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We have received, through the courtesy of Captain Hatch, files of Northern papers to the evening of the 17th. We give from them some details of news:

The movement up the James river.

Additional particulars have been received of the action of Sunday. Part of the Second corps and part of the Tenth corps engaged the enemy in the afternoon near Deep Bottom.

The Tenth corps, under General Birney, captured part of a line of earthworks with four eight- inch brass guns and a number of prisoners. His loss was small. The enemy fell back to a strong position.

The second division of the Second corps was drawn up in line of battle and advanced about a mile beyond where General Hancock captured the four guns two weeks ago. Here the First brigade, Colonel Mace commanding, took the lead and charged across a corn-field over a hill and down into a ravine, where they came to a swamp, with a stream on the other side, and the ground covered with impenetrable brush on the margin. During all this time they were exposed to a heavy fire from the rebel artillery, which did a good deal of damage.

As it has proved impossible to cross the ravine, the men were halted, and lay concealed as well as possible until dark, when they were withdrawn. Colonel Mase had his horse shot under him, and mounting General Barlow's horse, the animal became unmanageable, and finally falling on the Colonel, badly bruised him.

The Colonel was wounded in the Wilderness battle, and had returned to the field only a day or so before. The division lost three hundred men in this engagement.

The First and Third divisions, which were in support, lost about two hundred and fifty in killed and wounded from the effects of the rebel artillery. The wounded were all brought off, and are nearly all being cared for at City Point.

Lieutenant-Colonel Warren, of the Thirty-sixth Missouri, lost his left arm while gallantly leading his regiment in the charge. Major N. H. Hamilton, of the Thirty-sixth Missouri, was severely wounded in the face, and Captain Lindley, of the same regiment, killed, Sergeant Bailey, of the Thirty-sixth Wisconsin, was killed, and about twelve of the men wounded. Sergeant Fuchs, of the Thirtieth Wisconsin, color-bearer, was badly wounded, (the third time for him in the present campaign).

Our troops still hold their position in front of the enemy's works, which are very strong — naturally so — owing to the formation of the country in the vicinity.

General Butler's canal.

A letter from the Army of the Potomac says:

‘ For some time past Major-General Butler has been counting over a brilliant scheme wherewith to annoy the enemy and advance the Union interest in this region materially. His plan contemplated nothing less than the construction of a canal at what has hitherto been known as Dutch Gap — hereafter to be known as Butler's Gap — in the direct face of the enemy, which, when done, should, among other results, by reason of its situation, compel the rebels to extend their line of defence a distance of four miles--that is to say, the distance saved to us by the digging of the canal, which is to be one hundred and forty yards in length, is seven miles of water course in the James river.

’ Some four days since the proper details of men and officers were made for this important and hazardous work, and these men were encouraged to its performance by extra inducements, and placed under the general command of Major Ludlow, of the departmental staff. The work proceeded handsomely for three days, during the last of which the enemy discovered our operations and made instant preparation to open fire, which the result will show to have been an advantageous one for them, though Ludlow nobly and successfully held his position, still holds it, and will continue to hold it until his appointed work is accomplished.

At five o'clock yesterday morning two rebel rams, believed to be the Virginia and the Richmond, though some think one of them was the Lady Davis, appeared at Dutch Gap, in the James river. The James at this point forms a promontory, which is very narrow at its apex. The shape of this promontory is in the form of a long tongue, and, verging to the northward and westward, makes another turn, which forms another point similar to the first, east by north. Hense the river bends yet again, and forms a third angle, running northwest. Under cover of this angle, completely and literally sheltered from our gunboats, lay the two rebel rams. Their position was such as, taken in connection with the Howlett House battery of the enemy, to subject our forces to a severe enfilading fire, which was borne throughout the day with manly fortitude by our men.

The successful construction of the canal, of which there can be no doubt, will, it is alleged, enable our gunboats to wholly overcome the formidable obstructions in the James river, and possibly ultimately be the means of their engaging Fort Darling and other rebel strongly- fortified places adjacent to Richmond, and perhaps, before the end comes, operate largely in the reduction of the rebel capital itself. These are glowing anticipations; but, nevertheless, they are capable of realization by patient and indulgent waiting for. Any one of these results, added to the necessity imposed upon the enemy of lengthening his line of defence a distance of four miles, requiring several thousands of men to man this prolongation of their lines, will certainly be regarded as adequate compensation for the time, labor and men bestowed upon the accomplishment of the undertaking.

