Latest from the Mississippi.
Federal demand upon the Commander at Biloxi for the surrender of Federal and Confederate property — the Yankees in possession of Biloxi, &c. New Orleans, Jan. 2.
--General Lovell received the following dispatch from Handsboro', dated on yesterday.
The enemy came near Biloxi on yesterday morning.
Two United States officers, with sixty men, landed in small boats and demanded of Capt. Farrell, the Commander at that place, any property belonging to the United States and all munitions of war belonging to the Confederate States. Captain Farrell was given only one hour to decide.
Farrell surrendered to the U. S. Commodore, who took off the small cannon.
It is said that General Butler and his command is at Ship Island.
The Yankees remained at Biloxi only a few hours, and then returned to Ship Island.
A special dispatch to the Picayune from Mississippi City, dated to-day, says that the Federals had left there, and the coast was all quiet.
To-day Biloxi is considered in possession of the Yankees as they are momentarily expected to occupy it.
[Second Dispatch.]
Handsboro', (below New Orleans) January 3.
--Twelve Federal vessels were seen near Ship Island yesterday.
There has been considerable drumming and drilling around within the past ten days. 