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The situation.

--The Yankees have made no more demonstrations on the Reliance and Satellite since Wednesday. They lost two men, it is stated, by our cannonade. A report was received by the Fredericksburg train yesterday evening that a regiment of Federals was making its way across the country, on this side of the river, to attack the Confederates at Port Royal. The report is not probable; but, if it were true, that "regiment" has doubtless been gobbled up ere this.

From Knoxville the latest reliable intelligence is that the Yankees have not occupied the city in large force, though an advance party had visited it. The Lynchburg Republican says that they have occupied it with from 3,000 to 7,000 men, chiefly cavalry. This is hardly likely, as we have a telegraph station within thirty miles of there, and nothing is yet known at the War Department of such occupation.

There is nothing from Gen. Lee's army worth mentioning.

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Port Royal (South Carolina, United States) (1)
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