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We are to the courtesy of Lieutenant W, papers of the 23d, and Baltimore papers of the evening of that day. The following is the ‘ "Situation"’ article published in the Baltimore American, of Wednesday evening:

An expedition from Gen. Slocum's division of the Army of the Potomac went into Loudoun county yesterday for the purpose of intercepting a rebel cavalry force, under Capt, Dug, which has been foraging there. The expedition was entirely successful. Thirty-two prisoners, Including Capt'n Dug, were captured, and ten killed. Our loss was only one killed and four wounded. Mrs. Gen. McClellan and Mrs. Gen. Marcy left Harper's Ferry yesterday for Washington.

A party of our cavalry went from Centreville to the vicinity of Catlett's Station on Saturday, with the intention of capturing a rebel train on the Orange and Alexandria Railroad; but the enemy, having been apprised of our approach, took means to prevent the success of the expedition. The whole country between Centreville and the Rappahannock is reported to be swarming with rebel cavalry.

A regiment of infantry, with a battery, has been sent to Island No.21, on the Mississippi, to punish the rebels for firing into two Government transports last Friday night. Gen. Sherman instructed them to destroy everything in the vicinity. He also sent ten Secesh families from Memphis, in retaliation for this outrage of the guerrillas.

Gen. Schofield has established his headquarters at Elkhorn Farm, Ark. He telegraphs that the enemy are making for the Boston Mountains.

The guerrilla Morgan is still continuing his depredations in Kentucky, but report says he is actively pursued by our cavalry under Gen. Dumont.

The result of the election in Pennsylvania, so far as the State ticket is concerned is still in doubt.

The schooner Admiral Blacke, reported to have been captured by the rebel steamer Alabama, has arrived safely at Boston.

The President has issued an order directing that all persons, who have been actually drafted, claiming exemption from military service on account of alienage, will make their applications directly to the Department of State, or through their respective Ministers or Consuls.

The total number of drafted men in Camp Cleveland, Ohio, on October 17th was 1,667. The Commissioners reported 2,112 as drafted. Of these, one hundred and two were exempted by surgeons.--There hundred and eighty of the entire number furnished substitutes.

From China we learn that Col Ward (the American Mandarie) had captured three more cities from the Rebels.

A Portuguese brig the Acesco, has been chartered at Fayal to proceed to Flores, to take the prisoners released by the Rebel steamer Alabama to Boston.

Eight thousand signatures have been appended to an appeal from the women of the loyal States, praying for the removal of all negligent, incompetent, drunken, or knavish men, who in the first hurry of selection obtained for themselves posts of responsibility; and that the President will retain in the army only capable, honest, and trustworthy soldiers.


Why M'Clellan's Army does not advance.

The reason of McClellan's inactivity is generally discussed in the Northern papers. The New York Commercial says:

General George B. McClellan will advance, both himself and his army being in good and excellent spirits, just so soon as his man are furnished with the proper clothing for so long a march. He will not attempt it while his men are in need of proper clothing.

To move forward while they are without drawers, socks, overcoats, and shoes, would necessitate the keeping up of an ambulance train to the rear greater than the advancing train of the army. --Such a train would have to be defended, and the sick protected from capture. Medical depots would have to be established every few miles, and guards must be left to protect them. And all this because the noble soldiers composing the Army of the Potomac lack the clothing pledged to them by the Government.

’ A dispatch in the Philadelphia North American, dated Washington, the 21st, alter announcing that there is no probability of a forward movement of the army at an early moment, says:

‘ To be plain, the chances are that "masterly in activity" will be the order of the day for weeks, if not months to come; and if a battle takes place sooner it will be one brought on by the robles themselves, and not because of any forward movements of our own.

I should have stated that rumors are current to the effect that the blame for the non-advance of the army is laid to McClellan — and these rumors even go so far as to assert that, if he does not put his army in motion, a commander will be put at the head of the army who will move, let the consequences be what they may. I must confess I have not much faith in these rumors, however, and give them for what they are worth.

