboats, rifles, powder, &c. The bulk of her freight was 400 tons. the manufacture party of English workmen, ekilled in the manufacture of projectiles, were captured with the vessel. The pilot and one or two of the crew escaped on a boat, and reached Charleston. "We are gratified to learn that important de spatches from Captain Maury to the Government were saved by those persons." ARMY OF THE CUMBERLAND. Occupation of Franklin—Narrow Escape - of Gen. Franklin . —Narrow Escape of Gen. Forrest snit His Staff—Capture of Pri soners. NASHVILLE, July 2d.—Colonel Robert .Tohnson's Regiment took possession of Franklin, Tennessee, last night. Forrest and his staff made a narrow escape from capture. A rebel captain and two of his men were taken prisoners. One of our men was killed. The 11. S. Senatorship from New York— Ex-Cor. Morgan Nominated by the Re publicans. ALBANY ? Feb. '2.—Ex-Governor Morgan was to day nominated by the Republican caucus of the Le gielature for United States Senator. ALBANY, Feb. 2.—The Democratic caucus decided to-night not to make any nomination for United States Senator. • Indian Fight in Washington Territory. SALT L.txe Chrr, Feb. I.—On the morning or the ?9th ult., Col. Conner had a four-hours' desperate fight with the Indians on Bear river, in Washington Territory, in which 22. i Indians were killed, and many are supposed to have been drowned. He took 173 horses, and destroyed their lodges, provisions, &c. Our loss was 15killed, including four officers, and 38 wounded. From California. Sam Faarmisco, Feb. 2.—Salled, Ocean Express for Callao. Trade continues very dull. The past month has been one of equal depression in bu siness. The Seriatorial caucus will recommence to hives tigate,the corruption charges to-morrow night. It is expected that the &at section of the Pacific Rail road will be completed next summer, so that'the cars can run to the foot of the hill. Judge Dreamer has decided that "greenbacks" are not legal leaders. Markets by Telegraph. Cvsc.ticwivrt, Feb. 2.—Flour active and firm at s6.lC@ti.ls. Wheat—white, $.1.2861.30. IVidsky in good demand at boa. Mean York, $13.50@14.37. American gold unchanged. XXXVIIth CONGRESS , --Third Session, WABII/NOTON, rebr Luny 2, 1883. SENATE. Com n 'cations And Paitiollo. A Communication was received from the Secretary of the Smithsonian Institute, transmitting a resolu tion of the Board of Regents, atating.that George E Badger hito not attended the meetings of the Board, and they understood that he with in the rebel army, and suggesting that he ought no longer to remain e member of the Board. Mr..I.2.IGIIAJIDSOPI (Dem.), of Illinois-, presented the petition of Madison Y. Johnson, andlasked that It might be read. Dlr. GRIMES (Rep.), of lowa, objected to the reading unless It wee something especial, as it was contrary to the rules of the Senate. Mr. ItICHARI)sON said that the petitioner had been arrested, and imprisoned, and discharged, with out any assigned cause. He moved thotivcconmit tee of three he appointed to investigate into the facts of the arrest of N. Y. Johnson, with power to send for persons and papers. Mr. SUMPTEIt (Rep.), of Massachusetts, moved that the petition be referred to the Committee on the Judiciary. Mr. Richardson read the petition, stating that the petitioner was arrested last August, upon a telegram from the Secretary of War, and no cause assigned or any warrant, and imprisoned till the 13th of September, and no reason ever assigned for the arrest or the. discharge. He said that an American was thus arrested, without law, and in violation of law and all constitutional principles, and the best thing the American Seuatecan do is to bring to light these men who make charges against their fellow-citizens. There was a feeling. wide and deep in the section of country he came from, on this subject, which will lead to disastrous conse quences, if these arrests are persisted in. Mr. ANTHONY (Rep.), of Rhode Island, said he understood that this man could have been released at any time by taking the oath of allegiance. • Mr. RICHARDSON said the oath was offered to him after he was arrested and imprisoned, anti the wrong done. Mr. ANTHONY. I understand that he refused to take it. Mr. RICHARDSON said he did so refuse. Mr. ANTHONY. Then, I think the Senate has more important business before it than attending to. the requests of persons who refuse to take the oath of allegiance to the Government. I have no sym pathy for him. I move to lay the petition on the table. Mr. BAYARD (Dem.), of Delaware, thought there could be no propriety In tendering auch an oath to man arrested unlawfully. It was unjust, as was the arrest. Dlr. HOWE (720 p.), of Wisconsin, insisted there Wall no insult in Raking a man who has fallen under suspicion, in times like these, to clear himself by, pledging anew his faith and loyalty. It is a crime when any man, in times like these, and under t Go vernment like this, so shapes his conduct