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Affairs in Kentucky--the Defray of Gen Pegram — success of Col. Cluke at Mount Steelins.

The information which reaches us from the South west is highly encouraging as to our prospects in Kentucky. The Yankee are sent of the defeat of Gen. Program, as all their accounts are, was highly exaggerated, if indeed it had any foundation at all Gen. P. first engaged the enemy at Danville, defeating him without any material fes, and succeeded in securing in that section about nine hundred head of beef cattle. With there be commenced falling back out of the State, knowing that the enemy were in large force in the neighborhood and if energetic might intercept his movements, and overwhelm him with numbers. On reaching the Cumberland river he found that stream so much swollen as to be well nigh impassable for his cattle, as well as the gallant men under his command. Whilst waiting to cross he was attacked by the enemy in largely superior force, with whom he contended for a day and a half, and finally succeeded in crossing his little army, and five hundred and fifty of the cattle he had captured at Danville.--His lose in men in this engagement — killed, wounded and missing — did not exceed one hundred and fifty. The loss of the enemy in killed alone was greater than this number. He accomplished the purpose for which he was sent into he State by Gen. Johnston, and with much less loss than might have been expected under the circumstances.

On the 30th of March, Col. Cluke, of Gen. John Morgan's command, attacked the enemy at Mount Sterling. Their pickets were soon driven in, and their whole force took refuge in the houses of the town, from which they opened fire on our men--Col. Cluke, in order to dislodge them — being with out artillery — found it necessary to fire one or two buildings, which communicated to other, until a whole square was consumed. The enemy to the number of three hundred, finding further resistance useless, surrendered unconditionally. Col. C. then retired with his prisoners, intending to join the command of Gen. Pegram at Camp Dick Robison. At McCorsaick's, twenty-one miles south of Mount Starling, he was reinforced by Gen. Marshall, when no changed his course, and went back to the latter place, of which he held possession at the last accounts.

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Danville (Virginia, United States) (2)
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