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Latest from the North.

General Grant reported to have retired to the Mississippi — rumor of Vallandigham being sentenced to two years hard labor — the Entente cordial between great Britain and the United States, &c.

[from our own correspondent.]

Fredericksburg, May 16, 1863.
I have received the New York Herald, of the 14th inst., and send you a summary of its contents.

A dispatch in the Herald, dated May 13th, says:

Gen. Grant had a severe battle with Gen. Bowen at Clinton, ten miles from Jackson, on the railroad, last Wednesday, lasting all day Gen. Bowen was beaten, and driven back to wards Jackson. The women and children are all leaving that place for Meridian, and the men are preparing to hold the place.

It is reported from rebel sources that a large force of rebels is coming from Charleston and Mobile to prevent the capture of Jackson and Vicksburg, and that Gen. Grant, apprised of the movement, has fallen back to the river to await reinforcements.

Washington, May 13.--A telegram was received here to-day from Gen. Grant, dated the 6th inst., when his force was on the Big Black river, which says nothing whatever of having had an engagement on the day when, according to a rebel telegram, it was alleged he was replaced.

A skirmish between a party of sixty mounted rebels and a detachment of Union troops occurred on Tuesday, between Franklin and Woodburn, Ky., on the railroad, in which the former were routed and driven back, our forces still pursuing them at last accounts on that night.

The rebels in front of Murfreesboro', Tenn., continue to exhibit symptoms of activity, which keep the army of Gen. Rosecrans on the qui vive. . The cavalry of the enemy is constantly changing its position. The rebel Generals Morgan and Wheeler are said to be at Liberty and Alexandria, with a force of 5,000 cavalry, and are supposed to be meditating an attack on Nashville.

With regard to the case of the Hon. C. L. Vallandigham, recently on trial by Court-Martial at Cincinnati, on a charge of using "treasonable" language at a public meeting at which two military officers, disguised as civilians. reported his speech and testified against him, a report was circulated and published in a Washington paper that the decision of the Court condemned him to two years imprisonment and hard labor at the Dry Tortugas, off the coast of Florida. Now, as the proceedings of a Court Martial are necessarily secret until promulgated by the commanding General who orders the trial, and as all the members of the Court are solemnly sworn not to reveal any portion of what transpires, and inasmuch as Gen. Burnside has neither approved or disapproved of the finding of the Court up to this time, it is difficult to imagine how the vote of the majority or minority of the Court, as stated, could be made known. --It is fair, therefore, to conclude that the story is premature, to say the least of it.

We have some interesting news from Gen. Foster's command at Newbern, N. C., to the 7th inst. The nine months soldiers are about to return home, but many of them have accepted a furlough of thirty days, and are willing to reenlist after that time, provided they are again permitted to serve with General J. Foster. The General highly compliments them on their bravery while under his command.

The Herald published a call for "a mass State Convention for peace and reunion," signed by two representatives of the Democratic party from each of the 32 senatorial districts of the State of New York, the meeting to be held in New York city on the 3d of June. The object of the Convention is "a vigorous prosecution of peace, " and therefore it is proposed "to take measures in favor of a speedy settlement of our unnatural sectional war, to restore, if possible, the unity, harmony, and prosperity of our beloved common country, and such other measures for the welfare of the Democratic party as may be deemed necessary.

A collection of about $4,000 was taken up in Brooklyn to aid the distress in Ireland.

The President's last proclamation in relation to the drafting of foreigners was issued in accordance with a recommendation made by Earl John Russell. The British Minister, informed the President that he did not mean to exercise official control over foreigners who had renounced their allegiance to her Britannic Majesty, but it would only be in conformity to the comity and law of nations to allow such persons a certain time to leave the country.

In the case of James Hambleton, late of Atlanta, Ga., arrested by the military authorities on suspicion of being a rebel spy, counsel for the Government failed to appear, and the prisoner was not produced by Capt. Armstrong. Prisoner's counsel sued out a writ of attachment against Capt Armstrong for contempt of Court in disregarding the writ of habeas corpus. It is rumored that Hambleton has been removed to Fort Lafayette.

The western cities and towns in the State have made great preparations for the reception of the two years regiments.

Gold was dull at 149½ to 150. Exchange 164 to 165. Cotton dull and unsettled. Great excitement and speculation in the stock market.

The Herald says: "Let Vallandigham be sent to the Island of Tortugas, and he is sure to be elected Governor of Ohio."