as to in duce any suspicion of his loyally, In all cases of suspected-. theft, Tim - person - who objectsto being Searched generally has stolen goods upon his person, and he was afraid these men, who are mot willing to take an oath to support the old flag, if the truth was known, are not true to that flag. The petition was then laid on the table YEAS. IlTalc (.) Illarlan E :Math; (t) Hicks Howard (R.) Howe (11.1 King (11.) Anthony (R Arnold (It.) Chandler (1L) Chink (10 Pera , ontleu (11.) Foot (IL) Foster (It.) Grimes (IL) NAYS. Lntbnin (D.) McDougall (D.) Powril (11.) Rice )D.) Ric) ardbou (D.) I rmatneipation CArlile (U.) DaviB al ) Harding (U.) Henderson (U.) Kennedy (U.) Dlr. HARRIS (Rep.), of New York, from the Com mittee on the Judiciary, reported back the bill to aid the State of Missouri in emancipation. Payment of the Troops. Mr. "WILSON (Rep.), of Massachusetts, offered a resolution directing the Paymaster General to in form the Senate what payments, if any, were made up to the 31st or August, 1862; and, if none were made, what was the reason for such non-paymont. Adopted. Legislative and Judicial Appropriation The legislative and judicial appropriation hill Was then taken up,-the gii.stion being in regard to thZt lipprOplitttlon for the AgriaUltoc.: l Department. Mr. ANTHONY (R.), moved to increase Dieftlitelllnt proposed by the Finance Committee ($65,030)" to $llO,OOO, of which $30,000 shall be expended in expe riments to procure a substitute for cotton. Mr. HA_R LAN (Rep.), of lowa, moved an increase of the amount to $130,000. Mr. Harlan's amendment was rejected—yeas 19, Pays 20. Mr. ANTHONY withdrew his former amend ment, and offered en amendment appropriating twenty thousand dollars for experiments in pre paring hemp and flax as a substitute for cotton. Adopted—yeas 26, nays 12. Mr. LANE (Rep.), of Kansas, moved to amend so as to appropriate $20,000 to encourage the culture of cotton. Rejected. The amendment of the Committee of Finance, making the appropriation for the Agricultural De pertinent $96,000, instead of $130,000, as in the House bill, was Adopted. The amendment, striking out the section Increasing the salary of the Assistant Secretary of State to $4,000, was adopted. Mr...POWELL (Dem.), of Kentucky, offered an amendment, repealing all the laws giving bounties to the cod and other fisheries. Rejected—yeas 8, nays 34. The bill was then reported to the Senate. Mr. WILSON (Rep.), of Massachusetts, moved to amend so as to make the appropriation for the Ag ricultural Department $BO,OOO. Agreed to—yeas 27, DAIS 14. Mr. GRIMES (Rep.), of lowa, moved to amend, so that the appropriation of $20,000 for preparing hemp and flax as a substitute for cotton, should be expended under the direction of three commission ers. Rejected. Mr. LANE (Rep.), of Kansas, moved to amend, so as to appropriate $3,000 to distribute cotton and to bacco seeds. Agreed to. The bill was then passed, and the Senate ad journed., HOUSE OT 11EPRESENTATFVES. Approprlatidm Rills.' The House concurred in the Senate's amendments to the army appropriation bill, with the exception of an item of five thousand dollars fur the survey of the Minnesota and Red Rivers of the North, with a view to improve the navigation of each and connect the same by a canal. The House also concurred in the Senate amend ments to t.ine Count.lar Linn cup:l'm:me approprzatiott bill. Taxing Insurrectionary Districts The House* ponied the Senate bill amendatory of the act for the collection of direct tasation in in surrectionary districts. It alters certain provisions for the sale of land in eases of nonpayment. • Employment of Colored Troops. The Rouse resumed the consideration of the bill authorizing the employment of colored soldiers and sailors. Mr. 'WILSON (Rep.), said that this was regarded/ as a measure of more than ordinary interest, as was evident' from the earnestness with which it was pressed by its friends and opposed by its enemies. He argued that the claim of Government to those held to service or labor is superior to the claim of any' per....—whomsoever. When the nation's life is in peril it may citultit‘.-its employment every per . eon capable of bearing arms, and not truing allegi ance to any foreign Government The life of %iv. Ire public is more valuable than the rights of the most cherished citizens, and infinitely more valuable than those claimed by the slaveholders. The power to employ colored persons or slaVes for military uurposes being ample, he proceeded to show that such use of them was urged by Gee. Washing ton himself Madison, and other prominent public men, and at this time the policy was expedient. It was proposed by this bill to say to the blacks, as Jackson said to them at New Orleans in 1814, their services have too long been overlook- - ed. He referred to the speeches of Mr. Cox, and others, as calculated to produce a dismemberment and were but echoes or the rebel papers of Richmond. If such gentlemen