From the army of Tennessee.
--Our army is in line of battle at Tunnel Hill
There was a sharp engagement yesterday between Clayton
's brigade and the enemy, lasting half the day.
's cavalry, backed by a regiment of infantry, attacked our line, and were repulsed three times.
A hundred Yankee saddles were emptied.
In the first assault our ten-inch rifled Parrott
did great execution.
One cavalry and two infantry brigades of Yankees are at Lafayette
--There has been heavy artillery skirmishing along the lines all day, with occasional volleys of musketry.
Both sides are evidently manœuvering for position.
--The enemy have disappeared from our front, retreating towards Chattanooga
is in pursuit.
A dispatch from him, three miles this side of Ringgold
, announces the capture of several prisoners.
The Yankee force is commanded by Gen. Palmer