The 2d, 16th, and 14th regiments of New York volunteers, and the 129th Pennsylvania, are on their way home.

A dispatch from St. Louis, dated May 13th, says: ‘"Thirteen male and eleven female rebels were sent South this evening. Men with families are allowed to take $1,000, all others $200 each. Their property will be appropriated for sick and wounded soldiers."’

Gen. Burnside has sentenced four spies to be hung and one deserter to be shot on the 29th of May

General Halleck will not take the field in person in the next movement of the army of the Potomac.

The entente cordiale is perfect between Seward and the British and French Ministers.

Naval prisoners of war have been released by the rebels.

The U. S. Marshal of the District is vigorously enforcing the confiscation act, and has seized the fine house of Charles J, Wallach, of the rebel army.

Mosby is near Grove Creek, Loudoun county, with 300 cavalry.

At a Virginia Union Convention in Alexandria, Va., Pierpont was nominated for Governor, and a Mr. Minor, of Alexandria, for Lieutenant-Governor, B. M. Kitchen, of Berkeley county, is nominated for Congress in the 7th district.

The Herald has an editorial on "The general campaign — the splendid fighting qualities of our armies, and their cheering prospects." It says from Gen. Hooker's congratulatory (?) order to his army, we are assured that it retired from the south side of the Rappahannock for reasons "which could not be foreseen or prevented by human sagacity," and that, "profoundly loyal and conscious of its strength, the Army of the Potomac will give or decline battle whenever its interests or honor may demand. " From all our other sources of information this testimony of the splendid condition of this heroic army is confirmed. The general results of the late battle being greatly in its favor, it does not recognize a defeat; but, confident of its capabilities to crush the enemy in a general engagement, it is not only ready, but eager for another advance.

The Herald goes on to say the rebels will be compelled to maintain a considerable stationary force at Richmond to guard against a Yankee surprise. Yankee cavalry is to be increased and raids more numerous.

The Washington Chronicle, under the caption "Playing with Edged Tools," has the following editorial:

When the capitalists of England entered so largely upon the business of breaking our blockade, furnishing the rebels with supplies and building ships of war for them to ravage the seas withal, they hoped and expected that they should render good service in securing

the recognition of the Southern Confederacy and sweep American commerce from the ocean. But in their indecent hastier to serve the slave power and fill their pockets with ill-gotten wealth. they overlooked entirely the danger that would accrue to their own interest and the heavy burdens they would entail on their innocent and law abiding neighbors, who are content with honorable gains. They have succeeded in damaging our commerce most materially. Our ships are rotting at the wharves. Insurance can scarcely be obtained at any price. A great many of our merchants have lost their ships and cargoes at the hands of the ruthless pirates hatched in the confederacy and fledged in British shipyards. But the plain violation of neutrality of which the English, and they alone, have been guilty, has subjected their vessels to great suspicion, and the British flag no longer carries with it its accustomed immunity. Since all blockade runners carry their flag, all ships that sail under it are necessarily objects of suspicion, some of them when found under suspicious circumstances are overhauled and taken into port, when, perhaps, there is no just ground for a condemnation in a prise court. This is natural and unavoidable. In playing with edge tools they have cut their own fingers.

Their rage and chagrin at this very unpalatable result of their cunning tricks, is almost laughable. The deputation of indignant merchants who waited on Earl Russell in regard to Mr. Adams's "certificates of character," to Howell & Zirman, complained most bitterly that insurance rates had gone up at Lloyd's to a ruinous height, while in Rance they remain unchanged. The appearance at this moment in the English Shipping List of an advertisement, making public that a French ship is loading in London for the West Indies, is also easily seized upon to show how the conduct of Admiral Wilkes and the American Government had injured the British shipping interest, and had driven shippers to employ the French flag, "because that is not molested."

Of course the French flag has not been molested. What insults have we ever received from France of Frenchmen? What interference have France or Frenchmen offered in our affairs, except in a manner perfectly regular and well authorized? If the French flag is not viewed with suspicion by our cruisers, and if French ships can pass unchallenged where probably an English ship would be overhauled, it is simply and only because since the breaking out of our war the French ship-owners and the French Government have united in a strick and honorable observance of the centrality laws, while Englishmen have openly boasted, even in Parliament, of their evasions and their defiance of these regulations. On the contrary, the pirates have obtained their ships from England; they have armed them with English guns, stored them with English supplies, and manned them with English sailors from English ports. The difference between the two nations is wide and easy to be discerned. While the former enjoy the immunity to which they are entitled from this honorable observance of the courtesy due from one nation to another, the latter are suffering the pains and penalties which will as surely, sooner or later, follow upon every breach of fair dealing and legitimate traffic.