had labored half as much to present an unbroken front to the enemy as they hnd to prO duce distrust in the Administration, we might look for peace before the next anniversary of American Inde'pendence. He had yet to learn that the people objected to any means to suppress the rebellion com pel obedience to the Constitution and laws, anti save the Union, not with New England left out, but all of its territory preserved. Mr. COX (Dem.), of Ohio, briefly replied to a por tion of Mr. Wilson's remarks.' A speech he had made in New York had been misinterpreted. lie caused to be read a paragraph from it, to show the position he took, not only in New York, but in Ohio and elsewhere, and this was the position of the Democratic party. They never will, under any con dition of circumstances, consent to the dismember ment of the Republic. They should not be tabooed because they warned the country against the dan gers of fanaticism. He repeated that Washington, Franklin, and others, had refused to sanction the employment of blacks. The proposition made by this suicidal and infamous bill would so distrust and dampen the patriotism by associating negroes with white men. and disintegrate the army. Mr. ALLEN (Dem.), of Ohio, quoted the former assertion of the President and Republican members of Congress, to show that they had taken the ground that they neither had the right, intention, or consti tutional power to interfere with slavery in the States; but subsequently, they had violated their solemn pledges. The Republican party could not be vindi cated from the charge of being an Abolition organi zation. If the war had been conducted according to the Crittenden resolution, namely, for the vindi cation of the Constitution and restoration of its authority, the Union spirit in the South, instead of being crushed, as he feared it was, would have ac quired such force as to have successfully counter acted the efforts of Secession. The use of negroes for soldiers, as proposed, was not, in Ina opinion, sincerely contemplated. It was an attempt to di vide the people by presenting the negro in a new at titude. The white soldiers would never consent to be placed on an equality with negroes. This bill was an admission of weakness on the part of the whites, and showed that it was necessary to call ne cross to our aid. Mr. WHITE (Dem.), of Ohio, reviewed, in terms of condemnation, the confiscation act, and next the proclamation of the President, which was the ema nation of a Dictator, and could not be issued until the Executive hail put his foot on the Constitution and placed a crown on his head. It was in violation of every principle of the Constitution and of law. Those measures disposed of all the property of the Southern States, by legislative enactments, and by the President's decrees, proclamations, and bulls. Measures, too, had been introduced for purchasing the negroes of Missouri, Kentucky, and other Bor der States ; but the people of his State would never consent to pay the money. This was to dispose of slavery in the non-seceded States as part of the Ad ministration's policy. Mr. HARRISON (U.). of Ohio, asked whether he understood his colleague to say that the loyal people of Ohio will repudiate any tax the courts decide constitutional? Mr. WHITE replied—Not at all. They would abide by the law, and because such taxes were ille gal, the people of Ohio would refuse to pay them. The teat of loyalty was respect to the Constitution and law. He opposed the pending bill. The number of whites in the army is limited, while the • only limit to the employment of negroes is their color. The object of ouch a black force is to subjugate the whites of eleven States. This was a Government of white men, and he and the people would never be satisfied with any other. Mr. NAY (Dem.), of Maryland, spoke against what he characterized as an attempt to elevate the negro to an equality with the white man. Con sidered as a national policy, it was eminently dis graceful. The united judgment of mankind would pronounce upon It its emphatic condemnation. The example of the King of Dahomy had been presented for their imitation. That despot had an army of blacks. It was said to be tremendous and In vincible, but it was ferocious and merciless. The people of Maryland would recoil with abhorrence from the pending proposition, and the civilized world would condemn it to unmitigated acorn. Rather than •by it the negroes should be let loose like fiends of hell, the people of his State would plant themselves in defiant opposition to it. He was opposed to the bill because he was opposed to the war. He came here as a representative of peace, and .as such, the ad versary of military supremacy. He spoke in favor of upholding the Constitution. The fathers of the Republic—Washington and others—had warned us of sectional agitation. It was the disregard of these warnings which has involved us In our present trouble. Mr. STEVENS . (Iiep.), of