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The War News.

Heavy firing was heard yesterday afternoon in a southeasterly direction from the city, and from the unusual distinctness of the reports, many conjectures were indulged in concerning it. Some expressed the belief that it was at Drewry's Bluff, and others at Chaffin's; but it turned out that all were wrong. We have ascertained that the cannonade proceeded from our gunboats and land batteries shelling Dutch Gap, where the Yankees are cutting a canal for the purpose of changing the course of the river. We have no intelligence of the result, though it may be safely asserted that the work was suspended for a period. The firing ceased about 6 o'clock.

A deserter states that the work on the canal progresses very slowly, and gives as a reason that the Confederate shells annoy the laborers to such an extent that it is with difficulty they can be kept at work. If this deserter's story is true, this canal has already proved the "last ditch" to many of them; for he says that on a recent occasion eighteen were killed by one shell. Whenever a shell explodes in their midst they scatter in every direction, and hours elapse before they can be got together again. Beast Butler will have to contrive some plan to get rid of the annoyance if he wishes to finish his canal this season.


From Petersburg.

Yesterday morning the enemy commenced shelling Petersburg, throwing heavy missiles into the town; and gradually increasing in violence until between nine and eleven o'clock, the cannonade is represented to have been the severest since the opening of the campaign. Shells flew and exploded in every direction, causing some damage to property, but, strange to say, inflicting no personal injury so far as our informant could ascertain. Our batteries replied with spirit, and, it is hoped, with some effect upon the enemy. Under this heavy fire the people of Petersburg maintained their usual composure. In fact, they have become so accustomed to this sort of thing that they have come to regard it almost with indifference.

With the exception of the cannonade, nothing of interest occurred yesterday, and at the time the train left all was quiet on the lines.

Persons from Petersburg assert with much confidence that there is not one word of truth in the rumor of the proposed evacuation of that place. We thought so from the first, and only mention it now to relieve the minds of those croakers who were so dismally affected by the report.


From the Valley.

The latest advices from the Valley of Virginia represent that General Early, on Saturday last, the 10th instant, advanced from his position at Bunker Hill towards Martinsburg. This place is in Berkeley county, only seven miles south of the nearest point on the Potomac river. The army under Sheridan, confronting General Early, is probably nearly as large as that before Petersburg. A New York paper states that Grant detached thirty-eight or forty thousand men from the Army of the Potomac and sent them to the Valley, to which must be added the troops under Hunter, Crook, Kelly and Averill. This immense force, so far from being able to drive Early out of the Valley, has had enough to do in guarding the Potomac, in order to prevent our army from crossing that stream. Meanwhile, our troops have captured over two thousand prisoners and inflicted a succession of punishments upon the Yankees which have kept them in a state of whole some dread. Mosby, ever on the alert, has burnt trains of wagons, captured horses and mules, and ambushed and killed many of the enemy. Early has no fear of Sheridan, and the object of his late advance may have been to offer battle, which, judging from past incidents of the campaign, will hardly be accepted. On the contrary, we expect to hear of the enemy's retreat, as usual, to Harper's Ferry, and perhaps across the Potomac.

The Yankees continue their outrages upon the people of the Valley, and will doubtless keep them up so long as they are permitted to remain. They not only burn private dwellings, but mills and storehouses, and steal or destroy everything that can sustain life. They burnt three mills last Friday night. Early has a long account to settle with them, and we trust that retaliation may be duly inflicted north of the Potomac.


The situation in Georgia.

The ten days armistice proposed by Sherman for the purpose of depopulating Atlanta is now in operation, and until that expires there will be no renewal of hostilities in Georgia. The opinion is very general that this armistice was only a trick of Sherman's for the purpose of covering his own designs, but it is hoped that Hood will, in the meantime, improve the opportunity by making due preparations to circumvent them. By vigorous action, all that we have lost in Georgia may be regained. In refusing to exchange prisoners for men whose terms of service have expired, Sherman is believed to be acting under the instructions of his Government, and his course, therefore, surprises no one.


From the Southwest.

Official information was received yesterday that our scouts along the Mississippi river report Yankee troops still going up the river.

Scouts from below Mobile report that part of the troops recently operating against. Fort Morgan have been sent to New Orleans.

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