In reply to an application for a certificate similar to that furnished by Mr. Adams to Messrs. Howell & Zirman as to the good character of a shipment proposed to be sent, to Matamoras, Mr. Adams writes the following letter:

Legation of the United States.

London, April 22, 1863.
--I have to acknowledge the reception of your note dated yesterday. I regret to perceive that you labor under a misconception of the course taken by me heretofore. It must be obvious to you that I have no authority to exercise any discrimination in regard either to the vessels or the voyages of Her Majesty's subjects. When they are engaged in legal undertakings they have a right to rely upon the protection of her Government, and they will undoubtedly obtain it. When it is otherwise, of course they would not expect it from her, or ask it from a representative of the United States.

I am, sir, your obedient servant,

Charles Francis Adams.

Thus (says the Chronicle) Mr. Adams has distinctly and in set terms repudiated the interpretation put upon his act by the Times, and so that tempest in a tea-pot has blown over.

Gov. Buckingham, in his annual message to the Legislature of Connecticut, on the 5th inst., says "that the demands of the Government and the claims of the rebels are as irreconcilable and antagonistic as freedom and slavery, as democracy and despotism, as falsehood and slavery, as democracy and despotism, as falsehood and eternal truth, and consequently. the conflict must go on until the Government shall conquer or be conquered. No one must be deceived by the artful device of securing peace by a cessation of hostilities, because a peace thus obtained would cost the nation its birthright. We must not inquire whether the rebellion was caused by slavery or abolitionism, by ambition or interference with State rights. Our duties are with the events of the hour, and we must render the Administration a cordial and energetic support, as it is the only agency through which the will of the people can be legally and properly executed."

From Port Royal, on the 6th, the Yankees are advised that all their iron clads had left for North Edisto, and their troops were entrenching themselves on Folly, Seabrook's, and Coles's Islands.

An official report of Col. Kilpatrick's share in the Stoneman raid is published, dated from Yorktown, May 8th. The following is an extract:

Yorktown, Va., May 8th. Major-General H. W. Halleck, Commander-in-Chief U. S. A.:
General: I have the honor to report that, by direction from Maj-Gen. Stoneman, I left Louisa Court-House on the morning of the 3d inst., with one regiment, (the Harris Light Cavalry,) of my brigade; reached Hungary, on the Fredericksburg Railroad, at daylight on the morning of the 4th; destroyed the depot and telegraph wires and railroad for several miles; passed over to Brook Turnpike, drove in the rebel pickets; down the pike, across the brook, charged a battery, and forced it to retire within two miles of the city of Richmond; captured Lieut, Brown, Aid de-Camp to Gen. Winder, and eleven men within the fortifications; passed down to the left of the Meadow bridge, on the Chickahominy, where I ran a train of cars into the river; retired to Hanover Town, on the Peninsulas; crossed and destroyed the ferry-boat just in time to check the advance of a pursuing cavalry force; burned a train of thirty wagons loaded with bacon; captured thirteen prisoners, and encamped for the night five miles from the river. I resumed my march at 1 A. M, of the 5th, surprised a force of three hundred cavalry at Aylett's, captured two officers and thirty-three men, burned fifty-six wagons, the depot, containing upwards of 20,000 bush els of corn and wheat, quantities of clothing and commissary stores, and safely crossed the Mattaponi and destroyed the ferry again, just in time to escape the advance of the rebel cavalry pursuit. Late in the evening I destroyed a third wagon train and a depot, a few miles above and west of Tappahannock, and from that point made a forced march of twenty miles, being closely pursued by a superior force of cavalry, supposed to be a portion of Stuart's from the fact that we captured prisoners from the fact that we captured prisoners from the 8th, 1st, and 10th Virginia cavalry. At sundown discovered a force of cavalry drawn up in line of battle about King and Queen Court-House. Their strength was unknown, but I at once advanced to the attack, only to discover, however, that they were friends — a portion of the 12th Illinois cavalry who had become separated from the command of Lieut. Col. Davis, of the same regiment. At 10 A. M., on the 7th, I found safety and rest under our own brave flag within our lines at Gloucester Point.