Pennsylvania, said this bill had been, opposed for various reasons. The gentlemen who had just taken his seat said be could not vote for it, because ho was opposed to the war. lie (Mr. Stevens) did not expect those holding such views to vote for it, because it was an efficient engine for carrying on the war. lie remarked that soon the two years'and nine-months term of volunteers will expire, and thiswould take from the army three hundred thousand men. To supply their places, with gallant soldiers, in the present condition of the country, fitly thou sand white men could not be raised by voluntary en listment, and to enforce the conscription was out of the question. The" Denrocratie leaders had been busy during the past year in denouncing the conduct of the Administration and sowing distrust. They say this is an Abolition war, and hence we ought to lay down our arms and compromise. Why, he asked, should not the black man he employed to save the white want .lie had little respect for those who would save rebel property at the expense of the life of the white ffutu. if negro soldiers should be employed, and the white soldiers should lay down their arms, as his colleague (Mr. Wright) had said they would, then in pod ' s name, let them go. They ought to be h e the rebel army. His cal league should have reported midi subordinates to the proper department tiret they might be tried and shot. We are fighting for the life of the nation, and if in the heat of the conflict the chains of slavery are melted off, so 'such the better. Ile believed the Democrats at the North are holding secret meetings, under the league of the Knights of the Golden (Artie. with a view of seizing the con trol of the Government and the person of the Presi dent. In this he did not believe they would succeed. Tie did' not believe if colored persona were employed as soldiers a servile war would result, because they would be under seven military discipline; but even if set vita war should result, it would be farpreferable to the war which the rebels are cruelly and merci lessly waging against the country. Ile concluded by referring to documents showing the good military results which may be e:spected from such an auxili ary. lie ,moved the previous question, which was seconded, and the main question ordered to be put. The House first voted ow Mr. Maynard's motion to refer the bill and pending amendments to the Committee on Military Affairs. Negatived—yeas 54, nays 83. The question was then taken on Mr. Hickman's amendment, which was rejected. [lt authorized the I'resident to raise as many regiments, not exceeding three hundred, of African or aotomal persons of the United States, as in his disc:laical he may consider necessary, to be uniformed im same marked or spe cial manner, and equipped as-he may direct, etc. It also provided for a line of steamers between New York and the coast of Africa,. etc.} The bill, as modified by Mr. Stevens, is as follows : Be it enacted, 5.c., That the President be, and he is hereby:, authorized to enroll, arm, equip, and re ceive into the land and naval-servlce of the United States such number of volunteers, of African de scent, as he may deem useful to suppress the present rebellion, for such term of service as he may pre scriboy not exceeding five yeara- ' the said volunteers to be organized according to the regulations of the branch of service in which they. may be enlisted ; to receive the same rations, cleating, and equipments as other volunteers, and a monthly pay not to ex ceed that of the volunteers; V., be officered by white or black persons appointed and commissioned by the President, and to be governed- by the rules and arti cles of war, and such other rules and regulation. as may be prescribed by the President. ',voided, That nothing herein contained, or in the rules and articles of war, shall be ao construed as to authorize or permit any officer of African descent to be appointed to rank, or toexercise military ornaval authority over white officers, soldiers or men, in the military or naval service of the United States. Nor shall any greater pay than $lO per month, with the usual allowance of cloth ing and rations, be allowed or paid to privates or laborers of African descent., which are or may be in the military or naval service of the United States. Provided Porno.,. 