There are those who assert that the true reason why the army does not advance is because of a want of clothing and shoes, and that as soon as these are secured offensive operations will be commenced. This, I will add, is the very generally received opinion and belief, and, if the statements are correct, the question narrows down to the time that it will take to reclothe the army, and render it in suitable condition for marching and fighting. Will this be a week, or fortnight, or three months?

In reading the above statements it should be remembered that McClellan's army aid make a "forward movement," on Thursday of last week, which was promptly checked by Gen. Lee.


The next battle to be in Pennsylvania.

A correspondent of the N. Y. Tribune, writing from Hagerstown, Md., on the 19th, says:

‘ All last night the rumbling of artillery, and the solemn tramp of infantry, was heard passing through the main street, and hundreds wondered and speculated what movement was on foot. The morning dawned, but the mystery remained unsolved. Two brigades of Gen. Couch's Division, which, since the great battle, have been laying four miles from Williamsport, on the road to Sharpsburg, suddenly, last Saturday evening, left their encampments, and, with ten days rations, marched up the Potomac to Clear Spring and joined the brigade of Gen. Howe, which had been occupying that post since the raid of Gen. Stuart.

This movement of Couch's division created but little comment, for it had been anticipated several days; but the movement of two brigades of Smith's division from the vicinity of Hagerstown, where they had just arrived to wash and dress themselves in preparation for the winter, instantly gave us all to understand that either the right wing of the Army of the Potomac was about swinging over to Virginia or the left of Gen. Lee's army was on the point of paying us a visit. At this hour, 10 P. M., everybody looks as if another great battle would be fought before long on this side of the Potomac, out not on the sell of "My Maryland," but on that of our Pennsylvania.


From Kentucky.

The latest intelligence from Kentucky is contained in a dispatch dated Louisville, Oct. 21, midnight. It says:

Gen. Jeff. C. Davis, who shot Gen Nelson, has been released from arrest, and ordered to report for duty at Cincinnati.

Gen. Dumont passed through here this evening on route for Indianapolis.

One hundred and fifty rebel prisoners from Frankfort and Lexington, and 300 paroled Union prisoners from Coz's Creek, arrived here to day. They left at 3 o'clock on Monday morning, and up to 2 o'clock this afternoon had nothing to eat. Morgan having destroyed all the captured provisions that he could not carry away.

Morgan's men changed clothes with many of our prisoners, and his band are now said to be clothed in Federal uniforms.

Doubtful rumors say that the bridges over Rolling Fork and Bacon Creek have been destroyed by the rebels.

Eight Commissioners, sent by the Chicago Sanitary, Commission, who were captured near Cox's Creek, have arrived here. Morgan's men took all their supplies.

The rebels at Cox's Creek captured Captain T. B. Lewis, postmaster of Wood's division, with all his mails, containing several thousand letters, the money from which the rebels took, and then destroyed all the letters.


The New York Markets.

Gold was quoted in New York on the evening of the 22d inst, at 131, having risen from 131 on the day before. The Herald of the 22d, says:

‘ Exchange was quoted at 141 in the morning; but in the afternoon, when gold begin to move upward, most of the bankers refused to name a rate. The committee of the Board on the gold question reported this morning that it was the wish of the Government that the speculation in gold should not be fostered by the Stock Exchange, and that, in the opinion of Government officials, the traffic in gold at the Board was calculated to stimulate speculation therein. It is understood that the Board will act upon the subject to-morrow, and will exclude gold from the regular list. The immediate effect of this will probably be to stimulate the price of gold. But eventually it cannot but diminish speculation in the precious metal.


Miscellaneous

It is reported in St. Louis that a challenge has passed between Major McKinstry, who is now on trial before a court-martial in that city, and Hon. Frank P. Blair, Jr., member of Congress.

Two men were tried last week in Cecil county, Md., on the charge of treason, for displaying secession flags on the public highways. Verdict — Not guilty.

United States Senator James A Pearce, of Maryland, is now lying so low at his residence in, Charles town that no hopes are entertained of his recovery.

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