Respectfully submitted.

J. Kilpatrick.
Col. Comd's 1st Brig., 3d Div. Cav. Corps.

Arrest of a Lady in Baltimore

Miss Fanny C. James, daughter of Mr. John James, whose wife was recently sent South upon the charge of disloyalty, was arrested at her father's residence, in Baltimore, last week, upon the charge of giving aid and comfort to the enemy. Her case was investigated by Gen. Schenck, who committed her to Baltimore jail, in order that she may be tried by the civil authorities under the treason act of Maryland. It seemed that she has been cor-

responding with the South, and the following is the copy of a letter:

Richmond, Va., March 15, Tuesday, Noon.
My Dear Fannie:
--Your letters have just been received, and the pleasure it gave us you cannot imagine. Harry was perfectly delighted with his uniform. The goods you spoke of in your last have been received, and were a perfect God-send. The quinine and liquors were very much needed. Those I presented to our Government, as you desired, and the other things were sold at cost. Will you please forward goods to the amount of the enclosed order immediately? We have great demands for several items in the list, as they are needed by our Government and knowing your promptnessin filling all such orders, we can rely on your dispatching the goods at the earliest possible moment. Perceived the carte de visite of --,whom you suspect as a spy and have given it to our authorities. There will be a strict eye on him.

They request me to tell you, Fanny, to keep quiet, and don't let them have anything on you, as you can do much more for us where you are; and if they should find you out, why — take the Yankee oath three times a day if they wish it, just before every meal. You have taken many a bitter dose of medicine, and it won't taste a bit worse than the rest.

The Betrayal of Reid Sanders.

The New York Tribune has a notice of the "eminent services" of Arnold Harris, who acted as a spy in Richmond, and betrayed Major Reid Sanders into the hands of the enemy when he sailed with his dispatches from Charleston. The Charleston Courier says that Harris, while in that city and before his departure with Sanders, was suspected of being a spy. The Tribune says:

‘ The department proposed to send him to Richmond to frustrate, if possible, the projects of George N. Sanders, who had just then secured contracts for a rebel navy to be built in England. He accepted the perilous mission, and soon made his way to the Confederate capital. Without any disguise of name or person he succeeded in acquiring the confidence of the rebel authorities, and established himself on intimate terms with several of the most important officials. His situation, however, was dangerous in the extreme and he was arrested and confined in Castle. Thunder for seventeen days. He was recognized by two Marylander as the former commander of the Island Belle. Upon his trial acknowledged the identification, claiming to have done the Confederacy more service while holding a command in the federal navy than he could have done by joining its cause at an earlier date. He audacity triumphed, and he not only obtained and acquittal, but continued to enjoy the confidence of the rebel authorities, or rather of all but Benjamin, who was suspicious of him throughout.

Soon after his discharge from Castle Thunder he become a participant of the enterprises of Sander, who recently returned from Europe is soon as Sanders had perfected his arrangements with Jeff. &Co. be was to reassure to Europe with money and documents necessary to the carrying out of his schemes.--His son (R. Sanders) and Harris were to accompany him. The aim of the latter was to secure Sanders's mail. He succeeded in having it arranged that George, with his friends, should proceed by way of Matamoras to Halifax, while Reid Sanders and he, with the documents and dispatches to be taken, were to run the blockade at Charleston, and get to Halifax via Nassau. In accordance with this plan Sander, Jr., and Harrison proceeded to Charleston and purchased a yacht, which they loaded with turpentine, and started gaily out in January last, to slip through the blockading fleet and make for Nassau. Great interest was taken in the enterprise, and before leaving the voyagers were entertained at a dinner with Beauregard and the leading celebrities of the city.

Meantime Harris had succeeded in communicating with one of the vessels of the out-side fleet and putting its commander upon the watch. The yacht, as she ran out of the harbor, was speedily detected, and subjected to a cannonade, which frightened Sanders out of his wits, and made him eager to surrender — The mail bag, heavily freighted with iron, was thrown overboard; but Harris had previously abstracted from it a portmanteau containing the important dispatches and documents, substituting in its stead his own, which happened, as a remarkable coincidence of course, to be an exact counterpart.

The capture of Reid Sanders will be remembered. Harris is at present in Buffalo on a visit to his friends. He ranks as a Lieutenant in the navy.

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