'Phu *he. oloy.ae. of tv, est citizens the States exempt by the President's proclamation of January lst, 1663, shall not be re ceived into tho armed service of the United States, nor shall there he recruiting offices opened in either of the Stales of Delaware, Maryland, West Virgi nia, Kentucky, Tennessee, or Missouri, without the consent of the Governors of the said States having been first obtained. The bill was then passed--yeas 83, nays 55 YEAS. Fenton (R.) FessendenS. C. (R) Fessendeu T. A. D. (R.) Franc:hot (IL) Frank (R.) Conch (R.) Gurley (R.) Hooper (R.) Hutchins (R.) Julian (R.) Kelley (R.) Kellogg (R.) Mich. Lansing (D.) Loomis (It.) Lovejoy (R.) Low (U.) Mcln oe d McKean (R ) ranKninlit (R.) McPherson (R.) Maraton (D.) Mitchell (It.) Morrill (R.) Vt. Nixon (R.) Troll (R. ) Olin (H. ) Phelps (R,) Cal. HAYg. Harrison (1,1.), Holman (DJ Horton (R.) kohnsen Kellogg, (R,) Korman (D.) Law (1).) Larear (11.) - Leary (U.! Mallory (17.) May (Dent,) Maynard ((1.) Menzies (U.) Morris (D.) INoble (D.) Norton (I).) Odell (D.) Pendleton (D.) az adjourned. Lane (R.) KIIINIS Morrill (R.) Pomeroy (IL) Sunnier (IL) Wndo (R.) Wilkinson (R.) Wilson (IL) Mass Aldrich (R.) Alloy (R.) Arnold (R.) AnMay (It.) Babbitt (R.) Baxter (R.) Beaman (Ii) Bingham (IQ Blair (IL) l'a. Blake (R.) Brown (U.) Dollinton (IL) Campbell (R.) Casey (B.) Chamberlain (R.) Clerk (K.) Colikv . (R.) ConklingH.A. (R.) Clowning R. (it.) Conway (IL) Culler (it.) Davin (R.) Delves (It.) Bann (IL) Edgerton (R.) }-divards (R.) Eliot (It) Ely (B.) Sanlsintry (D.) Turyie (D.) Wall (D.) I wince (U.) Wilson (U.) Mo Alien (D.) Ohio Allen (Di ) Ills. 4uf,..ona ) baneyl 4 . Pa. Biddle (D./ • Blair (U.) Vs. Clements (D.) Ccobbox (D.) (D.) Cravens (D.) Crisfield (U.) Crittenden (U.) Delapinine (D.) Sranger(D.) rider (U.) Hale (12.) . I Hall (U.) Harding (17.) The House th PENNSYLVANIA. LEGISLATURE, HARRISBURG, February 2, 180. SENATE. The Senate met at halt past eight o'clock. Petitions. Mr. SERRILL presented a petition for the rechar ter of the Bank of Delaware Clounty. Mr. KINSEY, a petition from the citizens of Bucks county asking for the passage of a law to ex clude negroes and mulattoes from the State. Mr. IVIOTT rend in Once a bill to authorize the Lehigh Navigation Company to extend their rail tond from White }Tavel' to Mauch Chunk. The Senate then adjourned. The House was called to order at half past seven o'clock by Speaker CESSNA. The reading of the journal of Friday was dis pensed with. Mr. SAINT presented a memorial from sundry citizens of the Commonwealth in reference to illegal and arbitrary arrests. Referred to the Committee on Federal Relations. Mr. TRIMMED, a petition from citizens of the State, asking for the passage of a law prohibiting isegi me from coming within the limits of the Com monwealth. Mr. REX, a communication from the officers of the 'Willow Grove and Germantown Ylank-road Company, asking permission to i.so sant:loam stock. A large number of remonstrances against the re construction of the dams at the head of the Lehigh Navigation, were also presented. Mr. BARGER presented a petition from the As sessors of Philadelphia, asking for compensation for TH Ald ng the military enrollment. Nc. PANCOAST, three remonstrances from the citizens of Philadelphia, against the laying of rail road tracks on Seventh, Franklin, and Twelfth streets. Mr. GLENN, a petition, numerously signed, asking for the passage of a law defining the mode for making the draft, and providing for compensa tion in lieu of service from persons of conscientious scruples. The Committee on Militia System reported, as committed, a large number of bills ratifying and conflrreing the acts of county commissioners in granting bounties to volunteers. The Committee on New Counties reported,. with amendments ' an act to erect a part of Luzerne into a new ^onnty,to be called Lackawanna. The cammittee on Estates and Escheats reported a bill relative to the estate of Peter Keyser, of Phi ladelphia. The House then adjourned. Excitement in Indiana—Armed Resistance to the Arrest ol Deserters. INDIANAPOLIS, Feb. 2.—The arrest of deserters from the United States army, in Morgan county, being resisted, Colonel Carrington, commanding the -United States forces here, sent a squadron of caval ry to that vicinity on Saturday. They . were met, and fired on by an armed mob. The cavalry charged upon and dispersed the mob, and succeeded in cap turing the deserters and six of the citizens who aided them. No one was hurt on either side. Con siderable 'excitement prevails, in Morgan and the adjoining counties, in consequence of this event-. A Family Poisoned by the use of Bye Coffee. NEW Yong Feb. 2.—The health officer of Brook lyn has prohibited the sale of rye coffee in several stores in that city, a respectable German family of eight persons having been poisoned. The seeds of poisonous weeds growing among the rye are roasted and ground up with it. Arrival of the Steamer Ocean Queen. Nsw Yong, Feb. 2.—The steamer Ocean Queen, from Aspinwall on the 25th ult., arrived at this port tonight, with $300,000 in treasure. Tile South and Central American advices contain no news of importance. NRIVYanle, Feb.2.—The bank statement, for the week ending on Saturday, shows flu Inciertee of loans of $500,2:0 " " specie 336,1,38 Decrease of circulation 76,9 M Increase of deposits G 93,1324 Fire at Corning., N. Y., and Loss of Life. COM:17.10 N. Y. Feb. 2.—The dwelling of 11. C. Pool, near Titusville, was destroyed by fire on Sa turday, and the wife of Mr. Pool, hie daughter, and a Mrs. Gonzales, perished In the flames, Colonel .T. Cook Safe at Trenton. TRENTON, N. S., Feb. 2.