The negroes, who are largely engaged upon the work of constructing the canal, behaved well under the continuous and galling fire of the day, never for an instant flinching, but standing to their work manfully and creditably. This fact was a source of favorable comment during the day, and I am glad to be able to record it.

Continued Depredations of the Tallahassee — a heavy List.

The schooner Sophia, from Turks island, has arrived at Yarmonth, Nova Scotia, with the crews of the following vessels, sunk by the "pirate" Tallahassee:

‘ Ship Littlefield, of Bangor, Maine, from Cardiff for New York, sunk on the 14th, in latitude 42 degrees, longitude 66 degrees; schooner Lamont Dupont, of Delaware, sunk 13th, in latitude 40 degrees, longitude 18 degrees; schooner Mercy A. Howe, of Chatham, sunk yesterday, in latitude 43 degrees, longitude 66 degrees.

’ After the crews of the above vessels were put on board the Sophia, the Tallahassee sunk four other schooners, one of which was the J. H. Aowen, of Gloucester. The smoke of the steamer was seen this morning in the direction of Seal island.

Thomaston, Maine, August 17.--The rebel steamer Tallahassee on Thursday destroyed twenty-five vessels off Mattinicus Rock. She was manned mostly by Nova Scotia men.

After sending the crews and passengers of the vessels destroyed into Friendship by a small craft, she steered in an easterly direction.

Boston, August 17.--A dispatch from the American Consular Agent at Yarmouth, Nova Scotia, to this city, states that six more vessels were destroyed by the pirate Tallahassee on Monday, six miles from Cape Sable. Thirty men of the crews were landed at Yarmouth in a destitute condition. The pirate was in sight on Monday morning.

A raid into Illinois--five steamers captured and Bonded.

Cairo, August 15.
--About five hundred rebel cavalry, under Colonel Johnson, crossed the Ohio river into Illinois, at Sabine Bar, on Saturday. The steamers Kate Robinson, Jenny Perkins, Nightingale, Famine, Brandon and Clara Hall were all aground at that place, and were captured, with a large amount of stock on board. The boats were compelled to pay several thousand dollars each to save them from destruction.

The operations in Sherman's rear.

A telegram from Louisville, dated the 16th, gives the following about General Wheeler's operations in the rear of Sherman's army:

Wheeler, with seventeen hundred men, demanded the surrender of Dalton, Georgia, on the evening of the 14th, of Colonel S. C. Bold, of the Second Missouri, commanding that post with eight hundred men. A slight skirmish was going on when the train left. General Stedman was telegraphically advised thereof, and started with a large force from Chattanooga.

’ The latest heard from Dalton was just at nightfall on the 14th, when cannonading was prevailing. Rumor says that trains were leaving Resaca. This raid has been anticipated by General Sherman, and he was prepared to meet it at all important points.

On Saturday, three hundred guerrillas attacked Selma, Livingston county, Kentucky, garrisoned by three hundred of the Eighth Kentucky, and after a sharp fight they were repulsed with the loss of eight killed, fifteen badly wounded, and several captured.


Assistant Surgeon S. J. Grimes, Thirty-second Ohio, has been dismissed the service for straggling, being captured, and giving important information to the enemy. Assistant Surgeon R. W. Willoughby, United States colored troops, has been dismissed the service for physical disability, caused by the use of whiskey and opium.

Ex-Mayor Park, of Memphis, was arrested and lodged in the Receiving Prison in that city on the 11th instant for using indiscreet language in regard to the military authorities.

At the Democratic District Convention in Bangor Mc., James C. Madigan, of Houlton, was nominated for Congress from that district. Resolutions announcing the war as unconstitutional, and favoring an armistice and immediate negotiations for peace, were adopted.

We learn, by the way of New Orleans, that all of the Texas coast, Brownsville included, has been evacuated by the Union troops, with the exception of Brazos island.

William H. Rodgers, John R. H. Embert, Braston Lyon and Samuel B. Hearn have been sentenced to be hung in Baltimore as Confederate spies.

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