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Latest Northern news.
Progress of the war.

We are in possession of Northern papers up to the 28th inst. From them we gather the following:

The East of Virginia Traitors — slave emancipation.

Wheeling, Jan. 27.
--In the State Constitutional Convention to-day Mr. Buttelle, of Ohio county, offered the following proposition relative to slavery in the new State of Virginia:

‘ "No slaves shall be brought into this State for permanent residence after the adoption of the constitution. All children born of slave parents in this State on and after the 4th of July, 1865, shall be free. The Legislature may provide general laws for their apprenticeship during minority and subsequent colonization,"

It was referred to the Committee on General Provisions, which committee will probably report some time this week. It is not expected, however, that the committee will report any provision of the above character, the majority of the members being averse to the consideration of the slavery question; but whenever they do report, this proposition will be brought forward, and from present indications be fiercely contested.

Jackson's movements — from Missouri--Swearing allegiance.

We take the following summary from the Baltimore Sun, of the 28th:

‘ We have no positive war news this morning. Gen. Thomas's forces, which went in pursuit of the Confederates after the battle of Somerset, have not yet been heard from; but it is supposed that they will occupy Monticello, a town in Wayne county, about 100 miles South of Frankfort.

A dispatch from Frederick states that it was reported there yesterday that a portion of Gen. Jackson's command made another demonstration on Dam No. 5 on Sunday, but advices from Hancock of that date make no mention of such movement. The main body of Gen. Jackson's force is reported to be at Unger's, 12 miles North of Martinsburg.--Gen. Kelly has left Cumberland for Wheeling, the condition of his wound precluding all hope of recovery.

’ A dispatch from St. Louis states that Gen. Halleck has issued an order requiring all the newly-elected officers of the Chamber of Commerce and the Mercantile Library Association of that city, to take the oath of allegiance, or else vacats their positions. All persons hereafter displaying the Confederate flag are to be arrested and subjected to punishment by the military authorities. It is reported that the Confederate General, Price, is at Springfield with only ten thousand men.

No news from the Burnside expedition.--There was no flag of truce on Sunday, and consequently the steamer yesterday morning brought no Southern intelligence. The reported loss of the Louistana and other vessels of the fleet is doubted at Fortress Monroe.

Federal Financial Difficulties.

The following is from the money article of the Philadelphia Ledger, of the 27th:

‘ The truth is, our financial difficulties are daily more and more complicated. Congress is by no means a unit on the scheme reported by the Committee of Ways and Means, and there is even more diversity of opinion as to the tax bills. Thinsing men are beginning to stand aghast at the monstrous proportions of the debt that is accumulating, and the financiers are at their wits' ends to devise ways and means to meet the interest, some forty or fifty millions of which will soon be due, saying nothing about the legitimate demands that are rolling up in huge volume against the Government. With an almost total cessation of emigration, with agriculture and every other branch of industry in the country diminishing, commerce languishing, trade broken up on our frontiers, the loss of the Southern markets, no chance of extending our industry and commerce with Mexico or any other part of the world in fact, it may well tax the financial ability of the country to manage a debt which will soon exceed $1,000,000,000.

From Gen. Banks's command — the canal rendered useless.

Hancock, Jan. 26.
--The existing freshet in the Potomac has produced disastrous results to the canal. At Cumberland there is a large break; another at Little Orleans, above dam No. 6, and another between dam No. 6 and Hancock, and two between Hancock and the Four Locks. At dam No. 5, the crib on the Virginia side, which was undermined and weakened by the Confederates, some weeks ago, has yielded to the pressure of the high water, and the falling of the water with drain the Williamsport level.

Above, but near dam No. 4, the guard bank has been carried away. Thus for the present the canal has been rendered useless, both to the Government and the public. The estimated time for repairs is about twenty-five days, and the cost $12,000 to $15,000.

General Kelly left Cumberland last Thursday for Wheeling. The state of his wound almost precludes the hope of recovery. On the right side, where the ball entered, the wound is suppurating, and his ribs are visible. On his back, where the incisions were made to extract the ball, are large suppurating seres, surrounded with inflamed pustules. It is supposed this state of his wound arises from an unhealthy state of his blood, or some latent poison in his system.

The sick of General Lander's command are all at Cumberland, numbering 677. A new additional hospital building is now being fitted up there.

Jackson, with his full force, is reported to be at Ungers, twelve miles north of Martinsburg.

Washington news — Lake Defences — Cabinet Meeting — Lane's Instructions.

Washington, Jan. 27.
--The Committee on Lake Defences, of which Representative Arnold is chairman, have been delayed in their action by sickness of Gen. Mc Jiellan; but since his recovery, they have been placed in possession of his views and opinions.

The President and Cabinet have been a good deal in session since Saturday, upon the subject, it is believed, of the charges against Gen. Fremont, which have taken distinct form and shape under the auspices of Government officials, who have spent much time in Missouri in making appropriate investigation. Under these circumstances, it is hardly to be supposed that Gen. Fremont will (as reported) publish any written defence of his conduct in advance of due trial before the proper military tribunal.

Instructions to General Lane have doubtless been carefully elaborated, and are based substantially, it is believed, upon ideas thrown out in a high administration quarter to the following effect, i. e., ‘"To let slavery be disposed of by military necessities and the course of events. If slaves come within our lines from the plantations beyond the Federal lines, use them. If they can work on fortifications, &c., use their services, cloths, feed, and pay them. If necessary, arm them. If slaves of rebels, free them."’

The resignation of Gen. Siegel not having been accepted, his military abilities being highly appreciated, he will not renew it.

A Southern Bishop.

It was stated recently that Bishop Alkinson, of North Carolina, was the only Episcopal bishop who had given his sanction to the usual circular notice sent to all the States, on the ordination of Bishop Stevens. The Philadelphia Inquier says:

‘ Since then, Bishop Hervey Otey, of Tenesese, has also acknowledged his recognition of the Union and the undivided condition of the United States Episcopal Church, by forwarding a note of cordial acquiescence, without political or ecclesiastical comment. Bishop Otey is a native of Virginia, and was born on the 27th of January, 1800. Bishop Elliot, of Georgia, who ordained Dr. Stevens to the ministry, has, it is said, not yet spoken. The Rev. George Clark, a brother of the bishop, and of the Rev. Samuel A. Clark, formerly of this city, has resigned the charge of his church in Savannah, Georgia, and returned to his home North.

New Constitution for Maryland.

In the Maryland Senate, on the 27th, the bill providing for taking the sense of the people as to the expediency of calling a Convention to frame a new State Constitution, was under consideration at the hour of adjournment.

From Southwestern Missouri.

Rolla, Mo., Jan, 27.
--General Rains, with about 400 rebels, stald all of Tuesday night, the 14th, at Mount Vernon, on their way to Granby, where (his soldiers said) they were going to work in the lead mines. Threats were made to arrest all the men connected with the Home Guard, and put them to work in the mines; and in consequence, a large number of Union citizens were leaving the county.

Philadelphia Navy-yard.

The Navy-Yard now press to a busy scene, the employees during the last week having all returned to work. The force at the yard, which was something like ,700 men, has been reduced to 1,500, owing to the discharges. The present force now at work are likely to be employed for a considerable period.

New York Banks.

New York, Jan. 27.
--The weekly statement of the city banks show a decrease of $3,818,769 in loans; an increase of $577,869 in specie a decrease of $541,011 in circulation, and a decrease of $,452,876 in deposits.

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