--Colouel J. Cook, who was reported to have been killed and robbed at Fal mouth, Va. has arrived in this city. Instead of being killedand robbed, he returns with over $lOO,- 000, to be distributed to the families of the volunteers dining the present week. General Pope and the War. At a recent dinner tendered to General Pope, in New York, be responded to a toast as follows: On rising to respond, he thanked the company for their expression of kindly feeling toward him, re garding it as an evidence of their deep feeliug for the cause of the nation. He said that he accepted this compliment gratefully, because he believed it indi cated that they thought he had striven in all ways honestly and faithfully , to save the Government, and that he had at all times, and in every posi tion, endeavored to perform hls duties with zeal and fidelity. [Cheers.] We had, in his judgment, touched the ddrkest hour of our history. Serious times were upon us, and in times like these it did not become any of us to suffer professional considerations to deter us from . putting forth all our energies in de fence of our country. He thought he could say that from the beginning of this war he had put forth all his abilities in defence of his Government. He loved this Government. He loved it as a man should love hie Maker. Its honor was as dear to him as his own. Ile had seen ita beneficial influence. It cherished and educated hint in his boyhood, and sent him forth to do battle in its cause. Ho had followed its banners, and faced death in its behalf] and might God forget him and his if he should no longer be ready to strike for it. (Loud applause.] He thanked them heartily for their kindly feeling thus manifested to him. He should carry away with him to the West grateful fecling•toward the people of New. York, and also the feeling that, how ever the people might be divided in relation to the campaign in Virginia, they were willing and rinx- Jens to do him all the justice that he deserved. [Loud cheering.] PUBLIC SCHOOL SYSTEM OF TURKEY.— The Turkish Minister of Public Instruction has made some extensive changes in the management of the public primary schools in Stamboul. The teach ers of twenty-four of them have been changed, and more competent ones appointed in their stead. The new instructors are to receive, in addition to the fees paid by the children, a salary of twelve liras per annum from the State. The eourse of instruction rs also changed. Hitherto nothing but the Koran was taught, but other useful branches of secular knowledge are now to be included. The age at whirls the children are admitted to these primary schools is fixed at six years, and at ten they are re moved to the advanced establishments. The long talked-of university is also once snore under con sideration. The Minister of Public Instruction has latterly devoted much attention to maturing a plan for carrying out this important project, which will, we are asnued, shortly be ready for publication. His Highness has also founded a professoiship of French at the Smyrna College, and baton Effendi a member of the Council of Public Instruction, will Shortly leave town to inquire into the present state of this institution.—Levant Herald.. RECRUITING ON THE PACIFIC COAST.-:- °Hers have been despatched from the war Depart ment to Brig. Gen. Wright, commanding the De partment of the Pacific, authorizing him to raise a regiment of infantry in California, and also to 1111 up the lirst California dragoons toe regiment. Pike (R,) Pommy (R.) Porter (IL) Rloo (R.), Me. Riddle (R.) Hollins (11)N. 11. Sargeant (It.) Sedgwisk (It.) slisnicn (R.) Sheffield (U.) Shot hammer (11) Shonnnu ( IL) [Slone (IL) Spaulding (R.) Stevens ( R.) rrnin (c) Trimble (DJ Trowbridge (R.) Van Horn (R.) I Walker (IL) Wall (IL) Wallace (IL) washburile (R.) Wheeler (D.) White (R.), Ind. Wilson (IL) Windom (IL.) worm:ter (IL) Price (U.) Robinson (D.) Rollins (U.) Md. I Shiol (D.) ! , tiles (CT. )_ Thonms (U.) Mass Thomas (li.) hid Vallandigham(D) Vibbard Wadsworth (U.) Wobstor (D.) • Whaley (D. Wh'ln (D.) Ohio Wick If Ife (U.) wood (D. ) Woodruff (D.) Wright (n. ( . Leaman (U.) Bills Introdutted. HOUSE Petitions Bills Reported. New York Bank Statement. DECIBIOIN UNDER THE TAX LAW.—The following letter received in this city OA Saturday is important, inasmuch as it Bets at rest a matter about which there has lately been considerable mis apprehension: THEASCR.I" DE.P'T, OFFICE CP INTEL Revesrirg, WASNINtrroa, January W, 18631 Sin: Your letter of the 27th inst., relative to the extent of tax on repairs done at machine shops eu engines, cars, &c., has been received. In answer I have tosaylhat it is a well-established principle that many of thearticles naedin the build. ing of houses4shope., bridges, ice., are In themselves manufactures- and liable to tax, whether they are manufactured by the shop, house, or bridge builder, or purchased by hit:Fla materials for said atructures. The same principle holds in relation to repairs of en gines, locomotives, 4,4. articles made use of in such repairs, which have in themselves a commer cial value, and which would bailable to tax if sold or retrieved for sale from the place of manufacture, are equally liable to tax when made for and con sumed in making tile repairs before mune& Yours respectfully, CFIEO. S. BoUTIVELL, Commisioner. D. I'. SOLVIIWORTIr r Esqi, Aster 4th Distric s t, Phila delphia, ?a. On Saturday morning Washington Keith, Egg, United States-Amex:tor of the First district, received an official communication front the 00MuntastOtier of internal Revenue, respecting the tax on news papers and' advertisements. The COMMlSSlollet states that receipts to the amount of $l,OOO for ad vertlsemen* shall be exempt from duty, and that the returns of newspapers shall be made quarterly. lie further adds that the- sum of dc,oon of the annual' receipts for advertisements, by any person or per sons, iB exempt from the-three per cent, duty, and that the tax can•be levied - only upon the excess over sl,ooo,and only after the nun, Of $4OOO shall have been received by tire owner or owners of any newspapers. TnrPi GUAIID.-0110 iriltitlfed and seventy-five convalescents arrived at theoificeof the provost guard yesterday afternoon, and /eft about ID o'clock last night. They were from the IVeat rhiladelphla.Hospital. During the evening one of their number threw a bottle at the head of Sergeant Miller, and injured him. severely. The offender was locked up ih one of the cella for punishment. The monthly report of the provost guard is as follows : Rebel . Stragglers . 139 Convalescents 130 Returned from Fort Delaware 39 Deserters 126 Exchanged prisoners Guards from railroad 4 Paroled prisoners 4 On furlough 21 In transit= 27 /bloom. OF WATErt.—The following ill the amount of water furnished by the works named, during the month of January: Works. Gallons Pamped Average trai R. during month. rumpod daily. Fairmount 295,206,564 9,522,792 Schuylkill 148,125,720 4,778,219 Delaware 82,972,0 M 2,676,646 Twenty-fourtl4 ward ... 37,156,140 1,193,015 .. 663,461,344 16,176,172 THE ASSOCIATION OF LADIES for the management of the 'Homeopathic Hospital take pleasure in acknowledging the following donations, to January at: Susan bhaw, 2 jars of canned peaches; The Ladles' Aid Society, four flannel shirts ; G. T. Beale, 11w:borough, twenty quarts of milk; Mrs . Moore, sixteen quarts of milk; Mr. Rosche, biscuit; him Price, doughnuts. ACCIDENT.—About half past six o'clock last evening one of the locomotives on the Baltimore Railroad ran of the track at Washington avenue and Nineteenth street. A. brakeman, named .Toseph Blocks, who resides on Carpenter street, below Se venteenth, was badly injured. FINANCIAL AND COMMERCIAL. TRW MAYSEY DIAMICFM. PitILAbELPITIA. Febretttr 2 1.190 It osiness opened this morning with con, iderable vigor, and bids for the great speculative commodities—gold and old demands—were very active. The former opened atls7).‘, and fall before the close to 1.163;: the latter rose to 154, - end closed firm at that Eyre. The State Troa sneer was busy to-day paying the interest on the State loan, and his office was the scene of great excitement, as the interest was payable in coin. The greediness with which some parties grabbed at the yellow pieces showed how greatly they were appreciated. and the determined Map upon many a full purse scoloc4 to say: "You are going to stay there awhile, my boys." Money was easy to-day, six per cent. being tho rnlint rate for it. Government securities are more in demand, and holders are firmer in their prices. The Stook market was moderately active, with a Weakness in the fancy stocks. In State loans there wore no transactions; 104 was bid for the fives. Old City sixes rose %; the new were steady. Pennsylvania Rail road first mortgages sold at lai—an advance of 2. Rea ding Axes, 1100, rose 1; ISSess S per cent. Sunbury and Erie sevens sold up to 112. Union Canal bonds fell off to la North Pennsylvania. Railroad sixes rose Si; the tens fell off 1. Camden and Atlantic second mortgages sold at 62—an advance of 2. Allegheny Valley Railroad sevens sold at par. Chesapeake and Delaware Canal sixes sold at 102. Bhutra sevens rose X. Schuylkill Navigation sixes were steady at mg. Pennsylvania Railroad shares rose to IP% an ad vanes 01 1%. Little Schuylki I fell off to 43. CllbilViSell rose the preferred was active anti stead) at2l Hunting don and Broad Top rose 1. Reading opened et 41,i. closing at 45%. North Pennsylvania sold at 11%. Cam den and Atlantic fluctuated between :2ii@22%. Elmira was steady. Camden and Amboy sold at 1.13%. Beaver Meadow at Locust Mountain Coal sold at 54. Green Ifountain 3N. Penn Mining at 2%. Delaware Division Canal at 41. Schuylklll Navigation fell off Morris Canal was stiadY. Passenger Railways generally advanced. Seventeenth and Nineteenth roe .4. Second and Third sold at rti. 'Went Philadelphia row 1. Teach and Eleventh im proved three doilare per &tare. Thirteenth and Fif• temilh Green and Coate. 2).. Manufacturers' and Mechanics' Bank fold at Zl. Mechanics' at 5536; Fanners' and Mechanics' at 524. Girard at 40X. Commercial at 49%. Union Bank of 80/11. ate. • • • . The market alma firm—V.3o,oo6 in bonds and 4,9.30 glares changing hand*. Drexel & Co. quote: United States Bonds, ISSI ft5,K United States Certificates of Indebtedness—. 94'.4 fin United States 73.10 Notes ... 101 0 1 ie 10$.'j10$.'j Quartermasters' Voucli ern ...... .. 7 S d. Ord cra for Certificates of Ind , ' ' 4 Demand Notes 533.1 aslivre. Jay Cooke & Co.quote Government securities. dm.. as follows: United States Sixes, ISSI Uaited States 7310 Notes . . Certificates of Indebtedness Quartermasters' Vouchers. Demand Notes Messrs. M. Schulze d: Co., No. 16 South Third street, quote foreign exchange for the, steamier Arabia, from Boston, as follows: London, 60 days' sight Do. 3 days Paris, 60 days' sight Do. 3 days Antic erp, GO days' sight—. Brinson, CO days' sight Hamburg. 6 0 days' sight... Cologne. 60 days' Eight Leirde, 60 days' sight Berlin, GO days' sight Amsterdam. 60 days' sight Frankfort. GO days' sight lifarket firm v gsvog , ! Jo.sg=2:-4.9- , r F rs.R.7...gfisEas=arsss.,s.. I ge ' 45 14. 3 54E-q 1 e - . 1 1. 3,, ,• . E , :-..F. 4 F p- :..... -• ii. " .. ••.- q ;4 A E.' . E . .., i. •• • • . ..,• 2 • o r: Po ei 4 .. a 4 4 :4 • memAgippAgig§§§§§A 4 l ' 1 :- Et 4 § 7 4.3ffeViiig.§ - § - §WO. g g .. 1 ~... -, gegM00000,0!5 . :a: .w §§l2§itantinuffa P .! i 4 - 1 i j pgzergoviwrimmi ,1 tR M 1 § §MinailiAllgg - FM F ''. t X 1 . 1 ;---• t 4 I - .) • Al,Stglaigns - S. L VAIg :i n .t . 1.3 a aavgAgieglAwfataim - '. 1..= , 0 . .... h, e 4 ea , 0 '... 22 A " .' '''' Z4A W Aii s ki.l3 -., *,.•.:4-424p1 . 1.?-1.? -, • er a - 1- 9 3 g§gsrethlßP/§§§As§ '''i; M - ri er..P w t ., y E ' - 'g glssin -eq 4 :1 , 0 g= = sn P..: 4. P •• .f--. : 4 1 ,- ..r.., , ..r. ' .-; g • ,„,,,,t tv 4 3' g 1MPF00.41 41113 3 1 ? ; - g §ggAnaftattft 4 4.1 43, - 51551 1 N§ 5 UWWICH . g •`§ I §§ - v.-AJCviag - f4-I§ao - § ii . %. lac ei 0.'131 ge. Balances. .$4.266,+12 14' - $-kri,74l 46 . 4;49.6.53 Sol .% 1 0 1.162 G . 4,916,611 14 419,964 di . 4:262.44 , 1 21 2 - ,Y2,211 6.1 .. 9,974,191 SI ? ?7:1:4 11 - 3,919,796 79 377,917 SI ENE $25 07 emend sh to at Nar The following etc banks of Phllndelp January 6.. February 3. March 3..... April 7 May if June 2 July 7 August 4. September 1 October 13. • • November 3 31,016337 .4),*.5,119 3 1 ,393 li6 5,1157,8/1 29 334,432 31.747,079 83.270,661 33, 6 17.9 W *300,351 MS-V. 163 56.514,335 315,979,123 $6,737,0"1 :37,479,366 36,774,7 V 36.4611,0111 35.1?4,340 36,,T2.9121 37,267,93) 77.619,675 3 7A0 , 4 5 7 37,416,694 37,479,712 3;.^_(5,09{ December I imassa Febnia ry- 2. The follow Ing is a statement of the butineita of the Philadelphia Custom House for the month of Jaunar7 1663, as compared with the two prey iouo years: January ' 1931. 1.5.3:1 15.671. In 'warehouse Jantutry 1..51.161,#11 $751.6 . 15 $141521 Wsi leh 'd from 5 weiga Rorts.. 5'11.497 77224 21.1.754 " . other districts... 217418 136 7 4 .X.,3.1.3 Withdrawn fur consumption 1f9'.155 an.on N. 3.2.1 transportation.. 96.008 121 .... exportation 1.723 .... 574 in warehouse January 31..1,690,415 5.14.,:i' 9557,3 Butereo for consamptim.... 655.436 113.1:01 211.617 Free nierchandbe mitered... u 3.402 10.713 GIS . % Lonestle produce exported.. M 5,460 11 . 3:,437 1.603,553 ...W. - TIES RECEIVED. 500. IS6I. ISO . 1963. Ja unary AtN7.lal 151.34-1 5151.14.3 0133,9311 Duriog the mouth of JR attar). the 'business of ilia Uni ted. States Assay Office. at New York. was as follows: Deposits—Gold, $127,701; Silver, 5P.701). Total, $147.40). Gold bars steamed, $101.078; scat to U. S. Allot at Phila delphia for coinage, sl3i,fr,3. ' The following Ma, statement of the receipt , and bailments of the Assistaut Treasurer of the Uaj States f, , r New York for January, I=l Iteeeipte daring the month: On acount of Customs SI. DG, 359 Loans 2,664,136 Internal Revenue 1,6u9,9211 Transfers 13,009,0 1 0 " Patent fee: 4,357 - " Post Othco Department • 261,999 . Dli,ecotlaneous.... ...... 72.67-4 ----VI), MI, 318 Total ' • Payments du riot; the months Debit btOstice, Dec. Si, IM• • •- Trensury drafts Post (Mee drafti, Balanco. Jan. 31. 1563.. ir4323,04,3 1 163 ess $1..(417...pre• 9isiftff3l 93 „Ili -oiss 2 11 , 1 1 17;; if St lb. ao3ilN srusgq , • • ...126 R 127 ...115 4116 115;Di 115 m 1 16 66 61 65);( GG 4,111 9S 07 lOW, the couditi itms times ditrin., ,ai52,058 Si on of the g 1962 and. 213)6,014 20.063.893 114,5411,120 113,616,538 21,316,614 24,.963,644 24037.782 2A,G58,-V 24,.97406 2.1,419,340 27,368,122 26.3133,MA 2 1 3,615 27.448. , 12 2Z 77..964 27.753.674 27,50k1.:290 ,%410.1.43 1t5,01 . 4,792 127,577,0611 122%/73,517 :er.v.to 7..k3 ...••• 03.611,345 Vt. 4.1), . • B = l.l, tr2s 4% • • 350. $2l 6 3, 333